TABLE OF CONTENTS APPENDICES SUMMARY DRILL LOG STATEMENT OF QUALIFICATION STATEMENT OF EXPENDITURES LIST OF FIGURES

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ASSESSMENT WORK REPORT DIAMOND DRILLING PROGRAM AUGUST AND SEPTEMBER, 1980 ON CLAIMS Molly Tom 1-4 and 8 Omineca Mining Division NTS 93M/llU 55'35'N, 127"29'W by David A. Bending Owner: Operator: Texasgulf Canada Ltd. Texasgulf Inc. I NU. I March 1981 Vancouver, 6.C.

INTRODUCTION Location, Access and Terrain Property History and Definition TABLE OF CONTENTS Summary of Work Completed Drill site preparation and camp constcuction Diamond drilling Work distribution GEOLOGY DIAMOND DRILLING BIBLIOGRAPHY PAGE 1 1 1 5 5 5 5 6 6 7 APPENDIX A APPENDIX B APPENDIX C Fig. No. 1 2 3 4 APPENDICES SUMMARY DRILL LOG STATEMENT OF QUALIFICATION STATEMENT OF EXPENDITURES LIST OF FIGURES Location Map 2 Claim Map 3 Regional Geology Map Geology and Drill Hole Location *. : c in pocket

INTRODUCTION Location, Access and Terrain The Mt. Thomlinson Property is located 38 km northeast of Hazelton, British Columbia, between elev. 1525 and 1850 metres, on a north trending ridge 4.5 km north of Mt. Thomlinson (Fig. 1). Access is by helicopter. Chartered helicopters are available in Smithers, 90 km south. Supplies and equipment can be flown from a logged area'f5km northeast of camp or farms near Kispiox, 25 km west. The topography of the property is extreme. Local tree line is about 1,37Om,500 metres below the camp. Regional topography is characterized by isolated, rugged mountain peaks separated by broad, wooded valleys. Many of the peaks are higher than 2,000 metres and are surrounded by ice and snow fields. The mountain slopes are steep and generally covered with talus. Property History and Definition The showings were originally staked in 1962 by three prospectors from Hazelton, and optioned by Buttle Lake Mining (now Stampede Resources Ltd.). In 1963, the property was mapped, trenched and sampled by Buttle Lake Resources. In August of that year, the propertywas examined and optioned by AMAX (then known as Southwest Potash). Loudon (1963) spent nine days on the property, produced a map,and recommended the option. In 1964 and 1965, Southwest Potash conducted programmes of geological mapping, surveying, prospecting, geochemistry and drillednine BQ diamond drill holes totalling 2,459 m. The results are summarized in reports by Mannard and Sinclair (1964), and Carithers (1965). The property was subsequently allowed to lapse. AMAX staked the ground again in 1975, and carried out a program of mapping on a scale of 1:2400. The claims were allowed to lapse.

- 3 - THOM * I MOLLY TOM + 1 to #8-1-- 53-32' 7, fl Maint Thomlinson A Scale I : 50,000 1 \-- Texasgulf 1% 2 krn Mt-THOMLINSON Mo DEPOSIT CLAIM MAP *O""#v I P.HW 01TZ I WW.0 NO. 1.1). I 22-10-791 12P 93- I 127"25'

- 5 - In 1979, the Molly Tom claims were staked by John Bot, an independent prospector from Smi thers. He optioned the property to Texasgulf Canada Ltd. on May 16, 1979. P.R. DeLancey visited the property in August, 1979, to examine the property in preparation for a drill program in 1980. He modified maps from previous work on the stock to produce a 1:2500 scale geological map showing current claim boundaries, trenches, drill hole collars, and projections of drill holes. His report (DeLancey, 1980) outlined the program pursued in 1980. All claims are registered in the name of Texasgulf Canada Ltd. SUMMARY OF WORK COMPLETED Drill Site Preparation and Camp Construction During July 1980, a crew contracted from BEMA Industries excavated the drill site and helipad on the south facing slope and constructed the camp in the saddle. Diamond Drilling Between August 17 and September 24, 1980, one BQ diamond drill hole was drilled 209.7 m deep at -80, azimuth 117", from the prepared site. The hole was abandoned approximately 500 metres short of completion due to severe drilling problems and increasingly inclement weather. The hole, shown on Fig. 4, penetrated Bowser Lake Group argillite with sparse quartz and calcite veinlets and finely disseminated pyrite. Work Distribution The diamond drilling was pursued within the Molly Tom #8 and Molly Tom #2 mineral claims. Camp construction was in parts of Molly Tom #1, #3 and #4 claims (Fig. 4).

