RECEIVED APR NELSON GRANITE 1997 STRIPPING AND BULK SAMPLING PROGRAM FORGOTTEN LAKE CLAIM BLOCK. Forgotten Lake Area

52L01SW2001 2.18578 FORGOTTEN LAKE 010 NELSON GRANITE 1997 STRIPPING AND BULK SAMPLING PROGRAM FORGOTTEN LAKE CLAIM BLOCK Forgotten Lake Area NTS: 52L/1SW Kenora Mining Division 2.18578 2.1839 RECEIVED APR 1 7 1998 GEOSCIENCE ASSESSMENT' April 6, 1998 G.R. Zebruck Nelson Granite. J

- i - ACKNOWLEDGEMENTS The information on previous work done on the property was located in the assessment work files at the Ministry of Northern Development and Mines office in Kenora. Information about the past development was provided by Mr. Carter Nelson president of Nelson Granite Limited. Other information such as machine hours and expenses were provided from company internal files.

TABLE OF CONTENTS 52L01SW2001 2.18578 FORGOTTEN LAKE 0 10C Page Acknowledgements... i Introduction... l Location and Access... l Geology: West of Forgotten Lake... l Geology: East of Forgotten Lake... 3 Previous Work... 3 Purpose of the 1997 Program... 4 Equipment Used... 4 1997 Program... 5 Results... 5 FIGURES Page Fig. l Location of the Forgotten Lake Property... 2 Fig. 2 Forgotten Lake Claim Group... 6 Fig. 3 Location of Excavation Site 1... 7 Fig. 4 Excavation at Site 1... 8 Fig. 5 Location of Excavation Sites 2 to 4... 10 Fig. 6 Excavation at Site 2... 11 Fig. 7 Excavation at Site 3... 13 Fig. 8 Excavation at Site 4... 13 PLATES Page Plate l Site l Looking Southwest... 9 Plate 2 Site l Yields Good Quality Blocks... 9 Plate 3 Site 2 Looking South... 12 Plate 4 Site 2 Looking West... 12 Plate 5 Site 3 Looking South... 14 Plate 6 Site 4 Looking South... 14

- iii - APPENDICIES Page A-l Statement of Expenditures... 16 A-2 Expenditure Summary... 18 A-3 Employees Names and Addresses... 19 A-4 References... 20

Introduction In 1997 Nelson Granite carried out a stripping and bulk sampling program in a new area northeast of Forgotten Lake. Excavations were made at four different locations on Mining Claims K-1178201 and 1178202. In order to gain access to this area a three kilometer gravel road was constructed by the company. Road building began September l, 1996 and access to the test sites was secured before the end of that year. Stripping and bulk sampling commenced December 30, 1996 and the program lasted three months ending March 22, 1997. Location and Access The Forgotten Lake Property is located in the District of Kenora approximately 9 kilometers north of the village of Redditt. Access to the property is afforded by taking Highway 658 north of Kenora, Ontario toward the village of Redditt. The English River Road an all weather gravel logging road continues north from Hwy. 658. At kilometer 42 on the English River Road the Forgotten Lake Road built by Nelson Granite proceeds in a southeasterly direction a distance of three kilometers. The location of the start of this road is easily recognized by a gate at it's entrance having two triangular granite blocks as gate posts. Geology; West of Forgotten Lake Storey describes the rocks at this location: "The rock is white weathering, light brown biotite granite. It is porphyritic with brown feldspar phenocrysts to 2 cm. in length in a medium grained matrix. There are two predominant joint directions 30 0 and ISO 0 ; both are vertical. The joints are spaced 2 to 3 m. Sheeting is l to 2 m at the surface and apparently thickens with depth. Two distinct colours are available at this site: brown, and pink that grades to a distinct purple shade to the south. There appears to be only a small amount of purple granite present." Subsequent work in 1989 when a bulk sample was removed and a sample drill hole in 1995 indicates that the golden brown colour of the stone is a product of weathering and that at depth the unweathered material is a beige colour.

