42E04NE KABAMICHIGAMA LAKE Q10 WORK REPORT LITTLE BEAR AMETHYST QUARRY 2,20333

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1 42E04NE KABAMICHIGAMA LAKE Q10 WORK REPORT LITTLE BEAR AMETHYST QUARRY 2,20333

2 42E04NE KABAMICHIGAMA LAKE Q 10C INDEX INTRODUCTION... l PROPERTY DESCRIPTION... l LOCATION AND ACCESS... l PREVIOUS EXPLORATION... l PROPERTY GEOLOGY... 2 ECONOMIC GEOLOGY... 2 PHYSICAL WORK... 2 HOURS OF WORK... 3 EQUIPMENT COST... 4 COST SUMMARY...4 PROPERTY LOCATION /GEOLOGICAL MAP.. MAP l CLAIM MAP...MAP2

3 INTRODUCTION The occurrence was originally discovered during the construction of the camp 81 Domtar woodlands road in The area was staked by T.F. Galarneau in PROPERTY DESCRIPTION The property consists of 2 claim units, T.B and T.B that were staked by R. Cormier and N. Cederwall in 1998, with N Cederwall holding 100"/o ownership. LOCATION AND ACCESS The property is located approximately 50 kilometers Northeast of Nipigon at the North end of Kabamichagama Lake. Refer to claim map G-58. Access can be gained by driving East from Nipigon on highway 17 for 21 kilometers to the Camp 81 Domtar woodlands road. Follow the main road for 42 kilometers until you reach the camps on the North end of Kabamichagama Lake. Latitude 49:13:59"7. Longitude 87:39:18 "5. PREVIOUS EXPLORATION Staked by T.F. galarneau Various mechanical and manual surface work was performed. Bulk sampling was also performed Manual and mechanical work was carried out Application for lease was applied for by T.F. Galarneau. Amethyst was extracted using an aggregate permit and sold on Site T.F. Galarneau sold a leased claim ( T.B ) to R.H A mining lease issued to R.H. Patterson Patterson also staked and worked T.B immediately south

4 Of the main quarry from R. Patterson conducted blasting, trenching and sampling T. Galarneau sold his leased claim to D. Dorion.!998 - RCormier staked a claim T.B immediately south of the little bear quarry for N.Cederwall. N. Cederwall staked claim T.B (the little bear Quarry) PROPERTY GEOLOGY The bedrock consists of pink biotite granite bordered on the eastern part of the property by metasedimentary migamite. The mineralization consists of a vuggy breccia zone striking 295 deg. This zone is 0.3 to l meter wide and dips 73 deg southwest. The zone is about 60 meters long and consists of brecciated pink biotite granite cemented with pink to purple amethyst and containing vugs measuring 60 cm long by 15 cm wide. The vein amethyst occurs as ramifying veinlets 1.3 to 2.5 cm wide along the brecciated zone. ECONOMIC GEOLOGY The Little Bear Quarry will be operated as a pick your own amethyst site for the immediate future but it is hoped to be a major supplier of amethyst to local shops catering to the tourist trade. PHYSICAL WORK The physical work carried out on the properties consisted of removal trees and overburden. Derelict vehicles were removed from the old quarry site and mustered at the main road for pickup by a scrap metal dealer. The area adjacent to R. Patterson b camp was water washed exposing approximately 30 meters of bedrock. The bedrock has a multitude of quartz veins running North to South, these veins are up to 5 cm wide and vary in lengths up to 20 meters.

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13 N.CEDERWALL 1998 JULY hours August l... 4 hours September 10,11,12, hours September 15,16, hours November hours 1999 May 14,15,16, hours May 23, 24, 25, 26, hours June 24,25,26, hours July 5, 6, hours August hours August 16,17,18, hours Total hours worked in ^ 127 hours a SI5.00 per hour = S C. Cederwall 1998 September 10,11,12, November 3, May 14,15, May 23, 24, June 24,25,26, Total hours of work = 66 S15.00 per. Hour = S TOTAL HOURS OF WORK S15.00 PER. HOUR = S

14 Equipment costs Powersaw rental 6 S39.00 per. Day = S Water pump rental 11 S40.00 per day = S Kilometers traveled S.33 per kilometer = S Gasoline for powersawand water pump 60 S.55 = S33.00 Skidder rental 20 hours ( S50.00 ~ S EQUIPMENT COST HOURS WORKED TOTAL COST = $ = $

