BC Geological Survey Assessment Report 33493

REPORT ON A TEST PIT PROGRAM AND UPDATED PUMICE RESOURCE ESTIMATE Vulcan-Salal Mineral Claims Mine #0700166 Lillooet Mining Division NTS 092J 063 / 092J 073 UTM 10 467000E 5615000N Prepared for: Garibaldi Pumice Ltd. 2504 – 9521 Cardston Court, Burnaby, BC V3N 4R8 Prepared By: David E. Blann, P.Eng. Standard Metals Exploration Ltd. 38151 Clarke Drive, Squamish, BC V8B 0B3 November 2012 Summary The Vulcan-Salal mineral claims and lease are located approximately 75 km northwest of Pemberton, BC in the Lillooet Mining Division. The claims and lease total 1065 and 246 hectares, respectively and are owned and operated by Garibaldi Pumice Ltd. (FMC #145571). The Mt. Meager volcanic complex eruption at 2350 BP produced the Bridge River Assemblage. At least three primary volcanic lithology units occur. Airfall from five eruptive cycles are the oldest and comprise early phreatomagmatic to magmatic pyroclastic rocks. Pyroclastic block and ashflow containing charred logs and pumice occur up to seven kilometres from the vent area and is the second eruption. Hard weathering lava of dacite composition occurs in the Lillooet valley and is the third eruptive phase. On the Vulcan-Salal claims, dacite pumice between 4 to 8 metres and locally up to 10 metres apparent thickness is recorded. Blacked soil containing charred material occurs at the contact with the original forest floor. Silt, volcanic ash, and organic rich soil overlie the pumice, locally containing heterolithic rock slide and avalanche debris. A test pit investigation was carried out on the property on November 1, 2011 and between mid-August and mid-September 2012 by Garibaldi Pumice Ltd. A total of 31 test pits approximately 6 to 10 metres in depth were completed. The test pit geology profiles consist of four primary lithology units: 1) a thin organic surface layer, 2) a fine grained clastic and silty layer comprised of pumicite with variable heterolithic and transported material, 3) a predominantly sand-sized pumicite layer, and 4) medium to coarse clastic dacite pumice to the original pre-eruption surface. Experience gained from previous test pit programs and subsequent mining on the adjacent lease, support the presence of a very large scale, uniform, blanket-like deposition of pumice and pumicite material. The current program of test pits has expanded the pumice deposit outward from the mined area for a distance of approximately 2.35 kilometres in length and over 1.0 kilometre in width. With the consistent nature of the deposit in all current and previous test pits programs, its orientation, and mining experience nearby, the polygonal method is thought to provide a reasonable and valid resource estimate that conforms to Canadian Institute of Mining, Metallurgy and Petroleum, in the Standards of Mineral Resources and Reserves Definitions and Guidelines adopted by CIM Council, August 20, 2000. In summary, the current investigation indicates there is approximately, in the measured + indicated and inferred category, respectively: 8.2 million m3 and 6.8 million m3 of coarse pumice, 2.0 million m3 and 1.4 million m3 of pumicite, 350,000 m3 and 550,000 m3 of fine grained, silt sized pumicite, and 590,000 m3 and 570,000 m3 of overburden. Additional test pits within the area investigated are thought likely to move much of the indicated resource into measured resource. The resource remains open in extent, and additional test pits have potential to increase the resource. Standard Metals Exploration Ltd. Page | 2 Table of Contents Summary.......................................................................................................................................................2 Introduction ..................................................................................................................................................4 Location and Access......................................................................................................................................4 Claim status...................................................................................................................................................4 History...........................................................................................................................................................5 Regional Geology ..........................................................................................................................................6 Local Geology................................................................................................................................................8 Test Pit Investigation and Resource Estimate...............................................................................................8 Resource