Fig. l Location of the Forgotten Lake Property Sand S Lake J English \ River S. Road N. r V fl*3* fe* Forgotten Lake Property Red Deer Lake Minaki. C.N.R. Redditt Hwy 658 Black Sturgeon Lakes Hwy 17 Scale 1:250000

- 3 - Bulk sampling in 1996 at a location about 100 meters north of the old premiere quarry site encountered a green megacrystic granite below a weathered layer of yellow granite. The material was somewhat similar to the Pine Green granite currently being quarried by Palin Granite Canada Inc. Geology; East of Forgotten Lake The rock here is similar in many respects to that found on the west side of the lake. The size of the feldspar phenocrysts tend to be larger up to 5 cm. in length. Sample drilling done in 1995 indicates that the predominant colour is green. At surface and along fractures this granite weathers to a yellow colour. Depth of weathering varies from 30 centimeters to 1,5 meters or more. There are also areas of pink megacrystic granite with a grey matrix and to a lesser extent pink to red megacrystic granites. The texure of these granites are similar regardless of colour. All have large lath like phenocrysts in a medium grained matrix. The best ledges tend to occur in the yellow-green granites. Joints are vertical to near vertical and are wide spaced greater than 10 meters in many places. Sheet thickness greater than three meters is common. Previous Work The area was mapped at a reconnaissance scale by Breaks et al. (1975-1978) and was included on a compilation map by Thurston and Bartlett (1981). C.C. Storey describes the deposit west of Forgotten Lake in "Building and Ornamental Stone Inventory in the Districts of Kenora and Rainy River" O.G.S. Mineral Circular 27 which summarized field work done in 1982 and 1983. Previous work done by Nelson Granite included prospecting, geological mapping and mechanical stripping. In 1989 a bulk sample was removed in the area west of Forgotten Lake by Canital Granite of Winnipeg under an agreement with Nelson Granite. The quarry face was advanced in a southerly direction until the granite

- 4 - became streaky and began changing colour to pink. Production ceased because the golden coloured rock (a feature of surface weathering) was confined to the top l to 2 meters. Four shallow diamond drill holes were put down in 1995. One below the floor of the premiere quarry and the other three on ledges east of Forgotten Lake. The hole put down below the old quarry floor confirmed that the colour of the stone had changed to beige below the line of weathering. The three holes east of the lake intersected green granite below the line of weathering. In the fall of 1996 a stripping and sampling program was carried out in the vicinity of the old quarry. The quarry face was advanced in a southerly and easterly direction but no salable material was encountered. At a site about 100 meters north of the old quarry a g reen granite was encountered and a number of blocks were removed. Work did not continue here as the site was difficult and prospects looked better on the east side of the lake. Purpose of the 1997 Program The purpose of the 1997 program was to test a number of potential quarry sites on the northeast side of Forgotten Lake with the view to establishing a commercial granite quarry operation. Prospecting and sample drilling in this area suggested that the potential of finding a significant deposit of green granite was very good. Equipment Used The equipment used to carry out the program included a 215 Caterpillar backhoe used for stripping off overburden. Two Tammrock Commando self-propelled hydraulic quarry drills, and a Dresser 555 Payloader complete with rock working attachments ie. bucket, rock forks, and tipping boom. Benching was carried out using K-pipe explosives, 50 grain Trunkline detonating cord initiated by safety fuse detonators. Plugs and feathers were used for splitting and trimming blocks. A rock channeling burner was used at one location to burn slots prior to blasting.

- 5-1997 Program Stripping and bulk sampling was carried out at four locations northeast of Forgotten Lake Figs. 3 and 5. Most of the test quarry work was done at Site l where the granite was green in colour and large blocks could be extracted Fig. 4, Plates l and 2. At Site 2 the granite appeared lighter in colour a beige or yellow green below the line of weathering Fig. 6, Plates 3 and 4. Again large blocks could be extracted. The topography of this site is lower than Site l so that quarrying at depth may be more difficult due to the proximety of the water table. At Site 3 one small block was removed Fig. 7, Plate 5. colour of the granite was beige. At Site 4 a number of blocks were extracted but all were left on site Fig. 8, Plate 6. light green. black streaks in the blocks. The Colour here was variable pink, beige to There were numerous defects; pegmatite veins and Results The 1997 stripping and bulk sampling program was successful in that a commercial granite quarry is being established at Site 1. The ledge here is 4 to 5 meters thick yielding large gang saw sized blocks of good colour and uniform texture. Subsequent to this exploration program blocks from the deposit were sold in Canada, USA, Mexico and countries of the Far East. Demand for the material continues to grow and a seperate crew and new quarry equipment have been put in place to achieve commercial production.

