53C11SW2005 2.23023 PAKEAGAMA LAKE 010

SAMPLING AND ASSAYING EXPLORATION PROGRAMME on the PAKEAGAMA LAKE RARE EARTH PEGMATITE Red Lake Mining Division NTS 53C/1 i (52"36*30"N: 93*24© Wi. Ontario for Houston Lake Mining Inc.

RECEIVED FEB 202002 GEOSCIENCE ASSESSMENT OFFICE

K ft-W- R. Ken Gcrmundsom PhD in Geology February 18, 2001 Member: Association of Geoscientists of Ontario E. Gravme Anthony, BSc in Geology P. Geo., J. G. A, C., M. B. A., President of Houston Lake Mining Inc. TABLE OF CONTENTS

SUMMARY 1 INTRODUCTION AND TERMS OF REFERENCE 5 ACKNOWLEDGEMENTS 5 PROPERTY DESCRIPTION, LOCATION AND ACCESSIBILITY 8 MINING CLAIMS SUMMARY 9 CLIMATE, LOCAL RESOURCES AND PHYSIOGRAPHY 11 HISTORY 12 GEOLOGICAL SETTING 13 REGIONAL GEOLOGY 13 PAKEAGAMA LAKE PLUTON 15 HOLMQUISTITE GRANITE 15 PAKEAGAMA LAKE PEGMATITE 17 Wall Zone 17 North Wall Zone 19 South Wall zone 19 Core Zone 19 Stacked Aplite Zone 20 K-Feldspar-Spodumene-Quartz Zone 20 Aplite Dikes 21 DEPOSIT TYPES 22 Rare Element Pegmatites 23 Internal Structure of Pegmatites 26 Mineral indicators of Rare Metal Mineralization 26 Geochemical Trends 27 Ore Deposits 27 MINERALIZATION 29 EXPLORATION 31 North Wall Zone 32 South Wall Zone 37 Core Zone 38 Stacked Aplite Zone 39 K-Feldspar-Spodumene-Quartz Zone 42 Aplite Dikes 42 Holmquistite Granite 43 INTERPRETATION AND CONCLUSIONS 45 RECOMMENDATIONS 47 PROPOSED BUDGET FOR 2002 48 ASSESSMENT EXPENSES 49 APPENDIX 50 Metals in the Pakeagama Lake Pegmatite 51 Tantalum 51 Niobium 54 Gallium 55 Rubidium 56 Cesium 57 Lithium 58 Germanium 59 Tin 59 Beryllium 59 Thallium 59

REFERENCES AND SELECTED BIBLIOGRAPHY 61 CERTIFICATE 63,64

FIGURES 1- Geology and Principal Minerals of Ontario (Location) 6 2- Ontario Road Map (Location) l 3- Pakeagama Lake: Claims 10 4- Regional Setting of the Pakeagama Lake Pegmatite 14 5- Local Geology and Claims 16 6- Detailed Geology of the Pakeagama Lake Pegmatite 18

TABLES 1 -The four classes of granitic pegmatite 22

2- Classification of pegmatites of rare earth class 23

3-The three families of rare-element pegmatites 24

4-Production reserves of some pegmatite deposits 28

5- Geochemical check analyses, channels 1 and 2 XRAL Laboratories. (North Wall Zone) 33

6- Geochemical analyses for channels 1 and 2 samples Activation Labs. (North Wall Zone) 35

7- North Wall Zone assay results (Ontario Geological Survey). 36

8- Geochemical analyses of samples collected from channels 5, 6 and 7 (Activation Labs.) (South Wall Zone) 20

9- Stacked Aplite Zone assay results (Channel 14, figure 6) Ontario Geological Survey 39 10- Stacked Aplite - Geochemical analyses Activation Laboratories 40

11- Feldspar-Spodumene Quartz Zone and Aplite Dikes Activation Laboratories 42

12- Holmquistite Granite, Activation Labs 44 l SAMPLING AND ASSAYING EXPLORATION PROGRAMME on the PAKEAGAMA LAKE RARE EARTH PEGMATITE Red Lake Mining Division NTS 53C/11 f52"36©30"N: 93*24*WK Ontario for Houston Lake Mining Inc.

SUMMARY The Pakeagama Lake Property of Houston Lake Mining Inc. is located 160 kilometres north of Red Lake, Ontario and is in the Red Lake Mining Division. Three claims, KRL 1166872 and KRL 123441 and 1233616, each composed of 16 claim units or 256 hectares, make up the property. Claim KRL 1232441 is IQQP/o owned by Houston Lake Mining Inc; KRL 1166872 is under option from John Gregory Brady of Sudbury, Ontario. Houston Lake Mining Inc has the right of first refusal on claim 1233617, which is held by Emerald Fields Resources Corporation. All are subject to a 2 Yz 07o net smelter return. The Pakeagama Lake Pegmatite is located at the boundary between the Berens River and Sachigo Subprovinces of the Canadian Shield. The boundary between the subprovinces is defined by the regionally significant., Bear Head Fault. The fault has controlled the emplacement of the elongate, Pakeagama Lake peraluminous (the aluminum content is greater than the combined content of sodium, potassium and calcium) granite, which is situated within sequences of metavolcanics and metasediments that fie along the fault. The Pakeagama Lake Granite is defined as a fertile granite, that is, the granite is a potential source of the rare earth elements found in the Pegmatite. The Pakeagama Lake Pegmatite is located in the northwesternmost part of the peraluminous granite. It is a complex, petalite subtype pegmatite, which is divided into five distinct zones: Wall, Core, Stacked Aplite, Potassic Pegmatite and K-Feldspar- Spodumene-Quartz zones. The following elements (assay values converted to oxides) occurring in the pegmatite are of interest: * Lithium oxide - 13.9 metres of channel sampling at 4.50+^/0 in the Core Zone (sampling by both Houston Lake Mining Inc. and the Ontario Geological Survey) 2 and 8 metres of L.77% in the Stacked Aplite Zone (sampling by the Ontario Geological Survey). The greatest tantalum oxide (Ta2Os) values in the Stacked Aplite Zone (ranging generally above 130 parts per million and as much as 168 parts per million) tend to be closer to the contact of the zone with either the iron formation or a granitic roof pendant. Tin values tend to follow tantalum values in a rough fashion with a spike of 1259 ppm at the contact with the iron formation and another spike of 2044 ppm at the contact with the granitic roof pendant. The Ontario Geological Survey collected 11 one-metre long channel samples from the North Wall Zone during their study of the Pakeagama Pegmatite. During the present study, a duplicate and parallel sample was cut immediately adjacent to that one cut by the OGS. Comparison results for the average tantalum oxide and cesium oxide content are as follows. Ont. Geol, Survey 285g7t Ta2O5 and 967g7t Cs2O Houston Lake - from Activation Labs 172g7t Ta2O5 and 933g7t CsjO XRAL Labs - check on Activation Labs 182g7t Ta2O5 and 930g7t Cs2O Although cesium oxide values compare favourably between the laboratories, the XRAL and Activation results for tantalum oxide are considerably lower than those obtained by the Ontario Geological Survey. The tantalum oxide values are significant when the collective economic impact of all the rare earth elements contained in the Pakeagama Pegmatite is considered. Other tantalum areas not tested include: a) late sodic metasomatism in the form of late replacement bodies less than a metre thick assay between 500 and 600 ppm Ta2Oj (OGS) occur in the North Wall Zone; b) a tantalum-bearing aplite to 30 cm thick is present about 300 metres east of the the pegmatite on the shore of Pakeagama Lake assayed 600 and 700 ppm Ta2O3 (OGS). Berylfiuin, as beryl (semi-translucent to transparent, porpyritic crystals of goshenite and morganite), occurs in values up to 1060 ppm. Rubidium concentrations in the two feldspar-rich zones reach as high as t.1% (OGS) and were not evaluated in the present work. Overall cesium oxide content averaging 883 ppm in two channels of the North Wall Zone. * A 160 metre long cesium anomaly has been outlined in a holmquistite (lithium- bearing mineral) granite that parallels the pegmatite along its southwest flank. A pollucite-bearing (cesium mineral) dike is present within the anomaly in the granite. During the period May to July, 2001,an exploration programme of line cutting, ground geophysics, overburden removal and channel and chip sampling was carried out on the Pakeagama Lake Property of Houston Lake Mining Inc. This report describes the work undertaken on the Pakeagama Pegmatite, which includes the channel sampling and geochemical (assay) results for the associated minerals (for instance: tantalum, cesium, rubidium, gallium tin, thorium, germanium and niobium). The Core Zone samples were assayed for lithium alone. The check assays (North Wall Zone) by XRAL included lithium and strontium. The Ontario Geological Survey has previously carried out detailed studies of the Pakeagama Pegmatite. G. Anthony, P. Geo., F.G.A.C., President of Houston Lake Mining, Inc., added further perspective in a July, 2000 report. Both parties mapped the pegmatite. The exploration concept, which suggests that the Pakeagama Pegmatite is an important rare earth element-bearing entity is indicated by the following: 1. The high rubidium content of the potassium(K)-feldspars approaches that of the Tanco Pegmatite, l Rb:4.5-5.0 K (versus the average granitic concentration of lRb:250 K indicates that fractional crystallization has been highly effective in concentrating the rare metal content at Pakeagama Lake. 2. Plots of Rb/K ratios to Cs from Pakeagama Lake fall within the Bernic Lake field, which contains the Tanco pegmatite. 3. "The detailed documentation of 7 varieties of tantalum minerals and a high concentration of tantalum relative to niobium (Ta:Nb averages 3: l compared to a crustal abundance of l: 11.4) as shown by electron microprobe studies reported by the OGS. This coupled with the presence of pollucite renders the Pakeagama Lake pegmatite and adjoining area one of the best exploration targets for tantalum and cesium in northwestern Ontario" (F. Breaks, A. Tindle, and S. Smith, 1999b, p.26-6). 4. "Tourmaline in petalite-subtype pegmatites from the Pakeagama Lake area suggests that the main pegmatite units were little affected by interaction with host rocks (i.e. they crystallized in a closed system). This has implications for concentrating rare-elements such as Rb and Cs, which otherwise would be dispersed throughout pegmatite and host rocks. The potential for a buried pollucite orebody associated with the SE trending pegmatite at Pakeagama Lake increases as a result of these observations (Abstract, tindle et al, 2000, in press). 5. The large size of the Pakeagama Lake Pegmatite (up to 125 metres wide over an exposed strike length of 280 metres combined with the high rare metals content indicates a potential for an economic deposit

Large areas of the Pakeagama Lake Pegmatite were exposed by washing bedrock by the Ontario Geological Survey; and Houston Lake Mining Inc. washed specific and smaller areas. The programmes of sampling and assaying form the bulk of exploration carried out to date. Eighty sk channel samples, each l metre in length, were collected from the Pak eagama Pegmatite using a portable rock-cutting saw. A further 19 samples, each measuring approximately 20 x 6 x 5 centimetres, were collected form the adjacent Holmqiuistite Granite, a lithium/cesium-bearing intrusive that contains a pollucite- bearing dike. The channel samples were collected as follows: l-North Wall Zone: 22. 11 of the samples were a duplicate cut of channelling completed by the OGS. Assaying by Activation Labs with check assaying by XRAL. 2-South Wall Zone 10 Activation Laboratories. Three of the samples are from the Potassic Pegmatite Zone. 3- Stacked Aplite Zone 46 Activation Laboratories. Three or four samples are from the K-Feldspar-Spodu- mene-Quartz Zone. 4- K-Fd-Sodumene-Qtz Zn. 3 Activation Laboratories. 5- Aplite Dikes J* Activation Laboratories. Total 86

ft is concluded that the Pakeagama Lake Pegmatite is shown to contain significant values of rare earth elements in intersections from channel sampling and it warrants further phases of exploration. It is recommended that the next phase of work include further overburden removal so as to define the limits of the pegmatite on surface; and to conduct a first phase, 1000 metre drill programme in order to further evaluate the pegmatite and the relationship of the holmquistite granite to the pegmatite. INTRODUCTION AND TERMS OF REFERENCE R. Ken Germundson, PhD, (consulting geologist) with co-authorship by E. Grayme Anthony, P, Geo., F. G. A. C. (President of Houston Lake Mines Inc.) have written the following report for Houston Lake Mining Inc., 2892 White Street, Val Caron, Ontario P3N IB2. The authors participated personally in the field portion of the exploration programme, which took place between June 25 and July 25, 2001. Report writing and map production was continued during November and part of December, 2001. Some of the back-up data in the report is from detailed studies carried out by Breaks et al, which were published in 1999 under two separate covers. The exploration programme was carried out in order to continue the evaluation of the economic potential of the highly evolved. Pakeagama lake Pegmatite. Conversion factors that were used to obtain oxide values are as follows: Parts per million tantalum x 1.2 = ppm tantalum oxide. Parts per million niobium x l .431 = ppm niobium oxide. Parts per million rubidium x l .09 = ppm rubidium oxide. Parts per million lithium x l 87 ^ ppm lithium oxide. Parts per million cesium x l .060 = ppm cesium oxide.

ACKNOWLEDGEMENTS Previous work carried out by members of the Ontario Geological survey is the foundation for the present work carried out by Houston Lake Mining Inc. Problem Page The original page in this document had a problem when scanned and as a result was unable to convert to Portable Document Format (PDF).

We apologize for the inconvenience.

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TIF_JPG_Conversion_Failure_Bad_Header_MNDM111x1 Figure 2 Houston Lake Mining Inc. Ontario Road Map Location Li*e 8 PROPERTY DESCRIPTION LOCATION AND ACCESSIBILITY The Pakeagama Lake area is located in the Red Lake Mining district of northwestern Ontario (figures l, 2). The National Topographic System map sheet reference is 53C/11, and the claims are approximately centred at 52036©30"N latitude and 93024*W longitude, floatplane access is from Red Lake, which is 180+/- kilometres south of the property. Bear Skin Airways makes scheduled flights into Red Lake. Red Lake is located 170 kilometres north of Vermilion Bay on highway 105. Vermillion Bay, which is situated on the Trans Canada Highway (highway 17), lies between the centres of Dryden and Kenora (figure2). Pakeagama Lake is located in a relatively isolated area of northwestern Ontario. A winter road, which passes within several kilometres from the property, connects Red Lake with the First Nation communities of North Spirit Lake Deer Lake and North Sandy Lake. Another winter road is located within 3 kilometres north of the pegmatite. Bear Skin Airways also services these communities. The property is made up of three claims, each comprising 16 claim units. They are summarized on page 9 and shown on the Claims Map (Figure 3) and the Local Geology Map (Figure 5). Claim KRL 123441 is 100*^ owned by Houston Lake Mining Inc; KRL 1166872 is under option from John Gregory Brady of Sudbury, Ontario; and 1233617 is under a right of first refusal to Houston Lake Mining Inc. All are subject to a 2Y2 "/o net smelter return. Winter road access services native communities in the area, and are within 3.0 kilometres north and about 5 or 6 kilometres south of the Pakeagama Lake Pegmatite. Figures 3, 4, 5 and 6 show the location of the Pakeagama Lake Pegmatite, which is the only known host for (rare earth element) mineralization on the claims. As regarding environmental liabilities, no exploration permits are required for the recommended overburden stripping and drilling programme. The need to look after the general care for and to have concern for the natural environment is implicit. The property is outside of the boundaries of Ontario©s "Land for Life." Mining Lands - Mining Claims Summary, Red Lake - Division 20

Houston Lake Mining Inc. - Pakeagama Lake Property

CIAIM NOMBER: KRIi 1166872 (Click Claim Number for Details) Unit Size: 16 Township/Area: PAKEAGAMA LAKE (G-1842) Lot Description: Staker: BARKAUSKAS, EDWARD ANTHONY (S7082) Recorded Holder: BRADY, JOHN GREGORY ( 100.00 %) (Click Bolder for Details) Recording Date: 2001-Mar-22 One Date: 2003-MAR-22 Work Required; 6400 Total Applied: O Work Performed: O Total Reserve: O (Click Reserve for Details) Present Work Assignment: O Claim Bank: o Claim Status: ACTIVE

CLAIM MOMBER; KR3U 1232441 (Click Claim Number for Details) Unit Size: 16 Township/Area: PAKEAGAMA LAKE (G-18425 Lot Description: Staker: M&RTIN, JAMES ALAN (E31969S Recorded Holder: HODSTOM LAKE MINIKG INC. ( 100.00 %) (Click Bolder for Details) Recording Date: 1998-Jul-30 Doe Date: 2007-JUL-30 Work Required: 6400 Total Applied: 44800 Work Performed: 44980 Total Reserve: 180 (Click Reserve for Details) Present Work Assignment: O Claim Bank: o Claim Status: ACTIVE

CIAIM NUMBER: HKL 1233617 (Click Claim Number for Details) Unit Size: 16 Township/Area: PAKEAGAMA LAKE (G-1842) Lot Description: Staker: Q©TOOLE, JOHN NELSON (E34124! Recorded Holder: BMKRALD FIELDS RESOURCE CORPORATION (IOQ.00%) (Click Bolder for Details) Recording Date: 1999-Feb-23 Due Date: 2002-FEB-23 Work Required: 5240 Total Applied: 7560 Work Performed: 7560 Total Reserve: "oO (Click Reserve for Details) Present Work Assignment: Claim Bank: o Claim Status: ACTIVE to The centra of your map is in: Division: Red Lake Township: PAKEAGAMA LAKE AREA G-Plan: G-1842

Pakeagama Lake Pegmatite

From: Ministry of Northern Development and Mines, Ontario, Web Site

1232441

52" 36© 30

PAKEAGAMA

HOUSTON LAKE MINING INC. Pakeagama Lake Claims Red Lake Mining Division NTS 53C/1 I.Ontario

