Report 2.46678 on

Overburden Stripping, Geologic Mapping and

Sampling

MacMurchy Fawcett Property MacMurchy and Fawcett Townships

Larder Lake Mining District Northeastern Ontario

UTM Grid Zone 17, NAD 83 NTS Map Sheet

41P10

for Creso Exploration Inc.

Montreal, Quebec

Jamie Walker Jamieson Geological Inc.

November 7, 2010

... Re.CEIVED

NOV 10 2010 GEOSCIENCE ASSESSMENT

OFFICE

Jamieson S. Walker Jamieson Geological Inc.

Table of Contents

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

9.0 10.0 11.0

Summary .............................................................. . Location .............................................................. . Access ................................................................. . Property .............................................................. . Physiology and Vegetation ......................................... . Regional and Property Geology ................................... . Exploration Rationale ............................................... . Exploration Program ............................................... . 8.1 Overburden Stripping ......................................... . 8.2 Geologic Mapping ............................................. . Discussion of Results ............................................... . Observations ......................................................... . Recommendations ................................................... .

Page 4 4 4 4 5 5 5 5 6 6 6 7 7

Statement of Qualifications........................................................ 9

2

MAPS

Map 1: Location of Claims in MacMurchy and Fawcett Townships and the area shown in Map 2. Scale approximately 1 : 100,000.

Map 2: 2010 Assessment Program- Location Map ofTrenches, Overburden Stripping

Map3: Map4: MapS: Map6: Map7: Map 8:

PHOTOS

and Trench Designations used in this report. Scale approx. 1 :5,000. Geologic Map of Trench 1 A : Scale 1 : 200. Geologic Map ofTrench IA (east): Scale 1 : 200. Geologic Map ofTrench 1B: Scale I : 200. Geologic Map of Trench 1 C : Scale 1 : 200. Geologic Map of Trench 2A: Scale 1 : 200. Geologic Map ofTrench 2B: Scale 1 : 200.

Photo 1: Pillowed basaltic lava flows with carbonate alteration and structural flattening, north end ofTrench IA, viewing northeast.

Photo 2: Volcanic conglomerate (Timiskaming?), overlying mafic volcanics with "flat" dip, Trench 1A (central), viewing east.Photo I:

Photo 3: Volcanic conglomerate (Timiskaming?), Trench IA (east), viewing east.

ATTACHMENT 1: CERTIFICATE OF ANALYSIS

Assay Certificate from Polymet Laboratories:

8819 (Nov., 5, 2010) (Au)

8820 (Nov., 5, 2010) (Au)

3

Samples 21311 to 21332

Samples 21333 to 21349 And Sample 281 01

1.0 Summary In mid October 2010, a contractor was hired to strip overburden from an area of subcropping bedrock within the northern section ofthe claim group. Between October 21 51 and October 281

h, a crew of three workers using a 1-yard trackhoe and Wajax pumps stripped and washed a series of overburden trenches exposing strongly foliated and altered felsic and mafic volcanic rocks. The trenches were sampled both with channel-cut samples and grab samples. A total of 40 samples were collected. The samples were sent to Polymet Laboratories in Cobalt, Ontario on November 1st for gold assay. The trenches were geologically mapped at a scale 1 :200 by the author on November 2nd, 3rd and 41

h.

Assay results were received on November 51h. A report was produced on Nov 51

h and 61h.

2.0 Location The property is located in south central MacMurchy Township and north central Fawcett Township in the Larder Lake Mining Division, District of Sudbury, between UTM NAD 83 coordinates 5267000-5275000 mN and 488000-495000 mE (NTS 41P 11) approximately 9 km northeast ofthe town of Shining Tree.

3.0 Access The property is accessed via Highway 560 east from the town of Shining Tree or west from the town of Gowganda (Map 1 ). The trenches are located approximately 4 km south of Highway 560 near the Bay Lumber Road. This road heads south from Highway 560, 18 km east of Shining Tree, or 32 km west of Gowganda. From the intersection ofthe Bay Lumber Road and Highwat 560 at 3.4 km south of the highway, a secondary lumber road turns to the west and provides access to the trenches (Map 2). During the summer months, the lumber roads are accessible by 4-wheel drive truck. During winter, the trench areas would be accessible by A TV or snowmobile.

