--

-

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Report on Stream Sampling

Toistoi Property

Prepared for: 6398651 Canada Inc.

By

True North Mineral Laboratories 475 Railway Street

Timmins, ON P4N 2P5

3508 --

RECEIVED JUN 0 6 2007

alOICIINce ASSES MINT ,--UI"I"I'-III:

True North Mineral Laboratories Inc. f-~ ~~~~~~~~~~-

Table of Contents .---~ -~~~~-~~~~-

~~~--~~--~~~--~~~--~~~

Page no.

Table of Corllt,m., 1 ilntrQ(juction 2 Property Description

~~~~-.... ~-.~.--~-.... --~~ ---~~~

2 A 2

IWOrk Program I 2 I IVIC:alIUU;::O 4 Material .g"""III'l:j 6

~~~

R.esults I 6 ~~~--.... - ------- ------.----~~---.. -

Recommendations ~~~~---j---"----~~--~~~

Appendix I - Abbre"iation DeSCription 9-Appendix I - Sample and fraction weight~and vial reference num~~ ___________ ~~~~_~_ .~~ 10 Appendix II -Abbreviation Description

-1-1-~~~-

~--~~~ ._---12~ Appendix II - Summary of Microscope Observation-picked grains I ~~~-

Appendix III - Photograph of picked grains-vial contents I 13 Appendix IV - Material Handling Process prior to analysis- methods and procedures 14 to 17 Appendix V - Field Logs ~-18-

i ..

Appendix VI- Sample Coordinates- NAD 83, UTM. Zone17 I 19 Apper'cli;.., VII - Probe Results/Certificate and Classifications from CF Mineral Research Ltd. j 20 to 33

I ~--~~~

:~~-

Report Completion Date I-

34 Author Qualifications and Experience i 34 to 35 r:--~ ~---.---~---.. ----.-----~~~

I Back Coverj Agent Letter - 6398651 Canada Inc. to Author

Lists of Figures and Tables Figure 1 - Location and Access 3 Figure 2 - Odlllll-llt;: Locations 5 Figure 3 - IIm::" ... , ClClllUI Map 8

~--~

Introduction

On May 19, 2005, Tres-Or Resources Ltd. announced the discovery of the Lapointe One Kimberlite on their Temagami North Properties (Sharpe Twp­Larder Lake Mining Division).

6398651 Canada Inc. was engaged in a regional overburden sampling program in the same area. This work resulted in the positive identification of kimberlite and diamond indicator minerals which led to the staking of Tolstoi Property.

Property Description

Claim Numbers 4202897, 4207111 and 4207112 are located in Tolstoi Twp.­Larder Lake Mining Division, approximately 23Km South of Matheson. Refer to Figure 1 (Location and Access map) for more detailed claim locations.

Access

The claims were accessed by traveling East along highway 101 to Matheson, then due South along a gravel road to the property. Refer to Figure 1 (Location and Access map) for more detailed access information.

Work Program

Field Work was carried out on June 3, 2005 and consisted of 1 Stream sample.

Field and laboratory work was carried out by True North Mineral Laboratory/ActLabs Timmins. Refer to Figure 2 for more detailed sample location.

Sample Field Logs can be found in Appendix V. Sample Coordinates can be found in Appendix VI.

2.

Figure 1

Tolstoi Property Access Map

April 2007

Scale 1 :500,000 ------ -o 10 15K.m

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-r-

--....

Methods-Stream Sampling

Samples of stream bed material were screened in the field to remove coarse fractions. Material bigger than tyler mesh #12 was removed in the field and the finer material was bagged and delivered to True North Mineral Laboratory.

Typical Field Screening

4-

Material Handling Handling of sample material was carried out by True North Mineral

Laboratory/ActLabs-Timmins on a contract basis for 6398651 Canada Inc. A general description of material handling prior to analysis can be found in Appendix IV.

Key sample weights and vial reference numbers for vials containing heavy mineral concentrates, first pass picks and final picks (sent to C.F. Mineral Research Ltd. in Kelowna, B.C. for SEM and Microprobe analysis) can be found in Appendix I.

Observations noted during final picking can be found in Appendix II.

Photographs of minerals found during first pass picking and final picking can be found in Appendix III.

Results

Visual Observation 9 grams of heavy mineral concentrate (minerals heavier than 2.85 g/ml) were

observed in total for the one sample. Possible kimberlite indicator minerals were observed in the sample as detailed in Appendix II.

KC-197 contained a grain that appeared to be an eclogitic garnet, as well as several possible olivine grains. In total 23 grains were sent for analysis.

Analysis CF Mineral Research uses a method where mineral grains are mounted onto

an epoxy plug and are analysed first by Scanning Electron Microscope (SEM). This process helps to identify mineral grains worthy of more detailed analysis by Electron Microprobe. Out of the 23 grains that were sent for SEM, only 7 grains were deemed worthy of further analysis by microprobe. The possible eclogitic garnet, noted above was confirmed by microprobe. However, it was classed by CF Minerals as being from a non-diamondiferous rock source.

