JAMES E. TILSLEY ft ASSOCIATES LTD.

32005SE8039 a. 12191 BEN NEVIS 010

REGAL GOLDFIELDS LIMITED Exploration Program - 1988 BEN NEVIS PROPERTY Larder Lake Mining Division

James E. Tilsley Si Associates Ltd. Consulting Geologists and Engineers Gp. BOX 115, R.R. #2 Aurora, Ontario, Canada L4G 3G8 February 06, 1989. JAMES E. TILSLEY 8c ASSOCIATES LTD.

33DeSSEee39 2.18191 BEN NEVIS 010C

TABLE OF CONTENTS

SUMMARY AND CONCLUSIONS l INTRODUCTION . 3

LOCATION AND ACCESS . 4

CLIMATE, TOPOGRAPHY AND LOCAL RESOURCES 5

PROPERTY . 6

SURFACE RIGHTS . 7 HISTORY . 7 GENERAL GEOLOGY . 10 MINERALIZATION 12 PRODUCTION . 13 RESERVES . 13 GEOLOGY AND DIAMOND DRILLING . 14 SAMPLING . 20 GEOPHYSICAL SURVEYS . 23 MAGNETIC SURVEY . 25 VLF-EM SURVEY . 26 RECOMMENDATIONS . 27 ESTIMATED EXPLORATION COSTS 30 REFERENCES .

CERTIFICATES . JAMES E. TILSLEY 8c ASSOCIATES LTD.

Appendices

Appendix I Diamond Drill Logs Diamond Drill Sections Appendix II Copies of Assay Certificates

MAPS

Surface Geology 1:2500 North Sheet in pocket South Sheet Magnetometer Survey 1:2500 North Sheet South Sheet VLF-EM Survey 1:2500 North Sheet South Sheet JAMES E. TILSLEY 8t ASSOCIATES LTD.

SUMMARY AND CONCLUSIONS

Geophysical surveys have been completed over most of the Ben Nevis property of Regal Goldfields Limited. Geological mapping of 17 of the 35 claims was done before snowfall obscured the outcrops. The surveys indicated four separate targets which were diamond drilled by N. Morissette Canada Inc. of Haileybury, Ontario. A total of 2008 lineal feet of NQ core was drilled in five holes. The best gold assay values returned from the core samples taken included 0.688 g/t, 0.249 g/t, and 0.232 g/t, from an area showing a magnetic anomaly with approximately 5?; pyrite mineral ization (Diamond drill holes #2 and #3). Silicification, carbonatization, quartz-carbonate veining, and zones of shearing were observed in the core from all holes. These features indicate conditions favourable for gold and for base metal mineralization. Further exploration of the property is recommended. The suggested work program is designed to test for base and precious metal bearing shear zones similar to those being explored on the claims adjoining to the north. This work can be done most effectively during the summer months. Special attention should be paid to the most northwesterly claims since the structure that hosts the most important mineralized zones on the adjoining property strikes southwest from Ranger Lake toward the north end of Pushkin Lake. Any JAMES E. TILSLEY 8t ASSOCIATES LTD.

extension of that favourable zone would likely pass through claims L-1015656, L-1015657, and L-1015658. The cost of the recommended exploration program is estimated at $46 639.00. JAMES E. TILSLEY ft ASSOCIATES LTD.

INTRODUCTION

In November, 1988, Regal Goldfields Limited acquired a group of thirty-five mining claims in Ben Nevis Township, Larder Lake Mining Division, Ontario. A base line was established across the property in a northwest-southeast direction (azimuth 320 0 ), with profile lines cut every 100m. Stations were estab lished at 25m intervals along the profiles. Geological mapping of the property commenced on November 24 and continued until snow cover became too deep on November 29. Detailed geophysical surveys were then performed over most of the property, finishing on December 13. This involved a magnetic survey and a VLF-EM survey using an IGS-2 system manufactured by Scintrex of Concord, Ontario. Claims L-1015655 and L-1015656 in the northwestern corner of the property were not gridded nor surveyed. However, parts of these claims were included in a ground electromagnetic survey by the Duvan Copper Company Limited in 1964. The geophysical surveys outlined several anomalies on the property. Four of these targets were diamond drilled by N. Morissette Canada Inc. of Haileybury, Ontario. A total of 2008 feet of NQ drilling in five separate holes was done between December 19 and 31, 1988. The work discussed in this report was completed at the end of December, 1988. Maps with magnetic and electromagnetic data as well as logs and sections of diamond drill holes are included in the appendix. JAMES E. TILSLEY 8c ASSOCIATES LTD.

LOCATION AND ACCESS

The property consists of a group of thirty-five mining claims located in southeastern Ben Nevis Township, Larder Lake Mining Division, Ontario. The claims are situated approximately 25km north of Larder Lake Station, 34km northeast of Kirkland Lake, Ontario and 48km west of Rouyn-Noranda, Quebec. Co-ordinates for the property are: 48 0 17© 00"N; 79 0 40© 00"W The Ben Nevis property can be reached by following a gravel-surfaced forest access road for 25km north of Larder Lake Station, which is 2.8km north of Highway 66 along the Larder Lake Station Road. Station Road is 1km east of the town of Larder Lake, Ontario. The forest access road is not maintained in winter and is thus restricted to snow machines or four-wheel drive vehicles during those months. It is easily passable by two-wheel drive vehicles during dry weather. Larder Lake can be reached by taking Highway 11 north from Toronto, through North Bay to Englehart. From Englehart, Highway 624 is followed for 44km to the town. An Ontario Northland railway line passes 25km to the south of the property at Larder Lake Station. Daily air service to \ other major centers is available in both Kirkland Lake and Rouyn-Noranda. JAMES E. TILSLEY 8c ASSOCIATES LTD.

