Prospect Lake Property

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Work Assessment Report Prospect Lake Property Coldwell Thunder Bay District Ontario NTS 42 D/15 Assembled by: John Florek Date: December 03, 2015

Table of Contents Summary. Pg. 1 Introduction.. Pg. 1 Regional Geology. Pg. 1 Property Geology. Pg. 1 Historical Work Performed... Pg. 4 Work Program. Pg. 4 Recommendations.. Pg. 5 References... Pg. 8 Figure 1 (Regional Location Map). Pg. 2 Figure 2 (Property Location Map)... Pg. 3 Figure 3 (Outcrop Location Map). Pg. 6 Figure 4 (Geology Map) Pg. 7 Appendix A Costs and Invoices Appendix B Outcrop Notes and Photographs Appendix C Assessment Work Performed on Mining Lands

Summary: A mapping and prospecting program was initiated to follow up on historical results of an identified exhalative unit that occurs at the boundary between sediments and mafic volcanics. An attempt to find this horizon, projected to the surface, was the focus of this work program. This would enable a better understanding of the structural setting, stratigraphy, and exploration of this key horizon which has already demonstrated significant base metal occurrences. Several traverses crossing this horizon, where the exhalative unit should project to surface, were accomplished. Limited exposure made it difficult to locate this horizon, but with digging in the vicinity of the projected zone the horizon was eventually located. Introduction: John Florek has 100% interest in the Prospect Lake Property located in Coldwell Area of the Thunder Bay District, Ontario, within the Schreiber Greenstone Belt. The Property consists of eighteen (2) claims (24 claim units). Table 1 and Figure 1 and 2 show the location of the group of claims. Prospect Lake Property Claim Number Number of Claim Units 4240826 12 4240816 12 Table 1: Claims The Prospect Lake property is located 6.5 kilometres north of the TransCanada Highway, between Marathon and Terrance Bay, Ontario. The property is accessible by ATV trail, canoe, and forest trail to the southeastern area of claim 4240816. All of the claim area is very remote and most of the areas are only accessible by walking through the boreal forest. Regional Geology The property occurs within the Wawa Subprovince of the Superior Province. It is within the late Archean Schreiber-Hemlo greenstone belt, i.e., 2.80-2.68 Ga. It is composed of supracrustal lithotectonic assemblages of ultramafic to tholeiitic basalt ocean plateau sequences, tholeiitic to calc-alkaline volcanic arc sequences, and siliciclastic turbidites, collectively intruded by arc granitoids (Polet et.al. 1998.) Property Geology The property lies along the north limb of a regional antiform, which is located in the Archean Schreiber portion of the greenstone belt. Mafic and Intermediate volcanics are overlain by chert, shale, sulphide iron formation, and related sedimentary rocks. The belt consists of variably metamorphosed metavolcanic and metasedimentary units. Figure 4 shows the property geology; taken from Walker 1967. 1

Ogoki Lake Figure 1. Northwestern Ontario Location Map Prospect Lake Property Ogoki Reservoir Lake Nipigon Long Lake ^ Prospect Lake Property! Communities Trans Canada Highway Hwy 614 Manitouwadge! Water Prospect Lake Property Dog Lake Kabinakagami Lake ^ Marathon! 1:3,000,000 0 Thunder Bay 60 120 km! Lake Superior Produced by Florek Consulting Services under licence from Ontario Ministry of Natural Resources, Copyright (c) Queens Printer 2011. Vector Base Data supplied by the MNR. UTM Projection, NAD83, Zone 16! Sault Ste. Marie Ontario! Prospect Lake Property Lake Michigan 2 Lake Huron

515,000 me 514,000 me 513,000 me 512,000 me 511,000 me 510,000 me 509,000 me 5,413,000 mn 5,413,000 mn 5,412,000 mn 5,412,000 mn 4240826 4240816 Figure 2: Claim Map (1 : 25,000) 515,000 me 514,000 me 3 513,000 me 5,409,000 mn 512,000 me 5,410,000 mn 511,000 me 5,410,000 mn 510,000 me 5,411,000 mn 509,000 me 5,411,000 mn 5,409,000 mn

