INDEPENDENT TECHNICAL REPORT ON THE NUELTIN LAKE PROJECT,

Prepared for URU Metals Limited By D.E.Jiricka, M.Sc., P.Geo., P.Eng.

April, 2013 Report: NLP 2013-01

1.0 FRONTISPIECE

A photo of polished drill core from DDH NLL-08-002 (~ 7.9 metres depth), that contains visible native gold as yellow coloured disseminations in the upper half of the sample. The host rock is an albite, pyroxene and biotite-rich, metasomatically altered arkosic metasedimentary rock. In addition to the gold, this rock contains pyrrhotite as grey-brown disseminations and stringer veins with lesser arsenopyrite and pyrite (smaller and brighter metallic specks).

Photo by Cameco Exploration 2008.

2.0 DATES AND SIGNATURE PAGE

Name of Report:

INDEPENDENT TECHNICAL REPORT ON THE NUELTIN LAKE PROJECT, NUNAVUT

Commissioned by:

URU Metals Limited

SIGNED AND SEALED

“D.E.Jiricka” Date: April 30, 2013

TABLE OF CONTENTS PAGE NO:

1.0 FRONTISPIECE...... 2 2.0 DATES AND SIGNATURE PAGE ...... 3 3.0 SUMMARY (Form 43-101 F1 item 1) ...... 9 4.0 INTRODUCTION (FORM 43-101 F1 ITEM 2) ...... 10 5.0 RELIANCE ON OTHER EXPERTS (Form 43-101 F1 item 3) ...... 11 6.0 PROPERTY DESCRIPTION AND LOCATION (Form 43-101 F1 item 4) ...... 14 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY (Form 43-101 F1 item 5) ...... 17 8.0 HISTORY (Form 43-101 F1 item 6) ...... 19 8.1 Work Undertaken prior to Cameco ...... 19 8.2 Work Undertaken by Cameco – 1999-2009 ...... 19 9.0 GEOLOGICAL SETTING AND MINERALIZATION (Form 43-101 F1 item 7) .. 21 9.1 Regional Geology ...... 21 9.2 Project Geology ...... 24 9.2.1 Kinga Formation ...... 24 9.2.2 Ameto Formation ...... 24 9.2.3 Watterson Formation ...... 24 9.2.4 Graphitic Semipelitic-Pelitic Gneiss ...... 25 9.2.5 Semipelitic-Pelitic Gneiss ...... 25 9.2.6 Calc-Silicate Gneiss ...... 25 9.2.7 Hudson Granite (1.85 – 1.80 Ga) ...... 25 9.2.8 Nueltin Granite (1.76 – 1.75 Ga) ...... 26 9.2.9 Mafic Dykes (Unknown Age) ...... 26 9.3 Project Structural Geology ...... 28 9.4 Project Quaternary Geology ...... 28 10.0 DEPOSIT TYPES (Form 43-101 F1 item 8)...... 30 10.1 Gold-uranium mineralization (modified after Jiricka, 2009 and Zaluski, 2009) .. 31 10.2 Syngenetic Uranium, Thorium and Rare Earth Element mineralization ...... 34 10.3 Uranium and/or Gold bearing Paleoplacer mineralization ...... 34 11.0 EXPLORATION (Form 43-101 F1 item 9) ...... 36 11.1 Boulder Prospecting, Boulder Geochemistry, Boulder Petrography and Till Studies ...... 36 11.2 Geophysical Surveys ...... 42 11.3 Airborne Geophysical Methods ...... 42 11.4 Airborne Radiometric Surveys ...... 42 11.5 Airborne Magnetic Surveys ...... 45 11.6 Airborne Electromagnetic Surveys ...... 47 11.7 Ground Geophysical Surveys ...... 53 11.8 Ground Magnetic Surveys ...... 53 11.9 Ground Electromagnetic Surveys ...... 57 11.10 IP/Resistivity Surveys ...... 60 11.11 Geological Surveys and Compilations ...... 66 12.0 DRILLING (Form 43-101 F1 item 10) ...... 69 12.1 Petrographic Studies on Drill Cores ...... 84

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13.0 SAMPLE PREPARATION,ANALYSES AND SECURITY (Form 43-101 F1 item 11) ...... 89 14.0 DATA VERIFICATION (Form 43-101 F1 item 12) ...... 91 15.0 MINERAL PROCESSING AND METALLURGICAL TESTING (Form 43-101 F1 item 13) ...... 97 16.0 MINERAL RESOURCE OR MINERAL RESERVE ESTIMATES, MINING AND RECOVERY METHODS,PROJECT INFRASTURCUTURE,MARKET STUDIES AND CONTRACTS, ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT CAPITAL AND OPERATING COSTS AND ECONOMIC ANALYSIS (Form 43-101 F1 items 14-22) ...... 97 17.0 ADJACENT PROPERTIES (Form 43-101 F1 item 23)...... 97 18.0 OTHER RELEVANT DATA AND INFORMATION (Form 43-101 F1 item 24) ..... 98 19.0 INTERPRETATION AND CONCUSIONS (Form 43-101 F1 item 25)...... 102 20.0 RECOMMENDATIONS (Form 43-101 F1 item 26) ...... 104 21.0 REFERENCES (Form 43-101 F1 item 27) ...... 110 22.0 Certificate of Qualified Person ...... 114

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LIST OF TABLES

Table 1 Assessment Status Table – Nueltin Lake Project……………………………..…15 Table 2 Pearson correlation matrix calculation results Table – Nueltin Lake Project (Wasyliuk, 1999)…..……………………………………………………………..40 Table 3 Factor Analysis Results Table – Nueltin Lake Project (Wasyliuk, 1999)…….....41 Table 4 Interpreted Conductor Parameters – Resolve Survey (Foster et al, 2007)…….....53 Table 5 IP/R Anomaly table – Sandybeach Lake area - Nueltin Lake Project (Zaluski et al, 2010) ...………………………………………………………………….64 Table 6 Drill Hole Targets Recommended in the Sandybeach Lake area –- Nueltin Lake Project (Charbonneau and Gandhi, 2002)…………………………………….….70 Table 7 Diamond Drill Hole Statistical Table – 2008 Program - Nueltin Lake Project (Zaluski et al, 2009)……………………………………………………………..70 Table 8 Summary of Mineralized Intervals, Grades and Thicknesses – 2008 Diamond Drilling Program - Nueltin Lake Project…………………………………...……76 Table 9 Preliminary “Ore” Mineralogy of the Neultin Lake project (Mysyk, 2008)……85 Table 10 Preliminary “Ore” Mineral Paragenesis – Sandybeach Lake Gold-Uranium Zone - Neultin Lake project (Mysyk, 2008)………………...……………………86 Table 11 Standard ASR 1 (ICP partial) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)……………………….92 Table 12 Standard ASR 2 (ICP partial) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)……………………….93 Table 13 Standard ASR 1 (ICP total) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)…………………………….93 Table 14 Standard LS 4 (ICP partial) and CG515 (ICP total) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)..…94 Table 15 Standard USTD 1, USTD 2 and USTD3 (U assay) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)…………….……94 Table 16 Standard Canmet BL Series (U assay) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)………………………….…94 Table 17 Field duplicate RPD values – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)………………………………………..95 Table 18 Compilation table of significant gold assay (FAAA and Metallic) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)…..96 Table 19 Recommended initial phase diamond drilling targets – Sandybeach Lake gold- Uranium Zone areas - Neultin Lake project……………………………………...107 Table 20 Recommended initial phase budget - Neultin Lake project…………………… 109

LIST OF FIGURES PAGE NO:

Figure 1 Location Map – Nueltin Lake Project, Nunavut…………………………………12 Figure 2 Claim and Lease Map – Nueltin Lake Project, Nunavut………………………...13 Figure 3 Geology of the Western Churchill Province – Nueltin Lake Project, Nunavut….22 Figure 4 Bedrock geology of the Nueltin Lake project area based on field mapping and drilling……………………………………………………………………………27

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Figure 5 Schematic cross-section for the Nueltin Lake mineralization and similar, metasomatic U deposits………………………………………………………….35 Figure 6 Ground magnetic contours, outcrops and mineralized boulder clusters, LES-1 claim, Nunavut (Gandhi and Charbonneau, 2008)………………………38 Figure 7 GSC Airborne Gamma Ray Spectrometry Compilation Series - Dubawnt River - Open File 4197 – Equivalent Uranium (Carlson et al, 2002) – Nueltin Lake area…………………………………………………………………………43 Figure 8 Terraquest Airborne Surveys Ltd. – Total Count Airborne Radiometric Survey Results – Nueltin Lake Project…………………………………………………..44 Figure 9 Terraquest Airborne Surveys Ltd. – Total Magnetic Intensity Survey Results - Nueltin Lake Project……………………………………………………………..46 Figure 10 Terraquest Magnetic Survey – Total Magnetic Intensity Survey Results summarizing major positive magnetic anomalies - Nueltin Lake Project……….47 Figure 11 Terraquest XDS EM Survey – Normalized Line Component Results - Nueltin Lake Project………………………………………………………………….…..49 Figure 12 Fugro Resolve Survey – Calculated 6200 Hz Half Space Resisitivity Results with overlaid Conductors - Nueltin Lake Project……………………………………..51 Figure 13 Fugro Resolve Survey – Compilation of Magnetic Results (colour contours), Resistivity Results (contours) and EM conductors (red lines) with overlaid mineralized boulder clusters (black dashed lines) – Sandybeach Lake Occurrence area - Nueltin Lake Project………………………………………………………52 Figure 14 Ground magnetic survey results – Ostapovitch, 2002 - Sandybeach Lake occurrence area - Nueltin Lake Project…………………………………………..55 Figure 15 Ground magnetic survey results (black contour lines), magnetic lineament analysis (green dashed lines), EM conductors (red lines) and mineralized boulder locations (coloured dots) – Sandybeach Lake occurrence area - Nueltin Lake Project……………………………………………………………………………56 Figure 16 Ground electromagnetic (HLEM -440 and 880 Hz data) survey results – Ostapovitch, 2002 - Sandybeach Lake occurrence area - Nueltin Lake Project....58 Figure 17 Compilation of electromagnetic (in blue) and IP/R (in red) survey results including the location of outrcops and mineralized boulder clusters - Sandybeach Lake occurrence area - Nueltin Lake Project (Gandhi and Charbonneau, 2008)……………………………………………………………...59

Figure 18 Compilation of IP/R anomalies (in green) including the location of outrcops and mineralized boulder clusters - Sandybeach Lake occurrence area - Nueltin Lake Project (Gandhi and Charbonneau, 2008)……………………………………..…61 Figure 19 IP/R survey data 2D pseudo-section – L12+50E - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)……………………………..….63 Figure 20 Colour Plot of 3D Inversion – 130 m chargeability depth slice including discrete chargeability and resistivity picks - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)……………………………………………..…65 Figure 21 Inferred bedrock geology and geophysical compilation of the Nueltin Lake project by Gandhi and Charbonneau (2008) area…………………………………….….67

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Figure 22 Total field magnetic map of the Nueltin Lake area. Note the presence of the NE- trending Sandybeach Lake magnetic high along the inferred Hudsonian structure (Zaluski et al, 2009)……………………………………………………………...68 Figure 23 Diamond drill hole location map - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)…………………………………………….….71 Figure 24- Geology and diamond drill hole location map - Nueltin Lake Project (Zaluski et al, 2009)……………………………………………………………………….....72 Figure 25 Diamond drill hole cross-section – DDH’s NLL-08-002 and NLL-08-009 - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)...75 Figure 26 Diamond drill hole cross-section – DDH NLL-08-003 - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)…………………....77 Figure 27 DDH NLL-08-02 - 6.3m - Back-scatter electron image - Mineralized Plagioclase-Actinolite Calcsilicate containing Pyrrhotite, Arsenopyrite, Cobaltite with minor gold…………………………………………………………… …....86 Figure 28 DDH NLL-08-002 - 7.1m – Photomicrograph under X-Nichols - Mineralized calcarkose, Plagioclase is grey, white and black with albite twinning; amphibole shows yellow and red birefringence; sulfides are black [15x, XN, FoV 7mm]….88 Figure 29 Raven Showing (U Core Rare Minerals) - Sandybeach Lake – Benton Claims (Sanguinetti, 1998)……………………………………………………………….99 Figure 30 Kiyuk Lake project (Prosperity Goldfields Corporation) gold showings overlainonthe geological map and airborne gravity ZZ tensor colour contour data (Turner, 2012)…………………………………………………………....100 Figure 31 Kiyuk Lake project (Prosperity Goldfields Corporation) gold showings overlain on 2007 airborne magnetic-TMI data (Turner, 2012)……………………...101 Figure 32 Proposed initial program drill hole locations – Nueltin Lake Project.………...108

LIST OF PHOTOS

Photo 1 Mineralized Boulders at Darcy’s Cluster (Zaluski et al, 2010)………………….30

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3.0 SUMMARY (FORM 43-101 F1 ITEM 1)

This report provides an independent technical review of the geology of, and exploration results from, the Nueltin Lake gold-uranium project, Nunavut, Canada. The report was prepared for URU Metals Limited (URU) to provide a summary of the geology of the region and the results of exploration on the property in order to allow filing of a Form 43-101 F1 technical report in accordance with National Instrument 43-101 (“N.I. 43-101”), if deemed necessary by URU. This report documents the results of exploration activities up to April 30, 2013.

The Nueltin Lake project is located in the of the Territory of Nunavut, Canada, and is centred approximately 10 km north of the border between Nunavut and the Province of . The project consists of 34 mineral claims and 1 mineral lease covering a combined area of approximately 27,279 ha (67,407 acres).

The Nueltin Lake project contains the Sandybeach Gold-Uranium Zone, a relatively new bedrock gold-uranium discovery made by Cameco during a diamond drilling program carried out in 2008. During the Cameco program, previously unknown bedrock mineralization was encountered in drill core at shallow depths (7 m to 94 m from surface), with assay grades up to 8.98 gAu/t over 5.95 m, 3.27 gAu/t over 7.25 m, 0.24% U3O8 over 1.25 m and 0.22% over 2.33 m. True thicknesses of these intersections have not been fully established.

Cameco’s 15 hole-1,553 m drill program was the only drilling campaign ever conducted on the Nueltin Lake project. This program was designed to test for the presence of a bedrock source(s) for mineralized gold and uranium bearing boulders that were initially discovered by GSC staff in 1982. Intermittent prospecting by various project operators between 1984 and 2008 outlined three main clusters of similar gold-uranium mineralized boulders located over a 1.5 km by 0.5 km wide area near Sandybeach Lake. Several of these boulders contain high grade gold up to 2,080 gAu/t and13.68% U3O8 and were believed to be derived from a proximal bedrock source.

Mineralization was intersected by Cameco in three of eleven drill holes collared to test magnetic and IP/Resistivity geophysical targets in the vicinity of one of the mineralized boulder clusters near Sandybeach Lake. The IP anomalies that are spatially associated with the three mineralized drill holes extend several hundred metres along strike and have not yet been adequately tested by diamond drilling.

The Sandybeach Lake area also contains at least two additional unsourced radioactive boulder clusters and a large scale positive magnetic anomaly. The magnetic anomaly, in turn, hosts several additional untested or undertested IP anomalies.

Although the origin and classification of mineralization at the Sandybeach Lake Gold-Uranium Zone is not fully understood, it shares numerous characteristics of gold-uranium occurrences at Kiyuk Lake, Nunavut and Gillander Lake, Manitoba. These gold-uranium occurrences can be characterized as pyrrhotite and arsenopyrite bearing albite and calc-silicate (pyroxene-tremolite) altered calcareous metasedimentary rocks of probable metasomatic origin.

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A compilation of targeting characteristics for metasomatic gold-uranium occurrences in this region has been included in this report. This compilation has been used to identify specific priority drill targets for ongoing exploration targeting in the Sandybeach Lake Gold-Uranium Zone area.

4.0 INTRODUCTION (FORM 43-101 F1 ITEM 2)

This report represents an independent technical review of the geology and previous exploration results up to April 30, 2013 on the Nueltin Lake project, Nunavut, Canada (Figure 1). The report was prepared for URU Metals Limited to provide a summary of the geology of the region and the results of exploration on the property in order to allow filing of this Form 43-101 F1 technical report in accordance with National Instrument 43-101 (“N.I. 43-101”). This report also provides a series of recommendations for future exploration on the project; at both property-wide and at Sandybeach Lake prospect scales.

On February 6th, 2013 URU Metals Limited announced that it had signed an option agreement for the Nueltin Lake project with Cameco Corporation (the current project owner). Upon successful completion of the option terms, the URU Metals will have earned a 70 per cent interest in the Project. According to the terms of the agreement, URU Metals Limited will be the project operator over the 7 year option earn-in period.

The Nueltin Lake project area has seen limited past exploration activity and is a grassroots exploration project engaged in the search for economic source(s) of gold and uranium mineralization in the southern portion of Nunavut.

Details regarding the geology of the property and previous exploration activities were provided in reports completed by Cameco Corporation which are referenced and summarized within this report. Additional studies conducted during this period include petrographic and scanning electron microscopy studies by Madore and Annesley (1998) and Mysyk (2008) and a study of the Quaternary geology of the area (Klassen, 1999). The geological setting of the project area is outlined by regional mapping undertaken by of Eade (1971 & 1973) and Aspler (1989) as well as a geological compilation by Tella (2007) and other referenced sources. The results of property scale mapping are presented in Zaluski (2009).

The author completed a site visit to the Nueltin Lake during the period June 21-25, 2008 as Chief Geoscientist for Cameco Corporation. The author also expects to conduct a property visit during URU Metals proposed summer 2013 exploration program.

The report is based on direct knowledge of the geology of the project, the review of all available assessment reports and the detailed review of all Cameco-URU Metals Limited’s database and reports. This report was compiled using all of the aforementioned sources of information.

The Nueltin Lake project is named after the largest lake in the project area. The name “Nueltin” is derived from a Dene () word “Nu-thel-tin-tu-ch-eh”, meaning "Sleeping Island Lake". The project lies within traditional lands claimed by the Northlands Denesoline based the community of Lac Brochet, Manitoba.

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5.0 RELIANCE ON OTHER EXPERTS (FORM 43-101 F1 ITEM 3)

Additional technical information that is beyond the scope or expertise of the author’s work is largely the work of other qualified persons, and is referred through references in the report text.

Information concerning claim status, ownership, and assessment requirements which are presented in Figure 2 and in Table 1 have been provided to the author by Cameco through URU Metals Limited, and have not been independently verified by the author. The author has no reason to doubt that the title situation is other than that which is presented herein.

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.

Tadoule Lake Lake Tadoule

. Lake Kiyuk .

Gillander Lake Gillander

Figure 1 – Location Map – Nueltin Lake Project, Nunavut.

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Nueltin Lake Lake Nueltin

Lake

Sandybeach Sandybeach

Figure 2 – Claim and Lease Map – Nueltin Lake Project, Nunavut.

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6.0 PROPERTY DESCRIPTION AND LOCATION (FORM 43-101 F1 ITEM 4)

The Nueltin Lake property is located in the southernmost part of the Kivalliq region of Nunavut on NTS map sheets 65B/4 and 65C/1, centered approximately 355 km west southwest of the community of , Nunavut and 366 km north-northwest of the town of Lynn Lake, Manitoba (Figure 1). The nearest communities to the Nueltin Lake property are Tadoule Lake and Lac Brochet, Manitoba which are located 180 km south southeast and 255 km south, respectively (Figure 1).

Specifically, the property is centered at approximately 99° 55’ W longitude and 60° 07’ N latitude, about ten kilometers north of the Manitoba-Nunavut border and directly west of Nueltin Lake (Figure 2).

The Nueltin Lake project consists of thirty-four (34) mineral claims and one mineral lease that total 27,279 ha (67,407 acres) (Figure 2). The most recent mineral claim and lease status is summarized in Table 1. The mineral claims are currently registered in the name of Cameco Corporation.

URU Metals Limited has signed an option agreement with Cameco Corporation. Under the terms of the option agreement, URU Metals will fund a total of CDN$2.5 million on exploration expenditures over a three-year period in return for a 51 per cent stake in the Project ("the First Option"). On completion of the First Option, URU has the option to earn an additional 19 per cent interest in the project by funding a further CDN$8.0 million in exploration over a four-year period ("the Second Option"). On successful completion of both options, URU Metals would have earned a 70 per cent interest in the Project by completing CDN$10.5 million in exploration expenditures over a seven-year period. URU Metals will be the project operator over the option earn-in period. After URU Metals completes its earn-in requirement under the Option Agreement, the parties will enter into a standard joint venture agreement, the form of which has already been agreed to and appended to the Option Agreement.

The Nueltin Lake project claims are subject to a 3% of Net Smelter Returns royalty payable to S. Gandhi and B. Charbonneau (1.5% each). Cameco-URU Metals Limited may elect to reduce the NSR to 1.5% (0.75% each) upon completion of a payment of $500,000 ($250,000 each) to S. Gandhi and B. Charbonneau.

Mineral exploration claims in Nunavut are located by physical staking of corner and boundary claim posts in the field. Figure 2 displays the location of the claims which form the Nueltin Lake project in Nunavut. Once staked, claims in Nunavut require annual work expenditures of $2 per hectare for 10 years, prior to conversion to lease. The sole current lease (No 4955 Les 1) requires annual lease payments of $1854 or $1 per acre. The earliest assessment deficiency will occur on claim K03080 (NLL 2) which will require $4,857.93 worth of work by August 8, 2013. With relatively modest exploration expenditures (estimated at $26,597.16) all claims will be in good standing until their required conversion to lease after 10 years of work in 2015-2016.

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The author is unaware of any adverse environmental waste disposal or any other liabilities due to previous mineral exploration or mining activities in the property area. Cameco (personal communication, G. Zaluski) has indicated that all required environmental requirements, based on their exploration work (1999-2009) have been fulfilled and regulatory sign-offs have been obtained.

Table 1 – Assessment Status Table – Nueltin Lake Project

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In order to conduct mineral exploration on the Nueltin Lake project, the following regulators must be consulted and appropriate approvals obtained.

1. AANDC (formerly INAC) Aboriginal Affairs and Northern Development Canada issue the land use permits for exploration on crown land. Permit documents must be applied for and approvals received. This step is essentially the step that starts the whole regulatory process.

2. NWB – the Nunavut Water Board provides water license and permits for water use, whether drilling, camp, or all other uses. Both the water license application as well as the remote camp questionnaire must be completed. There are several supporting documents that are required, as application form. This review process takes about 6-7 weeks and is the same for an amendment, an extension, or a new permit.

3. NPC – the Nunavut Planning Commission reviews all proposed land use and makes sure it conforms to the regional land use plan. It is important to contact the NPC to complete a land use checklist for completion and return to this agency.

4. NIRB – the Nunavut Impact Review Board reviews the impact of any proposed developments. A Screening 1 document must be filled out, along with the supporting documents indicated. This must be also translated into Inuktitut. For areas of greater concern, a more extensive Screening 2 document is required. The NIRB screening is required by AANDC, NWB, and KIA before they issue any water or land use licenses.

