Prospecting Report on the Magpie Property

By

John Buckle, P.Geo.

October 25, 2003 REVISED FEBRUARY 15, 2004

2.26586

RECEIVED FEB 1 9

GEOSCIENCE ASSESSMENT j OFFICE—- _ .,

42C02NE2003 2.26586 LECLAIRE 010 Introduction This report covers the work done during the summer and fall of 2003 on the 80 hectar property claim number 1235586. Two 6 claim units were staked November 17 and 18, 2001. Following a declaration from the mining recorder to extend the claim block to enclose the full one square kilometre available in Leclaire township in Sault Ste Marie district, claim map G2782. Mineral claim staking in this township was originally under the control of Algoma Central Railway and subsequently by Wagner Forest Services except for a few claim blocks that predated the ACR agreement. One of these blocks that straddles the Magpie River is Crown Land with mineral rights administered by the Ministry of Northern Development and Mines. The claim block was staked in the name of John Buckle, prospecting license # C39049, client number^ 13252 . The claims were subsequently transferred to Oasis Diamond Exploration the current claim holder.

My first visit to the property was prior to staking on November 16, 2001. On this visit I recognized mafic to intermediate breccia on an outcrop in the Magpie River with a field assistant Mr. Constantine Foussekis. The property was subsequently staked the following two days and reconnaissance samples were collected for examination. On May 6, 2003 I revisited with Mr. Nicolas Pedafironimos of Oasis Diamond exploration. On this visit prospecting and geological mapping of the outcropping peninsula and the opposite coastline on the east shore of the Magpie River.

On August 6, 7, and 8 I examined the outcrop and other points on the claim block assisted by field assistant Mark Cantelon. The property is accessible by boat on the Magpie River from the Steephill dam road approximately 16 kilometers south of the property. The property can also be accessed from the Dubreiville Road and then by the old Magpie Mine Road to the Magpie River and from there by boat 2 kilometers south. The western section of the claim block can be reached by road and foot from the Magpie Mine Road which joins highway 17 about 20 kilometers north of Wawa. In winter a groomed snowmachine trail passes through the centre of the property and along the old Magpie Mine Road. Geological Mapping A well exposed outcrop, 150 meters by 100 meters outcrops as a peninsula in the Magpie River. The outcrop is mafic to intermediate breccia with clasts carbonate, mafic and gneissic country rock. The clasts vary from angular to sub rounded pebbles graduating to angular cobble clasts. The matrix is dominated by ferro-magnesian minerals, biotite and chlorite, apple green alteration implies chrome rich minerals. Foliation and possible volcanoclastic bedding appears to be east west. This interpretation is corroborated by steeply dipping dykes of similar mafic clastic rocks on the east shoreline of the Magpie River approximately 100 east of the original outcrop. Further mapping of the property during a visit to the site October 5-8 2003 confirms that the breccia rock extends into in the east-west orientation more than 400 meters on the east shore of the Magpie and the south shore of a large bay in the river north of the original outcrop. Photographs of the property location, access and outcrop geology are attached in Appendix C Sampling Approximately 42 kilograms of sample were taken from the peninsula outcrop for analysis at Lakefield Research in Lakefield, Ontario. Reference samples were collected from several locations on the property. Exploration Expenditures May 2002 Travel 1200 kilometers @ S0.30 May 2002 ^5360 Accommodation and meals 2 days @ 150 per day =$30() Labour 4 man days at S500 per day =$2000 S2660

August 2003 Travel 1200 kilometers @ S0.30 Aug 2003 Accommodation and meals 2 days @ 150 per day Labour 4 man days at S500 per day S2660

October 2003 Travel 1200 kilometers @ S0.30 Aug 2003 Accommodation and meals 2 days @ 150 per day Labour 4 man days at S500 per day S2660

