GEOLOGICAL ASSESSMENT REPORT (Event 5436964)

for

AGOSTON MORVAY (Owner & Operator)

on a

STRUCTURAL ANALYSIS

on the

Lardeau Group (Tenures 1017648 & 1017649)

Revelstoke Mining Division

BCGS Maps 082K.064

Centre of Work 5,607,095N, 479,345E

Author & Consultant

Laurence Sookochoff, PEng Sookochoff Consultants Inc.

June 19, 2013

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TABLE OF CONTENTS page Summary ------4. Introduction ------5. Property Description and Location ------5. Accessibility, Climate, Local Resources, Infrastructure and Physiography ------6. History: Lardeau Group Area ------7. TRIUNE - Minfile 082KNW026 ------8. CROMWELL - Mi nfile 08KNW058 ------9. FREE COINAGE - Minfile 082KNW109 ------10. H.Y.M. - Minfile 082KNW142 ------10. SILVER BELT- Minfile 082KNW159 ------11. ALICE L. - Minfile 08KNW165 ------11. GUS 3 & 4 - Minfile 082KNW178 ------11. Geology: Regional ------11. Geology: Lardeau Group Area ------15. TRIUNE - Minfile 082KNW026 ------16. CROMWELL - Minfile 08KNW058 ------16. FREE COINAGE - Minfile 082KNW109 ------17. H.Y.M. - Minfile 082KNW142 ------17. SILVER BELT- Minfile 082KNW159 ------18. ALICE L. - Minfile 08KNW165 ------19. GUS 3 & 4 - Minfile 082KNW178 ------19. Geology: Lardeau Group ------19. Mineralization: Lardeau Group Area ------20. TRIUNE - Minfile 082KNW026 ------20. CROMWELL - Minfile 08KNW058 ------21. FREE COINAGE - Minfile 082KNW109 ------21. H.Y.M. - Minfile 082KNW142 ------22. SILVER BELT- Minfile 082KNW159 ------22. ALICE L. - Minfile 08KNW165 ------22. GUS 3 & 4 - Minfile 082KNW178 ------25. Structural Analysis: Tenures 1017648 & 1017649 ------25. Interpretation and Conclusions ------28. Selected References ------30. Statement of Costs ------31. Certificate ------32.

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Table of Contents (cont’d) TABLES Table 1. Lardeau Group Tenures ------5. Table 2. Minfile Properties in the Area of the Lardeau Group; Geological Summary ------23. Table 3. Minfile Properties in the Area of the Lardeau Group; Workings and Mineralization Summary ------24. Table 4. Approximate UTM Location of Cross-Structures ------25.

ILLUSTRATIONS

Figure 1. Location Map ------5. Figure 2. Lardeau Group Access from Revelstoke ------7. Figure 3. Lardeau Group Access from Trout Lake ------8. Figure 4. Lardeau Group Claim Map and Access Roads ------8. Figure 5. Lardeau Group Geology, Claim, & Minfile ------15. Figure 6. Lineaments as Indicated Structures on Tenures 1017648 & 1017649 ------25. Figure 7. Rose Diagram from Lineaments on Tenure 1017649 ------26. Figure 8. Rose Diagram from Lineaments on Tenure 1017648 ------27.

______June 19, 2013 Sookochoff Consultants Inc. Page 3 of 32 ______Lardeau Group Agoston Morvay Event 5436964 ______SUMMARY The three claim Lardeau Group is located 430 kilometres east of Vancouver and covers an area of 573 hectares. It is accessible by paved road and secondary roads from Revelstoke southward for 99 kilometres to the northwestern and the eastern portions of the Property. The Lardeau Group is within the Kootenay Arc which is a 400 kilometre long curving belt of early Paleozoic to Mesozoic sedimentary, volcanic, and crystalline metamorphic rocks trending northeast for 160 kilometres across Washington State into British Columbia, thence north along Kootenay Lake and northwest into the Revelstoke area. The Property is also located at the southern portion of the historic Slocan Mining Camp where active exploration began around 1865, became one of the most productive mining camps in the province, and achieved peak production in 1918. The camp and surrounding areas includes 175 documented mineral deposits of which more than half are mineral producers; 13 mines have produced more than one million grams of silver. An indication of the potential mineral zones to be located in the area is from the Rambler Mine which was one of the largest past producers in the area. Three ore shoots were explored and developed by workings over a horizontal distance of 610 metres and by 14 levels to an approximate depth of 400 metres below the surface. During its mine life a total of 189,421 tonnes of ore was mined from which 108,959,934 grams (3,503,143 ounces) silver, 839 grams (27 ounces) gold, and significant quantities of cadmium, lead, and zinc were recovered. The Lardeau Group is situated along the west limb of an anticline and predominantly covers the Lardeau Group of rocks with the uppermost Broadview Formation in the eastern potion in a fault contact with the lowermost Index Formation in the western portion. The Minfile mineral property mineralization in the area of the Tenures 1017648 & 1017649 Claim Group, of which seven are described herein, tend to be associated with northerly and northwesterly trending quartz veins up to 1.5 metres wide with up to a reported 3,086 grams per tonne silver. All of the Minfile mineral properties, except the Gus 3 & 4, described herein are former producers with mineralization hosted in the Lardeau Group Formations underlying the uppermost Broadview Formation. The Gus showing is also the only Minfile reported in the Broadview Formation to the east of the Silver Cup Ridge and hosts “high precious metal values” (gold and/or silver?) in a mineralized quartz vein occurring conformable to a northwest trending schistosity. The Broadview Formation also hosts the Okanagan mineral zone (Minfile 082KNW024) to the west of the bountiful Index Formation and the Silver Cup ridge where assays of 65.1 grams (2.1 ounces) per tonne gold are reported from an average sample across the 0.91 metre wide vein in the Okanagan shaft and 469.7 grams (15.1 ounces) per tonne gold from a sample of pyrite free from quartz and without any visible gold. The 65.1 gram gold value from unsorted “ore” is the highest reported of the seven included Minfile properties and possibly from the entire area. It appears that the gold particles in pyrite are generally so fine that visible gold cannot be seen even under microscopic examination. As a result of the current Structural Analysis, six structural intersections were indicated. As all six are located within, or at a contact with the Broadview Formation there is an added benefit to the exploration of the six locations not only for the silver that predominates in the Slocan Camp veins but for the higher gold content which could facilitate the classification of a mineral zone to an economic resource. In the exploration, any pyritic mineralization should not be considered as an alteration product but regarded as a potentially economic mineral zone.

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INTRODUCTION In March, 2013 a Structural Analysis was completed on Tenures 1017648 & 1017649 of the Lardeau Group. The purpose of the structural analysis was to delineate potential structures which may be integral in geological controls to potentially economic mineral zones Tenures 1017648 & 1017649 comparable to other productive mineral zones in the immediate area within Claims owned by Mr Agostan Morvay. Information for this report was obtained from sources as cited under Selected References and from previous work the writer has done in the general area. Figure 1. Lardeau Group: Location Map (Base Map from MapPlace)

PROPERTY DESCRIPTION AND LOCATION The Lardeau Group is comprised of three claims covering an area of 573.9475 hectares. Particulars are as follows: Table I. Lardeau Group Tenures Tenure Type Claim Name Good Until Area (ha) Number

952901 Mineral LARDEAU GROUP 20161215 307.474

1017648 Mineral LARDEAU 1 20161215 81.9923

1017649 Mineral LARDEAU 3 20161231 184.4812

Total Area: 573.9475 ha *Upon the approval of the assessment work filing Event Number 5436964. The Lardeau Group is located 430 kilometres east of Vancouver British Columbia, in the Revelstoke Mining Division, within BCGS Map 082K.064, and east of Trout Lake. ______June 19, 2013 Sookochoff Consultants Inc. Page 5 of 32 ______Lardeau Group Agoston Morvay Event 5436964 ______

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY Access Road access to the Lardeau Group from Revelstoke is as follows:

Kilo- From via Direction To metres Revelstoke Highway 1 West Highway 23 Junction 5 Highway 23 Galena Bay Ferry Landing Highway 23 South 46 Junction (N end) Galena Bay Northeast & Ferry Landing Highway 31 Trout Lake 26 south (S end) Secondary Trout Lake Easterly River Junction 15 Road Northeast boundary of Secondary Tenure 952901 contiguous River Junction Southerly 7 Road to Tenures 1017648 & 1017649

Climate The climate of the area is of relatively warm summers and moderately cold winters with heavy snowfall. The exploration season would generally be from July to October with a variance based on yearly climatic changes and elevation. Local Resources Sufficient accommodation, supplies, and workers for a preliminary exploration program would be available in Revelstoke, Nakusp, and Trout Lake. Contracts for technical exploration and development programs would probably be made with companies based in Vancouver with some support personnel from local communities. Revelstoke is linked to Vancouver, a port city on the southwest corner of, and the largest city in the Province of British Columbia, by the Canadian Pacific Railway and the national Number 1 Highway. Vancouver is within seven hours distant by road from Revelstoke. Infrastructure There would be no on-site provisions for an early exploration program. At some stage in the development program some on-site accommodation with all support facilities may be established. However, with the nearby commercial establishments at Trout Lake, Nakusp, and Revelstoke, the preference may be for one to two hours travel for superior accommodation and communication. The nearest commercial power source is at Trout Lake. Diesel-electric generated power would be required in the initial pre-production stages of a mineral resource development.

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Accessibility, Climate, Local Resources, Infrastructure and Physiography (cont’d) Physiography The Property covers an area of moderate to deeply incised valleys with moderate to steep barren alpine and forested slopes interspersed with localized clear-cut logged areas. The timber consists of fir, cedar, hemlock and alder. Elevations range from 1405 metres in the north-central within a valley at the confluence of northerly flowing and westerly flowing watercourse, to 2,105 metres on a razor-back ridge at the southwest corner of Tenure 1017649, the westernmost claim of the Lardeau Group. Figure 2. Lardeau Group Access Location from Revelstoke (Base Map from MapPlace & Google)

HISTORY: LARDEAU GROUP AREA The history on some of the more significant mineral MINFILE reported occurrences, prospects, and past producers on the Lardeau Group or areas as blocked out on Figure 5 are reported as follows. The descriptions herein are copied from Minfile. The distance from the Lardeau Group is relative to Tenure 1017649, which is the subject of one of the claims of the structural analysis. TRIUNE past producer (Polymetallic veins Ag-Pb-Zn+/-Au) Minfile 082KNW026 Two kilometres west The Triune deposit is at the north end of Silver Cup Ridge. It covers the rugged peak and north and easterly facing slopes of Triune Mountain between 2100 and 2600 metres elevation

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Figure 4. Lardeau Group Claim Map access road from north and roads within the Property (Showing Structural Intersecting Locations from Figure 6) (Base map from MapPlace & Google)

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History: Lardeau Group Area (cont’d) TRIUNE past producer (cont’d) The Triune (L.5681), Revenge (L.5685), Silver Chief (L.5683), Enterprise (L.5682) crown grants and the Triune No. 1 tenure are in a cirque drained by Triune Creek, a northeasterly flowing tributary of Lardeau Creek. They are southeast of the Free Coinage [082KNW109] which is, in turn, southeast of the past producing Silver Cup mine [082KNW027]. All three properties are part of the same, fault- controlled, vein system. The Triune was first owned by Messrs. Ferguson Bros., who leased it to Messrs. Lade Bros. and Gunn Bros. in 1900. The latter drove an 18.3 metres long crosscut that encountered the vein at a depth of 21.3 metres below surface and they continued to tunnel on the vein, which was 1.1 metres wide. Annual Reports show that they shipped 91 tonnes of hand-cobbed ore, later valued at "$12/gold", 11143 grams per tonne silver and 25 per cent lead. They shipped a further 86 tonnes the following year, returning "$18/gold", 13714 grams per tonne silver and 50 per cent lead. However, it is unclear how much was actually shipped in each year. The property was acquired by Metropolitan Gold and Silver Mining Company in 1901 and a shaft was sunk. The company also constructed a wire-line tramway from the mine down Triune Creek that year, but it was destroyed by an avalanche the following winter. Nevertheless, the mine saw further development and limited production through to 1905. At that time, the upper tunnel was 32 metres above the lower and a third adit was being driven further down the hill. The two levels were connected by a raise. The owners shipped a total of 424 tonnes of hand-cobbed ore to the Trail smelter between 1901 and 1905. The shipments returned approximately 30.8 grams per tonne gold, between 8571 and 13714 grams per tonne silver, and between 33 and 50 per cent lead. The property also appears to have produced a further 83 tonnes between 1916 and 1918. By then, a fourth adit had been driven and a new tramway had been built. Production came from the top three adits, which were driven into the cirque wall and now are difficult to get at. There is a section through the workings in the annual report for 1919. Winslow Consolidated Limited owned the Triune property and milled some ore in 1939 and 1940, and A.F. Upton and D.A.Lougheed broke some ore in the #2 and #3 adits the same year. However, there was a legal dispute and it was not shipped. Thereafter, the property appears to have been dormant until Richrock Mines Limited acquired it from Burrard Mining and Development Syndicate, in 1956, and started the next phase of exploration. In the 1960s, the company rebuilt the access road to the bottom adit and resumed trenching the vein. It also arranged for Dolmage Campbell and Associates to map the property, in 1969. CROMWELL showing (Polymetallic veins Ag-Pb-Zn+/-Au: Au-quartz veins) Minfile 082KNW058 One kilometres west The Cromwell workings are on the south side of North Brown Creek. They are at 1850 to 2250 metres elevation on the east side of Silver Cup Ridge, between the headwaters of Brown Creek and North Brown Creek, both of which drain to the northeast into Lardeau Creek. The property consists of eight reverted crown granted mineral claims (Cromwell, 1 & 2 (L.13045/6); Wellington (L.13053), Nelson (L.13050), Tarzan 1 & 2 (L.13048/9), Golden Reef (L.13044) and Tarzan Two (L.13047)). The tenures are on strike with, and approximately 1.5 kilometres to the southeast of, the Triune [082KNW026] vein system. The Cromwell veins were found in the early 1900s and the ground was leased and developed by Myee Exploration Company in 1902. Exploration development and the production of a small tonnage of ore in 1900 and 1901.

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History: Lardeau Group Area (cont’d) CROMWELL showing (cont’d) The Cromwell vein was first mentioned in 1900, when good results "$123/ton gold at $20/oz" were reported from oxidized quartz samples collected near-surface. The vein was later trenched and had two adits driven on it. The upper adit was driven at shallow depth to exploit the oxidized ore and the lower adit was collared to access fresher, more pyritic, rock. The latter was driven 170.6 metres to intercept the vein 152 metres below surface; however, it may not have gone far enough. A 2.9 tonne sample from the first 12.2 metres of the upper adit assayed 19.9 grams per tonne gold and 68.6 grams per tonne silver. In the 1920s, the property was acquired by Major Armstead, of New York, who extended the lower tunnel looking for the vein. The Tarzan vein has been trenched, and there is a small shaft. The vein has been traced about 30 metres. In 1953, Cromwell Gold Mines owned and produced 3 tonnes of ore from the vein. In 1981, the property was owned by Mission Minerals Limited. FREE COINAGE prospect (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW109 Two kilometres east In 1896, the tenure was owned and developed by Thos. Dunn and Wm. Farrell of Vancouver, who drove over 300 metres of drifts, crosscuts, raises and other workings looking for the southeast projections of the Silver Cup veins. In 1897, they sunk a 3.66 metres shaft on a vein that was thought to be the Silver Cup #2 vein; however, by 1924, there was some suggestion that it might be an intervening vein between the main Silver Cup vein and the Blind vein, and that crosscuts should be driven to the northeast and southwest to test this hypothesis. In 1899, the owners collared a tunnel at 2134 metres elevation and drove 168 metres to the southeast on the vein and, in 1900, added an 18.3 metres long crosscut in hopes of intersecting the main Silver Cup vein. The tenure was worked intermittently by lessees and a small shipment was reportedly made in 1901. George Yuill owned the claim in the 1920s, but no more work seems to have been done. The area was included in a large land package owned by American Chromium Limited in 1979. The company prospected the Silver Basin, Triune, Free Coinage, Morning Star, Copper Glance and Helco claims. H.Y.M. past producer (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW142 500 metres west The H.Y.M. prospect is on the east side of Silver Cup Ridge, near the headwaters of Brown Creek, which drains to the northeast into the Lardeau Creek. The H.Y.M claim is poorly located and is probably an alternate name for some other prospect. The H.Y.M showings are poorly described, although a significant amount of development work had been done by 1911. There were two adits. The upper adit followed the vein and the lower adit was driven so as to cut the vein at a distance of 45.7 metres and at a vertical depth of 38.1 metres below surface. It had not yet reached its target in 1911. A 12.7 tonne sample was shipped from the property in 1905 and returned "$83/ton". The H.Y.M. was later included in a large property package (Bug 2 and 6-9 claims) that surrounds a number of crown granted mineral claims. Golden Rule Resources Limited conducted a soil geochemical survey in area in 1980.

