Non Ferrous Mineral Potential of the Penokean Volcanic Belt Tom

Aquila Non Ferrous Mineral Potential of the Penokean Volcanic Belt Resources Inc. Tom Quigley Aquila Resources Inc.

Zinc rich massive sulfide – Back Forty

Penokean volcanic Belt with mineral deposits and occurrences

Gold rich quartz float – Reef Project Aquila Basement Terrains Resources Inc.

Paleoproterozoic Island Arc volcanic – sedimentary sequences shown in blue. These sequences formed in 1900 my old oceans marginal to older Archean cratons. These Paleoproterozoic sequences contain both a volcanic, Island Arc assemblage as well as a marginal basin sedimentary sequence (yellow) and were accreted to the Archean margins during the Penokean Orogeny Aquila Resources Inc. Bedrock Geology

Flin Flon Belt Paleoproterozoic Archean Superior Province Paleozoic Sediments

Island Arc assemblages contain volcanogenic massive sulfide (VMS) and related mineral deposits and are important sources of base metals Cu, Zn, Pb, Back Forty precious metals Au and Ag. Penokean Volcanic Belt Paleoproterozoic Aquila Bedrock Geology – Superior Province Resources Inc.

Penokean Marginal Basin Sedimentary Assemblages

Upper Peninsula Of Michigan

Back Forty Penokean Volcanic Belt Island Arc Assemblage – Pembine Wausau Terrain

Lower Michigan •VMS – Volcanogenic Massive Sulfide

•Sulfide rich deposits containing copper, zinc, lead, gold and silver deposited by black smoker activity

•Formed in submarine environments by hydrothermal solutions related to volcanic activity related to both convergent and divergent (spreading) plate boundaries.

•In the Penokean Volcanic Belt VMS deposits are related to a 1875 Ma Island Arc environment that developed from converging oceanic plates marginal to the Superior Craton Aquila Plate Boundaries and Known Sea Floor Massive Sulfide Sites Resources Inc. What is an Island Arc?

VMS Deposit

Modified from Stern, 2002 Aquila Plate Boundaries and Known Sea Floor Massive Sulfide Sites Resources Inc.

Aquila Nautilus Minerals exploring the sea floor for massive sulfide deposits in Resources Inc. the Manus back arc basin.

Aquila Mineral resource estimate (43-101) for the Solwara 1 deposit Resources Inc.

The resource was defined by EM surveys, 111 drill holes and numerous surface samples Conductivity Images Solwara 1 Aquila Resources Inc.

Plan view electromagnetic response. Circles are samples of black smoker chimneys

Electromagnetic Response over topography

From: Schulz K.J., Cannon W. F. 2007, The Penokean orogeny in the Lake superior region Aquila Resources Inc.

Modified from: Schulz K.J., Cannon W. F. 2007, The Penokean orogeny in the Lake superior region Aquila Bedrock Geology – Penokean Volcanic Belt Resources Inc.

Lynne

Crandon Back Forty Flambeau

Bend

Major VMS Deposits in Penokean Volcanic Belt

Crandon 67 million tons 5.6% Zn, 1.04% Cu, 1.1 g/t Au, 39 g/t Ag*

Lynne 5.6 million tons 9.27% Zn, .47% Cu, .7 g/t Au, 74 g/t Ag*

Flambeau 5.8 million tons 4.0% Cu, 1.7 g/t Au, 31 g/t Ag* 1.9 million tons 10.5% Cu, 3.4 g/t Au, 69 g/t Ag (mined)

Bend 3.5 million tonnes 1.9% Cu, 2.8 g/t Au, 12 g/t Ag* *Historic Resources – Not 43-101 Compliant

TorontoBack Forty Exchange: AQA 18.8 million tonnes 2.8% OTCQX: Zn, 1.9g/tAQRF Au, 24 g/t Ag, 0.3 % Cu Frankfurt Exchange: Aquila Resources Inc.