5. WSCC – this is the NT and NU equivalent of the Workmen’s Compensation Board. A work and safety plan must be submitted prior to the field program. The WSCC provides a template form that must be completed.

6. KIA – although not applicable for the Nueltin Lake project, the Kivalliq Association looks after land and water use on Inuit owned surface lands. Applications/approvals would be necessary had Nueltin Lake been on Inuit owned surface lands.

Although the Nueltin Lake project is located in Nunavut, with a majority Inuit population, the project is under a land claim by the Northlands Denesoline in Manitoba. The main impacted community is Lac Brochet, Manitoba and it is important that this community will be included in any consultation regarding the Nueltin Lake project.

Arviat is the closest Inuit community in Nunavut. Since any potential future mining development on the Nueltin Lake project would be in Nunavut, the community of Arviat will also need to be consulted with respect to exploration activities on the Nueltin Lake project.

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7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY (FORM 43-101 F1 ITEM 5)

The work area was accessed by the previous operator (Cameco) via fixed wing air charter from Thompson, Manitoba approximately 500 km to the southeast. Thompson is linked to southern Manitoba via paved all-weather roads and by daily scheduled airline flights from Winnipeg. The fixed wing air charters utilized the closest airstrip, located in Manitoba at the Nueltin Lake Lodge, Treeline Lodge, approximately 40 km to the southwest of the property. This lodge served as the accommodations for Cameco personnel during the most recent exploration programs on the property, while a geophysical program in 2009 was based at a small temporary camp on Sandybeach Lake, on Mineral Lease 4955.

Cameco personnel accessed the property from the Nueltin Lake Lodge Treeline Lodge by helicopter and to a lesser extent by float or ski equipped fixed wing aircraft. Helicopter access is good across the area, with temporary landing sites afforded by numerous swampy and treeless areas on the property. Most of the larger lakes in the region offer good access for both single and twin engine float or ski equipped aircraft. The closest float or ski plane base is located 312 km to the southwest at Points North Landing in Northern .

The nearest communities to the Nueltin Lake property are Tadoule Lake and Lac Brochet, Manitoba which are located 180 km south southeast and 255 km south, respectively, of the Nueltin Lake project (Figure 1).

Tadoule Lake is a First Nations community with an airstrip but few other services. The non- treaty community of Lac Brochet is located approximately 80 km north of the First Nations reserve community of Brochet. Lac Brochet is, in turn, located approximately 120 air km north of Lynn Lake Manitoba. Although internal roads exist in these communities, there are only winter roads or air links to the rest of the province. Gardewine North Transport service operates a bulk fuel haul into either community each winter via an ice road which originates in Lynn Lake.

Limited commercial facilities and accommodation are available in Lac Brochet. Medical services are provided by a federal nursing station containing six beds which is staffed by three nurses. The nearest hospital is located in Lynn Lake. The Northern Airports Authority of Manitoba Transportation operates a 3,000’ x 90’ gravel airstrip about half a mile from Lac Brochet. Two air carriers (Calm Air and Skyward Air) provide daily scheduled air service to the community from Thompson and Lynn Lake. Manitoba Hydro provides diesel service electric power to Lac Brochet via a 525 kW diesel generating station. The capacity of the electric service however is limited to 60 amps per household. Manitoba Telecom Services provides digital satellite communication service to the community (Avery, 2010).

The nearest hydroelectric power to the Nueltin Lake property area (in Manitoba) is located in Lynn Lake which is serviced by a 138 kV transmission line from the Laurie River I and II hydroelectric development located on South Indian Lake. There is currently a tabled proposal before Manitoba Hydro to link the communities of Brochet and Lac Brochet with power from Lynn Lake (Avery, 2010). Alternatively, hydro power is available to the project from the Island

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Falls-Points North transmission line in Saskatchewan which supplies power to the community of Wollaston Post, 290 km to the southwest.

The climate in the Nueltin Lake area is classified as subartic; with a severe winter, no dry season and a boreal moist forest biozone (Avery, 2010). Weather records for the Nueltin area indicate that July is the warmest month with an average temperature of 17.9 °C at noon. July is also, on average, the month with most sunshine. January is coldest with an average temperature of -35.5 °C at night. Winter has prolonged freezing periods with low daily temperatures often in the -30° to -40°C range. The movement of weather systems over the region in winter is related to the dominance of a low pressure vortex situated over the northern half of Baffin Island. During summer, this weather system weakens and retreats northward (Maxwell, 1986). Spring is typically a short transitional period lasting from May to June, characterized by rapid lengthening hours of daylight, above freezing temperatures, and diminishing snow cover. Rainfall and other precipitation have no distinct peak month. Snow is generally present up until mid-June and freezing of smaller lakes begins in September.

The physiography of southern Nunavut and northwestern Manitoba is typical of that elsewhere observed elsewhere in the Canadian Shield. The project area lies between the Selwyn Upland and the Taiga Shield Ecozone (Padbury and Acton, 1994); an important transition zone between the boreal forest and the arctic ecosystems further to the north. Padbury and Acton (1994) describe the Selwyn Upland as displaying gently undulating surfaces composed of glacial deposits, bedrock ridges, wetlands, and lakes which lies within the Hudson Bay drainage basin. Forests are dominated by stunted black spruce, jack pine and lesser birch and poplar. In the Taiga Shield Ecozone, forests are generally shorter and more open, consisting predominantly of black spruce and jack pine with a lichen understory. Although thick glacial deposits have subdued the topography, the regional northeast-southwest trend of bedrock ridges is apparent across the area.

Relief within the property bounds is fairly subdued with maximum elevations of ~360 m and minimum elevations of 277 m ASL. The minimum elevation is the elevation of Nueltin Lake. Extensive continental glaciation resulted in the deposition of abundant till and glacio-lacustrine materials and very limited outcrop, the latter estimated at less than 5% of the surface area.

Caribou are present in the area during the summer months as isolated animals or in smaller groups. In September, herds begin to coalesce and move southward through the area.

Migratory birds pass through in May and June and start to return south in September. Moose, fox, wolves and black bears are other larger mammals that exist in the area.

Mapping and prospecting are best conducted in the summer season, while most forms of geophysical surveys are best conducted in the winter and early spring months (late November to late May) when muskeg and lakes are frozen. Depending on specific site conditions, drilling can be carried out year round, but if possible summer drilling is preferable.

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8.0 HISTORY (FORM 43-101 F1 ITEM 6)

8.1 Work Undertaken prior to Cameco

The Nueltin Lake project area has seen sporadic exploration activities for sulphide and uranium mineralization since regional airborne magnetic and radiometric surveys were completed by the Geologic Survey of Canada (GSC) in the 1960s and 1970s (Charbonneau and Gandhi, 1986). Ground follow-up of airborne radiometric surveys undertaken by the GSC in the Sandybeach Lake area resulted in the discovery of mineralized boulders containing up to 12.6 ppm Au, 600 ppm U, and 390 ppm Mo in 1982 (Charbonneau and Gandhi, 1986).

The initial boulder discoveries were followed, in 1987, by the staking of a claim (# F13102, JAN-1) in the Sandybeach Lake area. Exploration was conducted intermittently on this claim over a 10-year period and comprised geological mapping, prospecting, soil geochemical survey, and limited ground magnetic surveying (Young, 1989, Gummer, 1990, McGowan, 1993). This work identified additional high grade mineralized boulders in the claim area with several containing visible gold (up to 2.583 oz/ton), scheelite, and up to 0.641% U3O8.

Property visits by personnel representing Inco Exploration (1990), Teck Corp. (1990) and Noranda Exploration Co. Ltd. (1993), confirmed the presence of mineralized boulders (McGowan, 1993, Reid, 1993). In 1995, a program of line cutting, ground magnetic/VLF surveys and bulk till sampling was conducted by Golden Band Resources (Lehnert-Thiel, 1996).

In 1994, Noranda Mining and Exploration Inc. (on behalf of Althone) explored claims adjacent to the current Nueltin Lake project area for Au-Co stratabound sulphidic mineralization within calc-silicate rocks associated with a regional magnetic high (Sanguinetti, 1998 - See Section 17.0 –Adjacent Properties). During the Noranda exploration programs, Au, Co, and As mineralization was found in outcrop. This outcropping mineralization, known as the Raven Zone, consists of a 20 m long trench located just west of Mineral Lease 4955 of the Nueltin Lake project claims and directly adjacent to the southwestern end of the previously mentioned regional magnetic high. The Raven showing is not part of the current Nueltin Lake property and is currently held by U Core Rare Metals as part of their Benton claims.

The exploration in the Sandybeach Lake area since 1998 was completed by Cameco Corporation work and is summarized in the following section.

8.2 Work Undertaken by Cameco – 1999-2009

Cameco has held Mineral Lease 4955 (formerly LES-1 claim) since 1998. In 1999, Cameco conducted a program of prospecting, geological mapping, and surficial geological investigations. Multi-element geochemical analysis was performed on boulder and outcrop samples collected at that time and petrographic interpretation of selected

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samples was undertaken (Halaburda, 2000, Wasyliuk, 1999 and Madore and Annesley, 1998). In addition, Dr. R. Klassen of the Geological Survey of Canada was contracted to investigate, map and report on the surficial geology of the Nueltin Lake project area (Klassen, 1998).

In 2002, a ground geophysical program including magnetic, HLEM, VLF, and IP/Resistivity surveys was undertaken, resulting in the identification of three ground reconnaissance targets and 16 drill targets (Ostapovitch, 2002).

No further work was done on the property until 2006, when rising uranium and gold prices reactivated exploration. A more regional exploration approach was taken and additional claims were acquired (Foster et al, 2007). The 2006 program was designed to geophysically identify geological features potentially related to U-Au mineralization using a fixed wing radiometric, gradient magnetic, and broadband VLF geophysical survey (Foster et al, 2007). Ground follow-up to the 2006 airborne survey was undertaken to ground check geophysical survey results and familiarize staff with geological setting and mineralization on the property.

In 2007, the ground reconnaissance program that commenced in 2006 was continued and a regional airborne RESOLVE® electromagnetic (EM) survey was completed (Foster et al, 2008). The objective of the RESOLVE® survey was to identify and map EM conductors and the resistivity properties of the bedrock in areas of primary interest from the 2006 preliminary results. These data, in conjunction with previous geophysical surveys and geological work, were compiled and used to identify exploration targets on the property. The geophysical data were interpreted and the results ground checked through selected outcrop visits and sampling (Foster et al, 2008).

An important synthesis of Nueltin Lake project geological, geochemical and geophysical data was completed by Gandhi and Charbonneau (2008). The airborne geophysical patterns and geological observations in and around the claim area were integrated to modify the property geology and identify drill targets. Based on this work, a drill program was proposed.

The 2008 field program consisted of a project-scale geological mapping and prospecting program and the drilling of 15 diamond drill holes (Zaluski et al, 2009). The drilling program was the only such program ever completed on the project and was primarily focused in the area of known mineralized boulders and spatially related magnetic and IP/Resistivity anomalies in the Sandybeach Lake area. Of the 15 diamond drill holes completed, 11 were drilled in the area of the mineralized boulders on Mineral Lease 4955. Gold and/or uranium mineralization was intersected in three of these drill holes.

The remainder of 2008 drill holes were completed to test reconnaissance targets on other claims. A simultaneous geological mapping program was carried out to document the geology and structural setting of the project area and to ground-truth the previous geological interpretation produced by Gandhi and Charbonneau in 2008.

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A brief prospecting and geological mapping program was carried out in conjunction with IP/Resistivity and gravity surveys during the summer of 2009 (Zaluski et al, 2010). The geophysical program included 21.5 km’s of IP-Resistivity surveying measured at four different frequencies and two different electrode spacing’s to expand and infill the 2002 program coverage. The gravity data proved to be unusable. Based on the IP/Resistivity survey results, a series of drill targeting recommendations were proposed (Zaluski et al, 2010).

In 2010, Cameco revised its overall exploration strategy, with the result that the Nueltin Lake was made available for option to other parties. No further exploration field work was completed after 2009.

9.0 GEOLOGICAL SETTING AND MINERALIZATION (FORM 43-101 F1 ITEM 7)

9.1 Regional Geology

The first documented geological mapping work in this general area was that of A.S. Cochrane’s track survey of what is now the in 1880 (Avery, 2010). Several years later, Tyrell (1897), and Tyrell and Dowling (1896) canoed along the Cochrane and Thlewiaza rivers and were the first principal observers of the geology in the region. Tyrell (1897) identified the main geomorphological elements of the landscape and recorded southwest to west- southwest striae in the area.

More recently, three phases of geological mapping were carried out in the vicinity of the Nueltin Lake project by the Geological Survey of Canada (Eade, 1971), (Eade, 1973) (Aspler, 1989). The GSC subsequently compiled the geology of portions of the Hearne and Rae Provinces in GSC Open File 5441 (Tella et al, 2007).

The Nueltin Lake project is located within Hearne Domain of the Churchill Province of the Canadian Shield (Figure 3). The Paleoproterozoic metasedimentary rocks of the Hurwitz and Wollaston Groups and the underlying Archean basement have all been subjected to varying degrees of metamorphism and structural deformation during the 1.86 – 1.78 Ga Trans Hudson Orogeny (Yeo and Delaney, 2007).

Overlying the Archean Hearne Craton “basement” is the ~2.45 – 1.96 Ga (Davis et al, 2005) Hurwitz Group. The Hurwitz Group consists of continental to shallow marine sediments deposited in an intracratonic basin. As summarized from Aspler and Chiarenzelli (1997), the Hurwitz Group is divided into seven formations, separated into lower and upper units by the Griffin intrusions. The lower Hurwitz Group consists of four formations: the fluvial sediments of the Noomut Formation at the base, the overlying glacial sediments of the Padlei Formation, the Kinga Formation fluvial and lacustrine sediments, and deep-water sediments and mafic volcanic rocks of the Ameto Formation. The upper Hurwitz Group consists of shallow marine carbonates and mudstones of the Watterson Formation, deltaic sediments of the Ducker Formation, and the coastal to fluvial siliciclastics and carbonates of the Tavani Formation.

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Nueltin Lake

Figure 3 – Geology of the Western Churchill Province – Nueltin Lake Project, Nunavut.

As summarized from Yeo and Delaney (2007), the Wollaston Supergroup (2.1 – 1.9 Ga) has been subdivided into four unconformity-bounded groups, each recording sedimentation in a different tectonic setting. The Courtney Lake Group records active sedimentation in a rift-setting and includes arkose, quartzite, conglomerate, pelite, and volcanic rocks. The Souter Lake Group represents passive margin sedimentation and includes a lower quartzite and argillite unit and an upper unit of fluvial quartzite. The Daly Lake Group records the first foreland basin sedimentation consisting of seven units of semipelite, pelite, arkose, and calcareous arkose. The Geikie River Group is a second

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foreland basin succession comprised of marble, calc-silicate, conglomerate, arkose, and calc-arkose. The Wollaston Supergroup rocks of the Nueltin Lake project area are interpreted to be part of this last group. The stratigraphy of in the Nueltin Lake area is shown in Figure 3.

Metamorphic grade increases southeastward, with the older Hurwitz Group in the northwest having undergone significantly lower grade metamorphism and deformation than the younger Wollaston Supergroup in the southeast. Outcrops and boulders of the Hurwitz Group often show primary sedimentary structures such as soft-sediment deformation and cross-bedding as well as primary compositional bedding. The metamorphic grade is greenschist to lower amphibolite facies. In contrast, the Wollaston Supergroup lithologies show much higher grades of metamorphism and deformation, including transposed bedding, the development of gneissosity, migmatization, growth of cordierite and garnet and partial melting to form pegmatite and aplite segregations. The metamorphic grade of the Wollaston Supergroup ranges from upper amphibolite to granulite.

Intrusive rocks in the region represent two intrusive suites, the Hudson and Nueltin Suites. Hudson Suite intrusions were formed by partial melting of metasedimentary rocks of the Wollaston Supergroup during the late stages of the Trans Hudson Orogeny and range in age from 1845 to 1795 Ma (Van Breeman et al, 2005). The Hudson granitoids are quartz monzonite to granodiorite in composition and are fine grained to pegmatitic with equigranular textures. They often display graphic intergrowth, and are frequently biotite and tourmaline-bearing. While some are foliated, most are not indicating their mainly post-tectonic nature.

In contrast, the Nueltin Suite intrusions are coarse-grained biotite granites containing abundant feldspar phenocrysts and often display rapakivi textures. Some are fluorite- bearing. They are completely post-tectonic, with ages from 1765 - 1750 Ma (van Breeman et al, 2005).

The regional trend of the foliation in the Nueltin Lake area is northeast and dips are steep to vertical. The rocks of the Wollaston Supergroup were subjected to four phases of ductile deformation during the Trans Hudson Orogeny. These included the development of the prominent mineral foliation (D1), the production of west-northwest to north- northwest upright folds (D2), tight to isoclinal northeast-trending, doubly plunging folds (D3), and the formation of open, northwest trending folds and locally the development of a steep foliation (D4) (Yeo and Delaney, 2007).

Quaternary studies in the southern Killaviq region (Aylsworth et al. 1989) suggest that the dominant pattern of glacial transport is from the NNE to the SSW. This is recorded by eskers, drumlins, fluting and ribbed moraine ridges. Zaluski (2006) also report glacial striae at 015° to 020°. Lake patterns are well correlated with underlying bedrock as a result of glacial scouring of the less resistant rock types and structures.

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9.2 Project Geology

Due to the very limited outcrop exposure (estimated at ~1%) in the project area, determination of the spatial distribution of map units was based on a combination of compilation of prior reconnaissance mapping as well as outcrop mapping, boulder field compositions, airborne geophysics (radiometrics and magnetics) and drill core logging by Cameco geologists (Figure 4 - Zaluski et al, 2009).

The various geological units identified on the project are described in the following section (from oldest to youngest).

Hurwitz Group (2.45 – 2.11 Ga) - Hurwitz Group rocks outcrop in the northern portion of the project area and consist of the following formations;

9.2.1 Kinga Formation

The oldest unit of the Hurwitz Group encountered on the property is the Kinga Formation. Outcrop exposure of the Kinga Formation is rare in the project area, but it does outcrop as large, east-west trending ridges just north of the project boundary. Boulders are commonly found throughout the project area. Within the Nueltin Lake project area, the Kinga Formation mainly consists of subfeldspathic to sublithic arenite with local quartz arenite. Magnetite is present in both outcrop and in drill core (DDH NLL-08-014), which is consistent with the east-west trending high magnetic response in the northern part of the property (Figure 4). The unit is commonly pink, cream or grey in colour. The Kinga Formation is locally biotite-rich, typically along bedding planes. It is often intruded by medium grained, pink granitic dykes, observed both in outcrop and boulders. Metamorphic grade within the Kinga Formation is low as indicated by the presence of chlorite (after biotite). Radioactivity is typically less than 300 cps and averages approximately 175 cps.

9.2.2 Ameto Formation

Outcrop exposure of the Ameto Formation is also very rare, with localized subcrop found in the central portion of the Nueltin Lake project area (Figure 4). Boulders of this unit are also rare, again only found within the central portion of the project. The Ameto Formation is dominated by a very fine to fine grained mudstone and siltstone with characteristic very fine bedding and rhythmic banding. The unit contains large amounts of biotite, lesser fine grained quartz and is locally sulphidic (pyrite and chalcopyrite). Radioactivity is typically less than 300 cps, averaging approximately 200 cps.

9.2.3 Watterson Formation

The youngest unit of the Hurwitz Group within the project is the Watterson Formation. No outcrop or boulders of this unit were found within the project area (Figure 4). However, the Watterson Formation was intersected in drill core in the

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central portion of the project area (DDH’s NLL-08-010 and NLL-08-011). The unit is dark grey to green in colour and consists of alternating siltstone and limestone/dolostone (carbonate-rich siltstone). Bedding is well preserved and soft sediment deformation features are visible suggesting little to no deformation and only low grade metamorphism.

Wollaston Supergroup (2.1 – 1.9 Ga) - Wollaston Supergroup rocks outcrop in the southern portion of the project area and consist of the following formations;

9.2.4 Graphitic Semipelitic-Pelitic Gneiss

Although no outcrops or boulders of graphitic paragneiss were identified on the property, this lithology was intersected in DDH NLL-08-013 in the southern portion of the property (Figure 4). The graphitic pelite is strongly foliated, as defined by the banding of the melanosome (graphite + biotite +/- garnet) and leucosome (quartz and feldspar). The graphite content typically ranges from 1 – 10% but locally up to 25% is found within structures. Sulphide content (mainly pyrite and pyrrhotite) is variable throughout and locally up to 5%.

9.2.5 Semipelitic-Pelitic Gneiss

Outcrop exposure of the semipelitic or pelitic gneiss is very rare, with only one outcrop mapped on the east side of the property (Figure 4). Boulders were, however, frequently observed in the southern and eastern parts of the property. These rocks typically contain significant amounts of biotite, quartz, and feldspar, display a well-developed gneissosity, and are frequently migmatitic – indicating high grade metamorphism.

9.2.6 Calc-Silicate Gneiss

Calc-silicate outcrops and boulders are limited to the central portions of the property (Figure 4). These rocks typically contain calc-silicate minerals such as amphibole and pyroxene (diopside) as well as significant amounts of albite; the latter most likely of metasomatic origin. Calc-silicates were also intersected in many drill holes within the central lease (4955, formerly the LES-1 claim) as well as in DDH’s NLL-08-012 and NLL-08-015 to the southwest. Within the central portion of the property, the calc-silicate outcrops and boulders typically contain abundant sulphide minerals (5 – 10%) – including pyrite, pyrrhotite and chalcopyrite – which commonly weather to prominent gossans and are locally the host for gold and pitchblende mineralization.

9.2.7 Hudson Granite (1.85 – 1.80 Ga)

Outcrop exposure of the Hudson Granite is minimal but is present in the southeastern portion of the property and was intersected in several drill holes (Figure 4). Hudson granite is found in boulders throughout much of the property, especially in the south. Outcrops and boulders are typically buff to grey in colour,

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equigranular, fine to coarse grained and consist mainly of feldspar and quartz, with lesser biotite, hornblende and local tourmaline. Background radioactivity is usually 200 – 400 cps but is occasionally above 500 cps.

9.2.8 Nueltin Granite (1.76 – 1.75 Ga)

The Nueltin Granite is present on the property as two phases; a fluorite-bearing phase to the northeast and a non-fluorite-bearing phase to the west (Figure 4). Outcrop exposure in the northern part of the property is limited but large accumulations of boulders are common. This unit was not intersected in any drill holes. The Nueltin Granite is white to pink in colour, with less common grey varieties. The granites are typically megacrystic, with large, prominent, prismatic feldspar crystals in a fine to coarse-grained groundmass of smoky quartz and lesser biotite and feldspar. The Nueltin Granite Suite exhibits relatively high background radioactivity (>500 cps) on a handheld scintillometer (GR-110). Airborne radiometric data also indicate high thorium concentrations.