Historical Work Performed Several previous companies have worked the property and the information is contained in the assessment files located at the MNDM. Brief synopses below of work performed on these properties are contained in these reports. A lot of the reports describe more regional surveys over the general area, but the list below is confined to the claims in this report. 1981: Gulf? 1983: Coronet Resources: Aerodat Ltd airborne geophysical surveys, geological survey, geochemical survey (42D15SW0082,70). 1983: Teck Exploration: Geophysics (42D15SW0090) 1986: Lionel Martin: Linecutting, Trenching, Geochemistry, Geological Mapping, Geochemistry, Geophysics, and Diamond Drilling (42D15SW0061) 1986-1987: Eldor Resources (optioned from Cunningham): Diamond Drilling, Soil Sampling, Lithogeochemistry (42D15SW0064, 56_b, 58) 1989: Cameco / Zenmac Zinc Ltd: Diamond Drilling (42D15SW0054,56) 1990: Cunningham: Whole Rock Analysis (42D15SW0051), references Gulf work? 2005: Phoenix Matachewan Mines: Lithogeochemistry, Airborne Magnetics, VTEM (42D15SW0061, 2025, 20003043) 2006-2008: Galahad Minerals: Drilling 2012: Wayne Richards: Prospecting and bedrock sampling (20010244) Work Program The main goal was to identify and prospect the area where an exhalitive horizon trends through the claims and to determine if a soil gas survey would be appropriate to identify increased sulphidation along this known horizon in planned future exploration work. This work will guide the next phase of exploration on the property and its implementation. A review of the historical work was performed on the property prior to field work. Attempts were made to put pertinent historical information into a GIS format, so that precise areas could be located since all established surface grids are now somewhat overgrown. This was the basis for prospecting and collecting outcrop samples to follow up on previously mapped areas, in hopes of identifying new showings. Samples that were identified and recorded are shown in Figure 3 and Appendix B. This exhalative horizon is known to be composed of chert, iron oxide and sulphide facies iron formation, and locally intercalated graphitic schists. This horizon has significant untested strike length and is one of the most continuous and thickest exhalite horizons in the greenstone belt shown on Walker s (1953) 4

geological map. The prospecting was done between known lithogeochemistry done by Phoenix Matachewan Mines, to hopefully identify new showings or unknown rock types. Lateral to this horizon, just off the claims is a diamond drillhole intercept that contained 8.6% Zn over 10 meters. The area of prospecting is located on the northern flanks of a regional magnetic high, in an area of magnetic low. This is a similar spatial location of the diamond drillhole intercept on the adjacent property which intercepted 8.6% over 10 meters. It is also spatially close to a determined syncline in the stratigraphy, which could be very important in creating structural traps for massive sulpides. Part of the prospecting was to see if any fold hinges were seen in the outcrops. Prospecting revealed that the exhalite horizon is more complex than shown on the map. Mafic volcanics and sediments were seen within this mapped exhalite horizon, constructed by Walker (1953). It appears that there are probably several horizons of exhalites that need to be further delineated with additional prospecting, geophysics or geochemistry. In addition to prospecting, trails were cut for safety reasons, to provide easy ingress and egress to the property and to re-establish claim boundaries where they were difficult to discern. An emergency shelter was also constructed, due to the remoteness of the claim group. GPS mapping, of former existing trails, were also accomplished; to provide future access to historical drillholes and future unencumbered entry to property. Recommendations Further investigations of these occurrences are warranted. It is suggest that the following be accomplished: Follow-up of geochemical (soils, rocks, gas) and geophysical surveys. The reestablishment of overgrown trails to provide better access. Additional evaluation of the historical geochemical dataset. 5

513,000 me 514,000 me 5,412,000 mn 5,412,000 mn BZ013 BZ014 BZ019 BZ015 BZ021 BZ012 BZ020 BZ011 4240816 BZ018 BZ016 BZ017 BZ006 BZ007 BZ008BZ009 BZ005 BZ003 BZ001 BZ002 BZ010 BZ004 5,411,000 mn 5,411,000 mn Figure 3: Outcrop Locations 513,000 me 6 514,000 me

Prospect Lake Geology 4240826 4240816 Prospect Lake Property Geology Intrusive Exhalite Sediments FeFm Figure 4: Geology Mafic Volcanics Diabase Dikes Intermediate Volcanics After J.W.R. Walker 1953 7 Scale 0 1.0 m 1 Kilometer