CLIMATE, TOPOGRAPHY, AND LOCAL RESOURCES

The area has warm summers and cold, relatively dry winters. Summer maximum temperatures in the 30 0 C range are not uncommon during July and August, as are winter minimums of -40 0 C during December, January and February. Total annual snowfall amounts to between one and two meters, usually covering the ground from mid-November to April. The Ben Nevis claim group covers moderately rolling ground, with average relief of less than 15m. Several outcroppings of bedrock rise abruptly through the glacial sands and gravels to produce relief of over 60m. The central part of the property has an elevation of 330m above sea level, while that of the northeast corner of the property exceeds 380m above sea level. Several small lakes are included, at least in part, within the property boundaries. Pushkin Lake in the northwestern cor ner and Captain Lake in the northeastern corner are each approx imately 25ha in area, while Sylvia Lake in the southwestern corner of the claim group is approximately 20ha. Drainage from Pushkin Lake is initially into the Misema River, while captain Lake and Sylvia Lake drain first into the Little Misema River before reaching the Misema. From the Misema River, drainage is to Blanche Creek, Lake Timiskaming, and the . While all water on the Regal Goldfields Limited property eventually drains southward, water only 1km north of the JAMES E. TILSLEY ft ASSOCIATES LTD.

property is on the other side of the Arctic drainage divide and flows northward via the Magusi and Abitibi Rivers into James Bay. Mining equipment, supplies, and services are available in the nearby mining towns of Kirkland Lake, Cobalt, and Rouyn- Noranda. Skilled labour is readily available in Kirkland Lake and the surrounding area. A small medical center is located in Larder Lake, while hospital facilities are available in Kirkland Lake and Rouyn- Noranda. Industrial power and telecommunications facilities parallel the railway line 25km south of the property. A substantial part of the property has been logged and is now dominated by second growth birch, poplar, and assorted deciduous shrubs. Mature spruce and a few other conifers cover the remainder of the claim group. All accessible merchantable timber has been removed from the property.

PROPERTY

The property consists of thirty-five mining claims located in southeastern Ben Nevis Township. The claims were staked by Ron Crichton of Kirkland Lake for Thomas Obradovich and are under option to the company. The individual claims are on record at the Mining JAMES E. TILSLEY ft ASSOCIATES LTD.

Recorder©s office in Kirkland Lake. Claim numbers are: L-1015655 to L-1015689, inclusive.

SURFACE RIGHTS

The claims cover Crown Land and include only mineral rights.

HISTORY

Larder Lake has a long history of prospecting and mine development dating back to 1906 when it was the site of the first gold rush in . The Kerr-Addison Gold Mine, still in production today, was the first of several mines in the Larder Lake area and began preliminary work in 1906. All the other workings have since ceased operation. Prospecting activity began in Ben Nevis Township soon after gold was found in Larder Lake. Gledhill©s 1928 study included several observations of mineralization. Copper, molybdenum, and gold were discovered in small amounts south and southeast of the Clifford Stock (approximately 8km west of the Regal Goldfields Limited property) by Captain Snipe and J. Bain (Jensen, 1975). Copper, lead, zinc, and gold were found west of the Clifford stock by E. O. Ehrhart and J. Martin, while copper, lead, zinc, gold, and silver were found by P.- Roche and E. O. Ehrhart approximately 2km north of the property (Jensen, 1975). JAMES E. TILSLEY ft ASSOCIATES LTD.

Laying out a grid over Captain Lake - December, 1988.

The Ben Nevis property looking northeastward along L1600E. Patterns in sky and snow are from frost crystals which formed on film at -29 0 C. JAMES E, TILSLEY ft ASSOCIATES LTD. ft Three exploratory shafts were sunk on this latter prospect between 1927 and 1929 by the Interprovincial Exploration Company Limited. In 1936, the property was acquired by Canagau Mines Limited, with dewatering and sampling commencing in 1937. Later years saw several attempts to outline further extensions of the mineralization. Electromagnetic and magnetometer surveys covered the area in 1960, while a bulldozer was used to strip the overburden in 1962. Several other properties in Ben Nevis Township are known to have overgrown pits and trenches near zones of minor mineralization, but to date no production has occurred in the township. (Jensen, 1975) Parts of the two claims in the northwest corner of the Regal Goldfields Limited property {L-1015655 and L-1015656) were held by the Duvan Copper Company Limited in 1964. Magnetometer and electromagnetic surveys were completed, but no anomalous conditions were reported. Cominco Ltd. filed an airborne electromagnetic survey flown by Scintrex in 1971 which included that part of the property north of an east-west line that passes through the outlet of Captain Lake. This survey showed the peak of an anomaly in claim L-1015658 just east of the access road at approximately L900E/300N. In 1979, an airborne electromagnetic and total intensity magnetic survey was flown over Ben Nevis Township by Questor JAMES E. TILSLEY ft ASSOCIATES LTD.

Surveys Limited of Toronto, Ontario for the Ontario Geological Survey. Flight lines were north-south, while the airborne survey done for Cominco in 1971 had flight lines which were oriented at 280 0 . The electromagnetic anomaly indicated by the 1971 survey was not detected in the 1979 O.G.S.-sponsored survey. Finally, on November 7 of 1988, Westbank Resources reported in the Northern Miner that it had discovered a polymetallic showing in Ben Nevis Township immediately north of the Regal Goldfields Limited property. Sampling was reported to have yielded the following assays of lead, zinc, gold, and silver in silicified shear zones: Sample l - 11.^ Zn, 1.0 oz/ton Ag, 0.036 oz/ton Au, tr. Pb. Sample 2 - nil Zn, 7.3 oz/ton Ag, 0.83 oz/ton Au, 0.0 Pb. Sample 3 - tr. Zn, 6.0 oz/ton Ag, 0.632 oz/ton Au, tr. Pb. JAMES E. TILSLEY 8c ASSOCIATES LTD.

GENERAL GEOLOGY

The geology of the Ben Nevis Township area was first investigated in 1901 by W. J. Wilson who examined the rocks along the canoe route from Kennedy Lake to Verna, Keith, and Webster Lakes (published in Western Part of the Abitibi Region; P.117A-130A in Summary Report, pt.A, Geol. Surv. Canada, p.271, Vol. XIV.). After nearly 20 years of prospecting activity, another study was done by C. W. Knight in 1919. (Ben Nevis Gold Area; Ontario Dept. Mines, Vol. 29, pt. 3, p.1-27.). Reconnaissance mapping continued in 1927 as part of a study of several Ontario base metal areas by T. L. Gledhill. (Ben Nevis, Munro, Kamiskotia, and Other Base Metal Areas, Districts of Cochrane and Timiskaming; Ontario Dept. Mines, Vol. 37, pt.3, p. 1-52). A detailed study on the geology of the area was done by L. S. Jensen of the Ontario Division of Mines, published in 1975 (Geology of Clifford and Ben Nevis Townships, District of Cochrane; Ontario Div, Mines, GR132.). Geochemical exploration in the township was completed in 1977 by W. J. Wolfe (Geochem ical Exploration of Early Precambrian Sulphide Mineralization in Ben Nevis Township, District of Cochrane; Ontario Geological Survey Study 19). Several samples with anomalous values of both zinc and copper were collected on the Regal Goldfields Limited property in the area south of Captain Lake. A table of the lithologic units in the Ben Nevis area follows. (from Jensen, 1975)

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TAHLE OF LITHOLOGIC UNITS FOR THE Table 1 CLIFFORD-HEN NEVIS AREA.