9.2.9 Mafic Dykes (Unknown Age)

Mafic intrusive rocks were not observed in outcrop or boulders, nor were they intersected in any drill holes. The presence of this unit as an east-west trending dyke in the northern part of the map is based on the interpretation of the airborne magnetic data. This feature was previously interpreted as a faulted portion of the Kinga Formation (Gandhi and Charbonneau, 2008) but the magnetic signature is more consistent with a dyke (Zaluski, 2009). This is supported by the observations of Aspler et al (2000) that gabbro intrusions are present within the Kinga and Ameto formations.

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5

Nueltin GT (F-bearing) GT Nueltin Diabase pelite Gp Wollaston semipelite Gp Wollaston Granite Hudson siltstoneWatterson and shale Fm sandstone and siltstone Fm Ameto arkose Fm Kinga calcsilicate Gp Wollaston and arkose GT Nueltin 455,000 mE 455,000 Nueltin Lake Bedrock Geology

kilometers 2.5 450,000 mE 450,000 #

Wollaston Group

Hudsonian Thrust? Thrust? Thrust? Hudsonian Hudsonian Hudsonian Hudsonian Thrust? Hudsonian Hudsonian Thrust? Thrust? Hudsonian Hudsonian Hudsonian Thrust? Hudsonian Hudsonian Thrust? Thrust? Hudsonian Hudsonian 445,000 mE 445,000 0 # # # # # # # # # # # Hurwitz Group

# 440,000 mE 440,000 # #

435,000 mE 435,000 6,660,000 mN 6,660,000 6,670,000 mN 6,670,000 mN 6,665,000 6,675,000 mN 6,675,000

Figure 4 – Bedrock geology of the Nueltin Lake project area based on field mapping and drilling.

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9.3 Project Structural Geology

Bedding within Kinga Formation arkoses and quartzites of the Hurwitz Group strikes approximately east-west and dips gently to the south (Charbonneau and Gandhi, 2007), while foliation within the Wollaston Supergroup strikes NE and dips steeply to the south (80° – 87°). Measurements from the Wollaston Supergroup rocks are limited to outcrops of calc-silicate/arkose within the central claim.

The lack of diagnostic metamorphic minerals within the Hurwitz Group makes determination of the metamorphic grade difficult, but the lack of deformational features and the presence of chlorite (after biotite) suggest that only low-grade metamorphism occurred. The Wollaston Supergroup, by contrast, has undergone medium to high-grade metamorphism as indicated by the high degree of strain within the rocks, migmatization within the semipelitic unit and the presence of garnet within the graphitic lithologies.

Because of this significant difference in metamorphic grade, a structural contact (thrust fault) has been proposed between the older low-grade, relatively undeformed metasediments of the Hurwitz Group positioned immediately to the northwest of the medium to high-grade, strongly deformed and younger metasedimentary gneisses of the Wollaston Supergroup (Figure 4 - Zaluski et al, 2009).

9.4 Project Quaternary Geology

The Quaternary geology on the Nueltin Lake project was described by Klassen (1999) and is summarized as follows;

Till is the most widespread surficial deposit material on the project and consists of two main lithofacies. These tills comprise;

1. a thin to thick (1 to >5 m thick) sandy diamicton (referred to as 'Sandy till'), and 2. a thin (

The sandy till is characterized by a sandy matrix and by subangular to subrounded cobbles and small (5- 30 cm) boulders. This till includes far-traveled (> 50 km) rock types as a minor (< 1 %) component, including little-metamorphosed sedimentary and porphyritic volcanic lithologies. The far-traveled erratics tend to be small (< 2-4 cm) and sub-rounded. In the northern half of the property, sandy till is discontinuous, although it forms glacially streamlined landforms and transverse moraines (Rogan moraine). In the southern half of the project, it is thicker (2 to >5 m) and forms a blanket cover over hilltops. Based on inspection of aerial photographs, it appears these streamlined landforms there have been remolded by later ice flow.

The rubble till comprises angular boulders of local lithologies and, in contrast to sandy till, lacks a fine matrix. The boulders are typically 20 to >50 cm, and include rocks up to several metres size (Photo 1). Rubble till is widespread as a thin, discontinuous cover

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over both bedrock and sandy till. In the northern part of the property, boulders are continuous in swales between glacial landforms where they can be several clasts thick.

Clasts of rubble till are distinguished from those of sandy till as these are generally larger and more angular, occur at the surface and appear to be are exclusively of local bedrock provenance. The mineralized boulders of the Sandybeach Lake area are typically of rubble till material (Photo 1).

In addition to the previously described tills, glaciofluvial sediments were also observed. These include poorly to moderately well sorted boulder gravel and sandy gravel, and well sorted sand forming a large esker along the northern shore of Sandybeach Lake and related ice-marginal outwash complex. In common with sandy till, esker pebbles and cobbles include a minor component of far-traveled rocks. The esker is a well-defined ridge with a crest 5 to > 20 m above lake level, trending parallel to the long axis of the lake and lying at an angle to ice flow directions. Although it preferentially follows the northern side of the lake, between Crescent Creek and Brians Bay it crosses to the south side, recrossing to the northern shore about a kilometre farther southwest (Figure 6). The glaciofluvial deposits are restricted to the southern half of the property below elevations of about 300 m ASL. Thick (2 to >10 m) deposits of water lain, medium to fine-grained sand and gravelly sand flank the esker to elevations of about 290 -295 m ASL. Scattered, large (>l to 2 m) boulders on top of the sand were deposited either by meltout from an ice roof or by ice rafting in an ice­ marginal lake.

A second ridge, identified on aerial photographs, is located a kilometre south of the lake and parallels Sandybeach esker. The ridge is asymmetric, with the steeper slope facing southward, and it appears to conform to topography, wrapping around hills. The ridge could be either an esker or an ice-marginal moraine; its significance to local, late-glacial ice flow history has not been determined. It could be related to a late-glacial advance associated with Rogan moraine formation and its asymmetric shape suggests ice movement from the north.

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Photo 1 - Mineralized Boulders at Darcy’s Cluster (Zaluski et al, 2010).

10.0 DEPOSIT TYPES (FORM 43-101 F1 ITEM 8)

At this time, potential for three main types of gold and/or uranium mineralization are believed to be present on or near Nueltin Lake project mineral dispositions. These include;

1. An enigmatic variety of polymetallic sulphide-rich gold-uranium mineralization associated with albite-pyroxene rich metasomatic zones as exemplified by the Sandybeach Gold-Uranium Zone (Zaluski, 2009). This style of mineralization has been compared to metasomatite uranium deposits (Zalsuki, 2009) and IOCG deposits (Turner, 2012) and continues to be, the focus of exploration on the property. 2. Syngenetic uranium, thorium and rare earth element mineralization associated with late stage felsic dykes (Scott et al, 2012). 3. Gold and/ uranium bearing paleoplacer mineralization (Turner, 2012).

Brief descriptions of these deposit types follow;

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10.1 Gold-uranium mineralization (modified after Jiricka, 2009 and Zaluski, 2009)

Mineralization identified at the Sandybeach Gold-Uranium Zone on the Nueltin Lake project is somewhat unique, complex and not well understood. It is polymetallic in nature and is associated with sulphide–rich (py,po) sections of albite-pyroxene (diopside) rock within a mainly metasedimentary sequence of rocks in the Wollaston Supergroup. In the general Nueltin Lake area, the rocks of the Wollaston Supergroup consist primarily of calc-silicate, arkose, pelite and semi-pelite cut by younger Hudson and Nueltin granitic intrusions, respectively.

The host rocks for mineralization contain significant amounts of plagioclase (often 60% to 80 or 90%) and lesser amounts of amphibole (mainly actinolite, some hornblende and ferrohornblende) and/or clinopyroxene (mainly diopside, but also hedenbergite in some cases)(Madore and Annesley, 1998, Mysyk, 2008 and Mysyk, 2009). The plagioclase, as determined from the Michel-Lévy petrographic method and previous electron microprobe analyses, is extremely low calcium albite An<5 (Mysyk, 2009). Sodium-rich metasomatic fluid activity likely resulted in the observed albitization.

Significant trace to minor amounts of titanite and apatite are additional consistent mineralogical constituents of the host rock. These minerals as well as the amphibole and pyroxene are considered to have been formed by Ca-Mg bearing metasomatic fluids.

The mineralized boulders and drill core intersections of the Sandybeach Gold-Uranium Zone are dominated by pyrrhotite with lesser amounts of arsenopyrite and display a distinct association with Ca/Mg metasomatic /metamorphic actinolite, diopside, titanite and apatite and Na metasomatic albite. A broad spectrum of other ore minerals occur in trace amounts: gold, gold containing 10- 15% silver, chalcopyrite, pyrite, cobaltite, cobaltpentlandite, pentlandite, loellingite, galena, molybdenite, tellurides (Fe, Ni and Pb), scheelite, silver, coffinite and uraninite ) (Madore and Annesley, 1998, Mysyk, 2008 and Mysyk, 2009). The dominance of pyrrhotite and arsenopyrite indicate a reduced type of ore mineral depositional environment and the presence of minerals such as pyrrhotite, arsenopyrite, cobaltite, cobaltpentlandite, loellingite, Fe-and Ni tellurides suggest a mafic source for the ore fluids.

Visible gold has been observed (See frontispiece) and was identified in two samples using the electron microprobe. One grain occurs in DDH NLL-08-02-6.3 m on the exterior of a larger cobaltite grain (Mysyk, 2008). Gold with approximately 10- 15% Ag was found on the edge of a diopside grain. Numerous extremely fine (<0.02mm) equant yellow grains were noted in ore microscope petrographic examination of a number of thin sections; these were suspected to be gold and/or chalcopyrite, but could not be identified in electron microprobe examination. Individual select samples yielded assays of up to 66.32 gAu/t and >0.2% U.

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Uraninite and coffinite primarily occur as apparently early disseminations generally associated with Ca/Mg metasomatic amphibole and clinopyroxene, often in complex clusters with titanite and ilmenite rimmed by Fe-Mg chlorite. Minor amounts of uranium (pitchblende) was also observed as “later” fracture coatings and veinlets (Zaluski, 2009). Geochemical age dating, based on microprobe data, appears to indicate two distinct age groupings: one at 1598.4Ma ± 20Ma and at 1538.3Ma ± 4Ma.

Similar gold and uranium mineralization has been identified in the general area of the Nueltin Lake project. These include mineralization of the Airstrip, Cobalt, and Gold Point showings on Prosperity Goldfields Corporation’s Kiyuk Lake gold exploration project, located approximately 60 km northwest of Nueltin Lake (Figures 31 and 31 - Turner, 2012) and the Gillander gold-uranium occurrence of northwestern Manitoba (Figure 1 - Bohm et al, 2006).

The Kiyuk Lake mineralization has been described as containing locally high gold contents (up to 22 g/t) from several showings with anomalous albite-carbonate-actinolite ± magnetite-biotite-muscovite-chlorite-tourmaline alteration as well as elevated As, Bi, Co, Mo, Ni, W and U. Alteration of host stratigraphy is very prominent and pervasive at the Kiyuk showings and is represented primarily by albitization, as well as sodic-calcic alteration, epigenetic iron oxides (magnetite and hemaetite), and late sulphide mineralization (Turner, 2012).

Turner (2012) considered that the Kiyuk Lake mineralizing fluid/event shares many similarities with IOCG type mineralization but provided little specific evidence to support this analogy. Groves et al. (2010) describe IOCG deposits (sensu stricto) as “magmatic-hydrothermal deposits that contain economic Cu and Au grades, are structurally controlled, commonly contain significant volumes of breccia, are commonly associated with presulphide sodic or sodic-calcic alteration, have alteration and/or brecciation zones on a large, commonly regional, scale relative to economic mineralization, have abundant low Ti iron oxides and/or iron silicates intimately associated with, but generally paragenetically older than, Fe-Cu sulphides, have LREE enrichment and low S sulphides (lack of abundant pyrite), lack widespread quartz veins or silicification, and show a clear temporal, but not close spatial, relationship to major magmatic intrusions.” Groves et al. (2010) provide a fairly rigid definition of IOCG deposits, and include 5 empirical subdivisions: (1) IOCG-Au deposits, (2) P-rich iron oxide deposits, (3) carbonatite-iron oxide lithophile-element deposits, (4) Cu-Au porphyry and Fe skarn deposits, and (5) high-grade magnetite- replacement Au±Cu magnetite deposits. Although the IOCG model may be applicable much more work/data will be required to substantiate or refute this theory.

The Gillander Au-U occurrence (Bohm et al, 2006) consists of over 100 mineralized quartz-albite-potassic feldspar-diopside bearing calcsilicate boulders with accessory apatite, titanite and 1-2% disseminated pyrrhotite and pyrite. These boulders locally contain high-grade Au ( up to 25.1 gAu/t) with lesser but elevated U, REE, Pb, Ba and W contents. The bedrock source for the mineralized Gillander boulders has not yet been identified.

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Since the discovery of auriferous and uraniferous boulders and drill core on the Nueltin Lake property there has been considerable discussion as to the appropriate classification of this mineralization.

Initially, a skarn–related mineralization model was proposed by Cameco, related to either the Hudson or Nueltin igneous suites. However, further study revealed that the characteristics of the mineralization and alteration are somewhat inconsistent with a typical skarn, which are characterized by zoned alteration with both pyroxene and garnet. The absence of garnet and the presence of strong albitization at the Sandybeach Gold- Uranium Zone are uncharacteristic of skarn systems. The occurrence hosts polymetallic mineralization, including uranium and gold, as well as enrichments of Co, Te, Bi, Cu, Ni, Pb, Mo, W, and Ag. This combination of elements is also not typical of a skarn-type mineralization. In the strict sense, the “skarn” model also implies that both a metal-rich fluid and its source igneous pluton are injected into cooler carbonate-rich host rocks. Although altered (albitized-pyroxene) carbonate-bearing Wollaston Supergroup calcsilicate rocks in part host gold-uranium mineralization, no marble was observed and no clear relationship between either the Nueltin or Hudson granite suites and alteration or mineralization has been established; making classification of this mineralization as a traditional skarn uncertain.

Ca-Mg-Na metasomatic alteration, potentially initiated during Hudsonian tectonism, with stratigraphically controlled fluid movement through a large structural conduit, is a potential alternative genetic model for the mineralization. Petrographic work on select samples has suggested that sulphides and the uranium and gold mineralization are controlled by initial permeability and reactivity in the host rock, and therefore stratigraphy is a major control on the location of the mineralization.

Cameco (Zaluski et al, 2009) identified the metasomatite uranium deposit type of Dahlkamp (1993), as the closest analog to the Sandybeach Gold-Uranium Zone. Dahlkamp defined metasomatite uranium deposits as “unevenly disseminated uranium in structurally deformed rocks that were affected by alkali metasomatism of dominantly sodium tendency”. If this is a correct classification, the Sandybeach Gold-Uranium Zone would be of the metasomatized metasediment subtype, typified by Krivorozhsky-Zheltye Vody, Ukraine (Dahlkamp, 1993). These deposit types are associated with strong albitization along fracture zones and folds in metasedimentary rocks and are associated with Na-metasomatism and carbonate alteration. Barthel (1987) outlines the general characteristics of albitite-related uranium occurrences.

However, pyroxenes and amphiboles at Krivorozhsky-Zheltye Vody are described as being dominantly alkalic (aegerine and riebeckite) rather than Ca-Mg silicates (clinopyroxene, mainly diopside, but also hedenbergite) observed at Nueltin Lake. Most importantly, gold is not reported to be a significant constituent of metasomatite uranium deposits. It is been concluded, therefore, because of the significant and important differences between the Sandybeach Lake Au-U occurrence and typical metasomatite uranium deposits, gold and uranium mineralization on the Nueltin Lake project does not comfortably fit existing deposit classification schemes and may represent a significant

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variant or alternatively previously undocumented deposit type. A model by Zaluski (2009) for Sandybeach Lake style metasomatic Au-U mineralization is presented in Figure 5.

10.2 Syngenetic Uranium, Thorium and Rare Earth Element mineralization

Occurrences of primary uranium, thorium, and rare-earth elements are known in the Nueltin Lake area and are associated with aplite and pegmatitic dykes within the Nueltin Lake granitic suite. Two occurrences of this type are described by Scott et al, 2012. These occurrences, hosted by aplite and pegmatite dykes, respectively, are rich in uranothorite and allanite, which are also present in the host Nueltin Lake granite. The aplite dyke is enriched in uranium (56.8 ppm) and thorium (770 ppm), and the pegmatite is enriched in uranium (610 ppm), thorium (8839 ppm) and rare earth elements (total 86,153 ppm). These enrichments are 10 to 1000 times that observed within the Nueltin Lake pluton. Scott et al (2012) interprets that these U, Th and REE anomalies most likely represent late-stage, high fractionated melts from the Nueltin granite.

10.3 Uranium and/or Gold bearing Paleoplacer mineralization

Potential for gold and/or uranium bearing paleoplacers similar to those of the Witswatersrand Basin of South Africa and of the Elliot Lake Huronian Supergroup in Northern Ontario, Canada has been hypothesized to occur in the Hurwitz Group (Turner, 2012). The potential for this type of mineralization has yet to be fully established.

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Figure 5 – Schematic cross-section for the Nueltin Lake mineralization and similar, metasomatic U deposits (Zaluski et al, 2010).

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11.0 EXPLORATION (FORM 43-101 F1 ITEM 9)

As indicated in the section on “History”, the Nueltin Lake project area has been subjected to sporadic small-scale exploration efforts from 1982 until 1999, at which time Cameco became the project owner and operator.

In this section, key exploration features identified during the past exploration programs will be described and the significance to ongoing exploration efforts will be identified under three main headings;

1. Boulder Prospecting, Boulder Geochemistry, Boulder Petrography and Till Studies 2. Geophysical Surveys 3. Geological Mapping and Compilations

11.1 Boulder Prospecting, Boulder Geochemistry, Boulder Petrography and Till Studies

The majority of the early pre-drilling exploration on the Nueltin Lake project focused on boulder prospecting (Young, 1989), (Gummer, 1990) and (McGowan, 1993), (Halaburda, 2000) and (Zaluski, 2009), boulder geochemistry (Wasyliuk, 1998), boulder petrography (Madore and Annesley, 1999) and related till studies (Klassen, 1998).

Dozens of mineralized boulders have been located in the Sandybeach Lake area during prior prospecting campaigns (Photo 1). However, the author has determined that, to date, no thorough compilation of all mineralized boulders has been completed. This appears to be the case for a number of reasons including;

1. the protracted (1982-2009) multi-party (GSC, Claude, Golden Band/Shore Gold, Cameco) exploration history, 2. the lack of GPS control during the earliest work and 3. the possibility that the same mineralized boulders may have been sampled more than once.

As a consequence, only the mineralized boulders described by Cameco have been compiled in Figure 6. The compiled mineralized boulders sampled by Cameco include;

1. In 1998, sixteen boulders were sampled, analyzed geochemically and studied petrographically (Charbonneau and Gandhi, 2002) (Madore and Annesley, 1998). 2. In 1999, a total of 93 samples of mineralized boulders and outcrops were collected (Halaburda, 2000). These were also analyzed geochemically and studied petrographically (Charbonneau and Gandhi, 2002) (Madore and Annesley, 1998). Most of these boulders were determined to be similar in nature and location to those sampled in 1998 (Madore and Annesley, 1999). 3. During the 2008 and 2009 exploration programs, a total of twenty-six gossanous and altered calc-silicate and metasedimentary boulders were collected and analyzed (Zaluski et al, 2009 and Zaluski et al, 2010)

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Rusty mineralized boulders (Fe-stained sulphide-rich and/or radioactive) were preferentially sampled in all programs.

When viewed together, the distribution of the mineralized boulders defines a vaguely south-trending corridor of apparent boulder clusters about a kilometre long and half a kilometre wide. There are three known clusters, namely the Brian Bay, Crescent Creek and Darcy clusters within this corridor (Figure 6) (Gandhi and Charbonneau, 1998).

Geochemical analysis identified six significantly auriferous boulders in the Darcy cluster, containing 2.49 to 66.89 ozAu/ ton. The data also show locally coincident uranium enrichment, ranging from 1,260 to 81,000 ppm U (Halaburda et al, 2000).

Multi-element geochemical analysis and interpretive work has documented the complex nature of Sandybeach style mineralization (Wasyliuk, 1999). The mineralized boulders are enriched in U-Au-Ni-Co-As-Mo-W, as well as Pb, Se, Te and the REE's. A Pearson correlation matrix was calculated (Table 3) and a principal component factor analysis was carried out (Table 2). The author cautions that these statistical results should be considered to be preliminary because of the limited sample population (N).

The statistical results indicate that U enrichment correlates with increases in Pb and heavy REE contents, while gold enrichment best correlates with increases in As, Mo and Se abundances. It is important to note that gold is not directly correlatable with uranium suggesting that the concentration of these elements are the result of distinct and possibly separate mineralization events.

Other elemental associations include:

1. Ni-Co-Fe203-Cd-Sb; 2. Sn-MgO-MnO-Cu; 3. La-Ce-Ta-W-Hg-P205 and 4. Ba-K20-Te-Pd.

Petrographic and mineralogical studies were carried out on a subset of the 1999 mineralized boulders (Madore and Annesley, 1999). Relevant conclusions of this study included;

1. The highest uranium values occur in rocks described as albitite skarn and syenite. The examined granitoid rocks and skarns are variably uraniferous and gold- bearing. 2. The examined calc-silicate rocks/gneisses are metasomatic in origin. Original protoliths are not known for the most part, although protoliths are suspected to be calcareous sediments and potentially calcium-rich mafic rocks (e.g. diorite/gabbros, amphibolites). 3. The host assemblage is pyroxene- and albite-dominant. No metasomatic garnet was identified. 4. Native gold was observed, occurring with pyrite, arsenopyrite, uraninite, scheelite, and possible tellurides. The gold appears to have formed at the time of

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sulphide formation and later than the uraninite. Most of the sulphide, telluride, and gold assemblages are the result high-temperature contact metamorphism/metasomatism) and later remobilization. 5. Pyrrhotite is the main sulphide phase with lesser arsenopyrite, pyrite, chalcopyrite, molybdenite, and galena.

Figure 6 – Ground magnetic contours, outcrops and mineralized boulder clusters, LES-1 claim, Nunavut (Gandhi and Charbonneau, 2008). 2013 Independent Technical Report on the Nueltin Lake Project, Nunavut, Canada Page 38 of 113

6. Secondary sulphide mineralization is associated with K-metasomatism and fluorite formation. 7. Bi-Ni-Pb-Au tellurides may be present, but SEM work is needed for a positive identification.

During the 2008, prospecting and mapping program twelve gossanous and altered calc- silicate and metasedimentary boulders were collected and analyzed. These samples typically contain elevated As, Co, Cu, Mo, Ni, Te, Th, U, W, REEs and Na2O compared to unaltered metasediments and are comparable to those found in the previously discovered mineralized boulders and with subsequent drill intercepts. For unknown reasons, gold assays were not reported for these samples.