- 6 - x l r 78737 i 1178202 i Fig. 2 NELSON GRANITE Forgotten Lake Claim Group Forgotten Lake Area Map G-2618

- 7 - Fig. 3 Location of Excavation Site l UTM: 403945 m E Zone 15 5547154 m N Wit Post 4 y^04ooo m E Forgotten K-1178201 5547000 m N Scale 1:5000 r O 100 200 meters 50

- 8 - Fig. 4 Excavation at Site l / / l Stripped Area.58 Ha. l l f l l Green Porphyritic MJo 3 f \ \ \ / Vertical Joints Quarry Faces - Excavation Limit " Line Brilled S Blasted 5M T hickness of Sheet Area Stripped "'in. Ledge 65 M

- 9 - Plate l Site l Looking Southwest Plate 2 Site l Yields Good Quality Blocks

- 10 - Fig. 5 Location of Excavation Sites 2 to 4 405000 m E 5548000 m N 4 Site 3 If Site 2 K-1178202 Site 4 C i. Post 2 Scale 1:5000 5.0 150 2.50 O 100 '00 meters

- 11 - v o?arse \Beige Granite Scale 1:500 15 meters Location: UTM: 404531 m E Zone 15 5547783 ra N Fig. 6 Excavation at Site 2-270* 2M nut Him LEGEND Vertical joint Thickness of Sheet Location of Ledge Ledge removed Area of Outcrop Stripped Work Area Pegmatite Dikes l J Area Quarried ; * Blocks remaining on Site -. * *i..... Line Drilled S Blasted RECEIVED

- 12 - Plate 3 Site 2 Looking South Plate 4 Site 2 Looking West

- 13b - Fig. 8 Excavation at Site 4 A /l 2.5 M Limit of Excavation Excavation Face A B Ledges Vertical Joints Sheet Thickness Vertical Profile B-A v i n Colour Variation ^.. Yellow ^SL. Pink B.J* t Porphyritic Granite \ *" LEGEND \\ Horizontal Fracture Pegmatite Veins Black Knots Black Streaks

- 13a - Fig. 7 Excavation at Site 3 85"-* Location: UTM: 404914 m E Zone 15 5547920 m N t Scale 1:100 3 Block left on sit'e LEGEND Vertical Joints Sheet Thickness Location of Ledge Outcrop Boundary Line Qrilled S Blasted Ledge Removed [^ t Area Quarried meters Vertical Fractures Yellow - Beige Porphyritic Granite 90'-

- 14 - Plate 5 Site 3 Looking South Plate 6 Site 4 Looking South

- 5a - 1997 Program Stripping and bulk sampling was carried out at four locations northeast of Forgotten Lake (Fig's 3 and 5). Site l An area of.58 hectars was stripped off at Site l both below and on top of a granite ledge having a sheet thickness of about 4 meters. The depth of overburden was from nil to 2 meters and because the work was done during the winter, and soil was mixed with snow the depth of overburden at any given spot was difficult to determine. The total area was stripped to bedrock. The deposit is part of the Lount Lake Batholith a large, complex, syntectonic to late tectonic pluton, composed predominantly of massive porphyritic granodiorite and porphyritic quartz monzonite (Breaks et al. 1978). At site l the stone is coarse grained porphyritic granite composed of green potassic feldspar lath shaped phenocrysts in a matrix of plagioclase, potassic feldspar, quartz and biotite. There is a weathered layer at surface which varies in thickness from 30 centimeters to l meter or more. Here and along horizontal and vertical joints the colour of the granite is yellow. Below this the unweathered granite is green and the contact between the two is sharp. Bulk sampling was carried out on the top sheet which varied in thickness from 3 to 5 meters. Vertical joints were very wide spaced 10 to 20 meters with a predominant direction of 40 0. These joints dip steeply to the northwest at 5 0 to 8 0 from vertical. A large quarry face was opened up during bulk sampling (Plates l and 2). A total of 78 large blocks of good quality were removed. Site 2 There was no stripping done at site 2 with the exception of an area east of the ledge. Here about l meter of material was stripped off over an area of.05 hectars to provide a work area at the ledge face but was not stripped to bedrock. The rock at Site 2 is a coarse grained beige granite. Some light brown lath shaped potassic feldspar phenocrysts were observed