Estimate Procedure and Assumptions....................................................................................10 Results and Conclusions..............................................................................................................................10 Statement of Costs......................................................................................................................................12 References ..................................................................................................................................................13 Statement of Qualifications ........................................................................................................................14 Tables Table 1 Mineral Tenures Table 2 Test Pit Summary Table 3 Resource Estimate Summary Figures Figure 1 Property Location Figure 2 Vulcan-Salal Pumice Claims Figure 3 Test Pit Locations Figure 4 Topographic Profile Plan Figure 5 Topographic Profiles Figure 6 Resource Blocks Appendices Appendix 1 Test Pit Logs and Photographs Standard Metals Exploration Ltd. Page | 3 Introduction Standard Metals Exploration Ltd. completed two prior resource estimates in 1999 and 2006 (Matheson, 2000; Blann, 2006) and was engaged by Garibaldi Pumice Ltd. (Garibaldi) to complete an updated resource estimate based on the results of a test pit program carried out by Garibaldi during 2011 and 2012. The following report presents and updates the information contained in Blann, 2006. Location and Access The Vulcan-Salal property is located approximately 75 km northwest of Pemberton, BC and is easily reached by paved and gravel logging roads (Figure 1). Access from Pemberton is via Pemberton Meadows road for approximately 30 km and the Lillooet Forest Service Road to km 45.5. The claims are generally situated north and east of the confluence of Salal Creek and the Lillooet River. Most of the claim area occurs between 700 and 1200 metres elevation with a gentle to moderately steep southwest facing slope (5 to 20%). Elevations range from approximately 600 metres in the Upper Lillooet River valley to 1600 metres in higher elevations areas to the northeast and north where steep slopes and rock prevail. Nearby peaks include Mt. Job, Mt. Athelstan and Mt. Meager and approach 2900 metres elevation. The area has seen some logging activity however much of the property is forested. Claim status The Vulcan-Salal property is comprised of seven mineral claims that total 1065 hectares in area and one mining lease that totals 246 hectares in area (Table 1, Figure 2). The tenures are owned and operated by Garibaldi Pumice Ltd. (formerly Garibaldi Aggregates Ltd.), FMC #145571. The mining lease was obtained in July of 2009. Table 1 – Garibaldi Pumice Ltd. Mineral Tenures Tenure # Tenure Name Tenure Type Area (ha) Expiry* 510043 Salal 1 Mineral Claim 266.1 2015/Nov/01 510044 Salal 2 Mineral Claim 245.6 2015/Nov/01 510183 Vulcan 8 Mineral Claim 40.9 2015/Nov/01 560524 Vulcan 12 Mineral Claim 20.5 2019/Oct/01 564674 Vulcan 13 Mineral Claim 41.0 2015/Nov/01 564946 Vulcan 3 Mineral Claim 389.0 2015/Nov/01 565007 Vulcan 15 Mineral Claim 61.4 2015/Nov/01 606990 Vulcan1,7 Mineral Lease 246.0 2013/Jun/30 *Pending assessment report approval Standard Metals Exploration Ltd. Page | 4 History The first documented report of the Mt. Meager pumice deposit was in the early 1900s (Robertson, 1911). Some mining of pumice above the confluence of Salal Creek and the Lillooet River was conducted by Mr. W.H. Willis in the early 1980s, however this production ceased and the mineral lease abandoned when a bridge across the Lillooet River used to access the quarry washed out in the mid 1980s (Schmok, 2000). Ten two-post claims, over the deposit southwest of the Lillooet River, were staked for Mr. L.C. Bustin in 1988. In 1990, Mr. G. Carefoot acquired 53 claims, and in 1991 the historical deposit was staked for Great Pacific Pumice Inc. (a company affiliated with Mr. Carefoot) when the Bustin claims were abandoned (Seabrook and Church, 1991; Schmok, 2000). In 1992, a new bridge across the Lillooet River below its confluence with Salal Creek improved access to the Great Pacific deposit (Shearer, 1992). Subsequent work programs involved geological mapping, bulk sampling, petrographic analysis and commercial evaluation of the pumice (Seabrook and Church, 1991: Shearer, 1992; Wares 1992). In 1995, Great Pacific Pumice Inc. obtained a Mine Development Certificate, a 60 hectare Mineral Lease (No. 333937) and a Mine Permit (Q-202). Seasonal commercial production has been carried out since the late 1990s to present and the extent of the pumice deposit has been further investigated using Ground Penetrating Radar (Schmok, 2000). In 1991, R. G. Matheson purchased

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