BY C.D. HUSTON, P.ENG. MARCH 28,1999

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1 INTRODUCTION; 52N04SE BALMER J.R. GREEN PROPERTY WORK REPORT BALMER TOWNSHIP CLAIMS RED LAKE MINING DIVISION, ONTARIO BY C.D. HUSTON, P.ENG. MARCH 28,1999 THE PROPERTY IS COMPOSED OF THREE MINING CLAIMS NUMBERED KRL (5 UNITS) ; (2 UNITS); (6 UNITS) THEY ARE LOCATED IN BALMER TOWNSHIP, RED LAKE MINING DIVISION, ONTARIO A COPY OF AN ABSTRACT OF THESE CLAIMS IS ATTACHED WHICH SHOWS PREVIOUSLY COMPLETED WORK. THIS PRESENT WORK CONSISTS OF STRIPPING BY D6 TRACTOR OF OVERBURDEN IN AN ATTEMPT TO TRACE PROJECTED MINERAL OCCURANCES. THIS TRACTOR WORK WAS DONE UNDER CONTRACT BY ESKER LOGGING LIMITED OF THE TOWN OF RED LAKE AND WAS COMPLETED ON AUGUST 29 AND 30,1998. THE WORK WAS SUPERVISED BY THE AUTHOR OF THIS REPORT. PREVIOUS WORK CONSISTED OF AN IP GEOPHYSICAL SURVEY AN EM 16 ELECTOMAGNETIC SURVEY AND A MAGNETOMETER SURVEY AND HAS BEEN SUBMITTED FOR ASSESSMENT WORK CREDITS. RESULTS OF PRESENT WORK: ESSENTIALLY THE PROPERTY IS ALMOST COMPLETELY OVERBURDEN COVERED BEING SAND AND GRAVEL AND SWAMP. THE FEW OUTCROPS OBSERVED WERE SEEN TO BE COMPOSED OF MAFIC VOLCANIC ROCKS WITH MINOR PYRITE MINERALIZATION. ENLARGING ON THESE OUTCROP AREAS WITH THIS BULLDOZER WORK WAS DONE WITH THE VIEW TO FINDING ECONOMIC CONCENTRATIONS OF GOLD. THE FORMATIONS SEEN WERE ALL OF VERY WEAK TO NO MINERALIZATION AND NO MAJOR SHEARING OR GEOLOGICAL FORMATIONS WERE UNCOVERED BY THIS WORK. CONCLUSIONS: THE PRESENT WORK DID NOT ENCOUNTER ANY SIGNIFICANT.19400

2 MINERALIZATION AND NO SAMPLES WERE TAKEN. THE PREVIOUS GEOPHYSICAL WORK HAS INDICATED SOME WEAK CONDUCTIVE ZONES THAT TO EXPLORE FURTHER WOULD REQUIRE DIAMOND DRILLING. RESPECTFULLY SUBMITTED, C.D. HUSTON, P.ENG. MARCH 28,1999

3 MNDM - MINING CLAIM MAP HTTP^/WVyWMNDM.GOV.ON.CAAYlN-CGI/CLAIMSMAPCGl.DU. v * Ontario Ministry of Northern Development and Mines Mines and Minerals Division G BALMER - RED LAKE Division Zoom Tools Adjacent Map Order Hard Download Full Copy Map hefe. Scale image q dp Back l Main Manu Ontario This site maintained by the Government of Ontario Comments and feedback to: 5tgvebeneteanfSindni.gov.on.ea Copyright 1998 Queen's Printer for Ontario This information is provided as a public service, but we cannot guarantee that the information is current or accurate. Readers should verify the information before acting on it. 1 OF 03/22/09 O2:53:O2

4 I, JOHN ARTHUR GRfiEN, RED LAKE, ONTARIO DO HEREBY APPOINT MR. CARL D. HUSTON, RED LAKE, ONTARIO, TO ACT AS MY AGENT IN REGARD TO MINING CLAIMS KRL LOCATED IN BALMER TOWNSHIP, RED LAKE MINING DIVISION, ONTARIO DATED AT RED LAKE, ONTARIO THIS 19TH DAY OF OCTOBER, 1998 J.A, GREEN RECEIVED APR O 1 E33 GEOSCIENCE ASSESSMENT OFFICE_

