1st Year Assessment Report on

Prospecting and Sampling Program,

Mary’s Harbour West, Labrador

License Number 017997M

03D/05,13A/08

Newfoundland and Labrador.

Submitted by:

Chris Moran, B.Sc.

For:

Alterra Resources Inc.

November 30th, 2011

Total Claims: 41

Program Expenditures: $40,369.59

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Table of Contents

1. INTRODUCTION ............................................................................................................................ 1 1.1 Property Location and Access ......................................................................................................... 1 1.2 Physiography........................................................................................................................................ 1 1.3 Claim Status .......................................................................................................................................... 2

2. PREVIOUS WORK ......................................................................................................................... 2

3. GEOLOGY ........................................................................................................................................ 2 3.1 Regional Geology and Mineralogy .................................................................................................. 2 3.2 Property Geology ................................................................................................................................ 3

4. 2010/2011 EXPLORATION PROGRAM................................................................................... 3 4.1 Prospecting ........................................................................................................................................... 4 4.2 Clearing, Hand Trenching, and Channel Sampling Using a Portable Chop Saw ................. 4 4.3 Exploration Results ............................................................................................................................ 5

5. CONCLUSION AND RECOMMENDATIONS............................................................................... 5

6. REFERENCES ................................................................................................................................. 7

APPENDIX A – EXPENDITURES

APPENDIX B – MINERAL TENURE

APPENDIX C – SAMPLE DESCRIPTIONS

APPENDIX D – ASSAY CERTIFICATES

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Table of Figures Figure 1: Alterra Resources Southeastern Labrador Licences ................................................1 Figure 2: Regional Geology Map .............................................................................................................2 Figure 3: Geochemical Samples Taken on Licence 17997M .....................................................4

List of Tables Table 1: 017997M Claim Status ..............................................................................................................2 Table 2: 017997M Channel Summary Table ....................................................................................5

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1. INTRODUCTION

Search Minerals, by way of its wholly owned subsidiary Alterra Resources Inc., owns 41 claims

within license 17997M. This license is located near Mary’s Harbour, approximately 20

kilometres southeast of Port Hope Simpson and was staked in October 2010 by Alterra

Resources Inc. for Rare Earth Element (REE) exploration. This report documents the work

conducted on license 17997M during the 2010-2011exploration season.

1.1 Property Location and Access

License 17997M is located on the flank of a hill that borders the St. Lewis Inlet, southeast of Port

Hope Simpson (Figure 1). The license is accessible by boat, helicopter and via highway 510, an

all season gravel highway.

Figure 1: Location of License 17997M

1.2 Physiography

The vegetation in this locality varies from spruce and birch, to areas covered by alders and

caribou moss. This licence is littered with boulders and covered locally with thick overburden

that makes prospecting and traversing difficult. Relief in the area ranges from ~220m on a

nearby hilltop to sea level.

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1.3 Claim Status

License

Number

Year Number

of

Claims

Issued Work Date Required

Expenditures

Actual

Expenditures

17997M 1 41 2010/10/07 2011/10/07 $8200 $40369.59

Table 1: 017997M Claim Status

2. PREVIOUS WORK

Alterra Resources Inc. conducted an airborne radiometric and magnetic survey in 2009 that

covered their entire B&A claim area, with the exception of licenses 15151M and 15152M. This

included the area covered by license 17997M.

3. GEOLOGY

3.1 Regional Geology and Mineralogy

Figure 2: Regional Geology Map

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Regional geological units in the St. Lewis Inlet-Mary’s Harbour Area belong to three

lithotectonic domains of the Grenville Structural Province: from north to south, Lake Melville,

Mealy Mountains and Pinware (Gower, 2005; Gower et al., 1987, 1988). Differing lithologies,

structures and metamorphic effects distinguish each of these domains; major fault zones separate

these domains (Gower et al., 1987, 1988).

