ASSESSMENT REPORT

Prospecting Survey On the MONTE CRISTO PROJECT

New Westminster Mining Division

Latitude: 49° 57’ 24’’ N; Longitude: 122° 25’ 38’’ W

NTS 092G16W

For

NORTH BAY RESOURCES INC. PO Box 162 Skippack Pennsylvania 19474 USA

By

Dan V. Oancea PGeo

August 1, 2014

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TABLE OF CONTENTS

1 Summary Page 1 2 Conclusions Page 4 3 Recommendations Page 4 4 Introduction Page 4 4.1 Location, Access and Physiography Page 4 4.2 Placer Claims Page 5 4.3 Climate, Local Resources, Infrastructure Page 7 4.4 History and Development Page 7 5 Geology and Mineralization Page 8 5.1 Regional Setting Page 8 5.2 Mineralization and Deposits Page 8 5.3 Property Geology and Mineralization Page 9 6 Prospecting Survey Page 10 7 Discussion and Conclusions Page 11 8 Recommended Work Page 14 9 Cost Statement Page 15 10 References Page 16 11 Statement of Qualifications Page 17

LIST OF FIGURES

Figure 1 - Index Map After Page 3 Figure 2 - Topography and Access Map After Page 4 Figure 3 - Placer Claims Map After Page 6 Figure 4 & 5 - Sampling Maps 1 & 2 After Page 10

LIST OF TABLES

Table 1 - Placer Titles Page 6 Table 2 - Sample Locations Page 18

PICTURES

Plate 1 - Monte Cristo Alluvial Terrace Page 10

APPENDICES

Appendix 1 - ALS Chemex Analytical Certificates & Chemical Procedures

 !≥≥•≥≥≠•Æ¥ 2•∞Ø≤¥ ØÆ ¥®• -ØÆ¥• #≤©≥¥Ø 0¨°£•≤ 0≤Ø™•£¥ 0°ß•  1. Summary

The Monte Cristo gold-platinum placer project is located on the Lower Lillooet River some 12 km south of the Lillooet Lake in the New Westminster Mining Division of southwestern British Columbia, Canada. The property could be accessed by following Highway 99 from Vancouver to Pemberton and to the community of Mount Curie for about 160 km then turning south on the in-SHUCK-ch Forest Service Road for another 60 km.

The Monte Cristo property consists of 16 placer claims and is 100% owned by North Bay Resources Inc of Skippack, Pennsylvania, USA. It covers 332.59 ha alongside the Lower Lilloet River which flows southeast from the Lillooet Lake towards the Harrison Lake. The property occupies a part of the broad U-shaped glacial river valley and is flanked by moderately to steep terrain. The property is covered by NTS Map Sheet 092G.

Rocks underlying the Monte Cristo placer property are represented by marine sedimentary and volcanic rocks of the Lower Cretaceous Gambier Group which are surrounded by other intrusive rocks of Mesozoic age. An important northwest trending fault – the Fire Creek Fault - parallels the Lower Lillooet River. Geological constrains point to the Lillooet River being of Pliocene to Miocene age.

The placer property is underlain by alluvium of minimum a Quaternary age. At least part of the alluvium was derived from the reworking of the glacial till material that blanketed the hills and from glacial outwash material. The Monte Cristo placer tenures occupy several well developed terraces of the Lower Lillooet River that are extending from 121 masl to above 150 masl.

In 1858 the Lower Lillooet River was part of a portage trail between the Harrison and Lillooet Lakes which was built by gold seekers that were looking for ways to get into the Fraser River placers and later into the Cariboo region where a gold rush was about to take place. Coarse gold was also discovered along this route by miners travelling to the Cariboo gold fields. No known placer mining operation had been recorded on the river but in the 1970s and 1980s several attempts were made to economically produce gold and platinum from placer leases located north of the Harrison Lake. The precious metals were described as fine to micron size and enjoying a wide distribution in the alluvial deposits that occupy the wide Lower Lilooet River Valley.

In 2012 North Bay Resources engaged in a first pass prospecting and sampling survey of their Monte Cristo claims. Coarse gold was identified in many of the samples collected from an area located near the Skookumchuck hot springs where assay results ran as high as 5.70 g/t gold.
 !≥≥•≥≥≠•Æ¥ 2•∞Ø≤¥ ØÆ ¥®• -ØÆ¥• #≤©≥¥Ø 0¨°£•≤ 0≤Ø™•£¥ 0°ß•  Fig.1 - Monte Cristo Index Map

Legend

0 140 280 km. Scale: 1:8,000,000 Map center: 54°16' N, 123°35' W This map is a user generated static output from an Internet mapping site and is for general Notes: Dan Oancea July 2014 for North Bay Resources Inc. reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION. The writer of the present report was engaged to assess the prospectivity of the claims and a two day field survey was undertaken in April 2014. The easier to access, permit and mine part of the Monte Cristo placer property is located on the western side of the river therefore that part of the property was surveyed and some of the higher elevation terraces were sampled. Assay results were not able to replicate the gold and platinum assays reported back in the 1970s.

2. Conclusions

The results of the 2012 and 2014 prospecting surveys as well as literature search and the interpretation of available geological data point to the fact that the Monte Cristo placer tenements have the potential to host precious metals in certain stratigraphic levels or fluvial terraces of the Lower Lillooet River.

Field results point to the fact that fine gold is not ubiquitous and has no uniform distribution throughout the thick pile of alluvial sediments of the Lower Lillooet River. Nevertheless the presence of coarse gold on the lower terraces of the river as resulted from previous work on the claims and mentioned in historic documents indicate that possible economic accumulations of gold exist with gold most likely derived from local sources.

3. Recommendations

It is recommended to undertake a more detailed geological and sampling survey that would clarify the Lower Lillooet River's alluvial stratigraphy and gold (and possible platinum) distribution as well as the gold balance and particle size distribution. Areas of interest would be delineated and bulk sampled or outright mined to provide funds for the development of the placer claims. The possibility of developing commercial gravel pits that would serve the needs of the region's road builders, which includes the Ministry of Transportation, would also have to be taken into consideration.