CJajmsMap: KRL 1166872 and KRL 1232441

l .e Km 11

CLIMATE. LOCAL RESOURCES. INFRASTRUCTURE AND PHYSIOGRAPHY Typically, Pakeagama Lake is within a region having a sub humid mid-boreal climate. Temperature statistics are as follows: * Average mean temperature: -0.9" C. * Daily temperatures in the summer: 8.90 to 19.20 C. * Daily temperatures in the winter: -20.30 to -l l .6" C. A forest boreal, primarily composed of conifers with lesser numbers of deciduous flora, blankets this entire part of northern Ontario. Within the past 15 or 20 years, the Pakeagama Lake Property has been burned over, and a part of the area is covered with deadfall and/or a thick second growth of pine. The terrain, which is cut by a series of cliffs that parallel the strike of the metavolcanic and metasedimentary sequences, is generally gently rolling. The metavolcanic formations form a ridge that rises about 50 metres above the rest of the area. There are no local resources or infrastructure near the property. 12 HISTORY The first geological reconnaissance mapping of the region was undertaken by A. P. Low of the Geological Survey of Canada in 1886. Additional geological surveys were carried out by G, V. Douglas (1925) and M. E. Hurst (1928) of the Ontario Department of Mines. Most of the exploration activity in the region centred on the Favourable and Setting Net Lakes area located 25 to 40 km to the northwest of the property. Prospecting by K. C. Murray in 1927 identified gold-bearing mineralization in the Favourable Lake area. The gold property was developed as the Berens River Mine and produced 4,451 kg Au, 160,926 kg Ag, 2,7701 Pb and 815,147 kg Znfrom 508,665 t of ore between 1939 and 1948 (Stone, 1998). Subsequent exploration by Golsil Mines Limited, Zahavy Mines Limited, Getty Mines Limited and Noramco Mines Ltd. was carried out until the early 1990©s. The "Wynne" gold showing is located on the northern shore of Pakeagama Lake (Figure 5). However, there are no records of any assessment work having been filed from the vicinity of Pakeagama Lake). The Pakeagama Lake area was covered by an airborne reconnaissance gamma-ray spectrometer survey in 1977 as part of a regional coverage program (OGS-GSC, 1979). The survey was flown at a 400-ft elevation with a 5-km line spacing with a 2.2 km station interval. No significant radiometric anomalies were detected in the immediate vicinity of Pakeagama Lake. Geological mapping of portions of the region was carried out by Ayres (1970, 1972a). He noted spodumene in a pegmatite dike and holmquistite within granitic rocks near Setting Net Lake (25 km WNW of Pakeagama Lake). A grab sample from the pegmatite dike returned G.52% Li (Ayres, 1972b). Recent mapping of the region was carried out by D. Stone of the Ontario Geological Survey in 1990 (Stone et al, 1993, Stone, 1998). Tourmaline-rich samples taken from the vicinity of Pakeagama Lake returned anomalous Li, Cs, Ta and Be during this work. Detailed follow-up work was carried out by Breaks et al (1999a) in the vicinity of Pakeagama Lake. Five rare metal mineral occurrences were detected over a 35 km segment of the Bear Head Fault Zone. However, the Pakeagama Lake pegmatite 11 occurrence became the predominant focus of this detailed work and will be discussed further in this report, G. Anthony mapped the pegmatite and adjacent rocks during 1999. Check assays of samples collected by the Ontario Geological Survey were also completed. GEOLOGICAL SETTING REGIONAL GEOLOGY The Pakeagama Lake Pegmatite is located at the boundary between the Berens River and Sachigo Subprovinces of the Archean-age Superior Province of the Canadian Shield. These subprovinces comprise a series of relatively isolated volcano-sedimentary (greenstone) belts surrounded by extensive granitic and gneissic suites of rock (Figure 4). The Favourable Lake greenstone belt lies to the northwest of Pakeagama Lake and North Spirit Lake greenstone belt lies to the southeast of the property (Figure 4). These belts are connected through the Pakeagama Lake area by a major fault (Bearhead Fault) which forms the boundary between the subprovinces. The main assemblages of volcanic and sedimentary rocks that are identified in each belt are, in part, correlated between the two belts. The Bear Head Fault is the dominant structural feature in the region and has been traced for over 140 km from NW-SE. The fault is composed of several hundred metre thick zone of mylonite. The presence of tension gashes in filled by vuggy quartz- epidote-adularia and potassic alteration indicate that brittle deformation has been superimposed on the mylonites. A dextral transcurrent dislocation the Bear Head Fault has been interpreted from microstructures. The regional gneissocity trends NW-SE and generally are steeply dipping inward towards the core of the volcano-sedimentary assemblage in the vicinity of Pakeagama Lake. The assemblages of the Favourable Lake and North Spirit Lake areas are predominantly in greenschist facies of metamorphism. However, a transition to amphibolite facies in the greenstone belts occurs as the Bear Head Fault Zone is approached. Amphibolite facies is the predominant metamorphic grade in the Pakeagama Lake vicinity. The Bear Head Fault Zone is the locus for a peraluminous suite of granitic 14

Pakeagama Late Peraluminous Granite Severn Pera*unwno*u* Granite Undivided Granitic Rocks Metavotcarnc-Metasedimentary Belts Pakeagama Late Pegmatite notjc ""* Major FauK zones

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CD Wc Si \ Figure 4: Regional setting of the Pakeagama Lake Pegmatite \ (After Stone. 1993) 15 plutons. Five major plutons of the two-mica granites (fertile granites) are documented over the 140-kilometre strike length of the fault (Figure 4 depicts the Pakeagama Lake and Severn two- mica/perahiminous granites). Fertile granites are interpreted to be the parental rocks that give rise to rare metal pegmatites (Anthony, 2000). PAKEAGAMA LAKE PLUTON Intrusive rocks of the Pakeagama Lake pluton are composed of foliated, coarse- grained to pegmatitic muscovrte-biotite granite. The pluton is peraluminous - that is, the molecular proportion of alumina exceeds the combined proportion of soda, potash and lime. It is elongate and is 2 to 3 kilometres wide by 15 kilometres long. The stock was intruded adjacent to the Bear River regional fault system, which separates the Berens River and Sachigo subprovinces of the Canadian Shield (figure 4, 5). The Pakeagama Lake pluton has intruded into the volcano-sedimentary assemb lages, and therefore is completelely flanked by the assemblages, at least on the surface. The pluton expresses a weak to moderate foliation and lineation and is medium to coarse- grained. A transition from dominantly biotitic to increasingly muscovitic granite occurs from southeast to northwest along the length of the pluton, and in the vicinity of the Pakeagama Pegmatite, it is classified as being two-mica in composition. HOLMQUISTITE GRANITE The granite contains holmquistite, which is a prism forming, monoclinic, lithium variety of glaucophane (an amphibole) having the following chemical formula: Li2 (Mg, Fe)a Al2 Sig 032 (OH, F)j. It is bluish-black in colour (figure 5). The granite has a granoblastic texture with a particular preferred fabric. The holmquistite crystals, which make up as much as 2 to 5^b of the granite, are wispy, elongate to acicular, from 5mm to 2cm in length and are discordant to the trend of the granoblastic texture indicating that the holmquistite and anomalous elements were introduced after the emplacement and metamorphism of the granite. The granite may re present a roof pendant lying above pegmatite. From: Ontano Geological Survey Map P 3224 Whiteloon Lake

HOUSTON LAKE MINING INC PAKEAGAMA LAKE PROPERTY (NTS 53C/11 ) RED LAKE MINING DISTRICT, N W ONTARIO Local Geology and Claims R Ken Gerniundson November, 2001 O 1 2km

20 Bear Head FauR Zone N 15g Gneissic Granodiorite to Granite 15BLC-P GranodKmte to gramte. dikes pegmatite 13 Pakeagama U*e Pluton PP PakHMHAaM (open to Vw norihwnt and ttw souVvmct 12 TonaMe to Granodnnte

*5 Uaic Voicarac Rocks w*i abundant Banded Iran Formation )7 Ualai*dirertoyRociBWilhto*Mhoo Formation II PAKEAGAMA LAKE PEGMATITE The Pakeagama Lake Pegmatite is rare-element bearing and was emplaced as one of the latest occurring phases of the Pakeagama Lake pluton. It is totally located within the northwestern end of the pluton. The pegmatite complex is exposed in a northwest- southeast direction for a distance of 280 metres, and is open in both directions. The width of the pegmatite complex varies between 30 and 125 metres, and it is divided into five separate zones (Figure 6). According to Anthony (2000) The currently known dimensions of the Pakeagama Lake pegmatite are largely contained within the confines of the Pakeagama Lake granitic pluton. Five prominent pegmatite zones have been depicted during the course of geological mapping which confirms earlier Ontario Geological Survey work (F. Breaks, A. Tindle, and S. Smith, 1999a). From northeast to southwest and perpendicular to the strike of the pegmatite the zones include a Stacked Aplite Zone, a KfekJspar-Petalite Zone, an intermediate Potassic Pegmatite Zone, a Spodumene-Quartz Core Zone and a Wall Zone." Wall Zone There are two sections of wall zone exposed in the southeastern part of the pegmatite exposures. The spodumene-quartz core zone, the potassic pegmatite or a relatively small remnant of granite, separates them from each other. The zones are open towards the southeast where the bedrock is covered by a variety of Pleistocene and Recent overburden. The south Wall zone is also opn towards the northwest. Anthony (2000) reported that: "The Wall Zone is composed of 70 to SO1?*) whitish to greyish quartz crystals with aggregates up to 10 cm. in size, 5 to 1007o blocky K-feldspar that may attain 25 cm. in diameter, 5 to locally IQ©fa deep blue, recessive-weathering and elongate fluorapatite crystals to 4 cm. in length, 3 to SVi patches of a mauve lithian mica, 2- yft whitish beige subhedral montebrasite which forms aggregates and individual crystals that may reach 3 cm. in diameter, up to ^% transparent white to pink euhedral beryl crystals up to 3 cm in length, Vk deep green elongate (elbaite?) tourmaline crystals up to 3mm. in length, and 1 to 1 .S*fa dark grey to black oxide fine-grained minerals that are occasionally orange weathering. Rare whitish amblygonite forms large subhedral crystals up to 5 cm in size in the southern Wall Zone. With increasing K-feldspar content the Wall Zone grades into the potassic Pegmatite Zone. A bulk sample of the Wall Zone returned .... interesting values of Q.05% Ta2O5,1 ©K Rb20, 1*Xi U20 and W F, and an extremely low K/Rb ratio of 4.5 and an Nb/Ta ratio of 0.144 which approaches the ratio of the Tanco pegmatite (F.W. Breaks, A.G. Tindle, and S.R. Smith, 1999b)." p*g* 18 Figure 8 From; E. G. Anthony HOUSTON LAKE MINING INC Timberwolf Explorations Inc. PAKEAGAMA LAKE PROPERTY (NTS 53C/11) July, 2000 RED LAKE MINING DISTRICT. N. W, ONTARIO Dttailvd Orology of Ihs Pakeagama Laki Pegmatite Showing Rock Sample Locations R Kan OwmumOon

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Oirrwi.MiiMnvrtft-Biom9 OWIM North Wall Zone The North Wall Zone is in contact with roof pendants and remnants of the Pakeagama Lake granite host rock and the Spodumene-Quartz Core Zone, the K-Feldspar- spodumene Quartz zone or the Potassic Pegmatite Zone. The North Wall Zone has sharp contacts with the granite and core zone yet grades into the Potassic Pegmatite Zone. The North Wall Zone, which is either open to the southeast and/or in contact with a remnant of granite host, is exposed over 20 metres along strike and attains a width of 13+ metres. South Wall Zone The southwestern contact of the South Wall Zone is covered, as is its extension towards the southeast. The zone trends northwest-southeast and is in contact with either the Core Zone or the Potassic Pegmatite Zone along its northeastern margin. It is exposed over a strike length of 20 to 30 metres and a maximum width of about 5 to 6 metres. Core Zone The Spodumene-Quartz Core Zone occurs at the extreme southeastern end of the large exposure of pegmatite where it has contacts with the Wall Zone to the southwest and the Potassic Pegmatite Zone to the northwest. The southeastern contact is not exposed. The Spodumene-Quartz Core Zone is up to 20 metres wide and has an exposed strike length of approximately 15 metres. The zone is open along strike to the southeast (figure 6). The Spodumene-Quartz Core Zone is composed of mainly spodumene, 55-60*^o, and quartz, 35-40*54, which have an interlocking texture. The quartz component forms lamellar fabric (exsolved?) to bleb-like inclusions in spodumene. The spodumene-quartz intergrowths (SQUI) are interpreted as pseudomorphic after petalite. These subhedral blocky to slightly prismatic pseudomorphs after petalite may reach a half meter by l metre in size. Spodumene is tan-coloured on a weathered surface and whitish on a fresh surface which may indicate a low iron content. The interstices between pseudomorphs are infilled by quartz aggregates (5*54) with minor euhedral, whitish beige and recessive- weathering montebrasite (up to Wo), euhedral fine-grained, dark green elbaite (trace to Wo), and mauve lithian mica (trace to Wo), and trace blackish to orange weathering oxide 20 minerals. Rare blocky k-feldspar crystals also occur in the core zone. Irregular, whispy to anastomizing quartz + albite veinlets (up to 6 mm thick) crosscut the spodurnene- quartz intergrowths. Stacked Aplite Zone The Stacked Aplite Zone occurs along the extreme northern portion of the mapped pegmatite. The zone is 13 to 25 metres wide and has sharp contacts with the surrounding banded iron formation (map unit 1), K-Feldspar-Spodumene-Quartz Zone (map unit 3b) and inclusions of iron formation and granite (figure 6). The contact area is marked by the presence of a number of large inclusions of iron formation. The zone is open both towards the east and the west. The Stacked Aplite Zone is composed of a coarsely laminated to medium bedded layering (2 cm to 50 cm thick) of whitish-beige aplite (50*54) alternating with spodumene- quartz rich layers (50*^6). The regularity of the layering is occasionally interrupted by spodumene-rich aggregates up to 20 cm in diameter. Oxide minerals form up to Wo of the rock. K-Feldspar-Spodumene-Ouartz Zone The K-feldspar-Spodurnene-Quartz Zone (KSQZ) is predominant in the northern exposed area of the pegmatite and lies to the south of the Stacked Aplite Zone. KSQZ appears to form the contact zone with granite along the northeastern contact. Here, it is complexly intercalated with roof pendants of granite and apophyses of granitic country rock. This zone may reach 30 metres in width (figure 6, table 7). The KSQZ is characterized by abundant elongate tan-coloured spodumene-quartz intergrowths (SQUI) up to nearly 6 metres by 1.5 metres in size which comprise 35 to 50^/0 of the host rock. The SQUI is interpreted as megacrystic pseudomorphs after petalite. Blue-grey, blocky megacrysts of K-feldspar form the bulk of this zone and are found up to l metre in size. K-feldspar crystals are often overgrown by SQUI. Minor deep greenish tourmaline (elbaite?) and quartz dominate the interstices. Oxides are present in trace amounts in the matrix. 21 Apiite Dikes Aplites are generally less than 5 metres thick (commonly in the 10 to 29 cm range away from the main pegmatite mass) and composed of albrte-muscovite margins with dark green (elbaite?) tourmaline crystals up l cm in long dimension inhabit the cores. Dikes may swell in thickness along strike and contain larger quartz-rich masses. Dark brown lithiophilite crystals and pods of white spodumene occasionally occur in some aplites. Most aplite dikes trend 1250 and have steep dips though strike attitudes of 700 with moderate dips are noted. 22 DEPOSIT TYPES Granitic pegmatites are those pegmatites derived from granitic intrusions. They may be divided into classes, types and families on a combination of criteria. The criteria include minor elements present and the relative concentrations of minor elements (i.e. tantalum to niobium), geological setting and metamorphic grade (see Table 1). The rare element class of granitic pegmatites is the only grouping that has significant economic potential. Further discussion will focus on this class.

Table l The Four Classes of Granitic Pegmatite (modified after Ceniy. 199 la).

Class Family Typical Minor Metamorphic Relation to Structural Examples Elements Environment Granites Features

Abyssal U. Th. Zr, Nb, upper amph. to none conform Rae A Heame. TL Y, REE. Mo low- to high P anatectic able to x- Sask. poor (to mod ) granulite facies, 4- leucosome cutting veins Siberia mineralization 9 Kb,700-8000C Baltic

Musco LI Be. Y, REE, high-P, Barrovian none conform White Sea, vite Ti, U, Th. amph. Facies (anatectic able to x- USSR Nb5-Ta,poor (kyanite- bodies) to cutting Appalachian mineralization. sillimanite) 5-8 marginal Province, micas A ceramic Kb. 650-580"C and exterior RajalistaiL minerals India

Rare- LCT Li. Rb, Cs, Be. low-P, Abukiuna (interior to Quasi- Yellowknife dement Ga, Sn, Hf, Nb, amph. (to upper marginal to) conformable field, NWT Ta. B. P. F. poor greenschist Jfacies; exterior to x-cutting Black Hills, to abundant nun; (andahisite- SD ceramic minerals sillimanite) 2-4 Cat Lake., Kb. 650-5000C Manitoba

NYF Be. Y, REE. Ti. variable interior to interior pods. Llano, Texas U, Th, Zr. marginal conformable S. Platte Nb^a, F; poor to x-cutting Distr.. to abundant min.. bodies Colorado geinstock W. Kievv. Kola USSR Mario- NYF Be. Y. REE. TL shallow to sub interior to interior pods Pikes Peak. Ittic U, Th, Zr. volcanic. 1-2 Kb marginal and x-cutting Colorado, NtPTa, F; poor dikes Idaho min., gemstock Korosten pluton, Russia 23 Rare-Element Pegmatites

Table 2 Classification of Pegmatites of the Rare-Element Class (modified after Cerny, 1991a).