______June 19, 2013 Sookochoff Consultants Inc. Page 10 of 32 ______Lardeau Group Agoston Morvay Event 5436964 ______History: Lardeau Group Area (cont’d) SILVER BELT past producer (Polymetallic veins Ag-Pb-Zn+/-Au, J01: Polymetallic manto Ag-Pb- Zn) MINFILE 082KNW159 Within Lardeau Group The Silver Belt showings are on the south side of Brown Creek, a northeasterly flowing tributary of Lardeau Creek. The Silver Belt (L.5695), Agnes (L.5696) and Whistler (L.7443) claims straddle the creek between 1650 and 2000 metres elevation. The tenures are down-stream from the Cromwell Group [082KNW058]. Workings on the Silver Belt claim consist of a 16.8 metres deep shaft sunk on a stringer zone and an adit collared lower down the hill. Several shipments were made to the smelters in 1899. However, they are not all documented. ALICE L. past producer (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW165 Two kilometres southwest The Alice vein is near the crest of a ridge at 2440 metres elevation. The Alice (L.7440) tenure is at the head of Laughton Creek, which flows to the southwest into Trout Lake. It is also approximately 1.5 kilometres southwest of Triune Mountain. The Alice (Sunshine) vein was originally explored as part of the Foggy Day Group [082KNW117]. It has four adits and several pits. The vein appears to continue onto the Foggy Day [082KNW117] property to the southeast. The No. 1 adit is the eastern-most and lowest of the four exploration adits. It was driven into the cliff-face as a crosscut for 18.3 metres and continued as a drift for 4.6 metres. The No. 2 adit is 15.24 metres to the northwest of the first, and 4.57 metres higher up hill. It was driven as a crosscut for 7.0 metres and as a drift for 7.62 metres. Adit No. 3 is located a further 7.62 metres to the northwest and 1.52 metres upslope. It follows the vein for 10.7 metres. The fourth and uppermost adit, No. 4, is a further 10.7 metres to the northwest and 1.52 metres up hill. It was driven for 3.66 metres. A total of 16.54 tonnes of hand-sorted ore, averaging 124.4 grams per tonne gold, were shipped to the smelter during 1917 and 1918. The Alice claim was part of the Winslow Group in 1950. At that time, the group included the Winslow (L.8680) and Gladhand (L.8681) [082KNW025], Okanagan (L.9127) and Enderby (L.9128) [082KNW024], and the U & I (L.7589) [082KNW023] occurrences. The Alice does not appear to have been part of Winslow Gold's property holding in the 1980s. GUS 3 & 4 showing (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW178 Within Lardeau Group The Gus No. 3 & 4 prospect straddles the south branch of Lardeau Creek a few hundred metres east of its junction with Ottawa Creek. The area was prospected by Taban Development Limited in 1985 and was later covered by the Last Chance claim group, owned by Consolidated Trout Lake Mines Limited. The latter conducted contour-based soil geochemical surveys in the area, in 1987. GEOLOGY: REGIONAL (from Moynihan, 2012) The Kootenay Arc is a narrow, curvilinear, metamorphosed and polydeformed region that forms part of the interior of the Canadian Cordilleran orogen in southeastern British Columbia. It is located to the west of the foreland fold and thrust belt, on the west flank of the Purcell anticlinorium, a large north- plunging structure cored by Mesoproterozoic rocks of the Belt-Purcell Supergroup (Price, 1981).

______June 19, 2013 Sookochoff Consultants Inc. Page 11 of 32 ______Lardeau Group Agoston Morvay Event 5436964 ______Regional Geology (from Moynihan, 2012) (cont’d) The Kootenay Arc straddles the boundary between rocks that formed on the ancestral North American continental margin in the Proterozoic-Early Paleozoic and those that formed in oceanic and back-arc environments to the west of ancestral North America during the Late Paleozoic-Early Mesozoic (Klepacki, 1985; Colpron and Price, 1995; Warren, 1997; for an alternative view see Thompson et al., 2007). Rocks of the Kootenay Arc were deformed and regionally metamorphosed in the Middle Jurassic – Early Cretaceous (Chapter 4) during shortening associated with formation of the Canadian Cordillera (Archibald et al. 1983; Leclair et al., 1993). They were intruded by major plutonic suites in the Middle Jurassic, and again in the mid-Cretaceous (115-95Ma). The mid-Cretaceous plutons mostly post-date regional deformation and metamorphism but there was further localised deformation and minor magmatism associated with Palaeogene extension (Fyles, 1967; Fyles et al., 1973; Archibald et al.1984; Sevigny and Theriault, 2003; Moynihan and Pattison, 2008). Palaeogene extensional structures are widely developed across southeastern British Columbia, though estimates of the magnitude of extension vary significantly (e.g. Parrish et al., 1988; Johnson and Brown, 1996; Glombick et al., 2006). Stratigraphy The tight folds of the Kootenay Arc are developed in rocks of Neoproterozoic-Mesozoic age (Fig. 5.2; Fyles and Eastwood, 1962; Fyles, 1964; Fyles, 1967; Hoy, 1977). The Neoproterozoic-Lower Cambrian Hamill Group (Colpron et al., 2002) is dominated by quartz-rich metasedimentary rocks with minor amphibolite and calc-silicate. A regional unconformity is developed in the Hamill Group (Devlin and Bond, 1988; Warren, 1997), separating units that were deposited in fault-bounded basins during rifting from an upper part distinguished by laterally continuous units deposited in a shallow-marine setting. This unconformity is interpreted to record the change from active continental rifting to thermal subsidence on a passive margin between 549 and 520 Ma (Devlin and Bond 1988; Warren, 1997). The Upper Hamill Group is conformably overlain by the Mohican and Badshot formations (Fig. 2; Fyles and Eastwood, 1962; Fyles, 1964). The Mohican Formation is a transitional unit comprising interlayered silicilastic and carbonate metasedimentary rocks. It is overlain by Archaeocyathid- bearing calcite and dolomite marble of the late Lower Cambrian Badshot Formation. The Badshot formation forms a laterally continuous marker unit and is interpreted to have been deposited on a tectonically quiescent shallow- marine shelf (Warren, 1997). The Badshot formation is followed in conformable succession by the Lower Paleozoic Lardeau Group, a varied sequence comprising siliclastic metasedimentary rocks, mafic metavolcanic rocks, carbonate and calc-silicate rocks (Fyles and Eastwood, 1962; Fyles, 1964; Hoy, 1977; Colpron and Price, 1995 and references therein). The lowest part of the Lardeau Group is a fine-grained black metapelite that records deposition under deep water, anoxic conditions. Its contact with the Badshot Formation is interpreted to mark the point when the rate of carbonate production could no longer keep pace with subsidence (Warren, 1997). A return to active rifting is recorded by metavolcanic rocks and coarse grits of upper parts of the Lardeau Group. This post- Cambrian extension on the western margin of ancestral North America is interpreted to be responsible for differences between the Lardeau Group and age-equivalent strata to the east (Colpron and Price, 1995). The Lardeau Group is unconformably overlain by a sequence comprising upper Paleozoic-Mesozoic rocks of the Milford, Kaslo and Slocan groups (Fig. 5.2

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Regional Geology (from Moynihan, 2012) (cont’d) Figure 5.2. Summary of the stratigraphy of the Kootenay Arc, based on Fyles and Eastwood (1962), Fyles (1964), Fyles (1967), Reesor, (1973), Hoy (1980), Klepacki (1985), Devlin and Bond (1988), Leclair (1988) and Warren (1997).

