NTS 092H/057

ASSESSMENT REPORT FOR THE PROPERTY, TULAMEEN,

Approximate Property Location Latitude: 49o 32’ 30”N Longitude: 120o 45’ 00”W Similkameen Mining Division NTS Map 092H/057

Completed By: APEX Geoscience Ltd. Suite 200, 9797 45 Avenue Edmonton, Alberta T6E 5V8

Completed For: Nolat Holdings PTY Ltd. 7 Swan Street Ravenswood, WA 6208

May 30 2012 Kristopher J. Raffle, B.Sc., P.Geo. Edmonton, Alberta,

Assessment Report for the Tulameen Property, Tulameen, British Columbia

TABLE OF CONTENTS

SUMMARY ...... 1

INTRODUCTION AND TERMS OF REFERENCE ...... 2

PROPERTY DESCRIPTION AND LOCATION ...... 2

ACCESSIBILITY, CLIMATE, LOCAL REOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 7

HISTORY ...... 7

GEOLOGICAL SETTING ...... 11

2011 EXPLORATION ...... 15

SAMPLING METHOD AND APPROACH ...... 19

SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 19

INTERPRETATIONS AND CONCLUSIONS ...... 19

RECOMMENDATIONS ...... 21

REFERENCES ...... 22

CERTIFICATE OF AUTHOR ...... 24

Tables

Table 1: 2011 Tulameen Property Claim Disposition ...... 3 Table 2: Similkameen District Placer Gold and Platinum Production (ounces) 1885 - 1945 ...... 8 Table 3: Calculation of Gold and Platinum Grades for 2011 Till Sample ...... 17

Assessment Report for the Tulameen Property, Tulameen, British Columbia

TABLE OF CONTENTS (CONTINUED)

Figures

Figure 1: Property Location ...... 4 Figure 2: Mineral Tenure ...... 5 Figure 3: Geology ...... 13 Figure 4: Total Magnetic Intensity ...... 18

Appendices

2011 Exploration Expenditures…………………………………...…………...AT END 2011 HMC Analytical Certificates and Sample Descriptions……………….AT END 2011 HMC Analytical Procedures …………………………………….………AT END

Assessment Report for the Tulameen Property, Tulameen, British Columbia

SUMMARY

The Tulameen Property is 100% owned by Nolat Holdings PTY Ltd. and is located within the Similkameen Mining Division in southern British Columbia, approximately 180 kilometres east of and 20 kilometres northwest of Princeton within NTS mapsheet 092H057. The Property comprises 7 placer claims totaling 374 Hectares. In the fall of 2011, Nolat Holdings retained APEX Geoscience Ltd. (“APEX”) to conduct exploration at the Property.

The Tulameen Property lies along the western margin of the Intermontane Belt within the Quesnellia tectonostratigraphic terrane. The Quesnel Terrane is a volcanic arc terrane found along most of the length of the Canadian Cordillera. In southern British Columbia the terrane is largely represented by Middle and Upper Triassic volcanic and sedimentary rocks of the Nicola Group. The western margin of Quesnellia experienced Early Tertiary “transtensional” block faulting related to regional right-lateral transform motions along the Fraser River-Straight Creek fault system. The Tulameen complex, an Alaskan-type mafic-ultramafic intrusion, is located approximately 6 kilometres to the west of the Property. The origin of platinum within the Tulameen Placers has been linked to cumulate chromite layers within Tulameen Complex.

Gold was first found in small amounts on the in 1853 however it was not until 1885 and the discovery of gold on Granite Creek that a reliable record of early production exists. Between 1885 and 1945 the Similkameen District produced 41,938 ounces of placer gold. It is reported that total platinum production between 1886 and 1905 reached 9,860 ounces platinum. By 1891 the Tulameen was recognized as the most productive platinum region in North America.

During 2011, APEX collected a total of 5 heavy metal concentrate (HMC) samples. The samples were analyzed at the Saskatchewan Research Council (SRC). The 5 analyzed samples produced visible gold grains from fluvial gravel terraces within the Tulameen Property.

The total cost to complete exploration during 2011 at the Tulameen Property was CDN$5,604.80.

1

INTRODUCTION AND TERMS OF REFERENCE

This report is written as an Assessment Report (the “Report”) for the Tulameen Property (the “Property”) which is currently held by Nolat Holdings PTY Ltd. (“Nolat”). The Property is comprised of 7 placer claims, 100% owned by Nolat and is located in southern British Columbia, within the Similkameen Mining Division (Figures 1 and 2). This Report is a technical summary of available geological, geophysical and geochemical information for the Property in addition to the work completed during 2011.

APEX Geoscience Ltd. (APEX) was retained in the fall of 2011 as consultants by Nolat to conduct exploration on the Property. The 2011 exploration program was completed between the dates of August 5 and 6, 2011. Mr. Kristopher J. Raffle, P.Geo., a qualified person, visited the Property on August 5 and 6, 2011.

PROPERTY DESCRIPTION AND LOCATION

The Tulameen Property is 100% owned by Nolat and is located within the Similkameen Mining Division in southern British Columbia. The Property is approximately 180 kilometres east of Vancouver and 20 kilometres northwest of Princeton (Figure 1). The Property comprises 7 placer claims totaling 374 Hectares (Figure 2). In a number of instances the claims overlap somewhat with previously staked placer claims which are not owned by Nolat; thus the total area of the Property is currently 324 hectares. Should these previously staked claims lapse, ownership of the overlapping potion would automatically revert to Nolat. The Property is located within NTS 1: 50,000 mapsheet 092H010 and within BC TRIM 1:20,000 mapsheet 092H057.

In British Columbia, the owner of a placer claim acquires the right to the placer minerals which were available at the time of claim location and as defined in the Mineral Tenure Act of British Columbia. Surface rights are not included. Claims are valid for one year and the anniversary date is the annual occurrence of the date of record (the staking completion date of the claim). To maintain a claim in good standing the claim holder must, on or before the anniversary date of the claim, pay the prescribed recording fee and either: (a) record the exploration and development work carried out on that claim during the current anniversary year; or (b) pay cash in lieu of work. The amount of work required is $2 per hectare per year. Only work and associated costs for the current anniversary year of the mineral claim may be applied toward that claim unit. If the value of work performed in a year exceeds the required minimum the value of the excess work can be applied to cover work requirements on the claim for additional years (subject to the regulations). A report detailing work done and expenditures must be filed with, and approved by, the B.C. Ministry of Energy and Mines.

2

There are no known placer mineral reserves or resources at the Property; it remains an early-stage, grass roots exploration property.

The 7 claims which comprise the Tulameen Property were acquired by Mr. Derek N. Moore. The claims are currently held in trust by Mr. Derek N. Moore on behalf of Nolat. At present the author does not know of any environmental liabilities, or any other agreements and encumbrances associated with the property.

Table 1: 2011 Tulameen Property Claim Disposition

Tenure Claim Good To Area Owner Tenure Type Issue Date Number Name Date (ha) Moore, Derek Newell 414326 HONDA #1 Placer 2004/sep/29 2013/jun/29 50.00 (100%) Moore, Derek Newell 414327 HONDA #2 Placer 2004/sep/29 2013/jun/29 50.00 (100%) Moore, Derek Newell 414328 HONDA #3 Placer 2004/sep/29 2013/jun/29 50.00 (100%) Moore, Derek Newell 414329 HONDA #4 Placer 2004/sep/29 2013/jun/29 50.00 (100%) Moore, Derek Newell 414330 HONDA 5 Placer 2004/sep/29 2013/jun/29 50.00 (100%) Moore, Derek Newell 559242 HONDA 6 Placer 2007/may/25 2013/jun/29 104.83 (100%) Moore, Derek Newell 559324 HONDA 7 Placer 2007/may/28 2013/jun/29 20.96 (100%)

3

Legend 5500000 6000000 6500000 C Tulam USA Ca British Ro it ies ies nada ads

een and

Columbia

Pr Towns Pacific O ope cean

rty

Yukon 0 0

Prince Prince Rupert Na 500000 500000 naimo Vi c V t anc oria Prince Prince

ouv Williams er G

eor NWT ge Washington FortS Lake Daw

J t. Kamloo ohn Edmonton, Edmonton, Alberta s Cron

0 P Kel ps en eek WEDGER

owna t 5 ic

t 0 on Gr Br 100 200 300 300 200 100

eenwood Re APEX Property itish itish Columbia, Tulameen vels N Alb AD to 1:9,000,000 Geo ke Ne

ES 8 er lson Idaho 1000000 1000000 3 ta science OURC Zone cation Location

Property

Montana C

Cr 10

anada

anbr

Ltd. ES

Kilometers Kilometers

ook

LTD.