Results from CF Minerals analysis by SEM can be found in Appendix VII.

Recommendations

None of the mineral grains from the small stream sample appear to be from a kimberlitic source. However, the Tolstoi Property was staked based largely on airborne magnetics, the material sampled appeared to be mainly surficial and clay-rich So therefore, not much has been gained to explain the intense circular magnetic feature as shown on Figure 3 (Interpretation Map). It is recommended that the company carry out hand or power auger sampling on the property.

L-- 1_

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I /

\ , ,'

__ I ~ ______ _____ '-

hi

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i ~ Figure3 M

Abbreviations Concentrate Floats (9) HMS RNM

#12 Tyler Mesh #20 Tyler Mesh #40 Tyler Mesh #70 Tyler Mesh

True North Mineral Laboratories Inc.

Appendix I

Meaning -mineral grains with specific gravity >2.85g/ml -mineral grains with specific gravity <2.85g/ml -grams -Heavy Mineral Separation

-Remaining Non-Magnetic Concentrate after picking

-1.7mm -0.85mm -0.43mm -0.21mm

True North Mineral Laboratories Inc. ---_ .. _--. - .. ---.. -~---.. - .. ~--

A, I .-

rIUJc: .... L. Tolstoi ~C:ILr ··_~_ •• ___ w ___ • •• __

Client: \.Iamma CorjJU, ClUUII ... _ .. _. !

Field I Selected for Total Total Total Vial # Vial # I

Select Vial # Sample No. ... .11: .

HMS Fraction Floats Concentrate Picks . .. ""'!:I'IC:lI' Grains

I (g) I (tyler mesh) (9) (9) (g) Con .... " .. LI GLU ,... ,.. .... ,.. ...

. Concerm a.v f-._-_. , ..... ILJGLU ................... a ... . ... -.

I KC-197 1115 <40>70 35.48 I 26.97 8.51 222 I 222 221

.. - ... -

!

.. i

i -- ... I I

i

I

True North Mineral Laboratories Inc.

Appendix II

Where observed concentrates and picked grains from this program were deemed not worthy of further SEM and Microprobe analysis the microscope observations are included in the current report as well as photographs found in Appendix III.

Abbreviations CHR ClRJWHT CPX ECl GAR IlM OLI OPX

Meaning -Chromite -ClearlWhite -Clinopyroxene -Eclogitic garnet - Garnet -Ilmenite - Olivine - Orthopyroxene

H

True North Minerai .!!Ie.

" Project: Toistol Property Client: Canada IJOlPorauvl1

! of Heavy Minerai

Sample No, # GAR CHR i

·CLRIWHT N~~~~r Remarks r.. Date ~u~v, 'w'

KC-197 <40>70 221 8 1 1 0 0 1 4 8 23 KSC June 9/05 ......... _ ... ~ .. ----.. -

......... ---------- ~

I ... ---.-.---~-. --

--

... - 1--' .---~~ ......... -----~ -_._,

.•.... __ . . -.......

~.--.. ----_., --, I "-,

..

I .. -~-.-r-' .. -

-'"

--

,...

-

-

Appendix III

KC-197

Vial #221

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-

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Appendix IV

Material Handling Prior to Analysis - Methods and Procedures

1. Recording Sample Information

The sample is weighed, information is taken from a field book, sample log and hand WTitten weight logs and entered into appropriate computer spreadsheet(s). Hand written location coordinates are normally cross checked against stored GPS waypoints if available. Often, GPS waypoints are downloaded into a computer and archived at this time as further backup. An effort for completeness is made to properly document the following information prior to the start of sample processing as it is critical sample information:

• Sample location - in NAD83, UTM coordinates including zone number . • Sample logs - type, depth (if auger), material description, observations. • Sample weight - full sample weight as it arrived from the field.

Weighing Field Sample Cleaning sieves Typical sieve arrangement 2. Sieving, Sorting, Pre-wash

The sieves are thoroughly cleaned and inspected to eliminate any possibility of contamination from previous samples. The sample is washed through a stack of sieves. This process provides a preliminary wash for the mineral grains and sorts them by size. Selection of appropriate sieve mesh sizes can vary according to the type of material being sorted. Typical sieve sizes used are (Tyler mesh) #12, #20, #40 and #70.

Stated as metric equivalents: #12 = 1.7mm

#20 = 0.85mm #40 = 0.43mm #70 = 0.21mm

Sieve mesh sizes used for any particular sample can be found in the attached appencies that provide sample weights and mineral grain observations. Normally a lower size limit is determined and accepted beforehand. Sample material smaller than the lowest mesh size is normally washed away. In some cases all of the fine material is kept for possible microscope study, particularly in the case of an expensive sample.

1+

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3. Washing