During the 2009 prospecting program, fourteen additional boulders were sampled. Geochemical analysis, including gold by fire assay, was completed on the samples and results showed excellent uranium and gold results. Mineralized boulders CAM 31802 and CAM32017 gave assays of 94.1gAu/t and 0.28% U and 84gAu/t and 0.64% U, respectively. Mineralized samples collected in 2009 were also determined to be consistent with the samples found in the historic boulder clusters and from mineralized intercepts subsequently obtained from the 2008 diamond drilling program. The majority of these samples were of strongly altered Wollaston Supergroup arkosic and calc-silicate metasediments displaying albitic metasomatism. All of these samples contain significant amounts of sulphide minerals and one sample of calc-silicate altered arkose contained a large pitchblende vein, 2 cm in width and 5 cm in length. This sample was subjected to chemical age dating using the Saskatchewan Research Council’s electron microprobe. Geochemical age dating results indicate two distinct age groupings: one at 1598.4Ma ± 20Ma and at 1538.3Ma ± 4Ma, both ages being distinctly post-Hudson and post-Nueltin intrusive in age (Zaluski, 2009).

A significant outcome of mineralized boulder studies was the recognition that the mineralized boulders are part of a locally derived rubble till (Klassen, 1999). Subsequent diamond drill testing in 2008 (Zaluski et al, 2009 – DDH NLL-08-02) proved that the boulders were indeed locally derived.

Observations by Klassen (1998) also indicated that the dominant surface cover material in the Sandybeach Gold-Uranium Zone area is a distally derived sandy till. Klassen therefore implied that this sandy till is not particularly representative of local bedrock and is of questionable value as an exploration sample media. This conclusion was supported by the poor results of prior till geochemical surveys (Lehnert-Thiel, 1996 and Zaluski et al, 2008). No significant concentrations of gold grains or gold contents were identified in either till geochemical survey, despite the fact that these surveys were carried out within and near the mineralized boulder clusters.

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Table 2 – Pearson correlation matrix calculation results Table – Nueltin Lake Project (Wasyliuk, 1999)

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Table 3 – Factor Analysis Results Table – Nueltin Lake Project (Wasyliuk, 1999)

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11.2 Geophysical Surveys

Prior geophysical surveys over the Nueltin Lake project can be classified into two basic types and several subtypes depending on the physical properties that were being measured. These survey types and subtypes include;

1. Airborne geophysical methods, including radiometric, magnetic and electromagnetic surveys 2. Ground geophysical surveys, including magnetic, HLEM, VLF, and IP/Resistivity surveys.

Each of these components will be described separately in the following sections;

11.3 Airborne Geophysical Methods

11.4 Airborne Radiometric Surveys

The initial regional airborne gamma spectrometric survey in this region was conducted by the Geological Survey of Canada in 1978. Subsequent ground checking in 1982 of a radiometric anomaly indicated that the source was related to a weakly uraniferous portion of a quartz monzonite pluton (Figure 7). Ground work in 1982 and 1985 also identified U, Au, Co, W and Mo bearing sulphide-rich boulders at Sandybeach Lake (Charbonneau and Swettenham, 1986).

An airborne radiometric survey completed in 2006 (Foster et al., 2007) provided much more detailed and focused coverage on the Nueltin Lake project. The 2006 survey was flown as a combined fixed wing magnetic gradiometer, VLF-EM and radiometric airborne survey by Terraquest Limited of Markham, Ontario. Flight lines and tie lines, as displayed in Figure 8, were flown 200 m and 2000 m apart with azimuths of 125° and 35°, respectively resulting in 2,895 line-km of survey coverage. A Beechcraft King Air 90, based out of the Tree Line Lodge in Manitoba was used to collect the data. The nominal height of the survey was 70 m above the terrain, with data collected every 6 to 8 m at an average flight speed of 240 km/h.

The gamma ray spectrometer used a 33.6 litre (downward looking) and 8.4 litre (upward looking), 256 channel Picoenvirotec Ltd., GRS 410. The gamma ray spectrometer used for the radiometric survey measures the three most common gamma ray emitters seen in nature and are reported in equivalences of potassium (eK, %), uranium (eU, ppm) and thorium (eTh, ppm). Since gamma rays are quickly attenuated by adsorption and scattering when passing through matter, the radiometric survey is only representative of the material within the upper half-meter of the terrain. Areas with consistent proportions of these elements often represent a common rock type, which allows the mapping and identification of different geologic units as well as identifying areas anomalous in uranium.

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Figure 7 – GSC Airborne Gamma Ray Spectrometry Compilation Series - Dubawnt River - Open File 4197 – Equivalent Uranium (Carlson et al, 2002) – Nueltin Lake area

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Figure 8 – Terraquest Airborne Surveys Ltd. – Total Count Airborne Radiometric Survey Results – Nueltin Lake Project

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The presence of till cover within the survey area makes it difficult to draw definitive conclusions from the radiometric data. Regardless of this fact, Gandhi et al (2008) suggest that the radiometric image is generally representative of the underlying geology. The Nueltin granites produced the highest total counts (Figure 8), representing the highest concentrations of potassium, uranium and thorium. Numerous small scale radiometric anomalies occur across the property, many of which have no record of ground follow up evaluation.

11.5 Airborne Magnetic Surveys

The 2006 Terraquest and 2007 Fugro RESOLVE® surveys also included magnetometer systems (Foster et al., 2007). The Terraquest system comprised three cesium vapor magnetometers, one mounted in a tail stinger, with the other two located on either wing tip. The RESOLVE® magnetic survey system collected total magnetic field data using a optically pumped cesium magnetometer. The tighter line spacing and lower survey height in the RESOLVE® survey provided improved resolution in the primary areas of interest when compared to the Terraquest data collected in 2006.

Both magnetic surveys were designed to map out variability in the Earth’s magnetic field and effectively provided similar results. Figure 9 displays the Terraquest total magnetic field survey results.

The observed magnetic susceptibility ranges of hand samples and outcrops visited in 2006 and 2007 revealed that the Hudson granite has the lowest magnetic susceptibility (0.04 to 0.1) while the Hurwitz Group rocks had the highest (0.1 to >10), due to grains of magnetite visible in hand samples. The Nueltin granite was also observed to have a high magnetic susceptibility (0.6 to 2.5). Although limited in outcrop, it is expected that the Wollaston Group has highly variable magnetic susceptibility in this area based on the coincidental magnetic lows and highs with known outcrop occupied by this unit.

Three magnetic domains are observed in Figure 9 and are summarized in Figure 10. Magnetic domain A is interpreted primarily as the result of magnetite rich metasediments of the Hurwitz Group. The eastern portion of this domain is dominated by the Nueltin granite, is observed as a large circular feature. It is worth noting that the Nueltin granite observed in other areas does not display such a high magnetic response, suggesting the presence Hurwitz Group rocks in this area. Magnetic domain B, located in the LES-1 claim area, is believed to be an isolated unit of Wollaston Group metasediments based upon the outcrop in the area (Map 4). Magnetic domain C is believed to be associated with the Wollaston Domain and is dominated by moderately strong linear magnetic highs.

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Figure 9 – Terraquest Airborne Surveys Ltd. – Total Magnetic Intensity Survey Results - Nueltin Lake Project

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Figure 10 – Terraquest Magnetic Survey – Total Magnetic Intensity Survey Results summarizing major positive magnetic anomalies - Nueltin Lake Project

11.6 Airborne Electromagnetic Surveys

Included in the Terraquest survey was the proprietary XDS VLF-EM (Very Low Frequency-Electromagnetic) system that measures a broadband response between 22.0 kHz and 26.0 kHz, with three orthogonal air-core coils mounted in the pod of the stinger.

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The XDS VLF-EM system is a passive electromagnetic system that detects the response of the terrain to electromagnetic induction caused by radio signals emitted from submarine communication towers, and spheric sources of electromagnetic waves ranging in frequency from 22.0 to 26.0 kHz. Responses from this system may indicate geologic contacts and conductors within 30 m of the surface. Lakes and topography also influence the response making interpretation difficult. At the time of the survey, this system was still in the development stage and data interpretation was limited. Results are presented in Figure 11(Foster et al., 2007).

Partially as a consequence of the limited ability to interpret the XDS airborne VLF-EM data, a RESOLVE® helicopter electromagnetic survey was completed over the property by Fugro Airborne Surveys of Mississauga, Ontario. (Foster et al., 2007) The distance between flight lines varied between 100 m line spacing in areas of primary interest, to 200 m in areas of secondary interest. Tie lines spacing was 2000 m and in total 1,480 line-km was collected during the survey. The survey equipment was mounted on an AS350B3 helicopter. Data was collected at an average of 144 km/h, translating into data being recorded approximately every 4 m along the flight path. The RESOLVE® transmitter/receiving coils are located in a bird located 30 m below the helicopter with a nominal bird-terrain clearance of 30 m.

The RESOLVE® system consists of five coil pairs operating at logarithmically spaced frequencies. Co-planar frequencies are sensitive to flat lying conductors while the single co-axial frequency is sensitive to vertical conductors and contacts. The depth of investigation varies for each frequency due to absorption and dispersion of the transmitted electromagnetic energy. The physical mechanisms that facilitate the attenuation are more effective at high frequencies; this allows lower frequencies to have a greater depth of penetration. A simple mathematical representation of this is skin depth, which describes the depth to which an electromagnetic wave will travel in a given homogeneous half-space before being attenuated to 1/e of its original amplitude. This depth is proportional to the square root of a resistivity/frequency ratio (Telford, 1998). The depth of investigation is approximately half the skin depth, which in this survey is not expected to exceed 120 m.

The objectives for the 2007 Airborne RESOLVE® EM survey were to map alteration or sulphide mineralization and structure within the LES-1 claim and surrounding area of interest. Identified conductors are illustrated in Figure 12 and their strengths are interpreted qualitatively as weak, moderate, or strong. Weak conductors are defined as being between 100 ohm-m and 10 ohm-m, moderate conductors between 10 ohm-m and 1 ohm-m and strong conductors less than 1 ohm-m. Forward modeling for this purpose was done using the Maxwell Plate algorithm supplied with the Maxwell Electromagnetic modeling software developed by ElectroMagnetic Imaging Technology Pty. Ltd, of Midland, Australia.

Data from ten RESOLVE® survey lines running perpendicular to conductive trends were chosen for geophysical inversions to determine the qualitative depth extent of these features. The inversion software package used was EMIGMA, created by PetrosEikon

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Incorporated of Brampton, Ontario. The Occam type inversion provided in EMIGMA was used to create the sections seen in these figures with the assumption that the solution for each station is based on a layered earth.

Figure 11 – Terraquest XDS EM Survey – Normalized Line Component Results - Nueltin Lake Project

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Three anomalous conductive trends were identified within the surveyed area and were labeled conductor groups A, B and C on Figure 12. Quantitative parameters estimated for each conductor trend are included in Table 4.

The conductors referenced as group A are located within and proximal to the original LES-1 claim displayed in Figures 12 and 13. The historic sulphide and uranium mineralized boulder fields are located between conductors A1 and A2. Short, discontinuous conductors in the area of the historic boulder trains were identified in the general and were essentially coincident with conductors located by the 2002 HLEM and VLF-EM surveys. While these short strike length conductors are coincident with the mineralized boulder train, conductors A1 and A2 are much more extensive. Broad conductive zones, possibly representing thicker overburden, are also interpreted to be associated with the A1 conductor. These zones could be explained by overburden up to 30 m thick with a resistivity of 300 ohm-m based upon forward modeling results. The western-most end of conductor A1 corresponds to a chargeability anomaly seen in the 2002 IP/Resistivity survey. The A1 conductor strikes northeast for 1,800 m and is fully located within the Nueltin Lake project. The RESOLVE® data over the portion of conductor A suggest the conductor is dipping to the southeast.

Conductor A2 is interpreted to have a much longer strike length than A1; striking northeast for approximately 6 km. The Raven trench, located off-property at the southern end of this feature, contains diseeminated sulphide mineralization. Only limited sections of conductor A2 are within the Nueltin Lake claims, with the remainder located off- property. Sections of the A2 conductor, primarily those located under Sandybeach Lake, become wide and tabular based upon the RESOLVE® data. Conductors A2-a and A2 produce large well-defined anomalies located within Cameco claim K03096. Both features appear to be flat lying and tabular.

The B1 conductor strikes east-west, parallel flanking to a slight magnetic high (Figure 12). On some flight lines, multiple conductive responses are observed. The B1 and B2 conductors are interpreted to dip steeply to the south. The source of these conductors is unclear, but they are believed to be associated with structure and dominant uranium signatures.

Conductor C1 occurs to the south of the broad magnetic high associated with the Hurwitz Group and the Nueltin Granite (Figure 12). Conductor C1 appears to be a complex, wide, possibly sub-vertical conductor. This feature is discontinuous and marks out a large curved path that matches that of magnetic domain “A” to the north. Projecting the C1 conductor to the east, it is possible that the C1 and C2 are related.

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Figure 12 – Fugro Resolve Survey – Calculated 6200 Hz Half Space Resisitivity Results with overlaid Conductors - Nueltin Lake Project

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Figure 13 – Fugro Resolve Survey – Compilation of Magnetic Results (colour contours), Resistivity Results (contours) and EM conductors (red lines) with overlaid mineralized boulder clusters (black dashed lines) – Sandybeach Lake Occurrence area - Nueltin Lake Project

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Relative Conductor Shape Dipping Depth Centered Centered Rated Name Conductance (m) Easting (m) Northing (m) A1 Strong Thick Dike (~40 m) SE >80 <10 m 444510 6665715 A1 Strong Thick Dike (~40 m) SE >80 <10 m 444610 6665766 A1 Weak Unknown Unknown <50 m 444557 6665647 A1 Weak Unknown Unknown <50 m 444650 6665700

A3-d Moderate Cylinder (~radius=20m) Vertical <10 m 444400 6665180 A3-c Strong Thick Dike (~50m) NW >80 <10 m 444205 6664880 A3-c Strong Thick Dike (~50m) Vertical <10 m 444130 6664850 A2 Weak Flat lying/ tabular Horizontal <35 m 444500 6663890 A2 Weak Flat lying/ tabular Horizontal <35 m 444605 6663865 A2 Weak Flat lying/ tabular Horizontal <35 m 444728 6663875 A2 Weak Flat lying/ tabular Horizontal <35 m 444400 6663820 A2 Weak Flat lying/ tabular Horizontal <35 m 444290 6663795

B1 Strong Thin Dike (<20 m) N >80 <10 m 448400 6660320 B2 Moderate Thin Dike (<10 m) Vertical <10 m 446490 6659720

Table 4 – Interpreted Conductor Parameters – Resolve Survey (Foster et al, 2007)

11.7 Ground Geophysical Surveys

11.8 Ground Magnetic Surveys

Ground magnetometer survey coverage in the Sandybeach Lake area of the Nueltin Lake project was completed 2002 and consisted of a total of 38.05 line-kilometres of combined total field/vertical gradient magnetometer survey (Figure 14). Data was collected sing Scintrex OMNI PLUS proton precession magnetometers. Magnetometer readings were acquired at 12.5 metre station intervals on BLOOON and all cross lines (Ostapovitch, 2002).

A Scintrex OMNI PLUS base station magnetometer was set up on the grid (in the PMG exploration field camp) to monitor diurnal total field magnetic variations during the course of the survey. The base station unit was synchronized with the OMNI PLUS field units at the start of each survey day; base station readings were then recorded every 15 seconds, throughout the day.

At the end of each field day, the total field and vertical gradient magnetometer survey data were down loaded from the OMNI field and base station units via serial cable link to a Compaq personal computer (using Geosoft lnc.'s IDUMP communication software). In the dumping process diurnal drift corrections were applied to the raw, total field magnetometer survey data. The drift-corrected data were then edited, reduced to Geosoft .XYZ format, and collated.

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Data interpretation of the magnetic by Gandhi and Charbonneau, (2002) indicated that the magnetic survey (Figures 14 and 15) displays several noteworthy features:

1. A northeast-trending anomaly ridge, approximately 2500 m long and 500 m wide, peaking at -1000 nT, in the southern half of the grid. 2. Several linear breaks that suggest faults. 3. Two high/ low boundaries or embayments, one on the north side of the magnetic ridge and the other the south side, are regarded as significant because of their proximity to the potential bedrock sources of the mineralized boulder clusters.

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Figure 14 – Ground magnetic survey results – Ostapovitch, 2002 - Sandybeach Lake occurrence area - Nueltin Lake Project

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Figure 15 – Ground magnetic survey results (black contour lines), magnetic lineament analysis (green dashed lines), EM conductors (red lines) and mineralized boulder locations (colored dots) – Sandybeach Lake occurrence area - Nueltin Lake Project

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11.9 Ground Electromagnetic Surveys

Horizontal loop electromagnetic (HLEM) survey coverage on the Nueltin Lake project was also completed during 2002 using an Apex Parametrics Max-Min 1-1O slingram unit and MMC data acquisition computer (Figure 16) (Ostapovitch, 2002). Both in-phase (l/P) and out-of-phase (O/P) component HLEM data were collected using a 200 metre transmitter-receiver coil separation. In total, 15.825 line-kilometres of multi-frequency HLEM survey data were recorded at 25 metre station intervals, employing the following transmit frequencies: 440, 880, 1760, 3520, 7040, and 14080 Hz.

For the duration of the program, both the receiving and transmitting coils were held horizontal during the field measurements. Changes in elevation between the transmitter and receiver locations were measured as slope, in percent grade, using a Suunto clinometer. Corrections for slope and shortening of the coil spacing were applied to the raw HLEM survey data at the end of each field day using APEX MMC data reduction software.

Interpretation of the HLEM data by Gandhi and Charbonneau, (2002) indicated that there are five anomalies indicated by distinct lows in the 'In Phase' response. The anomalies are labeled on Figures 16 and 17 as follows:

1. EM-1 in the central part of the grid near Darcy cluster. 2. EM-2 near Brian's Bay cluster, with an easterly trend along the shore of Sandybeach Lake. 3. EM-3 in northern part of the Sandybeach Lake grid. 4. EM-4 and EM-5, relatively weak anomalies near the western boundary of the grid.

These anomalies most likely relate to conductors or groups of small closely spaced conductors due to the fact that the quadrature profiles follow more or less the 'in phase' component (Ostapovitch, 2002).

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Figure 16 – Ground electromagnetic (HLEM -440 and 880 Hz data) survey results – Ostapovitch, 2002 - Sandybeach Lake occurrence area - Nueltin Lake Project

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Figure 17 – Compilation of electromagnetic (in blue) and IP/R (in red) survey results including the location of outrcops and mineralized boulder clusters - Sandybeach Lake occurrence area - Nueltin Lake Project (Gandhi and Charbonneau, 2008)

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11.10 IP/Resistivity Surveys

Two separate IP/Resistivity surveys were completed in the Sandybeach Lake area; one in 2002 (Ostapovitch, 2002) and the second in 2009 (Zaluski et al, 2010);

The 2002 Induced polarization/resistivity (IP-R) survey utilized a BRGM Instruments IP- 6 time domain IP receiver and a Phoenix IPT-1/MG-2 (3 kW) transmitter/motor generator set to survey a total of 19.35 line-kilometres of survey (Figure 18). A dipole­ dipole electrode configuration was utilized, with a dipole spacing of 'a' = 25 metres and a current-to-potential electrode spacing of 'na', where n = 1,2,3,4,5,6. For the duration of the program, stainless steel rods were used for the current electrodes and porous pots filled with copper sulphate solution were used for the potential electrodes.

For each dipole location the following parameters were digitally recorded with the IP-6 receiver, decimal chargeability for 10 separate window widths, cumulative average of the total chargeability and its standard deviation, type of decay curve measured, primary voltage and its standard deviation, current intensity, self-potential, apparent resistivity, contact resistance for each electrode, number of cycles and grid co-ordinates.

At the end of each field day the dipole-dipole array resistivity/chargeability survey data were down loaded from the IP-6 receiver via serial cable link to a Compaq personal computer (using Geosoft lnc.'s IDUMP communication software). The 'dumped' data were then edited, reduced to Geosoft .DAT file format, and collated for each traverse. Preliminary stacked pseudo-section contour plots of Total Chargeability and Apparent Resistivity were generated on the property, using Geosoft's IPRED and IPPLOT IP data processing software, prior to crew demobilization.

Interpretation of the IP/Resistivity data by Gandhi and Charbonneau, (2002) indicated that the IP survey identified five significant chargeability anomalies, which are labeled on Figure 18 as follows:

1. IP-1, a complex anomaly northwest of Darcy cluster. IP-2, a small anomaly northwest of Brian's Bay cluster. 2. IP-3, a prominent anomaly north of Crescent Creek cluster. 3. IP-4, a very strong anomaly in the north central part of the grid. 4. IP-5, a distinct anomaly at the extreme north boundary of the grid.

The IP technique is efficient at detecting disseminated sulphide mineralization whereas EM anomalies may indicate semi-massive to massive sulphide or graphite concentrations (Gandhi and Charbonneau, 2002).

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Figure 18 – Compilation of IP/R anomalies (in green) including the location of outcrops and mineralized boulder clusters - Sandybeach Lake occurrence area - Nueltin Lake Project (Gandhi and Charbonneau, 2008)

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The 2009 IP/Resistivity survey was designed to infill the previous 2002 IP/Resistivity survey, as well as increase the depth of investigation on the Nueltin Beach Grid in order to refine and generate new drill targets at depth (Figures 19 and 20).

The 2009 Induced polarization/resistivity (IP-R) survey utilized a GDD GRx8-32 time- domain IP receiver and a GDD TxII- 1.8 kW transmitter with data collected using a dipole-dipole array configuration. A dipole spacing of 50 m was utilized and reading n = 1 to 6 theoretically offers a depth of investigation of approximately 150 m. Lines 1+00N, 2+00N, 3+00N and 13+50E were measured using a dipole spacing of a = 25 m in order to cover shallow chargeable anomalies associated with both gold and uranium mineralization encountered by the 2008 drilling. A total of 3.6 km was surveyed using a = 25 m dipole spacing on the Beach Grid. Dipole spacing of a = 50 m was employed over 14.45 km on the Beach Grid and 3.55 km on the Hill Grid, totaling 21.6 km of coverage. The survey coverage on the Beach Grid is included as Figure 20.

As indicated from the 2002 IP/Resistivity survey, chargeable anomalies in the Sandybeach Lake area are abundant and are likely the result of the presence of multiple types of metallic minerals. Consequently some of the 2009 IP/Resistivity data were collected using multiple time bases (0.5 s, 1 s, 2 s and 4 s) in an attempt to discriminate between the size and type of metallic grains. The 2 s time base was read throughout the survey to provide consistency with the 2002 IP/Resistivity data set. With the exclusion of lines 0+00N and 5+00E on the Hill Grid, additional data were collected using a base time of 0.5 s. From the joint processing of these two data sets, a metal factor and percent frequency effect can be calculated that may allow for ranking of the chargeability anomalies with respect to differentiation of their association with gold or uranium. In addition to this, 1s and 4s time bases were also read on lines 7+00E, 9+50E, and 2+00N as a test of the optimal time base, and with the intention of producing a pseudo spectral survey and more robust analysis. Only data from the 2 s time base were presented in Zaluski et al (2009).