The Lake Melville domain, in the Port Hope Simpson area, is characterized by units of the

Alexis River anorthosite, biotite-bearing granite, granodiorite and quartz diorite to diorite gneiss

(Gower et al., 1987, 1988). The Fox Harbour fault zone separates the Lake Melville to the north,

from the Mealy Mountain domain to the south (Gower, 2005).

The Mealy Mountains domain, which occurs on the north shore of St. Lewis Inlet and

northwestward consists mostly of biotite granitic gneiss, K-feldspar megacrystic granite gneiss,

quartz diorite to dioritic gneisses and pelitic to semipelitic sedimentary gneisses (Gower et al.,

1987, 1988). The Mealy Mountains domain is separated from the Pinware domain by the Long

Harbour fault zone; this fault mainly occurs within the St. Lewis Inlet (Gower, 2005).

The Pinware domain, in the St. Lewis Inlet to Henley Harbour area, consists of metamorphosed

felsic to intermediate intrusions and older intercalated quartzofeldspathic supracrustal rocks.

Intrusions consist mainly of granite, K-feldspar megacrystic granite, quartz monzonite,

granodiorite and quartz diorite (Gower et al., 1987, 1988). Supracrustal rocks are thought to be

metamorphosed felsic volcanic rocks and arenitic sediments (Gower, 2007).

Granitic pegmatites cut most units in the region. Some of the biotite and/or magnetite-bearing

granitic dykes also contain U, Th and REE minerals.

3.2 Property Geology

Due to the preliminary nature of exploration work on this license, it was not mapped in any

detail. Most fieldwork revolved around prospecting and sampling, utilizing a spectrometer to

highlight areas of anomalous radioactivity.

A foliated quartzofeldspathic unit (volcanic (?)), intrusive granitoids and mafic volcanics are

present in the area. This license also contains a relatively unmineralized, but locally enriched

pegmatite with an average crystal size between 0.5-1cm.

4. 2010/2011 EXPLORATION PROGRAM

Exploration work conducted on this property during the period covered by this assessment report

consisted of 1) prospecting, and 2) clearing, hand trenching, and channel sampling using a

portable chop saw.

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The 2010/2011 exploration program on this license commenced with a program of anomaly

assessment, which consisted of prospecting and sampling with teams of geologists and

prospectors utilizing truck, boat, and helicopter support. The focus of exploration activity were

REE’s, along with associated Zr, Y and Nb.

Expenditures are listed in Appendix A.

4.1 Prospecting

Surface prospecting was predominantly conducted using hand-held spectrometers and

scintillometers. Anomalous zones identified by prospecting were marked for later clearing and

channel sampling.

4.2 Clearing, Hand Trenching, and Channel Sampling Using a Portable Chop Saw

Figure 3: Channel Samples Taken on License 17997M

Subsequent to the discovery of prospective areas, select locations were cleared and channel

sampled. Areas were cleared by stripping moss carpets and hand-trenching soils/tills to normally

less than 50cm depth. Radioactivity and favourable geology dictated the size of area cleared.

Channel samples, 10cm deep and 8cm wide, are cut by gas-powered diamond saw from cleaned

outcrops to provide samples for assay and logging/reference. Each channel is cut into two

vertical sections, similar to drill core, with a 6 cm thick section (weathering removed) being sent

out for assay to Activation Laboratories Ltd. (see SMY News Release July 27, 2010 for details of

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analytical methods). A 2 cm thick section is stored in channel boxes for reference and to provide

due diligence/verification samples. The channels are cut perpendicular to strike, pieced together,

logged and photographed to produce geological and geochemical sections. These channel

samples, or horizontal drill holes, produce the same data as vertical diamond drill holes, except

the data is from horizontal geological sections and the collected sample is 6 to 8 times bigger

than NQ drill core. Additional 8 cm wide cuts from a channel interval make excellent

preliminary metallurgical samples (1m of channel yields about 30kg of sample).

