MINERAL TITLES BRANCH VANCOUVER, B.C.

APR 2 9 *013

L.t.

FILE NO. GEOLOGICAL AND GEOCHEMICAL REPORT

ON THE

MAHOOD SOUTH CLAIMS (#831575, #831573, #831578, #839412, #845022, #853834, #853837)

MAHOOD LAKE AREA, BC

NTS 92P/16

KAMLOOPS MINING DIVISION m o EVENT NUMBER 5423992

« O BY

g H DW RIDLEY

JANUARY 2013 a g u So

o Mineral Titles Online 1.7.4 Page 1 of 2

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Mineral Claim Exploration and Development Work/Expiry Date Mineral Claim Change Exploration and Development Recorder: RIDLEY, DAVID WAYNE (122739) Submitter: RIDLEY, DAVID WAYNE (122739) Work/Expiry Date Recorded: 2012/DEC/31 Effective: 2012/DEC/31 Change D/EDate: 2012/DEC/31 13 Select Input Method M Select/Input Tenures Confirmation B Input Lots isd Link Event Numbers If you have not yet submitted your report for this work program, your technical work report is due in 0 Data Input Form 90 days. The Exploration and Development Work/Expiry Date Change event number is required with your report submission. Please attach a copy of this confirmation page to your report. Contact Ed Upload Report Mineral Titles Branch for more information. S3 Review Form Data ia3 Process Payment Event Number: 5423992 Si Confirmation Work Type: Technical Work Geochemical, Geological, PAC Withdrawal Cup to 30% of technical work Technical Items: performed)

* Main Menu Work Start Date; 2012/SEP/01 Search for Mineral / Work Stop Date: 2012/NOV/10 Total Value of Work: $ 12748.00 Placer/Coat Titles Mine Permit No: > Search for Reserve Sites * View Mineral Tenures Summary of the work value: * View Placer Tenures New # of View Coal Tenures Applied Sub• Good Good Days Area Tenure Claim Issue Work mission To To For• in Number Name/Property Date Value Fee Date Date ward Ha •* MTO Help MAHOOD SOUTH Download Spatial Data 831575 2010/aug/16 2012/dec/31 2013/dec/31 365 498.53 $ 2492.65 $0.00 2 Free Miner Landowner 2012/dec/31 2013/dec/31 365 498.63 $ 2493.16 $ o.oc Notification 831573 MAHOOD SOUTH 2010/auq/16 MAHOOD SOUTH 831578 2010/aug/16 2012/dec/31 2013/dec/31 365 498.87 $ 2494.37 $0.00 3 MAHOOD SOUTH 839412 2010/dec/01 2012/dec/31 2Q13/dec/31 365 359.28 J 1796.39 $0.00 4 MAHOOD SOUTH 845022 2011/jan/29 2012/dec/31 2013/dec/31 365 339.34 $ 1696.68 $0.00 5 853834 MAURY 1 2011/may/oa 2013/may/OS 2013/dec/31 237 498.74 $ 1619.19 $0.0C 853837 MAURY 2 2011/may/0G 2013/may/0a 2013/dec/31 237 59.84 $ 194.28 $0.00

Financial Summary:

Total applied work value:$ 12786.72

PAC name: dave ridtey Debited PAC amount: $ 38.72 Credited PAC amount: $ 0.0

Total Submission Fees: $ 0.0 Total Paid: $0-0 TABLE OF CONTENTS

Summary 1

Location and Access 1-2

Claim Status 2

Property History 2-3

Regional Geology 4

Property Geology 4-5

2012 Rock Sampling 5-6

2012 Contour Soil Sampling 6-7

Conclusions 7

Recommendations 7

Cost Statement 8

References 9

Statement of Qualifications 10

FIGURES

FIG. 1 Property Location FIG. 2 Regional Geology FIG. 3 Property Geology and 2012 Rock Sample Locations FIG. 4 Geology and Rock Sampling Magnetite Zone FIG. 5 2012 Contour Soil Geochemistry (Cu-Zn-Ni-Fe-As)

APPENDICES Rock Sample Description Sheets Sample Analysis Certificates SUMMARY

The Mahood South mineral property consists of 138 contiguous cell units in 7 claim blocks situated south of Mahood Lake and approximately 35 kilometers north-northwest of Clearwater, BC. The claims are underlain to the west by metamorphosed pillow basalts, basaltic flows, and lesser chert and argillite of the Fennel Formation. Folded and faulted carbonaceous phyllites and quartzites and lesser greenstone, quartz-sericite-pyrite schist, and felsic fragmental units of the Eagle Bay Assemblage occur to the east. The ground was acquired to test the potential for volcanogenic massive sulphide and/or precious metal bearing vein systems such as those known to occur in similar rocks to the southeast between Clearwater and Barriere; the most notable examples are Chu Chua massive sulphide deposit and the past producing Windpass-Sweethome gold mine (Minfile 092P140,092P039 and 092P040).

Three zones of interest were outlined during last year's work program; the Magnetite Zone has many similarities to the Chu Chua deposit including altered and bleached(?) greenstones, pyritic chert and local float of massive magnetite; the Felsic Fragmental Unit contains elevated lead-silver-gold-arsenic values within felsic fragmental and rhyolitic flow rocks enclosed in carbonaceous to graphitic phyllites and argillite; the Maury Zone consists of a poorly defined northerly striking vein system with potential economic concentrations of lead, zinc, silver, and gold.

The Mahood south claim group is underlain by Fennell Formation meta-pillow basalt, meta-basalt, and greenstone which are in apparent fault contact with complexly folded Eagle Bay Assemblage meta-sedimentary and lesser meta-volcanic rocks. The contact zone is marked by more or less caroonatized and/or altered melange of the above units with quartz-carbonate-mariposite schist occupying the assumed structural hanging wall. This zone has potential to host an economic gold-bearing listwanite deposit and was the target of this work program. No gold mineralization was found, however, highly anomalous arsenic values were detected in soils down slope from the listwanite outcrops. Steep terrain coupled with heavy forest cover render prospecting slow and tedious. Detailed prospecting should be concentrated upslope from the arsenic soil anomalies.

LOCATION AND ACCESS

The Mahood South property is situated approximately 50 kilometers northwest of Clearwater on BC highway 5 or about 75 kilometers northeast of on BC highway 97. The easiest and most direct access is from Clearwater via the old Clearwater Timber Products main haul road (Mann creek road) to Coldscaur Lake then via arterials northeasterly past Double, Sicily and Italia lakes to a road junction at Ejas Lake. The northerly trending main is taken to the Maury and Felsic Fragmental showing areas. The newly constructed Mahood Forest Service road leaves the main near Sicily Lake and provides access to the Magnetite zone as well as the northern portion of the property.