Each resulting size fraction is washed thoroughly with clean water and dish soap as it is removed from the sieves. Any organic material remaining with each fraction is floated off and washed away through repeated washing and rinsing. Washing is complete when the mineral grains are free of any organics, soap and fine silt.

4. Drying

The resu lting, washed fractions are then dried. An oven can be used to speed drying time. Once dry each of the size fractions is bagged in a plastic zip-Ioc bag and weighed. The resulting weight is recorded in both hand written log form and on computer spreadsheet. Clear labels must accompany each fraction through all remaining procedures.

Drying sample fractions Fractions bagged and labelled Fractions weighed 5. Heavy Liquid Separation

The resulting size fractions are looked at to determine which fraction(s) are suitable for heavy liquid separation. Larger size fractions may not contain enough mineral grains to make heavy liquid separation worthwhile. Program budget may limit the number of heavy liquid separations per sample or sample program. Smaller size fractions can provide the greatest number of heavy grains for observation in the resulting heavy mineral concentrate. However, fine grains can be more difficult to handle during microscope work. Each sample will have one ore more size fractions that are better suited for the process than the others.

The selected size fraction is run through a heavy liquid process where all grains having a density greater then 2.85 glrol (sinks) are separated from the lighter fraction material (floats). All kimberlite indicator minerals will sink, as will many other minerals of economic interest, such as gold.

Both the sinks and floats are rinsed thoroughly in distilled water. The distilled water is saved for recycling as most of the expensive heavy liquid can be recaptured later. Both portions are then dried. An oven can be used to speed drying time. The floats are normally put in storage as the grains may warrant further study should the heavy mineral portion yield positive results. Abrasion due to grain transport for example, can help to determine transport distance. The sinks, or heavy mineral concentrate moves on to the next stage.

IS

,...

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Separatory funnel Typical yield of Heavy Minerals Floats (less than 2.85 glml) stored 6. Observation and Picking

The microscope observation table and surrounding area must be thoroughly cleaned to ensure there are no grains around from past samples. A clean paper table cover is placed under the microscope to cover the surrounding table top. All grain handling is done on the table cover.

Small portions of heavy mineral concentrate are placed in plastic dishes in preparation for microscope observation. A small hand magnet is used to pull out and separate any magnetic grains from each dish. The magnetic grains are carefully placed into a separate dish for observation. This portion will be stored separately in a numbered plastic vial.

The non-magnetic portion of the heavy mineral concentrate is observed using binocular microscope and a good light source. When visually identified, kimberlite indicator minerals or any mineral grains of interest are manually picked using tweezers and placed in a numbered plastic vial. A computer log is maintained during observation where notes are linked to sample number, fraction, vial number and other basic information. When observation of each dish is complete, any remaining, unpicked grains are placed into a separate, numbered plastic vial using a small funne l. Observation notes are backed up regularly onto CD and archived. All vials are weighed on a fine scale and documented by hand written log and computer spreadsheet before storage.

Important grains or vials of picked grains that are selected for further analysis, such as SEM and microprobe are photographed through the microscope using a digital camera. Total number of grains to be sent for analysis is verified by counting them on the digital image using suitable graphics software. Normally all grains sent for SEM or microprobe analysis are returned, mounted on a slide or plug. The digital photograph, observation notes and grain count can be used at that time for basic verification and identification of analyzed grains. Copies of the digital photographs can be shipped to the analytical lab along with the selected vials of grains. This helps the receiver to confirm all grains were received and discrepancies can be noted by both parties.

Observation work station Grains in vials

'"

TABLE 1

2! X

"D C Q) 0. 0. <! c

ro ~ Q) "D

~ o E c

"D Q) .0 'C U til Q)

o

Material Handling Prior to analysis

i-Record Critical Sample Information