May 2012 FI

G E URE

1 5500000 6000000 6500000

661000 662000 663000 664000 665000 666000 667000

4800 4900

3900 596672 2800 596671 4200 584301 3700 4700

3400 3600 3000 596673 Connaly Creek

5492000 3100 5492000 3800 3700 4700

2800 3100 Legend 4600 3100 4500 3500 3200 3600 3500 Tulameen Property Outline

2700 4300

3300 ² 2900 Tulameen Property 3600 4300 3300 Placer Claims4600 2900 3200 Otter Lake Otter Mountain 4100Adjacent Placer Claims 3400 4400 2900 3200 Otter Lake Provincial Park 3400 3800 Railway Grade 3300

5491000 3300 5491000 Cook Creek Road 4500 3000 Tulameen

3700 Lakes 4500

3000 Rivers 596061 2600 2800 594777 2008 Geophysical 3100

Grid Region 4000

407971 408021 319575 3900 2600 596674 2700 5490000 559324 5490000 399151 414326 399150 2700

2800 2700

2700 3500 414327 559242 414328 3000 2700 3300 Manion Creek 3100

408021 3600 414329 408022 2800 414330 3600

5489000 524984 4300 4400 3200 2900 5489000 Mount Jackson 584577 4200 Connaly Creek 523207 3200

3400

4000

3500 3300 524901 560017 4100 4100 585364 Collins Gulch 568620 3300 2700

4200 2800 5488000 5488000

3800 4100

3800 4200 568621 568622

3700 WEDGE RESOURCES LTD. 4000 Tulameen Property

568619 568624 2600 4300 3900 Mineral Tenure 592357 4100 Figure 2

4500 0 187.5 375 750 1,125 1,500 Fraser Gulch 2500

5487000 4400 5487000 Meters 4700 568625 568626 Coalmont 1:30,000 4600 542843 557612 2600 UTM Nad83 / Zone 10 10o Foot Contour Interval

4300 4800 4100 4100 596239 321640

3700 APEX Geoscience Ltd. May 2012 2400

661000 662000 663000 664000 665000 666000 667000

The Tulameen Property claims have not been legally surveyed and were acquired digitally from the British Columbia Ministry of Energy and Mines. In British Columbia an individual placer claim may consist of up to 25 complete or partial adjoining cell claims (“cells”). Cells range in size from approximately 21 hectares (457 metres x 463 metres) in the south to approximately 16 hectares at the north of the province. This is due to the longitude lines that gradually converge toward the North Pole. The process of digital claim staking provides secure title by eliminating mapping issues such as overlap and map location challenges inherent with physical ground staking methods. The position of a cell is absolute in UTM NAD 83 format.

All work carried out on a claim that disturbs the surface by mechanical means (includes drilling, trenching, excavating, blasting, construction or demolishment of a camp or access, induced polarization surveys using exposed electrodes and site reclamation) requires a Notice of Work under the Mines Act and the owner must receive written approval from the District Inspector of Mines prior undertaking the work. The Notice of Work must include: the pertinent information as outlined in the Mines Act; additional information as required by the Inspector; maps and schedules for the proposed work; applicable land use designation; up to date tenure information; and, details of actions that will minimize any adverse impacts of the proposed activity. The claim owner must outline the scope and type of work to be conducted, and approval generally takes approximately one month.

Exploration activities that do not require a Notice of Work include: prospecting with hand tools; geological/geochemical surveys; airborne geophysical surveys; ground geophysics without exposed electrodes; hand trenching (no explosives); and, the establishment of grids (no tree cutting). These activities and those that require Permits are outlined and governed by the Mines Act of British Columbia.

The Chief Inspector of Mines makes the decision whether or not land access will be permitted. Other agencies, principally the Ministry of Forests, determine where and how the access may be constructed and used. With the Chief Inspector's authorization, a mineral tenure holder must be issued the appropriate "special use permit" by the Ministry of Forests, subject to specified terms and conditions. The Ministry of Energy and Mines makes the decision whether land access is appropriate and the Ministry of Forests must issue a special use permit. However, three ministries, namely the Ministry of Energy and Mines; Forests; and Environment, Lands and Parks, jointly determine the location, design and maintenance provisions of the approved road.

6

ACCESSIBILITY, CLIMATE, LOCAL REOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Tulameen Property can be reached by travelling approximately 20 kilometres northwest of Princeton on Coalmont Road along the north bank of the . The Property is located about 500 metres to the east of the town of Tulameen which is located at the confluence of the Tulameen and Otter Rivers. Access to the Property from this location requires walking across the shallow Tulameen River. A series of gravel logging roads provide vehicle access to the Property and traverse from east to west along the southern river bank and to the south up Collins Gulch. These roads can be accessed via a bridge located 3 kilometres to the southeast in the town of Coalmont. The center of the Property is located at approximately 49o 32’ 00” N latitude and 120o 44’ 40” W longitude (Universal Transverse Mercator (UTM), North American Datum (NAD) 1983 Zone 10 coordinates 663500 East, 5489400 North).

The Property lies on the eastern lee-side of the Coast Mountain Range and is sheltered from the heavy precipitation of British Columbia’s coastal regions. The climate is semi-arid with the highest daily average temperature of + 18 oC occurring during July and August and the lowest daily average temperature of -6 oC occurring in January. The average annual precipitation totals 356 mm. The area sees light snow cover averaging 22 cm during the months of December, January and February and remains generally snow free for the remainder of the year. The claims are located on the southern bank of the Tulameen River. The topography on the claims consists of low lying floodplains along the river which give way southward to steeply rising glacio-fluvial sediment terraces. The elevation ranges from approximately 780 metres along the Tulameen River to 1040 metres along the slopes of Mount Jackson.

The Property is located within 20 kilometres of the towns of Tulameen, Coalmont and Princeton, BC. The communities have a long history of placer gold mining operations dating back to 1870. Princeton, BC the largest of the three towns has a total population of 2677 (as of the May 16, 2006 census) and is an established mining town. The Copper Mountain Mining Corporation recently completed a positive feasibility study on its past producing Copper Mountain Porphyry Cu-Au Project located 12 kilometres to the south of Princeton.

HISTORY

Gold was first found in small amounts on the Similkameen River in 1853 however it was not until 1860 that placer mining was carried with any regularity (Galloway, 1931). It was not until 1885 and the discovery of gold on Granite Creek, a tributary of the Tulameen River, that a reliable record of early production exists. During this year a total of 2,959 ounces of gold were reportedly produced by some 62 companies each working approximately 90 metres stretches of the

7

creek (Robson, 1886). That same year prospecting continued westward up the Tulameen River and discoveries were made on Collins Gulch and on Slate, Hines, Eagle and Champion Creeks. By the end of 1885 approximately 800 men were camped in what had become known as Granite City located at the confluence of the Granite Creek and the Tulameen River.

Early explorers noted the association of gold with a heavy whitish metal. The metal was initially discarded but was later recognized as platinum. Placer gold production in the Similkameen area peaked in 1886 with recovery of 11,941 ounces of gold, which included 5,217 ounces gold from Granite Creek (Robson, 1887). By 1887 gold production had begun to diminish however the recovery of platinum became significant with 2,000 ounces recovered that year. Camsell (1913) reported total platinum production between 1886 and 1905 of 9,860 ounces platinum. This is considered to be a conservative estimate and it is generally accepted that approximately 20,000 ounces of platinum were produced from the Tulameen area Poitevin (1923). By 1891 the Tulameen was recognized as the most productive platinum region in North America (Kemp, 1902). Platinum production for the years following 1905 is not available. The year 1891 marked the appearance of large scale hydraulic operations, with the construction of a 6.4 kilometre flume on Granite Creek. However, annual production continued to fall (Table 2).

Table 2: Similkameen District Placer Gold and Platinum Production (ounces) 1885 – 1945*

Lawless Lockie Olivine Total Cedar Collins Granite Newton Similkameen Tulameen Whipsaw Year (Bear) (Boulder) (Slate) Platinum* Creek Gulch Creek Creek River River Creek Creek Creek Creek 1885 2,959 196 3,361 1886-1890 5,600 55 230 18,905 55 1578 55 685 2,016 3,136 41 1891-1895 3,550 2,285 110 148 367 1,635 1,525 48 1896-1900 628 55 11 148 280 157 15 1901-1905 82 138 - 1906-1910 9 1 1911-1915 108 214 1916-1920 - 67 1921-1925 2 235 1926-1930 117 44 1931-1935 196 69 1936-1940 252 88 1941-1945 53 289 Sub Total 9,860 55 230 25,079 55 1,699 203 1,200 4,127 9,186 104 Total 9,860 41,938 *Platinum data 1885-1909 from Camsell (1913), Gold data from Holland (1983)

Resurgence in the Tulameen area was seen in 1926 buoyed by an increase in the price of platinum and a subsequent discovery on the Tulameen

8

River near Champion Creek (Minister of mines Annual Report, 1926). There, on the Sootheran claims, a approximately 35 ounces of platinum was recovered from between 18 and 37 cubic metres of gravel. Unfortunately, the claims saw only small scale production in subsequent years.

Placer gold and platinum mining has been carried on in three sections of the Tulameen River, these are: near the mouth of the river, about 3.2 kilometres below the mouth of Granite Creek and between Slate Creek and the mouth of Champion Creek. Between Granite and Slate Creeks the Tulameen valley is wide and reportedly contains deep gravel deposits. There is no record of significant historic placer operations in this area. In the area above Slate Creek the Tulameen River narrows and placer deposits typically lie within the stream bed, or within bench deposits on the side of the valley or above the level of the canyon. Placers of the upper Tulameen carry the greatest proportion of platinum to gold. Mining shows that this ratio increases upstream as far as the mouth of Eagle Creek, where the proportion of platinum recovered is greater than of gold (Camsell, 1913).