1 The property is within the Interior Wet Belt bio-geoclimatic zone and situated in Nahalliston Highland physiographic region. Elevations range from 820 meters in lower Maury creek to 1520 meters on hilltops north of Maury Lake. Many of the north-facing slopes are very steep with local bare rock cliffs and talus slopes particularly above the Magnetite zone. The area has undergone fairly substantial logging activity resulting in a good road system and numerous clear cuts scattered throughout the property. Logging activity scrapes moss and thin overburden from outcrops and exposes bedrock in new road cuts and burrow pits. Forested areas are well covered with dense stands of sub- alpine fir, spruce and lesser douglas fir, lodgepole pine, red cedar, aspen, and white birch. Younger stands tend to be dense thickets of juvenile conifers with a heavy under growth of woody rhododendron, willow, and thick patches of devil's club in the wetter sections.

CLAIM STATUS The Mahood South mineral property consists of 138 contiguous cell units (2753.23 hectares) in seven claim blocks held by DW Ridley of Eagle Creek, BC and jointly owned by D Black of Canim Lake BC. A Statement of Work was filed December 31, 2012 and is related to work set out in this report (Event #5423992). Pertinent claim information is listed below.

Claim Name Record No. Date Located ***GoodToDate*** Mahood South 831573 2010/aug/16 2013/dec/31 Mahood South 2 831575 2010/aug/16 2013/dec/31 Mahood South 3 831578 2010/aug/16 2013/dec/31 Mahood South 4 839412 2010/dec/01 2013/dec/31 Mahood South 5 845022 2010/jan/29 2013/dec/31 Maury 1 853834 2011/may/08 2013/dec/31 Maury 2 853837 2011/may/08 2013/dec/31

***pendin g assessment report approval***

PROPERTY HISTORY

The earliest recorded work dates fromth e spring of 1897 when several individuals pooled their interests to form the "Mahood Lake Mining Company Limited Liability". Five separate mining properties were said to be involved, the Deception, Snowslide, Mahood, Summit and Hardscramble mineral claims. Certified affidavits of work were recorded at Clinton during 1898 and 1899 although the details of said work remainunknown . Mining law at that time stipulated that a mineral claim required a visible mineralized showing which "a frugal man might work for profit". Therefore it is likely that at least four mineralized showings remain to be found in the Mahood Lake area.

7. The Minister of Mines Annual Report for 1924 states "Wm Spring has located a group of claims on the south side of Mahood Lake. A sample at this point consisting of quartzose- irony looking material assayed 0.6 ounce/ton gold, 1 ounce/ton silver, and 0.3% copper." This occurrence is Minfile number 092P028 however it has not been located or sampled since 1924. It is possible this is one of the earlier 1890's locations.

In 1966 lead-silver bearing quartz float with reported values up to 10.68% lead and 950 grams/ton silver was found during road construction south of Maury Lake. This led to staking a number of claims followed by recon soil sampling which indicated local anomalous copper-lead-silver-zinc values (A.R. #6622). Aquitane of Canada Ltd conducted airbourne geophysical surveys and drilled a single hole through a northwesterly trending conductor immediately north of Ejas Lake (DDH G-78-1). This hole intersected a narrow 6 inch (15 cms.) interval of massive pyrrhotite within graphitic schist and phyllite. Later analysis of this section and its enclosing pyrrhotite-rich black phyllite host was found to be lowly anomalous in gold and silver. This sparked renewed interest in the area.

In 1984 Kidd Creek Mines Ltd conducted linecutting, geological mapping, soil sampling, VLF-EM and ground magnetometer surveys (A.R. #13362). Felsic fragmental rocks with coincident Pb-Zn-Ag-Ba soil values were mapped west of Maury Lake. Further work was highly recommended however the claims were allowed to lapse. The ground was partially re-staked by BP Resources as the SB 1-8 mineral claims in 1985 and an integrated geophysics program was conducted (A.R. #15187). Again further work was recommended and the claims were allowed to lapse.

In 1995 D and C Ridley prospected the area as part of C Ridley's Prospecting Assistance Grant (95/96 P101). This work located several old blast trenches and pits north of Maury Lake and immediately south of the main road (Minfile 092P190). The trenches are blasted into quartz-sericite schist and grphitic phyllite cut by quartz-carbonate-sulphide veins. The best sample returned 4865 ppm lead and 21 ppm silver.

The area was revisited in 2001 as part of D Black's Prospecting Assistance Grant (01/02P-30). The area was prospected and the old trenches were mucked out and sampled. This resulted in discovering several new areas of interest including massive pyrrhotite float north of the old trenches, barite-pyrite-quartz outcrop and subcrop associated with past anomalous base metal soil geochemistry, and "high-grade" mineralization at the Maury showing. A grab sample fromth e Maury trenches returned 2.35% lead, 3556 ppm zinc, 237 ppm silver, 907 ppb gold (PAG Report 01/02 P-30).

Between 2006 and 2007 Ridley and Black conducted limited soil surveys around the Maury showing. This work indicated good potential for two parallel structures at the Maury showing (A.R. #28980 and # 29664).

Since then extensive logging and establishment of tens of kilometers of new access roads led to a re-evaluation of the area and acquiring the present property between 2010 and 2011. Three main areas of interest were outlined in last year's work program (A.R. #32,568).

REGIONAL GEOLOGY

Regional scale geological mapping was carried out by Campbell and Tipper in 1971 at a scale of 1:250,000 (GSC Memoir 363). The area south of the claims was more recently mapped by Schiarizza et al in 2001 (in BCMEMPR Paper 2002-1).

The Mahood South property is situated east of the faulted contact between Mesozoic Nicola Group island arc volcanic, related intrusive and sedimentary rocks which are thrust easterly over Paleozoic Fennell Formation pillow basalts, basaltic flows, gabbro, and lesser chert with carbonaceous sedimentary layers. Fennell rocks are well exposed on Mt. Mahood and can be traced along the western edge of the property from Ejas Lake to the northern boundary where they are poorly exposed and covered by glacial drift. Fennell rocks are thrust easterly over Cambrian and older Eagle Bay Assemblage consisting of graphitic phyllite, quartzite, quartz-sericite-pyrite phyllite, quartz-muscovite phyllite, lesser impure limestone, meta-pyroclastics and locally cut by rhyolite to aplitic dykes related to the Raft batholith of Cretaceous age. These rocks are tentatively correlated to Unit EBP of Schiarizza and Preto (1987) based on overall structural position and stratigraphic similarities.

All the above units have been variably intruded by Cretaceous or younger granodiorite, granite and quartz-feldspar porphyry related to the Raft batholith, a large east-west elongated zoned pluton outcropping just south of the property. This intrusive body hosts several old molybdenum showings mainly adjacent the southern batholith contact In addition, Fennell and Eagle Bay rocks are well known hosts to mineralized vein systems and significant VMS deposits along strike to the south (Schiairizza and Preto, 1987).

