O:-TJCE. Report On. Diamond Drilling Program. Tudor Township, Ontario. Holes 78 to 83. Lydia Diamond Exploration of Canada Ltd.

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31C12NE2007 2.23019 TUDOR 010 Report On Diamond Drilling Program Tudor Township, Ontario Holes 78 to 83 By Lydia Diamond Exploration of Canada Ltd. February 15, 2002 FE8 Z O 2002 GEOSCIENCE ASSESSMENT O:-TJCE

Index Page Introduction l Property l Location and Access l General Geology 2 Diamond Drilling 2 Appendix I Drill Location Plans, Sections and Drill Logs

Introduction Diamond drilling was carried out in six holes on claims 1195181, 1242379 and 1195178 in the utheast part of Tudor Township, Ontario to test geophysical anomalies and dykes. A total of 871 feet was drilled. Property The property consisted of 44 claims containing 376 claim units at the time of drilling. The claims are numbered 1077074, 1077091 to 1077095 inclusive, 1167015 to 1167026 inclusive, 1167045 to 1167048 inclusive, 1167279, 1167289, 1184029 to 1184030, 1195071 to 1195072, 1195077, 1195165, 1195167, 1195169, 1195177 to 1195181 inclusive, 1195183, 1242376 to 1242379 inclusive and 1242905 to 1242906 in the uth east part of Tudor Township and the west part of Grimsthorpe Township, Southern Ontario Mining Division. They are held in the name of Lydia Diamond Exploration of Canada Ltd. An adjoining property in Grimsthorpe Township consisted of 9 claims containing 134 claim units at the time of drilling. The claims are numbered 1235047 to 1235052 inclusive and 1235054 to 1235056 inclusive in the north central part of Grimsthorpe Township, Southern Ontario Mining Division. They are held 50^o in the name of Emilia, Princess von Anhalt and 50^o in the name of Jurgen Freidman Prinz von Anhalt. Location and Access The Tudor property is located about 20 km north of Madoc, Ontario. Madoc lies at the junction of Highways 7 and 62. Highway 7 runs east from Toronto through Peterborough to Ottawa; Highway 62 runs north from Belleville to Bancroft. Madoc is about 41 km north of Belleville. Access to the property is by secondary township roads which run east from Highway 62. The Grimsthorpe Township property is located about 10 km east of Gilmour, Ontario. Gilmour lies east on Highway 62 on the Weslemkoon Lake Road about halfway between Madoc and Bancroft. Access to the property is by a forest access road which runs from the Weslemkoon Lake Road through the center of the property. Property locations are shown on the enclosed map

General Geology The property is underlain by a volcanic to sedimentary sequence intruded by mafic to granitic rocks. Metamorphic grade is generally high. The area is part of the theproterozoic Grenville province of the Precambrian shield. In general the east part of the property is underlain by mafic intrusive rocks of the Lingham Lake complex with mafic volcanics to the west and uth, with a narrow band of felsic volcanics followed by carbonate metasediments further west. There has been previous exploration in the area for gold and lead-zinc. Diamond Drilling Drilling was carried out by George Downing Estate Drilling of Hawkesbury, Ontario. Holes were logged and drillings supervised by Ardian Peshkepia M.Sc.. Jeremy S. Brett M.Sc. laid out the drill holes and was in overall charge of the program. Core was transported to and is stored in Lydia's core storage facility. Purpose of the drilling for each hole is given on the drill log. Drill logs and sections are included in Appendix I. A brief summary follows. Hole No. 78 Location 299840E, 4952470N Azimuth 242 Dip-45* Core NQ Depth 116 ft. (35.36m) Purpose - Strike of 'E' dyke Hole No. 79 Location 298509E, 495581 ON Azimuth 215 Dip-45* Core NQ Depth 156 ft. (47.55m) Purpose - Test anomaly P41 Hole No. 80 Location 298887E, 495531 ON Azimuth 240 Dip-45* Core NQ Depth 135ft. (41.15m) Purpose - Test anomaly D12

