J.G. SALO February 2005

REPORT OF EXPLORATION

STRIPPING ON THE

MeARA LAKE PROPERTY

DUFFERIN TOWNSHIP

NORTHEASTERN ONTARIO

FOR

ROY ANNETT

I PROVINCIAL RECORDING I OFFICE - SUDBURY

i CEfVE I

1. Location and Access Property Description

2. Coloured Geology Map showing property 3. Area of Stripping scale 2cm=lkm 4. Claim map 5. Provincial Series map 6. Exploration History 7. Regional Geology

Geology of MeAra Lake Area 8. Current work program

Recommendations 9. Equivalence 10. Invoice 11. Work Logs 12. Map of Trench Locations 13. Map of Trenches

Location and Access

The property is located in northeastern Ontario approximately one hundred kilometers north of Sudbury and approximately 35 kilometers southeast of the village of Shiningtree. The property is situated in Dufferin Township and can be reached via Highway 560 approximately 5kilometers from Shiningtree to the Sandy Lake access road. Following the Sandy Lake road for 25 kilometers to the road leading to the Extender Minerals Barite Mine on Tracey Lake. At this point an access road put into place by Wallbridge Mining arrives on the property. This access road goes right to McAra Lake after approximately a 5 kilometer traveL

Property

The McAra Lake property consists of claims.

STAKER NUMBER UNITS DUE DATES Annett 3009989 16 ~O32005 Annett ~009990 16 032005 Annett 3009991 8 b 21 2005 Annett 1223599 i 16 Sept 15 2006

. Annett 1223344 4 Oct 222006 Annett 3000744 16 Oct 282006 Annett 1212544 4 Sept 15 2007 Annett 3000745 8 Oct 282007 Annett 3009751 8 Nov 22 2007 Salo 3009750 16 Nov 222008

® Ontario

LEGEND~

PHANEROZOIC MESOZOIC

CRETACEOUS r==J Sedimentary rocks

PALEOZOIC DEVONIAN

Sedimentary rocks

SILURIAN

[:=::J Sedimentary rocks

ORDOVICIAN

Sedimentary rocks

CAMBRIAN r ] Sedimentary rocks

PRECAMBRIAN GRENVILLE PROVINCE

PROTEROZOIC NEO- TO MESO PROTEROZOIC

90

C=:J Migmatitic rocks and gneisses .. Malic to ultramafic plutoniC rocks

FelsIc plutOniC rocks. denved gneisses and migmatites

Metavolcanic and metasedimentary rocks

GEOLOGY AND PRINCIPAL MINERALS

OF ONTARIO

SUPERIOR AND SOUTHERN PROVINCES NEO-TO MESOPROTEROZOIC

.. Felsic intrusive rocks

r==J Mafic intrusive rocks

C:=J Volcanic and sedimentary rocks

PALEOPROTEROZOIC

.. Malic intrUSive rocks

Metasedimentary and metavolcanic rocks

SUPERIOR PROVINCE ARCHEAN

NEO- TO MESOARCHEAN

.. MaSSive to lollated granodiorite to granite

CJ .. Foliated to gneissIc tonalite to granodiorite

Metasedimentary rocks and derived gneisses

Metavolcanic and metasedimentary rocks

HUDSON

BAY

55

JA MES

BAY

50

MESOARCHEAN Metavolcanic and metasedimentary rocks

a PhanerozoIc units a re lithostratigraphic . whereas Precambnan Uni ts are lithologiC .

50 o

Malor Mineral Deposits Past and Present

• Gold

• Silver A Iron

., Copper -Nickel

• Zinc-Copper

o Platinum -Palladium

+ Uranium

* Industrial Minerals

Scale 1 8 000 000

50 100 150 200 Kilometres

50 100 150 M iles

USA

!t- 1995 Queen s Pnnter tor Ontario

Pm1ted In Ontano. Canada

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Exploration History

Exploration in the area was very little known other than a road existed from Sudbury to Gogama around the year 1911. Since that time there was considerable silver prospecting in the area.