PROPERTY GEOLOGY

The Mahood south claim group is underlain by Fennell Formation meta-pillow basalt, meta-basalt, and greenstone which are in apparent fault contact with complexly folded Eagle Bay Assemblage meta-sedimentary and lesser meta-volcanic rocks. The contact zone is marked by more or less carbonatized and/or altered melange of the above units with quartz-carbonate-mariposite schist occupying the assumed structural hanging wall, This zone has good potential to host an economic gold-bearing listwanite deposit. The area is well covered by glacial debris particularly on lower slopes and areas of gentle topography. Outcrop is generally scarce and best exposed in road cuts, recent logging clear cuts and steeper slopes.

The Fennell Formation outcrops around the entire eastern edge of the property forming an arc-shaped contact with underlying Eagle Bay rocks. The Fennell rocks consist of a thick sequence of monotonous greenstones interspersed periodically with diorite to gabbro dykes, sills and possibly flow units. Pillow structures were not observed on the property although they are common further to the west. Bedding is generally not well developed but where seen it tends to parallel the trace of the assumed thrust fault separating Fennell from Eagle Bay rocks as depicted by Campbell and Tipper (1971).

At the Magnetite zone on Mahood South mineral claim (#831573), Fennell greenstones are disrupted by a prominent white to light grey weathering sill-like body of quartz- feldspar porphyry, quartz-eye rhyolite, aphanitic rhyolite and lesser white to smoky-grey siliceous pyritic chert. This north-northeast trending body dips moderately to the east, is up to 200 meters wide and has been traced along strike for over one kilometer. Bleached and altered greenstone lies within this unit and appear as paritially digested blocks and discontinuous lenses. Euhedral pyrite and small red garnets are ubiquitous with the felsic rocks as are glassy quartz veins and stringers. Schiarizza and Preto observed a similar felsic unit occupying the same overall stnictural position in Fennell rocks near the Chu Chua copper-zinc deposit (Minfile #092P140).

The thrust is marked by a 200-300 meter wide section of more or less altered (carbonatized) and imbricated greenstones, chert, carbonaceous phyllite and quartz- carbonate-mariposite schist. Rocks in this section characteristically weather a light orange colour due to iron carbonate alteration (ankerite-siderite). Locally this section is cut by quartz-carbonate and/or magnesite veins and stockworks and contains minor cubic pyrite and trace magnetite.

Eagle Bay Assemblage rocks underlie the bulk of the property and have been tentatively assigned to Unit EBP as outlined by Schiarizza and Preto (1987). This is due its general structural position and overall similar stratigraphy. Dark grey to black carbonaceous to graphitic phyllite and light grey to brown quartzite are the predominent rock types on the property. These are inter-bedded with lesser felsic meta-volcaniclastic, quartz-sericite- pyrite schist and chlorite-quartz-magnetite schist units. The dark phyllites are intensely folded along the assumed thrust fault trace adjacent the western edge of the unit. All rocks are variably cut by quartz-feldspar porphyry and fine grained rhyolitic to aplitic dykes and/or sills. These are most likely related to the Cretaceous Raft batholith which forms extensive outcrops just south of the property.

2012 ROCK SAMPLING

During the 2012 field season a total of six rock samples were collected and analyzed for 30 elements by Acme Analytical Labs in Vancouver BC. Sample locations are plotted on Figure 3 and 4 whereas sample description sheets and analysis certificates are included in the appendix.

Two samples were taken from the northern portion of the property near the end of the main access road. Outcrop exposed along the road and in the ditch consists of fine• grained black phyllite cut by rusty weathering milky white quartz veins up to 15 cm wide.

S Remnant bedding is evident at 040/60NW with fine wispy inter-beds of milky quartz 1-3 mm in thickness interspersed through a matrix of black to dark grey fine grained sediments. Two float samples consisting of cross-cutting, rusty weathering, milky-white quartz with minor galena and pyrite returned 1262 ppm lead and 11.3 ppm silver (MS12DR1,2). One day was spent prospecting the area however no other outcrop was seen.

Four rock samples were collected in and around the Magnetite zone. The first consists of magnetite-rich rusty brown to black, fine grained, micaceous floatan d returned 28.38% iron, 55.7 ppm selenium, 119 ppm copper, 54 ppm zinc, and 2.9 ppm silver (839000). This material carries similar geochemical values to other magnetite-rich float boulders in the area and is believed to be related to them. Two rock samples were collected from meta-diorite or meta-conglomerate? outcrops at the crest of the ridge above the fault zone. Vuggy quartz veins are common and contain minor euhedral well-weathered cubes of pyrite and blobs of black magnetite (SM12DR3,4).

A single rock sample was taken within the altered fault zone and similar material was seen over a large area. Preliminary mapping indicates the fault to be about 200 meters wide, traceable for at least 1.5 kilometers along strike and open beyond that. The fault zone is characterized by interbedded or possibly imbricated, more or less altered, greenstone, black phyllite and lesser chert and quartz-carbonate-mariposite schist. Pervasive carbonatization is characterized by prominent orange-brown weathering of iron carbonate minerals, euhedral pyrite cubes and accompanying magnesite and\or quartz- carbonate veining. A grab sample of this highly altered material about midway through the fault returned 4.94% iron, 1502 ppm manganese, 18.8 ppm arsenic, 17.53% calcium and 3.33% magnesium (SM12BK1).

2012 CONTOUR SOIL SAMPLING

A contour soil line was run about the 1050 meter elevation near the base of the steep westerly facing slope. The start point is approximately at UTM coordinate 68294IE; 5753469N and was run 500 meters to the north and 400 meters to the south. Sample locations are plotted on Figure whereas sample description sheets and analysis certificates are included in the appendix. A total of nineteen soil samples were collected at 50 meter intervals along the line. Sample material from 2+50S to the north end at 0+500N consisted of light orange-brown to red, sandy-clay, BF horizon material with small "nuggets" of magnetite. South of 2+50S the soil changed to light grey till intermixed with abundant talus fragments of overlying phyllites.

6 A cluster of anomalous nickel-iron-arsenic values occurs between 0+050N to 0+200N and returned values of242-289 ppm nickel, 5.12%-6.23% iron and 71-170 ppm arsenic. A single spot anomaly at 0+300N returned highly anomalous values of 145 ppm zinc, 433 ppm nickel, 55.1 ppm cobalt, 5.55% iron, 142.7 ppm arsenic, 263 ppm chromium and 1.11% magnesium. A sample at 3+00S returned 85.1 ppm copper, 180.6 ppm nickel, 5.33% iron and 30.3 ppm arsenic. Gold (10.1 ppb) was detected at 0+150N.