CENOZOIC

QUATERNARY Recent Peat, alluvium. Pleistocene Gravel, sand, till and clay. Unconlotinily

PRECAMBRIAN MIDDLE TO LATE PRECAMBRIAN (PROTEROZOIC) MAFIC INTRUSIVE ROCKS Olivine diabase, quartz diabase. Intrusive contact

EARLY PRECAMBRIAN (ARCHEAN)

FELSIC INTRUSIVE ROCKS Granodiorite, quartz diorite, diorite, syenite, feldspar porphyry and quartz-feldspar porphyry. Intruiire contact

MAFIC TO INTERMEDIATE INTRUSIVE ROCKS Gabbro, quartz gabbro, hornblende gabbro and diorite. Intruiivt contact

VOLCANIC ROCKS Felsic Volcanic Rocks Rhyodacite and rhyolite: Massive, flow-breccia, tuff-breccia, tuff nnd lapilli-tuff. Intermediate Volcanic Rocks Andesite and dacite: Massive, pillowed, flow-breccia, tuff, nrgillite. Mafic Volcanic Rocks Basalt: Massive, pillowed, flow-breccia, tuff-breccia. JAMES E. TILSLEY ft ASSOCIATES LTD.

Jensen, (1975) stated that Ben Nevis Township is favourable for precious and base metal exploration because of its proximity to two economically important structures, namely the Destor- Porcupine Fault to the north and the Larder Lake Fault approx imately 25km to the south. Secondly, the township is situated in a belt of volcanic rock contiguous with that of the Noranda area in Quebec. Regal Goldfields Limited©s Ben Nevis property is underlain by rocks of the Abitibi belt, an Archean aged greenstone belt which extends from west of Timmins, Ontario, to east of Chibougamau, Quebec. The rocks are Early Precambrian layered volcanics of intermediate to felsic composition, with a few interbedded sedimentary rocks. Low-grade regional metamorphism has affected the bedrock of the Ben Nevis area. The township was glaciated during Pleistocene time and is covered by till and glacial outwash deposits through which bedrock is exposed. Several sand and gravel deposits have been utilized for local road construction, including one at L2000E/700S.

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MINERALIZATION

In exploration activity since 1906, galena, sphalerite, chalcopyrite, silver, and gold mineralization have been noted in Ben Nevis Township, The showing which has received the most attention over the years is a prospect in east-central Ben Nevis Township, approximately 3km north of the Regal Goldfields Limited property. Originally staked by Peter Roche in 1926, develop ment work has in later years been carried out by the Inter- provincial Exploration Company and Canagau Mines Limited. This prospect is found to be closely associated with strongly foliated, carbonitized, and sericitized rhyolite tuff, tuff- breccia and lapilli tuff of the lower rhyolite pyroclastic unit. Mineralization is near the hinge-line of an anticlinal structure which plunges south. The core of this structure is occupied by the structurally thickened lower rhyolite pyroclastic unit. Sphalerite, galena, chalcopyrite, pyrite, pyrrhotite, silver, and gold occur in veins or massive replacements in shear zones within altered rhyolite tuff, or as disseminated minerals in adjacent sheared tuff. Alteration products in the mineralized tuff include sericite, chlorite, talc, and carbonate. Surface and underground work suggest that the vein strikes east for 120m with a proven vertical depth of 99m, although it appears to be more accurately represented by a vein stockwork rather than a single vein (Wolfe, 1977).

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PRODUCTION

There has been no production of metallic minerals from the Ben Nevis property of Regal Goldfields Limited, although gravel has been mined for local road construction.

RESERVES

There are no known metallic mineral reserves on the property.

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GEOLOGY AND DIAMOND DRILLING

The geology of the Regal Goldfields Limited property was mapped in part by R. Mueller between November 24 and 29, 1988. The following claims were covered before the survey was term inated for the season because of snow:

L-1015657 L-1015678 L-1015662 L-1015679 L-1015664 L-1015682 L-1015669 L-1015683 L-1015673 L-1015684 L-1015674 L-1015688 L-1015689 Most of the property is underlain by Archean age volcanic rocks of intermediate to felsic composition. Intermediate volcanics underlie much of the central part of the claim group. These include massive and pillowed flows of andesite and dacite, as well as some flow breccia and tuff. Massive units are homo geneous and grade upwards into pillowed flow units at the upper and lower contacts of the lava flows. Pillows are found to be elliptical and between 30cm and 60cm in diameter, with smooth curvatures and bottoms with tails pointed downward, perpen dicular to their long axes. These have been noted at L1800E/900N in claim L-1015669, where light-coloured pillows are surrounded by dark green selveges between lcm and 3cm thick. Selveges are soft and weather deeper than the pillow. Flow breccia contains fragments which are similar in composition and colour to the matrix, with approximately 15* subangular to subrounded fragments between lcm and 30cm in size.

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Compositionally, andesite is made of 60 to 70?. plagioclase, 20 to 25?; augite, with accessory minerals quartz, magnetite, and pyrite. Alteration has caused chlorite, calcite, saussurite, albite, and quartz to form from the plagioclase and augite. Dacitic members contain 70 to SO1! plagioclase, 5 to 10% augite, and 5 to 15?; quartz, with pyrite and magnetite as accessories. Felsic volcanics include massive rhyodacite and rhyolite with minor tuffaceous rhyolite and rhyodacite. Quartz and feldspar porphyries are noted in the southwest corner of the property in claims L-1015684 and L-1015689. The felsic rocks are light-coloured and aphanitic with a white or buff weathered surface. Intruding the volcanics in the area of L2200E/100N is a small plug of hornblende gabbro also of Archean age. This is a dark green to black massive rock, having a composition of 40 to 45?; hornblende, 30 to 351; plagioclase, 5 to 101; biotite, and up to 10?; quartz, with magnetite as an accessory mineral. Structurally, the property is traversed by an anticlinal axis that trends 030 0 through claims L-1015666, L-1015667, and L-1015669, and leaves the northern part of the property through Captain Lake. Jensen shows two major faults cutting across the property. The first is a north-trending fault that passes through claims L-1015661, L-1015669, L-1015674, L-1015679, L-1015684, and L-1015689. There is no surface expression of this fault. Its