Granite Creek was mined from its mount on the Tulameen River to Newton Creek, a distance of approximately 7 kilometres. Deposits were easily worked and occurred primarily in the stream bed as thin clay cemented deposits lying directly on bedrock or occasionally as old abandoned channels cut by the present stream course. The gold was coarse and rough apparently indicating a local origin. Platinum was found as smaller, rounded nuggets, generally weighing no more than 0.5 ounce (Camsell, 1913).

Collins Gulch, which crosses the current Tulameen Property claims, contained a limited quantity of gravel and was mined from its mouth on the Tulameen River to a distance of 800 metres upstream. Given that this portion of the stream lies within the Tulameen River valley it has been suggested that the gold bearing gravels were effectively product of that drainage. It is not known whether any platinum was present (Camsell, 1913).

Slate Creek flows into the Tulameen River from the south about 5 kilometres to the west of the town of Tulameen. A number of short canyons and a series of waterfalls occupy the mouth of the creek. Coarse gold and coarse platinum bearing placers lie in the stream bed with the most extensive deposits being located in the broader parts of the valley above the waterfalls (Camsell, 1913).

Bear Creek, empties into the north side of the Tulameen River 6.5 kilometres from the town of Tulameen, and occupies a deep, narrow valley. As a result gravel deposits are thin and generally confined to the stream bed, and bedrock exposures are common (Camsell, 1913). Boulder Creek flows into the west side of Otter Lake about 4 kilometres north of the town of Tulameen. The stream was mined from its mouth and

9 upstream for a distance of approximately 2.4 kilometres and returned significant gold values, but no platinum (Camsell, 1913).

The majority of gold recovered from the Tulameen placers was rough and unworn indicating a relatively short transport from its source (Camsell, 1913). The largest gold nugget reportedly produced came from Bear Creek and weighed 18.2 ounces. Other large gold nuggets recovered included one from Slate Creek weighing 12.6 ounces, in addition to a number of nuggets from Granite Creek weighing between 5.3 and 5.9 ounces (BC Minister of Mines Annual Report 1886). In contrast, platinum was rarely found in large nuggets, the largest being up to 0.5 ounces were reported on the Tulameen River between Slate and Champion Creeks and on Granite Creek. More typically platinum occurred as small rounded grains or pellets varying in size from 1 to 4 millimeters in diameter. Kemp (1902) noted the presence of chromite, olivine and pyroxene within platinum nuggets from the Tulameen River, and was the first to suggest their derivation from ultramafic source rocks. Subsequently, Kemp mapped a northwest trending belt of peridotite and pyroxene-syenite rocks cut by the Tulameen River between Champion and Bear Creeks that coincided with the richest platinum bearing placer deposits.

More recent exploration in the vicinity of the Tulameen Property was conducted by Carolin Mines Ltd. in 1977 approximately 200 metres to the west of the Honda #1 and Honda #3 claims. A a total of 10 heavy mineral pan concentrates were collected at approximately 25 metre intervals along the southern bank of the Tulameen River near the inflow of Otter Creek (Cochrane, 1977). Based on a volume of a total of 0.7 cubic feet of panned material the grade was estimated at 0.011 ounces per cubic yard.

Cochrane returned to the property again in 1978 on behalf of Carolin Mines Ltd. and conducted a biogeochemical test survey (Cochrane, 1978). During the survey a total of 13 pine needle samples were collected at 30 metre intervals along a north south survey line crossing the claim. Assay results ranged from a low of 5 parts per billion gold (ppb Au) to a high of 4750 ppb Au. The average gold assay, excluding the highest value, was 37.5 ppb Au. The sample returning 4750 ppb Au was considered anomalous perhaps indicating a buried stream channel and further sampling was recommended.

The most recent exploration has been conducted by APEX Geoscience Ltd. in September of 2008. APEX completed a total of 25.3 Line-Kilometers of ground magnetic geophysical survey at 50 meter intervals and collected a total of 5 heavy mineral concentrate (HMC) sediment samples. Samples were collected from the Tulameen River and a series of terraced fluvial gravel benches (APEX, 2008). Results present a number of anomalies in the northern portion of the surveyed grid adjacent to the Tulameen River found within a flat lying bench of fluvial gravels with a minimum thickness of 2 meters. Based on location these anomalies the largest concentrations of magnetic heavy metals are found within

10 basal or paleo-channel gravels. HMC samples were taken from this area and 150 meters downstream which returned 2 and 4 gold grains at estimated weights of 10.97 and 11.04 micrograms (µg) (APEX, 2008). A second east-west trending magnetic anomaly was recorded within a broad sediment terrace at least 30 meters thick. A HMC sample was collected at this location recovering two visible gold grains with an estimated weight of 4.33 µg. A third magnetic high of unknown origin was detected in the furthest southeast corner of the claims block.

From the five HMC samples collected twelve grains of gold were recovered with ranging weights from 4.33 µg to 11.04 µg. Eleven of the total twelve grains were visually classified as Irregular, indicating short transport distances.

GEOLOGICAL SETTING

Regional Geology

The Tulameen Property lies along the western margin of the Intermontane Belt within the Quesnellia tectonostratigraphic terrane. The Quesnel Terrane is a volcanic arc terrane found along most of the length of the Canadian Cordillera. In southern British Columbia this terrane is largely represented by Middle and Upper Triassic volcanic and sedimentary rocks of the Nicola Group (Figure 3). Tonalite rocks of the Eagle Plutonic Complex to the west of the Property experienced syn-intrusive Middle to Late Jurassic contractional deformation as recorded in a north-northwest trending zone of deformation known as the Eagle Shear Zone. Greenschist grade rocks prevalent in the Nicola Group increase to amphibolite grade to the west approaching the contact with the Eagle Plutonic complex. The western margin of Quesnellia experienced Early Tertiary “transtensional” block faulting related to regional right-lateral transform motions along the Fraser River-Straight Creek fault system (Monger, 1985).

Property Geology

The Tulameen Property occurs within along the southern flank of the east- west trending Tulameen River valley. The valley marks the contact between rocks of the Upper Triassic Nicola Group to the south and Eocene granodiorite to quartz-monzonite intrusive rocks to the north belonging to the “Otter” intrusive suite of Rice (1947).

Rocks of the Nicola Group in the Tulameen region comprise black thinly laminated argillites green and brown tuffaceous siltstones and lapilli tuffs, dark grey-green aphyric to plagioclase-phyric pyroxene andesites and hornblende dacite flows, rare aphanitic rhyolites, cherts, chert breccias and dark grey limestones (Preto, 1975).

11

Tulameen Basin

Volcanic and sedimentary rocks of the Eocene Tulameen Basin overlie the Nicola Group immediately to south of the Property. Along the southeast side of the Tulameen Basin, the Blakeburn Fault juxtaposes Eocene rocks against the Nicola Group. Elsewhere in the basin, the contact is an inconformity.

The Tulameen Basin comprises rocks of the Eocene Princeton Group, which are in turn overlain by plateau basalts of the Miocene Chilcotin Group. The Princeton Group has been subdivided into the lower Cedar Formation volcanic unit and upper Allenby Formation volcanic and sedimentary unit (Camsell, 1907, Shaw, 1952, Hills, 1962 and McMechan, 1983). On the west side of the basin Cedar Formation rocks range from basalt to dacite and are dominated by andesite (Camsell 1913). On the east side of the basin the Cedar Formation is completely eroded (Read, 2000). The base of the Allenby Formation consists of and eastward thinning sequence that grades upwards from an unbedded sedimentary breccia containing volcanic clasts, through crudely bedded breccia, to a bedded volcanic-lithic wacke.

