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1 023G/0290

2 1 St Year Assessment Report Prospecting, Rock and Soil Sampling Menihek Property Lin. # M (23 Blocks) Lin. # M ( 30 Blocks) Lin. # M ( 3 Blocks) Lin. # M ( 8 Blocks) Lin. # M ( 81 Blocks) Map Sheet 23G/ Submitted by: Gary Lewis for: Unity Resources Inc. July 30, 2012 Work year: Lin. # M (23 Blocks)expenditures: $ Lin. # M ( 30 Blocks)expenditures: $7, Lin. # M ( 3 Blocks)expenditures: $ Lin. # M ( 8 Blocks)expenditures: $1, Lin. # M ( 81 Blocks)expenditures: $19, Total claims: 145 (Total expenditures: $35, )

3 TABLE OF CONTENTS Page I. Introduction 1 II. Location & Access III. Physiographic Setting 2 IV. DESCRIPTION OF DEPOSIT 6 V. VI. VI. Previous Work 9 Geology & Mineralization 10 VII. Prospecting VII. Conclusions & Recommendations 11 VII. References 12 VIII. Expenditures FIGURES Fig. I. Property Location 3 Fig. II. Geology 4 Fig. III. Lic # Flight Lines Sample Location Map Fig. IV. Lic # Flight Lines Sample Location Map 5 6 Fig. V. Lic # Flight Lines Sample Location Map 7 Fig. VI. Lic # Flight Lines Sample Location Map APPENDICES App. I. Sample Assay Data 8

4 Page 1 Introduction The Shabogome property has five licences and consists of 145 claims located in Labrador West approximately 36 km north of Labrador City. The properties were staked in 2011 for it s Iron, Garnet, Kyanite,Uranium and Graphite potential and its proximity to the IOC Mine. The area of the property is known for its Iron Ore and Graphite and Quartize potential with Numenius showings and producing mines. Location and Access (licence # M) n-e corner Region: Newfoundland UTM Zone: 19 Easting: Elevation (m): 550 NTS Area: 23B/14 Northing: Location Uncertainty (m):

5 Page 2 ACCESSIBILITY The properties consists of five licences and 145 claims located in Labrador West approximately 75 km north of Labrador City. It can be accessed by snow machine or via helicopter or float plane. The area of the property is known for its Iron Ore potential with numenius showings and producing mines. Physiographic Setting The Menihek Lake area, west of the two arms of Northwest Arm is heavily covered by sand and boulders forming ridges which seldom rise 61 m (200 ft.) above Menihek Lake. The area has low plant coverand in general is a poor area for general prospecting. The area about the Lake is essentially gently folded and quite barren of timber. The lakes are reasonably shallow.

6 FIGURE I (Claims Location) Page 3

7 Figure II (One to a Million Geology) Page 4

8 Figure III (Flight Lines Lic # m Sample Location Map) Field # assay # UTM East North type LL-10 LL E E Page N N Sub-crop Sub-crop Sample

9 Figure IV (Flight Lines Lic # m &018710m Sample Location Map) Field # assay # UTM East LL-12 LL E E Page 6 North Sample type N N Float Float

10 Figure V (Flight Lines Lic # m Sample Location Map) LL-14 LL-15 Field # type assay # UTM E E Page N N East North Altered Quartzite Float Altered Quartzite Float Sample

11 Figure VI (Flight Lines Lic # m Sample Location Map) Field # assay # UTM East LL-16 LL E E Page 8 North N N Sample type Float Float

12 Page 9 Previous Work The iron bearing rocks of the Bruce Lake - Flat Rock Lake area are generally banded. According to Eckstrand (1956), specularite schist, sometimes containing thin, irregular bands of magnetite occurs in many bands throughout the area. Nowhere was a thickness of iron-rich material greater than 3 m (10 ft.) noted. Love (1959) described a gneissic quartz-magnetite-specularite rock type in which the specularite appears mainly on the bedding planes, with the magnetite in bands generally from 6 mm (1/4 in.) to 8 or 10 cm (3 or 4 in.) interbanded with narrow bands of quartz-hematite (minor amphibole). The nature of occurrence of the iron oxide minerals of the region about Grace Lake and south of Bruce Lake, in general, is modified from Love (1959) as follows: Throughout the region the hematite exists mainly as a granular form, although it has a micaceous texture in many places usually associated with magnetite. The specularite has a shiny metallic lustre, due to its micaceous crystal surface. The magnetite is associated in a mosaic texture with quartz. It exists as minute, cubic or angular crystals with a dull black lustre and is even finer grained than the specularite in many places. Due to the leaching and oxidation, secondary iron minerals have been formed, including limonite and goethite, which are associated mainly with the rocks containing magnetite. Those containing mainly quartz-specularite have little hematite(?) or goethite, and appear as a clean, almost massive crystalline rock (Love, 1959). Although octahedral and cubic(?) crystals of martite were reported by Eckstrand (1956) to be common throughout the area, this mineral was not observed by Love (1959). For details of the genesis of the iron formation in the southern Labrador Trough, refer to Smallwood Mine (NMI File No. 23G/02/Fe001).