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position is interpreted on the basis of an abrupt change in the strike of the volcanics. A second fault is northeasterly trending (065 0 ) and is an offshoot of the north-trending fault in claim L-1015689. Several fault zones have been indicated by the VLP-EM survey. Three of these were targets of diamond drill holes #1, #4, and #5. D.D.H. #2 and #3 tested a magnetic anomaly. D.D.H. #1 was oriented grid north (OSO 0 ) and drilled so that it intersected a conductive axis which was located by the VLF-EM survey in claim L-1015683 between L2200E/150S and L2400E/200S. The electromagnetic survey showed the axis to trend at 330 0 . A possible surface expression of this structure is a small creek which drains into Little Misema Creek. The hole was drilled 497 lineal feet at an angle of -45 0 . It was collared at L2400E/225S. A fault zone with quartz and carbonate infilling was intersected between 202 and 204 feet below the collar. Most of the hole was in a fine-grained, dark, grey/green, porphyritic andesite. Quartz stringers of less than 1mm in width were encountered along most of its length, with several larger veins of up to 18" in width. The larger veins were often bounded by a zone of brecciated andesite, making the orientation of the vein difficult to ascertain. Samples were taken from this and the other core sections which appeared most likely to host mineralization. These were

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sent for assay at Accurassay Laboratories in Kirkland Lake. Preparation of the samples included pulverization to 90*6 -80 mesh. The pulps were screened through 80 mesh wire cloth and the entire +80 mesh fraction was then assayed, as were two 1AT cuts of the -80 mesh product. The best value from D. D. H. #1 was 100 ppb Au over 2 feet. D. D. H. #2 and #3 were drilled to test the magnetic anomaly in claim L-1015679. D. D. H. #2 was collared at L2200E/362.5N, while D. D. H. #3 was collared at L2150E/350N. D. D. H. #2 was inclined at -45 0 and oriented grid north (0500 ). Core from this hole shows a fine-grained, grey-green chloritic rhyo-dacite with between 3 and 5% pyrite and a trace of pyrrhotite. These sulphides were found usually along or near the edges of very narrow (less than 2" width) quartz stringers. The amount of pyrite was remarkably consistent throughout the 267 foot length of the hole and decreased to below 3% only at the 235 foot mark in the core. The best gold assay returned from the samples taken from this hole was 232 ppb over 1.5 feet. D. D. H. #3 was inclined at -50 0 , oriented grid north (050 0 ) and drilled to a distance of 250 feet from the collar. Fine-grained, soft, grey-green, and chloritic rhyo-dacite was again encountered. A maximum of 7% pyrite with a trace of pyrrhotite was found intermittently throughout the hole. Several narrow zones of brecciated rhyo-dacite infilled by quartz were noted. The best assay returned from Hole 13 was 688

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ppb Au over 2 feet . D. D. H. #4 was positioned to test the second conductive axis indicated by the VLF-EM survey. This axis was found to strike at approximately 110 0 in claims L-1015659 and L-1015667 between L1100E/350N and L1400E/525N. The hole reached a distance of 497 feet from the collar at -45 0 . It is oriented grid south (230 0 ) and collared at L1300E/475S. Fault zones were intersected in the core between 131 and 147 feet, as well as between 423 and 426 feet. Drill core from this hole consisted primarily of a rhyo-dacite, again fine grained and grey/green in colour. A quartz porphyry was found for the first 146 feet below the collar, while quartz stringers less than 1mm in width were encountered frequently along the length of the hole. Some carbonate was also noted, including a 3" vein of white and pink calcite at 246 feet. A maximum of between 5 and 71 disseminated pyrite was logged in a zone of brecciated rhyo-dacite infilled with quartz at 305 feet. The best assay of the samples taken from core in this hole was 66 ppb Au over 2 feet. The third conductive axis indicated by the VLF-EM survey trends roughly parallel to the forest access road in the northern end of the property. The main conductive axis appears to trend at roughly 350 0 through claims L-1015658, L-1015666, and L-1015671 between L1000E/275N and L1500E/025S. An offshoot of the main axis trends approximately 310 0 , splitting at

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L1100E/200N. Also, a Scintrex airborne anomaly was indicated in this area in 1971. These axes were drilled for 497 feet at an angle of -45 0 . The hole was collared at L1050E/281N and drilled grid south (2300 ). Fault-related fracturing was noted between 80 and 90 feet below the collar, with a second, coarser fracture zone at 97 to 100 feet. Soft, grey andesite was logged at the beginning of this hole, with a porphyritic andesite starting at 153 feet. A six inch quartz-carbonate vein was encountered at 61 feet. Several zones of brecciated andesite infilled with quartz were also noted and sampled. A 2" quartz vein with S-5% pyrite was intersected at 152 feet. The highest value returned was 201 ppb Au over l .5 feet.

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SAMPLING

Sampling of the Ben Nevis property of Regal Goldfields Limited included four large samples of the exposed bedrock near the magnetic anomaly in claim L-1015679, and 26 samples from the 2008 feet of core obtained during the diamond drilling program. Five of the 26 samples of drill core were sent for a detailed 26-element geochemical analysis. The four samples averaged 18.15kg and were collected in the area of L2200E/350N where up to 5% pyrite was visible in outcrop just south of the magnetic anomaly. Preparation of these sam ples included jaw crushing the rock to 1/4" and then to -20 mesh using a rolls crusher. The -20 mesh product was screened to remove any coarse gold which might have been present in the samples. After initial screening, a 500g cut was sent to Accur- assay Laboratories where it was pulverized to approximately 80 mesh. The pulp was screened using an 80 mesh (850 micron) sieve. Two 1AT cuts of the -80 mesh fraction were assayed, as was the entire +80 mesh product. The following is a summary of the results obtained by sampling of this area:

Sample Number Sample Weight Estimated (kg) Grade Au (g/t)

8301 12.725 0.041 8302 20.075 0.072 8303 21.800 0.010 8304 18.000 0.039 72.600 kg