4.0 Property The property consists of eight (8) unpatented claims, comprising 30 claim units, tabulated below. The claims are located in south central MacMurchy Township and north central Fawcett Township (Plan #G-0988), Larder Lake Mining District (Map 1).

Claim Number TownshiQ Number of Claim Units 4225663 MacMurchy 6 4225664 MacMurchy 2 4225405 MacMurchy 8 4225409 MacMurchy 3 4225410 MacMurchy 2 4225400 Fawcett 3 4225407 Fawcett 2 4225460 Fawcett 4

The trenching work described in this report was performed on claim number 4225663.

4

5.0 Physiology and Vegetation The northern area of the claim group consists of low rolling outcrop covered by thin sandy till sheets. The southern section of the claim group has thicker glacial and glaciofluvial deposits and virtually no bedrock outcrop. The vegetation consists primarily of planted jack pine of various age, generally less than 10 m in height. Lower areas have cedar, tamarack, spruce, pine, alder, birch and poplar. In the trench area, the vegetation consists exclusively of planted jack pine and some naturally seeded red pine.

6.0 Regional and Property Geology The property was not mapped by the author. The newest mapping conducted by the Ontario Geological Survey is the l :30,000 scale Precambrian Geology of the Shining Tree Area (West Half), 2000, P3420. As well, the area is included on the 1:50,000 compilation map: Precambrian Geology ofthe Shining Tree Area, 2003, P3521. Based on this map series, the MacMurchy Fawcett property is underlain by the Meso­Archean-aged Shining Tree Group volcanics consisting of mafic to felsic metavolcanic rocks. In the northern section of the claim group, in the area of the trenches, mostly intermediate to felsic volcanic rocks are mapped as a north-west striking sequences offset to the south along a northeast trending late fault. Foliations mapped are primarily northeast and east-west trending. Detailed mapping on claim 4225663 indicates locally trending contacts at east-west orientations, similar to the penetrative foliations in the rocks. Both mafic and felsic rocks are exposed in the area as well as mafic intrusive rocks and possible Timiskaming-type sedimentary rocks.

7.0 Exploration Rationale The claim group lies to the northwest of the cluster of historic showings and mines of the Shining Tree camp. As well, the northern claims are within 500 m of a mapped gold showing between Knox Lake and Bob Lake to the west. Additionally, the northern claims are within 2 kilometers of the Bennett and Kingston showings, to the southwest of Pat Lake. The regional foliation indicates that the northern group of claims are likely along strike of this group of showings. The rationale for this early phase of exploration of the MacMurchy-Fawcett claims was to locate potentially mineralized areas and geologically map and sample rocks for geochemically significant gold assays. In so doing, detailed geologic data, generally lacking in the area, would be obtained.

8.0 Exploration Program The property owner contracted Canadian Gem & Minerals to conduct overburden stripping on the claim group, directed by the author. The area was researched and examined in a one-half day reconnaissance program. The area of sub-cropping bedrock on the western-most section of the northern-most claim (4225663) was selected. A seven day program of overburden stripping, washing and sampling utilizing a three-man crew and 1-yard trackhoe and Wajax pump was conducted between October 21 51 and October 281

\ 2010. The program produced two main areas of stripping (Trench 1 and Trench 2, Map 2). A total of 40 samples were collected, including 11 - 1 m cut channel samples (Trench 1 A), and the remaining were composite chip samples. Samples were shipped to

5

Polymet Laboratories in Cobalt, Ontario on November 15\ 2010. Geologic mapping was

conducted for two days over the period of November 2nd to November 41\ 2010. Assay

results were received on November 5, 2010.