15 Ontario Mini:;1iy di Noilliein Uevplopinenl il ins Declaration of Assessment Wo^k Performed on Mining Land Mining Acf, Subsection 65(2) and 66(3), R.S.O transaction Number (olfice use) Aṣssessment Files Research Imaging f subsections 65(2) and 66(3) of the Mining Act Under section B of the Mining A' i assesment work and correspond with the mining land holder. Questions about tt: Northern Development and Mines, 3rd Floor, 933 Ramsey Lake Road, Sudbut 42E04NE KABAMICHIGAMA LAKE 900 Instructions: - For work performed on Crown Lands before recording a claim, use form Please type or print in ink. f - (T) jf- f-* 1. Recorded holder(s) (Attach a list if necessary) Name x-j, Address *~ ^ 7 '~~' / T ^~ "O -^ "' Client Number ^ 1037 Telephone Numbpr; Fax Number O/,;//?.^ Name Address Client Number Telephone Number Fax Number 2. Type of work performed: Check (V) and report on only ONE of the following groups for this declaration. Geotechnical: prospecting, surveys, assays and work under section 18 (regs). ' Work Type,^/T/S/r.AiA -^uf'/av fi.^r'/'jj/, ~ / J /A, '-SJ, (j i r. ' x" I -S" - t" J^ cuvun^ ^//c. Dates Woik From, A lcc P } f? ft To 1 5 O^'-l ^ y* Pertormed Day Month Yenr Day j Monlh Year -/Physical: drilling stripping, trenching and associated assays Global Positioning Syslem Data (if available) f owns) lip' At on //p ' ' 6s /"'l /t ' s /' /p i*" M or G-Plan Number *, - (7 - -s d Commodity Office Use Total S Value of ^ x Work Claimed ^3.^ x NTS Reference Rehabilitation ITS: a" Mining Division-V^/ i, D, Resident Geologist District.xL/L',/'* h f ^-tillt* 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. 3. Person or companies who prepared the technical report (Attach a list if necessary) Name \ t S3 l A/CV/ L/rxl^/? W^/A Address --j /o ^) **^ '? '^^ ^ Name Address Name Address yiox 334 /V/fA /-ice.k O/J/ rt/z.fo RECEIVE MAY 1 1?-rn GEOSCIENCE A^SESSME OFFICE Telephone Number Fax Number ^Tc shone Number Fax Number Tel phone Number NT Fax Number 4. Certification by Recorded Holder or Agent l, rj^t t- C. z h i' R \fjft A A-. do hereby certify that l have personal knowledge of the facts set forth in ii il M.i.iip) this Declaralion of Assessment Work having caused the work to be performed or witnessed the same during or af :; its completion and, to the best of my knowledge, the annexed report is true. fed Holder of 07*1 (03(9? l Mining Division RECEIVED

16 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 (26,825 N/A S eg S24, eg n -O. /' /O j ']A33it.Z.fr f 2 S 8,892, - i^j7,ho ^^9Q S4.000,0 ^ y^-oa %30-OC t. o **? cff i! i**" tfowrt ; 'fc *j 3*, ic fi r- 3 f ~* v/ t "* 15 i Column Totals i &X-&0 3&CG.CO L -) 1 S. o., do hereby certify that the above work credits are 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. ^, f A,. /', - 7 i C /V i&fi/lfi JLAfi/c SignatVHWof er or AgeM Authorized In Writing Date s S 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: Or 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated. D 2. Credits are to be cut back starting with the claims listed last, working backwards; or D D 3. Credits are to be cut back equally over all claims listed in this declaration; or 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 0241 (O3/97) Thunder Bay Mining Di vision MAY RECEIVED C-/ Approved for Recording by Mining Recorder (Signature)

17 Ministry of Ministers du Ontario Northern Development Developpement du Nord and Mines et des Mines Geoscience Assessment Office 933 Ramsey Lake Road September 26, th Floor Sudbury, Ontario NEIL CEDERWALL P3E 6B5 BOX 336 RED ROCK, ONTARIO Telephone: (888) POT-2PO 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 LUCILLE JEROME by at lucille.jerome@ndm.gov.on.ea or by telephone at (705) Yours sincerely, ORIGINAL SIGNED BY Steve B. Beneteau Acting Supervisor, Geoscience Assessment Office Mining Lands Section Correspondence ID: Copy for: Assessment Library