PEGMATITE Pegmatite sub TYPE (feldspar type, geochem. Typical Economic Typical Examples + mica content) Signature minerals potential RARE-EARTH allanite-monazite allanite Upper Tura River, Ural Mtns. Kfi*plag to ab; (L)REE, U, Th monazite (REE) West Portland. Quebec bt^nosc (P. Be. Nl^Ta) Kobe. Japan gadolinite gadolinite Shatford Lake group, Manitoba Y. (H)REE, Be, fergusonite Y, REE. U Ytterby, Sweden Nt^Ta euxenite (Be,Nb-Ta) Ev je-Iveland field, Norway F(U Th, TL Zr) (topaz) Barringer HilL Texas (beryl) Pvoronmaa. Finland BERYL beryl-columbite beryl Meyers Ranch. Colorado Kf^ab; musc^bi Be, Nb> < Ta cohunbite- Greer Lake group, Manitoba (Sn, B) tantalite Donkerhoek, Namibia Be Ural Mountains, USSR beryl-columbite beryl-cohun- (Nb-Ta) Hagendorf-Sud. Germany -phosphate bite-tantalile Dan Patch, South Dakota Be, NboTa, P triplite Connecticut localities (LL F. Sn, B) triphylite Crystal Mtn, Field. Colorado COMPLEX spodumene spodumene Harding, New Mexico Kfoab; Li, Rb, Cs. Be, beryl Hugo, South Dakota muscolep TaoNb tantalite Mongolian Altai #3 (Sn, P, F. B) (amblygonite) Etta. South Dakota (lepidolite) White Picacho. Arizona (pollucite) Li. Rb. Cs. Manono, Zaire petalite petalite Be, Ta (Sn. Tanco, Manitoba Li, Rb, Cs. Be, beryl Ga.Hf) Bikita. Zimbabwe Ta>Nb tantalite Vamtrask, Sweden (Sn, Ga, P. F.B) (amblygonite) Luolamaki, Hirvikallio. Finland (lepidolite) Londondeny. Australia lepidolite lepidolite Li, Rb, Cs, Brown Derby, Colorado F. Li Rb, Cs, Be topaz beryl Ta,Be Pidlite. Ne\v Mexico T^Nb (Sn. P. B) microlite (Sil, Ga) Himalaya District, California (pollucite) Khukii-Del-UIa, Mongolia Wodgina. Australia amblygonite amblygonite Li. Rb. Cs, Viitamenu, Finland P. F. Li, Rb, Cs, beryl tantalite Ta,Be Malakialini. Madagascar Be,T^Nb (lepidolite) (Sn, Ga) Peerless, South Dakota (Sn,B) (pollucite) Finnis River, Australia ALBITE- Li spodumene Kings Mountain. North Carolina SPODUMEME (Sn, Be. TaoNb, (cassiterite) Li. Sn Preissac-Lacorne, Quebec alpKf; muse B) (beryl) (Be. Ta) Peg Claims. Maine (tantalite) Volta Grande. Brazil ALBITE TaoNb, Be tantalite Ta Hengshan. China al^Kf; (Li. Sn, B) beryl (Sn) USSR ms, lep (cassiterite) Tin Dvke, Manitoba 24 Rare element pegmatites are subdivided from a paragenetic-geochemical viewpoint (see Table 2) using different criteria: bulk chemistry, geochemical signature of accessory minerals, internal structure, P-T conditions of crystallization. The sequence from rare- earth to complex type is based on bulk plus trace composition. The sub-types of complex type are defined by P-T conditions and in part by chemical potentials of subordinate anions. This subdivision of rare-element pegmatite class provides orientation among and within diverse pegmatites on a broad to local regional scale.

Table 3. The Three Petrogenetic Families of Rare-Element Pegmatites (modified after Ceniv, 1 99 la)

Family Pegmatite Geochem. Pegmatite Associated Granite Source Examples Types Signature Bulk Granites Bulk Lithologies Composition Comp. LCT Beryl Li.Rb peraluminous (Anorogenic peralumi undepleled Bikita Composite Cs,Be,Sn, to) late nous, S,l upper to Field. (albite- Ga orogenic (to or mixed middle crust Zimbab\v spoduniene T^Nb(B, anorogenic) S+l types supracrustal e . albite) P.F) largely sand Uto- heterogeuous gneisses Mysingeo. Sweden

NYF* Rare-Earth N^Ta, Ti subaluminous syn-. late. (peialum depleted Shatford Y. Se, to post- to) iuous to) middle to Lake.Man REE.ZT, metaluminous mainly subalumi lower Bancroft- ILTh, (to anorogenic nous to crustal RetUre\v. F subalkaline) .homogenous nietalmni gnm ul iles. ON nous; A or imdepl Lentz. A I types juvenile Sweden pods

Mixed X-bred mixed metaluminous postorogenic subahuni mixed Tordal, LCT and to moderately to anorogenic -nous to protoliths or Norway NYF peraluminous moderately si. assimilation Kimito, heterogenous Peralumi of Finland -nous. supracrustal Evje- mixed sbyNYF Iveland. geochem granites Non\^i\ signature Notts * This family include* manMitic pegmatites ** Definm. *: Peraluminous AfKK l (AljQt CaO-^Na/J-K-O). Subaluminous^ CNK 1. Metalumm.m ACNK t Peralkaline ANK l (AljO, NajO-KjO), Subalkaline AXK^l

Table 3 presents a breakdown of rare-element pegmatites into three families (LCT, NYF and mixed) to emphasize petrochemical differences among the families. 25 Pegmatite families are characterized by their bulk composition, typical assemblages of trace elements, and types of granites associated with them. Economic concentrations of rare metals in granitic pegmatites are restricted to the rare element class of pegmatites (Cerny, 1989b). Rare metals deposits are found only in the most fractionated pegmatites emanating from fertile granites (granites with high alkali, silica and aluminum content and low iron, magnesium and calcium). Fertile granites and their pegmatite products tend to occur in the roots of orogenic belts formed by the collision of plate margins where erosion has revealed rocks formed at a depth of about 6 km. under conditions of high heat flow (lower amphibolite facies. Abukuma-type series of metamorphism). The fertile granites are apt to occur within linear belts of metasedimentary and metavolcanic rocks along faults, boundaries between major rock units, and other structural zones of weakness. On a local scale, the crystallization of fertile granites yields a fractionated residual magma which is enriched in lithium, rubidium, cesium, thallium, tantalum, hafnium, gallium, germanium, boron, fluorine and phosphorus relative to that contained in the fertile granite. This fractionated residual magma is expelled out from the fertile granite source into the surrounding metasedimentary and metavolcanic rocks where it cools and consolidates to form a group of pegmatite bodies. The pegmatite group derived from the fertile granite parent shows a progressive fractionation trend and chemical changes with distance from the fertile granite source. The most fractionated batches of pegmatite are the most mobile (enriched in boron, water, fluorine, phosphorus, lithium, rubidium, cesium, tantalum and beryllium) and tend to migrate the furthest from the fertile granite parent. The most fractionated of these pegmatites are the complex type pegmatites which includes the spodumene, petalite, lepidolite, and amblygonite subtypes.

Individual pegmatites are generally small and range from several metres long and l metre thick to economically interesting bodies hundreds of metres long and ten©s of metres thick. 26 Internal Structure of Pegmatites The internal structure of pegmatites varies from homogenous to zoned. Zonation acts to concentrate rare metals into specific areas within the pegmatite. Zoned pegmatites may have up to nine different units with variable textures and mineral modes (Cerny, 1991 b, Cerny et al, 1996). The most evolved zonation patterns are encountered in highly fractionated intrusions with complex rare metal mineralization (i.e. Varutrask, Hugo, Bikita and Tanco). Distribution of zones is influenced by the shape, attitude and unit lithologies of individual intrusions. Most prominent bulges in complex pegmatites usually have the most evolved internal structure (up to nine zones) whereas constrictions may have few zones. Most of the ore minerals of lithium, rubidium and cesium are found in the primary, intermediate and central zones. Early generations of beryllium and tantalum may also occur there but tend to concentrate in later units. Mineral Indicators of Rare Metal Mineralization A number of minerals in granitic pegmatites only occur in highly evolved pegmatites. Other minerals occur at several stages of pegmatite evolution but their properties (i.e. colour) are variable reflecting the degree of fractionation of the pegmatite (Cerny, 1989b). Columbite-tantalite is dominant or exclusive niobium-tantalum (Nb^a) mineral of moderately fractionated pegmatites. It is only in complex pegmatites where the association of tantalum (Ta^b) minerals becomes conspicuously diversified. Tourmaline is black in barren pegmatites, grading into blue and green in tin-, niobium- and tantalum-bearing albitized pegmatites, and the green, pink and colourless elbaite tourmalines indicate increased lithium, rubidium, and cesium potentials of complex pegmatites. Beryl is greenish, yellow or brownish in colour in simple pegmatites, becoming pale-coloured to white with increasing fractionation, and white to pink with rare metals mineralization. 27 Green spodumene is typical of albite-spodumene pegmatites, white spodumene is characteristic of complex pegmatites, white spodumene + quartz after petalite are most typical of the rare element pegmatites. Blue apatite is indicative of at least Be, Nb-Ta mineralization and increase in intensity of blue colour with extent of rare-element mineralization. Muscovite is usually brownish to dirty-green in poorly mineralized pegmatites. Yellowish-green to silvery muscovite is typical of beryl, niobium-tantalum bearing and complex pegmatites. The numbers of mica generations and their compositional diversity increase with progressive fractionation. Geochemical Trends A number of geochemical ratios are used to quantitatively show progressive fractionation: potassium/rubidium (K/Rb) in K-feldspar and (K/Rb), potassium/cesium (K/Cs) or magnesium/lithium (Mg/Li) in muscovite (Cerny, 1989b, G. Morteani and R. Gaupp, 1989). The K/Rb ratio in K-feldspar is a dependable and easily obtainable ratio which reflects the relative level of rubidium concentration (and consequently an indicator of potential rare metal mineralization) in fractionated pegmatites. In barren pegmatites the K/Rb ratio may be as high as 500 falling with increasing fractionation to near 10 in the most highly evolved complex pegmatites. A comparison of K/Rb versus Cs in K-feldspar monitors two key rare metal elements. A plot of K/Rb versus Cs is an effective tool in characterizing the minimal threshold for potential economic mineralization. Ore Deposits Significant pegmatites possess reserves of l Mt to 100 Mt (Cerny, 1991 a). Typical grades vary from G.6% to S.0% Li2O (averaging l .2507o Li2O), from Q.03% to 0.2054 Ta205 and from G.04% to G.20% BeO. Cesium grades of 23.307o and rubidium grades of 2.5QP/0 are reported from small zones within the Tanco deposit, Manitoba. Reserves grading 0,1 Wo Sn are reported from other select tin-rich deposits (Siriunas, 1999). The reserves of some rare metal pegmatite deposits are given in Table 4. 28

Table 4. Production Reserves of Some Pegmatite Deposits (Modified after Cerny, 1991 a)

Deposit Production/Reserves Comments

Tanco, Manitoba 2.1Mt, 0.2160XoTa2O5 Pre-production reserves 7.3 Mt, 2.7607o Li2O 03 Mt, 23.3^0 Cs20 0.9 Mt, O 20^/0 BeO 0.1 Mt, 2.50^0 RbaO

Tin-spodumene belt, 26 Mt, t.5% Li20 Reserves, Foote Mm. Co. North Carolina 30.5 Mt, 1.507oLi20 Reserves, Lithium Corp.

Bikita, Zimbabwe lO.SMt, Reserves

Kamativi, Zimbabwe lOOMt, 0.1140XiSn Reserves lOOMt, 0.6030XoLi20

Wodgina Mine, Australia 35 Mt, G.040% Ta205 Reserves (F. Breaks, pers. comm.)

Greenbushes, Australia 28 Mt, 0.1140XoSn Proven and probable Reserves 28 Mt, G.043% Ta205 28 Mt, 0.03 107o Nb205 33.5 Mt, 2.5507i Li20 29 MINERALIZATION Very few of the important rare earth minerals can be identified in the field. At this point in the exploration of the Pakeagama Lake Pegmatite, there are no distinct aerial dimensions for the distribution of the minerals. The zonation of mineralization is shown in the Stacked Aplite Zone (see: Exploration). The Ontario Geological Survey have defined specific mineralization within the Pakeagama Lake Pegmatite. Oxide minerals could not identified in the field due to the combination of rarity of mineral species, mineral diversity and fine grain size. However, 1648 electron microprobe analyses, 50 bulk chemical analyses, 21 analyses of potassium feldspar and X-ray diffraction work were conducted by the OGS and Open University in the United Kingdom (F. Breaks, A. Tindle, and S. Smith, 1999b). Mine tantalum-bearing oxide minerals have been thus far identified in the Pakeagama Lake pegmatite and related aplites and potassic pegmatites. They include: ferrotapiolite, ferrocolumbite, ferrotantalite, manganocolumbite, manganotantalite, wodginite, microlite, stibiotantalite, and cassiterite. These oxides have been divided into four groups based on their respective unique ranges of Mn/Mn+Fe atomic ratios. Group l corresponds to narrow, 30 cm. thick aplite dikes found l km south of the Pakeagama Lake pegmatite. Ferrocolumbite is the only oxide identified and this group is not considered a viable target for tantalum exploration. Group 2 mainly includes manganocolumbite and manganotantalite with subordinate ferrotantalite and ferrotapiolite. This group occurs in two pegmatite and aplite dikes located proximal to the pegmatite. Group 3 comprises manganocolumbite and manganotantalite which are restricted to the Stacked Aplite Zone of the Pakeagama Lake pegmatite. Tantalum oxide levels are economically significant in these minerals. Group 4 consists of highly evolved, manganese-rich compositions and occur mainly in the southeastern portions of the pegmatite. Wodginite, the chief ore mineral at the Tanco mine in Manitoba, is found in the Wall Zone. 30 ©The detailed documentation of a variety of tantalum-rich minerals coupled with the presence of pollucite renders the Pakeagama Lake pegmatite and adjoining area one of the best exploration targets for tantalum and cesium in northwestern Ontario" (F. Breaks, A. Tindle, and S. Smith, I999b, p.26-6). Potassium feldspar chemistry is a useful tool in the economic evaluation of pegmatites (Ceray, I989b). In particular, the rubidium and cesium contents and the K/Rb ratio in blocky potassium feldspar are important in the discrimination between rare- metal-enriched pegmatites and those barren of such metals (F. Breaks, A. Tindle, and S. Smith, 1999a, p. 176). Such data are typically examined in the K/Rb versus Cs plot devised by Cerny et al. (1981). "...most analyses from the Pakeagama Lake area (84*M() plot within the Bernic Lake pegmatite group of Cerny et al. (1981), which includes the Tanco pegmatite" (F. Breaks, A. Tindle, and S. Smith, 1999a, p. 176). "Tourmaline in petalite-subtype pegmatites from the Pakeagama Lake and Separation Lake areas of NW Ontario provides evidence for the compositional evolution of pegmatite melts through magmatic crystallization and pegmatite-host rock interactions. The tourmaline data suggest the Separation Rapids pegmatites mainly crystallized in an open system (i.e. pegmatite-host rock interaction was common), whereas at Pakeagama Lake, the main pegmatite units were little affected by interaction with host rocks (i.e. they crystallized in a closed system). This has implications for concentrating rare- elements such as Rb and Cs, which otherwise would be dispersed throughout pegmatite and host rocks. The potential for a buried pollucite orebody associated with the SE pegmatite at Pakeagama Lake increases as a result of these observations" (Abstract, Tindle et al, 2000 in press). 31 EXPLORATION Houston Lake Mining Inc. completed a programme of line cutting, ground geophysics, geological mapping, prospecting, rock saw channel sampling and overburden removal on claim 1232441 (16 claim units), between May 12 and July 25, 2001 as follows: 1) Work carried out by Raymond Lashbrook, Lashex Ltd. * Surveyed base- and tie lines totalling 3.90 kilometres at 143"azimuth. * 19 grid lines totalling 22.37 kilometres at 530 azimuth. * Total line cutting - 36.27 kilometres. * Magnetometer readings were taken every 12.50 metres along all of the grid-, base- and tie lines. * Very Low Frequency Electromagnetic (VLF) readings were taken every 25 metres along the grid lines only. * Meegwich Consultants Inc plotted the data. * R. L Lashbrook submitted a "Report on a Line cutting and Geophysical Survey, Pakeagama Lake Project, Red Lake Mining Division, NTS 53C/11 for Houston Lake Mining Inc., 2892 White Street, Val Caron, ON P3NlB2ONJune28,2001. 2) Exploration programme supervised by R. Ken Germundson, Mineral Exploration Geologist between June 25 and July 25, 2001. The field crew consisted of George Sharp, Regina, Saskatchewan, and Bill de Meulle, Red Lake, Ontario. * 86 channel samples, each one metre in length were collected from the pegmatite complex using a portable rock saw. * 19 samples, each approximately 20cm x 6cm x 5cm, were collected from the holmquistite granite along components of a 25 metre grid. * G. Anthony and K. Germundson mapped all of claim 1232441. Chip samples were collected from abundant exposures of banded iron formation and from a number of pegmatite and pegmatite related dikes that are present on the property. 32 * The pegmatite samples were assayed by Activation Laboratories Ltd., Ancaster, Ontario. XRAL Laboratories, Toronto, ran check samples assays on the samples collected from the North Wall Zone.. * Banded iron formation samples were assayed by ALS Chemex, Vancouver, B. C. Note; This report includes results from the Pakeagama Lake Pegmatite, Other aspects of the exploration programme will be under separate cover. North Wall Zone The Ontario Geological Survey collected 11 one-metre long channel samples from the North Wall Zone during their study of the Pakeagama Pegmatite. During the present study, a duplicate and parallel sample was cut immediately adjacent to that one cut by the OGS. Comparison results for the average tantalum oxide and cesium oxide content are as follows: Ont. Geol. Survey 285g7t Ta2O5 and 967g7t Cs2O Houston Lake - from Activation Labs I72g7t Ta2Os and 933g7t Cs2O XRAL Labs - check on Activation Labs 182g7t Ta2O5 and 930gA Cs2O Although cesium oxide values compare favourably between the laboratories, the XRAL and Activation results for tantalum oxide are considerably lower than those obtained by the Ontario Geological Survey. The channel sampling and assaying that were completed on the North Wall Zone (figure 6) are: 1. Channel l and 2 - Houston Lake Mining Inc. duplicate of channel one and cut of channel 2. Check assaying by XRAL Labs (table 5) except for samples M752501, 513 and 514 of channel 1. 2. Houston Lake Mining Inc duplicate of channel l and cut of channel 2 (table 6). Assaying by Activation Laboratories Ltd. 3. Channel l - Ontario Geological Survey (Table 7). 33