A medial section known as the Vermillion Bluffs Shale hosts the Basin Coal (Blakeburn) Mine located five kilometres to the southwest of Coalmont on Blakeburn Creek (North Fork Granite Creek). The mine saw 2.3 million tonnes of predominantly underground production between 1921 and 1957 (Minfile

12

650000 652000 654000 656000 658000 660000 662000 664000 666000 668000 670000 672000 674000 LTrJgd

BEAR CREEK PLACER ^_ Egd Legend Stratigraphic Unit

5498000 Qal Quaternary Alluvium 5498000 lKSB Miocene ² MiPiCvb Chilcotin Group Basalt lKSB Eocene LTrJum MiPiCvb EPr Princeton Group Sediments Kgr 5496000 EPrb Princeton Group Volcanics 5496000 Egd Egd Unamed Granodiorite Kgr BOULDER CREEK PLACER Cretaceous uTrNml uTrN ^_ Kgr Unamed Granite MiPiCvb Egd Kgr lKSB Spences Bridge Group 5494000 5494000 Triassic - Jurassic LJto Eagle Plutonic Complex Tonalite LTrJum LTrJdr Tulameen Complex Diorite-Gabbro LTrJum Tualmeen Complex Dunite-Pyroxenite

^_ 5492000 uTrNml Nicola Group Amphibolite Mylonite 5492000 LTrJum uTrN Nicola Group uTrNml FaultEPrb Tulameen Claims LTrJum

5490000 Placer Showing 5490000 HINES CREEK PLACER SLATE CREEK PLACER COLLINS GULCH PLACER _^ TULAMEEN RIVER PLACER^_ ^_ ^_ ^_ Lakes Rivers EPrb CEDAR CREEK PLACER LTrJdr

5488000 ^_ 5488000 LTrJum

EPr MiPiCvb uTrNml 5486000 5486000 MiPiCvb

uTrN LTrJdr LTrJum

5484000 uTrNml WEDGE RESOURCESTULAMEEN RIVER LTD. 5484000 ^_ Tulameen Property Geology LTrJdr LJto Figure 3 LTrJum 0 625 1,250 2,500 3,750 5,000 5482000 5482000

Meters CHAMPION CREEK PLACER GRANITE CREEK PLACER LTrJum EPrb ^_ ^_ 1:100,000 EPrb Ks LTrJum UTM Nad83 / Zone 10 LTrJdr 10 Metre Contour Interval LTrJdr NEWTON CREEK PLACER LTrJum LTrJdr APEX Geoscience Ltd. MayEPr 2012 5480000 ^_ EPrb 5480000 650000 652000 654000 656000 658000 660000 662000 664000 666000 668000 670000 672000 674000 092HSE157). Coal bearing shale of the same formation occurs in the upper reaches of Collins Gulch and Fraser Gulch; however the occurrences did not achieve significant production (Minfile 092HNE094). The overlying Summers Creek sandstone is the most extensive sedimentary unit in the Tulameen Basin. The unit comprises quartzo-feldspathic sandstone with a rhyolite ash component that locally dominates. The unit reaches a thickness of 590 metres beneath flat lying augite-bearing olivine basalt flows of the Miocene Chilcotin Group. ‘ Tulameen Mafic-Ultramafic Complex

The Tulameen complex, an Alaskan-type mafic-ultramafic intrusion, is located approximately 6 kilometres to the west of the Property. The Tulameen complex lies along the eastern margin if the Eagle Shear Zone and forms a northwest elongate body of approximately 20 by 4 kilometre dimensions that is parallel to the regional structural grain. A U-Pb zircon date reported by Rublee and Parrish (1990) from Tulameen complex syneodiorite returned an age range of 204 to 212 Ma (latest Triassic-earliest Jurassic) and provides an estimate of the age of crystallization of the feldspathic part of the complex. The principal ultramafic and mafic units of the complex comprise dunite, olivine clinopyroxenite, hornblende clinopyroxenite and gabbroic to dioritic rocks (Findlay, 1963).

At the northern end of the complex the Tulameen River valley exposes a cross section of the magmatic stratigraphy. A core zone of dunite containing accessory chromite is restricted to the northern part of the complex. The degree of serpentinization of the dunite increases from west (20% volume serpentine) to east (80%, Findlay, 1963). Concentrations of chromite appear to occur randomly throughout the dunite and are associated with microscopic grains of platinum minerals and nickel-iron sulphides (St Louis etal., 1986). Outcrops of olivine clinopyroxenite flank the dunite core and continue southwards near the centre of the complex. A 20 kilometre long belt of hornblende clinopyroxenite forms the western periphery of the complex and lies in contact with olivine clinopyroxenite to the east. Along the eastern margin of the complex a large body of gabbro- syenogabbro divides the central olivine clinopyroxenite and peripheral hornblende clinopyroxenite bodies (Findlay, 1963, Nixon etal., 1997). Based on contact relationships, Findlay (1963) suggested the gabbroic and ultramafic parts of the complex represented to separate intrusions; that is an early gabbroic- dioritic body intruded by ultramafics, with dunite being emplaced last. Nixon etal. (1997) interpreted one outcrop along the Tulameen River to represent magmatic incorporation of dunite-pyroxenite cumulates within pyroxenite. This in conjunction with the presence of pyroxenite dykes cutting dunite suggested dunite crystallized prior to the pyroxenites.

Evidence of contact the relationship between the Tulameen complex and Nicola Group is rare. However, Nixon etal. (1997) notes rafts of Nicola Group metasedimentary rocks that have been intruded by gabbro near Blakeburn Creek

14 and mafic pegmatite on Grasshopper Mountain containing Nicola Group dacite xenoliths. Nicola Group rocks surrounding the Tulameen complex and mafic- ultramafic units within the complex possess a north-northwest striking steeply west dipping penetrative foliation. Eastward-verging isoclinal folds within Nicola argillites are consistent with kinematic indicators within the Eagle Shear Zone Complex, which experienced Middle to Late Jurassic eastward-verging contractional deformation (Greig, 1992).

Kemp (1902) was the first to document a northwest trending belt of dunite, pyroxenite and syenitic rocks and recognize their association with nearby platinum bearing placers. An examination of platinum nuggets revealed inclusions of chromite, olivine and pyroxene suggesting derivation from mafic- ultramafic rocks of the Tulameen complex. Nixon etal. (1997) studied a number of chromite occurrences on Grasshopper Mountain, placer platinum nuggets from the Tulameen region and Tulameen dunite rocks. The presence of highly magnesian olivine in both cumulus chromites and platinum nuggets indicates nugget olivine formed via cooling within a chromite layer. Similarly, decreased magnesium content of olivine within Tulameen complex dunite is inconsistent with that of nugget olivine.

Surficial Geology

A detailed examination of the surficial geology of the Tulameen River area does not appear to be available. However, historic reports from the time of early placer development describe series of terraced sediments on the south side of the Tulameen River rising in height from between 30 to 90 metres. Sediment terraces are apparently not found on the north side of the Tulameen River. At the mouths of Slate and Champion Creeks sediment terraces have partially blocked and diverted stream outflow westward (Kemp, 1902). Early prospectors avoided the region between Granite Creek and Slate Creeks due to the presence of deep alluvium, glaciofluvial, lacustrine and till deposits (Camsell, 1913 and Monger, 1989).

2011 EXPLORATION

During 2011, Kristopher J. Raffle a senior geologist of APEX Geoscience Ltd. and a representative from Nolat Holdings collected 5 heavy mineral concentrate (HMC) sediment samples at the Tulameen Property (Figure 3). Exploration was completed between the dates of August 5 and August 6, 2011. The total cost to complete exploration during 2011 at the Tulameen Property was CDN$5,604.80 (Appendix 1).

Gold and platinum bearing fluvial placers accumulate mainly along erosional unconformities overlying bedrock or resistant sediments such as basal tills or glaciolacustrine clays. Basal gravels over bedrock typically contain the highest placer concentrations. Placer concentrations may also occur at channel

15 irregularities, in bedrock depressions and below natural riffles created by bedrock structures oriented obliquely to water flow. Overlying bedded gravel sequences generally contain less placer minerals and reflect bar sedimentation during aggradational phases. Deposits may be associated with subeconomic concentrations of various heavy minerals such as magnetite and ilmenite which can be detected by magnetic geophysical survey methods (Levson, 1995). Historically, gold and platinum values from Tulameen placers have been obtained from fine black sands containing a high percentage of chromite and magnetite (Robertson, 1924).

The purpose of 2011 HMC sampling was to expand upon 2008 sampling of several fluvial gravel terraces identified at the Tulameen Property. HMC samples were submitted to the Saskatchewan Research Council’s (SRC) Geoanalytical Laboratory in Saskatoon, Saskatchewan for gold grain analysis. Sample concentrates were then subject to gold, platinum and palladium fire assay and multi-element analysis.

A total of 24 gold grains were recovered from the 5 analyzed HMC sediment samples collected during 2011 (Appendix 2). All grains were visually classified under a binocular microscope by the SRC according to their degree of rounding. Grains were classified as: delicate, irregular, abraded or rounded indicating increased glacial and fluvial transport. A total of 22 grains were classified as abraded or abraded/irregular suggesting increased transport distance. The remaining two grains were classified as irregular/delicate and irregular implying short transport distance from source (Appendix 2).

Sample 11BPS001 was collected on the southern bank of the Tulameen River at an elevation of approximately 780 metres (m) above sea level (ASL). The sample was collected from an eroding course cobble supported, fine-coarse sand matrix, paleo-gravel bench. This sample returned the highest gold grain count of 14 grains of gold at an estimated weight of 279.36 micrograms (µg). All of the gold grains recovered from 11BSP001 were classified as abraded indicating increased transport distances as would be expected given its fluvial gravel source. Sample 11BSP002, collected from graded fine to coarse sand and gravel fluvial deposits exposed at 825 m ASL within along the western side of the Property, returned 3 gold grains at an estimated weight of 30.97 µg. Sample 11BPS003, collected near the base of the broad, approximately 20 m thick, gravel terrace present within much of the Honda #3 (414328) and Honda #4 (414329) claims (Figure 2), returned a single gold grain having and estimated weight of 0.28 µg. Sample 11BPS004 was collected from coarse sand and gravel benches high above Collins Gulch. This sample returned 4 gold grains having an estimated weight of 3.83 µg. Two of the gold grains were classified as irregular suggesting somewhat shorter transport distances. Sample 11BPS005 was collected at an elevation of approximately 850 m ASL near the top of the broad gravel bench within the Honda #4 (414329) claim. The sample returned 2 abraded gold grains having an estimated weight of 6.16 µg.