CONCLUSIONS

Based on a compilation of past data and the results of this work program it can be concluded that Fennell oceanic rocks are separated from Eagle Bay continental shelf derived sediments by a low angle easterly dipping thrust fault. This structure is pervasively altered by carbonatization imparting a distinctive rusty-orange weathering to underlying rocks and in particular greenstones. Local zones of "listwanitic" alteration (quartz, Fe carbonates, mariposite and pyrite) occur along the upper or hanging wall of the thrust. Anomalous arsenic soil geochemistry has been detected downslope from the listwanite and within the altered fault zone.

RECOMMENDATIONS

Further work is recommended for the area in the form of detailed prospecting, geological mapping and rock sampling above the arsenic soil anomalies. Particular attention should be paid to quartz and quartz-carbonate vein systems within the listwanite altered zones. Identification of arsenic sulphide minerals could lead to economic gold-silver mineralization within the larger fault system

7 FINANCIAL STATEMENT

Wages: D. Ridley; 8 days @ $450/day $3600.00 D. Black; 7 days @ $375/day $2625.00

Transportation: Truck Rental; 15 days @ $100/day $1500.00 ATV Rental; 15 days @$60/day $ 900.00

Food and Accommodation: Room and Board; 15 days @ $80/day $1200.00

Sample Analysis: 19 soil samples® $18.36each $348.99 6 rock chip samples @ $23.74 each $ 142.52

Shipping: $ 31.00

Field Supplies: $ 25.00

Report Preparation: $2000.00

Total Expenditures: $12748.00

Debited PAC amount (D. Ridley) $ 38.72

Total Applied Work Value: $12786.72

a REFERENCES

Bloodgood MA, 1990; Geology of the Eureka Peak and Spanish Lake Areas, BC; BCMEMPR Paper 1990-3.

Campbell RB and Tipper HW, 1971; Geology of the Bonaparte Lake Area, 92P; GSC Memoir 363.

Campbell RB, 1978; Geolgy of the Quesnel Lake Area, 93A; GSC Open File 574.

Crosby RO, 1977; Report on Airborne Geophysical Surveys on the Grit Mineral Claims, Clearwater River area, BC; on behalf of Aquitane Company of Canada Ltd. A.R. #6622.

Fanner R and Wynne A, 1986; Linecutting and Geophysical Surveys on the SB 1-8 mineral claims; A.R. #15187.

Mallaieu DG and Enns SG, 1985; Report on the Lizard claims; A.R. #13362.

McMillan WJ, 1983; CC Prospect, Chu Chua Mountain (092P08); in Geological Fieldwork 1983; pg. 37-48; BCMEMPR Paper 1984-1.

Ridley CJ, 1995; Prospecting Report on the Maury Lake Area; in BC Prospecting Assistance Grant 95/96 P-101.

Ridley DW, 2001; Prospecting Report on the South Mahood Lake Area for RD Black; BC Prospecting Assistance Grant 01/02 P-30.

Ridley DW, 2007; Prospecting Report on the Maury mineral claims; A.R. #28980.

Ridley DW, 2008; Prospecting Report on the Maury mineral claims; A.R. #29664.

Ridley DW, 2011; Geochemical and Geological Report on the Mahood South mineral claims; A.R. # 32,568. .

Schiarizza P and Preto V, 1987; Geology of the Adams Plateau-Clearwater-Vavenby Area; BCMEMPR Paper 1987-2.

Schiarizza P, Heffernan S and Zuber J, 2002;Geology of the Quesnel and Slide mountain Terranes west of Clearwater, BC; in Geological Fieldwork 2001; BCMEMPR Paper 2002-1.

Schiarizza P and Ferri F, 203; Barkerville Terrane, Lake to Wells; in Geological Fieldwork 2002; BCMEMPR Paper 2003-1.

Struik LC, 1988; Structural Geology of Cariboo Mining District, East-Central BC; GSC Memoir 421. STATEMENT OF QUALIFICATIONS

I, David Wayne Ridley, PO Box 77, Eagle Creek, BC, V0K1L0, and residing at 3547 Candle Drive, Hawkins Lake BC, do hereby certify,

1) I completed the "Mineral Exploration for Prospectors" course hosted by the BC Ministry of Mines at Mesachie Lake, BC in 1984.

2) I completed the short course entitled "Petrology for Prospectors" held in Smithers BC and hosted by the Smithers Exploration Group in 1990 and 1994.

3) I attended several short courses hosted by the Kamloops Exploration Group during the annual KEG convention and included "Metallogeny of Volcanic Arcs" (1998), "Intrusion-Hosted Gold deposits" (1999), "Massive Sulphide Deposits" (2001), "Induced Polarization Surveying for Mineral Exploration" (2008) and "Exploration for Rare Metals" (2011).

4) I have prospected independently since 1982 and have been employed by several exploration companies in BC, Alaska and Yukon Territory since 1984.

5) I participated in the 2012 work program and conducted field work described in this report.

6) I own a beneficial interest in the property.

Dave Ridley Dated at Hawkins Lake BC February 25,2013 *•* MineralTirles S, Online Mahood South Mineral Claims

John

Quesnel Williams Lake Revelstoke

Vancou^er^ratr' -VJcftjrJa

Legend

• Indian Reserves • National Parks

m Conservancy Areas • Parks • Federal Transfer Lands MTO Grid (MTO) Mineral Tenure (current) f~| Mineral Claim r~| Mineral Lease Mineral Reserves {current) I—| Placer Claim Designation I—| Placer Lease Designation |—j No Slaking Reserve I—| Conditional Reserve (—I Release Required Reserve I—| Surface Restriction I—| Recreation Area Others « First Nations Treaty Related Lands

r— First Nations Treaty Lands |—I Survey Parcels • BCGS Grid Contours (1;250K) Contour • Index Contour - Intermediate AreaoF Exclusion Arsaof Indefinite Contours Transportation - Points (TRIM)

9 Helipad Transportation - Lines (TRIM)

Scale: 1:57,672 ntqr: 51? 53' ?6" rfj^p'-b'^ This map is a jser generated static output from an Internet mapping site and is for general Notes: March 2013 reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION. MAHOOD LAKE AREA; NTS 92P\NE

GENERAL GEOLOGY Recent of ivim IwseS: flaw.