Table 5: North Wall Zone Geochemical check analyses for samples from channel 1 and 2 (see figure 6) XRAL Laboratories. Work Order 065032: for Houston Lake Mining Inc. All values in parts per million (ppm) Sample ID y Cs Rb la Be Nb Sn Ga GJJ li Sb

M752502 5310 838 4150 242 323 154 124 56 10.9 24.6 M752503 5970 865 4980 142 78 111 108 54 10.8 26.8 M752504 5350 860 3780 262 651 154 135 42 8.3 18.5 M752505 5870 932 4650 182 1060 134 165 58 9.7 26.4 M752506 6400 1030 5210 250 297 152 159 52 10.5 26.1 M752507 5660 1020 4440 192 754 116 212 55 10.7 26.8 M752508 5910 1110 4940 148 946 108 187 52 10.1 28.2 M752509 2470 700 6040 213 88 90 119 27 9.3 43.8 M752510 4900 691 5490 56 420 77 119 32 8.8 44.5 M752511 5670 1110 5070 181 541 119 137 52 9.4 22 M752512 8280 1080 5070 131 513 114 184 48 6,8 28.3

Sub sum 61790 10236 53820 1999 5671 1329 1649 528 105.3 316 Sub mean 930 4893 182 121 Oxide Mean 986 5431 22? 173 Ratio Nb/Ta ^.665 Oxide Ratio 0.78

M 76 1800 2080 779 8520 100 30 116 212 35 9.4 67 7.5 M761801 4340 880 7520 619 163 157 263 45 10.3 54.7 6 M761802 3180 772 8260 176 108 120 208 43 10.8 64.2 5.8 M 761 803 4810 903 440 123 254 86 176 31 6.9 22.3 5.1 M761804 2190 729 6000 102 83 99 67 33 8.1 40.8 5.9 M761805 731 698 9210 41 29 102 25 22 7.6 57.8 6.3 M761806 3980 882 5720 174 113 121 95 40 3.9 28.8 3.9

Total sum 83101 15879 99490 3334 6451 2130 2695 777 162 652 101 Average 4617 882.2 5527 185 358 118 150 43.2 9 36.2 5.6 Av. Oxide 935 6024 226.2 169

The XRAL averages for Ta, Cs, Rb and Nb are lower than those of the Ontario Geological Survey but are greater than the results for the same elements as assayed by Activation Labs. Sample size or variations in mineral dispersion may be the main causative problems. More reliable results may be obtained if the entire sample is pulverized. We are dealing with crystal sizes to l metre plus. 34 The total XRAL average lithium content of 4,617 ppm equates to 9,927 ppm or G.99% lithium oxide. The lithium occurs in spodumene and lithian mica. The total XRAL average for gallium is 43.2 ppm, which is marginally lower than the 50 ppm in bauxite and zinc ores. Tanco has produced gallium, rubidium and tantalum from their lepidolite zone (like Houston©s Wall Zone). The overall average of the rubidium is Q.60%. Rubidium-bearing minerals such as feldspar may be mined for the feldspar itself. Both the lithium-bearing lepidolite and the cesium-bearing pollucite may contain greater than 3Vo rubidium, and the rubidium can be recovered as by- or co-products of cesium and/or lithium extraction. Similarly, beryl, which is a beryllium mineral, could be mineable as a by- or co-product in the Pakeagama Pegmatite as a gemstone (if clear and well coloured). Varieties of beryl present include goshenite and morganite, which occur as semi-translucent to transparent porphyritic crystals. Both the Ontario Geological Survey (Table 3) and XRAL have analyzed for thallium content in the North Wall zone. The overall average thallium content as analysed for by XRAL is 36.2 grammes per tonne (table l) There is a current shortage of tantalum on the world market due to new applications in electronics, biomedicine and fiberoptics. An expansion at the Wodgina Mine in Australia has not been able to keep up with the demand partially because of the corresponding decline of tantalum production as a by product of tin mining. The Wodgina mines tantalum exclusively. Strategic stockpiles in the United States have been used to make up the shortfall. The mono-metallic Wodiga cannot be exclusively compared to the poly metallic Pakeagama. The average tantalum oxide grade at the Wodgina Mine is 402 g/t as compared to the channel l and 2 samples at Pakeagama Lake, which average 226.2 g/t (XRAL in table l) and 172.16 g/t (Activation in table 2) in the North Wall Zone. The Ontario Geological Survey (channel l only in table 3) obtained an average tantalum oxide assay of 344 grammes per tonne over 11 metres. 35 The following is the comparison of niobium oxide/tantalum oxide ratios between the three laboratories: Activation 0.51 XRAL - 0.78 OGS- 0.46

Table 6: NORTH WALL ZONE Geochemical analyses for channels number 1 S 2 samples (see figure 6) Activation Laboratories Ltd., Work Order 22772, Report 22536R for Houston Lake Mining Inc. All values in parts per million (ppm)

Sample ]D Notes Cs Rb la Mass/am Nb Sn Ga Ge u

M752501 1 metre 723 4290 106 1.476 51 147 47 7 30.2 M752502 per sample 884 4790 253 1.719 106 113 69 10 39.4 M752503 759 4340 163 1.6171 81 108 49 7 27.2 M753504 843 4330 191 1.547 85 111 68 9 31.6 M752505 898 4790 197 1.778 97 120 62 8 31.2 M752506 1020 5610 180 1.706 75 160 69 8 45.5 M752507 940 4410 170 1.673 69 131 55 7 21.4 M752508 1010 4620 131 1.789 56 119 54 8 38.4 M752509 655 5340 74.6 1.519 21 77 28 7 38.3 M752510 783 5300 72.6 1.507 32 83 42 9 58.8 M752511 1050 4800 123 1.62 50 149 53 8 25.1 M 7525 12 1100 5060 156 1,781 65 145 54 8 36.1 M752513 430 1800 40.9 1.706 17 84 31 6 13.2 M752514 1250 6360 116 1.699 51 194 75 8 54.7 M761800 782 9540 123 1.49 21 101 42 9 101 M761801 995 9160 268 1.66 37 164 61 7 56.3 M761802 955 10100 142 1.587 22 134 46 9 101 M761803 907 4780 159 1.607 59 135 39 5 26.1 M761804 745 6140 166 1.401 46 93 45 9 63.2 M761805 826 10900 33.9 1.444 8 25 31 7 73.8 M761806 949 7080 188 1.755 67 102 55 9 63.1

Sum 18504 123540 3054 1116 2495 1075 166 975.5

Mean 881.1 5882.9 145.4 53.1 118.8 51.2 7.9 46.5 Oxide mean 934 6412 172 75.9

The discrepancies between the niobium oxide/tantalum oxide ratios are possibly related to size of sample assayed and that the total sample was not completely pulverized before taking a prescribed weight of sample for analysis. 36 Because of the large size of many of the crystals, complete pulverization of the samples is recommended in order to compromise for the crystal-size differential.

Table 7. North Wall Zone Assay Resnlts (Ontario Geological survey) Equivalent to M 7 52 501 to M 7525 i 2 of Table 1 and 2, Channel 1, Figure 6

Interval TajO, RlhO CsfcO BeO Sn NlhOs LijO TI Ge Sb (Sample #) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (2^1 (g/t) (g/t) (g/t)

0- L metres (99-24) 358 4853 1021 2032 84 179 0.95 24.5 tr. 6.0 1-2 metres (99-25) 355 5323 904 493 90 173 1.03 25.5 tr. 6.0 2-3 metres (99-26) 394 5367 862 386 101 196 1.08 25.0 tr. 5.0 3-4 metres (99-27) 460 6307 966 237 130 227 1.27 29.0 8.0 5.0 4-5 metres (99-28) 314 6722 1129 699 136 142 1.29 30.5 tr. 4.0 5-6 metres (99-29) 335 5695 997 264 106 156 1.25 27.5 7.6 3.3 6-7 metres (99-30) 289 5705 1020 225 113 134 1.16 27.5 7.4 3.8 7-8 metres (99-31) 103 7017 732 124 48 40 0.47 47.5 7.4 9.9 8-9 metres (99-32) 80 5782 647 351 65 30 1.42 42.0 tr. 10.0 9- K) m. (99-33) 254 5880 1193 963 195 94 1.16 24.0 tr. 22.0 10-1 1m. (99-34) 190 6088 1171 810 121 86 2.00 30.5 tr. 11.0 ll.Om 285 5885 967 600 108 132 1.15 30.3 3.3 4.7 Incl. 7.0 m 358 5710 986 619 109 130 1.19 27.1 2.8 7.8

0.2m (99-37) 446 0.82 2083 328 404 114 2.04 37.5 tr. 16.1 0.2m (99-38) 525 0.88 2184 100 350 130 2.20 47.0 11.0 9.3

The Pakeagama Rare Earth Pegmatite (the North Wall Zone as one example) has the potential to be a multi-metal resource, which includes tantalum, lithium and cesium (Core Zone and unknown potential within or under the Holmquistite Granite), and beryllium (beryl) among others. 12 South Wall Zone

Table 8: Geochemical analyses of samples collected from channels 5,6 and 7 (figure 6) from the South Wall zone. For Houston Lake Mining Inc. Analyses by Activation Laboratories Ltd. (Job No. 22772: Report 22536). All values in parts per million (ppm).

Sample Cs Rb Ta Mass/qm Nb Sn Ga Ge Tl

M761774 1280 5480 122.0 1.809 36 114 53 10 51.1 M752S15 744 7980 49.8 1.296 11 40 33 7 59.4 M752515 rep. 35 8 55.0 M752516 1140 10600 40.0 1.487 3 35 42 9 105.0 M752717 1200 7400 48.5 1.589 14 86 46 11 87.6 M761751 917 8040 87.5 1.486 27 50 34 8 106.0 M761752 764 6940 36.5 1.447 14 50 23 6 60.7 M761753 1150 10300 68.4 1.472 4 38 28 9 140.0 M761754 319 2270 13.2 1.683 4 19 19 6 29.8 M763755 1060 5300 39.6 1.615 18 59 30 9 77.0 M761756 965 6590 212.0 1.483 40 468 42 8 52.8

Note: 1 : M761 751 and M761 752 are from the Potassic Pegmatite Zone. 2: All channel samples are 1 metre in length.

Unlike the tantalum values in the North Wall Zone, those for the South Wall Zone are mainly less than 90 parts per million (Table 5). Two exceptions are M761774 (122 ppm) and M761756 (212 ppm). Both of the samples are from the south westernmost margin of the exposure and are about 10 metres apart. In both of the samples, there is a corresponding increase in the content of tin and, to minor degree, niobhim. The overall niobium content of the South Wall zone is lower than that for the North Wall Zone. The greatest values for ie: rubidium are in samples M752516 (10600 ppm) and M761753 (10300 ppm). The location of these samples is away from the best tantalum assays, and they contain a corresponding increase in thallium (105 and 140 ppm respectively). There is a subtle zonation with respect to the distribution of some of the elements that are present in the South Wall Zone. 38 Core Zone The Spodumene-Quartz Core Zone occurs at the extreme southeastern end of the large exposure of pegmatite where it has contacts with the Wall Zone to the southwest and the Potassic Pegmatite Zone to the northwest. The southeastern contact is not exposed. The Spodumene-Quartz Core Zone is up to 20 metres wide and has an exposed strike length of approximately 15 metres. The zone is open along strike to the southeast (figure 6). The Spodumene-Quartz Core Zone is composed of mainly spodumene, SS-60%, and quartz, 35-40*2-0, which have an interlocking texture. The quartz component forms lamellar fabric (exsotved?) to bleb-like inclusions in spodumene. The spodumene-quartz intergrowths (SQUl) are interpreted as pseudomorphic after petalite. These subhedral blocky to slightly prismatic pseudomorphs after petalite may reach a half meter by l metre in size. Spodumene is tan-coloured on a weathered surface and whitish on a fresh surface which may indicate a low iron content. The interstices between pseudomorphs are infilled by quartz aggregates (50Xo) with minor euhedral, whitish beige and recessive- weathering montebrasite (up to Wo), euhedral fine-grained, dark green elbaite (trace to l "©o), and mauve lithian mica (trace to l 04), and trace blackish to orange weathering oxide minerals. Rare blocky k-feldspar crystals also occur in the core zone. Irregular, whispy to anastomizing quartz 4- albite veinlets (up to 6 mm thick) crosscut the spodumene- quartz intergrowths. Lithium shows strong a high concentration within the pegmatite content of the core Zone. Analysis of 5 channel samples collected by the Ontario Geological Survey and spanning 4.8 metres of the Spodumene-Quartz Core Zone are reported to contain a range of 4.33 to 4.79^/0 LiaO (channel 4, figure 6). This lithium composition fits the interpretation of spodumene -*- quartz pseudomorphic after petalite (F. Breaks, A. Tindle, and S. Smith, 1999a). Channel 3 (figure 6) includes 9x1 metre long samples from the core Zone that were analized for lithium only. The average lithium content for the 9 samples is A.67%. The combined 13.9 metres of channels 3 and 4 yielded 4.62 Yo lithium. The core zone has a high potential for a significant lithium content 39 Stacked Aplite Zone

Table 9. Stacked Aplite Zone Assay Results (Ontario Geological Survey) (See channel 1, figure 5) Compare to Table 14

Interval Ta.O, RthO Cs20 BeO Sn NthOs Li20 Tl Ge Sb ( Sample #) (e/t) (e/t) (e/t) (e/t) (e/t) (e/t) (*/.) (e/t) (e/t) (e/t)

0-1 metres (99-15) 102 933 47 73 22 54 2.80 5.5 3.8 5.1 1-2 metres (99-16) 158 2656 154 229 52 100 1.21 15.0 4.5 3.8 2-3 metres (99-1 7) 114 1902 136 209 106 92 2.00 10.5 4.5 3.2 3-4 metres (99-18) 118 2077 156 150 25 94 1.98 12.5 4.3 3.7 4-5 metres (99-19) 145 3782 232 168 162 96 1.08 23.5 4.9 6.4 5-6 metres (99-20) 167 1789 153 174 311 102 1.46 11.5 5.0 5.6 6-7 metres (99-21) 94 2525 191 162 163 79 2.82 15.0 4.2 4.1 7-8 metres (99-22) 160 2663 250 207 106 109 0.77 15.0 5.5 5.5 Average 132 2286 165 172 118 91 1.77 13.6 4.6 4.7 Ave Nb oxide = 0.69 Ta oxide

Channel number 14 (figure 3) is an 8-metre long series of channel samples that were collected in l-metre intervals by the Ontario Geological Survey. The relatively greater tantalum oxide values (132 ppm), as compared to the average Ta2Os in the rest of the Stacked Aplite Zone (82 ppm Ta or 100 g/t TaaOs in table 6, and figure 6) are near the contact with the iron formation. The 100 g/t TaaOs compares to l 340A average grade for tantalum oxide in the Big Whopper deposit, which has reserves of 13.8 million tonnes. Lithium oxide assays average 1.77*54 along the 8 metre OGS channel. Most, if not all of the lithium, is tied to the lattice network of spodumene (LiA^SiaOf,), which contains S.4% lithium. Lithium was not assayed for all of the samples collected by Houston Lake Mining Inc., but it is recommended that the assaying be completed for these samples during the next phase of exploration. The content of lithium oxide at the big Whopper averages G.30%. The sequence, M761778 to M761781 from channel number 10 (figure 6), was collected from immediately adjacent to the contact between the stacked aplite and the iron formation. These 4 samples contain an average of 145 ppm tantalum (z 177 ppm tantalum oxide). Channels 12 and 13 also contain relatively elevated values for tantalum, and the samples are located in the immediate proximity of the contact between the stacked aplite and a granite roof pendant. Contacts control some mineralization. Tabte 10: i l©AKEAGAMA PEGMATITE - STACKED APLITE page 40 Geochemical analyses for sample sequences of channels 10 to 13 and 15 to 17 (see figure 6) : AdrvaHon Laboratories Ltd., Work Order 22772. Reoort 22536R for Houston Lake Minina Inc.! i AH values in parts per million (ppml ; i © ! © :! " :, l : \ Sarre* ID Channel Cs Rb Taissfam Nb Sn Ga Ge Tl