- 5b - in a coarse grained matrix of plagioclase, potassic feldspar, quartz, and biotite. Phenocrysts were 1.5 to 2 centimeters long. Bulk sampling took place on a 2 to 3 meter thick sheet (Fig. 6 Plate 3 and 4). Two sets of wide spaced vertical joints were observed one at about 320 0 spaced 15 meters or more and a second at 15 0. Closer spaced joints at 75 0 and 65 0 were also observed. Pegmatite veins were found in the south part of the outcrop area and they varied in thickness from 10 to 30 centimeters. In the quarried face there is a discontinuous horizontal fracture about 1 meter above the ledge floor. Large blocks can be quarried at this site from the top sheet but it is not known if the colour is the same deeper in the deposit. Grain size seems to change as one moves away from the site. Phenocrysts get larger 3 to 5 centimeters going east and smaller going west. A number of large blocks are left at the quarry face (plate 3) and about 10 blocks plus waste material are piled near the quarry area. Two blocks were; shipped :to Nelson.;Granite.'s monument plant in Vermilion Bay, Ontario for sawing and polishing tests. Site 3 There was no stripping done at this site. One small block was quarried but remains on site (Plate 5). The granite at this spot had some black streaks but much of the area around it looked better. The granite is yellow porphyritic similar in texture and composition to the weathered portion found at Site 1. Below this top sheet the granite may be green. Vertical joints are very wide spaced at 90 0. The sheet is 1.2 meters thick at the excavation sitebut thickens to 2 meters in the southwest direction. Large blocks can be obtained from the sitebut black streaksmay be a problem foe quality in some places. Site 4 There was no stripping done at site 4. The granite here is variable pink to yellow porphyritic granite. There are many defects including grain size variations from porphyritic to pegmatitic, black xenoliths,.and black streaks all of which combine to make the material unacceptable from a marketing viewpoint.

- 5c - Results The 1997 stripping and bulk sampling program was successful and a commercial granite quarry was established at Site 1. 78 large blocks of good quality were removed from the site. The yield from the blocks was 12,693 cubic feet of granite. Two blocks or 331 cubic feet were delivered to our Vermilion Bay plant for sawing and polishing tests. The results of these tests showed that the granite saws and polishes well with a low diamond consumption on the saw. This granite is harder to wotk with.hand tobls than :fiaer grained granites and is more suited for use as a dimension stone than for monuments. Samples were sawn and distributed to our agents and major customers. In the initial market tests 3,320 cubic feet of stone was shipped to Eastern Canada principally to the fabricators in Quebec, 1,591 cubic feet to fabricators in British Columbia, 487 cubic feet to fabricators in Eastern USA and 1,576 cubic feet to fabricators in the Midwest USA. The stone was successfully market tested and new orders for buildings in Mexico, Taiwan, and other destinations in Southesat Asia and United States have been or are currently (Aug. 98) being filled. The quarry has been outfitted with new drill equipment and loader and a trained crew. The deposit is hugh and the prospects for the quarry are excellent over a long period of time. Two blocks from Site 2 were also shipped to the plant at Vermilion Bay for sawing and polishing tests. The results were similar to the green granite at Site 1. Although the.colour is different and probably marketable the changes in grain size observed around this deposit makes development problematic. No further work is recommended for Site 3 and 4.