Cretaceous RsftbStttcSSi and refated etoete Triaesfc E*»ia Group veteenice Trttaefc Nteote GFCUO ifecfc phyilites PenntBnf?) Fennel Fonrtafon; pHow banolta, chert, HPSM Permian and otder£?> meta-vctew*; find sodBnente; X9ZF022 Mlnfife Number and reported

1 0 t 2 3 4

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limy phyllite MS12DR-3 G*5CCN f-i (1.5,110,0.5.2.3K /if

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S3S0Q0 £^ carbonctlzed greenstone X aid phytlite; qttcarb (-4.1,38,55^,28.4% /I and/or mogneslte veining; 1 minor py, mag 6- A o o MS126K-1 : fl8A5'l,<0.5,4.9%) qtz-carb-moriposlte schfet o 4;

o X MS12DR-4 A- [3.1,25,<0.5,lJiS o

o

4*00S Q

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access road

MAHOOD SOUTH PROPERTY (O MS12DR-3 outcrop Kam loops Mining Division; NTS072P/1& ^ (As-Ba-Se-Fe) Map Datum NAD 83; Zone 10 DW Ridley; March 2013; Figure H MS12DR-4 Geology and Rock Sampling (As-Ba-Se-Fe) 15.90.53.Z5S.Z4

4*50N - Zl ffi. 60. 3.3%. 37 4*on "" Z3.E2.IR3.tt.2B 3-SDN 3E72.70.Z.ttH 3+OQN Q 25.145. «3.5.5%. t+Z 2-50N O 40, BZ. 69.4%. 31 2-ODH 0 44.10!.Z50.5.5%.I0Z

l*50N 0 SR6LZ67.62%.B3 1*DDH 0 5a 86.242.5.1%. 71

Q+SDN OBiB5.Z8G.53X. in

D,m O 50.86.139.3.7%.40

Q*50S g 27.113.124.4.2%. 22

WIOS 3 23.94.512.1%. B

WES 7; 321)8.126.3.9%. 17

MUS 0 26.98.78.2.7%. R

2*50S 0 B. 71. S3.25%. N

3*QDS 0 B5.94. ISO. 53%. 3D

3*5DS c-j HHLflL2Jb.11 MAHOOD SOLffH MINERAL PROPERTY Kamtops Mining Division: NTS DB2P/1B VDDS 0 ft 75.39.1.9%.! DW Ridley rebnjary2DI3 FIGURE^ + end line Contour Sail Sample Locations and Geochemistry

B Q soil sample location (Cu-Zn-Ni-Fe-As) 5753DDDN (values in ppm unless slated otherwise) NAD 83: tall N ATVtral

meters fOO 75 50 Z5 D m 200 meters ^^^^ MAHOOD SOUTH MINERAL CLAIMS; 2012 Rock Sampling sample # easting northing elevation EPE comments MS12DR-1 684885 5755003 876m 8m float beside road; blk phyllite with 5 cm qtz vein; minor galena MS12DR-2 684839 5755034 892m 10m float; qtz vein 15 cm wide; tr py; rusty weathering; in blk phyllite @ 040/60NW MS12DR-3 683449 5753865 1174m 8m grab qtz-rich meta-dbrite? Up to 1% cubic py, tr mag; 240/45E MS12DR-4 683062 5753228 1145m 12m grab vuggy qtz vein in conglomerate; minor cubic py, tr mag; MS12BK-1 682969 5753312 1109m outcrop grab; qtz-carb altered gmst?; magnesite, talc, fg cubic py, tr mag; 040/38SE 839000 682689 5753452 1007m 5m float; magnetite rich micaceous schist; rusty weathering Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabs Eagle Creek BC VOX 1L0 Canada www.acmelab.com Submitted By: Dave Ridley A Bureau Veritas Group Company Receiving Lab: Canada-Vancouver Acme Analytical Laboratories (Vancouver) Ltd. Received: November 27, 2012 1020 Cordova St. East Vancouver BC V6A 4A3 Canada Report Date: December 06. 2012 PHONE (604) 253-3158 Page: 1 of 2 CERTIFICATE OF ANALYSIS VAN12005560.2

CLIENT JOB INFORMATION SAMPLE PREPARATION AND ANALYTICAL PROCEDURES

Project: Mahood South Method Number of Code Description Test Report Lab Samples Wgt(g) Status Shipment ID: Code R200-250 Crush, split and pulverize 250 g rock to 200 mesh P.O. Number 6 VAN 0.5 Completed Number of Samples: 6 1DX1 6 1:1:1 Aqua Regia digestion ICP-MS analysis VAN

SAMPLE DISPOSAL ADDITIONAL COMMENTS

DISP-PLP Dispose of Pulp After 90 days DISP-RJT Dispose of Reject After 90 days

Acme does not accept responsibility for samples left at the laboratory after 90 days without prior written instructions for sample storage or return.

Invoice To: Lodestone Explorations Co. Inc. P.O. Box 77 Eagie Creek BC V0K1L0 Canada

This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates tinai approval; preliminary reports are unsigned and should be used for reference only. All results are considered the confidential property of the dient. Acme assumes the liabilities for actual cast of analysis only. Results apply to samples as submitted, asterisk indicates that an analytical result could not be provided due to unusually high levels of interference from other elements. Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabsT M Eagle Creek BC VOX 1L0 Canada A. www4icmelab.com Project A Bureau Veritas Group Company Mahood South Report Date: Acme Analytical Laboratories (Vancouver) Ltd. December 06,2012 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604) 253-3158 Page: 2of2 Part: 1 of 1 CERTIFICATE OF ANALYSIS VAN12005560.2

memoa WOHT 1DX 1DX 1DX 10X 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX Anafyte Wgt Mo Cu Pb Zn Ag NJ Co Mn Fa As Au Th 8r Cd Sb Bl V Ca P Unit kg ppm ppm ppm ppm ppm ppm ppm ppm % ppm PPb ppm ppm ppm ppm ppm ppm % S MDL 04>1 0.1 0.1 0.1 1 0.1 0.1 0.1 1 0.01 04 M 0.1 1 0.1 0.1 0.1 2 0.01 0401 G1 Prep Blank <0.01 <0.1 2.5 2.7 47 <0.1 3.4 4.4 556 1.89 <0.5 <0.5 4.2 67 <0.1 <0.1 <0.1 36 0.44 0.080 MS12DR1 Rock 0.97 0.2 42.0 1262 33 11.3 28.1 7.0 128 1.59 <0.5 1.3 1.6 5 1.8 <0.1 25.4 21 0.05 0.013 MS12DR2 Rock 1.34 0.2 14.8 1.0 3 <0.1 2.1 1.5 97 0.82 <0.5 <0.5 <0.1 2 <0.1 <0.1 <0.1 <2 <0.01 0.003 MS12DR3 Rock 1.25 <0.1 17.8 14.3 43 <0.1 16.9 8.4 367 2.30 1.5 <0.5 8.4 14 <0.1 <0.1 <0.1 9 0.15 0.033 MS12DR4 Rock 1.27 0.1 7.6 10.6 19 <0.1 6.6 2.8 482 1.34 3.1 <0.5 2.0 27 <0.1 <0.1 <0.1 7 0.67 0.096 MS12BK1 Rock 1.39 1.9 26.6 6.3 33 <0.1 46.7 13.4 1502 4.94 18.8 <0.5 0.6 502 0.3 <0.1 <0.1 10 17.53 0.166 639000 Rock 1.26 3.4 119.3 7.2 54 2.9 2.6 0.8 187 28.38 4.1 23.9 0.3 4 0.1 <0.1 <0.1 99 0.03 0.056