In general, the data quality was very high and 2D and 3D inversions were performed. These IP/Resistivity inversions succeeded in identifying a large number of chargeable anomalies that could warrant diamond drill testing. In addition, resistivity inversions identified major structure and geological contacts that were used to provide additional ranking criteria for the chargeability anomalies. Quantitatively, anomalies of interest were first ranked based on their inverted chargeability value, from 1 to 3, based on the respective ranges of greater than 35 mV/V, 25 to 35 mV/V and less than 25 mV/V. An additional ranking based on the proximity of the anomalies to favorable structure/geology based on the resistivity inversion is also provided. This ranking is labeled “A” for coincident structure/contact, “B” for proximal structure/contact and “C” for lack of structure/contact. Furthermore, negative chargeability’s were noted to flank several chargeability anomalies throughout the survey, specifically the anomalies associated with uranium mineralization intersected in DDH’s NLL-08-002 and NLL-008-009. Although negative chargeability anomalies are not completely understood, they have been produced by clay in numerous laboratory measurements and field surveys. However, no significant clay alteration is present in these holes. The cause of the negative chargeability’s measured by the 2009 IP/Resistivity survey is therefore unclear, but their

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spatial association with known mineralization was noted and provided an additional basis to rank targets. Therefore anomalies ranked as ‘A1Y’, as outlined in Table 5 below, were considered to be the highest priority targets. A summary of anomalies on the Beach Grid is provided in Table 5. For reference purposes these anomalies are plotted on in Figure 20, coded by color and symbol as defined above.

The 3D resistivity inversion highlights a major change in resistivity interpreted to be a geological contact trending east northeast, with a slight southerly dip. The interpreted location of this contact delineated in the 130 m resistivity depth slice is provided in Figure 20. The resistivity contrast displayed in Figure 20 is interpreted to be a result of a change in geology between calc-silicates to the south and semipelitic/peltic gneiss to the north of this interpreted contact.

The 2D resistivity inversion of line 12+50E (Figure 19) displays a good example of the east northeast trending interpreted structure displayed in Figure 25. This vertical structure, represented by a low resistivity coincident with a chargeable high flanked by negative chargeability’s, is associated with mineralization intersected on the property. This response is likely a result of the highly altered and mineralized rocks identified in drill hole NLL-08-002 from 11.6 to 16.5 m and similar material intersected in drill hole NLL-08-009 from 26.4 to 31.9 m.

On the Hill Grid the IP/Resistivity survey identified at least one chargeable anomaly interpreted to be centered at 0+25N, 5+75E. This anomaly is highly chargeable (>45mV/V) and coincident with a resistivity contrast similar to high priority targets identified on the Beach Grid. A second anomaly is also present at greater depth identified by data collected on line 5+00E, but this target should only be considered if favorable results are returned from drill testing the shallower anomaly discussed above.

Figure 19 – IP/R survey data 2D pseudo-section – L12+50E - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)

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Table 5 – IP/R Anomaly table – Sandybeach Lake area - Nueltin Lake Project (Zaluski et al, 2010)

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Figure 20 – Colour Plot of 3D Inversion – 130 m chargeability depth slice including discrete chargeability and resistivity picks - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)

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11.11 Geological Surveys and Compilations

The geological mapping of the Nueltin Lake project has relied heavily on the interpretation of the results of airborne (and to a less extent ground) geophysical surveys due to poor outcrop (~1%) exposure. The project geological map (Zaluski et al, 2010) and related compilations (Gandhi and Charbonneau, 2008) are syntheses of mapping, core logging and geophysical interpretations and are described in this section of the report.

The resulting interpreted bedrock geology map is shown in Figure 4 and the project geology is described in the previous section titled Geological Setting and describing project geology.

The results of the 2008 mapping program (Zaluski et al, 2009) (Figure 4) have superseded, and resulted in significant changes to, the geological compilation map of Gandhi and Charbonneau (2008) shown in Figure 21. The geological and geophysical compilation of Gandhi and Charbonneau (2008) remains, however, an excellent synthesis of available key exploration data on the property.

In the revised geological map of Zaluski et al (2009), the distribution of the Nueltin Granite (unit 5) has essentially remained the same. Unit 4 of Gandhi and Charbonneau (2008), the mixed Hudson Granite and metasedimentary rocks in the south has been classified as Wollaston Supergroup (calc-silicate, semipelitic gneiss, and graphitic pelitic gneiss). Unit 3 (Hudson Granite) in the southeast is interpreted to be much less extensive than was previously indicated. This unit has also been removed from the central portion of the project, as no evidence for its existence has been observed. Hurwitz Group metasedimentary rocks (Unit 2) have been interpreted farther to the south, replacing parts of Units 1 and 3. While the bedrock in the central portion of the project remains classified as Wollaston Supergroup (Unit 1), it has been more specifically classified as calc-silicate and its contacts have been modified.

A structural contact between the Hurwitz Group to the northwest and the Wollaston Supergroup to the southeast is proposed. Interpretation of magnetic data in the Nueltin Lake area indicates the presence of a prominent NE-trending magnetic high along the inferred Hudsonian structure (Figure 22). This potential tectonic boundary appears to be defined by the juxtaposition of the low grade Hurwitz Group metasediments in the northwest and the northeast-trending, amphibolite facies Wollaston Group metasediments in the southeast. The strong magnetic signature is interpreted to be related to the metasomatic alteration (pyrrhotite?) and therefore could be a key targeting criterion. DDH’s NLL-08-012 and NLL-08-015 in the southwestern portion of the property intersected similar calcsilicate alteration and weak disseminated sulphide mineralization. The magnetic high appears more likely related to the structure than to the granitic margins. Neither the Hudson nor the Nueltin suite intrusions have a diagnostic magnetic pattern.

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Finally, as discussed previously, the faulted portion of the Kinga Formation in the northern part of the map of Gandhi and Charbonneau (2008) has been reinterpreted as a mafic dyke.

Figure 21 – Inferred bedrock geology and geophysical compilation of the Nueltin Lake project by Gandhi and Charbonneau (2008) area 2013 Independent Technical Report on the Nueltin Lake Project, Nunavut, Canada Page 67 of 113

435,000 mE435,000 450,000 mE450,000 445,000 mE445,000 440,000 mE440,000 6,675,000 mN mE455,000

#

6,670,000 mN

Hurwitz Group

HudsonianHudsonian Thrust?Thrust?

## 6,665,000 mN # #### Wollaston Group ##

#

6,660,000 mN #

0 2.5 5

kilometers

Figure 22 - Total field magnetic map of the Nueltin Lake area. Note the presence of the NE- trending Sandybeach Lake magnetic high along the inferred Hudsonian structure (Zaluski et al, 2009).

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12.0 DRILLING (FORM 43-101 F1 ITEM 10)

Cameco Corporation completed the only drilling campaign on the Nueltin Lake project; a 15 diamond drill hole, 1555.3 m helicopter supported program during the summer of 2008 (Zaluski et al, 2009) (Figures 23 and 24). The NQ core drill program was based out of Nueltin Lake Lodge and was conducted by a 5 to 6 man crew from Foraco Canada Ltd. (formerly Connors Drilling Ltd.).

Diamond drilling targets were selected using data related to previously identified mineralized boulder fields (Halaburda, 2000), on the basis of ground geophysical survey results (IP resistivity and magnetics) undertaken in 2002 (Ostapovitch, 2002), as well as on the interpretation of the results from project-scale airborne magnetic and resistivity surveys conducted in 2006 and 2007 (Foster et al, 2007).

Compilations of collected geological, geochemical and geophysical data and related drill target recommendations by Gandhi and Charbonneau (2002) and Gandhi and Charbonneau (2008) provided the basis for the 2008 exploration drilling program. A total of 16 drill holes were proposed by Gandhi and Charbonneau (2002) and subsequently reviewed and updated by Gandhi and Charbonneau (2008). Table 6 contains the originally proposed drill holes on the lease by Gandhi and Charbonneau (2002).

The majority of the drilling (DDH’s NLL-08-01 to NLL-08-011 inclusive) was undertaken on the central LES-1 mineral lease and in the vicinity of the three main mineralized boulder clusters (Darcy’s, Brian’s Bay and Crescent Creek). The Gandhi and Charbonneau (2002) drill target recommendations were reviewed by Cameco staff and the locations and orientations of the proposed drill holes were refined. The revised targets are shown in Table 7 and where applicable the original SB target is identified. Gold mineralization was intersected in three of the eleven drill holes collared to test these targets. True thicknesses of the intersections have not been fully determined since the geometry of the mineralized body requires additional drill testing.

Four drill holes tested three reconnaissance targets on the surrounding claims, based primarily on the results of the airborne geophysical surveys undertaken in 2006 and 2007. Of these, DDH NLL-08-012 was a test of a magnetic anomaly to the southwest of the major magnetic anomaly on which the LES-1 mineral lease is centered. DDH NLL-08-013 was designed to test a long, linear conductive feature in the southeastern part of the project. DDH NLL-08-014 in the far northern part of the property was oriented to test the inferred contact of Hurwitz Group metasediments and the Nueltin Granite. DDH NLL-08-015, the last hole of the program, was drilled on the same set-up as DDH NLL-08-012 but was oriented in the opposite direction in order to better intersect the metasedimentary rocks by aligning the hole perpendicular to the measured foliation. This hole was lost due to bad ground conditions.

All drill hole collar information is presented in Table 7 and the 2008 drill hole location map is included as Figures 23 and 24.

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Highlights from drill core assay/geochemical and reflectance spectroscopy results have been integrated into the following summary descriptions of each drill hole completed during the 2008 diamond drilling program.

Region of Interest Drill Exploration Azimuth Dip Length Hole Grid (m) Coordinates Darcy’s Cluster SB-1 800E, 430N 165 60 100 SB-2 800E, 200N 345 60 100 SB-3 900E, 300N 345 50 100 SB-4 1000E, 200N 345 50 100 SB-5 1000E, 075N 345 50 100 SB-6 600E, 300N 165 55 100 Brian's Bay Cluster SB-7 600E, 475S 345 55 100 SB-8 600E, 700S 345 55 100 SB-9 800E, 725S 345 55 100 SB-10 800E, 575S 345 55 100 SB-11 1000E, 400S 345 55 100 Crescent Creek Cluster SB-12 1300E, 025N 345 50 100 SB-13 1300E, 250S 345 50 100 IP-4 Anomaly SB-14 1100E, 660N 0 90 100 IP-5/EM-3 Anomaly SB-15 1200E, 1150N 165 50 100 SB-16 1400, 1125N 345 75 100

Table 6 – Drill Hole Targets Recommended in the Sandybeach Lake area –- Nueltin Lake Project (Charbonneau and Gandhi, 2002)

Table 7 – Diamond Drill Hole Statistical Table – 2008 Program - Nueltin Lake Project (Zaluski et al, 2009)

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Figure 23 - Diamond drill hole location map - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)

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Raven Zone Raven

Figure 24 - Geology and diamond drill hole location map - Nueltin Lake Project (Zaluski et al, 2009)

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DDH NLL-08-001 (AZ 165/ DIP -70°) was drilled on the premise that the Crescent Creek mineralized boulder cluster is essentially in situ and to test a possible structure and alteration target indicated by IP/R anomaly SB-13 (Figure 23).

Lithologies encountered included calc-silicate altered psammite containing stringers and disseminations of up to foliation parallel (early?) 5% total sulphide (pyrite), pyrrhotite and arsenopyrite, fresh pink Hudson granite with black (schorl) tourmaline, mixed granite/metasediments (Anatexite) and metasomatically altered psammite/arkose enriched in calc-silicate minerals and recrystallized albite

Based on reflectance spectroscopy analysis of drill cores, a clay assemblage of montmorillonite and lesser chlorite dominates the granites near the top of the hole. Further down the hole, metasedimentary intercalations are dominated by Mg-rich chlorite with lesser montmorillonite. In the psammitic unit at the base of the hole, the spectra are dominated by hornblende (or possibly actinolite, as the spectra are very similar).

There were no significant radioactive peaks in this drill hole and sampling was limited to regularly spaced “composite” samples. The highest uranium value was 11.6 ppm U. No gold analyses were completed. No pathfinder element enrichments were noted despite the described presence of sulphide/arsenide mineralization in the intersected metasedimentary rocks.

DDH NLL-08-002 (AZ 165°/ DIP -65°) was completed to intersect a shallow (15 m) IP anomaly and 40 mV/V chargeability anomaly (Figures 23 and 25).

This drill hole intersected significant gold and uranium mineralization and a summary log is included as follows;

0.00-6.00 m - Overburden

6.00-11.60 m - Biotite-rich metasomatically altered (albitized and calc-silicate altered) psammite containing abundant pyrrhotite, arsenopyrite, pyrite and patchy clusters of visible coarse native gold. Pitchblende veins are present at 6.6 m and 11.5 m, with associated gold near the pitchblende veins. Assays include;

8.98 gAu/t over 5.95 m from 7.25 - 13.2 m 0.24%U3O8/1.25 m from 7.25-8.5 m, 0.18%U3O8/1.8 m from 10.2-12.0 m

11.60-16.50 m - A complex interval of “skarn” rock that has been strongly altered, brecciated, and appears to contain some interlayered granite.

16.50-18.20 m - Pink Hudson granite, rich in tourmaline.

18.20-22.20 m - Mafic rock that has been strongly recrystallized and altered. The original rock appears to be of metasomatic origin, displaying coarse grained, interlocking, non-foliated textures, and high mafic mineral content (pyroxene and amphibole)

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22.20-48.20 m Calc-Arkose with weakly disseminated sulphides. This rock is interpreted as an altered meta-arkose. Sections of this unit are radioactive with assays of 0.12%U3O8/1.5 m from 31.0-32.5 m

48.20-55.60 m - Calc-Silicate altered arkose? that has been strongly metasomatically albite altered.

60.30 - 69.50 m - Semipelite grading into migmatitic gneiss with pink- red segregations of microcline (or possibly albite). This unit is very rich in disseminated sulphides with the interval from 68-69.3 m being extremely rich (25-30%) in interstitial pyrrhotite, and is therefore very magnetic. Elevated radioactivity is found at 68.2 m but the mineral could not be visually identified. It is assumed to be disseminated pitchblende. Assays include 1.43 gAu /t and 0.22%U3O8 over 2.33 from 67.67-70.0 m.

69.50-85.30 m - Metasomatized (albitic) Calc-Arkose containing pyrite, pyrrhotite, pyrite and arsenopyrite with an assay of 0.03%U3O8/2.9 m from 77.0-79.9 m.

85.30-89.60 m - Calc-Silicate with sulphides, especially arsenopyrite, strongly disseminated in this interval. Assays include 1.13 gAu/t over 8.7 m from 82.9 - 91.6 m.

89.60-95.70 m - Anatexite, a very altered granite or perhaps a unit that is rich in quartz feldspar and calc-silicate minerals. This interval has moderate contents of disseminated sulphides (pyrrhotite and pyrite which yielded an assay of 0.05%U3O8/4.0 m from 89.8-93.8 m.

95.70-110.90 m - Calc-Arkose a non-foliated, metasomatically enriched in calc-silicate minerals and pink feldspar (albite) enrichment.

110.90-120.0 m Granite - This unit is a tourmaline-poor medium to coarse grained graphic granite with sparse biotite. The rock is fresh and non-radioactive.

Lithologic contacts and foliation in the mineralized host rocks were observed to be at low angles to core axis suggesting that this drill hole was completed “down-dip” resulting in thicker “apparent” intersections of strata. Insufficient drill information is available to estimate the true thickness of mineralized intersections at this time. Other than a narrow corrosion breccia (a very old healed brecciation event, where clasts are haloed by calc-silicate minerals and hornblende) and several zones of fractured core, evidence of significant structural disruption is limited. It is not clear whether there is a relationship between mineralization and structural disruption in this hole.

Amphibole is the mineral most predominant in the reflectance spectra in every lithology except granite. Illite is present in minor amounts at the top of the hole. Mg-chlorite is present with the amphiboles in several intervals. The mineralized zone contains actinolite. Anatectic units and granite intervals in the lower part of the hole contain montmorillonite or other Mg-bearing smectites along with chlorite and minor carbonate.

The grades and thicknesses of the uranium and gold mineralized intervals are shown in Table 8. Pathfinder elements, defined for the purposes of this report as As, Co, Mo, Ni and Te, display

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significant enrichment in positive association with the Au and U values. Values of up to 3,560 ppm As(p), 1,010 ppm Co(p), 875 ppm Mo(p), 785 ppm Ni(p), 9,480 ppm Pb(p) and 5,400 ppm Te(p) were obtained from mineralized drill cores in this drill hole.

8.98 gAu/t over 5.95 m from 7.25 - 13.2 m 0.24%U3O8/1.25 m from 7.25-8.5 m, 0.18%U3O8/1.8 m from 10.2-12.0 m

0.12%U3O8/1.5 m from 31.0-32.5 m

1.43 gAu /t and 0.22%U3O8 over 2.33 from 67.67-70.0 m.

0.161 gAu /t and 0.04%U3O8 over 1.3 m from 26.8-28.1 m.

1.13 gAu/t over 8.7 m from 82.9 - 91.6 m.

Figure 25 - Diamond drill hole cross-section facing west – DDH’s NLL-08-002 and NLL-08-009 - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009) 2013 Independent Technical Report on the Nueltin Lake Project, Nunavut, Canada Page 75 of 113

Hole Number Gold Assays Uranium Assays 8.98 g/t over 5.95 m from 7.25 - NLL-08-002 13.2 m 0.24% over 1.25 m from 7.25 - 8.5 m 1.43 g/t over 2.33 m from 67.67 - 70.0 m 0.18% over 1.8 m from 10.2 - 12.0 m 1.13 g/t over 8.7 m from 82.9 - 91.6 m 0.12% over 1.5 m from 31.0 - 32.5 m 0.22% over 2.33 m from 67.67 - 70.0 m 0.03% over 2.90 m from 77.00 - 79.9 m 0.05%over 4.00 m from 89.80 - 93.8 m 3.27 g/t over 7.25 m from 4.25 - NLL-08-003 11.5 m 1.27 g/t over 6.25 m from 22.45 - 29.4 m 0.161g/t over 1.3 m from 26.8 - NLL-08-009 28.1 m 0.04% over 1.3 m from 26.3 - 28.1 m

Table 8 – Summary of Mineralized Intervals, Grades and Thicknesses – 2008 Diamond Drilling Program - Nueltin Lake Project

DDH NLL-08-003 (AZ 165°/ DIP -60°) was drilled to test a shallow (20 m) IP and 40 mV/V chargeability anomalies (Figure 23). This drill hole intersected significant gold mineralization and a summary log is included as follows;

0-4.25 m – Overburden

4.25-11.60 m Calc-silicate altered biotite-rich psammite with injections of small granite dykelets. The interval 4.5-11.6 m is very rich in disseminated arsenopyrite, pyrrhotite, and pyrite. A portion of this interval yielded 3.27 gAu/t over 7.25 m from 4.25 - 11.5 m.

11.60-22.60 m - Hudson granite pegmatite with large biotite books crisscrossing tdykeltshout as well as small clusters of tourmaline. Small stringer fractures in this unit are host to pyrite and lesser pyrrhotite.

22.60-23.70 m Calc-Silicate Altered Arkose

23.70-24.20 m Hudson granite with minor biotite and tourmaline

24.20-29.40 m arkose with typical calc-silicate alteration rich in foliation parallel arsenopyrite. The interval 22.5-29.4 m is rich in disseminated arsenopyrite, pyrrhotite, and pyrite. An assay of 1.27 gAu/t over 6.25 m was obtained from 22.45 - 29.4 m.

29.40-38.0m Hudson granite - fresh and has a peppered look due to biotite with sparse amounts of tourmaline.

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The predominant reflectance spectroscopy clay species in this hole are chlorite and illite-chlorite mixtures and montmorillonite. This assemblage is present in both the granite and metasedimentary intervals. Tourmaline is also present at the bottom of the hole.

It is important to note that although DDH NLL-08-003 displayed no anomalous radioactivity it did intersect significant gold mineralization. Once again, insufficient information is available to determine the true thickness of the mineralized intercept.

3.27 gAu/t over 7.25 m from 4.25 - 11.5 m

1.27 gAu/t over 6.25 m from 22.45 - 29.4 m

Figure 26 - Diamond drill hole cross-section facing east – DDH NLL-08-003 - Sandybeach Lake occurrence area - Nueltin Lake Project (Zaluski et al, 2009)

DDH NLL-08-004 (AZ 165°/ DIP -60°) was drilled to intersect a shallow (30 m) IP anomaly and 20 mV/V chargeability anomaly (Figure 23). 2013 Independent Technical Report on the Nueltin Lake Project, Nunavut, Canada Page 77 of 113

Lithologies encountered included medium to coarse-grained, biotite-rich, pink Hudson granite, calc-silicate altered and albitized psammite, interbedded calc-silicate altered psammite and arkose with very weakly disseminated sulphides.

The granitic intervals are characterized by montmorillonite and chlorite with lesser illite. The psammiticarkosic intervals are dominated by actinolite near the top and actinolite- montmorillonite mixtures at the bottom. While the amphibole is interpreted as actinolite it could include hornblende as well, as the spectra are very similar. The lower part of the interval features montmorillonite dominant over the actinolite.

The only anomalous radioactivity in this drill hole was found in an unaltered section of Hudson granite. This is attributed to naturally elevated radioactivity in the granite. The intervals are from 60.50-60.60 m at 100 cps, 60.60-60.70 m at 200 cps, and 60.70-60.80 m at 100 cps. A weakly elevated value of 39.5 ppm U(p) was obtained in the Hudson granite 57.5 -61.4 m. A sample containing 90 ppm U(p) was obtained in Hudson granite in the interval 4.5-14.0 m

No gold assays were completed on samples from this drill hole despite the presence of significant arsenic (58.9-165 ppm As), cobalt (17.7-79.8 ppm Co) within the weakly sulphide bearing interbedded calc-silicate altered psammite and arkose between 24.0-57.0 m. Additional gold assaying is required.

This hole was drilled essentially down-dip, resulting in thick “apparent” intersection widths.

DDH NLL-08-005 (AZ 345°/ DIP -60°) was drilled to test an extension of IP anomaly 1, a magnetic low and an interpreted structure (Figure 23).

Lithologies encountered consisted entirely of two types of Hudson granite. An older fine to medium-grained well-foliated biotite-rich granite is cut by coarse-grained to pegmatitic younger granite. Variable amounts of biotite, tourmaline and pyrite were observed in these intrusions.

