From the Author’s experience in the area it was also apparent that these LIDAR shears have the same orientations as

shears that cross the SAM unit and are structurally related to the shear-type and tensional-type gold bearing quartz veins

in the RLM. The Author, based on maps contained in a report by Rhys (2001), constructed 3-dimensional models of the

major shear-type vein systems in the RLM and projected them up plunge to surface and found that their surface

locations plotted very close to where the LIDAR conjugate shears cross the surface trace of the SAM unit which hosts

the RLM gold mineralization. Further, there is a close spatial association of the new discoveries in the volcanic rocks

that overlie the SAM Unit (Hinge, 007, L13, and Cohiba) and the Lidar shear systems.

Based upon this 3-dimensional correlation the Author concludes that the LIDAR shears correlate with the RLM shears

and hence the Hinge-type mineralization in the volcanic rocks in the hanging wall of the SAM unit are hosted in the

same structures and thus are part of the same mineralizing event as the RLM gold mineralization.

This interpretation has significant implications regarding the depth potential of the newly discovered mineralization at

the Hinge and 007 as these structures within the RLM contain gold mineralization from surface to over 5000 feet below

surface (7000 feet down the dip of the veins). The RLM mineralization is open at depth below 5000 feet.

Anderson (2008) provides the regional trends of lineations that occur within the shears. Based upon the LIDAR

interpretation there is a reasonably accurate indication of the variations in the strike of the shears. As the lineations lie

in the plane of the shear, if an estimate of the direction and angle of plunge of the lineation can be made then variations

in the dip of individual shears can be determined. This can then be applied in 3D Autocad and a reasonably accurate 3D

model of the shear systems and the known gold resources can be created. It is beyond the scope of this Report to

complete such a study, however, the Author is of the opinion that such a study is warranted. It will provide new

insights for the geological staff who are dealing with the structural complexities of the Rice Lake Project on a daily

basis and further it will be a valuable tool in illustrating the nature of the structures to third parties who have an interest

in the Property.