16

After completion of binocular observation, the gold grains were re- combined with the Mozley (heavies) concentrate and subject to fire assay analysis. In order to verify that all gold grains reported to the Mozley concentrate, and to permit calculation of total gold and platinum grades based on the field weight of each sample, fire assay and ICP-MS analysis was also completed on the Methylene-Iodide (MI Sinks) concentrate (Appendix 3). Sample 11BPS001, which contained the highest number of gold grains (14), returned a Mozley concentrate assay of 12.39 grams-per-tonne (g/t) gold (Au) and 1.66 g/t platinum (Pt). Calculation of the total 15.3 kilogram (kg) sample weight gold and platinum grade for 11BPS001 returned 15.1 parts-per-billion (ppb) Au and 3.3 ppb Pt. Gold and platinum grade calculations; including field sample weight; Mozley and MI concentrate weight, fire assays results; and calculated gold and platinum mass are presented in Table 3 below.

Table 3: Calculation of Gold and Platinum Grades for 2011 Till Samples

Sample MI Mozley Mozley MI Sinks FA MI Sinks Mozley Total Mass Total Grade Weight Sinks Conc Conc FA Sample ID Au Pt Au Pt Au Pt Au Pt Au Pt Au Pt (kg) (g) (g) (ppb) (ppb) (g/t) (g/t) (µg) (µg) (µg) (µg) (µg) (µg) (ppb) (ppb) 11BPS001 15.3 318.5 59 70 17.1 12.39 1.66 18.8 22.3 211.9 28.5 230.7 50.8 15.1 3.3 11BPS002 12.75 63.27 39 17 47.5 1.02 0.04 2.5 1.1 48.5 1.7 50.9 2.7 4.0 0.2 11BPS003 11.45 20.14 21 17 12.9 0.10 0.02 0.4 0.3 1.3 0.3 1.7 0.6 0.1 0.1 11BPS004 11.65 67.02 7 13 41.2 0.66 0.05 0.5 0.9 27.2 2.2 27.7 3.1 2.4 0.3 11BPS005 11.75 49.28 8 239 24.0 0.27 0.00 0.4 11.8 6.6 0.0 7.0 11.8 0.6 1.0

17

661200 661600 662000 662400 662800 663200 663600 664000 664400 664800

880 940 840

980 960 860 920 900 Legend

820 880 860 860 Tulameen Property

840 800 5490400 Placer Claims 5490400 ² 840 840 800 820 840Road 780 Rivers

$+ 2008 HMC Sample 11BPS001 5490000 08KRH004 )" 5490000 )" 08KRH005 2011 HMC Sample $+ $+ 08KRH001 $+

L 840 5489600 11BPS002 A 5489600 )" U M 820 11BPS003 860 )" 860 E 08KRH003 840 900 880 08KRH002 920 $+$+ 1000 )" 11BPS004 E 5489200 5489200 COLLINS GULCHh PLACER 760 800 940 c 1060 N 1040 980 11BPS005 760 960 )" M T 1100 l 860 1260 820 1140 1320 1320 5488800 1300 1120 u 780 5488800 J A C K S O N 1220

1320 1280 1160 G 1320 1280

1020

5488400 1200 5488400 WEDGE1080 RESOURCES LTD.

1240 Tulameen Property 1080 Total Magnetic Intensity

1240 1140 1140 Figure 4

1260 1160

5488000 0 87.5 175 350 525 700 5488000 1120 Meters CEDAR CREEK PLACER 800

1280 s 1:16,000 1220 1180 1240 UTM Nad83 / Zone 10 760 1180 20 Metre Contour Interval n 1200 1100 1260 780 1280 APEX Geoscience Ltd. May 2012 5487600 5487600 661200 661600 662000 662400 662800 663200 663600 664000 664400 664800 SAMPLING METHOD AND APPROACH

A total of 5 HMC sediment samples were collected and submitted for gold grain analysis at the SRC. The purpose of HMC sampling was to provide an expansion of the preliminary 2008 qualitative estimate of the placer gold content of distinct fluvial gravel terraces identified at the Tulameen Property. Samples were collected from the Tulameen River, three separate fluvial gravel terraces and from Collins Gulch stream bed. Sample locations were collected using a Garmin™ GPSmap 60CX handheld Global Positioning System (GPS) receiver using the Universal Transverse Mercator Zone 10, North American 1983 datum. Sample locations were marked in the field using flagging tape bearing a unique sample identification number. Sampling involved dry or wet screening of approximately 6 Kg of gravel using a 2 millimeter (mm) screen. The less than 2 mm fraction was retained for analysis and the greater than 2 mm fraction was discarded. Samples were then placed in a polyethylene bag marked with the sample number and secured with a plastic cable tie.

SAMPLE PREPARATION, ANALYSES AND SECURITY

A summary description and flowchart describing the sample processing procedure employed by the SRC during gold grain analysis of HMC sediment samples is presented in Appendix 3. All samples were collected and sealed in the field by the author and sent via Greyhound Courier Express Canada to the SRC.

Although the author did not have control over the samples at all times, the author has no reason to believe any of the HMC samples have been compromised and that the sample preparation, security and analytical procedures performed by the SRC are adequate.

INTERPRETATIONS AND CONCLUSIONS

The Tulameen Property lies adjacent to the Tulameen River, an area of significant historic placer gold and platinum production. Gold was first found in small amounts on the Similkameen River in 1853 however it was not until 1860 that placer mining was carried with any regularity. Placer gold production peaked during 1886, one year after the discovery of gold on Granite Creek. Total placer gold production from the Similkameen District between 1885 and 1945 is estimated at 41,938 ounces. By 1891 the Tulameen region was recognized as the most productive platinum region in North America. Total platinum production is recorded as 9,860 ounces, however it is generally accepted that actual production was closer to 20,000 ounces.

The Tulameen claims occur within the Tulameen River valley between Granite Creek and Slate (Olivine) Creek. In the area above Slate Creek the Tulameen River narrows and placer deposits typically lie within the stream bed.

19

Early prospectors exploited easily worked shallow basal gravel deposits and avoided the region between Granite Creek and Slate Creeks due to the presence of deep alluvium, glaciofluvial, lacustrine and till deposits. Therefore the Tulameen claims are considered to have the potential to host previously unrecognized placer gold and platinum deposits.

The origin of platinum within the Tulameen Placers has been linked to cumulate chromite layers within Tulameen Complex dunite based on olivine chemistry similarities between Tulameen Complex olivine-chromite intergrowths and olivine-bearing platinum nuggets.

Ground geophysical surveys and reconnaissance surficial geological investigations completed during 2008 and 2011 indicate the presence of magnetic anomalies which underlie at least two distinct fluvial sediment terraces. Gold and platinum bearing fluvial placers may be associated with subeconomic concentrations of various magnetic heavy minerals such as magnetite and ilmenite. Based on their location and distinctive curvilinear shape these anomalies are interpreted to represent concentrations of magnetic minerals within buried basal or plaeo-channel gravels. The results of HMC sediment sampling have shown the presence of visible gold grains within the Tulameen River, Collins Gulch and fluvial gravel terraces.

20

RECOMMENDATIONS

Based on the presence of gold (in stream sediment) and magnetic anomalies, favorable geology, and a historic record of significant placer gold and platinum production the Tulameen Property is of high priority for follow-up exploration. An exploration program is warranted and recommended for the Tulameen Property. The summer and fall 2012 exploration should comprise but not be limited to:

Phase 1: A field based program including surficial geologic mapping and completion of ground magnetic surveys over the remainder of the claims.

Phase 2: Reverse circulation drill testing of priority geophysical targets.

APEX Geoscience Ltd.

Kristopher J. Raffle, B.Sc., P.Geol. Edmonton, Alberta, Canada May 30, 2012

21

REFERENCES

Camsell, C. (1907): Preliminary Report on Part of the Similkameen District, British Columbia; Geological Survey of Canada, Preliminary Report 986.

Camsell, C. (1913): Geology and Mineral Deposits of the Tulameen District, B.C.; Geological Survey of Canada, Memoir 26, 188 pages.

Cochrane, D.R. (1977): Assessment Report on a Brief Geological Examination of P.M.L. 1475; British Columbia Ministry of Energy, Mines and Petroleum Resources Assessment Report 6508, 17 pages.

Cochrane, D.R. (1978): Assessment Report on a Biogeochemical Test Line Across Placer Mining Lease 1475; British Columbia Ministry of Energy, Mines and Petroleum Resources Assessment Report 6980, 14 pages.

Findlay, D.C., (1963): Petrology of the Tulameen Ultramafic Complex, Yale District, British Columbia; unpublished Ph.D. thesis, Queen’s University, 415 pages.