- 15 - APPENDICIES

- 16 - A-l Statement of Expenditures Type of Equipment Hours Dresser 555 Payloader 288 2 Tammrock Drills 1021* 215 Cat Backhoe 135 *includes fuel fi operator Cost/hour* $200/hour ^ 85/hour i 90/hour Total Total S 57,600 86,827 12.150 S156.577 Work Week Starting Ray Hertz Hrs. Kras. John Elders Hrs. Kms. Collin Hrs. Wrighton Kms. Gabriel Fobiste Hrs. Kms. Dec. Jan. Jan, Jan. Jan. Feb. Feb. Feb. Feb. Mar. Mar. Total 30/96 6/97 13/97 20/97 27/97 3/97 10/97 17/97 24/97 3/97 10/97 48 47 43 48 48 49 48* 43* 48 285 265 292 296 293 289 295 287 299 29 47 47 48 48 48* 42* 46 48 48 48 92 98 97 99 98 423 2601 500 680 **quarry labour 44 47 47 48 48 49 48* 46 48 48 48 521* 88-98 - 99-92 98-99 - 574 28 240 22 264 42 342 27 284 7 278 45* 342 32 327 33 316 28 323 264* 2716 Work Week Start ing Dec. 30/96 Jan. 6/97 Jan. 13 Jan 20/97 Jan 27/97 Feb. 3/97 Feb. 10/97 Feb. 17/97 Feb. 24/97 Mar. 3/97 Mar. 10/97 Total Maintainance Harold Leutschaft Hrs. Kms. 23* 18* 14 20 17* 14 3* 17* 184 16 163 588 288 299 604 288 298 308 592 299 3564 Conrad Hrs. - - - - 16* 10 10 10 11 10* 68 Musj i Kms. - - - - 298 164-299 298-1059 Supervi Carter Hrs. 10 109 10 9 10 9* 108 11 10 106* sion Nelson Kms. 297 299 296 295 299 297 314 306 304 295 296 3298 Maintainance Harold Leutschaft 163 hrs. at ^ 20fhr...S 3,260 Conrad Musji 68 hrs. at S207hr............... 1,360 Total $ 4,620 Supervision Carter Nelson 106* hrs. at $25/hr......$ 2,663

- 17 - Statement of Expenditures con't Explosives 10 cases K-pipe explosives at S3257case...... $ 3,250 5 cases Trunkline at 3757case... 1,875 300 safety fuse at S2.35 each... 705 Total $ 5,830 Mapping and Report George Zebruck Mar24/97Mapping 4 hrs. - kms. Apr. 6/98 Report 8 hrs. 25 kms. 7/98 " 8 hrs. 26 kms. 8/98 " 8 hrs. 26 kms. 9/98 13/98 " " 8 hrs. 8 hrs. 25 kms. 26 kms. 14/98 ". 8 hrs. 2? kms. Total 52 hrs. 153 kms. 52 hrs. at $20/h^....... S 1,040 Mileage Ray Hertz 2,601 Kms. John Elders 680 Collin Wrighton 574 Gabriel Fobister 2,716 Harold Leutschaft 3,564 Conrad Musji 1,059 Carter Nelson George Zebruck 3,298 153 Total 14,645 Kms. at $.30/Km....... $ 4,394

- 18 - A-2 Expenditure Summary Equipment Cost... S 156,577 Quarry Labour... 3,174 Maintainance... 4,620 Supervision... 2,663 Explosives.......................................... 5,830 Mapping S Report... Mileage....... 1,040 4.394 Total S 178,298

- 19 - A-3 Employees Names 8c A ddresses Ray Hertz Hwy. 17 West Vermilion Bay, Ontario POV 2VO John Elders RR#1 Essex Rd. Kenora, Ontario P9N 3W7 Collin Wrighton 446 3rd. St. South Kenora, Ontario P9N 1J1 George Zebruck RR#1 Airport Rd. Kenora, Ontario P9N 3W7 Gabriel Fobister Jr. General Delivery Grassy Narrows I.R. Grassy Narrows, Ontario Carter Nelson P.O. Box 178 Vermilion Bay, Ontario POV 2VO Harold Leutschaft RR#1 Vermilion Bay, Ontario POV 2VO Conrad Musji General Delivery Vermilion Bay, Ontario POV 2VO

- 20 - A-4 REFERENCES Breaks, F.W., Bond, W.D., Mcwilliams, G.H., Gower, C.F., and Stone Denver 1975e: Operation Kenora-Sydney Lake, Kenora-Minaki Sheet, District of Kenora: Ontario Div. Mines, Prelim. Map. 1030 Geol. Ser., Scale l inch to l mile or 1:63,360. Geology 1974 Storey, C.G. 1986: Building and Ornamental Stone Inventory, Kenora and Rainey River Districts; Ontario Geological Survey, Mineral Deposit Circular 27, 168p.