M761776 10 191 1130) 5351567 18 1259 26) 3i 7.7; M761777 266 2850J 19.4h.739j 14: 234 46 4; 22.1? M761778 185 2260 168! 1 684 44 296 49 4 15.2 M761779 ! 118 2020 13551.498 32 268 41 i 5, 17.4: M761780 246; 3930 132 1.617! 48 549i 85! 6j 24.9; M761781 104 2120: 145; 1.707? 64^ 683© 50; 4! 17.6; M761782 106 2100 89.8 1.603 46 268 49 5 20.9 M761782 dup 109 2170 86.5 1.652 i 45 Si 24.4; M761783 41 j 1960 116M.716© 49| 145; 44: 4; 18.5 M761784 i 95i 523 80.5© 1.804; 30! 112; 29j 31 3.32; M761785 955 2030; 64.9 1.683: 25 91 i 32 8J 21.4 M761786 i 229 5960 23.4 1.544 21 39 28 4 57.9 M761787 102 2200 26.9 1.693 20; 57 25 4©i 19.8 M761788 196 6030 11.91.491 12) 34i 27 4l 54.9 i M761789 11 i 83 784 60.3 1 1.709J 25! 176J 31 SJ 777 M761790 ; 201 i 2550 66.8 1.5 43; 127; 36 3 6.68 M761791 i 219 4070 36.2 1.671 21 84s 28 5 40.9 M761792 209 2360 69.91.653 41 127i 32 4 19.7 M761793 141; 1380 78.951.596 51 63i 32; 5 13; ? M761794 12 i 333! 2970: 154! 1.586 70! 199; 48: 5 18.1 ; M761795 i 398! 3040; 113: 1 482 80 208 52 6 25.4 M761796 i 227: 2552 117: 1.448 65 66^ 42 6 22.8 M761797 274! 3690 72 4{ 1843 40! 84 35 6 43.1 il M761798 j 13 i 334 3280| 49.1:1.841; 41 1 211 i 44; Si 23.1; j M761799 204 1130; 132i 1.774 50© 2044 31 i 4 7.95; j M7S2S18 : 15 152; 22205 35(1 .801 1 30 74- 34| 4 19.2;

M752519 j 215: 2620! 89.9 1.619! 68 99 46| 5 20.8 i! M752520 j 216 3100* 72.6i 1.558i 50 88^ 40j 4 20.6J M752521 J 145; 1530! 91.3i 1.643 65 68; 44i 6; 13.5 i M752522 l 200 2820! 73.4! 1.506 49 73i 38s 4 ^Sl M752523 l 141 2200f 77.5; 1.776! 44 65J 38!; 6 9.35: M752524 i 138 2\eOl 77.6! 1.6971 41 86 41; 5 15.4 M752525 \ 112 2080! 32.4J 1.7475 20 58 26j 5i 21 .9| M7S2526 106 1620! 21 .5i 1.759s 29 43 26i 3! 13.6i M752527 i 16 138 2680© 20.5S1494 21 28 22! 4i 26.1! M752528 l 103 1620; 13.9!! 1.79s 25 45 25! 3 11 M752S29 114 2030:i 23.2? 1.59 27 41 23i 4 24.5 M752530 17 177i 2140; 32; 1.644j 38 90! 35? 3J 13.31 M752530 ©dup. 192 2320; 31.8s 1 .661 ©, \ 35; 4j 20.9! M752531 101! 1580 57.5 1.504 46 72 35j 5] 13.5 M752532 i 55 884 25.1 1.682 22; 53 24i 3} 6.9| M752533 j 288 6050; 64.51.395 71; 132 34; 5j 69.8 M752534 ; 220j 4380 17.2 1.8 24] 62| 26: 3| 35.1 M752535 l 231 j 3890 29.8 1.706 25 43? 25 4! 48.3 M752536 i 64! 873 32.8 1.682 25! 33! 22 3\ 6.85! M752S37 365 3230 71.7 1.617 66 104 38 5| 34.1 M752538 i 420s 5240 84.6; 1.604, 31 40; 25 5! 52.4 Number 47! 47; 47 , 45i 45i 47: 47} 47 Sum 8646M22403 3225I 1812 8866ll736 257; 1114 i ; : j i i © ; © Mean 183 2603 67.6 37.6 196; 37.5 4.47 22.7 Average oxide j 194J 2837i 82;; i ; i ; i Average Nb/Ta ^0.56 : l Average Nb oxide/Tantalum Oxide = 0.65 Similarly, the samples that contain the highest values for tin are in the same sequences as for tantalum. Regardless of sample location, the NbaC^TajOs ratio for the Ontario Geological Survey samples (channel 11, table 5) at 0.69 correlates favourably with the ratio for all of the other sampling (table 6) at 0.65. 42 K-Feldspar-Spodumene-Quartz Zone A relativdy high content of cesium occurs in the three samples that were channelled from the zone.

Table 11: Geochemical analyses of samples collected from channels 8 and 9 (figure 6) of the K-Feldspar-Spodumene-Quartz Zones and Aplite Dikes. For Houston Lake Mining Inc. Analyses by Activation Laboratories Ltd. (Job No 22772: Reoort 22536). All values in oarts Der million toom).

Sample Cs Rb Ta Mass/am Nb Sn Ga Ge Tl K-Fd-Sp-Qtz M761757 442 3330 83.5 1.787 45 145 38 6 36.4 M761758 606 3750 171.0 1.676 103 82 33 6 29.9 M761759 544 4590 57.1 1.637 32 76 30 7 56.5

Aplite Dikes. M761760 630 4810 98.3 1.560 49 196 39 8 55.3 M761760* 39 8 55.1 M761761 697 3800 92.8 1.550 54 145 37 5 34.6 M761762 478 2200 112.0 1.607 46 136 42 6 22.1 M761762** 458 2120 112.0 1.704 42 6 19.1 M761763 470 2740 131.0 1.781 57 196 44 6 20.1 M761764 321 1950 272.0 1.723 84 258 50 8 18.0

Notes: 1) * s repeat 2) ** s pulp duplicate. 3) All samples one metre in length.

Aplhe Dikes A 12 cm. thick aplite dike trends 26507540 over 300 metres from the main pegmatite exposure on the shore of Pakeagama Lake. A 2.5 Kg. grab sample from the aplite assayed Q.07% Ta2O5. As with the K-fd-Spod-Quartz Zone, values of cesium, and tin remain at more-or- less average levels. 41 Holmquistite Granite A cesium anomaly is associated with the holmquistite granite. Samples shown in figure 3 and listed in table 10 that are anomalous with respect to cesium are indicated by

Table 12: Geochemical Analyses for the HOLMOUTSTITE GRANITE from saw cut samples (see figure 6 for sample locations) Activation Laboratories Ltd., Work Order 22772, Report 22536R for Houston Lake Mining Inc. All values in oarts oer million (own)

Sample ID Notes Cs Rb Ta Mass/gm Nb Sn Ga Ge Tl

M760574 70 304 1.4 1.58 11 8 18 1 2.45 M760575 58 320 1.2 1.566 11 5 17 1 2.35 M760576 33 204 1.6 1.451 11 5 17 1 1.56 M760576 Dup. 33 214 1.5 1.503 16 1 0.9 M760577 *360 2470 5.2 1.573 12 43 17 2 24.5 M760578 13 228 1.4 1.565 11 6 16 1 1.39 M760579 11 229 1.2 1.508 11 7 17 1 1.64 M760580 74 282 1.1 1.501 9 5 15 1 2.13 M760580 Repeat 15 1 1.99 M760581 *478 1990 2.7 1.638 10 27 15 2 17.5 M760582 *168 260 1.2 1.494 11 7 15 1 2.26 M760584 *224 1080 1.9 1.625 li 12 16 l 6.53 M760585 *188 577 1.8 1.643 9 8 16 l 4.76 M760588 *129 208 1.3 1.587 9 10 15 1 1.25 M760591 *277 484 2.5 1.553 99 9 18 2 4.45 M760592 *667 2720 0.5 1.498 11 46 15 l 17.8 M760593 *1020 2880 59.7 .529 32 169 29 5 21.4 M760594 *128 253 1.4 .533 11 9 15 1 1.41 M760596 M 13 559 1.4 .659 12 7 16 1 6.84 M760597 19 183 0.9 .51 9 8 15 0 0.73 M760598 78 214 2 .502 12 9 15 1 1.36 M760598 Dup. 76 218 2 .596 16 1 1.36

The holmquistite granite is exposed adjacent to the southwest margin of the Pakeagama Pegmatite (figure 3) for a known strike length of about 160 metres. The 44 majority of the cesium anomalies are in outcrops that are concentrated towards the north west end of the exposures. The anomalous area is open towards the northwest. Elevated to anomalous values for rubidium tend to correlate with samples that are anomalous for cesium. Those samples, such as M760793, which have an increase in the amount of tin, have corresponding increases in gallium and thallium. Niobium at 99 parts per million is locally enhanced in sample M760791. The inference that the holmquistite granite represents a roof pendant or cap rock overlying a shallow, buried extension of the Pakeagama Pegmatite (Anthony, 2000) is an explanation for the presence of anomalous cesium, etc. in the granite. Some cesium (and lithium), etc. leaked upward into the granite during the emplacement of the pegmatite. 45 INTERPRETATION AND CONCLUSIONS 1- The Pakeagama Lake Pluton was intruded into early volcano-sedimentary formations. The Bear Head Fault affected all of these rocks, and it marks the boundary between the Sachigo and Berens River Subprovinces of the Canadian Shield. . 2- The latest geological event is the injection of fresh appearing pegmatite (Pakeagama Lake Pegmatite) into the northwest nose of the pluton. Associated aplite and pegmatite dikes both adhere to and crosscut the regional foliation. 3- The Pakeagama Lake Pegmatite is closely associated with the Pakeagama Lake pluton in a geologically significant regional setting. The pluton is a possible fertile granite parent rock for the rare elements that are present in the pegmatite. 4- The Pakeagama Lake Pegmatite is a rare-element class, complex-type, petalite subtype granitic pegmatite. Evidence that primary petallite broke down before it became solidified is shown by the textural and mineralogical evidence of spodumene and quartz intergrowths thus showing why no petallite is present now. 5- There are five internal zones, based upon structural, textural and geochemical criteria, contained in the pegmatite. They include: a Stacked Aplite Zone, a Kfeldspar- Spodumene Quartz (Petallite) Zone, an intermediate Potassic Pegmatite Zone, a Spodumene-Quartz Core Zone and a Wall Zone (north and south). Replacement veins, and two external units (aplite and potassic pegmatites) indicate the potential for the discovery of other zones. These are outlined in figure three. 6- The Pakeagama Pegmatite is exposed over a strike length of 280 metres and is open towards the northwest and the southeast. The Core and Wall Zones, which are known to be tantalum- and lithium-bearing, are located at the southeast end of the exposures and are open in that direction. The northwestern extension and the southwestern contact of the South Wall Zone have not been defined either. The width of the pegmatite varies from 25 to 125 metres, though the true dimensions are not presently known. There are numerous granitic roof pendants and remnants of iron formation, which is in contact with the pegmatite on the northeast side, within the pegmatite mass. However, the approximate structural consistency between banded iron formation country rock and BIF roof pendants indicates that these xenoliths are only slightly displaced along the northern contact area. 46 7- The presence of numerous roof pendants indicates that the current level of erosion is exposing the top of the Pakeagama Lake Pegmatite. 8- The Holmquistite Granite, which flanks the Pakeagama Lake pegmatite on the southwestern side, is thought to lie above additional, buried rare metal pegmatite. A cesium anomaly, with cesium values ranging between 129 and 1020 parts per million, has been defined within the Holmquistite Granite. A continuous cesium anomaly extends from the vicinity of a pollucite (Cs)-bearing dike for a distance of 160 metres towards the northwest. The anomaly is open towards the northwest, and the southwestern limits have not been denned either. Holmquistite is a prismatic lithium mineral, and lithium analyses are yet to be done. 9- The Pakeagama Lake Pegmatite is unmetamorphosed which is in sharp contrast to the gneissic fabric that is characteristic of the enclosing Pakeagama Lake Pluton, and the two may or may not be related. 10- A high potential for economic zones of rare metals is given by: a) the diverse presence of tantalum minerals with significant tantalum anomalies occurring in the North Wall Zone (average tantalum oxide content at 226.2 parts per million) and elevated tantalum oxide values to 135 parts per million adjacent to the contact of either the iron formation or a granite roof pendant in the Stacked Aplite Zone. Tindle ei aJ (in press) stress that there is a genetic link in tourmalines between the Wall Zones and the Holmquistite Granite. Highly evolved tantalum to niobium ratios in the tantalum-bearing minerals (tantalum content greater than niobium content). b) mineral indicators such as deep blue fluorapatite and deep green elbaites. c) a high rubidium content in feldspars (averages of 5,527 ppm in the North Wall Zone, 2,603 ppm in the Stacked Aplite zone and J.1% in the feldspar zones (Breaks el aJ, 1999, 2000) as examples. d) the presence of pollucite, which is a rare circumstance. e) the high lithium content of the Core zone with lithium oxide generally averaging greater than 4.5"7a. f) the efficiency of the zonation process as is illustrated by the presence of 5 internal and 2 external zones and by the elevated lithium concentrations of Core Zone which approaches the bulk composition of petalite; g) the closed system of crystallization shown by tourmaline compositional evolution h) the large size of the known extent of the Pakeagama Lake pegmatite. 11. Sampling of the Pakeagama Lake pegmatite indicates that a number of commodities such as Li, Rb, Cs, Be, Ta, Nb, Sn, Ga, and Ge, are present in highly anomalous concentrations. 12. Variations in reported analyses by XRAL. Activation and the Ontario Geological Survey are due to preparation technique, size of sample analysed and type of analysis. RECOMMENDATIONS 1) Changes in feldspar mineralogy suggests that the Pakeagama Lake Pegmatite evolves towards the southeast. Part of the forthcoming exploration program will test this area. 2) There is a likely genetic link between the Pakeagama Lake Pegmatite (Wall Zone) and the Holmquistite granite. The Holmquistite granite is thought to represent a cap rock overlying above buried pegmatite. Both drilling and surface stripping programmes can define the relationship between the two. The high cesium content and the presence of the lithium-bearing holmquistite in the granite makes for an intriguing target. 3) The Stacked Aplite Zone contains highly evolved tantalum minerals. 4) The importance of evidence for late sodic metasomatism (replacement bodies) and late aplite dikes is suggestive of further potential for rare metal mineralization at depth.. A continuing exploration programme is strongly recommended for the Pakeagama Lake Property of Houston Lake Mining Inc. as follows: l) Mechanical stripping and washing of overburden in order to define the limits of the Pakeagama Pegmatite and the Holmquistite Granite. 2) Sampling with the aid of a portable rock saw. 3) Preliminary diamond drilling of 1000 metres to obtain a cross-sections of the pegmatite, to test on strike extensions and to define the character of rock beneath the granitic roof pendants and the Holmquistite Granite. 4) All future samples to be pulverized and mixed completely before taking a prescribed amounts for analyses. The large size of individual crystals is a problematic characteristic when assaying components of the pegmatite. PROPOSED EXPLORATION BUDGET FOR 2002 for the PAKEAGAMA LAKE RARE EARTH PROPERTY of HOUSTON LAKE MINING INC. November. 2001

Mechanized stripping and washing: Back hoe including, mobilization, demobilization S 42,000.00 Washing exposures 10,000.00 Mapping and sampling 15,000.00 Assaying 150 samples at S65.007sample - say 10,000.00 Transportation (air and ground) 10,000.00 Camp supplies (food, lodging and material) 8,000.00 Contingencies 10.000.00 Subtotal S100,000.00 Diamond drilling: 1.000 metres including mobilization and demobilization at S100.00/metre S100,000.00 Assaying 700 samples at S65.00 per sample 45,500.00 Core logging and splitting 13,000.00 Transportation (air and ground) 10,000.00 Camp supplies (food, lodging and material) 10,000.00 Contingencies 21.500.00 Subtotal S200,000.00

Total______S300.000.00 Pakeagama Lake Project - Assessment Expenses

1. Field Crew Expenses:

Project Geologist (40 days @ 5321/day) 512,840.00 Consulting Geologist (5 days @ 5374.50/day) l ,872.50 2 Technicians (57 days @ 175.00/day) 9.975.00

524,687.50

2. Field-Related Expenses:

Truck Rental and Gas: 53,030.56 Equipment Rental (Wajax pump, Genset, Sat Phone, Rock Saw) 4,830.72 Field, Office and Camp Supplies (Major item saw blades) 7,147.14 Food (incl. Propane) 3,321.02 Airfare (Camp mob/demob, weekly food flights) 9,332.02

527,661.46

3. Assays: 56,872.74

4. Report Writing:

Report-Writing and Cartography (10 days @ 5321.00/day) 53,210.00 Editing and Interpretation (3 days @ 5374.50/day) 1.123.50