TM* reportsupersede * »• previous preliminary and Unit reports wMh this Ms number dated prior to the data on this oartMcate. Signature Indicates final approval; pratmlnary reportsar e unalgnad and should ba used tor reference only. Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabsT M Eagle Creek BC VOK1L0 Canada A Bureau Veritas Group Company www4tcmelab.com Project Mahood South Report Date: December 06,2012 Acme Analytical Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604) 253-3158 Page: 2 of 2 Part 2 of 1 CERTIFICATE OF ANALYSIS VAN12005560.2

ii ii ii 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX NNVnOO 1DX 1DX 1DX 1DX 1DX Anatyta La Cr MB Ba Tl B Al Na K W Hg 8c Tl S Oa So Tl Unit ppm ppm % ppm % ppm % % % ppm ppm ppm ppm % ppm ppm ppm MDL 1 1 041 1 0401 20 041 0401 041 0.1 041 0.1 0.1 046 1 04 0J 61 Prep Blank 7 7 0.59 239 0.123 <20 0.96 0.085 0.48 <0.1 <0.01 2.2 0.3 <0.05 5 <0.5 <0J2 MS12DR1 Rock 3 24 0.56 41 0.024 <20 0.76 0.015 0.17 <0.1 <0.01 2.8 0.1 0.20 3 6.4 11.6 MS12DR2 Rock <1 6 0.03 5 0.001 <20 0.04 0.002 0.02 <0.1 <0.01 0.2 <0.1 0.16 <1 <0.5 <0.2 MS12DR3 Rock 10 12 0.58 110 0.026 <20 0.89 0.018 0.38 <0.1 <0.01 1.9 <0.1 0.19 3 <0.5 <0.2 MS12DR4 Rock 4 8 0.49 25 0.001 <20 0.56 0.017 0.03 <0.1 <0.01 1.2 <0.1 <0.05 2 <0.5 <0.2 MS12BK1 Rock 2 9 3.33 91 0.001 <20 0.16 0.014 0.06 <0.1 <0.01 5.6 <0.1 0.15 <1 <0.5 <0.2 838000 Rock 1 5 0.17 38 0.015 <20 0.11 0.003 <0.01 <0.1 <0.01 3.0 <0.1 0.05 <1 55.7 <0.2

This report supersedes H previous preeminary »nd trmi report* w«h this ret number dated prior to the date on this certfflcete. Signature Indicate* final epprovet; rjreftmlnary report* are unsigned and shouU be uMd tor reference only. Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabs Eagle Creek BC VOK1L0 Canada A. www4icmeiab.com Project A Bureau Veritas Group Company Mahood South Report Date: December 06,2012 Acme Analytical Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604) 253-3158 Page: 1of1 Part: 1 of 1 QUALITY CONTROL REPORT VAN 12005560.2

Method WOHT 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX Analyta Wgt Mo Cu Pt> Zn Ag Nl Co Mn Fa As Au Th Sr Cd 8b Bl V Ca P Unit kg ppm ppm ppm ppm ppm ppm ppm ppm % ppm ppb ppm ppm ppm ppm ppm ppm % % MDL 04>1 0.1 0.1 0.1 1 0.1 0.1 0.1 1 041 04 04 0.1 1 0.1 0.1 0.1 2 041 0401 Reference Materials STD DS9 Standard 11.1 100.7 129.1 302 1.6 38.0 7.3 551 2.26 25.9 107.8 6.0 68 2.1 5.5 6.1 38 0.65 0.063 STD OREAS45EA Standard \2 615.6 14.6 29 0.3 336.6 50.3 405 22.92 8.7 49.6 10.5 6 <0.1 0.3 0.2 277 0.11 0.027 STD OREAS45EA Expected 1.78 709 14.3 30.6 0.311 357 52 400 22.65 11.4 53 10.7 4.05 0.03 0.64 0.26 295 0.032 0429 STD DS9 Expected 12.64 108 126 317 1.83 40.3 7.6 575 2.33 25.5 118 6.36 69.6 2.4 4.94 6.32 40 0.7201 0.0619 BLK Blank <0.1 <0.1 <0.1 <1 <0.1 <0.1 <0.1 <1 <0.01 <0.5 <0.5 <0.1 <1 <0.1 <0.1 <0.1 <2 <0.01 <0.001 Prep Wash 01 Prep Blank <0.01 <0.1 2.5 2.7 47 <0.1 3.4 4.4 556 1.86 <0.5 <0.5 4.2 57 <0.1 <0.1 <0.1 36 0.44 0.080

This report supersedes si previous preamMary and flnat reports wth this (to number dated prior to the date on rn» certificate. 8lgrurtuni Indicates Snal approval; preemtnary reports are unsigned and should be used tor reference only. Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabs Eagle Creek BC VOK1LO Canada A. Project A Bureau Veritas Group Company wwrwjicmelab.com Mahood South Report Date: December 06,2012 Acme Analyticai Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604) 253-3156 Page: 1of 1 Part: 2 of 1 QUALITY CONTROL REPORT VAN 12005560.2

Method 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 10X Analyte La Cr MB Ba Tl B Al Na K W Hg Sc Tl 8 Oa Sa Tt Unit ppm ppm % ppm % ppm % % % ppm ppm ppm ppm % ppm ppm ppm MDL 1 1 041 1 0401 20 041 0401 041 0.1 041 0.1 0.1 046 1 04 0J Reference Materials STD DS9 Standard 10 115 0.60 320 0499 <20 0.87 0.073 0.37 2.7 0.17 2.0 5.1 0.17 4 5.2 5.0 STD OREAS45EA Standard 6 814 0.09 158 0.083 <20 2.86 0.022 0.05 <0.1 <0.01 75.1 <0.1 <0.05 11 <0.5 <0.2 STD OREAS45EA Expected 8.19 849 0.095 148 0.106 3.32 0.027 0.053 0.34 78 0.072 0.044 11.7 2.09 0.11 STD DS0 Expected 13.3 121 0.6165 330 0.1108 0.9577 0.0853 0.395 2.89 0.2 2.5 5.3 0.1615 4.59 5.2 5.02 BLK Blank <1 <1 <0.01 <1 <0.001 <20 <0.01 <0.001 <0.01 <0.1 <0.01 <0.1 <0.1 <0.05 <1 <0.5 <0.2 Prep Wash Q1 Prep Blank 7 7 0.56 239 0.123 <20 0.96 0.085 0.48 <0.1 <0.01 2.2 0.3 <0.05 5 <0.5 <0.2