Hole No. 81 Location 298870E, 4955300N Dip - 90* Core NQ Depth 139 ft. (42.37m) Purpose - Test anomaly DI2 Hole No. 82 Location 299200E, 4955450N Azimuth 270 Dip-45* Core NQ Depth 136ft. (41.45m) Purpose - test anomaly P40 Hole No. 83 Location 298475E, 4955807N Dip - 90* Core NQ Depth 189 ft. (57.61m) Purpose - Test anomaly P41

Appendix I Drill Location Plans & Sections Drill Logs

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BH78 LYDIA DIAMOND EXPLORATION LTD. WOLF LAKE PROPERTY, TUDOR TOWNSHIP, BANNOCKBURN, ONTARIO DIAMOND DRILLING LOG DIAMOND DRILL HOLE 78 Drilled by: George Downing Estate Drilling, Hawkesbury l Kalumet, Quebec Drill l Core Type: Longyear 70 Diamond Drill l NQ gauge core Date Drilled: August 2001 Location: Lot 8, Concession 3, Tudor Township, Ontario Claim: 1195181 UTM Reference. Azimuth: 242 Dip: -45 Depth: 116 FT Drillhole Surveying: None Purpose of Hole: Strike determination of "E" dike Logged by: Ardian Peshkepia, M.Sc. Exploration Manager: Jeremy S. Brett, M.Sc. Interval Footage Rock Type Colour Grain Size Texture Structure Alteration Mineralization Notes 0-10' 10 Overburden 10-26' 26-31' 31-36' 16 5 5 Mafic metavolcanics Metasediments? Meatvolcanics dark grey dark grey grey fine fine aphanitic banded aphanitic fabric quartz carbor veins silicification? rare sulfides rare sulfides pyrite along the fabric planes secondary biotite 1 mm 36-41' 41-43' 5 2 Metavolc/metased. Metavolcanics/ metasediments? grey light grey whitish fine fine aphanitic fabric silicification? silicification? rare sulfides shugary texture Pagel

BH78 43-51" 8 Mafic metavolcanics grey fine aphanitic quartz carbonate veins brownish staining 51-65' 65-67' 67-91' 91-101' 101-116' 14 2 24 10 15 Mafic intrusive Metavolcanics Mafic metavolcanics Mafic metavolcanics Metavolcanics/ metasediments greenish to black light grey whitish dark grey greyish green greyish black coarse fine fine fine fine aphanitic aphanitic aphanitic banded silicification? croos-cutting quartz carb, veins chlorite 5-1 Omm carb, veins thin sulfide veins Page 2

Dr. II H c le Sec Ho U 7 B So i i 9 jr y B l l u. d? r f w p O S ea /e l-200 O S" )* e. f r t 5

bh79 DIAMOND DRILLING LOG DIAMOND DRILL HOLE 79 Drilled by: George Downing Estate Drilling, Hawkesbury l Kalumet, Quebec Drill l Core Type: Longyear 70 Diamond Drill l NQ gauge core Date Drilled: August 2001 Location: Lot 8/Con 6 Claim: UTM Reference: 0298 509mE; 4955 810mN Azimuth: 215 Dip:-45 Depth: 156' Drillhole Surveying: None Purpose of Hole: Testing the ground geophysical anomaly (P41: Friedmar) Logged by: Ardian Peshkepia, M.Se. Exploration Manager: Jeremy S. Brett, M.Sc. Interval 0-5 Footage 5 Rock Type Overburden Colour Grain Size Texture Structure Alteration Mineralization Notes 5'-11' 11 '-67' 67-95 95-116 6 56 28 21 Meta volcanics Dark grey Metavolcania Greyish Metavolcanic: Greyish Metavol/ metased? white black Massive Banded Banded Banding Strong fabric Strong Fabric 1-2 mm thick alternating pseudolayers Silicification Sericite? Chlorite, sericite? Pyrite, pyrrho. veinlets Disseminatec pyrite, pyrrho 5-1 (m sulfide Py. Po in patches disseminated sulfides 3" quartz veir at10', 6" quar vein at 11' Thin carbon, veins 116-121 5 Metavolcanic Dark grey to black Aphanitic Fabric Strong Carbonate veins Page 1

