The airborne electromagnetic survey (VTEM) was flown over the Tri-Eagle project. The results of the VTEM survey were disappointing and no further exploration efforts will be carried out on this joint venture in the near future.

Drilling continued on the new Zn-Cu-Pb-Ag discovery known as the 501 project during the last quarter. WPR Resources remains the geological operator of the 501 project, while Metalex remains the administrative operator. Up to the end of the reporting period, 42 diamond drill holes totalling 10,786m have been completed on the 501 project on claim 4223252. The new Zn-Cu-Pb-Ag discovery remains the focus of the company’s exploration efforts.

These exploration efforts have all been carried out from the new Oval Lake camp, constructed and managed by Matrix Aviation.

DDH501-26 L1+80E 0+50N

DDH501-28 L1+37E 0+25N 522348 5901500

DDH501-29 L2+35E 0+00 522433 5901475

DDH501-30 L1+87E 0+50S 522399 5901425

DDH501-31 L1+87E 0+50S 522399 5901425

DDH501-32 L1+87E 0+50S 522399 5901425 270 -84 267

DDH501-33 L2+50E 0+75S 522460 5901400 270 -45 291

DDH501-34 L2+50E 0+75S 522460 5901400 270 -61 324

DDH501-35 L2+50E 0+75S 522460 5901400 270 -72 303

DDH501-36 L2+40E 1+25S 522456 5901344 270 -45 219

DDH501-37 L2+40E 1+25S 522456 5901344 270 -62 297

DDH501-38 L2+40E 1+25S 522456 5901344 270 -78 393

DDH501-39 L2+90E 1+75S 522510 5901300 270 -45 414

DDH501-40 L2+90E 1+75S 522510 5901300 270 -55 300

DDH501-41 L2+90E 1+75S 522510 5901300 270 -65 441

DDH501-43 L4+80E 0+25N 522690 5901500 270 -50 591

Drilling was temporarily suspended on this project for the freeze-up period and the Christmas holiday season. Down-hole geophysical surveys will be employed next to aid in future drilling.

Regional exploration from the Richards Lake camp was terminated during the last quarter and all personnel have been vacated from the camp.

2.11-01 2.11 5+30W 9+95N 576352 5873560 0 -90 87.3

2.11-02 2.11 4+75W 10+00N 576402 5783578 260 -60 156.1

2.11-03 2.11 3+75W 9+50N 576520 5873525 260 -45 155.7

2.11-04 2.11 5+00W 9+50N 576400 5873490 80 -50 155.6

2.11-05 2.11 3+75W 9+50N 576520 5873525 45 -50 140.9

2.11-06 2.11 1+00E 6+50N 577040 5873340 260 -50 145.1

2.11-07 2.11 0+25W 13+50N 576785 5873975 260 -50 155

2.12-01 2.12 L20+50N 0+50E 576716 5874839 0 -90 149.2

2.12-02 2.12 L20+50N 0+80E 576746 5874848 260 -60 150.9

2.12-03 2.12 L20+50N 0+00 576667 5874825 80 -60 145.4

2.13C-01 2.13C 1+00E L1+00N 270 -55 198.5

2.13C-02 2.13C 0+75W L1+00N 90 -50 151.5

2.13C-03 2.13C 0+25E L1+00N 0 -90 188.3

2.13C-04 2.13C L2+50N 1+50W 574705 5876230 270 -50 155.1

2.13D-01 2.13D 0+25E L4+00N 575084 5877251 270 -50 179.7

2.08-01 2.08 L18+50N 0+50W 576342 5868921 280 -50 162

No additional exploration was done on the Big Mac joint venture project. However, airborne fly-over data (VTEM) was received from an earlier program, which revealed some priority one targets that may be drilled during the next quarter.

Exploration expenditures to date on the WPR-Noront-Golden Valley Joint Venture option agreement include acquisition costs and down-payment were for the airborne geophysical VTEM survey. Results from the airborne geophysical VTEM survey received during the last quarter and revealed some very promising anomalies. These anomalies will be the focus of a drill program to be completed during the first quarter of 2009.