Modified from: Schulz K.J., Cannon W. F. 2007, The Penokean orogeny in the Lake superior region Sulfide Ores – Plan View Sulfide Ores – Section View

200 m 200 m

All Massive Sulfides TONNES AU ppm AG ppm CU % PB % ZN % NSR $/T 9,888,827 1.80 24.11 0.48 0.23 4.68 $119.32

All Stringers TONNES AU ppm AG ppm CU % PB % ZN % NSR $/T 6,436,152 1.39 15.60 0.15 0.22 0.86 $51.16

Back Forty consists of massive sulfides and associated stringer and disseminated sulfides as well as separate zones of low sulfide, gold and silver ores Gold Ores – Plan View Gold Ores – Section View

200 m

All Gold Zones and Gossans

TONNES AU ppm AG ppm CU % PB % ZN % NSR $/T

2,213,684 3.98 43.76 0.11 0.27 0.25 $171.92

Gold ores are associated with altered rhyolites, siliceous sediments, younger QFP’s, and gossans developed from weathered massive sulfides Pit Shell #32 (brown) and Underground Aquila Back Forty Block Model Development (blue) from 2014 PEA Resources Inc.

2014 PEA Open Pit Resource (diluted) 12,256,000 tonnes M+I 244,000 tonnes inferred

2014 PEA Underground Resource (diluted and Approx. 200 meters extracted) 2,734,002 tonnes (M +I) 911,334 tonnes (Inferred)

22 Stratigraphy and Rock Types – Back Forty Project Aquila Resources Inc.

Thick section (> 4000 ft.) of highly altered (quartz, sericite, Rhyolite 3 pyrite) rhyolites and associated Quartz Feldspar Porphyry pyroclastic rocks and sliceous, exhalative sediments cut by Tuff Zone Massive numerous dikes and sills of Sulfide quartz feldspar porphyry of dacitic to andesitic composition.

QFP Siliceous Within the drilled section there Sediments are two and possibly three Rhyolite 2 horizons of massive sulfide surrounded by fracture controlled stringer sulfide mineralization.

Main Zone and Pinwheel Zone Massive Sulfides Altered Rhyolite

Rhyolite 1

Deep Zone Massive Sulfide

Rhyolite 0 Rhyolite Fragmental Aquila Host Rocks – Back Forty Project Resources Inc.

Rhyolite 3

Rhyolite 2

Rhyolite 1 Aquila Conceptual Model for the Genesis of the Back Forty Deposit Resources Inc.

1875 million years ago

Tuffaceous Sediments

Black Smokers VMS MASU (Deep Zone)

Tuffaceous Sediments R0 Structurally controlled hydrothermal corridor Deposition of Rhyolite 1 and prolonged hydrothermal activity with syn- Aquila volcanic faults. Replacement-style VMS mineralization continues at Deep Zone Resources Inc. massive sulfide, and Main Zone and Pinwheel Zone massive sulfides form on R1 sea floor.

VMS MASU (Pinwheel) deposition of Black exhalative Smokers massive sulfides

VMS MASU (Main Zone) deposition of Propagation of exhalative hydrothermal massive sulfides system along faults and fractures R1 VMS MASU (Deep Zone) growth due to replacement style mineralization Aquila Deposition of Rhyolite 2 capped by tuffaceous sediments. Tuff Zone massive Resources Inc. sulfide forms at or near contact in more permeable units/beds within sediment package.

Tuff Zone Tuffaceous Massive sediments Sulfide Sp+Gn

? R2 Development of lateral disseminated and stringer sulfides Pinwheel Zone in R2 py+sp+gn Massive Sulfide py+cpy+/-sp

Main Zone R2 Massive Sulfide py+sp+cpy R1

Stringer Sulfides (Main/Deep) py+cpy+/-sp Deep Zone Massive Sulfide py+cpy/sp Emplacement of Quartz-Feldspar Porphyritic (QFP) dikes/sills. Main Aquila QFP emplaced along structures controlling VMS hydrothermal corridor. Resources Inc. Remobilization of precious metals associated with dike emplacement due to hydrothermal activity associated with dikes creating precious metal zones. Main QFP Unknown Rock type Precious Probably more rhyolite Metal Zones

Tuffaceous sediments

R2 R1 Aquila Intrusion of Rhyolite 3, folding, uplift and erosion, exposure of massive sulfides at Resources Inc. surface and gossan development

Tuff Zone Pinwheel Zone Massive Sulfide Tuff Zone massive Gossan Sp+Gn sulfideMain QFP

Pinwheel Zone Pinwheel massiveMassive Sulfide py+cpy+/-sp Precious sulfide and gossan Metal Zones

R3 R2 R3 MainMain Zone Zone MassiveMassive Sulfide Sulfide py+sp+cpypy+sp+cpy Rhyolite 2Stringers py+sp+/-gn Deep Zone Massive Sulfide R2 Main/DeepR2.1 Stringers py+cpy/sp py+cpy+/-sp R0 R1 Aquila Bedrock Geology – Penokean Volcanic Belt Resources Inc.