Sample analysis S3,900.00 311,880.00 Prospecting Report, Magpie Property, Wawa, Ontario For Oasis Diamond Exploration Inc. August 19, 2003 Property The property is located in Leclaire Township approximately 25 kilometers north of the town of Wawa in Northern Ontario. The property is approximately one square kilometer made up one 80 hectar mining claim number 1235586 staked on November 18, 2001. The claim is 100 meters east-west by 800 meters north-south. This claim block was withdrawn from the Wagner Forest Service concession that includes the majority of Leclaire township. The Magpie river bisects the property north to south. Outcrop exposure is very good along the river shoreline. Access The property is best accessible by boat or canoe on the Magpie river. Access points to the Magpie River are available at Steephill dam or by road from the Dubreiville road. The old Magpie mine road approaches the claim block from the east. Active logging in the area has improved road access to the eastern boundary of Leclaire township however beyond this point access is limited to ATV via overgrown and washed-out roadbed. Geology The rocks are archean volcanic rocks of the Wawa greenstone belt and range from mafic flows to volcanic breccia. The formation appears to be oriented east-west although stragraphic tops and flow orientation was not determined during this site visit. Reconnaissance and Sampling I arrived on site late in the evening of August 9, 2003.1 visited the property on Aug. 10, Aug. II and on the morning of Sunday August 12, 2003. My field assistant, Mr. Robert Whiteman and I launched a 16 foot aluminium boat at the Steephill dam on the Magpie River for the 17 kilometre trip to the outcrop location previously reported to Oasis Diamond exploration. Mr. Nick Pedafronimos and Mr. Lampros Pedafronimos accompanied us to the site. Due to motor difficulties we arrived at the sample site at 11 am. Samples were taken from the original sample site #479 and other samples were taken in the immediate vicinity. We returned to the Steephill dam at 1pm at which time the Pedafronimos returned home. Mr. Whiteman and myself returned to the sample site, (in a heavy thunderstorm downpour) to continue the sampling. Two kilogram samples were taken at approximately 25 meter intervals around the outcrop in the Magpie River. The peninsula in the river is a mafic volcanic breccia with predominantly angular clasts of intermediate to felsic xenoliths. The matrix is carbonate rich with thin alteration surface. The rock is moderately to well foliated oriented east west. Flow directions or bedding surfaces could not be determined. The outcrop is well exposed over a 100 meter by 50 meter site. The outcrop disappears under the water of the Magpie River on the North, East and South edges of the occurrence. To the west the breccia is covered by fluvial cobble beach. Samples were consolidated into 3 separate packages, one sample compilation from samples 479 to 485 (no sample 482) 11 kilograms, 486 to 492 (no sample 489)11 kilograms and sample 500 12 kilograms. Sample Locations Magpie Property GPS Posistions NAD 27 Zone 16 Sample* Northing Easting Elevation Description 478 668782 5332092 320 Mafic breccia Composite #1 479 672132 5340957 321 480 672132 5340952 316 481 672148 5340946 320 482 672149 5340936 317 No sample 483 672130 5340957 327 Mafic breccia 484 672148 5340924 344 485 672162 5340989 295 486 672158 5340997 310 Composite #2 487 672173 5340991 308 488 672181 5340990 315 489 672190 5340969 314 No sample 490 672190 5340969 314 Mafic breccia 491 672193 5340960 315 492 672181 5340956 314 500 672132 5340957 321 Composite #3

Sample locations are shown on the sketch map attached as Appendix B. Samples were sealed on site and personally transported by me to Lakefield Research Laboratory in Lakefield, Ontario for caustic fusion analysis for diamond recovery. Two sets of archive hand samples from each of the above sample locations were packaged for future reference. One set of samples was sent by courier to Dia Bras Exploration Inc. the second set remains in my care. Sample results from caustic dissolution analysis at SGS Laboratories in Lakefield, Ontario did not recover any microdiamonds from samples collected during this program. Results and analysis certificate are attached in Appendix A. Recommendations and Conclusions Although the analysis of these rock samples did not recover diamonds, the property has diamond exploration potential. Due to extreme variability in diamond distribution within diamond host rocks, results from small samples, ie. less than several hundred kilograms, are not conclusive regarding the diamond potential, l therefore recommend additional sampling of the known outcrops of mafic hetrolithic breccia and continued geological mapping and subsequent sampling of the claim block on the east side of the Magpie River. Preliminary indication from reconnaissance prospecting indicate that the formation may continue east on the property. Examination of the Ontario Airborne Geophysical Surveys, Magnetic and Electromagnetic Data, Wawa Area, number 1009, available from the Ontario Geological Survey is also recommended as a means of identifying favourable geological units to guide exploration of the claim block. Expenses Travel (km) 1700km SO.SO/km S 510 Meals XI Aug. 9&12 530/day S 60 Meals X2 Aug. 10&11 S607day S 120 Supplies Sample bags etc. 55/ea S 60 ATV rental Aug. 1 1 SSO/day S 50 Prof. Fees Aug9-12 S3507day S 1,400 Assistant wage Aug. 10&11 S1207day S 240 Total expenses for sample collection Dia Bras Magpie S2,440

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Zoom Out Microdiamond Extraction, Selection and Description Mineralogical Services Benoit M. Violette - Dia Bras Exploration Inc. SGS Lakefield Research Ltd. 8901-410/LIMSn MI0018-SEP03______

APPENDIX A

CERTIFICATE OF ANALYSIS RESULTS OF MICRODIAMOND EXTRACTION, SELECTION AND DESCRIPTION SGS Lakefield Research Limited Mineralogical Services

Microdiamond Extraction, Selection and Description submitted by Benoit M. Violette, Dia Bras Exploration Inc. 8901-410 MI0018-SEP03

NOTE: This report refers to the samples as received.