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During the diamond drill program, a total of 26 samples was taken from selected lengths of drill core which appeared to be favourable for hosting gold mineralization. Preparation of these samples involved pulverization to nominal 80 mesh and screening using an 80 mesh sieve. Two 1AT cuts were taken of the -80 mesh fraction while the entire + 80 mesh fraction was assayed. Detailed assay results are shown on the diamond drill logs. Five samples from the core were analyzed for each of 26 elements, including Ag, Al, As, Au, Ba, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, Mg, Mn, Mo, Na, Ni, P, Pb, Pd, Pt, Sb, Sn, Sr, U, W, and Zn. These were compared to the values established by W. J. Wolfe and reported in Geochemical Exploration of Early Precambrian Volcanogenic Sulphide Mineralization in Ben Nevis Township. (Ontario Geological Survey Study 19, 1977). Wolfe took 920 samples and established an average zinc value of 70 ppm, with a standard deviation of +J- 30 ppm. Of the five test samples from drill core, four exceeded the mean and one (120 ppm) was almost 2 standard deviations above the mean. Wolfe©s copper analysis yielded an average of 45 ppm with a standard deviation of */- 37 ppm. Copper values from the test drill core samples collected were all above the mean, with a high of 572 ppm (over 14 standard deviations above the mean!). Values of 254 ppm {over 5 standard deviations above mean) and

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226 ppm (over 4 standard deviations greater than the mean) were also reported. An average nickel content established by Wolfe in 1977 was 81 ppm, with a standard deviation of +/- 50 ppm. Assays from four of the five samples from the core were determined to exceed the average, although none were deemed truly anomalous by exceeding the mean by two standard deviations. Of the trace elements, the average manganese value of 708 ppm was exceeded in one of the five samples, but only by 23 ppm. Cobalt was found by Wolfe to have an average abundance of 21 ppm with a standard deviation of +/- 10 ppm. The mean was surpassed in all five core samples, including a value of 67 ppm which was more than 4 standard deviations above the mean. Assay certificates are appended.

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GEOPHYSICAL SURVEYS

The geophysical surveys employed a Scintrex IGS-2 (Integrated Geophysical System) fitted with sensors and processing circuits to permit collection of total field magnetic and vertical magnetic gradient data (MP-4), and to measure three components of the VLF-magnetic field (VLF-4). The system includes a solid state memory in which measurements are stored in ASCII 7 bit, no parity format. Data retrieval is by RS-232C serial interface to digital printer, modem, microcomputer, or cassette tape recorder. Both the IGS-2 field unit and the magnetic base station have solid state memories expanded to 48 kilobytes. This permits readings at up to 800 field stations before data dump is required. The magnetic base station is usually operated by an automotive 12 volt battery, which provides ample, steady, and reliable power. The expanded memory allows magnetic field measurements to be recorded each two or three seconds for continuous periods of ten to twelve hours. The field magnetic data were microprocessor corrected for diurnal variation using a pre-programmed routine resident in the memory of the IGS-2 field unit referenced to continuous magnetic records obtained by an MP-3 proton magnetometer operating in base station mode, time synchronized with the IGS-2/MP-4 field unit. Resolution is O.lnT. Three components of the VLF magnetic field are recorded at

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Setting up the magnetic base station sensor at L1580/BLO.

Geophysical survey in progress during the late afternoon of December 11, 1988. JAMES E. TILSLEY 8t ASSOCIATES LTD.

each survey station. One, two, or three navigation station signals can be received and vertical in-phase, vertical quadrature, and horizontal amplitude of the magnetic component of the VLF electromagnetic field can be read sequentially in less than one minute. At the end of each field day during the surveys, all data were recovered in hard copy on a dot matrix digital printer. When hard copy had been obtained and verified, the solid state memories of the magnetic base station and the field unit were erased in preparation for the next survey day. The magnetic base station was set up near the center of the property where the base line intersects the access road near L1580E/BLO. Magnetic data are presented on two map sheets drawn at a scale of 1:2500 to cover the area within the property boundaries. The scale was chosen to permit plotting of closely- spaced measurements. Both the corrected total magnetic field determinations and vertical magnetic gradient data are shown on the plans. The total magnetic field data are plotted on the east side of the lines and the magnetic gradient to the west. The total field is in the order of 58 SOOnT (base field). The first and second digits of the total magnetic field are normally omitted. Only the last three digits are plotted, unless the field is changing from above 58 OOOnT to below 58 OOOnT (or vice versa). The VLF-EM survey sheets have the vertical in-phase component determinations plotted to the west of the lines and

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the vertical quadrature to the east. Both are expressed in percent. The horizontal amplitude vector of the magnetic component of the electromagnetic field transmitted by the navigation station being measured is shown where relative change indicates the axis of a conductive structure. These values are not absolute values but are instantaneous measurements of the primary field strength which is known to vary diurnally. Since the strength of the primary field has not been monitored by a VLF recording base station, no data exist to permit normalization of these values. Therefore, the values are indicative of the location of conductive axes, but cannot be used comparatively.

MAGNETIC SURVEY

The magnetic survey of the Ben Nevis Township property was designed to indicate any areas of bedrock which may contain magnetic sulphide mineralization, namely pyrrhotite, as well as providing detailed structural information about the volcanic rocks which underlie the claim group. A total of 3523 readings was taken at 12.5m intervals along profiles spaced at 100m. There was no difference in magnetic expression between the felsic and the intermediate volcanics, indicating that a fairly similar chemical composition is shared by the two rock units. One anomalous area in claim L-1015679 was indicated by the survey along lines 2150E and 2200E approximately 400m north of

25 JAMES E. TILSLEY ft ASSOCIATES LTD.

the base line. Values as high as 59 711nT (l 411nT over the base field of 58 300nt) were recorded. Between 5 and 7% pyrite was noted in the intermediate volcanics just south of the sur face expression of the anomaly. Two diamond drill holes were located to intersect the magnetic high. D.D.H. #2 was collared at L2200E/362.5N and D.D.H #3 was collared at L2150E/350N. As much as 71; pyrite mineralization was encountered through the entire length of each hole. A trace amount of pyrrhotite was also found to be present with the pyrite, thus accounting for the magnetic anomaly. The anomaly appears to indicate a single elongated plug with a maximum axis of about 75m.

VLF-EM SURVEYS

A VLF-EM survey was completed over the property using signals from the transmitting station in Cutler, Maine (NAA) which broadcasts at a frequency of 24.0kHz. Several conductive structures were outlined by the survey and became targets for the diamond drilling program. Drill results, as discussed earlier, indicated fault zones to explain the anomalies. Also present were some quartz and quartz- carbonate veins, as well as zones of silicification and shearing. The locations and orientations of the three major conductive axes were discussed earlier as part of the descrip tion of D.D.H #1,4, and 5.

