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9.1 EXPLORATION PROGRAMS The Tesoro Project has been explored by various workers since the 1990’s and by St. Elias since 2004, this section of the report concerns the current exploration the Project has seen since February 2008. From 2008 through 2009 a series of exploration programs were conducted on the Property by St. Elias Mines Ltd. Brophy (2008) reported that 211 tonnes of Tesoro quartz-vein bulk sample (average grade of 0.893 opt Au) was shipped and milled during the 2008 reporting period. Brophy (2006) reported that 120 tonnes of Tesoro quartz-vein bulk sample (average grade of 1.18 opt Au) was shipped and milled during the 2006 reporting period.

2008-2009 Exploration Programs Underground Development and Mining

From February 2008 through to January 2009 the exploration focus on the Property was exploiting the “Inferred Mineral Resource” as calculated by Brophy (2008) within the C1 and A4 zones. During this period the A4 underground vein zone was exploited for 436 tons of vein material grading an average of 0.78 oz/t and was shipped to the Dynacor Mill for processing and 339 oz of Au was recovered for gross proceeds of $210,529.73. Additionally, the C1, C2 and C3 underground vein zones were exploited for 184 tons of vein material grading an average of 1.40 oz/t and was shipped to the Dynacor Mill for processing and 258.5 oz of Au was recovered for gross proceeds of $198,756.98. These vein material shipments, and all the historical mineralized vein shipments from Tesoro to the Dynacor Mill are detailed in Table 9-1. The bulk of the material mined was from within the stopes and easily accessible areas of the A4 and C1 underground mines. As a function of this mining and vein material removal the Inferred Mineral Resource calculated by Brophy (2008) is now essentially removed and precluded from verification due to access conditions.