In 1970 Metron Exploration Limited reported a copper-zinc sulphide showing in the volcanics between Kite Lake and Tracey Lake in North Williams Township.

In 1971 geologist Jack Willars also reported mineralization in logging an EXT drill holes program.

Work was performed in 1996 and 1997 by Roy Annett under the cover of an OP AP program. A sporadic mapping program was conducted for 800 meters. He reported extensive mineralization as fine grained disseminations of pyrite and chalcopyrite in dacitic outcrops in old pits.

The 1996 program by Annett involved blasting and sampling. His return values include up to 1.48% zinc and 3.5 gmlt gold.

A lake sediment and water geochemical survey was performed by the OGS as well as a new township scale geological mapping programme in 1998.

File found in the Kirkland Lake Mining Recorders office also include CO 2373- Minescape 1998 Airborne Magnetometer CO 2374- DDH WM-1 336 feet drill hole by Minescape CO 2375- DDH-WM-9 102.44m drill hole by Minescape CO 2499- Same as CO 2373 CO 2500- Tindale report on Annett OP AP Oct 1997 CO 2501- Wallridge Mining Limited extensive drill programme

The property was also worked on by Mustang Minerals in 2003-2004. An extensive EM, IP Mag and drill program was performed.

Regional Geology

The Shiningtree area can trace a set of regional scale fault structures trending south to southeast from Timmins in the north to Lake Wanapitei and the Sudbury Structure. The Annett property straddles on of these structures, the Sturgeon River Fault. This fault presents a window of rocks compromised of mafic and felsic volcanic rocks which are hosts to base and precious metal mineralization.. In addition Wall bridge Mining discovered Cobalt type polymetallic veins.

Shiningtree is one ofthe original gold areas in Ontario since 1911. The Fort Knox copper-nickel discovery in Fawcett Township created a resurgence of exploration in the area.

Geology of the MeAra Lake Area

The property north of McAra Lake has distinct north trending ridges that are high and rolling, made up of rock mantled with sand. The intervening valleys are also sand filled. The swamps of the area form elongated depression in topography for approximately one kilometer. The area of the property is underlain by Archean mafic metavolcanics and granitic rocks. To the west and south of the lake it is primarily underlain by basaltic flows with signs of minor sediments, argillite and chert. Previous drill holes by Wall bridge Mining show that there are several types of economic geology in an occurrence of shear zones. These zones of fractures control the mineralization. The mineralization occurs as reddish colored spalerite in tiny fractures, galena calcite and arsenic bearing minerals. Silver, bismuth and nickel rich cobaltite veins and gold mineralization also appear.

CURRENT \VORK PROGRAM

A stripping program using a bulldozer and excavator was performed in the area of Wallbridge Mining's drill hole of discovery.

Several smaller trenches and a large trench were put into place to test the presence of cobalt.

The work was performed by Roy Annett, Larry Salo, Joe-Anne Salo, Trevor Dowe and Shay Simon. It was performed between Dec 20-23, 2004 and Jan 5-16 2005. Mapping of the program was performed by Larry Salo and Joe-Anne Salo.

Assays from the samples taken are pending as they are being performed by Liberty Explorations.

RECOMMENDATIONS

It is recommended by this author that further stripping be performed and a major sampling program be done as soon as the snow is gone. As the lay of the land will afford the snow to be gone in the spring before the road thaws this work should be done before the end of March.

A drill program is recommended in the area of the exposed cobalt to trace the strike length and dip as it seems to vary with the faulting and folding.

EQUIVALENCE TO PROFESSIONAL

I, JOE-ANNE G SALO, of the village of Conn aught, Ontario do hereby certify and state that:

I attained Equivalence to Professional as granted by the Ministry of Northern Development and Mines, for the purpose of \\-Titing reports.