4. Introduction

4.1 Location, Access and Physiography

The Monte Cristo placer property is located on the Lower Lillooet River of the southern Cascade Mountains in the New Westminster Mining Division of southwestern British Columbia, Canada. It is covered by NTS Map Sheet 092G.

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Fig.2 - Monte Cristo Topography & Access Map

Legend

Scale: 1:14,888 0 800 1600 m. Map center: 49° 57' 32" N, 122° 25' 47" W This map is a user generated static output from an Internet mapping site and is for general Notes: Monte Cristo placer claims contoured by red line. Dan Oancea, July 2014 for North Bay reference only. Data layers that appear on this map may or may not be accurate, current, or Resources Inc. otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION. The property could be accessed from Vancouver by travelling north on Highway 99 past Whistler and Pemberton and to the small community of Mount Curie over a distance of 164 km. From Mount Curie turn south on the in-SHUCK-ch Forest Service Road for another 60 km in order to reach the northern boundary of the Monte Cristo placer claims. To access the western side of the claims the road crosses the Little Lillooet Lake over the 156 m in length and 25 m mainspan Tenas Bridge which was built in 1999. The road is being used by local forestry companies.

The Lower Lillooet River route known as the Douglas Road was a gold rush-era (1858) transportation route from the Coast to the Interior of British Columbia which was used to access the Fraser River and Cariboo gold fields.

Mount Curie is an Indian Reserve (population: 800) belonging to the Lil'wat people. It was originally named after John Curie a former California and Cariboo, B.C. gold miner. Curie the first non-indigenous settler of the area became a rancher (along with his Lillooet Indian wife) in 1885.

The Lillooet River ('nkukutsa' in native language) begins at the Lillooet Crown Icecap which is located 80 km northwest of Pemberton. The Upper Lillooet River valley is about 95 km in length and enters the Lillooet Lake 15 km from Pemberton near Mount Curie. The Lillooet Lake is about 25 km in length and covers an area of 33.5 sq km. Old First Nations stories tell of a huge water snake that inhabits the lake.

The Lower Lillooet River flows out of the southern tip of the namesake lake over a 55 km distance until it joins the larger Harrison Lake. The Lower Lillooet River valley is bordered to the west by the Garibaldi Provincial Park. The placer property is surrounded by forested mountainous terrain. Part of the property is also covered by mostly young coniferous forests.

The eastern part of the Monte Cristo claims hosts the Skookumchuck Hot Springs (092GNE040) which represents a touristic attraction especially in summer time.

The Monte Cristo placer claims are located in between the Indian Reserve 3 Sweeteen to the north and Indian Reserve 4 Skookumchuck.

4.2 Placer Claims

The Monte Cristo property consists of sixteen placer claims that cover 332.59 hectares (821.85 acres). The claims are 100% owned by North Bay Resources Inc. and are centred at 49° 57’ 24'' N and 122° 25' 38'' W. The mineral property is covered by the NTS 092G098 map.

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TABLE 1: PLACER TITLES AT THE MONTE CRISTO PROJECT

Tenure Claim Owner NTS Good to Status Area (ha) Number Name Map Date* Number

1016826 MC IR 204090 092G098 2015/Jan/09 GOOD 20.79

1027600 MC 1 204090 092G098 2015/Jan/10 GOOD 20.78

1027602 MC 2 204090 092G098 2015/Jan/10 GOOD 20.78

1027604 MC 3 204090 092G098 2015/Jan/10 GOOD 20.78

1027606 MC 4 204090 092G098 2015/Jan/10 GOOD 20.78

1027608 MC 5 204090 092G098 2015/Jan/10 GOOD 20.78

1027609 MC 7 204090 092G098 2015/Jan/10 GOOD 20.79

1027610 MC 6 204090 092G098 2015/Jan/10 GOOD 20.79

1027612 MC 8 204090 092G098 2015/Jan/10 GOOD 20.79

1027614 MC 9 204090 092G098 2015/Jan/10 GOOD 20.79

1027616 MC 10 204090 092G098 2015/Jan/10 GOOD 20.79

1027618 MC 11 204090 092G098 2015/Jan/10 GOOD 20.79

1027619 MC 13 204090 092G098 2015/Jan/10 GOOD 20.79

1027620 MC 12 204090 092G098 2015/Jan/10 GOOD 20.79

1027622 MC 14 204090 092G098 2015/Jan/10 GOOD 20.79

1027621 MC 15 204090 092G098 2015/Jan/10 GOOD 20.79

TOTAL 332.59

*Subject to acceptance of the present Assessment Report.

A group of placer claims which overlap the eastern bank of the river (surrounding the hot springs) are partially or totally located on former private land subsequently acquired by the Federal Government. The land is to be held in trust for the in- SHUCK-ch Nation until land claim negotiations with the province are completed. Placer claims affected by this land deal are: 1027600, 1027602, 1027604, 1027606, and 1027608.

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Fig.3 - Monte Cristo Placer Claims Map

Legend

Scale: 1:14,888 0 800 1600 m. Map center: 49° 57' 32" N, 122° 25' 47" W This map is a user generated static output from an Internet mapping site and is for general Notes: Dan Oancea, July 2014 for North Bay Resources Inc. reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION. 4.3 Climate, Local Resources, Infrastructure

The climate is moderate with an annual average temperature of 10° C. Rainfall averages 160 cm per year with December being the wettest month.

Forestry has historically been the primary industry in the region. There is no operating hardrock mine in the vicinity except for the Bralorne gold mine which is located about 100 km north of the Monte Cristo. Small scale placer mining operations also exist in the region but none for the time being on the Lower Lillooet River. A note has to be made that as resulting from their Notice of Work Platinate Minerals & Industries Ltd intend to work their gold and platinum placer lease claims located on Tuwasus Creek which is a western tributary of the Lower Lillooet River situated less than 6 km northwest of Monte Cristo.