Galloway, J.D. (1931): Bulletin No. 1, 1931, Placer Mining in British Columbia; pages 92-93.

Greig, C.J. (1992): Jurassic and Cretaceous Plutonic and Structural Styles of the Eagle Plutonic Complex, Southwestern British Columbia, and their Regional Significance, Canadian Journal of Earth Sciences, Volume 29, pages 793-811.

Hills, L.V. (1962): Glaciation, Stratigraphy, Structure and Micropaleobotany of the Princeton Coal field, British Columbia; unpublished M.Sc. thesis, The University of British Columbia, B.C., 141 pages.

Holland, S.S. (1983): Ministry of Energy, Mines and Petroleum Resources, Bulletin No. 28, Placer Gold Production of British Columbia; page 55.

Kemp, J.F. (1902): The Geological Relation and Distribution of Platinum and Associated Metals, U.S. Geological Survey Bulletin 193, Pages 38-49.

Levson, V.M. (1995): Surficial placers; in Selected British Columbia Mineral Deposit Profiles, Volume 1, D.V. Lefebure and G.E. Ray, Editors, British Columbia Ministry of Energy, Mines and Petroleum Resources, pages 21-23.

McMechan, R.D. (1983): Geology of the Princeton Basin; B.C. Ministry of Energy, Mines and Petroleum Resources, Paper 1983-3, 52 pages

22

Monger, J.W.H. (1985): Structural Evolution of the South western Intermontane Belt, Ashcroft and Hope Map Areas, British Columbia; in Current Research, Part A, Geological Survey of Canada Pa per 85-1A, pages 349-358.

Monger, J.W.H. (1989): Geology, Hope, British Columbia; Geological Survey of Canada, Map 41-1989, sheet 1.

Nixon, G.T., Hammack, J.L., Ash, C.A., Cabri, L.J., Case, G., Connelly, J.N., Heaman, L.M., Laflamme, J.H.G., Nuttall, C., Paterson, W.P.E., and Wong, R.H., (1997): Bulletin 93: Geology and Platinum-Group-Element Mineralization of Alaskan-Type Ultramafic-Mafic Complexes in British Columbia, 126 pages.

Poitevin, E; (1923): Platiniferous Rocks From Tulameen Map-Area, Yale District, British Columbia, and Ural Mountains, Russia; in, Summary Report 1923 Part A; Geological Survey of Canada, Summary Report, pages 84-101

Preto, V.A. (1975): The Nicola Group: Mesozoic Volcanism Related to Rifting in Southern British Columbia; in Volcanic Regimes in Canada, Baragar, W.R.A., Coleman, L.G. and Hall, J.M., Editors, Geological Association of Canada, Special Paper 16, pages 38-57.

Read, P.B. (2000): Geofile 2000-3: Geology and Industrial Minerals of the Tertiary Basins, South-Central British Columbia, British Columbia Ministry of Energy Mines and Petroleum Resources, pages 5-16.

Rice, H.M.A. (1947): Geology and Mineral Deposits of the Princeton Map-area, British Columbia; Geological Survey of Canada, Memoir 243, 136 pages.

Robertson, W.F. (1924): Annual Report of the Minister of Mines for the Year Ending 31st December, 1923, Being an Account of Mining Operations for Gold, Coal, Etc., in the Province of British Columbia; pages 187-188.

Robson, J.N.O. (1886): Annual Report of the Minister of Mines for the Year Ending 31st December, 1885, Being an Account of Mining Operations for Gold, Coal &C., in the Province of British Columbia; pages 492-496.

Robson, J.N.O. (1887): Annual Report of the Minister of Mines for the Year Ending 31st December, 1886, Being an Account of Mining Operations for Gold, Coal &C., in the Province of British Columbia; pages 213-214.

Shaw, W.S. (1952): The Tulameen Coal field, B.C.; Geological Survey of Canada, Paper 52-19, 13 pages.

St. Louis, R.M., Nesbitt, B.E., Morton, R.D. (1986): Geochemistry of Platinum Group Elements in the Tulameen Ultramafic Complex, Southern British Columbia; Economic Geology, Volume 81, pages 961-973.

23

CERTIFICATE OF AUTHOR

I, Kristopher J. Raffle, residing at 1277 Nelson Street, Vancouver, British Columbia, Canada do hereby certify that:

1. I am a Senior Geologist employed by APEX Geoscience Ltd. (“APEX”), Suite 200, 9797 – 45 Avenue, Edmonton, Alberta, Canada. I am the author of the report entitled: “Assessment report for the Tulameen Property, Tulameen British Columbia”, dated May 30, 2012, and am responsible for the preparation of the entire report.

2. I am a graduate of the University of British Columbia, Vancouver, British Columbia with a B.Sc. in Geology (2000) and have practised my profession continuously since 2000.

3. I am a Professional Geologist registered with APEGGA (Association of Professional Engineers, Geologists and Geophysicists of Alberta), and a ‘Qualified Person’ in relation to the subject matter of this report.

4. I have not received, nor do I expect to receive, any interest, directly or indirectly, in the Tulameen Property and do not hold securities of Nolat Resources. I did not have any prior involvement with the Property.

5. To the best of my knowledge, information and belief, the assessment report contains all scientific and technical information that is required to be disclosed to make the assessment report not misleading.

6. I have read and understand National Instrument 43-101 and the Report has been prepared in compliance with the instrument. I am considered independent of the issuer as defined in Section 1.4.

7. I visited the Property that is the subject of this Report during September 2011 and directed exploration at the Property on behalf of Nolat Resources.

8. I hereby consent to the use of this Report and my name in the preparation of a prospectus for the submission to any Provincial or Federal regulatory authority.

Kristopher J. Raffle, B.Sc., P.Geo. Edmonton, Alberta, Canada May 30, 2012

24

Appendix 1 2011 Exploration Expenditures

APEX Geoscience Ltd. 2011 Tulameen Property Expenditures

Date Num Description Amount Geological field work 09/26/2011 2011-456 Geological Services Performed Field - Kris Raffle (July 22-Aug 21/11) 1,500.00 09/26/2011 2011-456 Geological Services Performed Field - Bahram Bahrami (July 22-Aug 21/11) 450.00 Total Geological field work 1,950.00

Geological office work 09/26/2011 2011-456 Geological Services Performed Office - Kris Raffle (June 22-July 21/11) 202.50 09/26/2011 2011-456 Geological Services Performed Office - Kris Raffle (July 22-Aug 21/11) 322.50 09/26/2011 2012-TBD Geological Services Performed Office - Brett Hannigan (Dec 22/11-Jan 21/12) 140.00 Total Geological office work 665.00

Clerical 09/26/2011 2011-456 Clerical Services - Amber Aloisio (July 22-Aug 21/11) 19.50 Total Clerical 19.50

HR & Safety 09/26/2011 2011-456 Human Resource and Safety Services - Sean Hawkes (July 22-Aug 21/11) 280.00 Total HR & Safety 280.00

Overhead & management fee 09/26/2011 2011-456 Operator's overhead and management fee (10%) 567.19 Total Overhead & management fee 567.19

Third Party Assays & related costs 03/07/2012 TBD SRC Saskatchewan: assay analysis, certificate TBD, 2012, inv TBD 500.00 Total Assays & related costs 500.00

Freight - samples 03/07/2012 Brett Hannigan: freight, samples, Jan 4/12 431.38 Total Freight - samples 431.38

Rental - automotive 09/08/2011 Kris Raffle: vehicle rental, Aug 3-6/11 301.38 Total Rental - automotive 301.38

Travel - accommodations 08/06/2011 Sandman Inn: hotel, Kris Raffle & Barrie Palmer, Princeton, Aug 5-6/11 170.00 08/12/2011 Carmana Plaza: hotel, Barrie Palmer, Vancouver, Aug 9-12/11 535.50 Total Travel - accommodations 705.50

Travel - food 09/08/2011 Kris Raffle: food, Aug 5/11 4.05 Total Travel - food 4.05

Travel - fuel 09/08/2011 Kris Raffle: fuel, Aug 5-6/11 121.35 Total Travel - fuel 121.35

Travel - taxi, parking & other 09/08/2011 Kris Raffle: parking, Aug 5-6/11 58.93 Total Travel - taxi, parking & other 58.93

Telephone - Edmonton 08/04/2011 11552674 Allstream: long distance charges, July/11, inv 11552674 0.16 09/04/2011 11664552 Allstream: long distance charges, Aug/11, inv 11664552 0.36 Total Telephone - Edmonton 0.52

Total Third Party 2,123.11

Total expenditures for Tulameen Claims: $5,604.80

Page 1 of 1

Appendix 2 2011 HMC Analytical Certificates and Sample Descriptions

Tulameen Property 2011 HMC Sample

Grid UTM Datum NAD83 Zone 10

Name Description Easting Northing Elevation (m) Big Bag Weight (kg)