• Sample Coord inates • sample Field Logs • Sample Weight

Sieve/Sort/Prewash Typical sieve sizes

• # 12 • ' 20

l

L Tyler Mesh:

• #40 --,0'-"-'-1----#70 _

Second Wash wash each fraction In a pan

using soap and water

Drying L ___ '2.rv each fractio::.:" ____ -"

IHeavy Liquid Separation mineral grains heavier than 2.85 g/ml are

! separated from ligllter mineraI grains

II Observation and Picking

Heavy graIns are observed using t-- binocular microscope

Material Handling Prior to Analysis

analysIs

I Evaluation Picked Grains

Heavy grains identlfled as Kimberlite I ndicator Minerals are placed In

numbered vials

I Heavy grains identified as Kimberlite r-----i Indicator Minerals are evaluated I based on :

I Sample deemed worthy oT' r----i~E~ and Electron microprob~_ ,

Remaining mineral grains

Heavy grains consisting of other mineral types

(not identlned as possible 1(,1.M,S) are placed In numbered vIals

I Storage of unselected minerals i no analysis available

for unselected minerals

I

Sample deemed unworthy of SEM and Electron microprobe

!storage of unworthy KIM ~

no analysIs available for unworthy KIMs

Worthy KIM grains are sent to a certified analytical lab

Appendix V Field Notations

("

Sample # KC- IS"'f

date: ~£ :s/OS I

Location: (Nad 83, UTM, Zone 17)

North ing : _--=-5~1..:::;;.'5~.5...::.3....!.../...::.l--=:..'4-----_

Easti ng : __ --.:5~+-=2~1L-4..!..!S~O'--------

Location: (Local grid reference)

N/A Sampling method: he&.P Sc.~".,Sr"f~

Depth: ___ ---___ --------

Comments: <'I?- -rv ... £(" Me-Sri r3A6.E.O I .....

I='.I!I..O •

Sample # ---------------name :, __________ date :. ____ _

project: _________________ _

Location: (Nad 83, UTM, Zone 17)

Northing: ------------Easting : _____________ _

Location: (Loca I g rid reference)

Sampling method: ----------Depth: ___________________ __

Comments:

Sample # ------------name: _______ date:, ____ _

project: __________ _

Location: (Nad 83, UTM, Zone 17)

Northing: -----------Easting : __________ _

Location: (Local grid reference)

Sampling method_: ______ _

Depth: ___________________ _

Comments:

Sample # ---------------------name:, ________ date:, ___ _

project: ___________________ _

Location: (Nad 83, UTM, Zone 17)

Northing: -----------Easting: ----------------

Location: (Local grid reference)

Sampling method: -----------Depth: _______________ _

Comments:

18

True North Mineral Laboratories Inc. ~t"t"""";!::,, VI

~·iVJ'I;;"". Toistoi PiVtJCHY

c~ .• Client: Canada CorjJVIOLlVI

Sampl~ locations· tJAnSl't UTM, Zone 17 calculated based on cut g'i!l..locations i :

I I UTM NAnR~ Zone 17 UTM NADFt1 Zone 17

Sample No. Local Grid Easting I Local Grid Northing .. .... L Easting '''VI''IIII~ i i

KC-197 5,353,114 542,450 i I

.-~~ ... ~"".--

i

i

._ .. -_._._---

! ..... -.

i ! _. __ •... --

i I i

!

i ._.-...

I

i

I I ! i

Appendix VII

Microprobe

Analysis

Details

2,0

Customer: FA48 Probe Batch: Corrment:

Sample Name

221 221 221 221 221 221 221 221 221

\)

PY05FA48003163

Fraction Mount

NO fRAC. 4756 NO FRAC. 4756 NO FRAC. 4756 NO FRAC. 4756 NO FRAC. 4756 NO FRAC. 4756 NO FRAC. 4756 NO FRAC. 4756 NO FRAC. 4756

ELECTRON MICROPROBE ANALYSIS FROM C.F. MINERAL RESEARCH LTD. Certificate #: PY05FA48003163

~=~ Classifications ======= Cel Grn SA CFM D[ Si02 Ti02 Al203 v203 Cr203 Fe203 FeO MgO CaO

401 **

402 ** 405 **

408 * ..

410 **

501 ** 502 **

503 ** 505 **

Page:

MnO HiO

3-May-2007 11:20 am File: PY3163.PRN

Max Trace

ZnO Nb205 Na20 Ha20 K20 Total

Customer: FA48 ELECTRON M[CROPROBE ANALYSIS FROM C.F. MINERAL RESEARCH L TO. 3-May-2007 11: 20 am Probe Batch: Certificate #: P~05FA48003163 File: P1I3163.PRN COf1lTlent: PII05FA48003163

Max Sample Classifications ======= Trace Name Fraction Mount eel Grn SA CFM 01 Si02 Ti02 Al203 V203 CrZ03 Fe203 FeO MgO CaO MnO NiO znO Nb205 Ha20 Na20 K20 Total

... ~ - - - -

221 NO FRAC. 4756 506 ** 221 NO FRAC. 4756 507 ** 221 NO FRAC'. 4756 508 ** 221 NO FRAe. 4756 509 ** 221 NO FRAe. 4756 510 ** 221 NO FRAC. 4756 511 ** 221 NO FRAC. 4756 512 ** 221 NO FRAC. 4756 601 ** 221 NO FRAe. 4756 406 AMPH 49.29 .14 9.55 .03 16.37 19.22 .67 .34 .03 1.24 .00 96.88# 221 NO FRAC. 4756 407 OPX 53.89 .02 .99 .13 16.47 26.37 .27 .49 .18 .01 .00 98.81 221 NO FRAC. 4756 409 CE CPX 52.07 .11 5.00 .30 7.00 18.06 12.47 .18 .05 .77 .23 96.25# 221 NO FRAC. 4756 602 E GT G2 37.37 1.82 24.7S .00 9.0S .12 23.59 .19 .05 .012 .02 97.01# 221 NO fRAC. 4756 403 R ALM 37.79 .01 22.01 .06 30.62 7.48 1.07 .69 .02 .01 .00 99.76 221 NO fRAC. 4756 404 R AlM 37.36 .02 22.03 .09 31.55 6.54 1.15 LOS .02 .01 .01 99.S5 221 NO FRAC. 4756 504 R ALM 3S.09 .00 22.24 .01 30.06 8.49 .84 .42 .02 .02 .00 100.18

C.F. MINERAL RESEARCH LIMITED 1677 POWICK ROAD

KELOWNA, BRITlSH COLUMBIA CANADA V1 X 4L 1