5 MINISTRY OF MINES CHIEF MINING RECORDER 6TH FLOOR 933 RAMSEY LAKE ROAD SUDBURY. ONT. P3E 6B5. DEAR SIRS; C.D. HUSTON f P.ENG. BOX 1003, RED LAKE, ONTARIO, POV 2MO PHONE FAX chuston@red-lake.lakeheadu.ca March 2/t 1999 RE; ASSESSMENT WORK SUBMISSION-J GREEN CLAIMS NUMBER KRL , , , BALMER TWP., RED LAKE MINING DIVISION, ONT. "TRACTOR STRIPPING OF OVERBURDEN" PLEASE FIND ENCLOSED THE FOLLOWING:- 1. COMPLETED DECLARATION OF ASSESSMENT WORK FORM COMPLETED STATEMENT OF COSTS FORM DUPLICATE COPY OF REPORT OF WORK 4. LETTER AUTHORIZATION RE AGENT. 5. RECEIPT FROM ESKER LOGGING RE WORK PERFORMED. YOURS TRULY CARL D. HUSTON March 28, 1999

6 Ministry ol Northern Development Declaration of Assessment Work Performed on Mining Land Mining Act, Subnotion 85(2) md 88(3), H.S.p. 1BfQ. Transaction Number (office us*l Assessment Files Research Imaging Personal Information collected on l his form n obtained under the authonty of subsections 65(2) and 8fl(3) of the Mining. Act, Under,section. 6" of the Mining Act, the information is s public record. This Information will be used lo review the assessment work and correspond.with the mining land holder! Questions about this collection should be directed to the Chief Mining Recorder, Ministry of Northern Development and Mines, 6th Floor, 933 Ramsay Lake Road, Sudbury, Ontario, P3E 6B5 Instructions: - For work performed on Crown Lands before recording a claim, use form Please type or print in Ink. 1. Recorded holder(s) (Attach a lisjj Same Address Name Address -^. Web Client Number!Helephone*Numb Fax Number Client Number alephone Number 7*7- Fax Number 2, Type of work performed!- Check ( ^ ) and report on^ojly ONE of the following groups for this declaration; D Dstss work Performed Geotechnical: prospecting, surveys,. assays and work under section 18 (regs) ^/Physical: drilling, stripping, *3 trenching tranehina and associated assays assm/a i i Raha hiiitatinn l l "Bnaonuaiion Office Use. _ From ML MoSi 'fai global Positioning System Data (If available) or Jb, 0 98 Pty i MonUl l YMf Commodity Total S Value of Work Claimed NTS'Refsrence ; Mining Division Resident Geologist ' Please remember to: - obtain a work permit from the Ministry of Natural Resources as required; - provide proper notite To Surface rights holders before starting work; - complete and attach a Statement of Costs, form 0212; - provide a map showing contiguous mining lands that are linked for assigning work; t, - include two copies of waur technical report ~ 3. Person or companies who prepared the technical report (Attach a list-if necessary) Rai Name Address Name Address Telephone Number Fax Numbsr Teliohone Number Fax Number 4. Certification by Recorded Holder r* Agent, do hereby certify that J havs personal knowrl^ge'bffhe facts set forth in this Declaration of Assessment Work having caused (he work tp be performed or witnessed-'the1 sarn* ;daflri j or after l^'comps^ia^is^^^'^^^p?^^o^^9^^m annexed repon \s ime (02/n) reiepnone Number 9/7 ztr- us*

