REPORT ON DIAMOND DRILLING AT THE PROPERTY OF CONSOLIDATED CINOLA MINES LTD. ENERGY RESERVES CANADA (METALS) LTD. NOVEMBER - DECEMBER 1984.

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1 REPORT ON DIAMOND DRILLING AT THE PROPERTY OF CONSOLIDATED CINOLA MINES LTD. ENERGY RESERVES CANADA (METALS) LTD. NOVEMBER - DECEMBER /8 ig; CINOLA CLAIM GROUP GRAHAM ISLAND, B.C. SKEENA MINING DIVISION LaT 53O32' N LONG 132O13' W NTS 103 F 9E BY K.G. SANDERS P. ENG. MAY 29, 1985 FOR ASSESSMENT REQUIREMENTS

2 REPORT INDEX PAGE Geographic Location Plan Summary Claim Group Location and Access Claim Data Drilling Summary Cost Statement Mineral Claim Map Drill Location Plan Drill Logs Invoices Engineer's Statement Geologist's Statement

3 I. %PROPERTY C I NOLA Terrace SCALE: I: SCALE

4 - 2 - SUMMARY:- This is a report on diamond drilling on the Cinola claim group on Graham Island carried out in November and December of Fourteen BQ daimond drill holes were completed for a total of metres. The cost of the program for assessment purposes is calculated at $81.75 per metre. Maps, core logs and a cost statement are included in this report. CLAIM GROUP LOCATION AND ACCESS:- The claims are on Graham Island in the Queen Charlotte Islands and lie at 53O32" N lat. and 132O13' W long. (NTS 103 F 9E). Access is by daily jet service from Vancouver to Sandspit and thence by good public and private logging roads. A B.C. Ferry also operates twice weekly between Prince Rupert and Skidegate Landing. CLAIM DATA: - See Page 3.

5 3. wlovbrceofbrftishcdumbia Ministry of Energy, Mines and Petrdeum Resources MINERAL RESOURCES BRANCH-TITLES DIVISION MINERAL ACT M.R.# VANCOUVER, B.C. i STATE THAT Valid subsisting F.M.C. No... Valid subsisting F.M.C. 1. I havedone,orcausedtobedone,workontheci@o~a.~?ou.p.c8?.f4!s!?.o.f.!$.a+e.!igjefle$ I*. RlcFccza 6 ArSE.?.-.l?.kL., h?f.!s r??hg+# 6.44e.+?.-.+? IA/u:,A??i.?!O-?t/~~f.,!?!<.k!?. Cla im(s) -26Inc, h ~ ~ ~o.(s) Jd-g.6.6 r d -72,.35~k-.%,.??? ,Sd.aq 17.c! 6, f &.,34$.&27 ~PP, $ Situate at..g R9 HA M.. 1.SL.d.W... in the...$:!+e Eb! A.... Mining Division, Q dollars. Work was done from the...i. 3 T:.... dey to the value of at lean ,. of...s 697 e.& RFh to the..$.i. $5 day of..o. G.qc.o.6g.& The following work was done in the 12 months in which such work is required to be done: (COMPLETE APPROPRIATE SECTION(S) A, B, C, D, FOLLOWING) (Give details as required by section 13 of regulations.) I I... TOTAL PHYSICAL I wish to apply $... of physical work to the claims listed below. COST (State number of years to be applied to each cieim, its month of record, and identify each claim by name end record no.)..... < ,...

6 - 4 - DRILLING SUMMARY:- Fourteen BQ holes were completed for metres in the period November 19, 1984 to December 16, Two BBS #1 surface drills were supplied and operated by two drilling contractors - Calar Developments Vancouver B.C. and Core Enterprises, Smithers B.C. All monies were paid to Calar. The holes were numbered 84-4 to inclusive. The core was logged by E.A. Ostensoe, consulting geologist, and was assayed at Chemex Labs Ltd. in North Vancouver B.C. All split core is stored at the property. COST STATEMENT:- The total value of the work to be filed is $75,000 as per Statement of Exploration and Development filed on March 5, 1985 in Vancouver B.C. We have used $81.75 per metre for assessment purposes and include invoices to cover the full amount. Respectfully submitted by K.G. Sanders, P. Eng. May 29, ,., i