- 6 - GEOLOGY The geology of the property has been described by Loudon (1963), Mannard and Sinclair (1964), Kirkham (1964), Carithers (1965), and DeLancey (1979). The geology and the location of the 1980 drill hole are shown on Figure 4. Molybdenite and chalcopyrite occur in an irregular tabular zone up to 100 metres wide along the northwest contact zone of the circular granitic stock about 2 km across that has intruded Bowser Lake Group argillites. Sulphide mineralization occurs in a biotite granite border phase of the granitic intrusion, in a zone characterized by repeated shearing, small felsic dykes, quartz veining, silicification, argillization, and potassic alteration. This sheared, altered mineralized zone trends north-northeast along the margin of the stock, and dips 58-65' to the west. The 1964 and 1965 drilling outlined the zone above 1500 m elevation, but it remains,open and untested at depth. DIAMOND DRILLING One hole was drilled on the property during 1980. This hole was unsuccessful and was abandoned at 209.7 metres. It penetrated sheared, pervasively fractured, hornfelsed argillite, with occasional quartz-pyrite and calcite veins. Despite heavy use of drilling muds and sealants, circulation was rarely maintained for more than a metre. Attempts to drill without return resulted in severe abrasion on bits. Consistent caving resulted in loss of one rod and the bit, at 209.7 m. This equipment could not be retrieved. A summary log of the hole MT-80-1 is given in Appendix 1. The core is stored on the property. The unforeseen difficulty of drilling through the argillite, and subsequent abandonment of the hole suggest that the mineralized zone should be drilled from the granite side. This can be achieved by drilling at -45" from a point near the camp, shown on Figure 4. D.A. Bending

BIBLIOGRAPHY Carithers, Ward (1965): Report on the Buttle Lake Molybdenite Project, Mount Thomlinson, B.C., unpublished AMAX Company Report, 15 pages. DeLancey, P.R. (1980): Geological Report of the Thom Group, Mount Thomlinson, Omineca Mining Division, unpublished Texasgulf Company report, 7 pages. Kirkham, R.V.(1964): B.C. Department of Mines and Petroleum Resources Report, 1964, pp. 48-49. Loudon, J.R. (1963): Buttle Lake Molybdenite Prospect Supplemental Geological Report, unpublished AMAX Company Report, 19 pages. Mannard, G.W. and Sinclair, A.J. (1964): Buttle Lake MoS2 Project - 1964. Unpublished AMAX Company Report, 73 pages.

APPENDIX A SUMMARY DRILL LOG

I! i!! i!! i I 1 LOCATION (survey) DRILL HOLE LOG AZIM: 117" ELEV: 1845 m DIP: -80" DEPTH: 209.7 m CORE SIZE: NQ r DIP TEST STARTED: August 24, -I 1980 DEPTH AZIM DIP COMPLETED: September 22, 1980 185.0 116-81 --I- ULF INC. CORE RECOVERY: 207.0 116-86 182.881 195.3-1 85% - 195.d _I- 198.2 1 70% - 198.2 1 209.7 1 90% ----- ---, Casina - Drilled with tricone bit. DESCRIPTION CLAIM: - Molly Tom 8 & 2 HOLE NO. SECTION: LOGGED BY: D. Bending DRILLING CO. : Longyear Canada Ltd. Collared in Bowser._ Lake Group arqillite. -- ---~ -- -_l_ Dark grey argillite, occasional laminae of siltstone. 2 4 finely disseminated pyrite. --- Occasional 1-2 - cm veinlets of quartz and white calcite with finely crystalline pyrite. -- I Abundant tan weathering fractures. -_ -_- --- ----A- Sheared finektractured dark qrey arqillite. Minor white calcite-rich qouqe. -- No distinctfault surfaces. _- Dark qrey arqillite. Same litholoqv as 182.00 to 195.3. I 209.7 m END OF HOLE -- - -- 1 I 1 I!

APPENDIX B STATEMENT OF QUALIFICATION

STATEMENT OF QUALIFICATION D.A. Bending - Geologist D.A. Bending holds a B.Sc. degree in Geology from the University of Oregon (1976), and is presently completing an M.Sc. degree at the University of Toronto. He has been employed by Texasgulf since May 1, 1980, based in Vancouver.

APPENDIX C STATEMENT OF EXPENDITURES

STATEMENT OF EXPENDITURES MT. THOMLINSON PROPERTY (Diamond Orillinp) SALARIES AN0 FRINGE BENEFITS, TEXASGULF INC. O.A. Bending, Geologist Period Aug 12-Sept 30 50 days @ $120 ROOM AND BOARD Tg personnel 50 days @ $50 2,500.00 188 days @ $50 9,400.00 11,900.00 HELICOPTER SUPPORT Texasgulf Bell-Soloy 50 hours @ $285 14.,250.00 Okanagan Helicopters invoices 23,230.80 (various aircraft types) 37,480.80 DIAMOND DRILLING Longyear Canada, invoiced charges for drilling, survey, core boxes, supplies, moving time, water delays, mobilization, etc. 6,000.00 11,900.00 37,480.80 114,143.88