18 Work Report Assessment Results Submission Number: Date Correspondence Sent: September 26, 2000 Assessor: LUCILLE JEROME Transaction Number First Claim Number Township(s) l Area(s) Status Approval Date W KABAMICHIGAMA LAKE Approval After Notice September 26, 2000 Section: 10 Physical PSTRIP All the work performed prior to September 24,1998, the recording date of mining claim , is not eligible for assessment work credit since the physical work was performed prior to staking the claim. The balance of the stripping work that is eligible for credit was increased to industry standard costs. There is no reduction in credit as a result of the reassessment. Assessment work credit has been redistributed, as outlined on the attached Distribution of Assessment Work Credit sheet, to better reflect the location of the work. Correspondence to: Resident Geologist Thunder Bay, ON Recorded Holder(s) and/or Agent(s): NEIL CEDERWALL RED ROCK, ONTARIO Assessment Files Library Sudbury, ON Page: 1 Correspondence ID: 15270

19 Distribution of Assessment Work Credit The following credit distribution reflects the value of assessment work performed on the mining land(s). Date: September 26, 2000 Submission Number: Transaction Number: W Claim Number Value Of Work Performed , Total: S 5, Page: l Correspondence ID: 15270

20 R E PH REIN AREAS wrmtwww ' RI : SURFACE RIGHTS ONLY WITHDRAWN FROM STAKING. x-- SECTION 42 OF THE MIMING ACT FILE l Ff?i SURFACF RIGHTS OM Y WITHHRAWN FROM STAKING ' ' S ECTIO N 3^. O RDER W-TB-' f?/30 J LI LY ' 9/30 WASTE DISPOSAL SI T E, 35 W-LL-C2225/99 ONT 12/05/99 M A S f I ARRELL LAKE C-5 c p Nf T R o i., s u R y E y s Base line to 22rd. mile pos-l and Mefioion line sutveyfld by Phillips ond"eewer,g.l.s.-l9i6. Field Note Buok Base luit Surveyed by Charts O OLS. TW, field Note Bookie TOPQQRAPHY Ukes, Silvers, etc, from Forest Resources inventory 5fceet No 41 LEGEND HIGHWAY AND ROUTE No 01HLR ROADS TRAILS, ~ FUnvr-YED LINES: TOWNSHIPS, BASE L l*. b. ETC, t OTS. WINING CLAIMS, PARCELS, ETC. UNSUHVEYf[V LlNF'j: LOT LINES, PAR^L BOUNDARY MINING Ci AIMS ETC. ~ SAI LWAY AiJD RIGHT OF W/ Y -* UTILITY LIWFti NON-PE' 'l NNIAi. STREAM f LOODINGOR FLOODING RIGHTS i SUBDIVISION OR COMPOSITE RESERVATIONS ORIGINAL SHORELINE MARSH O* MUSKEG MINES TRAVERSE MONUMENT DISPOSITION OF CROWN LANDS TYPF OF DOCUMENT PATENT, SURFACE ft MimNC RIGHTS ", SUH FACE RIGHTS ONl.V..,. ".MIMING RIGHTS ONLY.,. LEASE SURFACE 4 MINING RIGHTS ", SURFACE RIGHTSONLY , MJN l NG R l GHTS ON LV.,. LICENCI Of OCCUPATION...,i^. ORDER th COUNCIL,,.,-._,. RESERVATION.... CANCELLED._.,..... SYMBOL... tt. C H B. B - T _'. OC UND USE PeBMfflnXW^COMMPPQ*L TOUWBM, OUTPdiT CAMP5 W3. VESTED IN O RIGINAL fattntep f THt PU*t, 1C tand* ACT. )* *-O tfl*0, CWAJ1-3M, tfc- H, *U*MeC 1. SCALE: 1 INCH - 40 CHAINS O K.j 000 ft IOO 1000 II K.M] aooa (2 KM) AREA KABAMICHIGAMA LAKE M.N.fi, ADMINISTRATIVE DISTRICT NIPIGON MIMING DIVISION THUNDER BAY VL ilw NDTICEt MMWry M NBTtMWt WWTTWtter m Ilw twk* M fh*. J MB MWMt TOP LAND TITUS/ REGISTRY D IVISION Ontario THUNDER BAY Ministry of Natural Resources Land Branch 42E04NE KABAMICHIGAMA LAKE 2 00 O x1 "* ^ ^ i ^ l * i' '" "^ r, A s'e L R lv. t. 1. 4:7 12/MAttCH/}**] G-58 In Sarule;* July 27/93. J.- T i, -M-^j.

21 o H W o o p] M O THUNDER BAY DISTRICT ONTARIO Scale 1:50,000 Echelle i Metres 1000 L \-^ t t. H4 M ra - '.. ' - - ^ ^~ 2000 :- ' - "'CI...J ( 4000 Metres - r -... : -,.^-. -g Yards 1000 O Verges SEP ' o "Y;i f

22 42E04NB KABAMICHIGAMA LAKE 2 20

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