The Aug 29 2008 KXL Sedar report is summarized here as concisely as possible, and is compared with the Aug 1 news release. Results are organized by system (Hercules, West Geraldton, etc.) and zone (Golden Mile, Yellow Brick Road, etc.). Zone numbering is specific to this summary. Grades and extents are rounded for readability. Energy, Base Metals, Vent Gold and Financials are not covered here. Overall the Sedar release is a solid report and provides a basis for higher prices.

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Executive Summary: There are no additional assay results provided in the Aug 29 Sedar report beyond those of the Aug 1 NR. That is as it should be without another official news release yet. However, a very large amount of additional drilling is reported just for August (+22km total, +15km in Hercules and +7km in Geraldton), so a feast of assay results can be expected to arrive soon.

The other function of the Sedar report is to make clear a much wider scope of active exploration, based on very indicative airborne survey results and good historical samples in new regions. Per the Aug 1 NR, while the spectacular drill hole HR07-51 of 2007 at 516gpt/2.5m was not repeated, very respectable and mineable wide intercepts of 15gpt/9.3m and 16gpt/9.7m (over 30 feet wide each) were obtained.

The general nature of the Sedar report then is to underline the achievements (mineable gold findings and significant delineation) and to make clearer the huge and solidly supported (e.g. channel and historic samples) scope of exploration. There are now 25+ goldbearing zones being explored (Hercules:13+, Geraldton:4, Knucklethumb:1, Other:7) and 8 drills turning in Canada’s largest and most vigorous exploration effort

Historically, greater concentrations of gold were found in similar deposits at 500m - 1500m depth. With results just having reached 450m this Summer, the convergence of Lucky Strike and Golden Mile at depth may prove this also true for KXL, as deeper assays come in. However, of greatest immediate interest will be the enormous wealth of assay results arriving this Fall from the new drilling reported.

Highlights by mineability:

Highlights Hercules: Golden Mile 15 gpt/9.3m (2007 highlight: 516gpt/2.5m). WL 16gpt/9.7m. Marino 38gpt/1.6m. Seven of Nine 13gpt/1.1m. Lucky Strike 1.2gpt/41m (135 foot wide intercept). Fat Bastard channel 37gpt.

Highlights West Geraldton: Maki historic 555gpt/1.2m. West Geraldton historic 328gpt/2m. Solomon’s Pillars 13gpt/5.5m. GMO grabs 41gpt.

Highlights - Other: Brenbar channel 41gpt.

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Summary of Aug 1 and Aug 26 reports by area and zone:
1) Hercules
2) Beardmore-Geraldton
3) Knucklethumb
4) Other Elmhirst zones


1) Hercules area: 13+ zones. 132holes/42km Jan 1-Aug 26. This is 15 km of additional drilling since the Aug 1 NR

1.1) Hercules / Golden Mile: Two parallel high grade zones w/ NW rake. 2km strike, extended another 400m w/ drilling, may extend to 5km. 450m deepest intercept.
Channels along 400m: avg 20gpt/3.8m width.
New zone in East: HR08-171: 17gpt/1.3m incl 64gpt/0.3m
HR08-161 15 gpt/9.3m incl 32 gpt/3.3m. per Both same news as Aug 1 NR

1.2) Hercules / Marino: 38gpt/1.6m
Strike extension 2 km NW via trenching

1.3) Hercules / Yellow Brick Road: 10m interval at 250m depth

1.4) Hercules / Seven of Nine: HR08-113 13gpt/1.1m incl 53gpt/0.3m
Strike extension 2 km NW via trenching

1.5) Hercules / WL (WLGZ) HR06-03 16gpt/9.7m incl 52gpt/2.8m
HR08-145 down plunge 22 gpt/3.3m incl 90gpt/0.8m

1.6) Hercules / Lucky Strike: blind vein 200m SW of Golden Mile. Appears to converge w/ Golden Mile w/ wedge of bulk mineable material above.
HR08-137 1.2gpt/41m

1.7) Hercules / Fat Bastard: between Marino and Golden Mile. Given name since last NR.
37gpt in channel

1.8) - 1.12) Hercules / Penelton, Amede, Wilkinson Lake, and Miron zones, Hydro showing - covered only in previous reports. Grab samples of 5-40 gpt.

1.13+) Hercules / further indicated structures: S of Golden Mile historic grabs 46gpt (BAT showing), and 30km surface strikes of geophysically indicated structures are being drilled.



2) Beardmore-Geraldton: 4 zones. 37holes/7km Jan 1-Aug 26. This is 7 km more drilling in this area than what was in the Aug 1 NR. Magnetic-VLF and VTEM surveys show numerous structures which will be explored.

2.1) Beardmore-Geraldton / Solomon’s Pillars: 20-30m banded iron formations
16holes/3.3km
Historic 1936/37 47 x 2m 12gpt. Historic 1963 563 x 6m x 91m deep, best 49 gpt
Initial channelling: 13 gpt over 5.5m, incl 25 gpt over 0.9m

2.2) Beardmore-Geraldton / Maki: East-West shear zone in sheared mafic volcanics. Building better access. Stripping and sampling. 2 holes/0.2km
Historic 1947/48 Dougall, 27 of 35 shallow holes >0.5 gpt incl 555 gpt over 1.2m

2.3) Beardmore-Geraldton / GMO: Western part of Beardmore along strike w/ Northern Empire. 6 holes/0.8km
Grabs 41 gpt, at least 350m x 2m

2.4) Beardmore-Geraldton / West Geraldton-Kenogamsis: Targets along 40km portage shear zone. Stripping, channelling and drilling.
Goldstrike and Drexel zones stripped along strike 300m
Goldstrike historic 328gpt over 2m
Also 2nd zone 500m W of Goldstrike, grab samples up to 129 gpt



3) Knucklethumb: 1 zone. 40km N of Golden Mile, large 3km x 0.5km alteration zone.
Interesting mention, as this area has not been covered much in past reports.
Surface trenching showing gold 230m long x avg 7m wide.
“Surface channel samples have assayed up to 2.20 gpt Au” - makes no sense.
Surface incl 13 gpt Ag over 6m, incl 21 gpt Ag of 1.7m.
2005 33 holes/4.4km. KL05-04 0.2 gpt/109m, incl 0.3 gpt/29m etc.
2006 7 holes/1.6km. KL06-01 0.3 gpt over 10m true width, showing mineralization to 390m



4) Other Elmhist zones: 7 zones: 4.1 Brenbar, 4.2 Sturgeon Bridge, 4.3 Bearskin, 4.4 Klotz Lake, 4.5 Blackwater, 4.6 Kaby Lake, 4.7 (East Leitch). Stripping and sampling. In Aug 1 NR East Leitch was also listed, and Maki was not yet listed as a Geraldton Property.
Aug 1 - Brenbar channels showed 41 gpt.