8.1 Overburden Stripping and Sampling The property owner hired Canadian Gems and Mineral to move in a trackhoe (excavator) to strip overburden from an area of sub-cropping bedrock to expose potentially gold­mineralized sheared volcanic rocks along strike of known showings in the area. Two areas of overburden trenches (Trench 1 and 2, Map 2) were created. Most of the stripped areas were washed with Wajax pump, but limited water in the area, limited the washing to the Trench 1 area. A total of approximately 515 m2 of overburden stripping was conducted, exposing approximately 220m2 of bedrock in five areas (Trench 1, areas A, B, C and Trench 2, areas A, B, See Map 2). A total of 40 samples were collected. Eleven 1 m-long channel samples were cut using a gas-powered saw from the north section of Trench 1A. The remaining 29 samples were collected as composite chip grab samples. The samples were assayed for gold by Polymet Labs. A total of seven days work was needed to conduct the stripping, washing and sampling work over a period of eight days including mobilization and de-mobilization.

8.2 Geological Mapping Over the period ofNovember 2nd to November 41

h, 2010, the author mapped the stripped areas. The mapping was conducted at a scale of 1 em = 2 metres ( 1 :200). Control lines were laid out with a fiberglass tape and surveyed with Brunton compass. GPS points were collected at the ends of the control lines and shown on the trench maps (Maps 3-8). During mapping, grab sample locations were identified and mapped. The maps were hand drafted on November 5, 2010 from the field maps.

9.0 Discussion of Results The rock types encountered in the mapping of the MacMurchy Fawcett property were (oldest to youngest):

Unit I: Mafic Volcanic Flows: Pillowed flow, pillow breccias and massive dark green, moderately foliated basaltic flows. Unit 2: Felsic Volcanic Rocks: Strongly foliated, light blueish grey, aphanitic flows or tuffs, locally quartz porphyritic. Unit 3: Volcanic Conglomerate: Crudely bedded and graded, foliated, fine to coarse volcanic-clast conglomerate, possibly of Timiskaming age. Unit 4: Mafic Intrusive: dark green, fine-grained, massive, unaltered.

Geologic mapping indicates that the mafic volcanic rocks are the oldest rocks exposed. Pillowed flows indicate topping direction to NNW. These rocks are overturned in the exposures in Trench 1A (Map 3). Foliation and flattening are evident in the pillows with an approximate 4: I length to height ratio. Strikes appear to be sub-parallel to foliation with a general ENE trend with vertical to steep southerly dips. Contacts with the overlying felsic volcanic rocks have a similar ENE trend and dips. The pillowed flows

6

generally have a strong carbonate alteration and fine chlorite +/- sericite foliation and trace to 1% pyritic sulphides. The felsic volcanic rocks exposed in the trenches are strongly foliated and deformed, with a foliation trend from NE to NNE with vertical to steep dips to the south. No primary volcanic textures were observed in these rocks, leading to the assumption that the felsic rocks are either deformed massive flows or foliated tuffs. In the northern section of Trench 2A (Map 7), more intermediate composition rocks are exposed. Locally the felsic rocks have preserved quartz phenocrysts. The felsic rocks are generally greenish to blueish grey with a tan weathering surface. The matrix is aphanitic but strongly foliated suggesting a pervasive sericite-rich alteration. Locally iron-carbonate alteration is evident, with a dark brown weathering surface. Locally the rocks contain trace amount of fine pyrite, but generally are devoid of sulphides. Outcrops are slatey, with steep bedrock profiles, in places suggesting foliation parallel faulting. The volcanic conglomerate unit as exposed and mapped consists of coarse feldspathic sandstone to cobble volcanic conglomerate (Trench IA (east), Map 4). Gross grading suggests topping to the NNW with steep overturned bedding to the south, however the moderate to strong foliations present may have created a foliation=bedding relationship. Clasts in the conglomerate are predominantly subround felsic volcanics, with a lesser amount of finer deformed mafic clasts. The matrix of the conglomerate is feldspathic with a pervasive weak to moderate carbonate overprint and sericitic foliation. Contact relationships are exposed in the central section of Trench lA (Map 3), where the conglomerate is overlying the mafic volcanic rocks in a flat contact relationship, contrary to the older rocks. Here, the contact trends approximately north-south with a very gentle dip of 10° to the east. This contact would suggest an unconformity with the underlying steeply dipping volcanics. The nature of the rocks and contact relationship might also suggest that these rocks belong to the Timiskaming Group. Further work would be required to confirm or refute this interpretation. A late mafic intrusive body, probably of gabbroic composition intrudes all of the older rocks exposed in the trenches. Lack of foliation, suggests that this intrusive is post­deformation. The rock consists of dark green massive to weakly jointed, non-foliated, aphanitic to fine-grained mafic rock in a cross-cutting relationship. Locally the intrusive has 2-5 em calcite veins and trace amounts of fine-grained sulphides.