7 S. Work to be recorded and distributed. Work can only be assigned (o claims that are contiguous (adjoining) to the miring land where work was perto'rrrmfl, at tnetlme work was performed. A map showing the contiguous link must accompany this form. ;, -. :...-"-- - ' :.;. : " : ', 'Mining Claim Number. Or If vwfk vraa done-sfrolher eligible " mining land, show In this column We iocktfen number IntJIeW'ed on th'e slalrn riigfe: J ' ' ' NumberoffStiitF Units. For other mining land, list 'n*cthrtif.v ' ';' L 'Vilue of work performed on this claim or other mining land. Velu* of work epphed to this claim. Value of work eeeigned to other mining ctalma. Bank. Value of work to be distributed it a future data. ag TB ha S26, 825 N/A S24,000 S2,B25! eg ,, S24,DOO - : '-' 0... O.'- -: eg \2fr.997tf 120^^7*! ito?w,\- v ^ C ^ --i 2 5". ^..^1i.-: A:.^ " ' ^'r ;,'v"" S 8, 892 t ^t8^*.^^ S 4,000 4*7.1.1* 4U.atV ^21. *r 0.r.... -, -, I/ -., i 34,892,cP- ' - 'f^- ' 0; -' B 9 TO 11 : "12 ' i -:~: "t^,^'", T^' i*;f : v..fy^ti.z&si 'athi/s^^i jr.. :.: ' -f"1 i? 14 : 1 5 ' ~- '..i Column Tol.lajft lv( ity ^ ft. fyr'#tfr t 4- f a, do hereby certify that the above work credits are eligible under (Print Fuji,Name) subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to the claim where the work was done. Slgnaturg of Recorded Holder or Agent Authorized n wnti 6. Instruction* for cutting back credit! that are not approved. Some of trrb^'cr^^lairri oijrrthjjr^*esratlon m*y be cut back: Please.eheclc d'tf^ in jh* ^^ boxes ^Blo -si f ^ ^.. - -*' - - "' " **--? --1-* * "^ * you wish to ^riorlt(w. he dslgtipp of^rgij^s: -,,,..,.'; ^..;T -. ' ^-/f T ^''.J "C -',-:. - D i. -Credits arvto be cutpaclc from the Bank first, followed by bp'tionvor 3 or'4-as- ndic D ^^Credits are to be cut back starting with the claims listed last, working backwards; or,fej 3. Credits are to be cut back equally over all claims listed in this declaration; or D 4. Credits are'to fie cutback as prioritized on the attached appendix or as follows (describe): how..,.. Note: If you have- not-indicated how-yourcrsdtts are to be deleted, credits will be cut back from tho. Bank fir^t,. followedbygpjion number2 if necessary....:.'-;^.',?i rf - 'f l ^5*fc; i'l-,,.-- : For Office M*e Only Received Stimp Deemed Approved Okie Approved for Recording by Mining Recorder (Signalure) Totil.Valus.ot.Qredlc^iIpntved '* "'"'.'v ""^ v;l --*-

8 Mining Lands - Mining Claims Abstract Summary Mining Lands - Mining Claims Summary Red Lake - Division 20 CLAIM NUMBER: Unit Size: Township/Area: Lot Description: Staker: Recorded Holder: Recording Date: Due Date: Work Required: Total Applied: Work Performed: Total Reserve: Present Work Assignment: Claim Bank: Claim Status: KRL (Click Claim Number for Details) 5 BALMER (G-3735) MORTSON SCOTT ALEXANDER (M20734) GREEN JOHN ARTHUR ( %> 1995-Oct Oct (D (Click Reserve for Details) O O ACTIVE l Back j Main Menu l Mining Lands Copyright 1998 Queen's Printer for Ontario This information is provided as a public service, but we cannot guarantee that the information is current or accurate. Readers should verify the information before acting on it. 1 Of 1 03/22/9915:35:44

