100% Owned McFaulds Fancamp Property, Ontario

Drilling is still underway on the McFauld’s Lake Property with the intention of demonstrating that the

Eagle One mineralized system is an extension of that to be found at depth on the Company’s C-1 target.

The initial 3000 metres is nearing completion.

This drill programme is designed to test the working hypothesis that Eagle One is a faulted offset of C-1 in a left lateral displacement sense along major NW trending faults, and that the fragmentary high grade intersections seen in Holes FN-08-02 and FN-08-10 are, in this context, fault slivers of the Eagle One mineralization itself. (The original drill log of FN-08-02 describes the massive sulphide intersection as occurring “within a fault zone”.)

The VMS target defined on C-2 will be drilled together with a deep conductive target on C-6 suggested by a recent detailed re-examination of the original VTEM data. Further drill testing is also planned for the major “chromite horizon” traversing the property for some 3.5 km, probable extensions of the Big Daddy deposit immediately to the NE.

The direction of this programme is very much results dependent and the Company has funding to allow it to be extended as required.