The practice of this Company in issuing reports of this nature is to require the recipient not to publish the report or any part thereof without the written consent of SGS Lakefield Research Limited.

Lakefield Research SGS Lakefield Research Limited P.O. Box 4300, 185 Concession Street, Lakefield, Ontario, Canada KOL 2HO Tel: (705) 652-2000 Fax:(705)652-6365 www.lakefield.com www.sgs.com Member of SGS Group (Societe Generale de Surveillance)

7 October 2003 Microdiamond Extraction, Selection and Description Mineralogical Services Benoit M. Violette - Dia Bras Exploration Inc. SGS Lakefield Research Ltd.

Summary Microdiamond Extraction, Selection and Description

Microdiamond extraction, selection and description was performed for the three samples listed in Table 1. The caustic dissolution residues were collected on a 150 mesh (100 jim) screen, and then submitted for Frantz magnetic separation to concentrate the microdiamonds into the non-paramagnetic fraction. All samples were barren of diamond. These results are reported as a Certificate of Analysis in Appendix

A. Please note that spike recovery across two sizes (35 and 80 mesh) of synthetic spikes was greater than 9607o for all samples.

Table 1: Samples submitted for caustic dissolution and microdiamond description.

1: 479-85 2: 486-92 3: 500

A detailed description of the microdiamond extraction process, as well as a generalized processing flow sheet, may be found in Appendix B.

SGS Lakefield Research Limited

, Ph.D., P. Geo. Managerrlvlineralogical Services SGS Lakefield Research Limited

7 October 2003

Technical Support: Rob Gill, Scott Young, Chris Pearson, Maria Mezei and Tracy Gill SGS lakefield Research Limited P.O. Box 4300 - 185 Concession St. Lakefield - Ontario - KOL 2HO Phone: 705-652-2019 FAX: 705-652-3123

Dia Bras Exploration Inc. Attn : Benoit M Violette Lakefield Thursday,0ctober02,2003

630 Rene-Levesque Blvd. Suite 2855 Date Ree.; 12 September 2003 Montreal, Quebec - H3B 1S6 LR. Ref. : MI0018-SEP03 Canada Project: 8901-410 Fax :(514) 866-6193

CERTIFICATE OF ANALYSIS

Sample ID 'Login Wt *# Pours *Dia *Dia kg # (ct) 1: Sample 479-85 9.50 2 0 0.000 2: Sample 486-92 9.66 2 0 0.000 3: Sample 500 10.10 2 0 0.000

P.Geo - Diamond Services

3 (CAEAL). LAKEFIELD RESEARCH LIMITED

SGS Lakefield Research Limited 185 Concession St., Box 4300 Tel: (705) 652-2112 Lakefield, Ontario Fax:(705)652-3123 KOL 2HO, CANADA Email: [email protected] DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901-410 Date: October 2, 2003 Client: Dia Bras Exploration Inc. LMS No. MI0018-SEP03 Sample No. 479-85

Diamond Number of Group Weight Group Carats Size Fractions Stones in Group (mg) (calculated) li -^ + 4.75 mm 0 0.000 0.000 -4.75 7 + 3.35 mm 0 0.000 0.000 StonesDescribeda WeighedIndividual -3.35 7 + 2,36 mm 0 0.000 0.000 -2.36 7+1. 70 mm 0 0.000 0.000 - 1.70/+ 1.18mm 0 0.000 0.000 - 1.18 7 + 0.85 mm 0 0.000 0.000 -850 7 + 600 firn 0 0.000 0.000 -600 7 + 425 urn 0 0.000 0.000 StonesDescribed Individually1 GroupWeighed -425 7 -f- 300 urn 0 0.000 0.000 -300 7+2 12 (am 0 0.000 0.000 -2127 U50 urn 0 0.000 0.000 -150 7+100 jam 0 0.000 0.000 TOTAL 0 0.000 0.000

Sample Weight: 9.50 kg Total Weight (carats)*: 0.000 Number of Syndites: O Number of Diamonds: O

* Total Weight (carats) was calculated from mg weights. All reported mg weights are weighed to within 0.002 mg.