9 Mining Lands - Mining Claims Abstract Summary Mining Lands - Mining Claims Summary Red Lake - Division 20 CLAIM NUMBER: Unit Size: Township/Area: Lot Description: Staker: Recorded Holder: Recording Date: Due Date: Work Required: Total Applied: Work Performed: Total Reserve: Present Work Assignment: Claim Bank: Claim Status: KRL (Click Claim Number for Details) 2 BALMER (G-3735) STEVENS MICHAEL ABRAHAM (E32462) GREEN JOHN ARTHUR ( S;) 1995-Oct Oct O (Click Reserve for Details) O o ACTIVE l Back j Main Menu l Mining Lands Copyright 1998 Queen's Printer for Ontario This information is provided as a public service, but we cannot guarantee that the information is current or accurate. Readers should verify the information before acting on it. Of1 03/22/99 15:36:53

10 Mining Lands - Mining Claims Abstract Summary http^/ Mining Lands - Mining Claims Summary Red Lake - Division 20 CLAIM NUMBER: Unit Size: Township/Area: Lot Description: Staker: Recorded Holder: Recording Date: Due Date: Wo rk Requ i red: Total Applied: Work Performed: Total Reserve: Present Work Assignment: Claim Bank: Claim Status: KRL (Click Claim Number for Details) 6 BALMER (G-3735) TENHUNEN SHAUN RANDAL (E33735) GREEN JOHN ARTHUR ( %) l995-oct-l Oct C) (Click Reserve for Details) 1958 O ACTIVE l Back j Main Menu l Mining Lands Copyright 1998 Queen's Printer for Ontario This information is provided as a public service, but we cannot guarantee that the information is current or accurate. Readers should verify the information before acting on it. Of1 03/22/99 15:37:30

11 ^ffgjjijg^gff?^ *ff ^ffigfr '.''.-,-- jrf^llj-/ l' ^^^kw^a' A.'^i' '. - ' "- '. ',' ;'' '-l' : ~' -\.. ' :--'":J-iii'Vp

12

13 Ontario Ministry of Northern Development and Mines Declaration of Assessment Work Performed on Mining Land Mining Act, Subsection 65(2) and 66(3), R.S.O Imaging sections 65(2) and 66(3) of the Mining Act. Under section 8 of the w the assessment work and correspond with the mining land holder, jrder, Ministry of Northern Development and Mines,.Jjtli, Floor, 52N04SE BALMER 900 Instructions: - For work performed on Crown Lands before recording a claim, u - Please type or print in ink. 1. Recorded holder(s) (Attach a list if necessary) Address Name Address Gf&eje. Client Number LWMA. Telephone Number Bo' Fax Number Client Number Telephone Number Fax Number 2. Type of work performed: Check ( y ) and report on ojjly ONE of the following groups for this declaration. ~ ~ ~~"~~ ~"^~~~ ~~" ~~~~~" "~~~.^ ^^.^ Geotechnical: prospecting, surveys, assays and work under section 18 (regs) Day Month Global Positioning System Data (if available) Township/Area M or G-Plan Number G- 373S~ : drilling, stripping, trenching and associated assays Day l Month Yaaf Commodity Total S Value of Work Claimed NTS Reference Mining Division Resident Geologist District Office Use Please remember to: - obtain a work permit from the Ministry of Natural Resources as required; - provide proper notice to surface rights holders before starting work; - complete and attach a Statement of Costs, form 0212; - provide a map showing contiguous mining lands that are linked for assigning work; - include two copies of your technical report. ^ Person or companies who prepared the technical report, (Attacn a list if necessary") Name Number Rehabilitation td Address Name Address RES We -[RECORDED- Telephone Number Fax Number Name Telephone Number APR U l TO Address Fax Number GEOSCIENCF ASSESSMENT 4. Certification by Recorded Holder or Agent (Print Name), do hereby certify that l have personal knowledge of the facts set forth in this Declaration of Assessment Work having caused.-the work to be performed or witnessed the same during or after its ""Tlf^'fli ^flfl tq^tfretsettstrri^nowledge, the.annexed report is true. Signature of Recorded Holder or Agent Agent's Address Telephone Number Ifryzsr* Erfja Fax Number