11BPS001 06-Aug-11 662387 5489888 783 16 11BPS002 06-Aug-11 661162 5489483 825 15 11BPS003 06-Aug-11 663398 5489383 805 13 11BPS004 06-Aug-11 663605 5489168 809 14 11BPS005 06-Aug-11 663945 5488881 847 14 SRC Geoanalytical Laboratories Report No: G-12-154 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] Gold Grain Report Apex Geoscience Ltd April 02, 2012 Attention: Kris Raffle PO #/Project: Samples: 5 Sample # Sample Weight in Visible Gold Grain Estimated Weight Kg Count of Gold in µg

11BP5001 15.30 14 279.36 11BP5002 12.75 3 30.97 11BP5003 11.45 1 0.28 11BP5004 11.65 4 3.83 11BP5005 11.75 2 6.16

1Pageof 6 SRC Geoanalytical Laboratories Report No: G-12-154 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] Gold Grain Description Detail Apex Geoscience Ltd April 02, 2012 Attention: Kris Raffle PO #/Project: Sample Number: 11BP5001

Estimated Weight of Gold in micrograms: 279.36

Length Width Description in µm in µm

560 420 A 360 20 A 320 320 A 280 160 A 260 160 A

240 160 A 240 160 A 200 160 A 180 100 A 160 160 A

160 160 A 140 120 A 140 120 A 120 120 A

Delicate (D) - Bedrock gold crystallizes as pitted granular masses with smooth protruding crystals. Irregular (I) - After short ice transport, crystals are removed leaving smaller pitted grains with several protrusions. Grains may become curled.

Abraded (A) - With increasing transport, protrusions break off irregular grains producing several smaller leaf shaped grains. Pitted surfaces become smooth.

Rounded (R) - results from continued abrasion, producing small polished spherical or ellipsoidal grains.

Please note that combinations of the descriptions may be used if different characteristics within each individual grain are obser 2Pageof 6 SRC Geoanalytical Laboratories Report No: G-12-154 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] Gold Grain Description Detail Apex Geoscience Ltd April 02, 2012 Attention: Kris Raffle PO #/Project: Sample Number: 11BP5002

Estimated Weight of Gold in micrograms: 30.97

Length Width Description in µm in µm

280 160 A 240 200 A 140 40 I/D

Delicate (D) - Bedrock gold crystallizes as pitted granular masses with smooth protruding crystals. Irregular (I) - After short ice transport, crystals are removed leaving smaller pitted grains with several protrusions. Grains may become curled.

Abraded (A) - With increasing transport, protrusions break off irregular grains producing several smaller leaf shaped grains. Pitted surfaces become smooth.

Rounded (R) - results from continued abrasion, producing small polished spherical or ellipsoidal grains.

Please note that combinations of the descriptions may be used if different characteristics within each individual grain are obser 3Pageof 6 SRC Geoanalytical Laboratories Report No: G-12-154 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] Gold Grain Description Detail Apex Geoscience Ltd April 02, 2012 Attention: Kris Raffle PO #/Project: Sample Number: 11BP5003

Estimated Weight of Gold in micrograms: 0.28

Length Width Description in µm in µm

60 60 A

Delicate (D) - Bedrock gold crystallizes as pitted granular masses with smooth protruding crystals. Irregular (I) - After short ice transport, crystals are removed leaving smaller pitted grains with several protrusions. Grains may become curled.

Abraded (A) - With increasing transport, protrusions break off irregular grains producing several smaller leaf shaped grains. Pitted surfaces become smooth.

Rounded (R) - results from continued abrasion, producing small polished spherical or ellipsoidal grains.

Please note that combinations of the descriptions may be used if different characteristics within each individual grain are obser 4Pageof 6 SRC Geoanalytical Laboratories Report No: G-12-154 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] Gold Grain Description Detail Apex Geoscience Ltd April 02, 2012 Attention: Kris Raffle PO #/Project: Sample Number: 11BP5004

Estimated Weight of Gold in micrograms: 3.83

Length Width Description in µm in µm

140 100 A 100 60 I 80 40 A 60 60 A/I

Delicate (D) - Bedrock gold crystallizes as pitted granular masses with smooth protruding crystals. Irregular (I) - After short ice transport, crystals are removed leaving smaller pitted grains with several protrusions. Grains may become curled.

Abraded (A) - With increasing transport, protrusions break off irregular grains producing several smaller leaf shaped grains. Pitted surfaces become smooth.

Rounded (R) - results from continued abrasion, producing small polished spherical or ellipsoidal grains.

Please note that combinations of the descriptions may be used if different characteristics within each individual grain are obser 5Pageof 6 SRC Geoanalytical Laboratories Report No: G-12-154 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] Gold Grain Description Detail Apex Geoscience Ltd April 02, 2012 Attention: Kris Raffle PO #/Project: Sample Number: 11BP5005

Estimated Weight of Gold in micrograms: 6.16

Length Width Description in µm in µm

160 160 A 60 40 A

Delicate (D) - Bedrock gold crystallizes as pitted granular masses with smooth protruding crystals. Irregular (I) - After short ice transport, crystals are removed leaving smaller pitted grains with several protrusions. Grains may become curled.

Abraded (A) - With increasing transport, protrusions break off irregular grains producing several smaller leaf shaped grains. Pitted surfaces become smooth.

Rounded (R) - results from continued abrasion, producing small polished spherical or ellipsoidal grains.

Please note that combinations of the descriptions may be used if different characteristics within each individual grain are obser 6Pageof 6 SRC Geoanalytical Laboratories Report No: G-12-154 Apex Geoscience Ltd 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Attention: Kris Raffle Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] PO #/Project: Date of Report: April 02, 2012 Samples: 11 Knelson Concentrates

Column Header Details

Original Sample Weight in kilograms (SWT) +1.7mm in grams (+1.7mm) Knelson Concentrate in grams (Knelson Conc)

Sample SWT +1.7mm Knelson Conc Number kg g g

11BP5001 15.30 818.1 17.1 11BP5002 12.75 566.0 47.5 11BP5003 11.45 748.7 12.9 11BP5004 11.65 193.2 41.2 11BP5005 11.75 365.8 24.0

1Pageof 1 SRC Geoanalytical Laboratories 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected]

Apex Geoscience Ltd Report No: G-12-154 Attention: Kris Raffle PO #/Project: Date of Report: May 30, 2012 Samples: 5 Fire Assay

Column Header Details Au Fire Assay by ICP in ppb (Au) Pt Fire Assay by ICP in ppb (Pt) Pd Fire Assay by ICP in ppb (Pd)

Au Fire Assay Pt Fire Assay Pd Fire Assay ppb ppb ppb Description 11BPS001 Mozley Conc 12390 1668 15 11BPS002 Mozley Conc 1020 35 <2 11BPS003 Mozley Conc 100 23 3 11BPS004 Mozley Conc 660 54 <2 11BPS005 Mozley Conc 274 <2 <2

Fire Assay: A pulp is subjected to standard fire assaying procedures. SRC Geoanalytical Laboratories Report No: G-12-154 Apex Geoscience Ltd 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Attention: Kris Raffle Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] PO #/Project: Date of Report: May 28, 2012 Samples: 17

Column Header Details

Shaker Table Concentrate in grams (ShTable Conc) MI Sinks Weight in grams (MIS)

Sample ShTable Conc MIS Number g g

11BP5001 767.9 318.52 11BP5002 394.6 63.27 11BP5003 613.6 20.14 11BP5004 380.8 67.02 11BP5005 520.9 49.28

1Pageof 1 SRC Geoanalytical Laboratories Report No: G-12-154 Apex Geoscience Ltd 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Attention: Kris Raffle Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] PO #/Project: Date of Report: May 25, 2012 Samples: 7 Fire Assay

Column Header Details

Au Fire Assay by ICP in in ppb (Au) Pt Fire Assay by ICP in in ppb (Pt) Pd Fire Assay by ICP in in ppb (Pd)

Sample Au Pt Pd Number ppb ppb ppb

11BPS001 Shaker Table Conc 59 70 15 11BPS002 Shaker Table Conc 39 17 7 11BPS003 Shaker Table Conc 21 17 5 11BPS004 Shaker Table Conc 7 13 3 11BPS005 Shaker Table Conc 8 239 3

11BPS004 Shaker Table Conc R 8 15 4

Fire Assay: A pulp is subjected to standard fire assaying procedures.