Igneous rocks Metasedimentary and metavolcanic rocks of the Kootenay Arc host numerous Middle Jurassic (ca. 165 Ma) and mid-Cretaceous (~115-100 Ma) granitic plutons and minor intrusive bodies (Archibald et al. 1983; Archibald et al. 1984; Logan, 2002). In the central Kootenay Arc, the Middle Jurassic plutonic suite is represented by the calc- alkaline Nelson batholith and associated minor bodies. The Nelson 2 batholith is an 1800 km body intruded during the interval 159-173 Ma (Ghosh, 1995). It ranges in composition from diorite to granite, but is dominated by porphyritic hornblende granodiorite. The second major plutonic suite was intruded during the interval 117-100 Ma. Lithologies include hornblende and biotite granodiorite, biotite granite and two-mica granite, which are interpreted to have been derived from crustal anatexis (Brandon and Lambert, 1993). Examples include the Bayonne, Fry Creek and White Creek batholiths. The youngest igneous rocks in the Kootenay Arc are Palaeogene mafic dikes and small intrusions, some of which are lamprophyre (Fyles, 1967; Leclair, 1988; Beaudoin et al., 1992b; Sevigny and Theriault, 2003). Beaudoin et al. (1992b) reported K-Ar dates in the range 26-30 Ma for whole rock analyses of altered gabbroic dikes from Bluebell; however, these dates were interpreted as resulting from alteration and are not thought to represent the crystallisation age of the dikes.

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Regional Geology (from Moynihan, 2012) (cont’d) Deformation and metamorphism The outcrop pattern in the central Kootenay Arc is dominated by two generations of gently-plunging folds (Fig. 3; Fyles, 1964; Fyles, 1967; Hoy, 1977; Hoy, 1980; Leclair, 1988). The earliest folds are a series of high amplitude isoclines with an axial-planar schistosity. The most clearly defined F1 folds in the central Kootenay Arc are westward- closing recumbent anticlines cored by the Hamill Group. The largest of these, the Riondel nappe (Hoy, 1977) (equivalent to the Meadow Creak anticline in the Duncan Lake area; Fyles, 1964) has a 20 km long overturned lower limb (Fig. 5.3). F1 isoclines were coaxially refolded around gently plunging F2 axes, giving rise to a type 3 interference pattern (Ramsay, 1967). F2 axial planes generally dip gently- to moderately-steeply to the west, but steepen towards higher structural levels to the east (Hoy, 1980). Mineral lineations (L1 and L2) generally plunge gently north or south, parallel to fold axes. Deformation took place in the Kootenay Arc between deposition of the Cambrian- Ordovician Lardeau Group and the Mississippian Milford Group, and again in Late Permian-Middle Triassic (Read and Wheeler, 1976; Klepacki, 1985). However, Cordilleran (Middle Jurassic-Lower Cretaceous) deformation is responsible for the dominant structures and fabrics in the central Kootenay Arc (Archibald et al., 1983; Leclair et al., 1993; Warren, 1997). Cordilleran deformation was accompanied by Barrovian regional metamorphism. A narrow, elongate region of anomalously high metamorphic grade runs parallel to Kootenay Lake (Crosby, 1968; Livingstone, 1968; Reesor, 1973; Hoy, 1976; Archibald et al., 1983; Pattison et al., 2010). Metamorphic grade ranges from the biotite zone on the flanks of this high to the sillimanite zone in its core. Figure 5.3. Cross-section across the central Kootenay Arc, showing the location of the Bluebell mine on the overturned limb of a refolded fold nappe. The approximate line of section is marked on Figure 1. The normal faults around Ainsworth, on the west side of Kootenay Lake are labelled. From Fyles and Read (1981), based on Fyles (1967) and Hoy (1980).

The Bluebell deposit lies in the sillimanite zone, in the centre of this metamorphic high. Rocks in the centre of this belt were metamorphosed under conditions approximating 650-700 °C at 20-25 km depth in the Early Cretaceous (Hoy 1977, Archibald et al., 1983; Moynihan and Pattison, 2008). The metamorphic high is bounded on the west side by a series of normal faults that accommodated differential exhumation during Palaeogene extension. From east to west, they are the Lakeshore, Josephine and Gallagher faults (Figure 5.3). The Gallagher fault marks the western boundary of the Early Cretaceous amphibolite-facies belt and coincides with a change in 40 Ar/39Ar mica cooling ages from Jurassic-Early Cretaceous in the hanging wall to Palaeogene in the footwall.

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Regional Geology (from Moynihan, 2012) (cont’d) Outside of this amphibolite-facies belt, greenschist- and transitional greenschist-amphibolite-facies regional metamorphic assemblages are ubiquitous, but are locally overprinted in low-pressure contact-metamorphic aureoles (Archibald et al., 1983; Pattison and Vogl, 2005). GEOLOGY: LARDEAU GROUP AREA The geology on some of the more significant mineral MINFILE reported occurrences, prospects, and past producers on the Lardeau Group are blocked out on Figure 5 and are reported as follows. A summary of the geology is given in Table 2. The descriptions herein are a copy from Minfile. The distance from the Lardeau Group is relative to Tenure 1017649, which is the subject of one of the claims of the structural analysis. Figure 5. Lardeau Group: Geology, Claim & Minfile (Base Map: from MapPlace)

Geology Legend

CmDLI CmDLB Cambrian to Devonian Cambrian to Devonian Lardeau Group-Index Formation Lardeau Group-Broadview Formation Shale, fine clastic sedimentary rocks Limestone, shale, siltstone, argillite CmDLT CmDLJ Cambrian to Devonian Cambrian to Devonian Lardeau Group-Triune Formation Lardeau Group-Jowett Formation Black siliceous argillite, chert and phyllite Basaltic volcanic rocks

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Geology: Lardeau Group Area (cont’d) TRIUNE past producer (Polymetallic veins Ag-Pb-Zn+/-Au) Minfile 082KNW026 Two kilometres west The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit. The Triune claim straddles a major fault that cuts Lardeau Group strata north and south of Lardeau Creek. The eastern, hanging wall side of the fault is underlain green phyllite of the upper part of the Index Formation and by black, siliceous argillite and phyllite of the overlying Triune Formation. The assemblage is highly folded and deformed, and intruded by irregular, rusty weathering, dykes and plugs of diorite. The footwall side of the fault it underlain by phyllite of the Triune Formation. The rocks are highly schistose. The foliation displays the regional northwest strike and has a moderate to steep dip to the northeast. CROMWELL showing (Polymetallic veins Ag-Pb-Zn+/-Au: Au-quartz veins) Minfile 082KNW058 One kilometres west The Trout Lake area is underlain by a thick succession of sedimentary and volcanic rocks of the Badshot Formation and Lardeau Group near the northern end of the Kootenay arc, an arcuate, north to northwest trending belt of Paleozoic and Mesozoic strata that is now classified as a distinct, pericratonic, terrane. The arc rocks are bordered by Precambrian quartzite in the east and they young to the west, where they are bounded by Jurassic-age intrusive complexes. They were deformed during the Antler orogeny in Devonian-Mississippian time and were refolded and faulted during the Columbian orogeny, in the Middle Jurassic. A large panel, the "Selkirk allochthon", was later offset to the northeast by dip-slip motion along the Columbia River Fault. The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit.