All channels sampled on license 17997M are shown in Figure 3 with their associated

lithogeochemical sample numbers. The assay data and descriptions for each channel sample are

listed in Appendix C. Rock types were given number and letter abbreviations during channel

logging. Pertinent numbers for the 17997M logs include: the number two for mafic rocks, three

for pegmatites, and six for foliated granites.

All 2010/2011 samples were sent to Activation Labs Ltd. for lithogeochemical analysis.

Activation Laboratories has a prep laboratory in Goose Bay, Labrador, while analyses are

conducted in Ancaster, Ontario.

Channel License Easting Northing Azimuth Date Cut

Date

Sampled

Length

(m) Assay Range

SSC-11-001 017997M 563731 5805494 040/220 08/20/2011 08/29/11 1.69

519042-

519045

SSC-11-002 017997M 563715 5805504 074/254 08/20/2011 08/29/11 1.21 519040-519041

SSC-11-003 017997M 563720 5805503 054/234 08/20/2011 08/29/11 1.29

519037-

519039

SSC-11-004 017997M 563723 5805506 148/328 08/20/2011 08/29/11 3.21

519104-

519110

Table 2: 017997M Channel Summary Table

4.3 Exploration Results

Exploration on this license gave mixed results. While some samples were anomalous, most were

relatively barren of REE, and incompatibles. Zirconium values up to 1800ppm were observed,

along with slight enrichments in the light rare earth elements. No anomalous heavy rare earth

elements were detected.

5. CONCLUSION AND RECOMMENDATIONS

While the desired exploration results were not obtained on this license during the assessment

period, further understanding of the area has been obtained. Samples from this license were taken

from mineralized units, as well as unmineralized units, to try to understand the greater geological

processes that contributed to the rocks as we find them currently. Further prospecting, as well as

channel sampling and mapping will further add to our understanding of the geology that is found

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not only on this license, but in surrounding areas as well.

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6. REFERENCES

Gower, C.F.,

2005: Kinematic evidence for terrane displacements in the Grenville province in eastern Labrador, Current Research (2005) Newfoundland and Labrador Department of Natural Resources, Geological Survey, Report 05-1, p. 73-92

2007: Protolith recognition of metamorphosed felsic volcanic/volcaniclastic rocks, with special reference to the Grenville province in southeast Labrador, Current Research (2007) Newfoundland and Labrador Department of Natural Resources, Geological Survey, Report 07-1, p. 11-23

2010: Geology of the St. Lewis River area (NTS sheets 03D/04 and 05; 13A/01, 02, 07

and 08), southeastern Labrador. Geological Survey, Mines Branch, Department of

Natural Resources, Government of Newfoundland and Labrador, Map 2010-24, Open

File LAB/1566.

Gower, C.F., Neuland, S., Newman, M., Smyth, J., 1987: Geology of the Port Hope Simpson map region, Grenville province, eastern

Labrador, Current Research (1987) Newfoundland Department of Mines and Energy, Mineral Development Division, Report 87-1, p. 183-199

Gower, C.F., Van Nostrand, T., Smyth, J., 1988: Geology of the St. Lewis River map region, Grenville province, eastern

Labrador, Current Research (1988) Newfoundland Department of Mines, Mineral Development Division, Report 88-1, p. 59-73

APPENDIX A—EXPENDITURES

License 017997M ( 41 Claims)

Field Work General Exploration Geo Consulti Assays Helicopters Field SupplieField TraveGIS/CartograpCamp CostTravel Rentals Total(Prospecting, sampling, etc.)