S4.333.50

Total Assessment Work: 563.555.20 50

APPENDIX

Metals in the Pakeagama Lake Pegmatite 51 METALS IN THE PAKEAGAMA PEGMATITE Tantalum (la) A metallc element, ppm Ta times 1.221 ^ ppm Atomic Number: 73. Atomic weight is 180.95. Specific Gravity: 16.6 at 20 degrees Celsius Melting Point: 2996 degrees Celsius. Forms in granitic pegmatites (Pakeagama lake Pegmatite). Practically immune to chemical attack below 150 degrees Celsius. Tantalum is closely related to Niobium (synonymous whh Columbium), which has an atomc number of 41 and an atomic weight of 92.91. The respective minerals, tantalite and columbite form a continuous series between each other with tantalum and niobium (columbium) being interchangeable. Their physical and chemical properties are similar, and they are interchangeable in many applications. * Chemical formula: (Fe,MnXNb,Ta)2O6 ^ (iron, manganese)(niobium, tantalum) oxide. * Crystal system: orthorhombic occurring as tabular or prismatic crystals, commonly twinned and also as massive aggregates. * Cleavage distinct with subconchoidal to uneven fracturing. * Hardness: 6; Density: 5.3 to 8.1 (Tantalite: 7.95 to 8. l). * Colour: black, and may have iridescent surfaces. * Streak: dark red to black. The columbite-tantalite group of oxides are the most widespread oxides in the Pakeagama Lake Pegmatite system as follows: * Ferrocolumbite group - in narrow aplite dykes located l-kilometre south of the pegmatite. The relationship to the pegmatite is not well understood. * Manganocolumbite-manganotantalite group occurs outside of the pegmatite at an aplite dyke on the shores of Pakeagama Lake. * \fanganocolumbite-manganotantalite with an increase in the amount of manganese 52 * A highly evolved manganese-rich group that occurs in the Wall Zone in the southeastern part of the pegmatite (figure 5, tables 1,2 and 3). The tantalum metal is ductile, easily fabricated, has a high melting point, is highly resistant to corrosion by acids, and is a god conductor of heat and electricity. Price * 1998: the spot price for tantalite ore ranged from S32 to S35US per pound. * 1999: capacitor-grade tantalum powder from S135US to S260US per pound. * Capacitor wire from S l SOUS to S270US per pound. The expected consumption of tantalum by the United States of America in 2001 is about 700 tons. Processing of Tantalum Historically, the world©s supply of tantalum was from the slag that was discarded from tin smehers Columbite/tantalite ore is commonly associated with the tin mineral, cassiterite, in Thailand, Australia, Brazil and Central Africa. The tantalum is unreduced in the slag and can be removed by electric smelting and/or chemical extraction. Since 1985, the tin industry in Southeast Asia has declined, and the ores of tantalite have become the primary source of tantalum. The largest producers of tantalum are the Greenbushes and Wodgina open pit operations in Western Australia. Canada and Brazil also major producers of tantalum. About 25*54 of the annual production of tantalum comes from the recycling of scrap metal and tantalum compounds. Tantalum (and Niobium) is extracted from ore concentrates by chemical means. The concentrates are subjected to a solution of hydrogen fluoride/sulphuric acid (HF/HaSO-i), and the tantalum is brought into solution. The acid solution is mixed with methyl-iso-butyl ketone (MIBK), and the tantalum is removed with acid ammonium fluoride The metal is usually in powder form, but it can also be refined in an electron beamfomace. 53 Uses Current applications of tantalum include: 1. As a metal powder in tantalum capacitors, which are dependent upon the insulating character of tantalum oxide films. It depends on a large surface area of the very finely dispersed powder and the purity of the oxide. This is the biggest single use for tantalum accounting for about SQ/% of production. 2. As fabricated metal in heat exchangers and chemical process plants. The metal is extremely resistant to erosion. 3. In super alloys as used in aircraft engines and spacecraft. 4. As a carbide in cutting tools and as a component of tungsten carbide and cobalt binders. Occurrences in the Pakeagama Pegmatite See also the section on Geochemistry. 54 Niobium Niobium is synonymous with the name, Columbium. Niobium is characterized by: Symbol - Nb Atomic number -41 Atomic weight - 92.91 Oxide - niobium pentoxide (NbjOs). Ppm Nb times l .43 - ppm Nb oxide. The concentration of niobium in a pegmatite setting (Pakeagama Pegmatite) in ratio to tantalum is a measure of the evolution of the mineralizing system. "Columbite- tantalite is the dominant or exclusive niobium-tantalum (NtP*Ta) mineral of moderately fractionated pegmatites. It is only in complex pegmatites where the association of tantalum (Ta^b) minerals becomes conspicuously diversified" (Anthony, 2000). The tantalum content in the samples collected during 2001 (Tables Iff) is consistently greater than the niobium content. See Tantalum for further discussion. The average price for niobium pentoxide from concentrate between 1995 and 1998 was S3.00US per pound. The price for ferroniobium between 1989 and 1999 increased from S6.58US per pound to S6.88US per pound. Niobium (columbium) is a refractory metal that conducts heat and electricity well and is characterized by a high melting point, resistance to corrosion and ease of fabrication. Its main use is as ferroniobium for alloying steel and as a superalloys Other uses are in the glass industry, for superconductive magnets, in cutting tools, in nuclear reactor fuel tubes and in high temperature applications for the aerospace industry. 55 Gallium (Ga) A rare earth metal. Atomic Number: 31- immediately below aluminum in the Periodic Table. Atomic Weight: 69.72 Specific gravity: 5.907 at 20 degrees Celsius. Melting Point: about 30 degrees Celsius. Boiling Point: 2,403 degrees Celsius. It is a bluish-grey or silvery white element Widely distributed in nature but occurs only in tiny amounts in any of the minerals that contain it. It is obtained from zinc ores, bauxite and some iron ores. Only a portion of the gallium in zinc ores and bauxite is recoverable, and the average gallium content for these sources is approximately 50 parts per million. The metallurgical process required to recover gallium from hosts such as the Pakeagama Pegmatite is recommended for future study. It is important to note that gallium is obtained from the Tanco. Lepidolite Zone. The average gallium content in the North Wall Zone is 43.2 grammes per tonne and in the Stacked Aplite zone 47 g/t where it ranges between 22 and 85 ppm. thus giving credence to a potential gallium recovery at Pakeagama Lake, along with other rare earth elements.

Uses: As a backing for special optical mirrors. In high temperature thermometers. Non-poisonous substitute for mercury in dental alloys. Telecommunications industry. Gallium arsenide is used in microwave diodes and in high temperature transistors. Gallium arsenide is also used in consumer applications such as displays for digitsl computers and hand-held calculators. The 1998 price for gallium was about S540US per kilogram. The United States of America does not keep a stockpile of the element on hand. World production of gallium for 1999 is estimated as 75,000 kilograms with Australia, Kazakhstan and Russia as the largest producers. 56 Rubidium (Rb) An alkali metal. Atomic Number: 37 Atomic Weight: 85.47 Melting point: 39 degrees Celsius. It is a silvery white, metallic element and has properties very similar to those of potassium. Rubidium forms no known minerals in which it is the predominant metallic element. Rather, it substitutes for potassium in a number of minerals, especially those that crystallize late in the formation of pegmatites. The element is widely distributed in small quantities in nature. The chief source is carnallite, which is a massive, granular, greasy, milk white, soluble, hydrous, magnesium-potassium chloride (KMgCl}.6H2O). Lepidolite, a potassium-lithium mineral, may contain up to 3.15*^0 rubidium. The cesium mineral, pollucite, may contain up to 3.15*5-6 rubidium. Rubidium-bearing minerals are mined as by- or co-products of other pegmatite minerals. In the United States of America, some production of rubidium came from imported lepodolite ore. Canada is thought to be the main source for rubidium products. In 2000, a l-gram ampoule of 99.8*^ grade Rb was offered at S79.70US. One hundred grams of the same material was offered at S998.00US, which equates to S9980.00US7kilogram. Rubidium is used in electronic and medical applications, and it is interchangeable with cesium because of their similar properties. 57 Cesium (Cs) An alkali metal, ppm Cs times l .06 ^ ppm Atomic Number: 55 - immediately below rubidium in the periodic table. It is highly reactive. Atomic weight: 132.91 It is silvery white in colour. Data on the production of cesium is not available. The only potential ore mineral for cesium is the cesium aluminsilicate, pollucite (Cs4Al4Si9.H2O), which is found in zoned pegnmatites in association with the lithium minerals lepidolite and petalite. A 160-metre long cesium geochemical anomaly is present in the Holmquistite Granite (with a contained pollucite-bearing dike) that bounds the Pakeagama Pegmatite on the southwest (figure 5, table 10). The granite contains the lithium mineral, holmquistite and is likely to represent a roof pendant lying above additional pegmatite. The cesium anomaly is defined by cesium values ranging between 129 and 1020 ppm. The cesium content for a l-metre long channel sample from the North Wall Zone of the Pakeagama Pegmatite is as much as 1250 parts per million. World resources for cesium have not been estimated, but there is an estimated reserve base of 110,000,000 kilograms with 70,000,000 of these being in Canada. The properties of cesium and its compounds are quite similar to those of rubidium and its compounds, and they are interchangeable in many applications, which include research and development, electronic, photoelectric and medical uses. The price paid for cesium varies inversely as the amount ordered. In 2000, l gram of 99.98*^ cesium metal was valued at S63.30US. The price for a 100 grams from the same company was S956.00US. The United States of America is 100*^ export reliant for the supply of cesium with Canada, and to a lesser amount Germany and the United Kingdom, being the main suppliers. 58 Lithium (Li) Atomic Number: 3 Atomic Weight: 6.941 Melting Point: 179 degrees Celsius. Boiling Point: 1,317 degrees Celsius. A silvery white, metallic element of the alkali group. Lithium is never found uncombined in nature. Combined, it is found in small amounts in nearly all igneous rocks and in the waters of many mineral springs. The most important lithium-bearing minerals are: lepidolite, spodumene, petalite and amblygonite. The lithium content of channel samples from the core zone of the Pakeaagama Pegmatite averages A.62% over 13.2 metres. The production of lithium from countries such as Canada and Australia is in the form of concentrates. Because lithium is corrosive, it requires special handling. It has found use in the following applications. * Heat transfer. * Alloying agent. * Nuclear applications. * In battery anodes. * In special glasses and ceramics. Spodumene concentrate is reported to be valued at S340.00US per ton for the specialty glass industry. * Lithium bromide is used in air conditioning. * Lithium stearate is used as an all-purpose, high temperature lubricant. * Medicines. Lithium metal is priced at about S300.00US per pound. 59 Germanium (Ge) Atomic Number: 32 Atomic Weight: 72.59 Specific Gravity: 5.32 at 20 degrees Celsius. Melting Point: 937.4 degrees Celsius. Boiling Point: 2,830 degrees Celsius. Soluble in hot sulphuric acid and aqua regia. A greyish-white, rare metallic metal that occurs in a few minerals, coal and zinc deposits. The main uses for germanium,, which has superb properties as a semiconductor, are in the manufacture of solid rectifiers or diodes in microwave detectors and transistors. The concentration in the Pakeagama Pegmatite is generally less than 10 ppm. Price: About S l, l SOUS per kilogram.

Tin (Sn) Atomic Number: 50 Atomic Weight: 118.69 Specific gravity: 7.3 at 20 degrees Celsius. Tin is a soft, faintly bluish-white metal, which is malleable at ordinary temperatures and becoming brittle at high temperatures. It is found I several minerals but the only ore mineral is cassiterite. The main use for tin is as a coating to protect iron and copper, in tin foil and as an alloy in bronze. Grades A, B and C tin have to be at least 99*^0 pure.

Beryllium (Be) Atomic Number: 4 Atomic Weight: 9.01 Specific gravity: 1.85 Melting Point: 1280 to 1300 degrees Celsius A light, steely silvery-white element. The pure metal is difficult to extract from minerals. Used as windows in X-Ray tubes, fibre optics, and alloys resistant to stress. Recent prices are in the S160 OOUsper pound.

Thallium (Tl) Atomic Number: 81 Atomic Weight: 204.4 Specific Gravity: 11.85 at 20degrees Celsius Melting Point: 305.5 degrees Celsius A rare metallic element that is silvery white but changes to bluish grey in air. Used In alloys and low temperature glass Semiconductor and transmission equipment Radiation devices Price: In the S580.00US per pound range. 60

REFERENCES AND SELECTED BIBLIOGRAPHY Anthony, E. G., 2000. Assessment report on recent work on the Pakeagama Lake Pegmatite .....In House Report.

Ayres, L.D., 1970. Setting Net Lake area, District of Kenora (Patricia Portion): Ontario Dept. Mines, P. 538 (revised), Scale 1:15,840.

Ayres, L.D., 1972a. Northwind Lake area, District of Kenora (Patricia Portion): Ontario Dept. Mines, P. 756, Scale 1:15,840.

Ayres, L.D., 1972b. Setting Net and Northwind Lakes areas, District of Kenora (Patricia Portion): Ontario Dept. Mines, MP. 53, pp. 6-13.

Breaks, F.W., Tindle, A.G., and Smith, S.R., I999a. Rare-metal mineralization associated with the Berens River - Sachigo Subprovincial boundary, northwestern Ontario: Discovery of a new zone of complex-type, petalite subtype pegmatite and implications for future exploration: Ontario Geol. Surv., MP 169, pp. 168-182.

Breaks, F.W., Tindle, A.G., and Smith, S.R., 1999b. Continued Field and Laboratory Investigation of Highly Evolved, Complex-Type, Petalite Subtype Rare-Element Mineralization in the Berens River-Sachigo Subprovince Boundary Zone: in Summary of Field Work and Other Activities, 1999 Ontario Geol. Surv., Open File Report 6000, pp. 26 1-26.12.

Cerny, P., 1989a. Characteristics of pegmatite deposits of tantalum, pp. 195-233 in Moller, P., Cerny, P., and Saupe, F. (eds.), Lanthanides, tantalum and niobium, Society for Geology Applied to Mineral Deposits, Spec. Pub. 7, Springer-Verlag.

Cerny, P., 1989b. Exploration strategy and methods for pegmatite deposits of tantalum, pp. 274-302 in Moller, P., Cerny, P., and Saupe, F. (eds.), Lanthanides, tantalum and niobium, Society for Geology Applied to Mineral Deposits, Spec. Pub. 7, Springer- Verlag.

Cerny, P., 199la. Rare-element granitic pegmatites, Part I: Anatomy and internal evolution of pegmatite deposits, pp. 29-48, in Sheahan, P.A. and Cherry, M.E., (eds.) Ore Deposit Models, Vol. II, Geoscience Canada.

Cerny, P., I99lb. Rare-element granitic pegmatites, Part II: Regional to global environments and petrogenesis, pp. 49-62, in Sheahan, P.A. and Cherry, M.E., (eds.) Ore Deposit Models, Vol. II, Geoscience Canada.

Cerny, P., Ercit, T.S., and Vanstone, P.T., 1996. Petrology and Mineralization of the Tanco rare-element pegmatite, southeastern Manitoba, Geol. Assoc. Can.-Min. Assoc. Can., Joint Ann. Mtg., Field Trip Guidebook A3,63p. 61

Cemy, P., and Meintzer, R.E., 1988. Fertile granites in the Archean and Proterozoic fields of rare-element pegmatites: crustal environment, geochemistry and petrogenic relationships; pp. 170-207, in Taylor, R.P., and Strong, D.F. (eds.), Recent Advances in the geology of granitic-related mineral deposits, CIM Spec. Vol. 39, 445p.

Cemy, P., Trueman, D.L, Zielhke, C.V,, Goad, B.E., and Paul, B.J., 1981. The Cat Lake-Winnipeg River and Weksuko Lake pegmatite fields, Manitoba, Man. Dept. Energy and Mines, Econ. Geol. Report ER80-1.

Cooper, D.G., 1964, The geology of the Bikita pegmatites, in Geology of Some Ore Deposits in Southern Africa, Vol. 2, p. 441-462.

Corfu, F., and Stone, D., 1998. Age, structure and orogenic significance of the Berens River composite batholiths, western Superior Province, Can, Jour. Earth Sci., v.35, pp. 1089-1109.

Ecological Stratification Working Group, 1998. A national ecological framework for Canada: Agriculture and Agri-Food Canada, Research Branch, Centre for Land and Biological Resources Research and Environment Canada, State of Environment Directorate, Ecozone Branch, Ottawa/Hull.

Emerald Fields Resource Corporation: Unpublished company information circular, 5p.

Houston Lake Mining Inc., 1999a. Houston Lake Options New Rare Metals Discovery, Company Press Release, March 29, 1999,

Houston Lake Mining Inc., 1999b. Channel Samples Confirm Pakeagama Lake Potential, Company Press Release, November 29, 1999.

Houston Lake Mining Inc., 2000. Exploration Update on the Pakeagama Lake and Tib Lake Projects, Company Press Release, January 18,2000.

Houston Lake Mining Inc., 2000. Check Assays Confirm Economically Significant Results on Pakeagama Lake Rare Metals Property, Company Press Release, May 31, 2000.

Levinson, A. A., 1980. Introduction to Exploration Geochemistry, 2nd Ed., Applied Publishing Ltd., Wihnette, Illinois, 924 p.

Morteani, G., and Gaupp, R., 1989. Geochemical Evaluation of the Tantalum Potential of Pegmatites, pp.303-310, in Moller, P., Cerny, P., and Saupe, F. (eds.), Lanthanides, tantalum and niobium, Society for Geology Applied to Mineral Deposits, Spec. Pub. 7, Springer-Verlag.

Pollard, P.J., 1989. Geochemistry of Granites Associated with Tantalum and Niobium Mineralization., pp. 145-168, in Moller, P., Cemy, P., and Saupe, F. (eds.), Lanthanides, tantalum and niobium. Society for Geology Applied to Mineral Deposits, Spec. Pub. 7, Springer-Verlag. 62 Siriunas, J.M., 1999. Report on the Pakeagama Lake Rare-Element Pegmatite in the Berens River Area of Northwestern Ontario, Houston Lake Mining Inc. Unpublished company report.

Smith, S.R., Tindle, A.G., Kelley, S.P., and Breaks, F.W., 1999. Laser 40Ar739Ar thermochronology of Archean rare-element pegmatites; Separation Lake belt and Berens River-Sachigo subprovtnce boundary zone: in Summary of Field Work and Other Activities, 1999 Ontario Geol. Surv., Open File Report 6000, pp. 29.1-29.12.

Sons of Gwalia Limited, 1998. 1997 Annual Report, Unpublished company report.

Sons of Gwalia Limited, 1999. 1998 Annual Report, Unpublished company report.

Stilling, A., Cerny, P. And Vanstone, PT., 1999. Bulk composition of the Tanco rare- element pegmatite, southeastern Manitoba and its petrological significance, p. 112, in Geol. Assoc. Can., Joint Ann. Mtg., Abstr. Vol. 24.

Stone, D., 1998. Precambrian geology of the Berens River area, northwest Ontario, Ont. Geol. Surv., OFR5963, I16p.

Stone, D., Fogal, R., and Fitzsimon, S., 1993. Precambrian geology, Whiteloon Lake, Ont. Geol. Surv. Map P.3224, Scale l :50,000.

Tindle, A.G., 1999. N. W. Ontario Rare-Element Pegmatites, Microprobe Report 1999, Pakeagama Lake, Preliminary unpublished report.