1Pageof 1 SRC Geoanalytical Laboratories Report No: G-12-154 Apex Geoscience Ltd 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Attention: Kris Raffle Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] PO #/Project: Date of Report: May 25, 2012 Samples: 17 Multi-Element ICP Analysis Aqua Regia Digestion

Column Header Details

Silver in ppm (Ag) Aluminum in wt % (Al2O3) Arsenic in ppm (As) Barium in ppm (Ba) Berylium in ppm (Be)

Bismuth in ppm (Bi) Calcium in wt % (CaO) Cadmium in ppm (Cd) Cobalt in ppm (Co) Chromium in ppm (Cr)

Copper in ppm (Cu) Iron in wt % (Fe2O3) Mercury in ppm (Hg) Potassium in wt % (K2O) Lanthanum in ppm (La)

Magnesium in wt % (MgO) Manganese in wt % (MnO) Molybdenum in ppm (Mo) Sodium in wt % (Na2O) Nickel in ppm (Ni)

Phosphorus in wt % (P2O5) Lead in ppm (Pb) Sulfur in ppm (S) Antimony in ppm (Sb) Scandium in ppm (Sc)

Selenium in ppm (Se) Tin in ppm (Sn) Strontium in ppm (Sr) Titanium in wt % (TiO2) Uranium in ppm (U, ICP)

Vanadium in ppm (V) Tungsten in ppm (W) Yttrium in ppm (Y) Zinc in ppm (Zn) Zirconium in ppm (Zr)

1Pageof 3 SRC Geoanalytical Laboratories Report No: G-12-154 Apex Geoscience Ltd 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Attention: Kris Raffle Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] PO #/Project: Date of Report: May 25, 2012 Samples: 17 Multi-Element ICP Analysis Aqua Regia Digestion

Sample Ag Al2O3 As Ba Be Bi CaO Cd Co Cr Cu Fe2O3 Hg K2O La MgO MnO Mo Number ppm wt % ppm ppm ppm ppm wt % ppm ppm ppm ppm wt % ppm wt % ppm wt % wt % ppm

LS4 0.2 5.81 12 298 2.7 2 0.48 1 39 84 50 10.6 <1 0.50 40 1.04 0.639 16 11BPS001 Shaker Table Conc <0.2 0.63 1 77 <0.5 <1 0.56 <1 68 470 33 45.4 <1 0.02 3 1.10 0.061 <1 11BPS002 Shaker Table Conc <0.2 1.15 5 101 <0.5 <1 1.26 <1 77 542 74 43.2 <1 0.04 16 1.87 0.107 <1 11BPS003 Shaker Table Conc <0.2 2.48 1 435 <0.5 <1 3.03 <1 57 638 48 34.3 <1 0.08 25 2.34 0.122 1 11BPS004 Shaker Table Conc <0.2 1.30 1 75 <0.5 <1 1.38 <1 65 533 49 37.7 <1 0.05 5 2.02 0.092 <1

11BPS005 Shaker Table Conc <0.2 1.52 1 91 <0.5 <1 1.54 <1 68 615 49 47.1 <1 0.06 20 1.32 0.118 <1 11BPS004 Shaker Table Conc R <0.2 1.27 <1 75 <0.5 <1 1.40 <1 67 527 47 38.1 <1 0.02 4 1.97 0.089 <1

2Pageof 3 SRC Geoanalytical Laboratories Report No: G-12-154 Apex Geoscience Ltd 125 - 15 Innovation Blvd., Saskatoon, Saskatchewan, S7N 2X8 Attention: Kris Raffle Tel: (306) 933-8118 Fax: (306) 933-5656 Email: [email protected] PO #/Project: Date of Report: May 25, 2012 Samples: 17 Multi-Element ICP Analysis Aqua Regia Digestion

Sample Na2O Ni P2O5 Pb S Sb Sc Se Sn Sr TiO2 U, ICP V W Y Zn Zr Number wt % ppm wt % ppm ppm ppm ppm ppm ppm ppm wt % ppm ppm ppm ppm ppm ppm

LS4 0.02 49 0.515 26 1740 <1 7 <1 2 24 0.15 33 101 <1 19 206 3 11BPS001 Shaker Table Conc 0.01 122 0.199 42 159 22 3 <1 <1 17 0.41 12 1350 <1 13 67 <1 11BPS002 Shaker Table Conc 0.03 134 0.223 46 548 19 5 <1 <1 59 0.60 13 1160 <1 20 104 3 11BPS003 Shaker Table Conc 0.08 120 0.163 35 1460 9 12 <1 <1 151 0.84 9 900 <1 22 98 5 11BPS004 Shaker Table Conc 0.03 127 0.206 39 212 14 4 <1 <1 69 0.63 12 982 <1 20 98 5

11BPS005 Shaker Table Conc 0.04 115 0.237 47 294 28 7 <1 <1 70 0.82 14 1310 <1 24 141 6 11BPS004 Shaker Table Conc R 0.02 125 0.202 40 207 15 3 <1 <1 68 0.62 14 991 <1 19 95 4

Aqua Regia: A 0.5 g pulp is digested with 2.00 ml of 3:1 HCL:HNO3 for 1 hour at 95 C. The standard is LS4.

3Pageof 3

Appendix 3 2011 HMC Analytical Procedures

Field Sample (Weigh)

Deslime, Wet Screen ± 1.70

+1.70 mm -1.70 mm (save)

Knelson Concentrator

Knelson Lights Knelson Heavies (save) Mozley Super Panning Shaker Table Mozley Gold Mozley Light Grains Heavies (Save) Shaker Table Lights Shaker Table Heavies Hand Pan MI SG Verified Gold Grains Heavy Liquids MI SG 3.30 3.30±0.01 Microscopy Gold Grains SG < 3.30 SG > 3.3 Save - size (save) (weigh) - morphology - estimated weight Puck and Ring: Mild steel - report grinding Analyze: - Fire Assay: PGE + Au - ICP Multi element Pkg (30 elements) Assay (Au, Pt, Pd) Mozley concentrate

Report Report

SRC Geoanalytical Laboratories Flowchart 3.2: APEX GEOSCIENCE LTD. Gold Processing/Heavy Liquid / ICP, Au,Pt, Pd Effective Date: 24 May 2012 Page 1 of 1 The distribution of the document is uncontrolled.

SRC GEOANALYTICAL LABORATORIES

Method Summary

Saskatchewan Research Council Geoanalytical Laboratories

2012

Quality Document: Method Summary 74.0 HL FA ICP1 Date: 29 May 2012 Distribution of this document is uncontrolled Page 2 of 3

Method: Gold Processing by Heavy Liquids, Au, Pt, Pd Fire Assay, and ICP Finish

Method Reference: HL FA ICP1

_

Method Summary:

Sample Preparation:

The sample was weighed upon receipt. The samples were screened at 1.70mm. The +1.70mm material was bagged and weighed. All the -1.70mm material is processed by Knelson concentrator equipment. The knelson light material was further processed using the Shaker Table to produce a heavy mineral concentrate. The light material (shaker table lights) was then placed in a labeled sample bag and saved. The heavy mineral concentrate (shaker table heavies) was placed in stainless steel pan and placed in the oven to dry, and then further processed by MI Heavy Liquid Separation.

Knelson lights:

 The heavy mineral concentrate (shaker table heavies) from the Shaker Table was placed in the funnel with the MI. The sample was stirred and allowed to separate. The sinks ( SG >3.3, heavies) were then drained from the funnel and further processed. The floats ( SG< 3.3, lights) were then weighed, bagged and saved. Material with a Specific Gravity greater than 3.3 (heavies) was weighed, transferred to a labeled plastic snap top vial, puck and ring mild steel ground and a sub-sample was taken for Fire Assay and ICP Multi-element analysis.

Knelson heavies:

 The Knelson heavy concentrate material was sieved at 0.85mm and the -0.85mm fraction was demagnetized and processed by Mozley Separtion Table. The gold grains were removed from the concentrate and counted. The gold grains were then replaced in the original Knelson concentrate (-0.85mm fraction). The remaining light and the heavy material was then further processed by Au, Pt, Pd Fire Assay.

Fire assay:

 An aliquot of sample pulp was mixed with standard fire assay flux in a clay crucible and a silver inquart is added. The mixture was fused. The fusion melt was poured into a form and cooled. The lead bead was recovered and cupeled until only the precious metal bead remains. The bead was then parted in a solution heated in a boiling water bath until the silver dissolves. The solution was decanted leaving the gold in the test tube. Aqua Regia was added to the gold in the test tube and heated in a boiling water bath until the gold dissolves. The sample was then diluted to volume and analyzed by ICP-OES (Perkin Elmer)

Quality Document: Method Summary 74.0 HL FA ICP1 Date: 29 May 2012 Distribution of this document is uncontrolled Page 2 of 3

Sample Digestion for ICP-OES Finish

Partial Digestion:

An aliquot of pulp was digested in a digestion tube, in a mixture of HNO3 :HCl, in a hot water bath, and was then diluted with deionized water.

Total Digestion:

An aliquot of pulp was digested to dryness in a hot block digestion system using a mixture of concentrated HF:HNO3:HClO4. The residue was dissolved in diluted HNO3.

Instrument Analysis:

Instruments in the analysis were calibrated using certified commercial solutions. The instruments used were PerkinElmer Optima 300DV, Optima 4300DV or Optima 5300DV.

Detection Limit:

The detection limit for Au is 2 ppb.

Quality Control:

All screens are calibrated and checked for wear before and during processing.

A quality control sample was prepared and analyzed with each batch of samples. One in every 40 samples was analyzed in duplicate. All quality control results must be within specified limits otherwise corrective action is taken.

Rock Labs standards are used during Fire Assay.

The laboratory also participates in a Certified Interlaboratory Testing Program (CCRMP/PTP- MAL) for gold using this method.

Quality Document: Method Summary 74.0 HL FA ICP1 Date: 29 May 2012 Distribution of this document is uncontrolled Page 2 of 3