bh79 121-135 135-142 142-156 14 7 14 Metavolcanici Metavolcanic Metavolcanici Dark grey to black Greyish black Greyish black Banding Banding Banding Fabric Silicification Minor fracture Silicification carbonate veins Py.Po, quartz mm to cm carb, veins ir scale veins Page 2

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bh79 DIAMOND DRILLING LOG DIAMOND DRILL HOLE 80 Drilled by: George Downing Estate Drilling, Hawkesbury l Kalumet, Quebec Drill l Core Type: Longyear 70 Diamond Drill l NQ gauge core Date Drilled: August 2001 Location: Lot 8/Con 6 Claim: UTM Reference: 0298 887mE; 4955 310mN Azimuth: 240 N Dip:-45 Depth: 135' Drillhole Surveying: None Purpose of Hole: Testing the ground geophysical anomaly (D12: Jeremiah) Logged by: Ardian Peshkepia, M.Se. Exploration Manager: Jeremy S. Brett, M.Sc. Interval 0-5' Footage 5 Rock Type Overburden Colour Grain Size Texture Structure Alteration Mineralization Notes 5'-63' 63-124 124-135 58 61 11 Metavolcanic! Green Metavolcanic Black Metavolcanic Black Massive Massive Fabric Strong Fabric Fabric Silicification quartz-carb. veins.chlorite Silicification quartz veins Py.Po.Chp. in veinlets, patches dissem. sulphides Dense quartz-carb. veining Po^y^hp Page 1

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bh79 DIAMOND DRILLING LOG DIAMOND DRILL HOLE 81 Drilled by: George Downing Estate Drilling, Hawkesbury l Kalumet, Quebec Drill l Core Type: Longyear 70 Diamond Drill l NQ gauge core Date Drilled: August 2001 Location: Lot 8 /Con 6 Claim: UTM Reference:0298 870mE; 4955 300mN Azimuth: NA Dip:-90 Depth: 139' Drillhole Surveying: None Purpose of Hole: Testing the ground geophysical anomaly (D12: Jeremiah) Logged by: Ardian Peshkepia, M.Se. Exploration Manager: Jeremy S. Brett, M.Se. Interval 0-9 Footage 9 Rock Type Overburden Colour Grain Size Texture Structure Alteration Mineralization Notes 9'-24' 24-58 58-60 15 34 2 Metavolcanic Black Metavolcanic: Green Metavolcanic! Brownish Banded Massive massive Fabric Fabric Py.Po.Chp chlorite in patches carbonate up to 10mm Dense cross cutting quartz carb, veins secondary biotite Highly magnetic Secondary biotite along foliation plane 60-69 69-139 9 70 Metavolcanic! Greenish Metavolcanic Black Massive Massive Aphanitic Carbonate veining Dense carb, veins Stockwork Patches of chlorite, potas. altera. Page 1

00 O! ^ O ^(* OOP':/ 'V t; " r0 /^ -'^V 6 /, 5: ^ ^? 7 OS /60?/' 7// l l f. vi 'S U{ y V w 3 J W.O /^^ o/vvu K^^.fc7 '/-'i? i

