DIANOND DRILLING REPORT. NICOLA MINING DIVISION, B.C. Lat 'N, Long. 12O03O'W N.T.S. Map 921/1 W82E. for

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1 W DIANOND DRILLING REPORT MM #1, MM #2, MM #3, INEZ #1, INEZ #2, AND CROWN GRANTED CLAIMS NICOLA MINING DIVISION, B.C. Lat 'N, Long. 12O03O'W N.T.S. Map 921/1 W82E for FLAIR RESOURCES LTD Granville Street Vancouver, B.C. by J.P. ELWELL ENGINEERING West Hastings Vancouver, B.C. V6B 1L8 LTD. Street June lst, 1981

2 TABLE OF CONTENTS i- Page INTRODUCTION... 1 LOCATION AND ACCESS... 1 PROPERTY... 1 DISCUSSION OF DIAMOND DRILLING RESULTS... 2 CONCLUSIONS... 3 STATEMENT OF COSTS... 4 APPENDICES APPENDIX "A" - Logs of Drill Holes APPENDIX IlB" - Assay Certificate APPENDIX "C" - Copies of Invoices... 1:50,000 scale location map...follows pg. 1 1" to 20' scale drill hole sections...f ollows pg. 2 1" to 200' scale plan showing drill hole locations... i n pocket

3 DIAMOND DRILLING REPORT MM #1, MM #2, MM #3, INEZ #1, INEZ #2, AND CROWN GWNTED CLAIMS NICOLA MINING DIVISION, B.C. INTRODUCTION During the period May 3rd to May 8th, 1981, a total of 733 feet (222 m) of diamond drilling was carried out on the Ensign C.G. mineral claim which is grouped with the MM #1, #2, #3, and Inez mineral claims in the Nicola Mining Division, B.C. The objective of the drilling was to test a quartz vein where previous work had indicated variable but occasional high values in gold and silver from surface sampling. LOCATION AND ACCESS The property is locatec, approximately 20 km northeast of Merri-t, B.C. to the south of Nicola Lake. Access to the claims is by way of highway #5 North from Merritt, and about 2 km of ranch roads. A 1:50,000 scale location map accompanies this report. P ROPE RT Y The property consists of two 2-post located claims, three metric claim blocks, and seven Crown Granted claims as follows: v Crown Grants Ingersoll - L 3835 Ensign - L 3836 Fr i nd s bu ry - L 3837 Last Post - L 3838 Camperdown - L 4789 Qui 1 chi na - L 4790 Tete Rouge - L 4792

4 N NOTE : Drawn from maps 92 I / IW 8 2E, and staking sketches FLAIR RESOURCES LTD. QUILCHENA CREEK PROPERTY NICOLA M.D., BRITISH COLUMBIA LOCATION 8r CLAIM M, m Scale in metres NOVEMBER 1979 J.P. ELWELL,

5 - 2 - Located C1 aims Inez #1 - Record No (6) Inez #2 - Record No (6) MM #1 - Record No. 748 (10) MM #2 - Record No. 749 (10) MM #3 - Record No. 756 (11) DISCUSSION OF DIAMOND DRILL RESULTS Three sites were selected on the Ensign Crown Grant claim to test two northwest striking quartz vein structures, the holes being drilled to the southeast from the southwest, (footwall) side of the structure. Two holes each were drilled from sites 1 and 2 at -45" and -60", and one hole at -50" were drilled from site 3. (See 1" to 200' scale plan accompanying this report.) On completion of the drilling, the writer examined and logged the cores, and vein sections were split and submitted for assay to Chemex Labs Ltd., of North Vancouver, B.C. Complete logs and assays each hole are included with this report as Appendix "A", but in summary,the host rock consists of vari-colored volcanics, both porphyritic and non-porphyritic which are cut by narrow quartz veins containing minor pyrite and very minor copper mineralization. The quartz veins are both massive and brecciated, and pinch and swell along strike and down dip. Hole 80-S1 - Bearing 55" Dip -60" Length 250' Entire hole in grey, red, and purple volcanics, porphyritic and nonporphyritic. No quartz intersected. L Hole 80-S2 - Bearing 55" Dip -45" Length 86' Grey, pink volcanics, minor epidote. 2' quartz vein 74' to 76'. Au oz/ton, Ag 0.12 oz/ton. Assay

6 2' 250' W FLAIR RESOURCES LTD. SECTlON THROUGH DDH 81-SI & 81-SZ SCALE: I I' = 20' S

7 5' Au ' Au FLAIR RESOURCES LTD. SECTION THROUGH DDH' s 81-S3 8i 81-S4 SCALE : I " = 20'

8 - 3 - Hole 80-S3 - Bearing 50" Dip -45" Length 116' Grey to reddish volcanics, variable epidote. 5' quartz vein 99' to 104'. Assay Au oz/ton, Ag 0.05 oz/ton. Hole 80-S4 - Bearing 50" Dip -60" Length 146' Same rock as 80-S3. 8' quartz vein cut 130' to 138'. Assay Au 0.01 oz/ton, Ag 0.05 oz/ton. Hole 80-S5 - Bearing 50" Dip -50" Length 135' Shattered grey to red volcanics, mud seams, minor epidote. stopped at 135'. No quartz encountered. To be CONCLUSIONS The drilling of this zone has shown the veins to be discontinuous along strike and at depth. No economic mineralization was encountered. June lst, 1981