14 5. Work to be recorded and distributed. Work can only be assigned to claims that are contiguous (adjoining) to the mining land where work was performed, at the time work was performed. A map showing the contiguous link must accompany this form. Mining Claim Number. Or if work was done on other eligible mining land, show in this column the location number indicated on the claim map. Number of Claim Units. For other mining land, list hectares. Value of work performed on this claim or other mining land. Value of work applied to this claim. Value of work assigned to other mining claims. Bank. Value of work to be distributed at a future date. eg TB ha 526, 825 N/A 124,000 S2,825 eg S eg V20 997/9 \2^cj* *7^ \ to? " ^ f f S 8, 892 S 4,000 y ^ ^L Jf ^A e^lla^it f ^r ^^f jlr ^9^m 0 S4,892.^ ^ i RBCOfrlJ 14 1 APR "l "" Column Totals^ Ctat D. Vtaatti5. ^ rtittto T^f **.M, do hereby certify that the above work credits ara eligible under (Print Full Name) subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to the claim where the work was done. Signature pf Recorded Holder or Agent Authorized in Writii 6. Instructions for cutting back credits that are not approved. Some of the credits claimed in this declaration may be cut back. Please check ( s ) in the boxes below to show how you wish to prioritize the deletion of credits: D 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated. D J^Credits are to be cut back starting with the claims listed last, working backwards; or to~^^^^^ i^ 3. Credits are to be cut back equally over all claims listed in this declaration; or D 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe): Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 if necessary. For Office Use Only Received Stamp Deemed Approved Date Date Notification Sent Date Approved Total Value of Credit Approved Approved for Recording by Mining Recorder (Signature) 0241 (02/96)

15 ' Onti r o f*"'"' 1 '^- Wl 'k*' 'W,, 8 41,, lafthmlll* twmlll l* l ilimi*iwi*l'i'm" i M Mill'- BMIIIN t, iih' PHI/, lil "iwiirtin (If AlltllftlM C'lS ttzm line *(tnn wo /Xii iiirtinwi1 t! AilHim*^ O-Au VA1.UI 9' Allll!Hl*T i um Miir imr infl i HI.iinv/i y *k" -. jrt"1'^ - ""' ' iliiml 'n WU iiiliniat il mtl *KM^ 41 *iyi ii i tnl/if toffiiiiifl/kinfiiiiiiali MI mtfi, mi. l;*y^i ^f!ot'k'.''.1 o N/ny MfllfV, (An iffi iffli^n imiw/i KI H HiifmiAi* inr i^'i' win win tfliyrt* *MI IMIMIIM iiiiiimmi wi/i in ihi!m tuiffunynf Biiiifinn of wirh Utm

16 Ministry of Ministere du Ontario Northern Development Developpement du Nord and Mines et des Mines Geoscience Assessment Office 933 Ramsey Lake Road August 17, th Floor Sudbury, Ontario JOHN ARTHUR GREEN P3E6B5 P.O. BOX 248 Balmertown, Ontario Telephone: (888) POV-1CO Fax: (877) Visit our website at: Dear Sir or Madam: Submission Number: Subject: Transaction Number(s): Status W Approval After Notice We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK. If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form. Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary. If you have any questions regarding this correspondence, please contact Bruce Gates by at bruce.gates@ndm.gov.on.ca or by telephone at (705) Yours sincerely, ORIGINAL SIGNED BY Blair Kite Supervisor, Geoscience Assessment Office Mining Lands Section Correspondence ID: Copy for: Assessment Library

17 Work Report Assessment Results Submission Number: Date Correspondence Sent: August 17,1999 Assessor: Bruce Gates General Comment: Future submissions will require a map clearly showing the location of the area(s) stripped and indicate the depth of stripping, and show the nature of rocks and mineralization exposed. Transaction First Claim Number Number Township(s) l Area(s) Status Approval Date W BALMER Approval After Notice August 01, 1999 Section: 10 Physical PSTRIP Assessment work credit has been approved as outlined on the Declaration of Assessment Work Form accompanying this submission. Correspondence to: Resident Geologist Red Lake, ON Recorded Holder(s) and/or Agent(s): JOHN ARTHUR GREEN Balmertown, Ontario Assessment Files Library Sudbury, ON Page: 1 Correspondence ID: 14080