Ministry of Northern Development Declaration of Assessment Work Performed on Mining Land -,.- e..*.,,on 52L01SW2001 2.18578 FORGOTTEN LAKE 900 if subsectionso5(2rand 66(3) of the Mining Act. Under section 8 of the review the assessment work and correspond with the mining land holder. Recorder, Ministry of Northern Development and Mines, 6th Floor, Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. - Please type or print in ink. ^ f) -fl V& O 1. Recorded holder(s) (Attach a list if necessary) 0 Name Client Number Address ^- P.O. Name o/j Telephone Number Fax Number Client Number - 1 &S o -^ 72-i Address Telephone Number Fax Number 2. Type of work performed: C heck ( ^ ) and report on only ONE of the following groups for this declaration. D Work Type Geotechnical: prospecting, surveys, assays and work under section 18 (regs) M or G-Plan Number Physical: drilling, stripping, trenching and associated assays Commodity Office Use Rehabilitation Total S Value of r 6 ii Work Claimed J / J 3, J 9 X SrnT From, y,, 96 To X* W 9jf/ NTS Reference 3O Day j WontFT Year Day Month Year Global Positioning System Data (if available) Township/Area Mining Division ci/ em AA n\ Resident Geologis't,, District ^b/fym^lfij 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 Telephone Number ^7^0X?6G: M. ^ gts/luc^/ic Wtf&f rlrtfpo/tt ykd. /(esv'oa/} 0^1. Name Fax Number. Telephone Number SHS- I^S^ Address Fax Number Name Address Telephone Number Fax Numl er ^\ T 4. Certification by Recorded Holder or Agent... l ^GO^GG: K. ^ (5 /S /?^ Cr^ do hereby certify that niiceiveq)j RPfiQi APR 1 7 1288 ^ iiemce ASSESSMENT! OFFICF! 1 have personal knowledae 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 completion and, to the best of my knowledge, the annexed report is true. r

. 5. Work to be recorded and distributed. the mining land whew work was performed, must accompany this.form, w ;,. ; ; ^ ;?? j ju g 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. eg eg TB 7827 1234567 Number of Claim Unite, f dr ott*rt mining^a&d, fl*fc hectares. 16 ha 12 Work can only be assigned to claims that are contiguous (adjoining) to at the time work was performed. A map showing line contiguous fink Value of work Value of work Cjtorrfdiedibn Tfihr '.'applied to this CiSairfux other e V ^claim. mining land.^^ S26, 825 0 fa S 7 /l /t/f/1 *7/ f f J ' UUU f ffi 1 Q O fi A Value of work assigned to other mining claims. o o y Uv N/A S24,000 S24,000 0 Bank. Value of work to be distributed at a future date. 82,825 0 eg 1 2 3 4 5 1234568 n~r?2vi //7#JLOJL /nz 137 /f nzsi //t/? ZS G 2 2-4 L z 2. S 8, 892 US, 345 SI y433 S 4,000 ~- 2-,000x Soo/ AM 0 x 0 o*,6l3 X H t 3H7/,x~ S4.892 MD, m. 55 OS6 \ 6 7 8 9 10 11 12 13 14 15 Column Totals 1"?*^* 3 t O H O I3,OHO 1^5 j 2-5?, 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. Signature of Recorded bbder or Agent Authorized^ Writing Date 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 ) i n the boxes below to show how you wish to prioritize the deletion of credits: ^ 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 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 - ^ 0241 (02/96) RECEIVED! APR 1 1 K?3 ;0.NJ GEOSCIENCE ASSESSMENT! OFFICE Deemed Approved Date Date Notification Sent Date Approved Total Value of Credit Approved Approved for Recording by Mining Recorder (Signature)