This report supersedes el prtvloui preeminary and Anal reportswit h this fee number dated prior to the date on thlf oartticete. Signature Indicates Inal approval; preeminary reportsar e unsigned «nd shouki ba used tor reference only. Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabs Eagle Creek BC VOK 1L0 Canada www.acmelab.com A Bureau Veritas Group Company Submitted By: Dave Ridley Receiving Lab: Canada-Vancouver Acme Analytical Laboratories (Vancouver) Ltd. Received: November 27, 2012 1020 Cordova St. East Vancouver BC V6A 4A3 Canada Report Date: December 04, 2012 PHONE (604) 253-3158 Page: 1 of 2 AN 12005561.1

CLIENT JOB INFORMATION SAMPLE PREPARATION AND ANALYTICAL PROCEDURES

Project: Mahood South Method Number of Code Description Test Report Lab Shipment ID: Code Samples Wgt(g) Status P.O. Number Dry at60C 19 Dry at 60C VAN Number of Samples: 19 SS80 19 Dry at 60C sieve 100g to -80 mesh VAN 1DX1 19 1:1:1 Aqua Regia digestion 1CP-MS analysis 0.5 Completed VAN SAMPLE DISPOSAL ADDITIONAL COMMENTS DISP-PLP Dispose of Pulp After 90 days DISP-RJT-SOIL Immediate Disposal of Soil Reject

Acme does not accept responsibility for samples left at the laboratory after 90 days without prior written instructions for sample storage or return.

Invoice To: Lodestone Explorations Co. Inc. P.O. Box 77

This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only. AH results are considered the confidential property of the client. Acme assumes the liabilities for actual cost of analysis only. Results apply to samples as submitted. "** asterisk indicates that an analytical result could not be provided due to unusually high levels of interference from other elements. Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabsT M Eagle Creek BC VOK1L0 Canada www.«cmelabxom A Bureau Veritas Group Company Project. Mahood South Report Date: Acme Analytical Laboratories (Vancouver) Ltd. December 04,2012 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604) 253-3158 Page: 2of2 Part: 1 of 1 CERTIFICATE OF ANALYSIS VAN 12005561.1

NMUIUU 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX Anaiyta Mo Cu Pb Zn Ag m Co Mn Fa As Au Th Sr Cd Sb Bl V Ca P La Unit ppm ppm ppm ppm ppm ppm ppm ppm % ppm ppb ppm ppm ppm ppm ppm ppm % % ppm MDL 0.1 0.1 0.1 1 0.1 0.1 0.1 1 041 04 04 0.1 1 0.1 0.1 0.1 2 041 0401 1 MSLA0+500N Sol 0.7 15.9 16.3 90 0.5 56.7 13.2 222 2.52 24.7 2.1 3.2 23 0.2 <0.1 0.3 31 0.35 0.203 4 MSLA0+450N Sol 0.7 21.3 36.7 112 0.3 60.8 19.8 311 3.34 37.9 1.3 3.3 27 0.3 <0.1 0.5 41 0.36 0.198 5 MSLA 0+400N Sol 0.9 23.9 6.7 122 0.1 106.7 24.2 380 3.41 26.7 <0.5 2.0 20 0.3 <0.1 0.1 38 0.26 0.187 4 MSLA 0+350N Sol 0.6 16.3 6.2 72 0.1 70.0 15.6 519 2.42 19.1 <0.5 1.5 19 0.2 <0.1 0.1 42 0.32 0.193 6 MSLA0+3OON Sol 0.7 25.8 6.1 145 <0.1 433.6 55.1 528 5.55 142.7 <0.5 1.2 24 0.2 0.2 <0.1 59 0.37 0.238 4 MSLA0+250N Sol 1.0 40.4 10.1 82 <0.1 169.1 34.5 440 4.06 31.5 <0.5 1.4 15 0.2 0.1 0.1 41 0.20 0.115 3 MSLA 0+200N Sot 0.5 44.9 6.5 101 0.2 250.7 46.6 824 5.51 102.8 <0.6 1.6 19 0.3 0.3 <0.1 59 0.46 0.145 6 MSLA 0+1 SON Sol 1.1 58.0 7.3 151 0.1 267.6 41.9 388 6.23 63.5 10.1 1.7 16 0.4 0.4 0.1 67 0.23 0.094 6 MSLA 0+100N Sol 0.6 56.0 7.8 86 0.1 242.5 37.7 576 5.12 71.7 <0.5 1.4 22 0.3 0.2 <0.1 89 0.36 0.196 6 MSLA 0+60N Sol 0.7 64.7 6.3 125 0.4 286.0 37.2 394 5.33 170.4 <0.5 1.3 22 0.6 0.6 <0.1 31 0.60 0.172 5 MSLA 0+00 Sol 0.9 50.7 5.4 86 0.1 138.0 28.1 194 3.76 40.0 <0.5 1.4 9 0.2 0.2 <0.1 34 0.26 0.079 5 MSLA 0+50S Sol 0.8 27.5 6.2 113 0.1 124.0 26.1 471 4.27 22.3 <0.5 1.1 17 0.3 0.1 <0.1 49 0.28 0.123 4 MSLA 1+00S Sol 0.5 23.5 8.6 94 0.3 51.7 15.4 663 2.14 8.7 <0.5 1.7 20 0.6 <0.1 <0.1 32 0.25 0.142 S MSLA 1+55S Sol 1.1 32.5 10.1 118 <0.1 126.6 26.3 410 3.91 17.9 1.7 2.5 21 0.3 0.1 0.1 48 0.24 0.145 5 MSLA 2+OOS Sol 0.6 26.7 9.5 98 0.3 78.6 18.4 405 2.76 17.6 <0.5 1.8 20 0.2 <0.1 <0.1 36 0.38 0.058 5 MSLA 2+50S Sol 0.6 13.6 8.9 71 <0.1 53.1 16.2 300 2.24 11.8 <0.5 2.1 17 <0.1 <0.1 <0.1 33 0.24 0.066 6 MSLA3+00S Sol 1.3 85.1 14.3 94 0.2 180.6 33.5 595 5.33 30.3 <0.5 4.3 17 0.3 0.1 0.1 45 0.25 0.058 12 MSLA 3+50S Sol 0.7 16.6 9.5 60 <0.1 60.2 14.0 334 2.17 13.0 <0.5 2.2 12 0.3 <0.1 <0.1 30 0.15 0475 6 MSLA 4+00S Sol 0.5 11.9 9.3 75 0.2 39.7 11.7 182 1.97 4.2 <0.5 2.8 10 0.1 <0.1 <0.1 30 0.12 0.057 8

TM* reportsupersede s •> previous preeminary and anal reports with this Ms number dated prior to the data on thla certHcete. Signature Indicates (In at approval; preliminary re porta an unsigned and should ba used for reference only. Client: Lodestone Explorations Co. Inc. P.O. Box 77 f^AcmeLabs" Eagle Creek BC VOX 1LO Canada Project Mahood South A Bureau Veritas Group Company www.acmelabxom Report Date: December 04,2012 Acme Analytical Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604)253-3158 Page: 2 of 2 Part: 2 of 1 CERTIFICATE OF ANALYSIS VAN12005561.1