18 NOTES AREAS WITHDRAWN FROM DISPOSITION M.R.O. (vi IN f NG RIGHTS ONLY BATEMAN TWP. G 3741 FOREST ACTIVITY INFORMATION THIS TOWNSHIP/AREA FALLS WITHIN THE RED LAKE CROWN AND M/W BE aufljecttq FORESTRY THE M.N.R UNIT FORESTER FOR THIS AREA CAN BE CONTACTED AT: P,O BOX 6003 RED LAKE. ONTARIO PCW2MD (ftjt) LEGEND HIGHWAY AND ROUTE Ho OTHER ROADS S.R.O, M.&S. Dover ;ption. SURFA.CE RtGHTSONLY WINING ANDSUHFACe RtGHTS " ~" 71 TRAILS SURVEYED LINES: TOWNSHIPS, BASE LINES, ETC. LOTS, MINING CLAIMS. PARCELS, ETG-r Q-2/tt i f4 tm M* S IM69S UNSURVEYED LINES: LOT LINES PARCEL BOUNDARY - MINING CLAIMS, ETC. RAILWAY AND RIGHT OF WAY UTILITY LINES X NON-PERINNIAL STREAM ^ FLOODING OR FLOODING RIGHTS -x SUBDIVISION ORIGINAL SHORELINE MARSH OR MUSKEG MINES t- p/ Tt DISPOSITiON OF CH3WN L/-NDS J234OI4 TYPE OF DOCUMENT SYMBOL 00 ro EL f- LtJ S O g \ F3p*2:'' ' ', 3S54SS j KK P"^^l J S68485 f207*4 T^fr-W Z.I PATENT SURFACE S, MINING RIGHTS ", SU RFAC E RI G HTS ON L Y ".MINING RIGHTS ONLY LEASE, SURFACE A MINING RIGHTS 11, SURFACE RIGHTS ONLY ".MIMING RIG HTS ONLY LICENCE OF OCC J RATION ORDERS-COUNCIL RESERVATION CANCELLED SAN O ft GRAVEL JSE PERMPS FOR COMMERCIAL TOURISM, OJTPO5TCAMPS MOTE : MIMING RIGHTS IN PARCELS PATENTED PRIOR TO HAY , Vt&lbLUX URItSINAL HAItNltttfY IHt PUBLW LMNU&^t:!, H.S.U, 1*70, CIIAF. 3M. SEC. 63. SUBSEC 1. t A Q T GC 0 J? STRIP L INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES, AND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE MIN fng CLAIMS SHOULfrCON SULT WITH THE MINING RECORDER. MINISTRY OF NORTHERN DEVELOP MENT AND MINES, FOR AD DITIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN HEREON ^ -J -- KRL; l t V l S ' IIMM j Z o^o N.* i y F KRL ^ -\-,;^-L 7. ^8*9 &0951 Jl eo^ f KRL, 3699S9 TOWNSHIP DISTRICT l 4U -J BALMER " K if ^figgeg Si" ""r^iiftitrl~ ~~ (7*" ' l ~Wmfmr*rT KENORA PATRICIA PORTION MINING DIVISION RED LAKE iv- J ' -i~ "~ v.aiitjbctitb i ^ *^fc ^^fc w.- i tai*,lrf -Jr - ^RT BYSHE TWP. G 3745 Ontario Ministry of Natural Res source s Date August, 1936 Ministry of Northern D&veloppment and Mines G-3735 \ 52N04SE BALMER 200

19 K J. A. GREEN PROPERTY BALMER TOWNSHIP RED LAKE MINING DIVISION, ONTARIO WORK BY; C. D. HUSTON, P.ENG SCALE ; 1: iv^^^nfc 4 ATE; AUG 29 A 30, 1998 TRACTOR STRIPPING BY ESKER LOGGING LIMITED ) 6 TRACTOR 52N04SE BALMER 210

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