Kenwest Property

During the third quarter of 2011, the Company initialed a phase of drilling at Kenwest to follow up on the previously announced intersection of 53.7 kg/t Au (53,700 g/t Au) over a core length of 0.55 m in hole KW-11-26 on the #2 shear zone at Kenwest.

This remarkable 53.7 kg Au per tonne (1,566 ounces/ton) intersection in hole KW-11-26 is part of an 8.45 m wide section of quartz veining contained within a broad alteration zone in the #2 shear zone.

This gold is located only 45 m below surface. At such a shallow level, the Company has attractive options for potential development of this zone. Hole KW-11-26 intersected 8.45 meters of mineralization averaging 4.9 g/t Au with the high grade sample cut to 50 g/t. On an uncut basis, this interval averages 3,497 g/t Au.

This further phase of diamond drilling was planned to test the up dip, down dip and along strike continuation of the spectacular high grade intersection of KW-11-26. The first hole from this program was hole KW-11-46, which intersected 26.9 g/t Au over 9.0 m (uncut) and included a section of considerable visible gold of 316.0 g/t au over 0.7 m.

This new intersection is positioned up dip from the high grade intersection in KW-11-26 and 9 m below surface. Drill holes KW-11-46 through 63 all intersected the mineralized target structure.

Gaffney Extension Property

The Company carried out a barge supported diamond drill program throughout the third quarter of 2011 at the Gaffney Extension property. Subsequent to the end of the third quarter of 2011, the Company announced positive results from diamond drill hole G-11-27 at the Gaffney Extension, which returned a wide section of gold mineralization with a continuous interval of 75.1 m grading 2.4 g/t Au. The Company has completed an additional 4 holes at Gaffney Extension. Assay results for holes G-11-28 through G-11-31 are pending and will be released when available.

Mosher Bay Property

During the third quarter of 2011, the Company carried out a mechanical trenching, channel sampling and prospecting program over portions of the Mosher Bay Property. The purpose of the programs were to follow up on a series of altered porphyry showings with grab sample assay values ranging from nil to 26.2 g/t Au.

West Limb Property

During the third quarter of 2011, the Company carried out a prospecting and sampling program on the West Limb property. The purpose of the program was to evaluate a number of historical gold occurrences, the exploration potential of a shear structure which hosts a series of shafts.

regards

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