Ontario Ministry of Northern Development and Mines Ministers du Developpement du Nord et des mines Statement of Costs for Assessment Credit iztat des couts aux fins du credit devaluation.mining Act/Loi sur les mines ' Transaction No./N0 de transaction f J. Win, m fe.183 Personal information collected on this form is obtained under the authority of the Mining Act. This information will be used to maintain a record and ongoing status of the mining claim(s). Questions about this collection should be directed to the Provincial Manager, Minings Lands, Ministry of Northern Development and Mines, 4th Floor, 159 Cedar Street, Sudbury, Ontario P3E 6A5, telephone (705) 670-7264. Les renseignements personnels contenus dans la presente formula sont recueillis en vertu de la Lol sur les mines et serviront d tenir a jour un registre des concessions minieres. Adresser toute quesiton sur la collece de ces renseignements au chef provincial des terrains miniers, ministere du Developpement du Nord et des Mines, 159, rue Cedar, 4e etage, Sudbury (Ontario) P3E 6A5, telephone (705) 670-7264. 1. Direct Costs/Couts directs 2. Indirect Costs/Couts indirects Type Wages Salaires Contractor's and Consultant's Fees Droits de ('entrepreneur et de 1 'expert ~ consell Supplies Used Fournltures utlllsees Description Labour Main-d'oeuvre Field Supervision Supervision sur le terrain Type. rupr^c^raefja-f Type {~*Pi,95. ^6 Amount Montant 77=14 2443 046 5S3D Totals Total global fohs7 toho * * Note: When claiming Rehabilitation work Indirect costs are not allowable as assessment work. Pour le remboursement des travaux de rehabilitation, les couts indirects ne sont pas admissibles en tant que travaux devaluation. Type Transportation Transport Description Type y^ ^Q ^ t\ t L e/^fa e Amount Montan! 4,3^ Totals Total global Equipment Rental Location de materiel Jype D^sieA. t;c,s L.oAot(^ y. TA^ r\t-i(-4- D^'L-LS 2. (S (LA r 6 Ac K H o g" 57,^00 S6.S17 (2,150 Total Direct Costs Total des couts directs 5830 f 56 577 H3W Food and Lodging Nourriture et hebergement Mobilization and Demobilization Mobilisation et demobilisation Sub Total of Indirect Costs Total partial des couts indirects Amount Allowable (not greater than 20H of Direct Costs) Montan! admissible (n'excedant pas 20 K des couts directs) Total Value of Assessment Credit Total of Direct and Allowable ndlrect costs) Valeur totale du credit devaluation (Total des eotits directs et Indirect* admissible* H.31V VH uazig Note: The recorded holder will be required to verify expenditures claimed in this statement of costs within 30 days of a request for verification. If verification is not made, the Minister may reject for assessment work all or part of the assessment work submitted. Note : Le titulaire enregistr6 sera tenu de verifier les depenses demandees dans le present etat des couts dans les 30 jours suivant une demande d cet effet. Si la verification n'est pas effectuee, le ministre peut rejeter tout ou une partie des travaux devaluation presented. Filing Discounts 1. Work filed within two years of completion is claimed at 100 07o of the above Total Value of Assessment Credit. 2. Work filed three, four or five years after completion is claimed at SO.% of the above Total Value of Assessment Credit. See calculations below: Total Value of Assessment Credit x 0.50 = Certification Verify^ Statement of Costs Total Assessment Claimed l hereby certify: that the amounts shown are as accurate as possible and these costs were incurred while conducting assessment work on the lands shown on the accompanying Report of Work form. that as (Recorded Holder Agent, Position in Company) to make this certification l am authorized Remises pour depdt 1. Les travaux deposes dans les deux ans suivant leur achievement sont rembourses a 100 0A de la valeur totale susmentionnee du credit devaluation. 2. Les travaux deposes trois, quatre ou cinq ans apres leur achievement sont rembourses a 50 "/o de la valeur totale du credit devaluation susmentionn6. Voir les calculs ci-dessous. Valeur totale du credit devaluation Attestation de l'etat des coi ts Et qu'a litre de Evaluation totale demandee,-- --.. - l RECEIVED APR 1 1 1593 J'atteste par la presente : que les montants indiques sont defenses ont et6 engagers pour e'ffe'c'iuyf 165 iravaux d*evaluatiori sur les terrains indiqu6s dans Ijtformule de rapport de travail d-joint. * 185 (or\s6 (titulaire enregistr6, reprisentant. poste occup6 dans la compagm a faire cette attestation. 0212 (04/91) Nota : Dans cette forlmile, lorsqu'il designe^rfes personnes, le masculin est utilis6 au sens neutre