7

8 / L 3

9

10 Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture Pg. No. /of 2 DIAMOND DRILL LOG CINOLA PROPERTY HOLE No.- ELEVATION 1 Bo nz BEARING 296'30' DIPAT COLLAR -4f0 DIP AT DEPTH 2 3 'v / 7 r do, '""fd 77c- STARTED.dd t. / qi 198 f COMPLETED METRES EAST 3' 9L SECTION DIP AT DRILLED BY cd LAW LOGGED BY E A. 0 6

11 Pg. No. 2 of 8 Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture DIAMOND DRILL LOG CINOLA PROPERTY HOLE No.- ELEVATION I.ic7.00 c =#

12 i I i! Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture Pg. No... I of / DIAMOND DRILL LOG CINOLA PROPERTY HOLE No. 84-s' f, U! j r I 1 1

13 Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture DIAMOND DRILL LOG.ELEVATION ' 87 rrl BEARING 2 9 6' 9' DEPTH TED DIPAT COLLAR -Aso / 5 1 P+ CINOLA PROPERTY HOLE No.- DIP AT METRES EAST SECTION DIP AT DRILLEDBY 'ORE- EN7 LOGGED BY *' \ \ + \- I I

14 Pg. No. I of 2- Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture DIAMOND DRILL LOG CINOLA PROPERTY HOLENo.?3&- 7 METRES FROM I TO GRAPHIC GEOLOGY ALTERATION I METRES I ASSAYS Si I Sulph. I C I Kaolin I 7%. I From I To I Au I Aa I 1

15 i Pg. No. 2of METRES NORTH METRES EAST METRES Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture DIAMOND DRILL LOG CINOLA PROPERTY HOLE No.- ELEVATION BEARING DIP AT DIP AT DEPTH STARTED COMPLETED SECTION DIP AT DRILLED BY LOGGED BY I I 1 1 1

16 c I ' Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture i r ' DIAMOND DRILL LOG INOLA PROPERTY

17 Pg. No. zof Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture CINOLA PROPERTY HOLE No METRES NORTH ELEVATION BEARING DIP AT DEPTH STARTED COMPLETED * DIP AT I], METRES EAST SECTION DIP AT DRILLED BY LOGGED BY sg. I7 I 1 I I I,.,,. : 1). I,. ; '

18 I - ' Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture

19 nsolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture...L...,.....,..?A...

20 I,?7?.# Consolidated Cinola Mines Ltd. - Energy Reserves Canada Joint Venture DIAMOND DRILL LOG. CINOLA N ~ E ~ 2 ~ y -... l e & ELEVATION ' 14 9 Jr?'. BEARING 296% DIPAT 130 c+. L a i l L C -4s0 DIP AT 39 m - q"30 (unco~.r~c+4!z METRES EAST SECTION DIP AT DRILLEDBY LOGGED BY E A 0 HOLE No.- 10 DEPTH 39' 'L2 M* COMPLETED %-a. 6/84 I I I I I

21 ' Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture pg. N-0. L fli V! SIA m y e& * DIAMOND DRILL LOG CINOIA PROPERTY HOLE No.= METRES NORTH ' 2 '" ' ELEVATION -/ko*71*t BEARING 2qb' 3d DEPTH DIPAT mllre -4s" 52 * STARTED COMPLETED L /D, f 9 w. 277 fk DIP AT METRES EAST 24 * ' SECTION DRILLED BY cb LA LOGGED BY DIP AT E.A. 0.

22 Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. - Joint Venture

23 C

24 Pg. No. 1 of?, Ltd. - Energy Reserves Canada Ltd. - Joint Ven

25 METRES NORTH vk, snsjolidated Cinola Mines Ltd. - Energy Reseives Canada Ltd. - Joint Vent DIAMOND DRILL LOG

26

27 _. Consolidated Cinola Mines Ltd. - Energy Resetves^Canada Ltd. -Joint Venture 4 DIAMOND DRILL LOG f CINOLA PROPERTY HOLE No. 8+13!