bh79 DIAMOND DRILLING LOG DIAMOND DRILL HOLE 82 Drilled by: George Downing Estate Drilling, Hawkesbury l Kalumet, Quebec Drill l Core Type: Longyear 70 Diamond Drill l NQ gauge core Date Drilled: August 2001 Location: Lot 7/Con 6 Claim: UTM Reference: 0299 200mE; 4955 450mN Azimuth: 270 Dip:-45 Depth: 136' Drillhole Surveying: None Purpose of Hole: Testing the ground geophysical anomaly (P40) Logged by: Ardian Peshkepia, M.Se. Exploration Manager: Jeremy S. Brett, M.Se. Interval Footage Rock Type Colour Grain Size Texture Structure Alteration Mineralization Notes 0-4 4 Overburden 4'-16' 16-22 22-26 26-36 36-42 12 6 4 10 6 Metavolcanic Metavolc? grained gabbro? Metavolcanic Altered Mafic rock Gabbro? Greenish grey Greenish Greenish Greenish Greenish white Medium Aphanitic Subhedral euhedral Fabric Fabric Chlorite? Carbonate veins Uralite? secondary biotite secondary biotite amphibole? secondary biotite uralitization Plagioclase secondary biotite Plagioclase recrystalized metavolcanic' Quartz veins Page 1

bh79 42-54 54-72 72-81 12 18 g Gabbro/ Greenish diorite? black Mafic intrusive Green gabbro?7volc' Mafic intrusive? Grey Medium Medium Massive amphibole uralite, biotite uralite/chlorite Secondary biotite secondary biotite chlorite? Highly altered rock 81-96 15 Metavolcanic Green Aphanitic Fabric 96-106 106-114 114-136 10 8 22 Metavolcanic Mafic dike? Mafic intrusivi gabbro? Greenish grey Grey-greenist Greenish -medium Aphanitic Massive Chlorite patches of secondary biotite silification biotite uralite Quartz carb, veins 5 mm thick quartz veins Highly alterec mafic rock Page 2

Dr, II Hele Hou 9^ /y 96*77 8 l u. do f l ^P C/ M r. Sea f r (! S

bh79 DIAMOND DRILLING LOG DIAMOND DRILL HOLE 83 Drilled by: George Downing Estate Drilling, Hawkesbury l Kalumet, Quebec Drill l Core Type: Longyear 70 Diamond Drill l NQ gauge core Date Drilled: September 2001 Location:Lot 8/Con 6 Claim: UTM Reference: 0298 475mE; 4955 807mN Azimuth: NA Dip:-90 Depth: 189' Drillhole Surveying: None Purpose of Hole: Testing the ground geophysical anomaly (P41: Friedmar) Logged by: Ardian Peshkepia, M.Se. Exploration Manager: Jeremy S. Brett, M.Sc. Interval Footage Rock Type Colour Grain Size Texture Structure Alteration (Mineralization Notes 0-8 8 Overburden 8'-18' 18-77 10 59 Metavolcanic Metavolcanic Grey Grey Massive Banded Fabric Silicification chlorite sericite? Silicified disseminated sulphides Pyrite Pervasive pyrite, pyrrho 77-103 36 Metavolc? Greenish black Banded Inercalation of white and black bands 103-103.5 103.5-127 6" 23.5 Mafic dike Metavolc? Greenish brownish Greenish black Massive Banded Diabase dike Inercalation of white and black bands Page 1

bh79 127-129 129-139 139-154 154-163 2 10 15 9 Mafic dike Metavolc? Metavolcanic Metavolcanic Greenish brownish Greenish black greenish Dark grey black Massive Banded Massive Banded Thin carbon, veins, secon. biotite^ mm Silicified pyrrhotite pyrite Diabase dike Inercalation of white and black bands 163-189 26 Metavolcanic Greenish grey Aphanitic quartz veins secondary biotite Page 2