References Polat, R. Kerrich, and D.A. Wyman (1998). The late Archean Schreiber Hemlo and White River Dayohessarah greenstone belts, Superior Province: collages of oceanic plateaus, oceanic arcs, and subduction accretion complexes. Tectonophysics, v. 289, Issue 4. pp. 295-326. Walker, J.W.R., 1967, Geology of the Jackfish Middleton Area, Ontario Department of Mines, 41p. 8

Appendix A

Prospect Lake Claim 4240816 MOB DEMOB Date September-19-15 September-20-15 September-24-15 September-25-15 September-26-15 September-27-15 September-28-15 Trail Making 800 800 ATV 200 200 200 200 200 200 200 Canoe 100 100 100 100 100 100 100 Mob/Demob 800 800 Emergency Shelter Setup Prospecting 800 800 800 Mileage. 54 54 54 54 54 54 54 Perdiem 70 70 70 70 70 70 70 1224 1224 1224 1224 1224 1224 1224 8568 Description Quanity units cost/unit Total Mob/Demob (Equipment, Emergency Shelter Setup) 2 day $800.00 $1,600.00 Mapping, Prospecting (P.Geo, M.Sc Geologist) 3 day $800.00 $2,400.00 ATV 7 day $200.00 $1,400.00 Canoe and motor 7 day $100.00 $700.00 Trail Establishment, Access Route (Emergency) 2 day $800.00 $1,600.00 Perdiem 7 day $70.00 $490.00 Mileage 630 km $0.60 $378.00 Report Writing 2 day $800.00 $1,600.00 Figures 3 day $800.00 $2,400.00 $10,168.00

Appendix B

Prospect Lake Property Sample Easting Northing Structure Lithology Picture BZ001 513996 5411234 Fol 142/vert Rusty Mafic Volcanics BZ001 BZ002 513971 5411186 Graywacky, rusty, mg BZ002 BZ003 513958 5411188 Sediments, Cliff forming, slightly mineralized (aspy?) BZ003 BZ004 513949 5411176 Mafic volcanics, rusty surface, vfg BZ004b BZ005 513870 5411302 Mafic volcanics BZ006 513890 5411352 Sediments, vfg BZ006 BZ007 513960 5411345 fol 120/70 SW Mafics, vfg BZ007 BZ008 513992 5411401 Bleached Basalts, white weathered rind. BZ008 BZ009 514056 5411402 Mafic Volcanoclastics BZ009 BZ010 514258 5411225 Mafic Volcanoclastics, folded qtz vein BZ010b BZ011 513887 5411477 Fol 120/60 SW Mafic Volcanoclastics, mg, Drk gray, qtz vn parallel to fol. BZ011 BZ012 513694 5411525 Fol 110/60 SW, Jts perpendicular to Fol. Basalt, vfg, dark gray, foliated. BZ012 BZ013 513508 5411568 Fol 124/60 SW Graywacky, vfg, drk gray, prominent foliation. BZ013 BZ014 513513 5411559 Fol 85/60 SE Basalt, vfg, dark gray, foliated, highly magnetic BZ014 BZ015 513435 5411449 Fol 280/ 80 NE Basalt, vfg, dark gray, foliated, highly magnetic BZ015b BZ016 513435 5411441 Fol 80/Vert Semi-Massive Sulfide in Exhalite Unit, non-magnetic BZ016, c BZ017 513425 5411437 Semi-Massive Sulfide in Exhalite Unit, non-magnetic BZ017, b BZ018 513416 5411440 Fol 65/Vert Basalt, slightly mineralized, margins of exhalite BZ018b BZ019 513397 5411452 Semi-Massive Sulfide in Exhalite Unit, non-magnetic BZ019 BZ020 513605 5411494 fol 120/70 SW Basalt, grey, vfg, non-magnetic BZ020 BZ021 513644 5411544 Trend 120 o ; Perpendicular jts. Quartz vn, barren BZ021

BZ001 BZ002 BZ003 BZ004b

BZ006 BZ007 BZ008 BZ009

BZ010b BZ011 BZ012 BZ013

BZ014 BZ015b BZ016 BZ016c

BZ017 BZ017b BZ018b BZ019

BZ020 BZ021 Emergency Shelter #1 Emergency Shelter #2 (off property)

Appendix C