©tjj^tA-^^^iSJiuL/ Selection and Descript ion Tracy Gill Maria Mezei Mineralogy Technician Diamond Selection Specialist fote: SGS Lakefield Research Limited is not responsible for the determination of the origin, quality or value of any diamonds recovered. Each +3S mesh (Tyler sieve; -0.420 mm) stone was individually weighed, and the -35 mesh stones were weighed in groups. Accredited by the Standards Council of Canada to the ISO/1©EC Guide 25 standard for specific registered tests.

Page 1 LAKEFIELD RESEARCH LIMITED

SGS Lakefield Research Limited 185 Concession St., Box 4300 Tel: (705) 652-2112 Lakefield, Ontario Fax:(705)652-3123 KOL 2HO, CANADA Email: [email protected] DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901-410 Date: October 2, 2003 Client: Dia Bras Exploration Inc. LIMS No. MI0018-SEP03 Sample No. 486-92

Mesh Fraction Dissolution Residue Description +6 Ferromagnetic Non-mag Not applicable

-6+20 Ferromagnetic Non-mag Rock fragments

+150 Ferromagnetic Mag Oxides -20+150 Ferromagnetic Non-mag (Fus.Res.) Oxides and silicates -20+150 Paramagnetic Mag (0.3 amp) Not applicable

-20+150 Diamagnetic Mag (0.5 amp) Not applicable

-20+150 Diamagnetic Non-mag (0.5 amp) Not applicable

Sample Weight: 9.66 kg Total Weight (carats)*: 0.000 Number of Svndites: O Number of Diamonds: O

* Total Weight (carats) was calculated from mg weights. All reported mg weights are measured to within 0.002 mg.

Selection and Description (^tfalify Control Tracy Gill Maria Mezei Mineralogy Technician Diamond Selection Specialist

Note: SGS Lakefield Research Limited is not responsible for the determination of the origin, quality or value of any diamonds recovered. Each +3S mesh (Tyler sieve; +0.420 mm) stone was individually weighed, and the -35 mesh stones were weighed in groups. Stone dimensions are limited to accuracy of three dimensional measurements of irregular shapes using a petrographic microscope. Accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for specific registered tests. LAKEF1ELD RESEARCH LIMITED

SGS Lakefield Research Limited 185 Concession St., Box 4300 Tel: (705) 652-2112 Lakefield, Ontario Fax:(705)652-3123 KOL 2HO, CANADA Email: [email protected] DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901-410 Date: October 2, 2003 Client: Dia Bras Exploration Inc. LIMS No. MI0018-SEP03 Sample No. 500

Mesh Fraction Dissolution Residue Description +6 Ferromagnetic Non-mag Not applicable -6+20 Ferromagnetic Non-mag Rock fragments +150 Ferromagnetic Mag Oxides -20+150 Ferromagnetic Non-mag (Fus.Res.) Oxides and silicates -20+150 Paramagnetic Mag (0.3 amp) Not applicable -20+150 Diamagnetic Mag (0.5 amp) Not applicable

-20+150 Diamagnetic Non-mag (0.5 amp) Not applicable

Sample Weight: 10.10 kg Total Weight (carats)*: 0.000 Number of Syndites: O Number of Diamonds: O

* Total Weight (carats) was calculated from mg weights. All reported mg weights are measured to within 0.002 mg.

Selection and Description Tracy Gill Maria Mezei Mineralogy Technician Diamond Selection Specialist

Note: SGS Lakefield Research Limited is not responsible for the determination of the origin, quality or value of any diamonds recovered. Each +S5 mesh (Tyler sieve; +0.420 mm) stone was individually weighed, and the -35 mesh stones were weighed in groups. Stone dimensions are limited to accuracy of three dimensional measurements of irregular shapes using a petrographic microscope. Accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for specific registered tests. Invoice #: M3078

October 08, 2003 G.S.T. if 89921 6352RT (280) Dia Bras Exploration Inc. 630 Rene-Levesque Blvd. Suite 2855 Montreal, Quebec Canada, H3B 1S6 Attn : Benoit M Violette Project: 8901-410 Reference : LR2302720 Lr. Ref. : MI0018-SEP03

Qty Analysis Description S Unit S Total Caustic 1st Pour ^ kg 450.00 1350.00 Caustic Addit. PoursDurs 320.00 960.00 3 Caustic Di sp < 50000 Kg 200.00 600.00 "i Micros Nil Stones:s 130.00 390.00 3 ient@ 100X0 130.00 390.00 SUB TOTAL S 3690.00

Analysis 3690.00 3690.00 GST 7 "/o 258.30 3948.30 - Advance Payment 3948.30 0.00

TOTAL S 0.00

Charges are related to processing three rock samples for microdiamond content.