Infrastructure is good with well-maintained logging roads connecting the project area with the community of Mount Curie.

Accommodation, food and gas could be provided and sourced from Pemberton and Whistler and some from the small community of Mount Curie.

4.4 History and Development

In 1857 gold was first discovered in the region on the Fraser River which led to a short lived gold rush. Due to the difficult access to the newly discovered gold placers and because of hostile Indian populations an alternate access route to the Fraser River was built in 1858 on the Lower Lillooet River – i.e. the Douglas Road. In the 1862-1864 period, as a result of the discovery of rich gold placer deposits in the Cariboo region of British Columbia a new wagon road was built in the Fraser Canyon by Royal Engineers. Most of the miners and suppliers used the new route and as a result the Douglas Road through the Lower Lillooet River fell into disuse.

The transient miners panned the Lower Lillooet River and discovered coarse gold but not in large enough quantities that would have made them change their plans and mine the new locations. In 1882 A.G. Warnford Lock in his book Gold: Its Occurrence and Extraction wrote that: “Lillooet River – Flowing into Harrison Lake. Some gold found here, and at various points on the portages towards Lillooet.”

Hardrock mining in the area took place on the Fire Mountain which adjoins and is located immediately southwest of the Monte Cristo placer claims. Discoveries were made starting with 1896 and in subsequent years adits were driven and gold-silver- base metals ore was processed at on-site mills.

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As described in previous assessment reports (AR26299, AR27667, AR27668) the occurrence of platinum in deltaic sands of the Lower Lillooet River at the place where it enters the Harrison Lake was noted in 1966. According to the aforementioned reports in the 1970s and 1980s exploration work and processing tests were made on auriferous and platiniferous sands of the Lower Lillooet River.

Alluvial gold and platinum were also discovered on Tuwasus Creek a western Lower Lillooet River tributary located 6 km upstream of the Monte Cristo claims (AR29814).

5. Geology and Mineralization

5.1 Regional Setting

The Canadian Cordillera is made of five geological belts that record their Mesozoic accretion to the ancestral North America. The Monte Cristo property is located in the southern part of the Coastal belt which is the second westernmost belt. The belt comprises the Coast and Cascade mountains and extends from south of the British Columbia - Washington border to approximately 1,500 km to the north past the Yukon border.

The Cascade magmatic belt, which includes local plutons like the Rogers Creek Intrusive complex, boasts numerous porphyry and epithermal deposits occurrences.

5.2 Mineralization and Deposits

The Monte Cristo gold-platinum project is located 12 km south of the end of the Lillooet Lake and the presence of several important gold mineralized zones on or in the vicinity of this stretch of river provides support to the theory that the coarse gold which was found on the river is derived from local sources.

The Fire Mountain mineralization located immediately southwest of Monte Cristo as well as other documented mineral occurrences located immediately west of the placer claims are hosted in a belt of volcanic and sedimentary rocks of the Lower Cretaceous Fire Lake Group, which extends for 40 km northwest from Harrison Lake. The Fire Lake Group is an island arc sequence preserved in a roof pendant, which occurs mostly west of the Lillooet River near the eastern margin of the Jurassic to Cretaceous Coast Plutonic Complex. The assemblage has been subjected to thrust faulting, large amplitude folding and regional metamorphism up to greenschist facies. Immediately to the east of the Money Spinner occurrence (Minfile 092GNE002) in the Lillooet Valley, the Harrison Lake shear zone and related structures are interpreted as important mineral controlling structure. The Fire

 !≥≥•≥≥≠•Æ¥ 2•∞Ø≤¥ ØÆ ¥®• -ØÆ¥• #≤©≥¥Ø 0¨°£•≤ 0≤Ø™•£¥ 0°ß•  Mountain prospects are represented by veins and lenses carrying gold, silver and copper mineralization.

Quartz veins and stockwork gold-silver-polymetallic mineralization have been discovered and some of them mined immediately west of the Monte Cristo placer claims: the Mayflower (092GNE010), Easy-Joe (092GNE026), and Easy No.1 (092GNE011).

A new type of mineralization was discovered on the Rogers Creek which is an eastern Lower Lillooet River tributary located 2.5 km upstream of the Monte Cristo claims. Since 2008 Miocene Metals Ltd explored the mineral property and delineated important occurrences of porphyry style copper-gold-molybdenum mineralization related to the Miocene Rogers Creek Intrusive Complex.

Other assessment reports (AR29814) also indicate that economic concentrations of gold (up to 64.01 g/t), platinum (up to 0.46 g/t) and palladium (up to 1.5 g/t) exist in the gravels carrying black sands on the Tuwasus Creek which is located 6 km upstream of Monte Cristo.

5.3 Property Geology and Mineralization

The area surrounding the Monte Cristo property is underlain by the Jurassic Harrison Lake Formation and the overlying Lower Cretaceous Fire Lake Group. These rocks form a roof pendant, northwest of Harrison Lake, composed of three distinct stratigraphic units. The basal section consists of granulite, andesite, conglomerate, limestone and quartzite. The central unit consists of dark slates, shales, argillite and greywacke. The upper unit consists of clastic feldspathic greenstone, chlorite schist and minor conglomerate.

The roof pendant rocks are surrounded by the late Jurassic to early Cretaceous Pemberton Diorite Complex; by some unnamed Cretaceous dioritic rocks; and, by the Miocene Rogers Creek Intrusive Complex. An important northwest trending fault – the Fire Creek Fault - parallels the Lower Lillooet River.