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Geology: Lardeau Group Area (cont’d) FREE COINAGE prospect (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW109 Two kilometres east The Trout Lake area is underlain by a thick succession of sedimentary and volcanic rocks of the Badshot Formation and Lardeau Group near the northern end of the Kootenay arc, an arcuate, north to northwest trending belt of Paleozoic and Mesozoic strata that is now classified as a distinct, pericratonic, terrane. The arc rocks are bordered by Precambrian quartzite in the east and they young to the west, where they are bounded by Jurassic-age intrusive complexes. They were deformed during the Antler orogeny in Devonian-Mississippian time and were refolded and faulted during the Columbian orogeny, in the Middle Jurassic. A large panel, the "Selkirk allochthon", was later offset to the northeast by dip-slip motion along the Columbia River Fault. The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit. The Free Coinage claim straddles a major fault that cuts Lardeau Group strata north and south of Lardeau Creek. The eastern, hanging wall side of the fault is underlain by a minor amount of green phyllite of the upper part of the Index Formation, and by black, siliceous argillite and phyllite of the overlying Triune Formation. The assemblage is highly folded and deformed, and intruded by irregular, rusty weathering, dykes and plugs of diorite. The footwall side of the fault is underlain by phyllite of the Triune Formation. The rocks are schistose. The foliation displays the regional northwest strike of the area and has a moderate to steep dip to the northeast. The area of immediate interest is a band of schist between quartzite in the west and a mafic dyke in the east. H.Y.M. past producer (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW142 500 metres west The Trout Lake area is underlain by a thick succession of sedimentary and volcanic rocks of the Badshot Formation and Lardeau Group near the northern end of the Kootenay arc, an arcuate, north to northwest trending belt of Paleozoic and Mesozoic strata that is now classified as a distinct, pericratonic, terrane. The arc rocks are bordered by Precambrian quartzite in the east and they young to the west, where they are bounded by Jurassic-age intrusive complexes. They were deformed during the Antler orogeny in Devonian-Mississippian time and were refolded and faulted during the Columbian orogeny, in the Middle Jurassic. A large panel, the "Selkirk allochthon", was later offset to the northeast by dip-slip motion along the Columbia River Fault. The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area.

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Geology: Lardeau Group Area (cont’d) H.Y.M. past producer (cont’d) It is underlain by Hamill Group quartzite, and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit. SILVER BELT past producer (Polymetallic veins Ag-Pb-Zn+/-Au, J01: Polymetallic manto Ag-Pb- Zn) MINFILE 082KNW159 Within Lardeau Group The Trout Lake area is underlain by a thick succession of sedimentary and volcanic rocks of the Badshot Formation and Lardeau Group near the northern end of the Kootenay arc, an arcuate, north to northwest trending belt of Paleozoic and Mesozoic strata that is now classified as a distinct, pericratonic, terrane. The arc rocks are bordered by Precambrian quartzite in the east and they young to the west, where they are bounded by Jurassic-age intrusive complexes. They were deformed during the Antler orogeny in Devonian-Mississippian time and were refolded and faulted during the Columbian orogeny, in the Middle Jurassic. A large panel, the "Selkirk allochthon", was later offset to the northeast by dip-slip motion along the Columbia River Fault. The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit. The southwest side of the Silver Belt group is underlain by a structurally complex assemblage of grey carbonate, and green phyllite and metatuff of the upper part of the Index Formation. The northeast side, including much of the Silver Belt claim, is underlain by black siliceous argillite and phyllite of the Sharon Creek Formation. The rocks are tightly isoclinally folded, deformed and highly schistose. The phyllites display the normal northwest trending, moderate to steep northeast dip found throughout the Silver Cup Ridge area. They are cut by a series of faults with the same approximate orientation.

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Geology: Lardeau Group Area (cont’d) ALICE L. past producer (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW165 Two kilometres southwest The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit. The Alice property is largely underlain by black, siliceous, argillite of the Sharon Creek Formation. The rocks stratigraphically overlie Ajax Formation quartzite and they are faulted against a small amount green, gritty metasediments of the Broadview Formation on the southwest side. The rocks are isoclinally folded, deformed and schistose. The foliation strikes to the northwest and dips at a moderate to steep angle to the northeast. GUS 3 & 4 showing (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW178 Within Lardeau Group The Trout Lake area is underlain by a thick succession of sedimentary and volcanic rocks of the Badshot Formation and Lardeau Group near the northern end of the Kootenay arc, an arcuate, north to northwest trending belt of Paleozoic and Mesozoic strata that is now classified as a distinct, pericratonic, terrane. The arc rocks are bordered by Precambrian quartzite in the east and they young to the west, where they are bounded by Jurassic-age intrusive complexes. The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit. GEOLOGY: LARDEAU GROUP The property is entirely underlain by the Cambrian to Devonian Broadview Formation of the Lardeau Group which is comprised of limestone, shale, siltstone, and argillite.

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MINERALIZATION: LARDEAU GROUP AREA The mineralization on some of the more significant mineral MINFILE reported occurrences, prospects, and past producers peripheral to the Lardeau Group are blocked out on Figure 5 and are reported as follows. A summary of the mineralization is given in Table 3. The descriptions herein are copied from Minfile. The distance from the Lardeau Group is relative to Tenure 1017649, which is the subject of one of the claims of the structural analysis. TRIUNE past producer (Polymetallic veins Ag-Pb-Zn+/-Au) Minfile 082KNW026 Two kilometres west The Triune vein is similar to one that hosts the Silver Cup past-producing mine [082KNW027] immediately to the northwest; however, they appear to be on separate but parallel structures. The full extent of the Triune lens is unknown; although it has been developed over 150 metres of strike length and 122 metres of vertical extent. It is exposed on a steep cliff and is hidden by overburden lower in the Triune basin. The vein is in a band of dark, siliceous slate that is bounded to the northeast by a massive greenstone unit and related phyllite. On the southwest side, it is bordered by grayish- green phyllite and carbonate altered black phyllite similar to that found southwest of the Silver Cup vein. The Triune vein consists of quartz and siderite with variable amounts of galena, pyrite, sphalerite, tetrahedrite and chalcopyrite. It is 0.61 to 2.44 metres wide, strikes 130 degrees and dips at 65 degrees to the northeast and contains mineralized shoots that rake steeply to the northeast. The main productive zone is 27.4 metres long and 3.0 metres wide and the upper workings were designed to exploit a lens 12.19 to 15.24 metres long and 1.22 to 1.52 metres wide shoot down to a depth of 61 metres. Adit No. 1 was driven at 2331 metres elevation for 114.3 metres and is now closed. It encountered the vein at a depth of 21.3 metres below surface. At that elevation it was 1.07 metres wide and composed of three parts. It had a, 0.61 metre wide, low-grade core zone of honey-combed quartz and carbonate sandwiched between two high-grade zones enriched in galena and tetrahedrite. The hanging-wall zone was 0.15 metre wide and the footwall zone was 0.3 metre wide. Adit No. 2 is at 2299 metres elevation. It follows the vein for 86.9 metres and has 33.5 metres of crosscut. It encountered a large body of lower-grade mineralization. The average grade of about 31.7 tonnes of hand sacked and hand cobbed "middlings" from the No 2 portal is reported to be 17.14 grams per tonne gold, 1440 grams per tonne silver, 15 per cent lead and 6 per cent zinc. Old reports indicated that the vein assayed 0.17 grams per tonne gold and 668.6 grams per tonne silver over 1.83 metres on this level. Adit No. 3 is at 2252 metres and is 155 metres long. It too is inaccessible. There is a sub level between 3 and 4 and a raise connecting level 3, through the overlying workings, to the surface. These have also collapsed. Adit No. 4 is at 2211 metres elevation. It is 200 metres long may not have intersected the Triune vein. It may have cut a parallel structure, the Enterprise vein, instead. This bottom adit was in good condition in 1970. To the northwest of Adit No. 4, the Triune vein is covered by talus and may be cut by an intrusion. There are three other veins in the area; however, they are largely covered by overburden. The Bullwheel vein is a rusty quartz zone that contains pods of pyrite and galena. It has been opened up by three adits connected by a raise. The Silver Cup vein has been traced into the Triune basin, where it is partially cut out by a diorite intrusion. The vein should be 30 metres into the hanging wall of the Triune vein. The Enterprise vein shows up as a quartz stringer zone 76.2 metres northwest of the No. 4 adit and may be exposed in it. It contains pyrite but is otherwise barren.