13 Page 10 Geology and Mineralization Geological Province: Grenville Tectonic Zone: Stratigraphic Unit: Sokoman Fm-Knob Lake Gp Geological Age: Paleoproterozoic Rock Type(s): iron formation, schist Grenville Province - Canadian Shield Labrador occurs within the Wabush and Wightman Lakes map area of Rivers (Maps 80-1 and 85-28) which is located in the southern extension of the Labrador Trough within the Grenville tectonic province of the Canadian Shield. The area lies close to the Grenville Front within the Grenville Front Tectonic Zone - i.e. the northern margin of the Grenville Province where it abuts against an Archean gneiss terrain of the Superior Foreland Zone and against weakly metamorphosed and deformed Aphebian (Lower Proterozoic) supracrustals of the Churchill Foreland Zone. (The Wabush Lake area encompasses part of the southern Grenville Front Tectonic Zone adjacent to the Superior foreland.) All rocks in the area are highly metamorphosed and deformed. The oldest rocks comprise the Ashuanipi Metamorphic Complex consisting of a high grade, Archean migmatitic gneiss terrain, intruded by granitoid plutons; and this sequence forms the basement on which the Aphebian sediments of the Labrador Trough were unconformably deposited. The sedimentary sequence is referred to as the Knob Lake Group (formerly known as the Gagnon Group, refer to Rivers (1980b) for details) and is part of the Kaniapiskau Supergroup. In the Wabush Lake area it consists of the following conformable formations (ascending order), Attikamagen, Denault, McKay River, Wishart, Sokoman and Menihek. Helikian (Middle Proterozoic) rocks of the Blueberry Lake Group and Sims Formation unconformably overlie the Knob Lake Group in the Churchill Province. Rocks of the Shabogamo Intrusive Suite intrude both the Blueberry Lake Group and the Sims Formation as well as various units of the Knob Lake Group. Gabbro of the suite is dated at approximately 1400 Ma by Rb/Sr, Sm/Nd and 40Ar/39Ar methods, Brooks et al. (1981), Dallmeyer (1982). Minor syn to post tectonic (approximately 1000 Ma) pegmatites known as the Sawbill Intrusions are widespread but not abundant. Note: The structural development of the Knob Lake Group within the Grenville Province is described in detail by Rivers (1978a, 1980a, 1983a and b) for the Wabush-Labrador City area (refer to Smallwood Mine - NMI File No. 23G/02/Fe001) where three phases of Grenvillian deformation (the first and second deformations characterized by northeast trending structures and the third characterized by northwest trending structures) have been recognized

14 Page 11 Prospecting A total of 36 man days were used to prospect the area and Four day was spent analyzing the government a data and doing flow up site visits to prospect the areas. Prospecting on the Sawbill Lake property was conducted in We flew into Wabush from Springdale Via a private air craft. We did a few lines of our own over the property we were testing for Radiometric with a Super Sint RS-125. We did not note any area of interest for Radiometric. We gained access to traverses via our float plane. A prospecting traverses were done to the property see figure wrt traverses. License m was prospected via flying about 110 line kilometers to test for high total sint readings but no reading were recorded above 60 total counts. Two traverses were conducted via float plane and samples were collected and two were assayed with poor results. The property has a lot of cover which makes it difficult to get accurate data. License m was prospected via flying about 36 line kilometers to test for high total sint readings but no reading were recorded above 60 total counts. Two traverses were conducted via float plane and samples were collected and two were assayed with poor results. The property has a lot of cover which makes it difficult to get accurate data. License m was prospected via flying about 50 line kilometers to test for high total sint readings but no reading were recorded above 60 total counts. Two traverses were conducted via float plane and samples were collected and two were assayed with poor results. The property has a lot of cover which makes it difficult to get accurate data. Conclusions and Recommendations We are talking to companies about options which would a detail air born survey over the area with deep penetration EM and gravity. This could outline potential target areas for property expansion.

15 Page 13 References Neal, H E 1951: Exploration report on the Wabush Lake-Shabogamo Lake area, Labrador. Iron Ore Company of Canada Unpublished report [GSB# 023G/0004] Elliott, R A, McVeigh, H G, Neal, h E, and Rolling, F J 1980: Potential for further iron ore development in Newfoundland and Labrador. Department of Mines and Energy, Government of Newfoundland and Labrador Unpublished report, 164 pages. [GSB# LAB/0523] Thorniley, B H 1959: Summary report of the geology of the Lorraine No 4 and Wabush No 6 deposits in the Wabush Lake area, Labrador. Iron Ore Company of Canada Unpublished report [GSB# 023G/0049]

16 Page 14 III. SUMMARY OF WORK (Expenditures) Lin. # M (23 Blocks)( 16 Blocks) Lin. # M ( 30 Blocks) Lin. # M ( 3 Blocks) Lin. # M ( 8 Blocks) Lin. # M ( 81 Blocks) Trips Travel by truck and Plane Gary 10 days Aubrey Budgell 10 days Paul Chafe 10 days Brian Penney 10 days Total of 40 man $300/day 12, Meals for 40 man $50/day Fuel for 5 $200/trip 1, Misc Fuel Float Plane 4 $ 1500/day 6, Private Plane 4 Day 8, Accommodations 4 2 $200/night at Hotel Assays (Eastern Analytical) ICP Sub - Total Administration costs 15% $31, , Total $ 35,880.00

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