26 JAMES E. TILSLEY ft ASSOCIATES LTD.

RECOMMENDATIONS

To this point, there have been no economic amounts of gold or base metal mineralization found in the Ben Nevis Township property of Regal Goldfields Limited. There are, however, several indications that mineralization processes have occurred which would warrant further exploration on the property. From drill core, silicification, carbonitization, and minor shearing were noted. Sampling yielded anomalous abundances of zinc, copper, and cobalt. Secondly, the property is in very close proximity to other prospects which have recently reported showings (Northern Miner, November 7, 1988). First of all, geological mapping should be completed on the entire property. Only 13 of the 35 claims were mapped before excessive snow cover forced the termination of the survey for the season. Next, a reconnaissance humus geochemistry survey should be carried out over the entire property. Such a survey will indicate the presence of base and precious metals through the overburden cover as long as the overburden is not too deep. We have found collection of forest mull (or ©humus©) to be the most effective geochemical survey sampling technique, since this material will indicate the chemistry of the soils and rocks penetrated by the roots of the trees and shrubs from which it is derived. This gives a greater depth of effective sampling than can be expected when inoroganic material is collected from the

27 JAMES E. TILSLEY ft ASSOCIATES LTD.

uppermost soil horizons developed on transported overburden. Normally, humus samples are taken on a relatively wide spacing since there tends to be a dispersion and mixing of leaves, needles and bark fragments from individual trees or groups of trees growing on mineralized ground with similar material from trees not in contact with mineralized bedrock. This results in broad, low amplitude, metal anomalies from restricted source areas. Reconnaissance sampling is recommended over areas of the property which are not covered by swamps, areas of great over burden thickness where vegetation is unable to reach bedrock, or areas where bedrock is directly exposed. The spacing for recon naissance sampling should be 50m along lines not more than 100m apart. Detailed sampling would have samples taken on not more than a 40m square grid, with a 20m square grid density in selected areas. The humus samples respond well to analysis by neutron activation techniques and are particularly suitable for determination of gold content in the parts per billion range. We have found that other elements are often useful indicators of mineralization and usually opt for the total 16 element package {Au, Sb, As, Ba, Br, Cr, Co, Fe, Mo, Se, Ag, Ta, Th, W, U, and Zn) at a slight additional analysis charge. Interpretation of geological and geochemical results with reference to information collected during geological mapping of

28 JAMES E. TILSLEY 8c ASSOCIATES LTD.

the survey area should be followed by trenching, stripping, washing, detailed geological mapping, sampling, and assaying, as required and possible under overburden and drainage conditions existing in those areas where data indicate the possibility of mineralized bodies. Finally, attention should be given to the two claims (L-1015655 and L-1015656) in the northwestern corner of the property which were not included in the magnetic and VLF-EM surveys. A base line should be cut in a northerly direction from the end of the present base line. East-west trending profile lines should be spaced at 100m intervals along this new base line. The estimated costs of the recommended exploration work are tabulated on page 30.

29 JAMES E, TILSLEY A ASSOCIATES LTD.

ESTIMATED EXPLORATION COSTS

The cost of the recommended exploration work is estimated as follows: Lines 5km at $263.50 l 317.50 Geophysical surveys; total magnetic 637.50 field, magnetic gradient, VLF-EM 2TX, 3 parameters 150 sta. at $4.25 Geochemical surveys; humus sampling, 5 100.00 16 element analyses, 300 stations at $17.00 Geological mapping; 22 claims at $350 7 700.00 Stripping/Trenching/Washing 7 500.00 Sampling l 000.00 Assaying l 000.00 Supervision 4 500.00 Consulting, reporting 6 750.00 Drafting, secretarial, printing, 2 000.00 binding, et cetera Communications, courier 875.00 Equipment allocations (pumps, hose, l 594.00 et cetera) Vehicle (incl. fuel, insurance, l 940.00 et cetera) Travel, room S board (60 man/days) 4 500.00 Insurance 225.00

TOTAL 5 46 639.00

30 JAMES E. TILSLEY ft ASSOCIATES LTD.

REFERENCES

Downes, M. J. 1981: Structural and Stratigraphic Aspects of Gold Mineralization in the Larder Lake Area, Ontario; p.66-69 in Genesis of Archean, Volcanic-Hosted Gold Deposits, Symposium Held at the University of Waterloo, March 7, 1980, Ontario Geological Survey, MP 97, 175 p. Gledhill, T. L. 1929: Ben Nevis, Munro, Kamiskotia, and Other Base-Metal Areas, District of Cochrane and Timiskaming; Ontario Department of Mines, 1928, Volume 37, pt. 3, p.1-52. Accompanied by Map No. 37g, scale l inch to l mile. Hurst, Tracy et. al. 1987: Tegousie Wabie: The Story of Larder Lake, Ontario. Copyright Larder Lake Public Library, 99p. Jensen, L. S. 1975: Geology of Clifford and Ben Nevis Townships, District of Cochrane; Ontario Div. Mines, GR132, 55p. Accompanied by Map 2283, scale l inch to 1/2 mile. Jensen, L. S. 1981: Gold Mineralization in the Kirkland Lake-Larder Lake Area; p. 59-65 in Genesis of Archean, Volcanic-Hosted Gold Deposits, Symposium Held at the University of Waterloo, March 7, 1980, Ontario Geological Survey, MP 97, 175 p. Jensen, L. S., and Langford, F. F. 1985: Geology and Petrogenesis of the Archean Abitibi Belt in the Kirkland Lake Area, Ontario; Ontario Geological survey, Miscellaneous Paper 123, 130p. Accompanied by Maps P.2434 and P.2435, scale 1:63 360 or l inch to l mile and sheet of microfiche. Knight, C.W. 1920: Ben Nevis Gold Area; Ontario Dept. Mines, Vol. 29, pt. 3, p.1-27. Accompanied by Map 29e. Northern Miner Press Ltd. 1988: Westbank Find in Ben Nevis, November 7. JAMES E. TILSLEY 8c ASSOCIATES LTD.