Fine to micron size gold and platinum mineralization had been described on the Monte Cristo property by previous authors. According to AR2589 it has been ascertained that the alluvial sands contain an average of 1.23 g/t gold, 1.57 g/t platinum, 0.68 g/t palladium, 0.07 g/t iridium and 2.3 g/t silver. The report notes that : “The sands containing the precious metals occur along the 34 mile ancient river bed, are laterally one-quarter one-half mile wide, and are occasionally characterized by paired benches flanking the narrow, fast-flowing, shallow river. In most instances the Lillooet River is entrenched within the sands occupying a bed some 100 feet deep. These sands have been classified and re-distributed in post-Pleistocene time over a period of some 10,000 years”(092GNE019, 092GNE013).

 !≥≥•≥≥≠•Æ¥ 2•∞Ø≤¥ ØÆ ¥®• -ØÆ¥• #≤©≥¥Ø 0¨°£•≤ 0≤Ø™•£¥ 0°ß•  A 2012 sampling orientation survey was conducted by North Bay Resources on the eastern bank of the placer claims where it encountered consistent economic values of (visible) gold (up to 5.70 g/t) on the lower terraces of the river.

6. Prospecting Survey

A two day prospecting survey was undertaken during the month of April 2014. The scope of the survey was to understand the geological setting and sample some of the river's west bank alluvial terraces because they are considered to be easier to access, permit and mine than the ones located on the east bank.

Easy access to all west side terraces is provided by a well maintained forestry road that runs parallel to the river. Well-developed alluvial (cut) terraces have been encountered at different levels: approximately 177 masl, 150 masl, 145 masl, 134 masl, 127 masl, and 121 masl. The latter is probably representing a floodplain located 4 m to 6 m above the river.

Plate 1: Monte Cristo alluvial terrace

West Lower Lillooet River terraces are covered by young coniferous vegetation which at times could become impenetrable. A thick package of alluvial material was encountered during the traverses. Pebbles and boulders are made of intrusive (granodioritic to dioritic)
 !≥≥•≥≥≠•Æ¥ 2•∞Ø≤¥ ØÆ ¥®• -ØÆ¥• #≤©≥¥Ø 0¨°£•≤ 0≤Ø™•£¥ 0°ß•  Fig.4 - Monte Cristo Sampling Map (1)

Legend

Scale: 1:2,000 0 110 220 m. Map center: 49° 57' 27.3" N, 122° 25' 47.9" W This map is a user generated static output from an Internet mapping site and is for general Notes: Station numbers (#153). Red asterisk=Sampling Locations. Gold in ppm. Below detection reference only. Data layers that appear on this map may or may not be accurate, current, or limit: Pt< 0.005ppm & otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION. Pd<0.001ppm. Dan Oancea, July 2014 for North Bay Resources Inc. Fig.5 - Monte Cristo Sampling Map (2)

Legend

Scale: 1:2,000 0 110 220 m. Map center: 49° 57' 47.2" N, 122° 26' 3.7" W This map is a user generated static output from an Internet mapping site and is for general Notes: Station numbers (#136). Red asterisk=Sampling Locations. Gold in ppm. Below detection reference only. Data layers that appear on this map may or may not be accurate, current, or limit: Pt< 0.005 ppm & Pd<0.001 ppm. Dan Oancea, July 2014 for North Bay Resources Inc. otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION. rocks and other local volcanic rocks. The matrix is represented by uncompacted clean sand which is lacking iron staining and is containing very little silt. No local accumulations of heavy minerals (black sands) were observed. No clear stratification or graded bedding were visible in outcrops. Also no bank overfill material was encountered on top of the alluvial terrace material.

An abandoned 45m by 30m gravel pit (138 masl) had been surveyed and sampled (pit floor and walls) but sampling did not return anomalous gold values. Other samples were also collected from the top 30 cm of the alluvial material present on different terraces (150 masl, 145 masl, 138 masl) and assayed by using the fire assay method but no important gold values were returned (up to 0.008 ppm gold, <0.005 ppm platinum, <0.001 ppm palladium). In an effort to double check these assay results and at the same time in a quest to verify the presence of micron gold two pulps were further analyzed by using an accelerated cyanide leach method but results were not satisfactory (less than 0.01 ppm gold).

7. Discussion and Conclusions

The Lower Lillooet River valley is a wide U-shaped valley carved by the bulldozing action of Pleistocene glaciers. It is the writer's opinion that the thick sequence of alluvium existent on the Monte Cristo claims represents a valley-fill sequence.

The Lower Lillooet River history and stratigraphy is less known than the geologic evolution and the architecture of the alluvial and volcanic deposits of the Upper Lillooet River. The reason being that the latter is well known and feared for its natural hazards represented by devastating landslides and debris flow events – the August 2010 Mount Meager landslide was the second largest recorded in the known British Columbia history and resulted in the creation of a natural dam on the Upper Lillooet River.

The writer considers that it is important to understand the geologic history of the Lillooet River as a whole and that of its lower part in particular in order to be able to assess the precious metals potential of its placers.

According to S. Tribe (2002) geological constrains point to the Lillooet River being of Pliocene to Miocene age. The river is following the trace of the late Cretaceous Owl Creek, Fire Creek and Lake Harrison faults and therefore it postdates them. At the same time the lower part of the river cuts through 2,000m of a Miocene granodiorite stock - the Rogers Creek Intrusive Complex - located some 20 km south of the Lillooet Lake which suggests a younger maximum age. A minimum Quaternary age is based on its glacial deposits. All mineral deposits and mineralization located at the present day or former headwaters and which are older than the river's minimum age have contributed to the

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precious metals content of its alluvial deposits of both the Upper and the Lower Lillooet River.

A distinction has to be made in between the upper and lower parts of the river because the Upper Lillooet River is separated by the Lower Lillooet River by a delta and the 25 km in length Lillooet Lake. From a sedimentologic point of view the lake acts like a buffer zone in between the two rivers that bear the same name but are so different at the same time. The geologically-recent unconsolidated volcanic terrains of the Upper Lillooet River are easily moved downslope and downriver by gravity with the coarser fractions being deposited closer to the source while finer fractions are being deposited in the delta and/or the Lillooet Lake. The silt that is being carried down by the Upper Lillooet River imparts Lillooet Lake its emerald color. It should also be mentioned that presumed volcaniclastic layers of sediments have been identified at the bottom of the lake by seismic surveys (Friele, 2004).