Lynne

Crandon Back Flambeau Forty

Bend

Reef Aquila Resources Inc. Plan View – Crandon Deposit

The Crandon VMS deposit is a zinc rich massive sulfide with a total resource of about 60 million tons of about 1% Cu and 5% Zn*. Strataform Zn ore (30 million tons of 9.4% Zn) is underlain by copper rich stringer ore. The deposit is nearly 1 mile in strike length and has been drilled to a depth of about 2500 ft.

From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern *Historic Resource – not 43-101 compliant Wisconsin: A commemorative volume: Institute on Lake Superior Geology Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. Aquila Resources Inc.

From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern Wisconsin: A commemorative volume: Institute on Lake Superior Geology Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. Aquila Lynne Deposit 5.6 million tons 9.27% Zn, .47% Cu, .7 g/t Au, 74 g/t Ag* Resources Inc.

From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern Wisconsin: A commemorative volume: Institute on Lake Superior Geology *Historic Resource – not 43-101 compliant Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. Bend Deposit Aquila Resources Inc. 3.5 million tonnes 1.9% Cu, 2.8 g/t Au, 12 g/t Ag*

67 m 2.8 g/t Au, 1.19% Cu

23 m 6.4 g/t Au, 2.1% Cu

75m 1.04 g/t Au

63m 1.3 g/t Au, 0.75% Cu

5.5m 0.84 g/t Au, 3.88% Cu

Modified From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern Wisconsin: A commemorative volume: Institute on Lake Superior Geology Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. *Historic Resource – not 43-101 compliant 5.8 million tons 4.0% Cu, 1.7 g/t Au, 31 g/t Ag* Aquila Flambeau 1.9 million tons 10.5% Cu, 3.4 g/t Au, 69 g/t Ag (mined) Resources Inc.

*Historic Resource – not 43-101 compliant Aquila Resources Inc.

Cross section of the Flambeau Gold Rich deposit. The gold rich gossan Gossan and underlying supergene enriched copper ores were mined from an open pit

Supergene 1.9 million tons 10.5% Cu, 3.4 g/t Enriched Au, 69 g/t Ag Copper Ore

Primary Massive Sulfide

Granite

Wolf River Batholith

Reef Project

Gabbro Mafic Volcanics Aquila Resources Inc. Aquila Reef Project Cross Section Resources Inc. Reef:In 2012, 42Au drill holes, mineralization 4400 meters were completed, targeting expansions of historic intercepts and evaluating lower grade disseminated mineralization 65 m 2.8 g/t Au 95 m 1.5 g/t Au 15 m 14.6 g/t Au

Footwall Gabbro

Cross Section Looking South

TSX: AQA OTCQX: AQARF FKT: JM4A Aquila Resources Inc. Potential for other metals:

Based on metal occurrences and mines in the Paleoproterozoic Fennoscania Island Arc terrains, there could be similar potential in the Penokean Volcanic Belt

•Orogenic gold

•Ni, Cu, PGE in mafic – ultramafic intrusions

•Special metals: Li, Be, Mo, Nb, REE

•Uranium Aquila Bedrock Geology – Wisconsin 1965 Resources Inc. Aquila Resources and Reserves – Early Resources Inc. Proterozoic Volcanic Belts

Penokean Volcanic Belt ranks 2nd in contained resources amongst Early Proterozoic volcanic belts

Back in spite of only a short Forty history of exploration, and almost no history of mining and resource growth associated with development. Flin Flon VMS Deposits

Growth of mineral deposits after initial discovery and development

Flin Flon 62.5 Trout Lake ∕∕ 777 Lalor Stall Lake Chisel U/G Callinan Chisel Osborne Anderson Konuto Spruce Schist Lake Centennial Westarm

Coronation Initial resource White Lake Dickstone Added resource Rod Photo The mineral resource estimate for Lalor is made up of 13.3 million tonnes of indicated resources and 10.2 Cuprus million tonnes of inferred mineral resources, not Flexar including 6.9 – 8.3 million tonnes of conceptual Birch Lake estimates. North Star Mandy 0 5 10 15 20 25 30 Tonnes (millions)