When disclosing the results of exploration activity on its

properties, a company shall state the source of the information

when it was not obtained by the company itself.

The company shall also provide the name(s) of the qualified

person(s) responsible for the design and conduct

of the exploration program. The relationship of such

person(s) to the company shall also be disclosed.

Apart from disclosure of results of exploration activities

as described in more detail below, a general description

of the geological environment must be disclosed, including

any known potential for problems, such as extremely

erratic results or significant metallurgical difficulties.

If the company releases partial results, e.g., the first two

holes of a six hole program, it must ensure that the balance

of the results are disclosed in a timely manner whether

the results are positive or negative.

Where possible, the company should provide information

in table form for ease of understanding and publish maps,

plans or sections as appropriate to the information and

the stage of development of the property.

VI Preliminary Results

Early exploration activity designed to yield information

as to the possible existence and location of minerals

of value, e.g., geophysical surveys or soil sampling, when

disclosed, must be clearly described as preliminary in

nature and not conclusive evidence of the likelihood of the

occurrence of a mineral deposit. A description of the type

of survey or the sampling methods, e.g., grab, chip or

channel samples, and spacing intervals must be included.

The company must also disclose who undertook the program,

and their relationship to the company.

Analytical results should be reported in a timely and

responsible manner. In circumstances where extremely

high grades are encountered, it is important that the

qualified person provide disclosure as to the comparability

of the results with past results or, if there are no past

results, with expected results based on geology. The sample

grades reported should conform to industry best

practices, such as ounces per ton or grams per tonne for

precious metals, so as not to confuse the reader.

Visual estimates of quantity or grade of mineralization

should not be reported. Observations of mineralization

from outcrop, trench or drill samples should be reported

only when analytical results will not be readily available

and the presence of the mineralization is deemed to be

material by the qualified person responsible for the

project. What is then reported should be carefully and

completely described in terms that will not lead unsophisticated

investors to conclude that the information can

be interpreted with the same confidence as assay results.

Similarly, results of exploration for a polymetallic property

must not be reported in “metal equivalents” prior

to disclosing resources or reserves, and then only in limited

circumstances as set out in NI 43-101 and the CIM

Standards on Mineral Resources and Reserves.

If the property is one of the company’s material properties,

the company must also disclose any independent

sampling or audit programs that have been or will be

undertaken, by whom, and what their qualifications are.

Data verification programs undertaken should be

disclosed, including sampling methods, location and

number of samples, and comparisons with the company’s

own results.

Recommended programs for further exploration should

be described, including proposed methods, time frame

and cost. The company should state whether it intends to

carry out the program(s) and whether it has the funds

available to do so.