______June 19, 2013 Sookochoff Consultants Inc. Page 20 of 32 ______Lardeau Group Agoston Morvay Event 5436964 ______Mineralization: Lardeau Group Area (cont’d) CROMWELL showing (Polymetallic veins Ag-Pb-Zn+/-Au: Au-quartz veins) Minfile 082KNW058 One kilometres west There are several veins on the Cromwell property but only two, the Cromwell and Tarzan "quartz fissure veins" are of economic significance. The Cromwell vein is on the Cromwell #2 claim, which straddles North Brown Creek downstream from the Tarzan #1 claim. The creek exposes a partial section through the Lardeau Group and includes rocks of the Triune, Ajax and Sharon Creek Formations. In the early literature, the Ajax quartzite was commonly referred to as the "Cromwell Dyke". In the Cromwell vein area, the rocks are phyllites, carbonaceous shales and phyllites, and schistose quartzites of the Index and Ajax Formations. They are folded, highly deformed and schistose, and bedding and schistosity display the northwest strike and moderate to steep northeast dip commonly found in that part of the Silver Cup anticline. The Cromwell vein is in black slate and quartzite and it contains fragments of locally derived, silicified country rock. The vein has smooth walls and is markedly discordant to stratigraphy and structure. It strikes 015 degrees and dips 74 degrees to the east. Where exposed in the upper adit, it ranges from 0.15 to 1.2 metre in width. It averages 0.76 metre in width in the first 12.2 metres and then tapers to 0.38 metre at the face. The vein consists of white quartz with disseminated pyrite and local, scattered patches of galena and chalcopyrite. Where weathered, the vein contains traces of free gold. The sulphide is unevenly distributed and there is a considerable amount of low-grade mineralization with the high- grade. In 1953, a sample collected across 0.38 metre assayed 7.9 grams per tonne gold and 35 grams per tonne silver. At the same time, one taken over 2.1 metres, approximately 100 metres away, assayed 2.06 grams per tonne gold and 3.4 grams per tonne silver (EMPR AR 1953). The Tarzan vein is 500 metres to the southwest. It is a quartz filled shear on the Tarzan #1 claim, which covers part of a pot-hole lake at the head of North Brown Creek, near the divide. The tenure straddles a northwest trending fault that separates black argillaceous phyllites of the Sharon Creek Formation, to the northeast, from a mix of Jowett volcanic rocks and green, gritty phyllites of the Broadview Formation, to the southwest. The vein is discordant, has a 040 strike and a 55 to 60 degree dip to the southeast. It is 0.61 metre wide and approximately 30 metres long. It is composed of white quartz with disseminated pyrite and patches of galena and chalcopyrite. The surface rocks are fresh and unoxidized. A sample over 0.5 metre assayed 40.1 grams per tonne gold and 68.6 grams per tonne silver (EMPR Annual Report 1953) and a 2.5 kilogram sample collected from the dump in 1981 assayed 11.21 grams per tonne gold (EMPR Ass RPT 9872). There are several other quartz veins on the property, particularly on the Tarzan #1 claim. They are up to 0.3 metre wide. Some follow the schistocity of the surrounding rocks and are lens-like and short. Others follow discordant shears zone and joint planes. There is a notable highly serpentinized greenstone dyke approximately 300 metres north of the Cromwell No.2 vein. It has, intermittently, been examined for its asbestos content. FREE COINAGE prospect (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW109 Two kilometres east The Free Coinage lies immediately to the southeast of the Silver Cup mine and it is crossed by the same structures. Development work started on a small, conformable, northwest striking and northeast dipping quartz vein that was slightly mineralized with pyrite and galena on surface. The vein is in a shear zone that cuts black phyllitic slate in the footwall of an altered mafic igneous intrusion. It is 0.2 metre wide and contains streaks of galena and "a body of pyrite that carries gold". Most of the mineralization was on the footwall side of the vein. The workings were extensive and exposed numerous shears and several narrow quartz veins in tight fissures. ______June 19, 2013 Sookochoff Consultants Inc. Page 21 of 32 ______Lardeau Group Agoston Morvay Event 5436964 ______Mineralization: Lardeau Group Area (cont’d) FREE COINAGE prospect (cont’d) Some of the faults and fissure veins contain a small amount of sulphide, but none are appreciably mineralized and no major shoots were identified. Many of the sulphide showings found in the adit are located where two structures intersect. At one locality in the main drift, a sphalerite-rich sulphide lens was found where a northwest trending, northeast dipping fissure intersected the main fault which, at that locality, had a northerly strike and steep easterly dip. H.Y.M. past producer (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW142 500 metres west Two tunnels were driven on the H.Y.M. vein. The upper adit exposed a 0.25 to 0.36 metre wide vein which is reported to average 3086 grams per tonne silver over its entire (unspecified) length. SILVER BELT past producer (Polymetallic veins Ag-Pb-Zn+/-Au, J01: Polymetallic manto Ag-Pb- Zn) MINFILE 082KNW159 Within Lardeau Group The Silver Belt vein is a well-defined structure lying on a contact between limestone and slate. It is 1.2 metres wide and contains several stringers of mineralization, ranging from 0.02 to 0.08 metre in width. The stringers contain pyrite and galena "which should concentrate well" and lesser amounts of chalcopyrite and sphalerite. The shaft was sunk on a feeder to the main vein, and the adit was driven to intersect the bottom of the shaft. It continued to the southeast along the vein. It was driven for 61 metres as a drift but had yet to reach the projection of the surface showing in 1899. At that time, a further 17 metres of drifting was required. During the work in the shaft some samples of very high grade ores "which have assayed over $500" were found. There is no record of recent work on the property. ALICE L. past producer (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW165 Two kilometres southwest The Alice vein is reported to crop out over a strike length of approximately 460 metres on the Alice and Ellen Fraction claims. The vein is well exposed on a cliff face and is visibly discordant to schistocity. It strikes 007 degrees but has a variable dip as it has been affected by a roll in the host phyllite. The dip angles range from 0 to 43 degrees east, average 15 degrees east and increase down dip. The vein is between 0.61 and 1.52 metres wide. It contains a variable amount of pyrite, which appears to contain the gold. The vein is heavily oxidized and leached on surface. It has been explored by four adits and several pits and appears to continue onto the Foggy Day [082KNW117] property to the southeast. Where stopped, the vein in the No. 1 adit was 0.46 metre wide and later showed "only modest" values (1.71 grams per tonne gold and 48.0 grams per tonne silver). In the No. 2 adit the vein is wider, 0.61 to 0.76 metre and better mineralized. Four samples collected in 1946 assayed between a low of 17.1 grams per tonne gold and 39.4 grams per tonne silver over 0.61 metre and a high of 39.1 grams per tonne gold and 116.6 grams per tonne silver over 0.76 metre. In adit No. 3, the vein is between 0.36 and 0.62 metre wide and dips at 12 degrees to the east. One of two samples collected in 1946 assayed 52.8 grams per tonne gold and 89.1 grams per tonne silver over 0.58 metre. The fourth adit, No. 4, cut a quartz vein 0.20 metre wide that assayed 13.71 grams per tonne gold and 13.71 grams per tonne silver. A bulk sample of 16.54 tonnes of hand-sorted ore shipped to the smelter in 1917 and 1918 averaged 124.4 grams per tonne gold.