As the Lower Lillooet River starts at the south end of the Lillooet Lake at least part of the fine fraction that is carried down by the river is derived from the finer fraction that had been either deposited in the lake or is still in suspension in the lake's waters. It should also be be noted that the river is emerald in color due to the glacial silt sourced at the headwaters of the Upper Lillooet River. Therefore the fine gold (if any) derived from the volcanic terrains of the Upper Lillooet River would end up in the lake and at least part of it in the alluvial deposits of the Lower Lillooet River. This could be one of the possible sources of fine or micron gold that was previously reported as present in the alluvial deposits of the Lower Lillooet River.

Field observations linked the overly silty waters of the Lower Lillooet River with landslides and debris flow events happening in the Upper Lillooet River (as distant echoes). These kinds of events could create 'pulses' that would generate larger than usual silt movements down the Lower Lillooet River and could be possibly identified in the field by layers of silt in alluvial sequences that would present an upward coarsening as the river gets to its normal regime afterwards. They could represent a prospecting target for determining the fine gold content if any of the silt derived from the volcanic terrains of the Upper Lillooet River.

The so-called alluvial 'micron gold' of the 1970 reports could also have another origin – it could be the result of hydrothermal activity on the deep faults (Fire Creek Fault for the Lower Lillooet River) that underlie the region and which are paralleled or their surface trace is followed by the present day Lillooet River. Hot saline fluids (meteoric or metamorphic) that circulate on the deep seated faults could take into solutions and carry to surface a whole load of metals including precious metals. In this respect it is symptomatic that the so-called 'micron gold' was first described as occurring in the Lower

 !≥≥•≥≥≠•Æ¥ 2•∞Ø≤¥ ØÆ ¥®• -ØÆ¥• #≤©≥¥Ø 0¨°£•≤ 0≤Ø™•£¥ 0°ß•
 Lillooet River alluvium next to the Skookumchuck hot springs on the Monte Cristo's east bank claims.

In many circumstances the glacial till represents another source of fine gold and in the case of the Lower Lillooet River an important part of the thick pile of alluvium is represented by till that was reworked by streams and the ancient Lillooet River. While glacial gold is generally low grade whenever concentrated by streams it could form economic accumulations of gold and other precious metals.

The presence of the fine or micron gold on the west bank of the Monte Cristo placer claims has yet to be confirmed but it is the coarse gold values that attracted the company's attention to these possible economic gold placer deposits.

Considering the short stretch of river (12 km) in between the Monte Cristo placer claims and the southern tip of the lake where the river originates it is very likely that the coarse gold is local and derived from the drainage basin of this part of the river. There are numerous precious metals prospects in the neighbourhood (e.g. AR29877 mentions that 'fine angular free gold could also be panned from parts of the shear zone' and the gossans are carrying 5 g/t to 13 g/t gold) but in order to have economic accumulations of gold it is necessary that a large mineralized orebody exists upstream of the claims. In this respect two different mineralized areas have to be mentioned: the Tuwasus Creek and the Rogers Creek.

According to aforementioned assessment reports the Tuwasus Creek located 6 km upstream of Monte Cristo seems to hold economic accumulations of gold and platinum group metals in its black sands. The creek which is a Lower Lillooet River tributary could be a contributor to Monte Cristo's alluvial precious metals.

Another important source of gold is represented by large occurrences of porphyry style copper-gold-molybdenum mineralization located on the Rogers Creek. The creek is another of the river's tributary and is located a mere 2.5 km upstream of the Monte Cristo placer claims.

As visible gold was discovered on the lowest benches at Monte Cristo while no significant assays were obtained by sampling the higher elevation terraces of the west bank it is possible that the lowest terraces (including the 127 masl floodplain) would be more productive in terms of gold content than the higher elevation benches. A possible explanation could be that coarse gold is located in the most recent alluvial deposits only because the alluvium on the older/higher elevation benches represents glacial outwash material and till that was reworked by water, and therefore it is poorer. Also to be considered the fact that the bulldozing action of the glaciers along this wide valley created conditions for the removal and dilution of any gold and platinum placers that

 !≥≥•≥≥≠•Æ¥ 2•∞Ø≤¥ ØÆ ¥®• -ØÆ¥• #≤©≥¥Ø 0¨°£•≤ 0≤Ø™•£¥ 0°ß•
 could have existed and formed before the advent of the latest bout of glaciation. Therefore the only concentrations of precious metals in placers that we can find are Holocene – i.e. the most recent ones - which are located on the youngest/lowest elevation benches.

In conclusion the results of the 2012 and 2014 prospecting surveys as well as literature search and the interpretation of available geological data point to the fact that the Monte Cristo placer tenements have the potential to host precious metals in certain stratigraphic levels or fluvial terraces of the Lower Lillooet River.

Field results point to the fact that fine gold is not ubiquitous and has no uniform distribution throughout the thick pile of alluvial sediments of the Lower Lillooet River. Nevertheless the presence of coarse gold on the lower terraces of the river as resulted from the previous work on the claims and mentioned in historic documents indicate that possible economic accumulations of gold exist with gold most likely derived from local sources.

8. Recommended Work

Further exploration work is warranted on the Monte Cristo placer property. It is recommended to undertake a more detailed geological and sampling survey.

It is also recommended to undertake a more detailed geological and sampling survey that would clarify the Lower Lillooet River's alluvial stratigraphy and gold (and possible platinum) distribution as well as the gold balance and particle size distribution. Areas of interest would be delineated and bulk sampled or outright mined to provide funds for the development of the placer claims.

Attention has to be directed towards elucidating the fine gold conundrum and sampling has to be carried out in accordance with the aforementioned theories.

The possibility of developing commercial gravel pits that would serve the needs of the region's road builders, which includes the British Columbia Ministry of Transportation, would also have to be taken into consideration.