Tindle, A.G., Breaks, F. W., and Selway, J. B., 2000. Compositional Evolution of Tourmaline in Petalite-Subtype Pegmatites from the Pakeagama Lake and Separation Lake Areas of N. W. Ontario, Canada (under editorial review for the Canadian Mineralogist). 63

CERTIFICATE

l, ROBERT Kenneth Germundson of 110 Hyland Drive, Sudbury, Ontario, P3E 1R6, do hereby declare that l:

am a member of the Association of Geoscientists of Ontario,

received a BSc in Geology from the University of Alberta in 1958.

received an MSc in Geology from the University of Alberta in 1960.

received a PhD in geology from the University of Missouri in 1965.

personally supervised and took an active part in the exploration programme that is described in this report on the Pakeagama Pegmatite.

have no interest, nor do l intend to receive any, in Houston Lake Mining Inc.

~y\truths Robert Kenneth Germundson February 18, 2001 Certificate of Qualifications

I, E. Grayme Anthony, of 816 - 1601 Paris Street, Sudbury, Ontario, Canada P3E 5N3 do hereby certify that:

1) I hold a Bachelor of Science degree in Geology (Specialization) from Concordia University in Montreal, Quebec (1983) and a Masters in Business Administration from the University of Western Ontario in London, Ontario (1986).

2) I am registered as a Professional Geoscientist in the Province of British Columbia and am qualified for the practice of professional geology. I am also a Fellow of the Geological Association of Canada. Both qualifications are in good standing.

3) I have practiced my profession for 19 years as a geologist and consultant since graduation.

4) I have based my comments contained in this report on my knowledge of geology, geochemistry and mineral deposits, on various referenced reports, previous experience on the property and on two visits during the course of the reported field work to the Pakeagama Lake property.

5) I do not hold an interest in the property. However, I do hold an interest in Houston Lake Mining Inc. in the form of common shares and stock options.

Dated February 18, 2002 in the City of Sudbury, Ontario..

E. Grayme AnthoW^© B.SC. Geo/., P. Geo., F.G.AC., M. B. A. Qua//©ty Ana/ys/s... /nno vati ve Technologies

Invoice No.: 22536 Work Order: 22772 Invoice Date: 10-SEP-Ol Date Submitted: 31-JUL-01 Your Reference: HOUSTON 2001-1 Account Number: H005

HOUSTON LAKE MINING 2892 WHITE ST. VAL CARON, ON en S P3N 1B2 ATTN: GRAHAM ANTHONY

CERTIFICATE OF ANALYSIS

116 ROCKS(PREP.REV3.2! were submitted for analysis.

The following analytical packages were requested. Please see our current fee schedule for elements and detection limits.

REVISED REPORT 22536R CODE 5B-INAA (INAAGEO . REV1) REPORT 22536 B CODE 5D-LI-TOTAL DIGESTION ICP(TOTAL.REV2) REPORT 22536 C CODE 4C1-NB, SN-XRF PRESSED PELLET o K) REPORT 22536 D CODE 8-LI ASSAY (ASSAY .REV1) O REPORT 22536 E TA-ICP/MS - INAA REPORT 22536 F BE - ICP REPORT 22536 G NB - ICP/MS

REPORT 22536 RPT.XLS GA, GE, TL - ICP/MS

NOTE: THE ATTACHED REVISED REPORT SUPERSEDES THE PREVIOUS REPORT SENT. EDITING ERRORS CORRECTED.

This report may be reproduced without our consent. If only selected portions of the report are reproduced, permission must be obtained. If no instructions were given at time of sample submittal regarding excess material, it will be discarded within 90 days of this report. Our liability is limited solely to the analytical cost of these analyses. Test results are representative only of material submitted for analysis.

CERTIFIED BY :

FEB l l 2002 /, L GEOSCIENCE ASSESSMENT DR E.HOFFMAN/GENERAL MANAGER ACTIVATION LABORATORIES LTD. l 336 Sandhill Drive, Ancaster, Ontario Canada L9C 4V5 TELEPHONE +1.905.648.9611 or+1.888.228.5227 FAX +1.905.648.961 3 E-MAIL [email protected] ACTLABS CROUP WEBSFTE http://www.actlabs.com Activation Laboratories Ltd. Work Order: 22772 Report: 22536R

Sample ID Cs Rb Ta Mass ppm ppm ppm g

M 752501 723 4290 106 1.476 M 752502 884 4790 253 1.719 M 752503 759 4340 163 1671 M 752504 843 4330 191 1.547 M 752505 898 4790 197 1778 M 752506 1020 5610 180 1706 M 752507 940 4410 170 1673 M 752508 1010 4620 131 1.789 M 752509 655 5340 74.6 1519 M 752510 783 5300 72.6 1.507 M 7525 11 1050 4800 123 162 M 752512 1100 5060 156 1.781 M 752513 430 1800 409 1.706 M 752514 1250 6360 116 1699 M 752515 744 7980 498 1.296 M 7525 16 1140 10600 40 1487 M 75251 7 1200 7400 485 1589 M 752518 152 2220 35 1801 M 752519 215 2620 899 1691 M 752520 216 3100 72.6 1558 M 752521 145 1530 913 1643 M 752522 200 2820 73.4 1.506 M 752523 141 2200 77.5 1776 M 752524 138 2160 77.6 1697 M 752525 112 2080 324 1.747 M 752526 106 1620 215 1.759 M 752527 138 2680 20.5 1.494 M 752528 103 1620 13.9 1.79 M 752529 114 2030 232 1.59 M 752530 177 2140 32 1644 M 752530(PULP DUP) 192 2320 318 1661 M 752531 101 1580 57.5 1.504 M 752532 55 884 251 1682 M 752533 288 6050 645 1,395 M 752534 220 4380 172 1.6 M 752535 231 3890 296 1706 M 752536 64 873 328 1682 M 752537 365 3230 71.7 1.617 M 752538 420 5240 846 1604 M 761751 917 8040 67.5 1 486 M 76 1752 764 6940 365 1447 M 761753 1150 10300 684 1472 M 76 1754 319 2270 13.2 1.683 M 76 1755 1060 5300 396 1615 M 761756 985 6590 212 1.483 M 761757 442 3330 835 1787 M 76 1758 606 3750 171 1676 M 761759 544 4590 57.1 1.637 M 761760 630 4610 983 156 M 761761 697 3800 92.8 155 M 761762 478 2200 112 1607 M761762(PREPDUP) 458 2120 112 1.704

Page 1 of 3 Activation Laboratories Ltd. Work Order: 22772 Report: 22536R

Sample ID Cs Rb Ta Mass ppm ppm ppm g

M 76 1763 470 2740 131 1.781 M 761764 321 1950 272 1723 M 761774 1280 5460 122 1 809 M 761776 191 1130 53 1.567 M 761777 266 2650 19.4 1.739 M 761778 185 2260 168 1.684 M 761779 116 2020 135 1 498 M 76 1780 246 3930 132 1617 M 761781 104 2120 145 1707 M 761782 106 2100 896 1.603 M761782(PULPDUP) 109 2170 865 1652 M 76 1783 98 1960 116 1.716 M 76 1784 41 623 80.5 1 804 M 761785 95 2030 649 1.683 M 76 1786 229 5960 234 1.544 M 761787 102 2200 26.9 1.693 M 761788 196 6030 119 1.491 M 76 1789 83 784 60.3 1.709 M 761790 201 2550 668 15 M 761791 219 4070 362 1671 M 76 1792 209 2360 69.4 1653 M 761793 141 1380 789 1696 M 76 1794 333 2970 154 1586 M 761795 398 3040 113 1.482 M 761796 227 2250 117 1448 M 76 1797 274 3690 724 1843 M 76 1798 334 3280 49.1 1.841 M 761799 204 1130 132 1.774 M 761800 782 9540 123 149 M 761801 995 9160 168 166 M 761802 965 10100 142 1.587 M 761803 907 4780 159 1607 M 761804 745 6140 166 1.401 M 76 1805 826 10900 339 1444 M 761806 949 7080 188 1755 M 76 1808 9 121 151 1402 M 761809 235 1290 27.3 1.624 M 761811 24 763 8.7 1521 M 760774 70 304 1.4 1.56 M 760775 56 320 1.2 1566 M 760776 33 204 16 1451 M 760776(PULP DUP) 33 214 1.5 1.503 M 760777 360 2470 52 1573 M 760778 13 228 1.4 1.565 M 760779 11 229 1.2 1506 M 760780 74 282 1.1 1501 M 760781 478 1990 2.7 1638 M 760782 168 260 1.2 1.494 M 760784 224 1080 1.9 1625 M 760785 188 577 1.6 1.643 M 760788 129 209 1.3 1567 M 760791 277 484 25 1553

Page 2 ol 3 Activation Laboratories Ltd. Work Order: 22772 Report: 22536R

Sample ID Cs Rb Ta Mass ppm ppm ppm g

M 760792 667 2720 -05 1498 M 760793 1020 2880 597 1 529 M 760794 128 253 1 4 1533 M 760796 413 559 1.4 1659 M 760797 19 183 0.9 1.51 M 760798 78 214 2 1.502 M 760798(PULP DUP) 76 218 2 1 596 M 760812 25 513 589 1 564 TAN-1-11 830 2690 2390 025 TAN-1-10 840 2730 2380 0252 TAN-1-9 826 2750 2360 0252 TAN-1-8 869 2780 2360 0252 TAN-1-7 821 2700 2360 0.251 TAN-1-6 841 2800 2360 0.255 TAN-1-5 844 2740 2360 0251 TAN-1-4 830 2700 2410 0252 TAN- 1-3 839 2760 2360 0253 TAN-1-2 834 2800 2360 0.256 TAN-1-1 830 2800 2410 0257

TAN-1 Cert. 830 2700 2360

Page 3 of 3 Activation Laboratories Ltd. Work Order No. 22772 Report No. 22536B

©Near Total© Digestion Analysis SAMPLE Li ppm M 752542 y999 M 752543 9999 M 752544 9999 M 752545 9999 M 752546 9999 M 752547 9999 M 752548 9999 M 752549 9999 M 752550 9999

G-2 cert 34 G 2 23 SDC-1 cert M SDC-1 47 DNC-1 cert 5J, DNC-1 6 SCO-1 cert 45 SCO-1 55 GXR-6 cert 32 GXR-6 24 GXR-2 cert 54 GXR-2 54 GXR-1 cert 8.2 GXR-1 15

Note: Certificate data underlined are recommended values; other values are pioposed except those preceded by a "(" which are information values. Barite, gahnite, chromite, cassiterite, zircon, sphene, and magnetite may not be totally dissolved

Clients are advised to obtain assays lor Ag^lOO ppm and Pb*5GQO pprn due to potential solubility pionkms Values forCu, Ni, Zn, Mo greater than \©ft) should be assayed it accuracy better than*/ 10 l^ is required Values above ^ are (or informational purposes only and should not be relied upon for promotional or ore reserve calculations. Assays are recommended tor this purpose Adrienne l Rittau, B Se Chem Sulphur will precipitate m samples containing massive sulphides [ ICP Technical Manager

Negative values indicate less than the reporting li Page l of l 99999 mdtcates greater than lG-% 8/28/01 9999 indicates greater than l *JE, 1:54 AM Activation Laboratories Ltd. Work Order: 22772 Report: 22S36C

Sample Mb Sn ppm ppm

752501 51 147 752502 106 113 752503 81 108 752504 85 111 752505 97 120 752506 75 160 752507 69 131 752508 56 119 752509 21 77 752510 32 83 75251 1 50 149 752512 65 145 752513 17 64 752514 51 194 752515 11 40 752516 3 35 752517 14 86 752518 30 74 752519 68 99 752520 50 88 752521 66 66 752522 49 73 752523 44 65 752524 41 86 752525 20 58 752526 29 43 752527 21 28 725228 25 45 752529 27 41 752530 38 90 752531 46 72 752532 22 53 752533 71 132 752534 24 62 752535 25 43 752536 25 33 752537 66 104 752538 31 40 761751 27 50 761752 14 50 761753 4 38 761754 4 19 76)755 16 59 761756 40 468 761757 45 145 761758 103 82 761759 32 76 761760 49 196 761761 54 145 761762 46 135 761763 57 196 761764 84 258

Page 1 of 3 Activation Laboratories Ltd. Work Order: 22772 Report: 22536C

Sample Nb Sn ppm ppm

761774 36 114 761776 16 1259 761777 14 234 761778 44 296 761779 32 268 761780 48 549 761781 64 663 761782 46 268 761783 49 145 761784 30 112 761785 25 91 761786 21 39 761787 20 57 761788 12 34 761789 25 176 761790 43 127 761791 21 84 761792 41 127 761793 51 63 761794 70 199 761795 80 208 761796 65 66 761797 40 84 761798 41 211 761799 50 2044 761800 21 101 761801 37 164 761802 22 134 761803 59 135 761804 46 93 761805 8 25 761806 67 102 761808 151 9 761809 24 37 761811 46 19 760774 11 8 760775 11 5 760776 11 5 760777 12 43 760778 11 6 760779 11 7 760780 9 5 760781 10 27 760782 11 7 760784 11 12 760785 9 8 760788 9 10 760791 9 9 760792 11 46 760793 32 169 760794 11 9 760796 12 7

Page 2 of 3 Activation Laboratories Ltd. Work Order: 22772 Report: 22536C

Sample Nb Sn ppm ppm

760797 9 6 760798 12 9 760812 36 38

(Standards) Sample Nb Sn AGV-1 15 <5 AGV-1 15 <5 AGV-1 Cert. 15 42 AC-E 112 14 AC-E 113 15 GXR-1 <2 53 GXR-1 Cert. 08 54 OKA-1 3342 <5 OKA-1 3347 <5 OKA-1 Cert. 3700 MP-2 90 432 MP-2 89 433 MP-2 89 434 MP-2 Cert 430

Page 3 of 3 Activation Laboratories Ltd. Work Order No. 22772 Report No. 22536D

Li Assay Analysis SAMPLE Li Li20

M 752542 2 16 464 M 752543 2.25 4.84 M 752544 1.89 4.07 M 752545 2.36 5.08 M 752546 1.98 426 M 752547 2.30 4.96 M 752548 2.44 5.24 M 752549 2.28 4.90 M 752550 1.86 401

MA-N cert 0.49 MA-N 048 1.04 MA-N 0.47 l 02

Li std expected 1.88 4.04 1.92 4.13 Li std expected 376 8.09 3.79 8.15 Li std expected 7 52 16.18 7.51 16.16

Adrienne l. Rittau, ICP Technical Manager

Page l ol l 9/7/01 3:19 PM Activation Laboratories Ltd. Work Order: 22772 Report: 22536E

Fusion New Count ICP/MS INAA Sample ID Ta Ta ppm ppm

M 752501 114 112 M 752502 221 255 M 752503 182 165 M 752504 618" 194 M 752505 187 197 M 752506 186 180 M 752507 200 170 M 752508 128 132 M 752509 90 79.1 M 752510 80 773 M 752511 138 128

" These fusion ICP/MS values are done on O 2 gram samples and this value may represent "nugget" effect. These values are provided for your information only

Page 1 of 1 Activation Laboratories Ltd. Work Order No. 22772 Report No. 22536F

SAMPLE Be ppm M 752501 232 M 752502 224 M 752503 141 M 752504 781 M 752505 735 M 752506 312 M 752507 481 M 752508 702 M 752509 78 M 752510 312 M 752511 346 M 752512 879 M 75251 3 249 M 752514 288 M 752515 56 M 752516 50 M 75251 7 117 M 75251 8 119 M 75251 9 147 M 752520 104 M 752521 184 M 752522 159 M 752523 82 M 752524 84 M 752525 47 M 752526 83 M 752527 56 M 752528 32 M 752529 63 M 752530 77 M 752530(PULP UP) 79 M 752531 85 M 752531/R 78 M 752532 27 M 752533 190 M 752534 149 M 752535 103 M 752536 69 M 752537 189 M 752538 61

Xafienne l? Rittau, B.Se©, C./ tiem ICP Technical Manager

Negative values indicate less than the reporting limit Page 1 of 4 LOI values less than -O Q©1% represent a Gain on Ignition 9/6/01 Activation Laboratories Ltd. Work Order No. 22772 Report No. 22536F

SAMPLE Be ppm M 761751 209 M 761752 191 M 761753 11 M 761754 127 M 761755 77 M 761756 215 M 761757 271 M 761758 516 M 761759 90 M 761760 69 M761760/R 70 M 761761 57 M 761762 181 M 761762 (PREP DUP) 174 M 761763 106 M 761764 304 M 761774 235 M 761776 751 M 761777 804 M 761778 529 M 761779 148 M 761780 75 M 761781 157 M 761782 103 M 761782 (PULP DUP) 121 M 761783 82 M 761783/R 80 M 761784 58 M 761785 86 M 761786 48 M 761787 104 M 761788 25 M 761789 250 M 761790 297 M 761791 238 M 761792 102 M 761793 81 M 761794 159 M 761795 209 M 761796 188 M 761797 82 M 761798 128 M 761799 463 M 761800 7 M 761801 140 M 761802 128

Negative values indicate less than the reporting limit Page 2 Of 4 LOI values less than -O 0114 represent a Gain on Ignition 9/6/01 Activation Laboratories Ltd. Work Order No. 22772 Report No. 22536F

SAMPLE Be ppm M 761803 255 M 76 1804 58 M 761 805 23 M 761806 220 M 761808 3 M 761 809 11 M 761 811 4 M 760774 2 M 760775 3 M 760776 2 M 760776 (PULP DUP) 2 M 760777 11 M 760778 2 M 760779 2 M 760780 2 M 760781 12 M 760782 3 M 760784 7 M 760785 3 M 760788 11 M 760791 7 M 760792 13 M 760793 31 M 760794 4 M 760796 3 M 760797 2 M 760798 3 M 760798 (PULP DUP) 3 M 761 799 426 M 760812 277

SY3 CERT 20 syenite SY-3/C 22 MRG-1 CERT 0.61 gabbro MRG-1/B105 1 W-2 CERT 1.3 diabase W-2/C -1 DNC-1 CERT 1 dolerite DNC-1/C -1 BIR-1 CERT 0.58 basalt BIR-1/C -1 G-2 CERT 2Jj granite G-2/C 3 NBS1633bCERT fly ash NBS 1633WC 13 STM-1 CERT 96 syenite

Negative values indicate less than the reporting limit Page 3 of 4 LOI values less than -fl.01% represent a Gain on Ignition 9/6/01 Activation Laboratories Ltd. Work Order No. 22772 Report No. 22536F

SAMPLE Be ppm STM-1/C 9 IF-G CERT 4.7 iron form sample IF-G/C 5 FK-N CERT 1 K-feldspar FK-N/C 1

Note: Certificate data underlined are recommended values; other values are proposed except those preceded by a "(" which are information values.