Client: True North Mineral Laboratories 475 Railway Street Timmons, Ont. P4N 2P3

CERTIFICATE PW05FA48003163

This certificate refers to a report of 78 full electron microprobe analyses (and

TEL (250) 860-8525 FAX (250) 862-9435

associated work) carried out within C.F. Mineral Research batches 05-2890(12). The report was completed on the 21 June 2005.

All results apply to samples/fractions/grains as submitted and are considered to be the confidential property of the Client and supersede any preliminary report with this certificate number.

The certificate gives Kevin Cool (the Client representative) full access to all cited results.

1\

Signed by: \'\ . E , ~ ~~~ "-.: ~~ Dr. M.E. Whitehead

Date: 4 May 2007

Microprobe

Analysis

Classifications

MINERAL

1 ACTN

2 ACTN*

3 AEG-AUGT

4 AEGR

5 AKER

6 AL-Si

7 ALBT

8 ALM

9 ALM-Mn

10 ALM-Mn-Di

11 ALM-Mn*

12 AMPH

13 AMPH-AI

14 ANAL

15 ANDR

16 ANDR-Mn

17 ANDR-Ti-Mn

18 ANKR

19 APAT

20 APAT*

21 APAT-WILK

22 APOP

23 ARFV

24 ARFV-K

25 ARMA

26 ASTR

27 AUGT

28 AUGT-Ti

29 BADL

30 BARK

31 BART

PRBCODE3

PROBE CLASSIFICATION DESCRIPTIONS

DESCRIPTION eEM-CONFIDENTIAL

Actinolite

Actinolite with composition characteristic of skarn or massive sulfide deposits

Aegirine-Augite

Aegirine

Akermanite

Aluminum-Silicate

Albite

Almandine

Almandine with high manganese

Almandine with high manganese with diamond inclusion composition

Almandine (high manganese) with composition characteristic of skarn or massive sulfide deposits

Amphibole

Aluminum-Amphibole

Analcime

Andradite

Andradite with high manganese

Andradite with high titanium and manganese

Ankerite

Apatite

Apatite with composition characteristic of skarn or massive sulfide deposits

Apatite, Wilkeite Series

Apophyllite

ArfVedsonite

Potassium Arfvedsonite

Armalcolite

Astrophyllite Series

Augite

Augite with high titanium

Baddeleyite

Barkevikite

Barite

lof9 C.F. MINERAL RESEARCH LTD.

2.5

MINERAL

32 BART-Si

33 BART-Sr

34 BARY

35 BlOT

36 BIOT-Ti

37 BIOT*

38 BUST

39 CALC

40 CANC

41 CD

42 CDRT

43 CE

44 CE*

45 CELS

46 CHLORT

47 CHLRTD

48 CORO

49 CORU

50 CP

51 CP*

52 CP1

53 CP2

54 CP3

55 CP4

56 CP5

57 CP6

58 CP7

59 CP8

60 CP9

61 CPlO

62 CPX

63 CP DI

64 CP DI$

PRBCODE3

DESCRIPTION

Silica-Barite

Strontium Barite

Barytocalcite

Biotite

Biotite with high titanium

CFM·CQNfIPENTIAL

Biotite with composition characteristic of skarn or massive sulfide deposits

Bustamite

Calcite

Cancrinite

Chrome Diopside

Cordierite

Eclogitic Clinopyroxene

High pressure Clinopyroxene of ec10gitic paragenesis

Celestite

Chlorite

Chloritoid

Coronadite

Corundum

Peridotitic Clinopyroxene

High pressure Clinopyroxene of peridotitic paragenesis

Clinopyroxene - Dawson's (modified by CFM) group 1

Clinopyroxene - Dawson's (modified by CFM) group 2

Clinopyroxene - Dawson's (modified by CFM) group 3

Clinopyroxene - Dawson's (modified by CFM) group 4

Clinopyroxene - Dawson's (modified by CFM) group 5

Clinopyroxene - Dawson's (modified by CFM) group 6

Clinopyroxene - Dawson's (modified by CFM) group 7

Clinopyroxene - Dawson's (modified by CFM) group 8

Clinopyroxene - Dawson's (modified by CFM) group 9

Clinopyroxene - Dawson's (modified by CFM) group 10

Clinopyroxene

Clinopyroxene with diamond inclusion composition

Clinopyroxene with diamond inclusion composition which forms with large diamond

2of9 C.F.M1NERAL RESEARCH LTD.

MINERAL 65 CPDIO

66 CP DISO

67 CP DI*

68 CP DI$*

69 CPDIO*

70 CPDI$O*

71 CR

72 CR·Ca

73 CR-Si

74 CRDI

75 CRDI*

76 CR Ti

77 CRMlC

78 CRK

79 CRL

80 CRU

81 CRG

82 CRIC

83 CUMN

84 CUMN-Na

85 CV

86 DIOP

87 DOLM

88 E

89 ECKR

90 ENST

91 ENST-L

92 EPID

PRBCODE3

DESCRIPTION CFM-CONFIDENTIAI

Clinopyroxene with diamond inclusion composition that overlaps with compositions of Clinopyroxenes that classifY from non diamond inclusion sources

Clinopyroxene with diamond inclusion composition which forms with large diamond that overlaps with compositions of Clinopyroxenes that classify from non diamond inclusion sources

Favorable high pressure Clinopyroxene with diamond inclusion composition

Favorable high pressure Clinopyroxene with diamond inclusion composition which forms with large diamond

High pressure Clinopyroxene with diamond inclusion composition that overlaps with compositions of Clinopyroxenes that classifY from non diamond inclusion sources

High pressure Clinopyroxene with diamond inclusion composition which form with large diamond that overlaps with compositions ofClinopyroxenes that classifY from non diamond inclusion sources

Chromite

Chromite with high calcium

Chromite with high silicon

Chromite with major element diamond inclusion composition