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 9. Cost Statement

Salaries:

Dan Oancea PGeo:

- 2.0 Days Fieldwork @ $525/day...... $1,050.0

Truck rental:

- 2.0 Days ...... $271.64

Gas: ...... $156.78

Accommodation:

- 1.0 Days ...... $100.57

Food:

- 2.0 Days @ $50/day...... $100.00

Analytical (ALS Chemex):

- 8 Sand Samples...... $363.86

Report Cost:

Dan Oancea PGeo

- 2.0 Days @ $500/day...... $1,000.0

TOTAL $3,042.85

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 10. References

1. Assessment Reports: 2589, 27667, 27668, 29814, 29877;

2. Geomorphic Evidence for Tertiary Drainage Networks in the Southern Coast Mountains, British Columbia in Geological Survey of Canada, 2002-A13 by Selina Tribe;

3. Gold: Its Occurrence and Extraction by A.G. Warnford Lock, 1882;

4. In-SHUCK-ch and Harrison West Forest Service Road Improvements and Benefits by Crane Management Consultants Ltd., 2010 ;

5. Impact of a Quaternary Volcano on Holocene Sedimentation in Lillooet River Valley, British Columbia by P.A. Friele et al, 2005

 Minfile 092GNE002, 092GNE010, 092GNE011, 092GNE013; 092GNE019, 092GNE026, 092GNE040;

7. Technical Report on the Miocene Metals Ltd 's Cu-Au-Mo Properties, Southwestern British Columbia, Canada by Barry McDonough, April 2011.

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 11. Statement of Qualifications

I, Dan V. Oancea, of 507-1148 Heffley Crescent, Coquitlam do hereby certify that:

1. I am a registered Professional Geoscientist in the Province of British Columbia, Canada and a Fellow of the Geological Association of Canada.

2. I have a B.Sc. degree in Geological Engineering and Geophysics from Babes-Bolyai University of Cluj-Napoca, Romania, which I graduated in 1987.

3. I have practised my profession for 15 years.

4. As a result of my experience and qualification I am a Qualified Person as defined in National Instrument 43-101.

5. I have authored this report which is based upon review and compilation of data relating to Monte Cristo placer property and upon personal knowledge of the property gained from on-site survey work carried out in April 22-23, 2014.

6. I do not own interest in the Monte Cristo placer property.

Vancouver, Respectfully submitted

August 1, 2014 Dan V. Oancea PGeo

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 Table 2 – Monte Cristo Important Locations and Samples

Station Sample Elevation UTM E UTM N Description No. 111 - 136 masl 540699 5534418 On the FSR** - 135masl alluvial bench 113 - 123 masl 541076 5533803 At the FSR** eastward spur road crossroad 114 - 121 masl 541266 5533872 On spur road - floodplain 116 - 121 masl 541103 5534346 End of spur road on the floodplain 123 - 134 masl 540094 5535146 Km 46 on the FSR** 126 - 136 masl 540056 5535091 Alluvial bench 129 MC-14-01 149 masl 540088 5535062 Alluvial material sample 132 - 149 masl 540254 5534861 On the FSR** alluvial bench 133 - 148 masl 540285 5534891 E edge/riser of the 148masl bench 136 - 143 masl 540416 5534825 E edge/riser of the 148masl bench 138 - 147 masl 540324 5534725 On the 148masl bench W of FSR** 139 MC-14-02 149 masl 540299 5534797 Alluvial material sample 142 - 140 masl 540787 5534475 On the E edge/riser of the 140masl bench 146 - 137 masl 540875 5534353 On the E edge/riser of the 140masl bench 149 MC-14-03 134 masl 540935 5534227 Alluvial material sample on the 140masl bench 150 - 135 masl 540979 5534209 On the E edge/riser of the 140masl bench 153 MC-14-04 143 masl 540785 5534321 Alluvial material sample 154 - 143 masl 540840 5534272 Old gravel pit 157 MC-14-05 138 masl 540816 5534236 Alluvial material sample of the west old gravel pit wall 157 MC-14-06 127 masl 541006 5534021 Alluvial material sample of the old gravel pit floor 158 - 127 masl 541007 5534021 On the 127 masl alluvial bench – FSR** crossroad with old westward spur road

*UTM Zone 10 NAD 83

** FSR is the in-SHUCK-ch forestry road

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APPENDIX 1

ALS CHEMEX ANALYTICAL CERTIFICATE & CHEMICAL PROCEDURES

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ALS USA Inc. To: NORTH BAY RESOURCES Page 1 of 1

4977 Energy Way 2120 BETHEL ROAD Reno NV 89502 LANSDALE PA 19446 Phone: 775 356 5395 Fax: 775 355 0179 www.alsglobal.com

INVOICE NUMBER 3127929

ANALYSED FOR UNIT BILLING INFORMATION QUANTITY CODE - DESCRIPTION PRICE TOTAL 1 BAT-01 Administration Fee 26.45 26.45 Certificate: VA14065219 6 LOG-22 Sample login - Rcd w/o BarCode 1.20 7.20 Sample Type: Other 6 PUL-21 Pulverize entire sample 9.80 58.80 Account: NORBAY 6 PGM-ICP24 Pt, Pd, Au 50g FA ICP 22.05 132.30 Date: 7-MAY-2014 6 BAG-01 Bulk Master for Storage 1.20 7.20 7.54 CRU-31 Weight Charge (kg) - Fine crushing - 70% <2mm 0.43 3.24 Project: Monte Cristo 6 CRU-31 Fine crushing - 70% <2mm 2.65 15.90 P.O. No.: Quote: Terms: Due on Receipt C3 Comments:

SUBTOTAL (USD) $ 251.09

______To: NORTH BAY RESOURCES TOTAL PAYABLE (USD) $ 251.09 ATTN: P. LEOPOLD 2120 BETHEL ROAD LANSDALE PA 19446

Payment may be made by: Check or Bank Transfer

Beneficiary Name: ALS USA Inc. Bank: Royal Bank of Canada SWIFT: ROYCCAT2 Please Remit Payments To : Address: Vancouver BC CAN Account: 003-00010-4001384 ALS USA Inc For transfers from USA banks use Intermediate Bank 4977 Energy Way Intermediary Bank: JP Morgan Chase Bank Intermediary Address: New York, NY, USA Intermediary Routing: ABA: 021000021 ALS USA Inc. To: NORTH BAY RESOURCES Page: 1 4977 Energy Way 2120 BETHEL ROAD Total # Pages: 2 (A) Reno NV 89502 LANSDALE PA 19446 Plus Appendix Pages Phone: 775 356 5395 Fax: 775 355 0179 www.alsglobal.com Finalized Date: 7-MAY-2014 Account: NORBAY

CERTIFICATE VA14065219 SAMPLE PREPARATION ALS CODE DESCRIPTION Project: Monte Cristo WEI-21 Received Sample Weight BAG-01 Bulk Master for Storage This report is for 6 Other samples submitted to our lab in Vancouver, BC, Canada on CRU-QC Crushing QC Test 1-MAY-2014. PUL-QC Pulverizing QC Test LOG-22 Sample login - Rcd w/o BarCode The following have access to data associated with this certificate: PUL-21 Pulverize entire sample P. LEOPOLD PERRY LEOPOLD DAN OANCEA CRU-31 Fine crushing - 70% <2mm

ANALYTICAL PROCEDURES ALS CODE DESCRIPTION INSTRUMENT PGM-ICP24 Pt, Pd, Au 50g FA ICP ICP-AES

To: NORTH BAY RESOURCES ATTN: DAN OANCEA 2120 BETHEL ROAD LANSDALE PA 19446

This is the Final Report and supersedes any preliminary report with this certificate number. Results apply to samples as submitted. All pages of this report have been checked and approved for release. Signature: ***** See Appendix Page for comments regarding this certificate ***** Colin Ramshaw, Vancouver Laboratory Manager ALS USA Inc. To: NORTH BAY RESOURCES Page: 2 - A 4977 Energy Way 2120 BETHEL ROAD Total # Pages: 2 (A) Reno NV 89502 LANSDALE PA 19446 Plus Appendix Pages Phone: 775 356 5395 Fax: 775 355 0179 www.alsglobal.com Finalized Date: 7-MAY-2014 Account: NORBAY Project: Monte Cristo CERTIFICATE OF ANALYSIS VA14065219

Method WEI-21 PGM-ICP24 PGM-ICP24 PGM-ICP24 Analyte Recvd Wt. Au Pt Pd Units kg ppm ppm ppm Sample Description LOR 0.02 0.001 0.005 0.001

MC-14-01 1.36 0.005 <0.005 <0.001 MC-14-02 1.34 0.002 <0.005 <0.001 MC-14-03 0.72 0.003 <0.005 0.001 MC-14-04 1.46 0.001 <0.005 <0.001 MC-14-05 1.40 0.003 <0.005 <0.001 MC-14-06 1.26 0.008 <0.005 <0.001

***** See Appendix Page for comments regarding this certificate ***** ALS USA Inc. To: NORTH BAY RESOURCES Page: Appendix 1 4977 Energy Way 2120 BETHEL ROAD Total # Appendix Pages: 1 Reno NV 89502 LANSDALE PA 19446 Finalized Date: 7-MAY-2014 Phone: 775 356 5395 Fax: 775 355 0179 www.alsglobal.com Account: NORBAY

Project: Monte Cristo CERTIFICATE OF ANALYSIS VA14065219

CERTIFICATE COMMENTS

LABORATORY ADDRESSES Processed at ALS Vancouver located at 2103 Dollarton Hwy, North Vancouver, BC, Canada. Applies to Method: BAG-01 CRU-31 CRU-QC LOG-22 PGM-ICP24 PUL-21 PUL-QC WEI-21 ALS Canada Ltd. To: NORTH BAY RESOURCES Page 1 of 1

2103 Dollarton Hwy 2120 BETHEL ROAD North Vancouver BC V7H 0A7 LANSDALE PA Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com USA

INVOICE NUMBER 3136366

ANALYSED FOR UNIT BILLING INFORMATION QUANTITY CODE - DESCRIPTION PRICE TOTAL 1 BAT-01 Administration Fee 33.10 33.10 Certificate: VA14068046 2 Au-AA15 Assay Tabs/LeachWELL TM Ore Grade CN-Au 37.15 74.30 Sample Type: Other Account: NOBARE Date: 26-MAY-2014 Project: Monte Cristo P.O. No.: Quote: Terms: Due on Receipt C3 Comments:

SUBTOTAL (CAD) $ 107.40

R100938885 GST $ 5.37 To: NORTH BAY RESOURCES ______ATTN: PERRY LEOPOLD TOTAL PAYABLE (CAD) $ 112.77 2120 BETHEL ROAD LANSDALE PA USA Payment may be made by: Cheque or Bank Transfer

Beneficiary Name: ALS Canada Ltd. Bank: Royal Bank of Canada SWIFT: ROYCCAT2 Please Remit Payments To : Address: Vancouver, BC, CAN Account: 003-00010-1001098 ALS Canada Ltd. Please send payment info to [email protected] 2103 Dollarton Hwy North Vancouver BC V7H 0A7 Canada ALS Canada Ltd. To: NORTH BAY RESOURCES Page: 1 2103 Dollarton Hwy 2120 BETHEL ROAD Total # Pages: 2 (A) North Vancouver BC V7H 0A7 LANSDALE PA Plus Appendix Pages Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com USA Finalized Date: 26-MAY-2014 This copy reported on 27-MAY-2014 Account: NOBARE

CERTIFICATE VA14068046 SAMPLE PREPARATION ALS CODE DESCRIPTION Project: Monte Cristo FND-02 Find Sample for Addn Analysis