Ontario Geological Survey 1979: Airborne Electromagnetic and Total Intensity Magnetic Survey, Kirkland Lake Area, Ben Nevis Township, District of Cochrane; by Questor Surveys Limited zor the Ontario Geological Survey, Prelim. Map p.2254 Geophys. Sur., scale 1:20,000. Survey and compilation, February and March 1979. Ploeger, F., Campbell, A., and Grabowski, G. 1979: Ben Nevis Township, District of Cochrane; Ontario Geological Survey Preliminary Map P.859 (Rev.), Kirkland Lake Data Series. Scale 1:15 840 or l inch to 1/4 mile. Data Compiled 1979. Wolfe, W. J. 1977: Geochemical Exploration of Early Precambrian Sulphide Mineralization in Ben Nevis Township, District of Cochrane; Ontario Geological Survey Study 19, 39p. Wilson, W. J. 1901: Western Part of the Abitibi Region; p.l!7A-130A in Summary Report, pt.A, Geol. Surv. Canada, p.271, Vol.XIV. Accompanied by Map No. 760, scale l inch to 16 miles. JAMES E. TILSLEY a ASSOCIATES LTD.

CERTIFICATE

I, Ralph P. Mueller, of the town of Newmarket, Province of Ontario, hereby certify:

1. I am a Project Geologist and reside at 438 Tecumseth St., Apt. 2, Newmarket, Ontario. 2. I am a graduate of McMaster University, 1988, B.Se., Geology. 3. I have been employed as a geologist since graduation. 4. This report is based on my work and personal observations of the property in November and December of 1988, as well as information obtained from current technical literature, and reports published by the Ontario Department of Mines, Ontario Division of Mines, the Ontario Geological Survey, and the Geological Survey of Canada. 5. I have no interest, direct or indirect, in the properties or securities of Regal Goldfields Limited, or any affiliate, nor do I expect to receive any such interest. Dated at Aurora, Ontario this 06 day of February, 1989.

Ralph P. Mueller, B.Se. JAMES E. TILSLEY 8c ASSOCIATES LTD.

CERTIFICATE

I, James E. Tilsley, of the town of Aurora, Province of Ontario, hereby certify:

1. I am a Consulting Geologist and reside at 5 Steeplechase Avenue, Aurora, Ontario. 2. I am a graduate of Acadia University, 1959, B.A. Geology. 3. I am a member of the Association of Professional Engineers of Ontario, The Association of Professional Engineers of Manitoba, The Association of Professional Engineers of Nova Scotia, Chartered Engineers {Great Britian), and designated Consulting Engineer, Ontario Association of Professional Engineers, 1975. 4. I have been employed as a geologist since graduation, with consulting groups since 1964 and in private practice since 1980. 5. This report is based on geological and geophysical surveys carried out under my supervision, observations made during visits to the property between December 10 and 16, 1988, and on the study of records relating to the property as available from the assessment files of the Ministry of Natural Resources, province of Ontario, maps and reports published by the Ontario Bureau of Mines, the Ontario Department of Mines, the Ontario Geological Survey, and the Geological Survey of Canada. 6. I have no interest, direct or indirect, in the proper ties or securities of Regal Goldfields Limited, or any affiliates, nor do I expect to receive any such interest.

Dated at Aurora, Ontario this O ebruary, 1989. JAMES E. TILSLEY ft ASSOCIATES LTD.

APPENDIX I

DIAMOND DRILL LOGS, SECTIONS JAMES E. TILSLEY 8c ASSOCIATES LTD.

APPENDIX II

COPIES OF ASSAY CERTIFICATES ACCURASSAY LABORATORIES LTD. P.O. BOX 604 KIRKLAND LAKE, ONTARIO, CANADA P2N 3J5 TEL.: (705) 567-6343 President: Dr. GEORGE DUNCAN, M.SC., Ph. D., c. Chem (Ont.i, c. Chem (U.K.), M.C.I.C., M.R.S.C., A.R.C.S.T, Certificate of Rnolysis Page: l -J. E. Tilsley Associates December 7 88 23769 5 Steeplechase Avenue Date: 19 Aurora, Ontario L4G-3G8 Work Order 881307 Project SAMPLE NUMBERS Gold Accurassay Customer ppb 159257 8301 41 159258 8302 72 159259 8303 10 159260 8304 39 159260 8304 27 Check

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ORIGINAL BY:XEROX TELECOPIER 7010 ; 1-12-89 5:06PM ; 705 568 S368-* A 168413029;W 2

Jan. 12M9 17:05 0000 ACCURASSAY LABS TEL705-568-8368 PflGE 02

ACCURASSAY UBORATORIES LTD. P.O. BOX 604 KIRKIAND LAKE, ONTARIO, CANADA P2N 3J5 TEL.: (706) 567-4343 President: Dr. GEORGE DUNCAN, M.SC . P* o., c. a*m luw.i. c eh** iu x i. M.C.I c . M.R.S.C., A.B.C.R.T. Certificate of Analysis

9/JO71 -- . Tilsleysey Associatesssoca Date: January 12 t*IO(J.t; steeplechase- Avenue Aurora, Ontario L4C-3G8 VorK Order # : 690031 Projec-t :

Accurassay # Customer # Pulp weight Subsaaple Read weight gram mg 164982 155029 1405.330 30.250 0.004 30.340 0.000 4.600 o.ooo 1649fid 105031 2621.130 30 . 170 0.000 3U.240 0 , 003 36,770 0.000 164984 155033 642.730 30,110 0.000 30 , 030 0,001 20.310 0.003 1649ttb 155035 1047.030 30.290 0.000 30 . 020 o.ooo 7.770 0.000 1*14986 155036 971.030 30.130 0,002 30.110 0.001 2,650 0.000 104987 155037 1348.430. 30.090 0 . 008 30.110 0 , 004 6.030 0.003

Z Df. G. DuT^n "l \kX, CHEMIST Jjj A

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ORIGINAL ROJ BY:XEROX TELECOPIER 7010 ; l- 9-89 6:36PM ; 705 568 8368-) 4168413029;8 2 9 Jan. 9 ©89 18:35 0000 ACCURASSAY LftBS TEL705-568-8368 PAGE 02

ACCURASSAY LABORATORIES LTD. P.O. BOX 604 KIRKLAND LAKE. ONTARIO. CANADA P2N 3J5 TEL.: (705) 567-6343 President: Dr. GEORGE DUNCAN, M.S:.. f*, o., c ChcmiOnt.i, c. ChwiUKl. M.R.I.C. M.K.S.C., An.c.S.T. Certificate of Rnalysis Page: l ©*F© T,lle.ley Associates January 9 69 Steeplechafa-B Avenue Data: *- "- Aurora. Ontario L40-3G6 Vork Order # ,- 881524 rrojsct :