Diamond inclusion Chromite from favorable harzburgite source

Chromite with high titanium (magmatic)

Mars/Cart classification of rack type provenance of chromites

Classified by Mars/Cart as being from Kimberlite sources

Classified by Mars/Cart as being from Lamproite sources

Classified by Mars/Cart as being from Ultramafic sources

Classified by Mars/Cart as being from Greenstone sources

Crichtonite

Cummingtonite

Cummingtonite with high sodium

Volcanic Clinopyroxene

Diopside

Dolomite

Eclogitic Garnet

Eckermarmite

Enstatite

Lamproitic Enstatite

Epidote - Clinozoisite

30f9 C.F.MINERAL RESEARCH LTD.

MINERAL

93 EPID*

94 FLSP

95 FLSP-Ba

96 G 1

97 G2

98 G3

99 G4

100 G 5

101G6

102 G7

103 G 8-Grosp

104 G 8-GrospD

105 G9

106G11

107 G12

108 G10

109 G1O-lO*

110 GlO-9*

111 G1O-8

112 G1O-7*

113 G1O-6

114 G1O-5*

115 GI0-4

116 G1O-3*

117 G1O-2

lI8 G11-1

lI9 G 9-1

120 G1O-0

*

Note:

PRBCODE3

DESCRIPTION CFM-CONEIDENTIAL

Epidote with composition characteristic of skarn or massive sulfide deposits

Feldspar

Feldspar with high barium

CFM modification after Dawson's group 1

CFM modification after Dawson's group 2

CFM modification after Dawson's group 3

CFM modification after Dawson's group 4

CFM modification after Dawson's group 5

CFM modification after Dawson's group 6

CFM modification after Dawson's group 7

CFM modification after Dawson's group 8 (Grospydite)

CFM modification after Dawson's group 8 (Grospydite with diamond inclusion composition)

CFM modification after Dawson's group 9

CFM modification after Dawson's group 11

CFM modification after Dawson's group 12

Gurney group 10 Pyrope

Gurney (Best) 10 score category ofGI0 garnet

Gurney 9 score category ofGI0 garnet

Gurney 8 score category of G 1 0 garnet

Gurney 7 score category ofGlO garnet

Gurney 6 score category of GI0 garnet

Gurney 5 score category of G 1 0 garnet

Gurney 4 score category of G 1 0 garnet

Gurney 3 score category of G 1 0 garnet

Gurney (Least) 2 score category ofGlO garnet

Gurney 1 score category of G 11 garnet

Gurney 1 score category of G 9 garnet

Score category ofGI0 garnet with non diamond inclusion composition

Within the diamond stability region indicated by the granite-diamond constraint ofR.S. Gruther and R.J. Sweeney (2000), Ext. Abstract GACIMAC Annual Joint Meeting, CD­ROM, GeoCanada 2000

Gurney scores (after J. Lee, 1993 PDAC meeting Toronto, Ont. pg.213-234), upgraded by CFM, has been demonstrated to be related to diamond grades of source kimberlites. An average pyrope score of 5, for example, implies a grade estimate of about 7 caratsll00 tonnes attributable to garnet harzburgite.

40f9 C.F.M1NERAL RESEARCH LTD.

MINERAL

121 G1*

122 G1

123 G2

124 .J ..

125 GAHN

126 GLAS

127 GROS

128 GROS-ANDR

129 GROS-Mn

130 GT

131 GT-Mn

132 GT-Zr-Ti

133 HEDN

134 HOLN

135 HORN

136 HUMI

137IL

138 IL-Ca

139IL-Mn

140 KAER

141 KALS

142 KAOL

143 KNEB

144 KUTN

145 KYAN

146 LEUC

147 LEUC-L

148 LPM

PRBCODE3

DESCRIPTION CFM-CONFIDENTlAL

Best group 1 eclogitic Garnet (classifies in every diamond inclusion field)

Group 1 eclogitic Garnet (classifies mostly in diamond inclusion fields and subordinate diamond inclusion overlap fields)

Group 2 Garnet from non diamond bearing or regional eclogite sources

Overlap fields; first field (before the I) is the most probable classification, second field (after the I) is the less probable yet possible classification for example, the classification GIILPM would indicate that the grain is most probably a group 1 eclogitic garnet but may be, although less likely, a low pressure megacrystic eclogitic garnet

Gahnite

Glass

Grossular

Grossular-Andradite

Grossular with high manganese

general Gamet

Garnet with high manganese

zirconium-titanium Garnet

Hedenbergite

Hollandite

Hornblende

Humite Group

Ilmenite - regional

Ilmenite with high calcium

Ilmenite with high manganese

Kaersutite

Kalsilite

Kaolinite

Knebelite

Kutnohorite

Kyanite/ Andalusite/Sillimanite

Leucite

Lamproitic Leucite

Low pressure megacrystic eclogitic garnet (usually from kimberlite sources)

50f9 C.F.MINERAL RESEARCH LTD.

2.9

MINERAL

149 HPM

150 MAGN

151 MAGN-Ti

152 MAGNS

153 MAJT-Di

154 MARG

155 MELA

156 MEL!

157 MONT

158 NEPH

159 NEPT

160 NOSN

161 OLV

162 OLV-FORS

1630LV-FAY

164 OLV-FAY*

165 OLV-FAY-Mn

1660LVDI

1670LVDI$

1680LVDIO

1690LVDIO$

170 OPI

171 OP2

172 OP3

173 OP4

174 OP5

175 OPX

1760PXDI

PRBCODE3

DESCRlPTION CFM-CONFIDENIIAL

High pressure megacrystic ec10gitic garnet (diamond indicator mineral from kimberlite and lamproite)

Magnetite

Magnetite with high titanium

Magnesite

Majorite with diamond inclusion composition

Margarite

Melanite

Melilite

Monticellite

Nepheline

Neptunite