No elevated radioactivity was detected in this hole. Uranium (partial) values did not exceed 85.6 ppm U and no gold assays were completed. Sandybeach Gold-Uranium Zone related pathfinder elements were not significantly elevated in the composite samples collected.

Montmorillonite and illite (or more generally, white mica) were the predominant hydrous phases detected by reflectance spectroscopy. These phases are frequently accompanied by lesser chlorite

DDH NLL-08-006 (AZ 165°/ DIP -60°) was drilled to test a shallow (25 m depth) IP target (Figure 23).

Lithologies intersected include Hudson granite, anatextite, magnetic and silicified arkosic- psammite with clots and stringers of magnetite as well as pyrite and pyrrhotite. The latter occur as disseminations and clots associated with open or healed fractures. Sulphide veinlets also occur near or in the partially melted sections of the semipelite. The latter unit occurs from 33.3 - 104.00 m.

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There was no anomalous radioactivity encountered in this hole. Background counts ranged between 35 cps and 55 cps.

Geochemical data from the sulphide-bearing magnetic and silicified arkosic-psammite unit indicate very low values for uranium and Sandybeach Gold-Uranium Zone pathfinder elements. No gold assays were completed.

Clays defining the upper granitic portion of this drill hole are dominated by chlorite with lesser illite and montmorillonite. From 33.3 m to the end of the hole, the reflectance spectra of the semipelite are dominated by intervals of Mg-chlorite and illite alternating with intervals characterized by biotite and hornblende (the latter interpreted as fresher).

DDH’s NLL-08-007a and NLL-08-007 (AZ 130°/ DIP -60°) were drilled to test a shallow IP anomaly, ~ 10 m of > 40 mV/V. DDH NLL-08-007a was lost at a depth of 38.0 m (Figure 23). DDH’s NLL-08-007 was the second and more successful attempt to complete this test.

Lithologies intersected included calc-silicate altered arkose with weakly disseminated pyrite and pyrrhotite (trace to 5%). strong chlorite alteration. a muscovite dyke and a calc-silicate unit

Intervals of increased quartz-carbonate veining and possibly scheelite are locally present.

This hole had no anomalous radioactivity with the SPP2. Background was 25 cps throughout the entire hole. Uranium and pathfinder element contents in drill cores were low. No gold assays were completed.

The upper part of the hole is dominated by Mg-chlorite while actinolite is dominant in the reflectance spectra below 23 m. Lesser montmorillonite and illite are also present. A significant portion of the spectra exhibit only very weak absorption features signifying low concentrations of these alteration phases or dark colours

DDH NLL-08-008 (AZ 330°/ DIP -60°) was drilled as a 100 m step out along strike to the southwest (240°) in an attempt to follow up the Au-U mineralization intersected in DDH NLL- 08-002 (Figure 23).

Lithologies intersected include Hudson granite (Granodiorite) with biotite/tourmaline, calc- silicate altered psammite to arkose with disseminated sulphides (pyrite and arsenopyrite), mafic rocks that have undergone very strong clay- chlorite alteration as well as pyrite and arsenopyrite mineralization, calc-semipelite with magnetite pyrite, arsenopyrite and pyrrhotite, calc-silicate with minor pyrite, calc-psammite with minor pyrite was noted as disseminations along foliation.

A zone of chlorite alteration is present from 50.4 - 51.2 m, which also contains abundant quartz veining and a narrow red (clay?) vein at 50.9 m with 200 cps. Although the U(p) content of the composite sample collected about this interval was low (14.3 ppm U), anomalous trace element values were obtained from Calc-pelitic and calc-silicate rocks between 29.0-53.0 m; including up to 260 ppm U(p), 162 ppm As(p), 129 ppm Co(p), 28.5 ppm Cu(p), 39.3 ppm Ni(p), 25.1 ppm Mo(p) and 54.8 ppm Pb(p).

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Reflectance spectra from samples of psammite at the top and bottom of the hole are interpreted to contain actinolite while those from 17 – 32 m and the underlying calc-arkose (41 – 53 m) are characterized by Mg-chlorite with lesser montmorillonite. The calc-semipelite and calc-silicate are dominated by hornblende with lesser biotite, tourmaline, and chlorite.

DDH NLL-08-009 (AZ 330°/ DIP -60°) was drilled 25 m S and 25 m along strike of DDH NLL- 08-002. This drill hole was designed to test the extension of the mineralized zone intersected in DDH NLL-08-002 (Figures 23 and 25). DDH NLL-08-002 may have been drilled down-dip, potentially resulting in a significantly exaggerated intersection thickness. As a consequence, DDH NLL-08-009 was drilled in the opposite azimuth direction. Host rock contacts and foliations were at higher angles to core axis than in DDH NLL-08-002. Although this could perhaps provide a better orientation for determination of the true thickness of mineralized intercepts, more drilling will be required to provide additional confidence in such estimations. A summary log is included as follows;

0 - 9.8 m – Overburden

9.80 - 11.3 m - Calc-Silicate altered Arkose with green calc- silicate metasomatic enrichment and pink feldspar (albite) alteration.

11.30 - 16.40 m – Calc-silicate altered and feldspar enriched Semipelite enriched in sulphides. The sulphides are mainly pyrrhotite, with minor arsenopyrite and pyrite.

16.40 – 26.40 m - Calc-Silicate altered Arkose with narrow intercepts of biotite and sulphide-rich rock as well as green calc-silicate clots and clusters. Mainly arsenopyrite with minor pyrrhotite and pyrite are present as disseminated grains and as stingers and veinlets.

26.40 - 31.90 m - Skarn-altered calc-silicate calc-silicate with the addition of darker pink feldspathic (albite) enrichment. At 27.5 to 27.6 m, a peak of 1200 cps was intersected. Trace sulphides and pitchblende were observed in this short interval yielding assays of;

0.04%U3O8/1.3 m and 0.16gAu/t over 1.3 m from 26.8-28.1 m.

31.90 - 36.7 m - Semipelite composed of dark grey sulphide and biotite-bearing rock. It is well foliated with the sulphides occurring as both disseminated flecks and more concentrated in veins and clots. This interval is very rich in arsenopyrite.

36.70 - 40.10 m - Calc-Silicate altered Arkose with the typical calc- silicate metasomatic enrichment. This unit is also rich in sulphides, mainly disseminated arsenopyrite. The greatest concentrations are found in association with the black amphibole crystals.

40.10 - 41.50 m - Psammite with significant biotite and black amphibole and only minor pink feldspathic (Kspar) alteration. This interval contains a moderate amount of disseminated sulphides.

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41.50 - 50.80 m - Calc-Silicate altered Arkose:calc-silicate altered arkose unit with clots of black amphibole and moderate sulphide content. Arsenopyrite, pyrite and pyrrhotite are present in approximately equal amounts.

50.80 - 66.40 m - Anatexite:granitic/anatexite rock with many fractures coated with hematite and black chlorite. This interval has undergone brittle deformation with fractures of multiple orientations causing large, angular core fragments. This unit also contains many stringers and veins of green calc-silicate minerals and very weakly disseminated sulphides.

66.40 - 99.80 m - Psammite biotite-rich intervals and quartz-feldspar-calc-silicate bands. These bands appear recrystallized or possibly partial melts of original metasediments.

99.80 - 102.00 m - Granite fine-grained and foliated granite which appears to have injections of younger pegmatitic to coarse-grained granite.

102.00 - 120.90 m - Calc-Silicate altered Arkose calc-silicate and feldspar-enriched arkosic metasedimentary rock only very minor sulphides.

120.90 -125.30 m – Unaltered Wollaston Group Pelite - biotite rich with weakly disseminated sulphides.

125.30 - 128.20 m - Coarse-grained to pegmatitic Hudson granite.

128.20 - 134.00 m - Fresh pelite of the Wollaston Supergroup.

134.00 - 136.60 m - Calc-Silicate altered Arkose that contains narrow intervals of tourmaline- bearing granitic material. No sulphides.

136.60 - 142.20 m - Calc-Silicate altered Arkose with narrow pelitic intervals. Minor sulphides are present in the pelitic intervals.

142.20 - 145.20 m - Coarse-grained to pegmatitic granite.

145.20 - 152.90 m - Interbedded pelite and calc-silicate rock. Weak sulphides (pyrite and pyrrhotite) are seen in association with the biotite in the pelite.

152.90 - 163.90 m - Fresh Wollaston Supergroup pelite. Very weak sulphide mineralization is present. No alteration, structure, or anomalous radioactivity is seen in this unit.

In addition to the elevated Au and U contents indicated highly anomalous trace element values were obtained in this drill hole; including up to 10,800 ppm As(p), 850 ppm Co(p), 285.0 ppm Ni(p), 296.0 ppm Mo(p) and 181.0 ppm Pb(p).

The calc-arkose is dominated by actinolite with lesser montmorillonite or illite. Several spectra contain no spectral features, suggesting that the calc-silicate phase is diopside. The spectra of the anatectic unit and underlying psammite are dominated by Mg-chlorite and Mg-smectite. The pelite at the base is dominantly hornblende and biotite. A narrow interval at 29 m logged as

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skarn and the underlying semipelite feature very poor spectra. The most likely cause is that the samples are very dark or do not contain significant OH-related absorption features, possibly signifying the presence of diopside as the mafic mineral phase.

Hole NLL-08-010 (AZ 130°/ DIP -60°) was drilled to test an EM anomaly (EM-3) determined from a Max-Min survey (Figure 23). The target depth was approximately 45 m.

The drill hole intersected sedimentary dominated assemblage consisting of interbedded Siltstone- Sandstone, Interbedded Mudstone-Siltstone, dark grey shale unit interbedded with carbonate all interpreted as the Watterson Formation of the Hurwitz Group. Local coarse-grained Hudson Granite cut the Hurwitz Group sediments.

No significant trace element enrichments were noted in samples analyzed from this drill hole.

Almost half of the Watterson Formation samples produced spectra with no absorption features due to their dark color and possibly the lack of hydrous and carbonate phases. The most common phases identified were chlorite and carbonate (dolomite and calcite). Spectra interpreted to contain hornblende and muscovite could be indicative of poor spectral matches or metamorphic minerals.

Hole NLL-08-011 (AZ350°/ DIP -56.5°) was designed to test a stacking IP anomaly and conductor target at approximately 40 m depth (Figure 23).

This drill hole encountered mudstone/pelite, mudstone/semipelite, carbonate-bearing shale/mudstone all of which are most likely of the Watterson Formation of the Hurwitz Group. These sediments contain locally abundant carbonate and quartz-carbonate veins along with minor pyrite, arsenopyrite and graphite is present along local fractures, slips and gouges. Pink, coarse-grained to pegmatitic Hudson granite with abundant K- feldspar, quartz and tourmaline locally cut the Hurwitz Group sediments.

This hole intersected a significant fault in the form of an extensive breccia and gouge interval (some slips being graphitic) from 104.2-107.2 m.

This hole has no anomalous radioactivity with the SPP2 scintollometer, with background ranging from 30 – 60 cps. No significant trace element enrichments were noted in samples analyzed from this drill hole.

The predominant mineral phases identified by reflectance spectroscopy in the Watterson Formation samples between 60.8 and 98.4 m are also dominated by illite-chlorite mixtures, with some montmorillonite present. Muscovite is the dominant phase in the granite to the bottom of the hole.

Hole NLL-08-012 (AZ 180°/ DIP -60°) was drilled to test an extension of the central magnetic feature in the LES-1 lease (Figure 24).

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Lithologies intersected included albitized calc-semipelite, coarse-grained to almost pegmatitic, non-foliated tourmaline bearing granite. Significant faults were s encountered at 31.3 – 32.7 m and at 89.4 – 90.4 m.

No anomalous radioactivity and no significant trace element enrichments were noted in drill hole.

Alteration throughout the uppermost unit of this drill hole (psammite) is dominated by amphibole, interpreted as mainly actinolite with lesser hornblende. Chlorite was tentatively identified in a few spectra and two samples exhibited Mg-bearing smectite clays. The granite at the base of the hole featured illite at the top and montmorillonite at the bottom of the section.

The hole was drilled down dip, almost parallel to the foliation

Hole NLL-08-013 (AZ 180°/ DIP -60°) was drilled to test a strong linear magnetic and conductive feature in the south-eastern part of the property (Figure 24).

This drill hole intersected a series of variably graphitic Wollaston Supergroup pelitic to semipelitic rocks that have been locally intruded by graphite-bearing biotite granite, quartz veins, medium-grained and locally garnetiferous granite and very coarse-grained to pegmatitic, non- foliated granite.

There was no anomalous radioactivity encountered in this hole. The hole averaged background readings of 40 cps, with 50 cps as the maximum. Modest enrichment of Co (p) 44.3 ppm Co and Cu(p) 1300 ppm Cu were noted in select composite samples.

The graphitic pelite interval in the top half of the hole features mixed spectra of white mica (illite or muscovite) and chlorite or biotite. Kandite clays are identified in several samples between 56 m and 74 m, including kaolinite and halloysite. The granite samples are dominated by illite with lesser chlorite and some montmorillonite present in some samples. The semipelite at the base consists of alternating illite-intermediate (Mg-Fe) chlorite and biotite-bearing samples.

This hole confirmed the presence of a large graphitic conductor in the southeast portion of the property.

Hole NLL-08-014 (AZ 180°/ DIP -60°) was drilled intersect the intrusive contact of the northern Nueltin granite with the metasediments of the Hurwitz Group (Figure 24).

The entire drill hole was completed in meta-arkose of the Kinga Formation (possibly the Maguse Member) of the Hurwitz Group.

No anomalous radioactivity was encountered in this drill hole. Background counts for this hole ranged from 25 to 45 cps. No significant trace element enrichments were noted in samples analyzed from this drill hole.

The vast majority of the Kinga Formation arkose samples produced spectra with very weak absorption features, indicating the low contents of hydrous minerals. Approximately a quarter of

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the samples show no spectral features, indicating the overall freshness of the rock and the mineralogical maturity. Mg- and intermediate chlorite is the dominant mineral identified. Actinolite (or possibly hornblende) was identified in a small number of spectra.

This drill hole did not successfully test the contact between the Hurwitz Group metasediments and the Nueltin granite, as was originally intended.

Hole NLL-08-015 (AZ 000°/ DIP -60°) was drilled as a follow up of drill hole NLL-08-012 that intersected favorable alteration but was drilled sub-parallel to foliation (Figure 24).

This drill hole intersected foliated, fine-grained semipelite affected by green calc-silicate alteration, arkose, semipelite with trace to 1% disseminated pyrite, calc-semipelite, calc-arkose, skarn fine- grained patches of disseminated pyrite and possibly arsenopyrite and coarse-grained, massive granite.

The majority of the Wollaston Group semipelite, arkose, and calc-semipelite samples are interpreted to contain hornblende or actinolite. Two samples are interpreted as smectite group (Mg-smectite and montmorillonite) phases. The calc-arkose at 38 m depth exhibits a green mineral with a good serpentine spectrum.

There was no anomalous radioactivity encountered in this hole. Background counts were 50 cps. Although U(p) values of up to 30.5 ppm and Pb(p) values up to 2090 ppm were obtained, the majority of pathfinder elements did not show any enrichment. Unfortunately, the hole was lost shortly after a fault was encountered at 44.0 m.

12.1 Petrographic Studies on Drill Cores

Petrographic studies have been completed on selected drill cores and outcrop/boulder samples on the Nueltin Lake project. Mysyk, (2008) studied 18 drill core samples and 3 grab samples while Mysyk (2009) reviewed 40 drill core samples and 3 grab samples.

The main objectives of the petrographic work were to; 1. Characterize the mineralogy of potential “ore” and related gangue occurring in the Sandybeach Gold-Uranium Zone. 2. Identify the silicate (non–opaque) mineralogy of host rocks with a view to applying appropriate lithologic nomenclature. 3. Provide additional information regarding the genesis of the Sandybeach Gold- Uranium Zone.

Highlights are described in the following sections;

Mineralogy of potential “ore” and related gangue

Ore mineralogy (based on study of mineralized samples from DDH NLL-08-002 and NLL-08-009) is dominated by pyrrhotite with lesser amounts of arsenopyrite and displays a distinct association with Ca/Mg/Na metasomatic/metamorphic actinolite, diopside, titanite and apatite (Mysyk, 2009). A broad spectrum of other ore minerals occur in trace

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amounts: gold, gold containing 10-15% silver, chalcopyrite, pyrite, cobaltite, cobaltpentlandite, pentlandite, loellingite, galena, molybdenite, tellurides (Fe, Ni and Pb), scheelite, silver, coffinite and uraninite. Dominance of pyrrhotite and arsenopyrite indicate a reduced type of ore mineral depositional environment (Meinert, 2005). Many of the minerals (pyrrhotite, arsenopyrite, cobaltite, cobaltpentlandite, loellingite, Fe-and Ni tellurides) indicate a mafic source for the ore fluids (Table 9).

A general paragenetic sequence for “ore” mineralogy was established by Mysyk (2008) (Table 10). Note that uraninite (pitchblende) is considered to be early in the paragenesis despite the visual presence of “late” uraninite/pitchblende fracture coatings and veinlets.

Gold was identified in two calc-arkose samples using the electron microprobe (Figure 27). One grain occurs on the exterior of a larger cobaltite grain (Mysyk, 2008). Gold with approximately 10-15% Ag was found on the edge of a diopside grain (Mysyk, 2009). Numerous extremely fine (<0.02mm) equant yellow grains were noted in ore microscope petrographic examination of a number of thin sections; these were suspected to be gold and/or chalcopyrite, but could not be identified in electron microprobe examination. Uraninite and coffinite occur generally associated with Ca/Mg metasomatic amphibole and clinopyroxene, often in complex clusters with titanite and ilmenite rimmed by Fe-Mg chlorite (Mysyk, 2008). The gold and uranium minerals have not been observed in contact with each other so a definite association cannot be established. The very limited amount of data seems to indicate both are associated with the Ca/Mg metasomatism/metamorphism.

Mineral Chemical Formula Comments Pyrrhotite Fe1-xS Main sulphide mineral Arsenopyrite FeAsS Second most abundant sulphide mineral Chalcopyrite CuFeS2 Pyrite FeS2 Cobaltite CoAsS Cobaltpentlandite (Co,Fe,Ni)9S8 Loellingite FeAs2 Galena PbS Molybdenite MoS2 Sphalerite (Zn, Fe) S Scheelite CaWO4 Frohbergite FeTe2 Melonite NiTe2 Altaite PbTe Silver Ag Very fine inclusions in albite, highly variable amounts Uraninite UO2 Rare; surrounded by coffinite in chlorite in diopside Coffinite U(SiO4)1-x(OH)4x Rare, surrounds uraninite

Table 9 – Preliminary “Ore” Mineralogy of the Neultin Lake project (Mysyk, 2008)

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Table 10 – Preliminary “Ore” Mineral Paragenesis – Sandybeach Lake Gold-Uranium Zone - Neultin Lake project (Mysyk, 2008)

Figure 27 - DDH NLL-08-02 - 6.3m - Back-scatter electron image - Mineralized Plagioclase- Actinolite Calcsilicate containing Pyrrhotite, Arsenopyrite, Cobaltite with minor Gold.

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The main ore control factor for sulphides in many of the samples appears to be the porosity and permeability of the arkosic protolith host rock. Pyrrhotite and arsenopyrite are widely and uniformly disseminated as interstitial grains intimately associated with the Ca/Mg metasomatic minerals (amphibole, clinopyroxene, titanite and apatite).

Structural control expressed by brittle deformation is prominent in many of the samples studied but is not an apparent factor in all of the mineralized rocks. Brittle and to a lesser extent ductile fracturing plus strong albitization are locally prominent but is not necessarily present in the most mineralized samples. Minor late stage microfractures occur in some rocks and contain small amounts of very fine-grained remobilized sulphides.

Silicate (Non-opaque) Mineralogy of Sandybeach Gold-Uranium Zone host rocks

The rock classification system used during the 2008 drill program was based mainly on the “Cameco modified” version of the ternary diagram for medium-to high-grade metamorphic clastic sedimentary rocks proposed by Fettes, D. and J. Desmons (2007).

Rocks were classified as calc-arkose on the basis of the large amount of plagioclase (often 60% to 80 or 90%) and lesser amounts of amphibole (mainly actinolite, some hornblende and ferrohornblende) and/or clinopyroxene (mainly diopside, but also hedenbergite in some cases).

The plagioclase, as determined from the Michel- Lévy petrographic method and previous electron microprobe analyses, is extremely low calcium albite An<5 (Figure 28). Significant trace to minor amounts of titanite and apatite are additional consistent mineralogical constituents of the calc-arkose; these Ca minerals are considered to have been formed by Ca-Mg-Na metasomatic fluids.

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Figure 28 - DDH NLL-08-002 - 7.1m – Photomicrograph under X-Nichols - Mineralized calc- arkose, Plagioclase is grey, white and black with albite twinning; amphibole shows yellow and red birefringence; sulfides are black [15x, XN, FoV 7mm].

Some Nueltin Lake samples are strongly altered, consist of calcsilicate mineralogy (mainly clinopyroxene and amphibole) and do not fit into the modified ternary classification. These are called calc-silicates since these rocks are mainly composed of calc-silicate minerals (diopside, actinolite, hedenbergite, scapolite, but with lesser amounts of plagioclase) and containing <5% vol of carbonate minerals. Therefore the definition carries no genetic connotation. Definitions of calc-silicate rocks that have a genetic connotation requiring them to be formed from impure limestone or dolostone (Mysyk, 2009) are not considered to be useful in this study, as there is little or no evidence for protolith carbonate rocks.

Several samples are termed psammite in the drill log but none of these rocks are classified as psammite by petrographic analysis. These samples have extremely little or no quartz content and are feldspar-rich. As such these rocks are considered calc-arkoses.

Mafic rocks have been too strongly altered to be able to identify original minerals or texture with any degree of certainty.

Rocks described as skarn consist mainly of calcite, diopside and wollastonite with minor scapolite. Calcite appears to be a later brittle fracture alteration mineral.

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Petrographic analysis of a small number of granitic rocks (Mysyk, 2008) revealed that the (Hudson) granites observed in drill core display moderate albitization of K-feldspar and hematization of plagioclase. The Nueltin granites (WP grab samples) are grey in color, are weakly albitized and display only traces of hematization and silicification. The rocks are granitic as they are coarse-grained, massive and consist almost entirely of highly variable amounts of K-feldspar, quartz, and plagioclase. Classification of these granitic rocks includes granite, diorite, and alkali- feldspar syenite based on what is observed in the small thin sections. Albitization locally occurs as irregular patchy feldspar replacement, secondary perthitic texture, and/or as extremely fine-grained brown patchy alteration possibly with traces of reddish hematite. Despite locally intense alteration (including silicification), it is possible that the drill core granites have a similar origin.

Comments regarding the Genesis of the Sandybeach Gold-Uranium Zone.