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Table 2. Minfile Mineral Properties in the area of the Lardeau Group; Geological summary.

Elevation Vein Width Formation (Fm.) Property Vein (metres) (metres) (from Minfile) Index (green phyllite) Triune Strike: 130 2330 0.61 to 2.44 Triune 082KNW026 Dip: 65 NE (black, siliceous argillite and phyllite)

Ajax Cromwell: Strike: 015 (siliceous phyllite) Cromwell Dip: 74E Index 082KNW058 2200 0.15 to 1.2 Tarzan: Strike: 015 (phyllites, Dip: 74E carbonaceous shale, schistose quartzites Triune Free Strike: NW (siliceous argillite) Coinage 2100 0.2 082KNW109 Dip: NE Index (green phyllite)

H.Y.M. undefined 082KNW142 2000 unreported 0.25 to 0.36 (phyllitic schist)

Index 1.2 containing (gray carbonate, phyllite, Silver Belt At contact between several and metatuff) 1850 082KNW159 limestone and slate stringers of Sharon Creek mineral- (siliceous argillite and ization phyllite) Sharon Creek Alice L. Strike: 007 (black siliceous argillite, 082KNW165 2440 Dip: 15 E average 0.61 to 1.52 schistose quartzite, phyllitic schist)

Strike: NW crossing Broadview GUS 3 & 4 the river a few 082KNW178 1450 hundred metres east In folded and deformed of its junction with schists and phyllites Ottawa Creek

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Mineralization: Lardeau Group Area (cont’d) Table 3. Minfile Mineral Properties in the Area of the Lardeau Group; Workings and Mineralization Summary. Mineralization Property Minfile Production (from Minfile) Quartz and siderite with variable 591 tonnes; 101 g Au, amounts of galena, pyrite, 45,073 grams Ag, 2,239 sphalerite, tetrahedrite, and kg Pb, 43 kg Zn Triune Three adits and a chalcopyrite. Average grade of wire-line tramway 082KNW026 31.7 hand-cobbed middlings: 17.14 g/t Au, 1440 g/t Ag, 15% Pb, & 6% Zn 1900: $123/ton gold 2.9 tonnes: 19.9g/t Au, 68.6 g/t Ag Cromwell Two adits 7.9 g/t Au, 35.0 g/t Ag over 0.38 082KNW058 metres 14 tonnes: 1,990 g Au, 6,936 g Ag

1896: 300 metres of Vein with streaks of galena and 1901: small shipment drifts, crosscuts, “a body of pyrite that carries reportedly made raises, and other gold.” workings. Free No appreciable mineralization. Coinage 1897: 3.66 metre Most sulphides are located 082KNW109 shaft. where two structures meet 1899: 168 metre tunnel on the vein

3,086 grams per tonne silver No production recorded H.Y.M. Two tunnels over the (unspecified) vein 082KNW142 width 1.2 metre wide well-defined Several undocumented structure on limestone-slate shipments were made to Shaft 16.8 metres. Silver Belt contact with several stringers the smelters in 1899. Adit lower down the 082KNW159 mineralization containing pyrite One tonne documented: 31 hill. and galena, g/t Au, 4,137 g/t Ag, 697 kg Pb A high of 39.1 g/t Au & 116.6 1917-1918: 16.54 tonnes Alice L. Four adits and several g/t Ag over 0.76 metres. of hand-sorted ore 082KNW165 pits 1946: 52.8 g/t Au & 89.1 g/t Ag averaged 124.4 g/t Au. over 0.58 metres

Galena, pyrite, and sphalerite in No production recorded quartz-carbonate veins. GUS 3 & 4 No workings Grab samples rich in sulphide 082KNW178 produced high precious metal values. g/t = grams per tonne Pb = lead Au = gold Zn = zinc Ag = silver

______June 19, 2013 Sookochoff Consultants Inc. Page 24 of 32 ______Lardeau Group Agoston Morvay Event 5436964 ______Mineralization: Lardeau Group Area (cont’d) GUS 3 & 4 showing (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082KNW178 Within Lardeau Group Taban Development Limited prospected and sampled the north and south banks of Lardeau Creek and located northwest-striking quartz veins crossing the river a few hundred metres east of its junction with Ottawa Creek. The geology of the area is poorly defined. However, the vein is most likely in folded and deformed schists and phyllites of the Broadview Formation. The veins consist of quartz and carbonate with galena, pyrite and sphalerite. Grab samples rich in sulphide are reported to have produced high precious metal values (EMPR ASS RPT 12179). STRUCTURAL ANALYSIS: TENURES 1017648 & 1017649 The Structural Analysis was accomplished marking the observed lineaments on a Hillside Shade map of Tenures 1017648 & 1017649. A total of 51 lineaments were indicated on Tenure 1017649 and 19 lineaments on Tenure 1017648 as shown on Figure 6. A Georient 32v9 software program was used to create Rose Diagrams reflecting the grouping of the lineaments into an individual 10 °class sector angle interval as shown on Figures 7 & 8. Figure 6. Lineaments as Indicated Structures on Tenures 1017648 & 1017649 (Base Map from MapPlace)

Table 4. Approximate location of Figure 6 cross-structures (UTM-11NAD 83) Tenure Area UTM East UTM North Elevation 101649 A 476,932 5,607,584 1,854 101649 B 477,190 5,607,428 1618 101649 C 476,940 5,607,920 1764 101649 D 476,975 5,608,475 1,691 101648 E 499,073 5,607,843 1,545 101648 F 479,073 5,608,029 1,427

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Figure 7. Rose Diagram from lineaments on Tenure 1017649

Rose Diagram Statistics (Tenure 1017649) (Usage Reference: Holcombe, 2009)

Axial (non-polar) data kappa = 0.31 No. of Data = 51 (von Mises concentration param. estimate) Sector angle = 8° Scale: tick interval = 2% [1.0 data] Resultant length = 7.77 Maximum = 19.6% [10 data] Mean Resultant length = 0.1524 Mean Resultant dir'n = 113-293 [Approx. 95% Confidence interval = ±90.0°] 'Mean' Moments: Cbar = -0.1046; Sbar = -0.1109 (valid only for unimodal data) 'Full' trig. sums: SumCos = -5.3325; Sbar = - ______5.6547 Mean Resultant dir'n = 113.3 - 293.3 Mean resultant of doubled angles = 0.1782 Circ.Median = 096.0 - 276.0 Mean direction of doubled angles = 030 Circ.Mean Dev.about median = 39.7° Circ. Variance = 0.38 (Usage references: Mardia & Jupp, Circular Std.Dev. = 55.57° 'Directional Statistics', 1999, Wiley; Circ. Dispersion = 17.69 Fisher, 'Statistical Analysis of Circular Data', Circ.Std Error = 0.589 1993, Cambridge University Press) Circ.Skewness = -0.43 Note: The 95% confidence calculation uses Circ.Kurtosis = -0.03 Fisher's (1993) 'large-sample method'

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Structural Analysis: Tenures 1017648 & 1017649 (cont’d) Figure 8. Rose Diagram from lineaments on Tenure 1017648

Rose Diagram Statistics (Tenure 1017648) (Usage Reference: Holcombe, 2009)

Axial (non-polar) data Circ.Kurtosis = -3.68 No. of Data = 19 kappa = 0.84 Sector angle = 8° (von Mises concentration param. estimate) Scale: tick interval = 2% [0.4 data] Resultant length = 7.33 Maximum = 26.3% [5 data] Mean Resultant length = 0.3859 Mean Resultant dir'n = 113-293 'Mean' Moments: Cbar = -0.265; Sbar = -0.2805 ______'Full' trig. sums: SumCos = -5.035; Sbar = -5.3297 Mean Resultant dir'n = 113.3 - 293.3 Mean resultant of doubled angles = 0.5681 Circ.Median = 116.0 - 296.0 Mean direction of doubled angles = 013 Circ.Mean Dev.about median = 28.9° (Usage references: Mardia & Jupp, Circ. Variance = 0.21 'Directional Statistics', 1999, Wiley; Circular Std.Dev. = 39.53° Fisher, 'Statistical Analysis of Circular Data', Circ. Dispersion = 1.45 1993, Cambridge University Press) Circ.Std Error = 0.2763 Note: The 95% confidence calculation uses Circ.Skewness = -5.37 Fisher's (1993) 'large-sample method'