10.0 Observations Sampling and assays of the varied rock types exposed in the trenches revealed no samples above the detection level of 0.03 g/t gold. This result, although from altered rocks with apparent Fe-carbonate alteration is understandable considering the general lack of sulfides in most of the section. The structural deformation of the rocks would favour a shear hosted style of mineralization, but the general lack of sulphide indicates that these rocks are outside the mineralization trend in the area. Several areas of low ground, with thicker overburden were test trenched, but were beyond the reach of the track hoe.

11.0 Recommendations Based on observations of the rocks in the stripped areas and geologic relationships during mapping of the trenches further work in the immediate area is not warranted. The shear

7

fabrics developed in the rocks suggest that a strong shear-style system is present in the area, but not gold-bearing in the rocks exposed in these trenches. If further work is conducted, the areas to the southeast ofthe trenches look most prospective. Bedrock contours drop off rapidly to the southeast behind both Trench 1 C and Trench 2B, suggesting that the shear faulting is to the southeast. Small older overgrown trenches were found to the southeast of Trench 1 C. This area could be explored by stripping, geochemical surveys (soils) or geophysical prospecting.

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Statement of Qualifications

I, Jamieson S. Walker, of 4 Private Rd., Blue Diamond, Nevada, USA hereby certify that:

I. I am a graduate of:

University of Minnesota in Duluth, Minnesota with a Master of Science degree, Geology in 1993.

Lake Superior State College in Sault Ste. Marie, Michigan with a Bachelor of Science degree, Geology in 1985.

Sault College of Applied Arts and Science in Sault Ste. Marie, Ontario with a Geological Engineering Technician Diploma, 1981.

2. I have been practicing my profession since graduation.

3. The information contained in this report is the result of work done by myself or work that I personally supervised.

4. I have a small interest in Creso Exploration.

Dated at Gowganda, Ontario, this 71h day ofNovember, 2010.

Respectfully submitted

Jamieson S. Walker, M.Sc. President, Jamieson Geological Inc. A Nevada Corporation

9

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ADMINISTRATIVE DISTRICTS I DIVISIONS

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Map I: Location of Claims in MacMurchy and Fawcett Townships and the area shown in Map 2. Scale approximately I IOO,OOO.

I

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area of overburden stripping B and area of exposed bedrock

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Map 2: 2010 Assessment Program - Location Map of Trenches, Overburden Stripping and Trench Designations used in this report. Scale approx. 1 :5,000.

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Photo 1: Pillowed basaltic lava flows with carbonate alteration and structural flattening, north end of Trench IA, viewing northeast.

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19

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20

ATTACHMENT 1: CERTIFICATE OF ANALYSIS

CERTIFICATE

Date: Nov. 5, 2010

Sample#

21311 21312 21313 21314 21315 21316 21317 21318 21319 21320 21321 21322 21323 21324 21325 21326 21327 21328 21329 21330 21331 21332

Std OxL 78 Blank

0.176 <.001

PolyMet Laboratories

8819

Au Ozlton

<.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001

6.034 <.03

Rocks

g/tonne

<.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03

Certified Assayer:

Client: Creso Job No. 0-186

22 Rocks

CERTIFICATE

Date: Nov. 5, 2010

Sample#

21333 21334 21335 21336 21337 21338 21339 21340 21341 21342 21343 21344 21345 21346 21347 21348 21349 28101

Std OxL 78 Blank

0.176 <.001

PolyMet Laboratories

Au Oz/ton

<.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001 <.001

6.034 <.03

Rocks

gltonne

<.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03 <.03

Certified Assayer:

Client: Creso Job No. 0-186

18 Rocks

22