Based on the results of the petrographic studies, the rock suite mineralogy at the Sandybeach Gold-Uranium Zone does not fit into any standard skarn model. The main process operating in the studied sample suite appears to be a Ca/Mg/Na metasomatic- metamorphic type of alteration in which it is very difficult to distinguish between metasomatism and metamorphism. Garnet and hedenbergite are common characterizing minerals of skarns and the Sandybeach Gold-Uranium Zone samples contain no garnet and apparently only minor amounts of hedenbergite, ferrohornblende, scapolite and wollastonite.

Other skarn minerals such as anorthite, olivine, and primary carbonate are totally absent. Diopside is a common skarn mineral, but its association with actinolite (no skarn ferroactinolite), titanite and apatite appear to due to Ca-Mg-Na metasomatic/metamorphic alteration. A few samples contain epidote, but it appears to be a metamorphic mineral formed in mafic rocks unrelated to skarn formation. With only limited exceptions, the rocks, contain very little or no carbonate, most or all of which is late fracture-fill. Fe- enrichment, such as it is, does not appear widespread in silicates, and has mainly occurred in the form of sulphides, particularly pyrrhotite and arsenopyrite.

13.0 SAMPLE PREPARATION,ANALYSES AND SECURITY (FORM 43-101 F1 ITEM 11)

Two main types of samples have been collected for analysis on the Nueltin Lake project. These include boulder or outcrop samples collected during prospecting and geological mapping campaigns as well as diamond drill core samples.

The following description of sample preparation, analyses and security applies only to the 2008 and 2009 exploration programs completed by Cameco Corporation. Insufficient information was included in reports from prior to 2008 to allow the author to make appropriate commentary.

Each sample collected was assigned a unique sample number and placed in poly bag along with a tag indicating the sample number.

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For boulder and outcrop samples, the UTM co-ordinates of the sample using a hand held GPS was recorded along with notes regarding the rock type, structure and alteration. The radioactivity of samples as measured using hand held scintillometers was also recorded. The location of samples in the field was marked with flagging tape inscribed with the sample number and fixed to the sample location.

Drill core sampling included composite sampling for multi-element geochemistry over 10 m intervals (in consistent lithologies), spot sampling of select structures/alteration as well as split core sampling of mineralization.

After collection, all rock samples were transferred into 20 litre plastic pails. At variable intervals, geochemistry samples (boulder, outcrop and drill core) were shipped via aircraft and truck transport to the Saskatchewan Research Council in Saskatoon, Saskatchewan. Radioactive samples were also shipped to the Saskatchewan Research Council in compliance with federal and provincial regulations regarding their transport and handling. Cameco maintains specific written guidelines which detail procedures for exploration staff and others to ensure samples are shipped in compliance with regulatory requirements for the transport of Class 7 Dangerous Goods (Radioactive Materials).

The Saskatchewan Research Council is International Standards Organization (ISO)/IEC 17025:2005 laboratories accredited by the Standards Council of Canada. The Saskatchewan Research Council SRC’s facilities are licensed by the Canadian Nuclear Safety Commission (CNSC) to safely receive, process, and archive radioactive samples. The lab also employs a LIMS (laboratory information management system) in accordance with ISO/IEC guidelines which dictate a strict internal audit program performed by trained quality professionals.

As an ISO accredited lab, the Saskatchewan Research Council has developed quality assurance/quality control procedures to ensure that all raw data generated in-house is properly documented, reported and stored to meet confidentiality requirements. All electronically generated data is calculated and stored on computers which are backed up on a daily basis. Access to samples and raw data is restricted to authorized personnel at all times and is verified by key personnel prior to reporting results.

To the author’s knowledge, no employee, officer, or director of Cameco or URU Metals Limited is, or has been, involved in any aspect of sample preparation or analysis at the Saskatchewan Research Council, Acme Labs or any other laboratory facility where samples were prepared or analyzed from the Nueltin Lake project.

Although no specific security measures to prevent possible tampering of samples were documented in provided Cameco reports, it is felt that there would be little likelihood of tampering. All data received were reviewed in-house to ensure QA/QC compliance.

Geochemical samples were categorized by radioactivity levels upon arrival at the Saskatchewan Research Council. The sorted samples were crushed and ground until >60% of the material was reduced to <2 mm in size. A 100 - 150 g split was then agate-ground until >90% was <106 um in size. The rock sample pulps were analyzed for 7 major and 44 minor and trace elements requiring two separate digestions and analyses. These analyses require HNO3/HCI partial

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digestion and HF/HNO3/HClO4 total digestion followed by major and trace element detection by inductively coupled plasma mass spectrometry (ICP-MS). The elements analyzed by partial digestion include: As, Bi, Co, Cu, Ge, Hg, Mo, Ni, Pb, Sb, Se, Te, U, V and Zn. Those analyzed by total digestion include: Ag, Ba, Be, Cd, Ce, Cr, Cu, Dy, Er, Eu, Ga, Gd, Hf, Ho, La, Li, Mo, Nb, Nd, Ni, Pb, Pr, Sc, Sm, Sn, Sr, Ta, Tb, Th, U, V, W, Y,Yb, Zn and Zr. Total abundances of the major elements were determined and expressed as oxides and include: Al2O3, CaO, Fe2O3, K2O, MgO, MnO, Na2O, P2O5 and TiO2. The reader is referred to McCready (2007) who documents the SRC uranium assay method in greater detail.

Total digestion is achieved by dissolving the sample in a three acid mixture (HF, HNO3, and HClO4) and is heated until dry. The residue is then redissolved in dilute HNO3. Partial digestion is achieved by leaching a sample split in a dilute HNO3 and HCl solution (8:1) heated at 95°C for 1 hour. This procedure is designed to liberate the trace elements from all but the refractory mineral phases.

All radioactive samples (tested with the in-field, portable SPP2 scintillometer) were analyzed by the SRC for U3O8 wt% assay. An aliquot of sample pulp is digested in concentrated 3:1 HCl: HNO3. The digested volume is then made up to 100 ml for analysis by ICP-OES.

All samples were also subjected to gold analysis by fire assay. The fire assay method requires an aliquot of the sample pulp to be mixed with a standard fire assay flux in a clay crucible and a silver inquart added prior to fusion. After the mixture is fused the melt is poured into a form which is cooled. A lead bead is then recovered and cupelled until only a precious metal bead remains. The bead is then parted in diluted HNO3. The precious metals are dissolved in aqua regia and then diluted for analysis by ICP-OES and Atomic Absorption Spectrometry (AAS).

If visible gold was seen in the core, it may be prone to loss in the sample sieving process. Therefore, samples with fire assay results greater than 1000 ppb were further analyzed with the metallic fire assay method. This method begins with the entire sample being crushed, ground, and sieved at +/- 106 µm. All the +106µm material is fire assayed and two 30 g replicates are fire assayed from the - 106µm fraction. All weights, assays and calculations are reported.

All field samples collected for geochemistry were also analyzed by shortwave infrared (SWIR) reflectance spectroscopy to determine the main hydrous silicates and other potential alteration minerals present. The spectra were interpreted by the use of The Spectral Geologist software program with a custom spectral library created by AusSpec International for Cameco (uGESSL), supplemented by manual interpretation of the spectral profiles.

14.0 DATA VERIFICATION (FORM 43-101 F1 ITEM 12)

Quality control measures were undertaken by the laboratory and included the use of analytical standards. The analytical processes and results were monitored by Cameco’s Data and Quality Assurance Coordinator to assure the accuracy of analytical results. The only QA/QC test results available are from a Laboratory Performance Report on samples collected during the 2008 program diamond drilling core data (Zaluski et al, 2009).

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The purpose of the Laboratory Performance Report was to test geochemical results generated by the SRC Geo-analytical Laboratory primarily using standards inserted with 2008 Nueltin Lake project drill core samples. All available elements except gold were monitored and uranium and selected “pathfinder” elements were presented in the Laboratory Performance Report. QA/QC materials used included;

1. ASR1 and ASR2 – Developed by SRC and Cameco as representative standards for sandstone analysis. 2. CG515 – Developed by SRC as a representative standard for basement, total analysis only. 3. LS4 – Developed by SRC as a representative standard for basement, partial analysis only. 4. Boron Standards – Three standards, BL, BM, and BH, also developed by SRC. 5. CAM07SS – A field standard developed by Cameco in 2006 as a representative reference material for sandstone, total and partial analysis by ICP OES and ICP MS. 6. CAM07BS – A field standard developed by Cameco in 2006 as a representative reference material for basement, total and partial analysis by ICP OES and ICP MS. 7. USTD1 to USTD6 – Six standards developed by Cameco in 2005. 8. Canmet Reference Materials – There are four Canmet Reference Materials that SRC uses as internal QC checks. These include, BL2A, BL3, BL4A, and BL5 9. One filed duplicate was included.

A general, the QC tests for ICP MS analyses were satisfactory. All standards passed the QC test with the following exceptions;

1. For standard ASR 1 (ICP-MS partial analysis) there were three fails reported for Molybdenum.

ASR1 As Co Cu Mo Ni Pb U V Zn Partial Min 0.27 0.65 4.01 2.18 11.3 0.94 0.15 0.95 0.07 QC 0.41 0.74 4.51 2.49 12.6 1.21 0.21 1.29 0.85 Value Max 0.55 0.84 5.01 2.79 13.9 1.47 0.28 1.63 1.63

Table 11 – Standard ASR 1 (ICP partial) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

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2. For standard ASR 2 (ICP-MS partial analysis) there was one fail reported for Zinc. Table 12 indicates the accepted QC value as well as acceptable minimum and maximum values for the indicated elements.

ASR2 As Co Cu Mo Ni Pb U V Zn Partial Min 1.21 0.69 3.87 1.89 10.0 2.71 1.00 3.60 0.48 QC 1.63 0.80 4.27 2.15 11.4 3.13 1.20 4.26 1.09 Value Max 2.05 0.91 4.68 2.41 12.7 3.54 1.40 4.91 1.70

Table 12 – Standard ASR 2 (ICP partial) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

3. For standard ASR 1 (ICP-MS total analysis) and for ASR 2 (ICP-MS total analysis) there were upper limit failures for Vanadium and a lower limit failures for Zinc. These were reported to be due to the use of a new digestion block by SRC in October of 2007. Other elements affected by the new digestion block were W, TiO2, and Zr. Table 13 indicates the accepted QC value as well as acceptable minimum and maximum values for the indicated elements .

ASR1 Co Cu Mo Ni Pb U V Zn Total Min 0.65 4.15 2.82 11.4 1.76 0.36 3.06 0.79 QC 0.78 4.78 3.25 12.8 2.42 0.48 3.55 2.44 Value Max 0.91 5.41 3.67 14.3 3.08 0.60 4.03 4.09 ASR2 Co Cu Mo Ni Pb U V Zn Min 0.73 4.06 2.57 9.8 5.77 2.53 10.3 0.70 QC 0.87 4.68 3.08 11.7 6.58 3.04 12.6 3.11 Max 1.02 5.30 3.59 13.5 7.38 3.55 14.83 5.53

Table 13 – Standard ASR 1 (ICP total) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

4. For standards LS4 and CG 515, the QC test indicated no failures. Table 14 indicates the accepted QC value as well as acceptable minimum and maximum values for the indicated elements.

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LS4 As Co Cu Mo Ni Pb U,Fl U,ICP V Zn Partial Min 9 34 42 9 44 18 28 29 91 185 QC Value 12 38 49 12 49 22 32 34 101 205 Max 15 42 56 15 54 26 36 39 111 225

CG515 Co Cu Mo Ni Pb U,ICP V Zn Total Min 14 2 0 17 14 0 119 80 QC 17 4 1 22 17 2 131 87 Value Max 20 6 2 27 20 4 143 94

Table 14 – Standard LS 4 (ICP partial) and CG515 (ICP total) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

Uranium Assay Standards USTD1, USTD2, and USTD3 were only analyzed once with uranium assay results as follows; USTD1 = 0.268 % USTD2 = 0.874 % USTD3 = 3.04 U3O8%. Table 1 indicates the accepted QC value for each standard as well as the minimum and maximum acceptable value. The Uranium Assay Standard values all passed.

Cameco Assay USTD1 USTD2 USTD3 Standards Min 0.23 0.77 2.86 QC Value U3O8% 0.27 0.88 3.05 Max 0.32 0.98 3.24

Table 15 – Standard USTD 1, USTD 2 and USTD3 (U assay) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

Canmet Reference Materials were analyzed twice each. Table 1 indicates the accepted QC value for each standard as well as the minimum and maximum acceptable value. The Canmet reference material assays all passed the QC test.

Canmet BL BL3 BL4A Series Min 1.19 0.143 QC Value U3O8% 1.21 0.147 Max 1.23 0.151

Table 16 – Standard Canmet BL Series (U assay) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

Only one field duplicate was collected and analyzed and RPD values for uranium and major pathfinder elements are included in Table 17.

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Table 17 – Field duplicate RPD values – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

As mentioned previously, gold standards were not included in the Laboratory Performance Report QC testing of drill core analyses. The reason for this is not clear. The lack of gold assay QC testing is considered as an oversight that should be corrected, as gold is the most economically important metal in the Sandybeach Gold-Uranium Zone.

That said, the author remains confident in the quality of gold assay data from the 2008 diamond drilling program.

“Metallic” gold assays of the type completed by the SRC are considered the most effective analytical protocol to measure the gold content of rock samples containing “nugget” type coarse gold. Metallic gold assays were completed as many as four times on all samples that yielded > 1000 ppb Au in the initial FAAA assay; two assays on the -106 micron fraction and one assay on the +106 micron fraction. A compilation of all significant gold assay data was assembled as Table 18.

Repeat assays of the -106 micron fraction (Rep 1 and Rep 2) display an average 2% difference in gold assay values (with a range of -24 to 22 % difference in individual sample pairs) (Table 18).

Importantly, although there are some unusual outliers in the data, the metallic gold assays contain an average gold content that is 24% higher than the standard fire assay (FAAA) results (Table 18). This is apparently a function of the coarse grained “nugget like” nature of gold in most of the Sandybeach Gold-Uranium Zone core samples and would therefore highlight the need to continue application of the metallic gold assaying methods on this project.

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Metallic Gold W+106 Au+106 W-106 Re p1 Re p2 Au Au Dif Re p 1 %Dif Re p FAAA Au_t_ppb Au FAA g/t Dif Metallic Average Sam ple g ug g g/tonne g/tonne ug g/tonne Re p2 1 Re p2 Sample_numb FAAA vs FAA Difference Number ug er Metallic vs FAA

31601 20.38 28.0 477.72 2.92 2.80 1366 2.79 0.12 4% 31601 2174 2.174 0.62 21% 31602 2.34 9.81 27.80 6.23 5.94 169 5.93 0.29 5% 31602 14938 14.938 9.01 -145% 31603 5.28 538.4 79.26 7.25 6.60 548 12.8 0.65 9% 31603 8021 8.021 4.78 66% 31604 20.16 324 474.18 5.62 5.11 2543 5.79 0.51 9% 31604 4388 4.388 1.40 25% 31605 28.66 878.6 355.05 16.8 16.9 5982 17.8 0.10 -1% 31605 13857 13.857 3.94 23% 31606 43.10 70.6 197.69 1.91 2.08 394 1.92 0.17 -9% 31606 1360 1.36 0.56 29% 31607 18.18 393 227.13 19.3 21.2 4599 20.3 1.90 -10% 31607 8164 8.164 12.14 63% 31608 14.08 21570 197.84 25.1 26.2 5074 125.7 1.10 -4% 31608 79992 79.992 45.71 182% 31609 26.82 243.6 233.61 4.46 5.13 1120 5.23 0.67 -15% 31609 8821 8.821 3.59 -81% 31615 72.17 79.2 561.66 2.33 2.58 1378 2.29 0.25 -11% 31615 1974 1.974 0.32 14% 31617 64.11 162 892.76 1.96 1.52 1553 1.79 0.44 22% 31617 1505 1.505 0.29 15% 31618 16.12 31.8 129.25 2.57 3.18 371 2.77 0.61 -24% 31618 2441 2.441 0.33 13% 31627 39.92 224.5 357.38 7.84 8.40 2901 7.86 0.56 -7% 31627 5955 5.955 1.91 24% 31628 16.46 53.1 142.00 1.90 2.11 284 2.12 0.21 -11% 31628 1391 1.391 0.73 38% 31630 90.51 111.6 811.32 1.99 2.09 1655 1.95 0.10 -5% 31630 1860 1.86 0.09 5% 31905 24.88 42.9 833.4 21.4 23.6 18751 21.8 2.20 -10% 31905 1863 1.863 19.94 93% 31910 53.41 58.2 874.3 1.46 1.33 1219 1.37 0.13 9% 31910 1129 1.129 0.24 17% 31911 88.97 118.4 882.9 2.01 2.11 1818 1.99 0.10 -5% 31911 1626 1.626 0.36 18% 31912 77 124.1 697.9 2.92 2.78 1988 2.72 0.14 5% 31912 2014 2.014 0.71 24% 31914 81.39 235.8 591 3.51 4.07 2239 3.68 0.56 -16% 31914 2542 2.542 1.14 32% 31935 77.07 186.4 610.9 3.83 3.35 2192 3.45 0.48 13% 31935 2490 2.49 0.96 25%

Average -2% Average 24% Difference Difference Re p1 vs Metallic vs Rep 2 FAA

Table 18 – Compilation table of significant gold assay (FAAA and Metallic) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)

Although no published QA/QC test data is available for boulder and outcrop geochemical data, Cameco did issue the following statement (A. Brown, 2013);

Cameco Exploration routinely collects drill core samples for assay and geochemical evaluation purposes, and has implemented a quality assurance and quality control program to assist with verifying the accuracy and precision of the data collected from these samples. A variety of quality control media are included with the samples, including reference materials, blanks, and field duplicates at a typical rate of 5%. The contracted laboratory also provides data for laboratory standards and preparation duplicates, as well as long-term storage for the sample pulps. The quality control media are reviewed upon receipt of the data and semi-annually to assess the accuracy and precision of the assay and geochemical data collected. Reported elements must be within+/- three standard deviations of the accepted value in order to pass inspection. Quality control media failures are immediately reported to the laboratory, the project geologist, and the district geologist for review. The review of the quality control materials is completed under the direction of the primary geochemist for Cameco Exploration. The supplied analytical data for the Nueltin Lake project has passed the routine Cameco Exploration QA-QC program checks current at the time the data was received by Cameco.

No standard data verification procedures were stated for shortwave infrared (SWIR) reflectance spectroscopy analyses. SWIR analytical results should be considered semi-quantitative approximations of rock mineralogy.

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15.0 MINERAL PROCESSING AND METALLURGICAL TESTING (FORM 43-101 F1 ITEM 13)

No mineral processing or metallurgical testing has been undertaken in the Nueltin Lake to date.

16.0 MINERAL RESOURCE OR MINERAL RESERVE ESTIMATES, MINING AND RECOVERY METHODS,PROJECT INFRASTURCUTURE,MARKET STUDIES AND CONTRACTS, ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT CAPITAL AND OPERATING COSTS AND ECONOMIC ANALYSIS (FORM 43-101 F1 ITEMS 14-22)

Given the early stage nature of the Nueltin Lake project, there are presently no mineral resources or mineral reserve estimates for the project area and the related Form 43-101 items are therefore not applicable at this time.

17.0 ADJACENT PROPERTIES (FORM 43-101 F1 ITEM 23)

U Core Rare Metals Benton claims are located immediately to the northeast and to the southwest of the Sandybeach Gold-Uranium Zone (Figure 2). U Core’s two properties, totaling approximately 18.5 square kilometers, are essentially surrounded by the Nueltin Lake project.

U Core acquired this property in 2006, obtaining land which was previously explored by Noranda Mining and Exploration Inc. (on behalf of Althone) in 1994 (Sanguinetti, 1998). (See History). During Noranda’s exploration activities, Au, Co, and As mineralization were found in a showing, known as the Raven Zone, is a 20 m long trench located just off-property, directly adjacent to the southwestern end of the same regional magnetic high that hosts the Sandybeach Gold-Uranium Zone (Figure 24). The northeast-trending regional airborne magnetic high parallels the regional structural trend of the metasedimentary rocks, which contain magnetite and local concentrations of pyrrhotite. The Raven showing and the mineralized boulders in its vicinity are essentially similar to the mineralized boulders found in the Sandybeach Gold- Uranium Zone area 1.5 km to the ENE. The best assay for gold encountered during the 1994 work was 1.52 gAu/t and 0.54% Co over 1.0 m in a channel sample from the showing (Figure 29) (Sanguinetti, 1998).

In 2007, an airborne radiometric and magnetics survey was completed on behalf of U Core Rare Metals. Numerous radiometric anomalies were defined and targeted by a prospecting program in July 2007. The samples from the prospecting program returned assay values of up to 1.47% U3O8 and 27.7 g/ton Au from a cluster of angular float material comprised of weakly to strongly altered mineralized meta-arkose with a sulphide assemblage of pyrrhotite, arsenopyrite and +/- chalcopyrite as well as strongly altered granitic material devoid of sulphides (U Core Rare Metals website http://ucore.com/projects/sandybeach-lake-nunavut)

Prosperity Goldfields Corp’s Kiyuk Lake Property is located approximately 60 km to the northwest of the Sandybeach Gold-Uranium Zone and hosts a number of gold showings in outcrop, subcrop, and local float (Figure 1). Assays of mineralized surface grab samples from these showings have yielded gold contents in the 3 – 5 g/t Au range with values of up to

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36.97 g/t Au (Turner, 2012) (Figures 30 and 31). Diamond drilling in 2011 (totaling 2,679 m) confirmed an extension of mineralization to shallow depths at 3 targets (Rusty, Cobalt, and Gold Point). Highlight intercepts at these targets include 63.6 m grading 2.84 g/t Au at Gold Point, 32.1 m grading 1.82 g/t Au at Cobalt South and 157.6 m grading 1.70 g/t Au at the Rusty target area.

The Kiyuk Lake occurrences appear to be similar, in many respects, to the Sandybeach Gold- Uranium Zone. It has been described (Turner, 2012) as being associated with albite-carbonate- actinolite ± magnetite-biotite-muscovite-chlorite-tourmaline alteration as well as elevated As, Bi, Co, Mo, Ni, W and U. Alteration of host stratigraphy is very prominent and pervasive at the Kiyuk showings and is represented primarily by albitization, as well as sodic-calcic alteration, epigenetic iron oxides (magnetite and hematite), and late sulphide mineralization.

18.0 OTHER RELEVANT DATA AND INFORMATION (FORM 43-101 F1 ITEM 24)

In fulfillment of the conditions of permits, regulations in the territory of Nunavut and internal Cameco standards, data on the water source for the drill as well as before and after photos of the condition of each of the drill set-ups were collected. This information has been included by Cameco as part of their assessment reports which include sections on drill hole water quality monitoring and drill hole site surveillance - before and after record of remediation. Results of the wildlife monitoring program (species and numbers) in the areas around the drilling and during other exploration activities were also collected also reported in assessment reports as a report on wildlife monitoring procedures and submission of collected data.