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INTERPRETATION & CONCLUSIONS Four cross-structural locations of indicated primary major structures have been mapped on Tenures 1017648 and two on 1017649. These structural locations are of prime importance for exploration as they provide the most beneficial means for the tapping of a hydrothermal source at depth, providing the plumbing system for the transport of the hydrothermal solutions, and the deposition of any gangue associated minerals at variable temperature and pressure controlled depths. As the many ore deposits in the Slocan district are nearly all structurally controlled (Cairnes, 1934, 1935, 1948; Ambrose, 1948), the ore-bearing structures include fissures that slice through competent rocks, openings at directional changes along faults, brecciation against dike contacts, and brecciation at the intersection of fissures. A prime example of the structurally controlled mineral zones that can be located in the Slocan district is at the Rambler Mine some 64 kilometres south of the Lardeau Group. The former Rambler mine was one of the more consistent producers of the Slocan district. The lode system strikes northeasterly at 040 degrees and dips 50 to 80 degrees to the southeast. Three ore shoots were discovered over a horizontal distance of 610 metres with the mineral zone developed by 14 levels to a depth of approximately 400 metres below the surface and the main shoot stoped over 61 by 5 metres. During its mine life a total of 189,421 tonnes of ore was mined from which 108,959,934 grams silver, 839 grams gold, 327 kilograms copper, 10,527,871 kilograms lead and 2,654,696 kilograms zinc were recovered. The Free Coinage mineral zone located two kilometres east of the Lardeau Group property is an example of a mineral controlling structural intersection Even though no appreciable mineralization was reported; the vein was explored by a 168 metre “tunnel” and only a 3.66 metre shaft. The gold in the mineral system could be an indication of the uppermost portions of the mineral zone. The six structural intersections thus would be prime exploration targets in the exploration for a Rambler type mineral resource. The two intersections E & F on Tenure 1017648 are noted not only for the intersection but also for the “high precious metal values” reported at the Gus #3 & 4 mineral showing (Minfile 082KNW178) some 400 metre distant which is not on any indicated major structure but may be on a minor off-shoot structure. Another encouraging feature is at location F where a northwesterly structure, the dominant mineral hosting structure in the area, intersects with an easterly structure; the general direction of the mineral controlling structure at the Rambler Mine. The four locations A, B, C, & D, located on Tenure 1017649 are structural intersections with prime mineral controlling structures and are significant for:  A – a major northerly trending structure intersecting with a northeasterly Rambler oriented structure at a geological contact between the Index and the Broadview Formations;  B - a northeasterly Rambler oriented structure intersecting with another generally oriented easterly Rambler oriented structure at a geological contact between the Index and the Broadview Formations;  C - a major northerly trending structure intersecting with a generally oriented easterly Rambler oriented structure within the Broadview Formation;  D - a major northerly trending structure intersecting with a dominant mineral controlling northwesterly structure within the Broadview Formation.

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Interpretation & Conclusions (cont’d) Although the Broadview Formation appears relatively barren of mineral showings as indicated by the Geological Map (Figure 5), two Minfile mineral within the Broadview indicate potentially significant mineral zones within northerly structures. A grab sample from the Gus 3 & 4 mineral zone on the east side of Silver Cup Ridge and within 500 metres of the Lardeau Group was rich in sulphides and produced “high precious metal values” (no assays). The Okanagan mineral zone on the west side of Silver Cup Ridge and four kilometres west of the Lardeau Group also produced high precious metal values with reported assays of 65.1 grams (2.1 ounces) per tonne gold are reported from an average sample across the 0.91 metre wide vein in the Okanagan shaft and 469.7 grams (15.1 ounces) per tonne gold from a sample free from quartz and without any visible gold. These gold values are the highest reported of the seven included Minfile properties and possibly from the entire area. As a result of the Structural Analysis, six structural intersections were indicated. As all six are located within, or at a contact with the Broadview Formation there is an added benefit to the exploration of the six locations not only for the silver values that predominate in the Slocan Camp veins but for the higher gold content which could facilitate the classification of a mineral zone to an economic resource.

Respectfully submitted Sookochoff Consultants Inc.

Laurence Sookochoff, PEng

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SELECTED REFERENCES Burns, D.W. – Report on the Cromwell Group for Mission Minerals Ltd. September 21, 1981. AR 9,872. Chisholm, R.E. – Diamond Drilling Report on the Winslow Group Claims and Crown Grants for Winslow Gold Corp. November 5, 1987. AR 17,227. Chisholm, R.E. – A Geological Evaluation of the Silver Basin Group for Courageous Exploration Inc. February 15, 1988. AR 17,446. Church, B.N. – Metallogeny of the Slocan City Mining Camp. B.C.Geological Survey, Geological Fieldwork 1997, Paper 1998-1. Guilbert, J.M., Park Jr., C.F. – The Geology of Ore Deposits pp 107-109. Waveland Press Inc. 2007. Holland, R. – Diamond Drill Report on the Gus #2 Claim for Moly Gold Resources Ltd. April 1984. AR 12,179. Holcombe, R. – 2009: GEOrient, ver 9.4.4. Stereographic Projections and Rose Diagram Plots. MapPlace – Map Data downloads Marshak, S., Mitra, G. – 1988: Basic Methods of Structural Geology. pp 258-259, 264* Prentice-Hall Inc. Mine-Engineer.com – Recovery of Gold in Pyritic Sulfide Ores Moynihan, D.P. - Metamorphism and Deformation of the Central Kootenay Arc, Southeastern British Columbia. University of Calgary Thesis, Department of Geoscience, Calgary, Alberta. May, 2012. MtOnline - MINFILE downloads. Von Enseidel, C.A. – General Prospecting and Sampling Report on the Gus 3 & 4 Mineral Claims for Taban Developments. September 6, 1985. AR 14,561. Von Enseidel, C.A. – Summary Report on the Last Chance Claim Group for Consolidated Trout Lake Mines Ltd. January 03, 1989. AR 18,269. Von Enseidel, C.A., Greene, A.S. – Summary Report and Proposed Exploration Program Ottawa Creek Project for Loumic Resources Ltd. November 30, 1988. AR 18,095.

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STATEMENT OF COSTS The Structural Analysis on Tenures 1017648 & 1017649 of the Lardeau Group was done from March 8, 2013 to March 10, 2013 to the value as follows: Laurence Sookochoff, PEng. 2 1/2 days @ $ 1,000.00 ------$ 2,500.00 Maps ------750.00 Report ------3,500.00

$ 6,750.00 ======

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CERTIFICATE I, Laurence Sookochoff, of the City of Vancouver, in the Province of British Columbia, do hereby certify: That I am a Consulting Geologist and principal of Sookochoff Consultants Inc. with an address at 120 125A-1030 Denman Street, Vancouver, BC V6G 2M6. I, Laurence Sookochoff, further certify that: 1) I am a graduate of the University of British Columbia (1966) and hold a B.Sc. degree in Geology. 2) I have been practicing my profession for the past forty-six years. 3) I am registered and in good standing with the Association of Professional Engineers and Geoscientists of British Columbia. 4) The information for this report is based on information as itemized in the Selected Reference section of this report, from exploration work done in the general area of the Slocan Mining Camp, and from the Structural Analysis performed on Tenures 1017648 & 1017649 and associated research. 5) I have no interest in the Lardeau Group as described herein.

Laurence Sookochoff, P. Eng.

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