Nosean-Hauyne

Olivine

Olivine Forsterite

Olivine Fayalite

Olivine Fayalite with composition characteristic of skarn or massive sulfide deposits

Olivine Fayalite with high manganese

Olivine with diamond inclusion composition

Olivine with diamond inclusion composition which forms with large diamond

Olivine with diamond inclusion composition that overlaps with composition of olivine from non-diamondiforous sources

Olivine with diamond inclusion composition which forms with large diamond that overlaps with composition of olivine from non-diamondiforous sources

Orthopyroxene - Dawson's (modified by CFM to classifY all orthopyroxenes included in diamond) group 1

Orthopyroxene - Dawson's (modified by CFM to classifY all orthopyroxenes included in diamond) group 2

Orthopyroxene - Dawson's (modified by CFM to classifY all orthopyroxenes included in diamond) group 3

Orthopyroxene - Dawson's (modified by CFM to classifY all orthopyroxenes included in diamond) group 4

Orthopyroxene - Dawson's (modified by CFM to classifY all orthopyroxenes included in diamond) group 5

Orthopyroxene

Orthopyroxene with diamond inclusion composition

60f9 C.F.M1NERAL RESEARCH LTD.

MINERAL DESCRIPTION CFM-CONflPENTIAI

1770PX-ENS Enstatite

1780PX-HY Hypersthene

1790RTHCL Orthoclase

180 P Peridotitic Garnet

181 PERC Periclase

182 PERC-Fe Periclase with high iron

183 PERV Perovskite

184 PHLG Phlogopite

185 PHLG-Ti Phlogopite with high titanium

186 PIEM Piemontite

187 PIL Picroilmenite

188 PLAG Plagioclase

189 PLEU Pseudoleucite

190 PREH Prehnite

191 PRID Priderite

192 PSBK Pseudobrookite

193 PSBK-Fe Pseudobrookite with high iron

194 PYRL Pyrolusite

195 PYROPH Pyrophanite

196 PYROX Pyroxmangite

197 PYRP Pyrope

198 PYRP-Mn Pyrope with high Manganese

199 QRTZ Quartz

200 QRTZ-IMP Impure Quartz

201 R Regional Garnet

202 RHOD Rhodonite

203 RICT Richterite

204 RICT-K K-Richterite

205 RIEB Riebeckite

206 RIEB-K Riebeckite with high potassium

207 RUTL Rutile

208 RUTL-Nb Rutile with high niobium

209 RUTL-Si Rutile with high silicon

210 SALT Salite

PRBCODE3 7of9 C.F.MINERAL RESEARCH LTD.

31

MINERAL

211 SAND

212 SAND-L

213 SAPH

214 SERP

215 SHCH

216 SrDR

217 Si-Zr

218 SODL

219 SPES

220 SPES*

221 SPHN

222 SPNL

223 SPNL-Si-AI

224 SPNL-Zn

225 STAU

226 STRN

227 TALC

228 TEPH

229 TOPZ

230 Tour-D*

231 Tour-D

232 Tour-R*

233 Tour-R

234 Tourmalin

235 TREM

236 UNOI

237 UN02

238 UN03

239 UN04

240 UN05

241 UN06

242 UN07

243 UN08

PRBCODE3

DESCRIPTION

Sanidine

Lamproitic Sanidine

Sapphirine

Serpentine

Shcherbakovite

Siderite

Silica-Zircon

Sodalite

Spessartine

Spessartine of Broken Hill Mine composition

Sphene

Spinel

Silicon-aluminum Spinel

Spinel with high zinc

Staurolite

Strontianite

Talc

Tephroite

Topaz

CFM-CONFIDENIIAI.

Round brown dravitic tounnaline of composition and morphology consistent with being pseudomorph after jadeitic diopside from group 1 (diamond bearing) eclogite

Round brown dravitic tourmaline from group 2 (non diamond bearing) eclogite

Tourmaline (regional) with elevated K20-Ti02 composition

Tourmaline with composition and morphology equivalent to regional tourmaline

Tourmaline with no B203 analysis

Tremolite

Calcium-titanium Silicate (Ca-Ti Silicate)

Potassium-titanium-silicon Shcherbakovite like (K-Ti-Si Shcherbakovite like)

Manganese-titanium-silicon (Mn-Ti-Si)

Titanium silicate altered Sphene

Chromium-iron-silicon-magnesium-aluminum silicon altered chrome spinel (Ca-Fe-Si­Mg-AI silicon altered chrome spinel)

Siliceous Titanites

Calcium-magnesium-iron-siHcon silicon Carbonate (Ca-Mg-Fe-Si silicon Carbonate)

Sodium-iron-silicon (Na-Fe-Si)

8of9 C.F.MINERAL RESEARCH LTD.

MINERAL

244 UN09

245 UNlO

246 UNI1

247 UN12

248 UN13

249 UNI4

250 UN16

251 UN21

252 UN24

253 UVAR

254 UVAR-DI

255 WAD

256 WADT

257 WILK

258 WILM

259 WOLA

260 ZOIS

PRBCODE3

DESCRIPTION

Silicon Corundum

CFM-cQNfIDENTIAL

Calcium-titanium-iron silicate altered Sphene (Ca-Ti-Fe silicate altered Sphene)

Iron-titanium-zirconium Silicate (Fe-Ti-Zr Silicate)

Tungsten-niobium-titanium-iron Oxide (W-Nb-Ti-Fe Oxide)

Niobium-titanium-iron-silicon (Nb-Ti-Fe-Si)

Iron-magnesium-aluminum-silicon (Fe-Mg-AI-Si)

Sodium-aluminum-silicon (Na-AI-Si)

Magnesium-calcium-titanium Oxide (Mg-Ca-Ti Oxide)

Calcium-aluminum-silicon (Ca-AI-Si)

Uvarovite

Uvarovite with diamond inclusion composition

Wad

Wadeite

Wilkeite

Willemite

Wollastonite

Zoisite

90f9 C.F.MINERAL RESEARCH LTD.

33

Author: Kevin Cool Report Completion Date: May 31,2007.

Qualifications and Experience

1982 Graduated from Timmins High and Vocational School

1983 Studied photography at Humber College, Toronto

1984 to 1988 Worked for family owned transportation business in Moosonee, ON