This report is for 2 Other samples submitted to our lab in Vancouver, BC, Canada on ANALYTICAL PROCEDURES 13-MAY-2014. ALS CODE DESCRIPTION INSTRUMENT The following have access to data associated with this certificate: Au-AA15 Assay Tabs/LeachWELL TM Ore Grade CN-Au AAS PERRY LEOPOLD P. LEOPOLD DAN OANCEA

To: NORTH BAY RESOURCES ATTN: DAN OANCEA 2120 BETHEL ROAD LANSDALE PA USA

This is the Final Report and supersedes any preliminary report with this certificate number. Results apply to samples as submitted. All pages of this report have been checked and approved for release. Signature: ***** See Appendix Page for comments regarding this certificate ***** Cameron Brosnan, Laboratory Manager, Perth ALS Canada Ltd. To: NORTH BAY RESOURCES Page: 2 - A 2103 Dollarton Hwy 2120 BETHEL ROAD Total # Pages: 2 (A) North Vancouver BC V7H 0A7 LANSDALE PA Plus Appendix Pages Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com USA Finalized Date: 26-MAY-2014 Account: NOBARE Project: Monte Cristo CERTIFICATE OF ANALYSIS VA14068046

Method Au-AA15 Analyte Au Units ppm Sample Description LOR 0.01

MC-14-03 0.01 MC-14-05 <0.01

***** See Appendix Page for comments regarding this certificate ***** ALS Canada Ltd. To: NORTH BAY RESOURCES Page: Appendix 1 2103 Dollarton Hwy 2120 BETHEL ROAD Total # Appendix Pages: 1 North Vancouver BC V7H 0A7 LANSDALE PA Finalized Date: 26-MAY-2014 Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com USA Account: NOBARE

Project: Monte Cristo CERTIFICATE OF ANALYSIS VA14068046

CERTIFICATE COMMENTS

LABORATORY ADDRESSES Processed at ALS Perth located at 32 Oxleigh Drive, Malaga, Perth, WA, Australia. Applies to Method: Au-AA15

Processed at ALS Vancouver located at 2103 Dollarton Hwy, North Vancouver, BC, Canada. Applies to Method: FND-02 Fire Assay Procedure

PGM- ICP23 and PGM- ICP24 Precious Metals Analysis Methods

Sample Decomposition:

Fire Assay Fusion (FA-FUSPG1, FA-FUSPG2)

Analytical Method:

Inductively Coupled Plasma – Atomic Emission Spectrometry (ICP-AES)

A prepared sample (30 – 50 g) is fused with a mixture of lead oxide, sodium carbonate, borax and silica, inquarted with 6 mg of gold-free silver and then cupelled to yield a precious metal bead. The bead is digested for 2 minutes at high power by microwave in dilute nitric acid. The solution is cooled and hydrochloric acid is added. The solution is digested for an additional 2 minutes at half power by microwave. The digested solution is then cooled, diluted to 4 mL with 2 % hydrochloric acid, homogenized and then analyzed for gold, platinum and palladium by inductively coupled plasma – atomic emission spectrometry.

Sample Default Method Lower Upper Element Symbol Units Mass Overlimit Code Limit Limit (g) Method

PGM- Gold Au ppm 30 0.001 10 Au-GRA21 ICP23

PGM- Platinum Pt ppm 30 0.005 10 PGM-ICP27 ICP23

PGM- Palladium Pd ppm 30 0.001 10 PGM-ICP27 ICP23

PGM- Gold Au ppm 50 0.001 10 Au-GRA21 ICP24

PGM- Platinum Pt ppm 50 0.005 10 PGM-ICP27 ICP24

PGM- Palladium Pd ppm 50 0.001 10 PGM-ICP27 ICP24

Revision 03.01 Oct 04, 2005 Fire Assay Procedure

Revision 03.01 Oct 04, 2005 The Au-AA15 analytical method is gold by accelerated cyanide leach by using LeachWELL Assay Tabs with AAS finish method. The method is similar to the Au-AA13 for which a method description has been attached except for the facts that it analyzes larger samples (1kg to 3kg nominal samples weight) and the gold detection range is 0.01ppm to 300ppm.

LeachWELL™60X is a reagent grade catalyst formulated for fast cyanide leach gold assaying. When used with 5% cyanide the dissolution rate of gold, copper and silver is increased more than sixty fold. Poor reproducibility (scatter) when coarse gold is present is minimized - meaningful results can be consistently produced.

2014 Assessment Report on the Monte Cristo Placer Project Page 20 ASSAY PROCEDURE Au-AA13, Ag-AA13, Cu-AA13

GOLD, SILVER AND COPPER BY CYANIDE LEACH

SAMPLE DECOMPOSITION Cyanide Leach (GEO-CN04/a/b)

ANALYTICAL METHOD Atomic Absorption Spectroscopy (AAS) A prepared sample is weighed into a closed 100 mL plastic vessel. To which, a sodium cyanide solution (0.25% NaCN/0.05% NaOH) is added. The sample is immediately shaken until homogenized, and rolled for DQDGGLWLRQDOKRXU$QDOLTXRWRIWKH˂QDOOHDFKVROXWLRQLVFHQWULIXJHGWKHQDQDO\]HGE\DWRPLFDEVRUSWLRQ spectrometry with background correction.

METHOD SAMPLE CN SOLUTIONS ELEMENT SYMBOL UNITS LOWER LIMIT UPPER LIMIT CODE WEIGHT (G) VOLUME (ML)

Au-AA13 Gold Au ppm 30 60 0.03 50

Au-AA13a Gold Au ppm 10 20 0.03 50

Au-AA13b Gold Au ppm 5 10 0.03 500

Ag-AA13 Silver Ag ppm 30 60 0.03 350

Cu-AA13 Copper Cu ppm 30 60 0.1 2,000

REVISION 04.02 | FEB 06, 2008 WWW.ALSGLOBAL.COM