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Lithic Resources Ltd MINE DEVELOPMENT ASSOCIATES MINE ENGINEERING SERVICES Technical Report on the Crypto Zinc-Copper-Indium Project Juab County, Utah December 23, 2009 Prepared for LITHIC RESOURCES LTD. 912 - 510 West Hastings St. Vancouver, B.C., Canada V6B 1L8 Prepared by: Paul G. Tietz, C.P.G. Steven Ristorcelli, R.P.G. C. F. Staargaard, P.Geo. 775-856-5700 210 South Rock Blvd. Reno, Nevada 89502 FAX: 775-856-6053 MINE DEVELOPMENT ASSOCIATES MINE ENGINEERING SERVICES TABLE OF CONTENTS 1.0 SUMMARY .................................................................................................................................... 1 1.1 Introduction .......................................................................................................................... 1 1.2 Geology and Mineralization ................................................................................................. 1 1.3 Exploration and Mining History .......................................................................................... 2 1.4 Drilling and Sampling .......................................................................................................... 3 1.5 Metallurgical Testing ........................................................................................................... 4 1.6 Mineral Resource Estimation ............................................................................................... 5 1.7 Recommendations ................................................................................................................ 7 2.0 INTRODUCTION AND TERMS OF REFERENCE ..................................................................... 8 2.1 Project Scope and Terms of Reference ................................................................................ 8 2.2 Frequently Used Acronyms, Abbreviations, Definitions, and Units of Measure ................ 9 3.0 RELIANCE ON OTHER EXPERTS ............................................................................................ 11 4.0 PROPERTY DESCRIPTION AND LOCATION ......................................................................... 12 4.1 Location .............................................................................................................................. 12 4.2 Land Area ........................................................................................................................... 15 4.3 Agreements and Encumbrances ......................................................................................... 16 4.4 Environmental Permits and Potential Liabilities ................................................................ 17 4.4.1 Permits ................................................................................................................... 17 4.4.2 Potential Liabilities ................................................................................................ 18 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ........................................................................................................................ 20 5.1 Access ................................................................................................................................ 20 5.2 Climate ............................................................................................................................... 20 5.3 Local Resources and Infrastructure .................................................................................... 20 5.4 Physiography ...................................................................................................................... 21 775-856-5700 210 South Rock Blvd. Reno, Nevada 89502 FAX: 775-856-6053 Technical Report on the Crypto Zinc Project, Juab County, Utah Lithic Resources Ltd. Page 2 6.0 HISTORY ...................................................................................................................................... 22 6.1 Exploration History ............................................................................................................ 22 6.2 Historic Mineral Resource Estimates ................................................................................. 24 6.2.1 1976 Estimate by Utah International Inc. .............................................................. 24 6.2.2 1991 and 1993 Historic “Geological Reserve” Estimate by Cyprus Minerals Company ................................................................................................................ 25 6.2.3 1995 Historic “Geological Resource” Estimate by Noble Peak Resources Ltd. ... 26 7.0 GEOLOGIC SETTING ................................................................................................................. 28 7.1 Regional Geology ............................................................................................................... 28 7.2 Local Geology .................................................................................................................... 29 7.3 Property Geology ............................................................................................................... 30 8.0 DEPOSIT TYPES ......................................................................................................................... 35 9.0 MINERALIZATION ..................................................................................................................... 37 9.1 Main Zone .......................................................................................................................... 37 9.2 Deep Zone .......................................................................................................................... 39 9.3 Skarn-Hosted Indium and Molybdenum ............................................................................ 40 9.4 Other Skarn Occurrences ................................................................................................... 40 9.5 Replacement Style Ag-Zn-Pb ............................................................................................ 42 9.6 Molybdenum ...................................................................................................................... 43 10.0 EXPLORATION ........................................................................................................................... 44 10.1 Photogrammetry ................................................................................................................. 44 10.2 Magnetic Survey ................................................................................................................ 44 10.3 Induced Polarization Survey .............................................................................................. 45 11.0 DRILLING .................................................................................................................................... 47 11.1 Summary ............................................................................................................................ 47 11.2 Historic Drilling ................................................................................................................. 47 11.3 Drilling by Lithic Resources Ltd. ....................................................................................... 48 12.0 SAMPLING METHOD AND APPROACH ................................................................................. 50 12.1 Sampling and Assaying ...................................................................................................... 50 12.1.1 Historic Sampling .................................................................................................. 50 12.1.2 Lithic Sampling ..................................................................................................... 50 12.2 Core Recovery Determinations ......................................................................................... 50 12.2.1 Historic Core Recovery ......................................................................................... 50 12.2.2 Lithic Core Recovery ............................................................................................ 50 13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ..................................................... 51 13.1 Historic Sampling ............................................................................................................... 51 13.2 Sampling by Lithic Resources Ltd. .................................................................................... 51 13.3 Lithic Quality Control Protocol ......................................................................................... 52 Mine Development Associates P:\Crypto\Reports\Crypto_43-101_2009\MDA_Crypto_43-101_2009v17.docx December 23, 2008 Ristorcelli, Steve1/4/10 11:27 a.m. Technical Report on the Crypto Zinc Project, Juab County, Utah Lithic Resources Ltd. Page 3 14.0 DATA VERIFICATION ............................................................................................................... 53 14.1 Verification of Historic Data .............................................................................................. 53 14.1.1 Assay Table ........................................................................................................... 53 14.1.2 Collar Table ........................................................................................................... 53 14.1.3 Geologic Data Table .............................................................................................
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