Ministry of Ministere du Northern Development Developpement du Nord and Mines et des Mines Geoscience"Assessment Office 933 Ramsey Lake Road September 9, 1998 6th Floor Sudbury, Ontario CARTER BRENT NELSON P3E6B5 BOX 178-66 ARMSTRONG STREET VERMILION BAY, Ontario Telephone: (888) 415-9846 POV-2VO Fax: (877)670-1555 Visit our website at: www.gov.on.ca/mndm/mines/lands/mlsmnpge.htm Dear Sir or Madam: S ubmission Number: 2.18578 Subject: Transaction Number(s): Status W 9810.00076 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 e-mail at gatesb2@epo.gov.on.ca or by telephone at (705) 670-5856. Yours sincerely, ORIGINAL SIGNED BY Blair Kite Supervisor, Geoscience Assessment Office Mining Lands Section Correspondence ID: 12758 Copy for: Assessment Library

Work Report Assessment Results Submission Number: 2.18578 Date Correspondence Sent: September 09, 1998 Assessor: Bruce Gates Transaction Number W9810.00076 First Claim Number 1178201 Township(s) l Area(s) FORGOTTEN LAKE Status Approval After Notice Approval Date August 29, 1998 Section: 10 Physical PSTRIP 18 Other INDUS The revisions outlined in the Notice dated July 15, 1998, have been corrected. Accordingly, assessment work credit has been approved as outlined on the Declaration of Assessment Work Form accompanying this submission. Correspondence to: Resident Geologist Kenora, ON Assessment Files Library Sudbury, ON Recorded Holder(s) and/or Agent(s): George R. Zebruck KENORA, ONTARIO CARTER BRENT NELSON VERMILION BAY, Ontario Page: 1 Correspondence ID: 12758

\ Momtgo /. Stop Lake Area-G-2523 HIGHWAY AND ROUTE No OTHER ROADS TRAILS LEGEND SURVEYED LINES TOWNSHIPS. BASE JLlNES. ^ LOtS. MINING CLAIMS, PARCELS, ETC UNSURVEYED LINES: LOT LINES PARCEL BOUNDARY MINING CLAIMS ETC, R Al LWAY AND R IGHJT ^F WAV UTILITY LINES NON PERENNIAL STREAM F LOODING OR F LOOOING SUBDIVISION OR COMPOSITE ORIGINAL SHORELINE" MARSH OR MUSKEG MINES TRAVERSE MONUMENT DISPOSITION OF CROWN LANDS TYPE OF DOCUMENT QUNWV PEW*T APMJCATWN OCT. 07/9* 178737V1178202 PATENT, SURFACE * MINING RIGHTS.SURFACE RIGHTS ON LV. MINING RIGHTS ONLY L, LEASE, SURFACE ft MINING RIGHTS ".SURFACE RIGHTS ONLY ".MINING RIGHTS ONLY ^ LICENCE OF OCCUPATION.... W ORDER IN-COUNCIL...,......,. OC RESERVATION CANCELLED SAND 4 GRAVEL MOTE! MINING momts IN PARCIU* FATiNTEO PWlOB TO MAY *, 1*13. VESTED IN ORIGINAL PATENTEE tv THE PUILt LAND* ACT. BIO 1*70, CHAP 1M. MC H. IUMCC l 178271 M.R.O. ^ MINING RIGHTS ONLY S.R.O. - SURFACE RIGHTS ONLY M.+ S. - MINING AND SURFACE RIGHTS OrdwNo. D*t. Dnpo^tton FH. W.ZO/BI. 11/4/12.*.H.*Hlt 1*4*01 StBfieg* JjOtSMIT - joj W-24/96 MAR 20/86 V-K-67/93 OCC17/93 9*0 ( II78272 4 1 t. N O R A THE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES, AND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE WIN ING CLAIMS "SHOULD CON SULT WITH THE MINING RECORDER, MINISTRY OF NORTHERN DEVELOP MENT AND MINES. FOR AD DJTIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN HEREON. SCALE; 1 INCH = 40 CHAINS MN R KENORA FORGOTTEN LAKE ADMINISTRATIVE DISTRICT MINING DIVISION KENORA LAND TITUS/ REGISTRY DIVISION KENORA Ministry of Natural Resource* Deacon Lake and Redditt Twp. Area - G-26H JANUARY, 1*64 52L01SW2001 2.18578 FORGOTTEN LAKE 2 00