Paul Delaney 237.50

Chris Moran 937.50

Marek Downarowicz 125.00

Carlo Penacerrada 200.00

Luc Chabanole 3,566.66

Jonathan Remedios 125.00

Matt Baird 600.00

Andrea McFarlane 150.00

Amiee Snelgrove 112.50

Claude Sheppard 137.50

Sam Acreman 1,744.22

Charlie Curl 146.02

Fred Butt 222.04

Shane Eastman 149.68

Lawrence Pool 477.75

Brian Penney 540.13

Brian Ward 459.26

Russell Poole 744.02

Pearce Penney 576.12

Harvey Kippenhuck 303.90

Blair Penney 1,669.17

Cdn Helicopters 11,300.37

Activation Labs 1,128.00

Budgell's 234.00

PH General 1,917.16 745.38 2,100.02 2,594.48 1,521.51 1,774.48 458.79 1,688.38 1,379.65 303.40

Total 15,137.63 745.38 2,337.52 1,128.00 13,894.85 1,521.51 1,774.48 458.79 1,688.38 1,379.65 303.40 40,369.59

October 7, 2010 - October 7, 2011

APPENDIX B—MINERAL TENURE

Mineral Rights Inquiry Report

Licence Number: 017997M

File Number: 775:1391

Original Holder: Alterra Resources Inc.

Licence Holder: Alterra Resources Inc.

Address: 1320, 885 West Georgia Street Vancouver, BC Canada, V6C 3E8

Licence Status: Issued

Location: St Lewis Inlet

Electoral Dist.: 04 Cartwright-L'anse Au Clai

Recorded Date: 2010/09/07

Issuance Date: 2010/10/07

Renewal Date: 2015/10/07

Report Due Date: 2011/12/06

Org. No. Claims: 41.0000

Cur. No. Claims: 41.0000

Recording Fee: $410.00

Receipt(s): 56990122 (2010/09/07) $410.00

Deposit Amount: $2,050.00

Deposit: 56990122 (2010/09/07) $2,050.00

Map Sheet No(s): 03D/05 13A/08

Comments:

Mapped Claim Description:

Beginning at the Northeast corner of the herein described parcel of land, and said corner having UTM coordinates of 5 806 500 N, 563 500 E; of Zone 21; thence South 500 metres, thence East 2,000 metres, thence South 500 metres, thence East 500 metres, thence South 500 metres, thence East 1,000 metres, thence South 500 metres, thence East 2,000 metres, thence South 500 metres, thence East 1,000 metres, thence South 1,500 metres, thence West 1,500 metres, thence North 500 metres, thence West 1,000 metres, thence North 1,000 metres, thence West 3,000 metres, thence North 500 metres, thence West 1,000 metres, thence North 500 metres, thence West 500 metres, thence North 1,500 metres, thence East 500 metres to the point of beginning. All bearings are referred to the UTM grid, Zone 21. NAD27.

Land Claims (effective 2005/12/01): LISA: 0.00% LIL: 0.00% VBP: 0.00% Crown: 100.00%

Extensions: None

Work Reports: None

$8,200.00 to be expended on this license by 2011/10/07

Licence Transfers: None

Partial Surrenders: None

This Licence replaces Licence Number(s): None

This Licence is replaced by Licence Number(s): None

Work Report Descriptions: None

Detailed breakdown of projected required expenditure:

Actual Year Actual Expenditure Work Year Excess Expenditure Claims

1 $0.00 1 -$8,200.00 41.0000

APPENDIX C—SAMPLED DESCRIPTIONS

ASSAY#FROM

(m) TO (m)

LT (m)

P. ROCK TYPE % PRI

S. ROCK TYPE

% SEC % MAG % AMPH % BIO % REE 1 FABRIC FABRIC MAG Comments

519042 0.00 0.35 0.35 6 100 ~5 1-2 <1 foliated visible yellow mineral - ferg or titanite.519043 0.35 1.00 0.65 6 100 ~5 1-2 <<1 foliated519044 1.00 1.32 0.32 6 100 ~5 2-5 <<1 foliated519045 1.32 1.63 0.31 6 100 ~5 2-5 <<1 foliated