Samples: Sample 479-85, Sample 486-92 and Sample 500.

Full payment received - cheque #1311.

*** Invoice in Canadian Funds unless stated otherwise *** Appendix B Sample Locations Magpie Property

479 572131,4 5341182 480 672131,5 5341178 5341220 - -____ ; 481 672147.5 5341171 5341210 - * * * ^ 482 672148,3 5341162 t -3 i \ - M n i 483 672128,8 5341182 3.341*1X1 - 4 484 572146.5 5341149 1141190•J-,11 1 1 -^,l - 5341214 485 672160,7 *;T411fln . . * 486 672157,1 5341222 4 487 572172,7 5341217 5341170 A. 488 572179,5 5341215 5341160 * 489 672188,8 5341195 5341 150 - —————————————————————— *——————————————————————————————————————————————— 490 672188,8 5341195 491 672191,9 5341185 6341 14U , 492 672179.8 5341181 672120 b/JUU b/JIBO 672130 672 500 572132 5340957 Boat access via Magpie River South shore of outcro Sampling North shore of outcro

MINISTRY OF NORTHERN DEVELOPMENT AND MINES Work Report Summary

Transaction No: W0350.01741 Status: APPROVED Recording Date: 2003-NOV-04 Work Done from: 2003-AUG-09 Approval Date: 2004-FEB-25 to: 2003-AUG-12

Client(s): 400331 OASIS DIAMOND EXPLORATION INC.

Survey Type(s): BENEF PROSP

Work Report Details: Perform Applied Assign Reserve Claim* Perform Approve Applied Approve Assign Approve Reserve Approve Due Date SSM 1235586 56,388 36,388 32,440 52,440 SO O 33,948 33,948 2004-NOV-19

36,388 36,388 32,440 32,440 SO SO 33,948 33,948

External Credits: SO

Reserve: 33,948 Reserve of Work Report*: W0350.01741

33,948 Total Remaining

Status of claim is based on information currently on record.

42C02NE2003 2.26586 LECLAIRE 900

2004-Mar-01 14:56 armstrong-d Page 1 of 1 Ministry of Ministere du Northern Development Developpement du Nord and Mines et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE Date: 2004-FEB-25 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

OASIS DIAMOND EXPLORATION INC. Tel: (888) 415-9845 2075, RUE UNIVERSITY Fax:(877)670-1555 SUITE 300 MONTREAL, QUEBEC H3A 2L1 CANADA

Submission Number: 2.26586 Transaction Number(s): W0350.01741 Dear Sir or Madam

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time. The revisions outlined in the Notice dated January 27, 2004 have been corrected. Analyses costs of S3,948 have been added to the submission. Accordingly, assessment work credit has been approved as outlined on the attached Work Report Summary.

If you have any question regarding this correspondence, please contact BRUCE GATES by email at [email protected] or by phone at (705) 670-5856.

Yours Sincerely,

/f. Ron C. Gashinski Senior Manager, Mining Lands Section

Cc: Resident Geologist Assessment File Library John Edward Buckle Oasis Diamond Exploration Inc. (Agent) (Claim Holder)

Oasis Diamond Exploration Inc. (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:19155 iviniiiigMtntfin Ldnul flllH

CANADAPANATlA PROVINCIAL IMilNB

Date l Time of Issue: Wed Feb 25 09:11:57 EST 2004 TOWNSHIP l AREA PLAN LECLAIRE (A.C.R.) 6-2782

ADMINISTRATIVE DISTRICTS ; DIVISIONS Mining Division Sault Ste. Marie Land Titles/Registry Division ALGOMA Ministry of Natural Resources District WAWA

TOPOGRAPHIC Land Tenure

Hi

LAND TENURE WITHDRAWALS

IMPORTANT NOTICES

LAND TENURE WITHDRAWAL DESCRIPTIONS

D UHDCB THE ONT*fflO NlMtNO *Ct

T B.STE.MAO'C, CNTAfflO

2.26586 PROSP BENEF

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to o o Gens ra l Information and Limitations