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ONTARIO MINISTRY Work Report Summary OF NORTHERN DEVELOPMENT AND MINES Transaction No: W0290.00313 Status: APPROVED Recording Date: 2002-FEB-20 Work Done from: 2001-AUG-15 Approval Date: 2002-FEB-21 to: 2001-SEP-10 Client(s): 300883 PRINZ, VON ANHALT 300933 PRINCESS, VON ANHALT 392675 LYDIA DIAMOND EXPLORATION OF CANADA LTD. Survey Type(s): PDRILL Work Report Details: Claim* 1167018 1167019 1167020 1167025 1167256 1195178 1195181 1235054 1235055 1235056 1242379 Perform 53,238 32,762 314,741 Perform Approve S3,238 S2.762 314,741 Applied 51,600 5800 S3,200 S4.800 51,600 S46 S2.845 55,096 Applied Approve 51,600 S800 S3,200 54,800 51,600 S46 S2.845 55,096 50 Assign S3,238 S2.008 314,741 Assign Approve 0 0 0 0 0 3,238 2,008 0 0 0 14,741 Reserve 50 50 S754 Reserve Approve 50 2004-JUN-14 2002-MAR-27 S754 2002-MAR-07 Due Date 2004-JUN-14 2004-JUN-14 2004-JUN-14 2004-AUG-20 2002-AUG-28 2002-AUG-28 2002-AUG-28 2003-JAN-05 520,741 520,741 519,987 519,987 31 9,987 519,987 5754 5754 Status of claim is based on information currently on record. 31C12NE2007 2.23019 TUDOR 900 2002-Feb-22 12:04 Armstrong-d Page 1 of 1

Ministry of Northern Development and Mines Date: 2002-FEB-21 Ministere du Developpement du Nord et des Mines Ontario GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5 LYDIA DIAMOND EXPLORATION OF CANADA LTD. SUITE 3009, PALACE PIER CT. TORONTO, ONTARIO M8V 3W9 CANADA Tel: (888) 415-9845 Fax:(877)670-1555 Dear Sir or Madam Submission Number: 2.23019 Transaction Number(s): W0290 00313 Subject: Approval of Assessment Work We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval. At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time. The quality of the drill hole plans is very poor. Future drill plans should be at a scale between 1:10 and 1:5000, show the magnetic north and the declination, and show the angles and depths of all drill holes. The dates of work performed must be properly reported on the work report. The dates of performance are the start of the drill program and the end of the drill program in the field. It does not include the report writing dates. In future submissions, please correctly fill in the proper dates. If you have any question regarding this correspondence, please contact LUCILLE JEROME by email at lucille.jerome@ndm.gov.on.ea or by phone at (705) 670-5858. Yours Sincerely, Ron Gashinski Senior Manager, Mining Lands Section Cc: Resident Geologist Robert Allan Macgregor (Agent) Von Anhalt Princess (Claim Holder) Lydia Diamond Exploration Of Canada Ltd. (Assessment Office) Assessment File Library Von Anhalt Prinz (Claim Holder) Lydia Diamond Exploration Of Canada Ltd. (Claim Holder) Visit our website at http://www.gov.on.ca/mndm/lands/mlsmnpge.htm Page: 1 Correspondence 10:16906

MINING LAND TENURE MAP Date l Time of Issue Sop 28 2001 TOWNSHIP/AREA TUDOR 10:03h Eastern PLAN M-0156 ADMINISTRATIVE DISTRICTS l DIVISIONS Mining Division Smithnin Ontdiio Lsml Titles/Reisislry Division HASTINGS Ministry of Natural Reurces District BANCROFT TOPOGRAPHIC LAND TENURE '*^^*h:^^k^.-mk}- -M,, ^.^,^^.;^33 S V\^f.:V;: \ A. n Q Q m a Q a G Q a a LAND TENURE WITHDRAWALS i?fs'ip31 ;v^ls^ IMPORTANT NOTICES LAND TENURE WITHDRAWAL DESCRIPTIONS fivtl- J-ii l /L* u iwj il-i i'i nil L uir. 'tt*. \f.h i IMPORTANT NOTICES o w w o o Gener til Infoim alion and Lintitalia ns fhi.'ia - l,l.,l,,,.1,i.l, Piiiumi l.-,, Moi.'m h.',.i.^t-hi-^rii l- T,.k f F(. tmlh1lc B9i.M* iut L unrrb lei: l llaul I1'j ^tl