1988 to 1992 Studied Survey at Northern College, South Porcupine, ON

1992 Graduated with Survey Engineering Technician Diploma

1992 to 2001 Owned and operated General Surveys and Exploration based out of Timmins, ON. This small company provided contract survey services as well as computer drafting and exploration/mining information and data handling. Software includes Acad computer drafting, Gemcom, Surpac with specialization in using computers for the mining and exploration industry. Survey work included volumetric surveys of land areas for use as tailing basins where 3D models were utilized. Diamond drill hole surveys, underground engineering surveys and mechanical design construction surveys were common contracts for numerous mining and exploration companies including: DeBeers Canada Exploration (then Monopros), SouthernEra Resources Dome Exploration, Placer Dome Detour Lake and Dome Mines, Exall Glimmer Mine, Claude Rundle Gold Mine, TVX Mines projects in Northern Greece, Moneta Porcupine Mines, Black Pearl Mines, St. Andrews Goldfields, Battle Mountain Gold, Pentland Firth, Kinross Gold, Band-Ore Resources, McKinnon Prospecting and many other companies and individual prospectors.

2000 to 2005 Began collaborative work with Brian K Polk of Polk Geological Services in Timmins, ON that lead to the formation of a private exploration company called Big Red Diamond Company. This small company began to stake property in the Attawapiskat region of Ontario as well as the Coral Rapids area. Eventually the survey business was put aside to focus full time on diamond exploration.

Big Red Diamond Company entered into a Joint Venture with a private company owned 100% by Dr. Charles Fipke of Kelowona, B.C. on a large group of properties near DeBeer's Victor Pipe in the Attawapiskat region. Dr. Fipke is the renowned geologist who found Canada's first diamond mine, the Etaki Mine in Northwest Territories. Since 2001 the author has been exposed to all aspects of diamond exploration including staking and field work, camp construction and field work management and administration, airborne and ground based magnetometer surveys, planning and management of large scale geophysical survey programs,

planning, management and interpretation of large scale regional, as well as, Property scale Sampling programs. Exposure to the entire sampling process was gained including training and field work experience under the discretion of Dr. Fipke. Introduction to kimberlite mineral identification from Dr. Fipke was expanded by personal research and study by the author which continues to current, which has resulted in the privately owned mineral processing laboratory in Timmins, ON. Advanced analysis of materials or minerals processed in the lab, beyond the stage of Heavy Mineral Separation and the observation of mineral concentrates using binocular microscope are handled by other certified analytical laboratories, such as CF Minera/s, in Kelowona, B.C.

2002 Big Red Diamond Company became a publicly traded corporation and was renamed Big Red Diamond Corporation. The author is one of the co­founders of the publicly traded corporation, which trades on the TSX Venture Exchange under the symbol DIA

Currently the author continues to actively stake mining claims and process sample material for several active companies, both private and public.

2005 to Present Established True North Mineral Laboratories at 475 Railway Street, Timmins, ON. Became ActLabs-Timmins in early 2006. Laboratory processes, equipment setup and procedures are now supervised by ActLabs, based in Ancaster, Ontario. The management and employees of True North Minerals receive ongoing support and training directly from ActLabs and the laboratory processes fall under ActLabs certification providing that analysis is carried out by the main facility in Ancaster. In this capacity, True North Mineral Laboratories acts as a preparation facility for ActLabs and is qualified to handle material preparation prior to direct Analysis by ActLabs. The author of this report is the sole director and officer of the corporation (True North Mineral Laboratories-ActLabs­Timmins)

'35

ID: JUN 03'U( 11 :~<:I r'l( .UL': !-' .U:':;

6398651 CANADA INC 67 Jaban Street

Moose Factory, ON POL lWO

Phone: (70S) 266 0594 Fax: (705) 336 1966

Ministry of Northern Development and Mines Willet Green Miller Centre 933 Ramsey lake road 3fd Floor Sudbury, Ontario P3E 685

Re: Agen. letter

To Whom It May Concern,

May 31. 200~.

This letter ;s 10 confirm that Mr. Kevin S. Cool is authorized as an acting agen' , on behalf of 6398651 Canada Inc. Permission is given for filing documentation with the Ministry of Northern Development and Mines of Ontario.

William Small