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Figure 29 - Raven Showing (U Core Rare Minerals) - Sandybeach Lake – Benton Claims (Sanguinetti, 1998)

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Figure 30 - Kiyuk Lake project (Prosperity Goldfields Corporation) gold showings overlain on the geological map and airborne gravity ZZ tensor colour contour data (Turner, 2012).

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Figure 31 - Kiyuk Lake project (Prosperity Goldfields Corporation) gold showings overlain on 2007 airborne magnetic-TMI data (Turner, 2012).

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19.0 INTERPRETATION AND CONCUSIONS (FORM 43-101 F1 ITEM 25)

The Sandybeach Lake gold occurrence is a significant, but relatively poorly understood, zone of complex mineralogy/geochemistry hosted by metasomatically altered calcareous metasedimentary rocks located in the vicinity of potentially related granitic intrusives.

Key exploration characteristics of the Sandybeach Gold-Uranium Zone are interpreted in the following sections, at two, progressively decreasing, scales;

Regional scale characteristics of the Sandybeach Gold-Uranium Zone include;

1. It is hosted by metasedimentary rocks of the Wollaston Supergroup. Although the presence of favorably reactive metasedimentary rocks is likely very important, the fact that similar gold occurrences are hosted by older Hurwitz and Kiyuk Group metasedimentary rocks at Kiyuk Lake (Figure 30), appears to indicate that the age of the host metasedimentary assemblage is less important. 2. It is associated with prominent and large-scale positive magnetic anomalies. These magnetic anomalies appear to be due to elevated pyrrhotite and magnetite content within the host metasedimentary rocks. This is also apparently the case for the Kiyuk Lake gold occurrences (Figure 31). Although the areal extent of the Sandybeach Lake magnetic anomaly is significant, portions of this feature are likely due to magnetite content. Since magnetite is not a significant component of the Sandybeach Lake mineralization, magnetic anomalies caused by magnetite enrichment may not be prospective exploration targets. 3. It is spatially associated with Hudson granitoid rocks. Granite bodies tentatively identified as being of the Hudson variety were commonly intersected during the 2008 drilling program in the Sandybeach Gold-Uranium Zone area. Larger scale Hudson bodies were identified during geological mapping programs on the Nueltin Lake project. At Kiyuk Lake, the Hogarth granite sill is spatially associated with some of the Au mineralization (Turner, 2012 - Figure 25). The Hogarth granite sill is locally altered and believed to be correlative with the Hudson suite of granitoids. 4. Although geological mapping in the area of the Kiyuk Lake gold occurrences has identified seven major thrust faults on the property (Figure 25), thrust faulting has yet to be confirmed to be a control for mineralization on the Nueltin Lake project. That said, Zaluski et al, 2009 made a compelling case for the presence of reverse faulting along the contact between the Wollaston Supergroup and the Hurwitz Group just to the north of the Sandybeach Gold-Uranium Zone.

The optimal regional scale target would therefore be prominent positive magnetic anomalies within thrust faulted metasedimentary rocks near “Hudson” granitoid rock contacts.

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Prospect Scale characteristics of the Sandybeach Gold-Uranium Zone include;

1. Locally derived, altered and mineralized boulders have been shed from the Sandybeach gold-uranium Zone and deposited as “rubble” till. This has occurred despite the fact that surficial materials on the Nueltin Lake project are dominated by distally derived sandy tills, eskers and glacial outwash. Prospecting has been effective in locating mineralized boulders but till geochemical surveys, carried out in the sandy till terrain, have been ineffective as an exploration tool. 2. Distinctive albite and calc-silicate (pyroxene-tremolite) alteration has been identified, in both boulders and drill cores, associated with gold and uranium mineralization at the Sandybeach Gold-Uranium Zone. This alteration is believed to be of metasomatic origin and is similar in many respects to that observed at Kiyuk Lake, Nunavut and at Gillander Lake, Manitoba. This alteration may be the result of porosity and permeability controlled fluid interaction with metasedimentary rocks at or near the contact with Hudson granite rocks. 3. Disseminated pyrrhotite has a close spatial and perhaps genetic association with gold and uranium mineralization at the Sandybeach gold-uranium Zone. Pyrrhotite is the main sulphide phase observed in mineralized boulders and drill core and also appears to be deposited as a consequence of porosity and permeability of the altered arkosic (protolith) host rock. The close spatial/genetic association between pyrrhotite and gold/uranium mineralization can allow use of the physical properties of pyrrhotite (moderate to high magnetic susceptibility and high chargeability) to be used as an exploration tool. As a consequence, selected magnetic and IP/R survey chargeability anomalies have been demonstrated to be priority exploration targets for this type of mineralization. 4. Magnetite is a relatively minor phase in the Sandybeach gold-uranium Zone area but when observed (petrographically) it occurs primarily in drill holes located peripheral to the intersected mineralization. It is difficult to resolve whether the prominent magnetic anomaly spatially associated with the occurrence is caused by magnetite or pyrrhotite (or both). The apparent separation between these minerals may suggest either, a mineral zonation or perhaps sulphidation of magnetite to pyrrhotite, within the magnetic anomaly. Sulphidation of magnetite by pyrrhotite is a phenomena that has been documented at many iron formation hosted gold deposits on a world-wide basis (Lhotka and Nesbitt 1988) and it is possible that this is occurring at the Sandybeach gold-uranium Zone. 5. Complex mineralogical-geochemical signature of the Sandybeach Lake is distinctive and relatively unique. Identified minerals include pyrrhotite, arsenopyrite, chalcopyrite, pyrite, cobaltite, cobaltpentlandite, pentlandite, loellingite, galena, molybdenite, tellurides (Fe, Ni and Pb), scheelite, and silver and accompany native gold and uraninite. This mineral association has resulted in an extensive suite of “pathfinder” elements for this type of mineralization including U-Au-Ni-Co-As-Mo-W-Pb-Se-Te and the REE's. Whether these pathfinder elements form haloes that can be used to vector in on higher grade gold mineralization remains to be demonstrated. In the author’s opinion, a mineralogical/ elemental zonation is a distinct possibility and should be investigated. The quantity and spatial distribution of all of these “pathfinder” elements should be carefully documented and interpreted by a qualified geochemist. 6. Gold and uranium assays display a reasonable degree of correlation in mineralized DDH’s NLL-08-002 and NLL-08-009. However, significantly elevated gold contents were noted without appreciable uranium enrichment in DDH NLL-08-003. This fact

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appears to indicate that gold may occur independently of uranium in similarly altered metasedimentary rocks. This observation should not be surprising considering petrographic and visual observations suggest that the uranium mineralization event(s) are distinct from the gold depositional event. Therefore, in terms of exploration application of these observations, it is concluded that radiometric anomalies should not be the only guide for gold assaying and that all sulphide accumulations on the Nueltin Lake project should be sampled for gold geochemical analysis. 7. Geophysical (magnetic and IP/R) anomalies are potentially effective exploration targets for future exploration on the Nueltin Lake project. Both Zaluski et al (2009) and Gandhi and Charbonneau (2008), agree about the importance of the large-scale magnetic anomaly at Sandybeach Lake in terms of exploration potential. Similarly, both authors feel that IP/Resistivity is an effective tool for mapping mineralization on the Nueltin Lake project. The documented association between pyrrhotite and gold-uranium mineralization at Sandybeach Lake appears to have a direct manifestation as a magnetic high. Pyrrhotite is also strongly chargeable so should also respond as a positive chargeability anomaly. One must keep in mind; however that magnetite is also magnetic and chargeable and can, therefore, generate “false” targets that may not contain pyrrhotite. Filtering out magnetite related anomalies (preferably with minimal drill testing) may be challenging but would allow more focused testing of prospective geophysical anomalies. The magnetic susceptibility and chargeability of pyrrhotite and magnetite are somewhat distinct and it may be possible to identify areas within magnetic highs where one or the other may be dominant i.e. slightly lower magnetic areas within magnetic highs may be reflecting a higher pyrrhotite content. 8. Although only a limited number of EM conductors identified in the Sandybeach Lake occurrence area have been drill tested, these do not appear to be spatially related to gold – uranium mineralization. As a consequence EM conductors are considered lower priority exploration targets. 9. Sandybeach Lake mineralization intersected in DDH’s NLL-08-002 and NLL-08-009 can and should be used as template/case history to guide ongoing exploration. The geological setting, alteration, “ore” mineralogy and geochemistry and in particular the geophysical signature in DDH’s NLL-08-002 and NLL-08-009 should be fully utilized to guide future drill hole targeting.

The optimal prospect scale target is, therefore, considered to be gold and/or uranium bearing, disseminated pyrrhotite and arsenopyrite rich, albite and calc-silicate (pyroxene- tremolite) altered calcareous metasedimentary rocks. These rocks are generally non- conductive, are locally radioactive and display IP/R chargeability highs within subtle magnetic perturbations within an overall magnetic high.

20.0 RECOMMENDATIONS (FORM 43-101 F1 ITEM 26)

Despite almost 30 years of sporadic exploration, the Nueltin Lake project remains at early stages of exploration. The discovery of bedrock gold-uranium mineralization of the Sandybeach Gold- Uranium Zone in 2008 has provided a major step forward and a promising development.

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Therefore, in the following section, recommendations are made for full compilation and interpretation of existing data, ongoing prospecting and geological mapping, geophysical surveying, additional gold assaying, petrogenetic research and continued diamond drilling on the Nueltin Lake project.

Compilation and Interpretation of Existing Data – Although an excellent manual compilation of selected exploration data have been assembled by Gandhi and Charbonneau (2008) (Figure 21), a significant amount of work has been completed since its publication. Additionally, the project has not had the benefit of a GIS based model study, neither at the full project scale or at the scale of the Sandybeach gold-uranium Zone itself. GIS model studies, utilizing the key exploration characteristics described in the previous section (Interpretation and Conclusions), should greatly assist data organization and, most importantly, in the identification of targets for future exploration testing.

In addition, multi-element geochemical data from the 2008 diamond drilling program should be subjected to a thorough statistical and interpretive study. The objective of this study would be to attempt to identify pathfinder element haloes that could be used for exploration vectoring (targeting) purposes. Prior reflectance spectroscopy analyses of boulder and core samples appear to have provided little “exploration-vectoring” information and are not considered necessary.

Prospecting and Geological Mapping – Prospecting and geological follow up of airborne geophysical anomalies led to the initial discovery of mineralized boulders at Sandybeach Lake. Subsequent prospecting and geological evaluation ultimately resulted in the drilling discovery of the Sandybeach gold-uranium Zone in DDH NLL-08-002; the obvious source for at least some of these mineralized boulders. Similar style prospecting and geological mapping is highly recommended to test all magnetic and radiometric anomalies on the project, particularly those occurring in areas known to be underlain by metasedimentary host rocks.

Geophysical Surveying – Mineralization at the Sandybeach gold-uranium Zone mineralization may be imaged by a combination of radiometric, magnetic and the induced polarization (“IP”) geophysical techniques.

Radiometric surveying lead to the initial discovery of mineralized boulders at Sandybeach Lake and as a consequence prospecting follow up of all radiometric anomalies on the Nueltin Lake project is highly recommended.

IP anomalies located within a broader magnetic high appear to be directly associated with the three mineralized drill holes. Ground IP and magnetic surveying is recommended to cover the entire on-property extent of airborne Magnetic domain B. The DC-IP/Resistivity survey coverage should be extended both east and west directions as chargeability trends remain open along strike at either end of the 2009 survey grid. It is also recommended that an attempt, to distinguish magnetic and IP chargeability responses due to pyrrhotite and those due to magnetite, be made by a qualified geophysicist. For example, in order to assist in target selection, the geophysicist should assess already collected IP/Resistivity data using the various time bases in an attempt to discriminate different types of sulphides/oxides on the project and if successful, determine if the uranium and gold mineralization is associated with a particular chargeability response.

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Gold Assaying – Sampling of drill core for gold assay during the 2008 diamond drilling program is considered to be insufficient. Only 76 of 254 drill core samples sent for geochemical analysis had FAAA gold assays completed. With few exceptions, only selected radioactive intersections were assayed for gold when it is apparent that elevated gold values can occur without associated uranium concentrations. It is therefore recommended that all sulphide accumulations in calc-silicate and albite altered rocks should be split, sampled and assayed, both in existing 2008 drill cores as well as in all future drill coring on the Nueltin Lake project. In addition, gold analyses by FAAA should be completed on every composite or selected drill core sample collected. An appropriate QA/QC protocol should also be established to monitor the quality of all future gold assay data.

Petrogenetic Research – Two research programs are recommended; 1. A limited program of U-Pb geochronology with supporting petrographic and geochemical studies is recommended to provide information on the origin of the Sandybeach gold- uranium Zone. This work could be accomplished at relatively low cost through sponsorship of an MSc thesis. 2. A focused study is recommended to determine whether the potentially genetically important granitic intrusions in the Sandybeach Lake gold-uranium Zone area are of “Hudson” or “Nueltin” origin. Although most of the granitic rocks intersected during the drill program were described as of the Hudson variety, it is not at all certain which of these two types of igneous suites is dominant in the Sandybeach Lake area. Geochronology with supporting petrographic and geochemical studies could also be achieved through sponsorship of an MSc thesis.

Diamond Drilling – Focussed, multi-stage drilling programs are recommended for the Nueltin Lake project.

An initial (2013), small-scale drilling program (7-10 drill holes totalling ~1,000 m) is recommended to test established prospective targets in the following locations;

1. At the Sandybeach gold-uranium Zone itself, in order to more fully determine its continuity and geometry. Evaluation of selected priority untested IP anomalies and interpreted fault (magnetic break) in the immediate vicinity of DDH’s NLL-08-002 and NLL-08-009 is the recommended course of action. 2. Follow up drilling to test IP anomalies in the area of mineralized DDH NLL-08-003/ Darcy’s cluster and 3. Drill testing of a prospective IP anomaly target along the western edge of the 2009 IP coverage.

Diamond drill programs on the Nueltin Lake project should pay specific emphasis on the determination of the geometry and true thickness of any encountered mineralization. This would be best accomplished through the collection of oriented core measurements and by relatively short “steps” for follow up drill holes. It is recommended that no follow up drill hole should target greater than 50 metres from an initial mineralized intersection, at least until the geometry of the mineralized body has been satisfactorily established. As indicated in Table 19, in order to obtain effective “mineralization geometry” information, a follow up drill hole only need change

2013 Independent Technical Report on the Nueltin Lake Project, Nunavut, Canada Page 106 of 113 the drill hole dip from the same collar location. This follow up drilling approach could also provide significant savings in helicopter drill moves.

Drill target specifications are included in Table 19 and proposed drill hole locations are included in Figure 32. The budget for the recommended drilling program is estimated at ~$819,000 (C$) (Table 20).

Target Target Target Drill Hole Length Designation Coordinates Depth (m) Coordinates Azimuth Dip (m) Target Specifications IP Target IP09-27 at just east of DDH's NLL-08- NLL-13-A L1350E, 0+32N 20 L1350E, 0+00N 340° -65° 60 002 and-009, initial test IP Target IP09-27 at just east of DDH's NLL-08- NLL-13-B L1350E, 0+32N 20 L1350E, 0+00N 340° -80° 75 002 and-009, follow up test if initial test is mineralized IP Target IP09-23 at west of DDH's NLL-08-002 NLL-13-C L1250E, 0+50N 80 L1250E, 0+15N 340° -65° 120 and-009, initial test IP Target IP09-23 at west of DDH's NLL-08-002 NLL-13-D L1250E, 0+50N 80 L1250E, 0+15N 340° -45° 85 and-009, follow up test if initial test is mineralized IP Target IP09-31 at east of DDH's NLL-08-002 NLL-13-E L1400E, 0+60N 70 L1250E, 0+30N 340° -65° 115 and-009, initial test IP Target IP09-31 at east of DDH's NLL-08-002 NLL-13-F L1400E, 0+60N 70 L1250E, 0+30N 340° -45° 85 and-009, follow up test if initial test is mineralized IP Target IP09-16 at east of DDH NLL-08-003, NLL-13-G L10+50E, 320N 80 L10+50E, 285N 340° -65° 120 initial test IP Target IP09-16 at east of DDH NLL-08-003, NLL-13-H L10+50E, 320N 80 L10+50E, 285N 340° -45° 90 follow up test if initial test is mineralized Total Metres 750 NLL-13-I L10+50E, 220N 20 L10+50E, 200N 340° -65° 90 Follow up hole east of DDH NLL-08-003 IP Target IP09-02 at west end of IP coverage NLL-13-J L5+00E, 0+05N 70 L5+00E, 0+25S 340° -65° 110 area, initial test Contingency 200

Table 19 – Recommended initial phase diamond drilling targets – Sandybeach Lake gold- Uranium Zone areas - Neultin Lake project

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Figure 32 - Proposed initial program drill hole locations – Nueltin Lake Project

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URU Metals Limited Neultin Lake Project 2013 Budget Estimate

2013 Budget ($ thousands) Dire ct Costs: Personnel 132.53 Camp Costs 95.92 Field Equipment Costs 9.40 Analysis 35.00 Travel and Transportation 86.70 Land Costs 0.50 Miscellaneous 10.00 Total Direct Costs 370.04

Contractor Costs: Diamond Drilling 98.80 Other Contractor 216.73 Camp Staff & Mgmt 112.78 Helicopter 103.95 Camp Catering 26.36 Total Contractor Costs: 341.89

Total Project Costs: 711.93

Administration Fee (15%) 106.79

Total Project Costs: 818.72

Partners Share: URU (buy-in) (100%) 818.72 Cameco (0%) 0.00

Table 20 – Recommended initial phase budget - Neultin Lake project

The described and proposed 2013 drilling program is considered to be the minimum necessary to confirm the presence of significant gold-uranium mineralization at the Sandybeach gold- uranium Zone and to substantiate the targeting criteria established in this report. Once confirmed, progressively larger drill programs will be justified and can be planned for 2014 and beyond.

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The recommended initial program indicated in Table 19 is not meant to be a rigid plan. The proposed initial drill plan can, and should, be modified as drilling results are received and interpreted. For example, if the initial results of drilling in the area of DDH’s NLL-08-002 and NLL-080-009 suggest that the geometry of mineralization is not perpendicular to the proposed drilling azimuth, drill hole collar locations and azimuths should be adjusted accordingly.

21.0 REFERENCES (FORM 43-101 F1 ITEM 27)

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Charbonneau, B.W. and Gandhi, S.S. 1986. Gold Occurrence in Radioactive Calc-Silicate Float at Sandybeach Lake, Nueltin Lake Area, District of Keewatin. Geological Survey of Canada, Current Research Paper, 86-1A, pp. 803-808.

Charbonneau, B.W. and Gandhi, S.S. 2002. Exploration Implications of the 2002 Magnetic, HLEM and IP Surveys, Sandybeach Lake Grid, NU, Claim LES-1 (#F-56800) (NTS 65B/4&65C/1). Report to Cameco Corporation, 32 p.

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deGroot-Hedlin C. and Constable S.C. 1990. Occam's inversion to generate smooth, two- dimensional models from magnetotelluric data. Geophysics, 55, 1613-1624.

Eade, K.E. 1971. Geology of Map Area, District of Keewatin. Geological Survey of Canada, Paper 72-21, 19 p.

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Research Council, Confidential report to Cameco Corporation, SRC Publication No. 10401- 2SC98, 68 p.

Maxwell, J.B., 1986: A Climate Overview of the Canadian Inland Seas Biostratigraphy in I.P. Martini (ed.), Canadian Inland Seas, Elsevier Oceanography Series, 44, pp. 79-99.

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McGowan , S.E. 1993: Report of geological investigations in 1989, 1990 and 1993; Claim 13102 (Jan-1), Sandybeach Lake Au-U showing; NTS 6S B 4, 65 C 1; Long. 99° SS' W and Lat. 60° 07 N; Northwest Territories; Report to Claude Resources Inc.; Indian and Northern Affairs Document 083223, 13p.

Meinhert, L.D.. 1993. Igneous Petrogenesis and Skarn Deposits. In Kirkham, R.V., Sinclair, W.D., Thorpe, R.I., and Duke, J.M. Eds. Mineral Deposit Modeling. GAC Special Paper 40., pp. 567-583.

Mysyk, W.K.. 2008. Petrographic Analysis of Seventeen Drill Core and Three Grab Samples, Nueltin Lake Gold Project, Nunavut. Laramide Petrologic Services report prepared for Cameco Corporation. 76p.

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Scott, J.M.J., Peterson, T.D. and McMurdy, M.W., 2012. U, Th and REE occurrences within the Nueltin granite at Nueltin Lake, Nunavut: recent observations: Geological Survey of Canada, Current Research 2012-1, 11p.

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22.0 CERTIFICATE OF QUALIFIED PERSON

Danny Ernest Jiricka 106 Braeshire Lane, Saskatoon, Saskatchewan, S7V 1A1 Certificate of Author

I, Danny Ernest Jiricka, P. Geo., as author of this report, titled “Technical Report on the Geology of, and Results From, the Nueltin Lake Project Nunavut”, prepared for URU Metals Limited and dated April 30, 2013, do hereby certify that:

• I am a self-employed consulting geologist and owner of D. E. Jiricka Enterprises, located at 106 Braeshire Lane, Saskatoon, Saskatchewan, Canada.

• I am a member in good standing of the Association of Professional Engineers and Geoscientists of Saskatchewan (member number 4966). I am a registered Professional Geologist and a Professional Engineer with APEGS with additional Permission to Consult.

• I am a graduate of Laurentian University at Sudbury, Ontario with both a M.Sc. (1985) and B.Sc. Honours degrees in Geology (1977).

• I have practiced my profession continuously since in 1979, and have been involved in multi-commodity mineral exploration in Canada, the United States, Australia and Mongolia.

• I am owner of D.E. Jiricka Enterprises, a sole proprietor geological consulting firm registered in the Province of Saskatchewan.

• As a result of my experience and qualification, I am a qualified person as defined in N.I. 43- 101.

• I am independent of the issuer applying the test set out in section 1.4 of N.I. 43-101.

• The foregoing report is based on my personal knowledge of the geology of the property gained through ongoing study of historical exploration data and current property data supplied to me by URU Metals Limited. I completed a site visit to the Nueltin Lake during the period June 21-25, 2008 as Chief Geoscientist for Cameco Corporation. At this time the geology and exploration activities on the property were described and assessed. An additional site visit is planned for the summer of 2013.

• I have read N.I. 43-101 and Form 43-101F1, and the technical report has been prepared in compliance with both.

• I am not aware of any material fact or material change with respect to the subject matter of this technical report which is not reflected in this report, the omission to disclose which would make this report misleading.

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• I am responsible for the preparation of all sections of this report.

Dated at Saskatoon, Saskatchewan, this 30th day of April, 2013.

SIGNED

“D.E. Jiricka” (signed and sealed)

D.E. Jiricka, M.Sc., P. Geo., P.Eng. D.E .Jiricka Enterprises

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