I have no interest directly or indirectly in the property known as McAra Lake Property as described in this report, nor do I hold any interest in Annett and Associates; and

This report is based on knowledge obtained by being present on the property while the work was being performed.

Dated this 14th day of February 2005

Joe-Anne G S 0

Larry J Salo PO Box 7014PMS

South Porcupine, Ontario PON lKO

Roy Annett and Associates General Delivery Shiningtree, Ontario POM2XO

INVOICE- re MCARA LAKE PROPERTY

Mob/demob ofTD-20 International Bulldozer

21 hours TD-20 work clearing access @ $90.00

Mob/demob of JSW Excavator

120 hours Excavator work @ $90.00

Plugger rental for 4 days @ $50.00

Expenses

Wages

- mileage from Timmins to Shiningtree -blasting supplies - skidoo -accommodations

3 men x 16 days 1 man x 14 days

-meals @ $20.00 per day per man

S Simon 16 days @ $125.00 T Dowe 16 days @ $150.00 L Salo 16 days @ $200.00 J Salo 12 days and report

TOTAL

Thank you for your business

$ 2,000.00

$ 1,890.00

$ 2,000.00

$10,800.00

$ 200.00

$ 175.00 $ 650.00 $ 800.00

$ 1,600.00

$ 1,200.00

$ 2,000.00 $ 2,400.00 $ 3,200.00 $ 2,500.00

$31,415.00

WORK LOGS

DATE NAME I HOURS WORK PERFORMED Dec 20104 TDowe 5 Travel from Timmins, Unload equipment, mob

S Simon 5 to hill L Salo 5

I Dec 21104 TDowe, • 10 Plow roadway with TD-20, clear away S Simon, 10 I downfall for skidoo access, measure distances L Salo 10 J Salo 8 I

Dec 22/04 TDowe 9 I Work on roadway with TD-20 I

I S Simon 9 L Salo 9 Started test trench # 1 with JSW shovel

i J Salo 7 Measuring test trench I Dec 23/04 TDowe 9 Work on roadway with TD-20

S Simon 9 L Salo 9 Finish test trench #1 J Salo 4 Measuring test trench # 1

Jan 05/05 TDowe 9 Clearing trees from main pit area with TD-20 S Simon 9 L Salo 9 Starting small test pits with JSW Shovel

Jan 06105 TDowe 9 Clearing trees from main pit area with TD-20 S Simon 9

i L Salo 9 Small test pits Jan 07/05 I TDowe 8 Clearing roadways with TD 20

S Simon 8 L Salo 8 Start east west trench

Jan 08/05 • TDowe 9 Plugger work in test trench S Simon 9 L Salo 9 JSW shovel east west trench J Salo 6 Measuring small pits

Jan 09/05 TDowe 8 I Plugger work S Simon 8 L Salo 18 JSW shovel finish east west trench J Salo 16 Mapping trench

I Jan 10105 TDowe 8 Clearing to area of large trench I S Simon 8

L Salo 8 JSW shovel to large trench

I I J Salo 6 Sampling east west trench

I Jan 11/05 TDowe .7 Cleaning up trees into firewood , S Simon 7 L SaIo 7 JSW shovel in large trench J Salo 3 Mapping road ways

Jan 12/05 TDowe 8 Back blading roadways S Simon 8 L Salo 8 JSW shovel in large trench J Salo 4 Paperwork

Jan 13/05 TDowe 8 Plugger work east west trench S Simon 8 L SaIo 18 JSW Shovel in large trench J Salo 4 Measuring

Jan 14/05 TDowe 7 Plugger work large trench S Simon 7 L Salo 4 JSW Shovel in large trench J Salo 5 Blasting

Jan 15/05 TDowe 8 GPS co-ordinates S Simon 8 L Salo 4 JSW shovel in large trench

I J Salo 5 Sampling and finish measurements Jan 16105 TDowe 12 Moving and preparing all equipment for demob

S Simon 12 fromjob site L Salo 12 J Salo 8 Paperwork

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