ECO

ALTERRA CHANNEL SAMPLE LOG SHEET Page _1___ of __1____ Channel #: SSC-11-001 Total Length: 1.63m Date Cut: Date Logged: August 29, 2011 Logged By: Luc Chabanole Project: Southern Shore License #: 017997M Assay # Range: 519042 - 519045 Channel UTM E- 563731 N- 5805505 Channel Trend: Photo: S: F: Stitched: Picture:

ASSAY# FROM (m)

TO (m)

LT (m)

P. ROCK TYPE

% PRIS. ROCK

TYPE% SEC % MAG % AMPH % BIO % REE 1 FABRIC MAG Comments

519040 0.00 0.61 0.61 6? 100 1-3 ~5-10 ~1-2 at 0.21m 0 4 cm epidote rich vein; epidote diss throughout, up to ~25%; no visible REES

519041 0.61 1.17 0.56 6? 100 1-3 ~5-10 ~1-2 at 0.21m 0 4 cm epidote rich vein; epidote diss throughout, up to ~25%; no visible REES

ALTERRA CHANNEL SAMPLE LOG SHEET Page __1__ of __1__ Channel #: SSC-11-002 Total Length: 1.17M Date Cut: Date Logged: August 29, 2011 Logged By: Luc Chabanole Project: Southern Shore License #: 017997M Assay # Range: Channel UTM E- 563715 N- 5805504 Channel Trend: Photo: S: F: Stitched: Picture:

ASSAY# FROM (m)

TO (m)

LT (m)

P. ROCK TYPE

% PRIS. ROCK

TYPE% SEC % MAG % AMPH % BIO % REE 1 FABRIC MAG Comments

519037 0.00 0.33 0.33 6 70 3 30 ~1-3 2-5 ~1 <<1 6 is foliated pyrite; ferg, or titanite around some mafics;

519038 0.33 0.97 0.64 3 100 <<1 mostly qtz & feldspar; coarse

519039 0.97 1.31 0.34 2 100 10-15 10-15 2-5 <<1 weak foliation epidote visibleonly in first ~5-8cm around tims of amph; granet:

EOC

ALTERRA CHANNEL SAMPLE LOG SHEET Page __1__ of __1__ Channel #: SSC-11-003 Total Length: 1.31M Date Cut: Date Logged: August 29, 2011 Logged By: Luc Chabanole Project: Southern Shore License #: 017997M Assay # Range: 519037 - 519039 Channel UTM E- 563720 N- 5805503 Channel Trend: Photo: S: F: Stitched: Picture:

ASSAY# FROM (m)

TO (m)

LT (m)

P. ROCK TYPE % PRI

S. ROCK TYPE % SEC % MAG % AMPH % BIO % REE 1 FABRIC MAG Comments

519104 0.00 0.90 0.90 6? 100 1-3 2-5 <1 <<1 foliated varying amounts of diss epidote519105 0.90 1.18 0.28 6? 100 1-3 2-5 <1 <<1 foliated varying amounts of diss epidote519106 1.18 1.53 0.35 2 100 2-5 15-20 1-3 <<1 weak foliation some sulphides;519107 1.53 1.88 0.35 6? 100 1-3 2-5 <<1 <<1 foliated diss epidote throughout519108 1.88 2.58 0.70 6? 100 1-3 2-5 <<1 <<1 foliated change in foliation direction; less epidote519109 2.58 2.68 0.10 2 100 2-5 75% <<1 <<1519110 2.68 3.10 0.42 6? 100 1-3 2-5 <<1 <<1 foliated epidote around rims of mafics

EOC

ALTERRA CHANNEL SAMPLE LOG SHEET Page __1__ of __1__ Channel #: SSC-11-004 Total Length: 3.10M Date Cut: Date Logged: August 29, 2011 Logged By: Luc Chabanole Project: Southern Shore License #: 017997M Assay # Range: 51904 - 519110 Channel UTM E- 563723 N- 5805506 Channel Trend: Photo: S: F: Stitched: Picture:

APPENDIX D—ASSAY CERTIFICATES