28

29 Consolidated Cinola

30 P Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. -Joint Venture Pg. No.3 of 3' CINOLA PROPERTY HOLE No.84//4 DIAMOND DRILL LOG. METRES NORTH ELEVATION BEARING DEPTH STARTED COMPLETED DIP AT DIP AT -a SECTION DIP AT DRILLED BY LOGGED BY GEOLOGY

31 .,my-

32 Consolidated Cinola Mines Ltd. - Energy Reserves Canada Ltd. - Joint Venture \ Pg. No. 2of i DIAMOND DRILL LOG CINOLA PROPERTY HOLE No.-, METRES NORTH ELEVATION BEARING DEPTH -&b- STARTED COMPLETED...,...,...,-...

33 solidated Cinola Mines - Energy- Reserves Ca Vent

34 ... Consolidated Cinola Mines Ltd: - Energy Reserves Canada Ltd. - Joint Venture DIAMOND DRILL LOG

35

36

37 ' Consolidated Cinola Mines Energy Reserves Canad int venturej,

38

39 HOLE N 0. M

40 29 I 3 7. PMEitfTS LTD. /I i U O H M VANCOWER, B. C. v6c 2 ~ 6 ST. Jan 9/05 MOBILIZATION 8. One Truck and P. Rupert - Skidegate Return, Fare One Man Moving Equipment In and Out TElAVn TIME Three?ten Five Ten PWA Ticket Fh'A PW.f, Freight $ b-5 ' Deliveq Groceries I6 hrs = k8 x $13.50 I6 hrs = bo x :IO.O0 ' Hole 8L-4 Setting Up I6 Man Hours Hole 64-5 I21 ft.setting Up 20 Plan ilours Hole ft Setting Up 29 Man Hours Hole ft Settin ilp I6 Nan Hours Iiole 8L-8 I81 ft Settinc Up I9 Man Hours Hole ft Setting Up I3 Man Hours Hole I30 ft Setting 'Lip 24 Man Hours Hole 8L ft Setting, Up 21, &n Hours Hole ft Settin6 Up 28 &kin Hours. Hole Sh-13 20i) ft Setting Up 37 Xan Hours Hole 8L-I4 231 ft Setting Up I Nan Hours Hole 8L-15 4". 217 ft Settin& Up 19 Nan Hours Hole 8t-I6 331 ft Setting Up 18 Nan Hours Hole 8L ft SettinL Up 3L Man Hours Water Line 55 :%!an IIours * *. $648.'00 '.,:."$b00.00 $I59.0Cl :i $28.25,,, $&, r: %482.so. $5, $ $5, $22 I. 50 $7, $ $~3, $282. (2'3 8, $ $5, $ $5, q'lr33.00 $6, $ $h, $ , S2I5.m $9,380~00 $&03.00 $550. (30 ' I

41 3 7. tr), 5 ij..... (*A- -

42 ENGINEERS STATEMENT I am a professional engineer registered in the Association of Professional Engineers of B.C. At the time of the drill program covered in this report I was president of Consolidated Cinola Mines Ltd. one of the owners of the mineral claims. The company's address is Howe Street, Vancouver B.C. V6C 2T6. I have been pro&essionally employed in the mining industry for 35 years. The drilling covered in this report was supervised by E.A. Ostensoe, a consulting geologist of 24 years 0 experience. His certification statement is included herein. I have known Mr. Ostensoe for 25 years and recommended him for the assignment. K-.G. Sanders, P. Eng. May 29, 1985 Vancouver B.C.

43 -1 8- CERTIFICATION I, Erik A. Ostensoe, a consulting geologist vith office and residence in Vancouver, British Columbia certify that: 1. I am a 1960 B.Sc. (Honours Geology) graduate of the University of British Columbia and I have worked as a mineral exploration geologist for twenty-four years. 2. I am a Fellow in good standing of the Geological Association of Canada and a member in good standing of the Canadian Institute of Mining and Metallurgy and the Association of Exploration Geochemists. 3. I personally supervised the program of diamond drilling discussed in the accompanying report and I have reviewed several published and private reports that pertain to the Cinola gold deposit. Erik A. Ostensoe, geologist c

cpw 6. E. Spencer Engineering Ltd. HANNA 9 M. C. 104 REP 0 RT DIAMOND DRILLING PROGRAMME LIARD MINING DISTRICT, K.T.S. FOR TAURUS RESOURCES LTD.

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