Method 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX Analyte Cr MB Ba Tl B Al Na K W Hg 8c Tl 8 Oa 8e Tl Unit ppm % ppm % ppm % % % ppm ppm ppm ppm % ppm ppm ppm MDL 1 041 1 0401 20 0.01 0401 041 0.1 041 0.1 0.1 046 1 04 04 MSLA 0+500N SoH 26 0.27 98 0.144 <20 3.22 0.016 0.06 0.1 0.05 2.5 0.1 <0.05 6 <0.5 <0.2 MSLA 0+450N Sol 39 0.36 110 0.127 <20 2.36 0.016 0.06 0.1 0.04 3.1 <0.1 <0.05 8 <0.5 <0.2 MSLA 0+400N Sol 41 0.39 94 0.066 <20 1.54 0.013 0.06 <0.1 0.02 3.0 <0.1 <0.05 5 <0.5 <0.2 MSLA 0+350N Sol 40 0.44 75 0.073 <20 1.79 0.015 0.04 <0.1 0.02 3.5 <0.1 <0.05 4 <0.5 <0.2 MSLA 0+300N Sol 263 1.11 118 0.123 <20 2.25 0.015 0.04 <0.1 0.04 6.9 <0.1 <0.05 6 <0.5 <0.2 MSLA 0+250N Sol 57 0.40 216 0.062 <20 1.11 0.007 0.06 <0.1 0.01 2.6 <0.1 <0.05 4 <0.5 <0.2 MSLA 0+200N Sol 124 0.67 129 0.073 <20 1.90 0.012 0.04 <0.1 0.04 10.6 <0.1 O.05 6 <0.5 <0.2 MSLA 0+1 SON Sol 89 0.76 146 0.108 <20 1.95 0.012 0.05 <0.1 0.02 6.0 <0.1 <0.05 6 <0.5

Thb) reportsupersede * *J previous pretmlnaiy and Anal reporta with thl* tile numbar dated prior to tha data on Ma oartalcata. Signature indlcataa final approval; preliminary report* are unilgnod and should ba used tor reference only. Client: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabs Eagle Creek BC VOK1L0 Canada A. wwwjicmeiab.com Project A Bureau Veritas Group Company Mahood South Report Date: December 04,2012 Acme Analytical Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604) 253-3158 Page: 1of 1 Part 1 of 1 QUALITY CONTROL REPORT VAN 12005561.1

Method 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 10X 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX Anatyta Mo Cu Pb Zn Ag M Co Mn Fa Aa Au Th Sr Cd Sb SI V Ca P U Untt ppm ppm ppm ppm ppm ppm ppm ppm % ppm PPb ppm ppm ppm ppm ppm ppm % % ppm MM. 0.1 0.1 0.1 1 0.1 0.1 0.1 1 0J>1 04 04 0.1 1 0.1 0.1 0.1 2 041 0401 1 Pulp Duplicate* MSLA 0+250N Sol 1.0 40.4 10.1 82 <0.1 169.1 34.5 440 4.06 31.5 <0.5 1.4 15 0.2 0.1 0.1 41 0.20 0.115 3 REP MSLA 0+250N QC 1.0 40.3 10.3 79 <0.1 171.7 34.9 437 4.04 30.7 <0.5 1.4 15 0.2 0.2 0.1 38 0.20 0.118 3 Reference Material* STD DS9 Standard 12.9 107.4 120.7 304 1.7 39.1 7.2 550 2.21 23.4 107.9 5.4 61 2.2 5.2 5.4 39 0.68 0.080 10 STD 0REAS45EA Standard 1.5 651.1 12.3 26 0.2 322.2 47.3 354 22.90 8.9 49.5 8.9 3 <0.1 0.2 0.2 278 0.03 0.025 6 STD DS9 Expected 12.84 108 126 317 1.83 40.3 7.6 575 2.33 25.5 118 6.38 69.6 2.4 4.94 6.32 40 0.7201 0.0819 13.3 STD 0REAS45EA Expected 1.78 709 14.3 30.6 0.311 357 52 400 22.65 11.4 53 10.7 4.05 0.03 0.64 0.26 295 0.032 0.029 8.18 BLK Blank <0.1 <0.1 <0.1 <1 <0.1 <0.1 <0.1 <1 <0.01 <0.5 <0.5 <0.1 <1 <0.1 <0.1 <0.1 <2 <0.01 <0.001 <1

Thai reportsuperoede e H previous preaminary and final report* with thl* fas number dated prior toth e date on this certificate. Signature Indicate* Inal approval; preamlnary report* are unsigned and ahouM be used tor reference only. CHent: Lodestone Explorations Co. Inc. P.O. Box 77 AcmeLabs Eagle Creek BC VOK1LO Canada Project A Bureau Veritas Group Company wvmjicmeiab.com Mahood South Report Date: December 04,2012 Acme Analytical Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada PHONE (604) 253-3158 Page: 1of 1 Part: 2 of 1 QUALITY CONTROL REPORT VAN 12005561.1

Method 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX Analyte Cr Mg Ba Tl B Al Na K W Hg 8c Tl 8 Oa 8a Ts Unit ppm % ppm % ppm % % % ppm ppm ppm ppm % ppm ppm ppm MDL 1 04)1 1 0401 20 041 0401 041 0.1 041 0.1 0.1 046 1 04 0J Pulp Duplicates MSLA 0+250N SoK 57 0.40 216 0.062 <20 1.11 0.007 0.06 <0.1 0.01 2.8 <0.1 <0.05 4 <0.5 <0.2 REP MSLA0+250N QC 55 0.38 216 0.057 <20 1.12 0.008 0.05 <0.1 0.01 2.6 <0.1 <0.05 4 <0.5 <0.2 Reference Materials STD 0S9 Standard 118 0.80 299 0.094 <20 0.87 0.077 0.38 2.6 0.23 2.3 5.3 0.15 4 4.9 5.0 STD 0REAS4SEA Standard 835 0.09 136 0.075 <20 2.51 0.019 0.05 <0.1 0.01 66.9 <0.1 <0.05 11 0.6 <0.2 STD DS9 Expected 121 0.6185 330 0.1108 0.9577 0.0853 0.305 2.89 0.2 2.5 5.3 0.1615 4.59 5.2 5.02 STD OREAS45EA Expected 849 0.095 148 0.106 3.32 0.027 0.053 0.34 78 0.072 0.044 11.7 2.09 0.11 BLK Blank <1 <0.01 <1 <0.001 <20 <0.01 <0.001 <0.01 <0.1 <0.01 <0.1 <0.1 <0.05 <1 <0.5 <0.2

Thl* report supersedes aJ previous preeminary and final reports with this fas number dated prior to the data on thai certificate. Signature Indicates Anal approval; preliminary reports are unsigned and should ba used for reference only.