9 - 4 - STATEMENT OF COSTS H. Allen Diamond Drilling Assay i n g $1 5,820.00* 60.00* J.P. Elwell Engineering Ltd., siting of drill holes; logging of core and sampling; submission o f samples to Chemex Labs Ltd.; preparation of Statement of Exploration and Development; writing o f report dated June lst, Total professional fees and expenses including travel, drafting and reproduction costs 2, Tota J $1 7,9J 4.90 * Invoice attached

10 A P P E N D I X Diamond Drill Logs "A"

11 DIAKOND DRILL LOG D.D.H. 80-S1 Bearing 50' Footage From ,End o f Hole Description Dip - 60" - overburden broken cove - grey volcanics - massice grey to purple volcanics minor qtz-calcite s tr i ngers massive grey volcanics - reddish brown volcanics - red, purple, grey volcanics partly porphyritic - grey to reddish porph. volcanics - grey to dark red porph volcanics, minor qtz. stringers - massive grey volcanics

12 h# Bearing 55" Footage From - To End of Mole DIAMOND DRILL LOG D.D.H. 81-S2 Description Dip - 45" - overburden - grey to pink volcanics, minor qtz. stringers - grey to pink volcanics, porphyritic, minor epidote alt., qtz. stringers - qtz. vein - massive grey volcanics ASSAYS el Sample No. From - To Ft. Au oz/ton Ag oz/ton

13 DIAMOND DRILL LOG D.D.H. 81-S3 Bearing 50" Footage From To End of Hole Descri pt i on overburden - very broken core, mass. grey volcanics Dip - 45" - grey to reddish porph. volcanics, epidote alt. 27' to 30' and on fractures. - massive grey to purple volcanics, variable epidote alt. minor qtz. stringers 95' to 99' - brecciated qtz. vein structure minor fine gr. pyrite. - massive fine gr.-grey volcanics e, ASSAYS Sample No. From To - Ft. - Au oz/ton Ag oz/ton

14 Irr Bearing 50" DIAMOND DRILL LOG D.D.H. 81-S4 Dip - 60" Footage From - To Descri p t i on End of Hole overburden - grey to purple volcanics, minor epidote alt. throughout but strong from 45' to 47', minor qtz. stringers shearing at 77'. - porp. purple volcanis to 108, strong epidote alt., brecciation, shearing. - broken core, minor qtz. stringers in grey volcanics with epidote alt. - qtz. breccia vein, mud seams, minor py. - massive grey volcanics ASSAYS SamDle No. From - To Ft. Au oz/ton Ag oz/ton

15 DIAMOND DRILL LOG D.D.H. 81-S5 Bearing 5OI0 Foot age From To End of Hole Description Dip - 50" - overburden - grey to red volcanics, shattered core minor epidote alt. - grey to purple volcanics, shattered core, minor epidote. - fine gr. purple vol. - mud seam, shearing - massive grey volcanics - mud seam - grey to purple volcanics, shattered, minor qtz. stringers.

16 A P P E N D I X Assay Certificate "B"

17 CWEMEX LA5S LTD. 212 BROOKSBANK AVE NORTH VANCOUVER, B.C. CANADA V7J 2C1 TO 2 ANALYTICAL CHEMISTS GEOCHEMISTS REGISTERED ASSAYERS ELWELL9 JoPo Wo HASTINGS ST; VANCOUVER9 BoCo V6B 1L8 I I CERTIFICATE OF ASSAY I I TELEPHONE. (604) TELEX: CERTo # : A A INVOICE # : I DATE 28-MAY-81 Po00 ## : NONE SamD I e PreD Ag - {FA) Au (FA) descr i pt i on code oz/t oz/t ? MEMBER CANADIAN TESTING ASSOCIATION Registered Assayerr Province of British Columbia

18 A P P E N D I X "C" Copies of Invoices

19 TELEPHONE H. ALLEN DIAMOND DRILLING LTD. INVOICE NO. 633 P.O. BOX 1397 MERRIlT, B.C. VOK 2B0 May 11, To: Caznon Engineering Ltd., W. Pender St., Vancouver, B.C. V6C 2T8. In Account With: H. Allen Diamond Drilling Ltd., Box 1397, Merritt, B.C. VOK 2B0. This invoice is for drilling in Merritt area. Hole No to 86 $20.00 per ft.... $ 1, Hole No to 250 $20.00 per ft $ 5, hrs. tractor time moving $35.OO per hour... $ Hole No to 116 $20.00 per ft,,... $ 2, Hole No to 146 $20.00 per ft..... $ 2, hours tractor time move and make set $35.00 per hour... $ Hole No to 135 $20.00 per ft..... $ 2, hrs. tractor $35.00 per hour..... $ hrs. tractor time cleaning up and levelling drill $35.00 per hour.... $ Mobe de mobe costs... $ $15, Contractor's Representative Company's Representative

20 CHEMEX LABS LTD. ANALYTICAL CHEMISTS GEOCHEMISTS REGISTERED ASSAYERS 145 INVOICE %** 1 TO t ELWELL. J-Po Invoice?d Wo HASTINGS ST; VANCOUVERI Bot0 Date V60 1L8 Po00 # Project 212 BROOKSBANK AVE. NORTH VANCOUVER, B.C. CANADA V7J 2C1 T EL EPH 0 NE: (604) TELEX: : : 28-MAY-81 t NONE Invoice for analytical work reported on certificate(s1 A Analysed for unit Quanti ty code descr i pt ion pr i ce amount Ag (FA) oz/t Au {FA) oz/t Sample preparation and other charges : Assay - PULVERIZE w 'ERMS -- NET 30 DAYS.-5 % per nonth 118 ri: per annum) charged on overdue accounts MEMBER CANADIAN TESTlNQ ASSOCIATION

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