Synthetic Be Standards 334 ppm Be 327 563 ppm Be 563

Negative values indicate less than the reporting limit rage 4 of 4 LOI values less than -O 0114 represent a Gain on Ignition 9/6/01 Activation Laboratories Ltd. Work Order # 22772 Report #225366

Sample Nb ICP/MS

M752502 123 M752503 96 M752504 112 M752505 104 M752506 91 M752507 90 M752508 59 M752509 22 M752510 35 M752511 56 M752512 77 M761800 45 M761801 54 M761802 36 M761803 77 M761804 77 M761805 12 M761806 87

Page 1 of 1 22536RPT.XLS

Uilhogeocham(Standard Package) Job*: 22772 Report* 22536 Customer: Houston Lake Mining Contact: G. Anthony Trace Element Values Are In Parts Per MiKon Negative Values Equal Not Detected at That Lower Limit Sample ID. Ga Ge Tl M 752501 47 7 302 M 752502 69 10 394 M 752503 49 7 278 M 752504 58 9 316 M 752505 62 8 312 M 752506 69 9 455 M 752507 55 7 21 4 M 752508 54 8 384 M 752509 28 7 382 M 752510 42 9 588 M 752511 63 8 25.1 M 752512 64 8 361 M 752513 31 6 132 M 752514 75 8 547 M 752515 33 7 594 M 752515 rep 35 8 550 M 752516 42 9 105 M 752517 46 11 876 M 752518 32 4 192 M 752519 46 5 208 M 752520 40 4 206 M 752521 44 6 135 M 752522 39 4 150 M 752523 39 6 935 M 752524 41 5 164 M 752525 26 5 219 M 752526 25 3 136 M 752527 23 4 261 M 752528 25 3 110 M 752529 23 4 248 M 752530 35 3 133 M 752530(PULP DUP) 35 4 209 M 752531 37 4 114 M 752531 rep 35 5 135 M 752532 24 3 690 M 752533 34 5 698 M 752534 26 3 36 1 M 752535 25 4 48 3 M 752536 22 3 688 M 752537 38 5 34 l M 752538 25 5 524 M 761751 34 8 106 M 761752 23 6 607 M 761753 28 9 140 M 761754 19 6 29 a M 761755 39 9 770 M 761756 42 8 528 M 761757 38 6 354 M76175S 33 6 299 M 761759 30 7 565 M 761760 39 8 553 M 761760 rep 39 8 65 1 M 761761 37 5 346 M 761762 42 6 221 M 761762 (PREP DUP) 42 6 191 M 761763 44 6 201 M 761764 50 8 180 M 761774 53 10 611 M 761776 26 3 770 M 761777 46 4 221 M 761778 49 4 152 M 761779 41 5 174 M 761780 85 5 249 M 761781 50 4 176 M 761782 49 5 209 M 761782 (PULP DUP) 45 5 244

Page 1 of 3 22536RPT.XLS

Lithogeochem (Standard Package) Job tt: 22772 Report*: 22536 Customer: Houston Lake Mining Contact: G. Anthony Trace Element Values Are in Parts Per Milon Negative Values Equal Not Detected at That Lower Limit Sample ID Ga Ge Tl M 76 1783 45 4 134 M 76 1783 rep 44 4 185 ji 761784 29 3 3 32 M 76 1785 32 6 214 M 761786 28 4 579 M 76 1787 25 4 198 M 761788 27 4 549 M 761789 31 5 7.77 M 76 1790 36 3 6 68 M 761791 28 5 40 9 M 761792 32 4 197 M 761793 32 5 130 M 761794 48 5 181 M 761795 52 6 254 M 76 1796 42 6 229 M 76 1797 38 6 431 M 76 1798 44 5 23 1 M 76 1799 31 4 795 M 761800 42 9 101 M 761801 51 7 563 M 76 1802 46 9 101 M 76 1803 39 5 28 1 M 761804 45 9 63 2 M 76 1805 31 7 738 M 76 1806 55 9 63 1 M 761808 36 5 1 24 M 761809 21 4 118 M761811 25 2 5 35 M 760774 16 1 245 M 760775 17 1 235 M 760776 17 1 1 56 M 760776 (PULP DUP) 16 1 0 90 M 760777 17 2 24 5 M 760778 16 1 1 39 M 760779 17 1 1 54 M 760780 15 1 213 M 760780 rep 15 1 1 99 M 760781 15 2 175 M 760782 15 1 226 M 760784 16 1 683 M 760785 16 1 476 M 760788 15 1 125 M 760791 16 2 446 M 760792 15 1 17 B M 760793 29 5 214 M 760794 15 1 141 M 760796 16 1 684 M 760797 15 -1 073 M 760798 15 1 1 36 M 760798 (PULP DUP) 16 1 1 36 M 7608 12 57 6 242 GXR-3 18 114 299

Control Material W2 18 2 01 Certified W2 20© (1.0) (02) Control Material MRG-1 18 1 -01 Certified MRG-1 17 0.06

Blank -1 -1 -01 Calibration Standard MAG1 23 1 04 Certified MAG1 204© (059) Calibration Standard BIK 1 16 2 01 Certified BIR1 16 15 (001) Catbration Standard DNC1 15 1 -01 Certified DNC1 15 (1.3) (0026)

Page 2 of 3 22536RPT.XLS

Uhogeochem (Standard Package) Job H: 22772 Report* 22536 Customer: Houston Lake Mining Contact: G. Anthony Trace Element Values Are in Parts Per Millon Negative Values Equal Not Detected at That Lower Limit Sample ID: Ga Ge Tl Calibration Standard GXR-2 38 -1 1D Certified GXR-2 37 1.03 Calibration Standard LKSD-3 16 1 05 Certified LKSD-3 Catbration Standard MICA Fe 94 3 132 Certified MICA Fe 95© 32 16 Calibration Standard GXR1 14 4 06 Certified GXR1 14 (0.39) Catbration Standard SY3 31 2 15 27© Certified SY3 1.4 1.50 Calibration Standard STM1 36 1 03 Certified STM1 36© (1.4) 026 Catbration Standard IFG1 1 20 -01 Certified IFG1 0.7 24 002

NOTt. "© s RECOMMENDED VALUtS © ( )© - INFORMATION VALUES ALL OTHER VALUES ARE PROPOSED

NOTE WE RECOMMEND USING OPTION 4BI FOR ACCURATE LEVELS OF BASE ME TALS Cu.Pti.2n.Ni.Ag AND OPTION 4S-INAA FOR At.Sti, HIGH WXOOPPM AND Cf*IOOOPPM, AND Sn^SOPPM BY CODE iO VALUES FOR THESE f ( EMEHTS PROVIDED BY tCP/MS ARE ORDER OF MAGNITUDE ONl V AND ARE PROVIDED FOR GENERAL INFORMATION MINERALIZED SAMPLES SHOULD HAVE THE QUANT OPTION SELEC1ED OR REQUEST ASSAYS f OR VALUES WHICH EXCEED THE HANGE OF OPT ION 481

Certified By,

D D©Anna, Dipl T ICPMS Technical Manager. Activation l aboratones Ltd Date Received July 31. 2001

;ep[ in full w.thoul m* ppioval of [li* litior*lory Dale Reported. August 28. 2001

Page 3 of 3 XRAL Laboratories XRAL A Division of SGS Canada Inc.

1885 Leslie Street Don Mills, Ontario Canada M3B 3J4 CERTIFICATE OF ANALYSIS Work Order: 065032

To: Houston Lake Mining Inc. Attn: E. Grayme Anthony Date 13/09/01 2892 White Street VAL CARON ON/CANADA/P3N 1 B2

Copy 1 to

P.O. No. Project No. IMo. of Samples 18 C. Rock Date Submitted 31/08/01 Report Comprises Cover Sheet plus Pages 1 to 3

Distribution of unused material: Pulps: Discarded After 90 Days Unless Instructed!!! Rejects: Discarded After 90 Days Unless Instructed!!!

Certified By li J" Dr. Hugh^e Souza, General Manager XRAL Laboratories

ISO 9002 REGISTERED

Subject to SGS General Terms and Conditions

Report Footer: L.N.R. = Listed not received l. S. = Insufficient Sample n.a. = Not applicable = No result *INF = Composition of this sample makes detection impossible by this method M after a result denotes ppb to ppm conversion, afc denotes ppm to Vo conversion

SGS Member of the SGS Group (Societe Generate de Surveillance) XRAL Laboratories XRAL A Division of SGS Canada Inc.

Work Order: 065032 Date: 13/09/01 FINAL Page l of 3

Element. Cs Nb Rb Ta Method. XRF7 XRF7 XRF? XRF7 Det.Liin. 5 225 t : mis. ppra ppm ppm ppm

VI752502 838 154 4150 242 M752503 865 111 4980 142 M752504 860 154 3780 262 M752505 932 134 4650 182 M752506 1030 152 5210 250

M752507 1020 116 4440 192 M752508 1110 108 4940 148 M752509 700 90 6040 213 M7525IO 091 77 5490 56 M75251 l 1110 119 5070 181

M752512 1080 114 5070 131 M7f,lSOO 779 116 8520 100 M7filS()l 880 157 7520 619 M761S02 772 120 8260 176 M761S03 903 86 4140 123

M761804 729 99 6000 102 V1761S05 698 102 9210 41 M761806 882 121 5720 174 "Dup V1752502 834 154 4150 242 "Du p M761801 881 157 7520 488

@ SGS Member of the SGS Group (Societe Generate de Surveillance) XRAL Laboratories XRAL A Division of SGS Canada Inc.

Work Order: 065032 Date: 13/09/01 FINAL Page 2 of 3

Element. Be Ga Ge Sb Sn Tl Method. MS90 MS90 MS90 MS90 MS90 MS90 Det.Lim. 1 1 0.5 0.1 t 0.1 Units. ppm ppm ppm ppm ppm ppm

M752502 323 56 10.9 5.6 124 24.6 M752503 78 54 10.8 5.7 108 26.8 M752504 651 42 8.3 3.5 135 18.5 VI752505 1060 58 9.7 4.5 165 26.4 M752506 297 52 10.5 3.4 159 26.1

M752507 754 55 10.7 3.2 212 26.8 M752508 946 52 10.1 3.7 187 28.2 M752509 88 27 9.3 7.9 119 43.8 M752510 420 32 8.8 9.7 119 44.5 M752511 541 52 9.4 16.4 137 22.0

V1752512 513 48 6.8 6.8 184 28.3 M7fi 1800 30 35 9.4 7.5 212 67.0 M761801 163 45 10.3 6.0 263 54.7 M761S02 108 43 10.8 5.8 208 64.2 M7fil803 254 31 6.9 5.1 176 22.3

VI76181)4 83 33 8.1 5.9 67 40.8 "*2 VI76I805 29 7.6 6.3 25 57.8 M761806 113 40 7.9 3.9 95 28.8 -Dup M752502 331 54 10.3 5.7 133 24.3 : Dup M761801 178 47 10.1 6.4 276 56.7

Member of the SGS Group (Societe Generate de Surveillance) XRAL Laboratories XRAL A Division of SGS Canada Inc. Work Order: 065032 Date: 13/09/01 FINAL Page 3 of 3

(Clement. Li Method. ICP90 Dut.Lim. 10 Units. ppm

M752502 5310 M752503 5970 M752504 5350 M752505 5870 M752506 6400

M752507 5660 M752508 5910 M752509 2470 M752510 4900 M7525L1 5670

M752512 8280 M761800 2080 M761801 4340 V1761802 3180 M761803 4810

M761804 2190 M761805 731 M761806 3980 "Dup M752502 4850 "Dup M76180L 4810

© SGS Member of the SGS Group (Societe Generate de Surveillance) ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES Work Report Summary

Transaction No: W0220.00317 Status: APPROVED Recording Date: 2002-FEB-20 Work Done from: 2001-JUN-26 Approval Date: 2002-JUN-04 to: 2001-JUL-27

Client(s): 111562 BRADY, JOHN GREGORY 301804 HOUSTON LAKE MINING INC. 303602 EMERALD FIELDS RESOURCE CORPORATION

Survey Type(s): ASSAY GEOL PMAN

Work Report Details Perform Applied Assign Reserve Claim* Perform Approve Applied Approve Assign Approve Reserve Approve Due rjate KRL 1166872 SO SO 325,400 S25.400 SO 0 30 SO 2006-MAR-22 KRL 1232441 363,555 363,555 SO SO 343,440 43,440 320,115 320,115 2007-JUL-30 KRL 1233617 SO SO 318,040 318,040 SO 0 30 SO 2005-FEB-23

363,555 363,555 343,440 343,440 343,440 343,440 320,115 320,115

External Credits: SO

Reserve: S20,115 Reserve of Work Report*: W0220.00317

S20,1 15 Total Remaining

Status of claim is based on information currently on record.

53C11SW2005 2.23023 PAKEAGAMA LAKE 900

2002-Jun-10 08:57 Armstrong-d Page 1 of 1 Ministry of Ministere du Northern Development Developpement du Nord and Mines et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE Date: 2002-JUN-06 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

HOUSTON LAKE MINING INC. Tel: (888)415-9845 2892 WHITE STREET Fax:(877)670-1555 VAL CARON, ONTARIO P3N1B2 CANADA

Submission Number: 2.23023 Transaction Number(s): W0220.00317 Dear Sir or Madam

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time. The corrections required were received within the 45 days specified in the notice. If you have any question regarding this correspondence, please contact LUCILLE JEROME by email at [email protected] or by phone at (705) 670-5858.

Yours Sincerely,

Ron Gashinski Senior Manager, Mining Lands Section

Cc: Resident Geologist Assessment File Library John Gregory Brady Houston Lake Mining Inc. (Claim Holder) (Claim Holder)

Houston Lake Mining Inc. Emerald Fields Resource Corporation (Assessment Office) (Claim Holder)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:17130 MINING LAND TENURE

pnrwiHcuu. MN IM MAP

Date /Time of Issue Jul202D01 08:53h Eastern

TOWNSHIP/AREA PLAN

PAKEAGAMA LAKE AREA Q-1842

ADMINISTRATIVE DISTRICTS l DIVISIONS Mining Division Red Lake Land Titles/Registry Division KENORA Ministry of Natural Resources District RED LAKE

TOPOGRAPHIC LAND TENURE

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LANO TENURE WITHDRAWALS

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--•ri IMPORTANT NOTICES I -J ^I'^H'^ " i J u-.k.l.,..t,J

LAND TENURE WITHDRAWAL DESCRIPTIONS

IMPORTANT NOTICES

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General Information and LlmNations WM^on** md wnrHH **t*,ntn**m,*J* Dthai f ttfro* Mi Ciewt. Uln rulrfo Ntid i**nr* ftM W (f*.** flttM iMulna drini np nol h* ft0m MgHil 4 Mi wiltfit mm* PittfntMl MIMi| Ruvdiii1 Cfllti amtnaMiKitiv DntnnlHinDeuBU|Hn*ii wriHnH WD Hi. Houston Lake Mining Inc. Pakeagama Lake Property CLAIM #1 232441 Red Lake Mining District N Ontario. NTS 53C/11

f Detailed Geology of the Pakeagama Lake Pegmatite SCALE Showing Sample Locatons Distanca In Metres l 1+00 NE — 500m ' R. Ken Germundson October, 2001 — 1+00 NE From: E. G. Anthony Timberwolf Explorations Inc July, 2000

Detailed Grid ______; t 3b \

DETAILED MAPPING LOCATION WITHIN CLAIM # 1232441. \

s 752743 0+50 NE — s s 752741X 752742 / [3d / ^ **?9S l { KL 1232441

SIV 3b ——3a,. s ; 6N S ,3c ^ ^ ^ \ s / 3bV.*~ -^o* ^v S r+ooNW 0+00 NW S l Base line for claim grid 7 W 2a s 2a s 760591 2a S 2a ^ 2a 2a ) ^x x ' 760575 3b 760594 #760593 • 760585 A 760578 /~\ V —— —* X (1*760592 760581

2a -3f Legend Channel Samples /L 1-752501 to 752514 3: Pakeagama Lake Pegmatite parallel OGS spls. 760588 760582 3a - Stacked Aplite Zone 2-761800 to 761806 X -3g 3B - K-Feldspar-Spodumene-Quartz Zone 3- 752542 to 752550 3c - Potassic Pegmatite 4- OGS Channel 3d - Spodumene-Quartz Core Zone 5-761774 3g, pollucite 3e - Wall Zone 6-752515 to 752517 x^760584 ,3g 3f-Aplite Dikes 7-761751 to 761756 \*} 3g - Potassic Pegmatite dikes 8-761757 to 761759 9-761760 to 761764 2: Pakeagama Lake Granite 10-761776 to 761788 "2a - Garnet-Muscovite-Biotite Granite 11-761789 to 761793 A 475 metres west 2a - Holmsquistite Granite 12-761794 to 761797 150 metres north of * Holmquistite Samples 13-761798 to 761799 #2 Witness Post * Anomalous sample 14- OGS Channel 15-752518 to 752526 v 760598 1+00 SW 16-752527 to 752529 v^ o m sp 17-752530 to 752538