Accuraesay # CuotoraQr # Pulp weight Subsample Bead weight gran gran rag 163600 IhSOOl 771.630 30,120 0.002 30.040 0.002 16,110 0.001 163601 155002 993,130 30.300 0,002 30.270 0,000 29.080 0,011 163602 155003 Sample missing

163603 IbbOOi 1228.230 30.340 0.001 30.180 0.005 0.340 0.000 163604 lf,5f)007 2155.830 30,230 0.000 30.040 0.000 26.480 0,000 163605 155008 1493.530 30.120 0.001 30.150 0.002 3.930 0.000 163606 15R009 S91.130 30.180 0,001 30.150 0.006 5.960 0.002 10360V 155011 1474.330 30.170 0.004 30.010 0,008 X^^TT^ 15.130 0.004

A j©© ^riAi^ r L nr r) ©\Ji©/. f V. r ^Mfifi.Tn" Pur: 4^Ly- j6#**Ae*H**r ORIGINAL U BY!XEROX TELECOPIER 7010 ; l- 9-89 6:37PM ; 705 563 8368-) A 1 684 1 3029; tt 3

Jan. 9 Q| 18:35 0000 ACCURASSAY LABS TEL705-568-8368 PAGE 03

ACCURASSAY LABORATORIES LTD. P.O. BOX 004 KIRKLAND LAKE, ONTARIO, CANADA P2N 3J5 TEL.: 1705) 567-6343 Dr. GEORGE DUNCAN, M.SC.. ci. D . c. CHn IOM.I. c o*v IU.K.I. M.C.I.C M H.S.C.. A.R.C.S.T, Certificate of Analysis Page: 2 9A9K7 J. B. Tllslev Associates Dst*. January d 19 89 c H to 1 5 Steeplechase Avenue Aurora, Ontario L40-3G8 Vork Order # : 881524 Project i

Accuraesay # Customer # Pulp weight Subsample Bead weight gran gram mg - 163608 155012 1036.130 30,320 0.002 30,360 0.001 27.610 0.007

163009 Ibb013 1032.830 30.230 0.013 30,310 0.001 14.460 0.000

103610 Ibb015 843.030 30.090 0.003 30.290 0.001 31.600 0.001 163611 155016 1628.430 30.050 0.003 30.100 0.003 28 , 700 0.001

163612 155017 1052.530 30.280 0.002 30 . 330 0,008 37.860 0.001

163613 155018 1106.630 30.240 0.007 30.300 0.001 19.000 o.ooo 163GU IbbOlQ 1056.930 30.180 0.002 30.030 0.003 10.020 0.005

163915 1S5020 1070.030 30.280 0.000 ^ZrTr-^ 30.350 0,000 jXoS.W'^'x As^v 15 A W in 0.001 \3s*—— ^y\ ' L~./CrtA.Rl6RED\6\ ——— ~-—— iT\ s79 wfi Dr. G. Duncan SS v^ (fi , Q/ ^t/ \S\j WV\V '^X/*^ it.* \*?iK^X^ ^ ORIGINAL BY:XEROX TELECOPIER 7010 ; l- 9-89 6:38PM ; 705 568 8368-* 4168413029;** 4

l Jan. 94fc9 18:36 0000 flCCURRSSAY LPBS TEL705-568-B368 PAGE 04

ACCURASSAY LABORATORIES LTD. P.O. BOX 604 KIRKLAND LAKE, ONTARIO. CANADA P2N 3J5 TEL.: (7051 667-6343 President: Dr. GEORGE DUNCAN, M.S*., rt, n r. cum ton-.i. c c** IU.K *, M.Ci.e.. M R.B.C.. A.R c RT. Certificate of Analysis Page t 3

J, E, Tilslev Associatfis Dam- January 9 19 89 24268 fi Steeplechase Avenue Aurora, Ontario L4C-3G8 Vork Order # : 881524 Project f

Accurassay # Customer # Pulp weight Subsanpla Bead weight gran gran mg 163616 Jbb021 1847.630 30,360 0,024 30.030 0.017 24.740 0.019 363617 155023 1380.130 30.300 0,004 30,230 0.011 8.550 0.001 163618 155025 1575.530 30.250 0,001 30,060 0.005 16,440 0.001 163619 155026 1841.630 30.330 0.002 30.250 0.000 5.860 0.000 163620 155028 1746.230 30.370 0.000 30.100 0.000 1.140 0.001

. Per: ff

ORIGINAL ACCURASSAY LABORATORIES LTD. P.O. BOX 604 KIRKLAND LAKE, ONTARIO, CANADA P2N 3J5 TEL.: (705) 567-6343 President: Dr. GEORGE DUNCAN, M.SC., Ph. D., c. Chem (Ont.l, c. Chem (U.K.), M.C.I.C., M.R.S.C., A.R.C.S.T. Certificate of flnalysis J. E. Tilsley Associates Page #1 5 Steeplechase Avenue Ontario - 01/23/89 19 Work Order 881524

Assay results are as follows:4 SAMPLE NUMBER Ag Al As Au Ba Bi Accurassay Customer ppm tt ppra ppm ppm ppm 163607 155011 1.2 7.39 107 ND 124 5 163608 155012 1.2 6.69 132 ND 44 ND 163611 155016 1.2 6.71 119 ND 81 3 163616 155021 1.3 7.08 78 ND 164 ND 163618 155025 1.4 3.71 86 ND 39 4 Ca Cd Co Cr Cu Fe tt ppm ppm ppm ppm tt 163607 155011 0.89 2.3 29 96 254 5.14 163608 155012 1.16 1.1 25 115 91 3.65 163611 155016 4.66 1.2 21 113 71 3.46 163616 155021 0.50 1.3 67 46 572 3.94 163618 155025 4.40 1.7 44 44 226 6.19 K Mg Mn Mo Na Nl tt tt ppm ppra tt ppm 163607 155011 0.34 3.15 390 5 0.67 117 163608 155012 0.31 1.91 355 3 1 .08 113 163611 155016 0.82 1.55 731 3 0.80 92 163616 155021 0.21 1.79 460 7 0.34 87 163618 155025 0.85 1.56 514 4 0.74 64 P Pb Pd Pt Sb Sn tt ppm ppm ppra ppm ppm 163607 155011 0.03 88 ND ND ND 13 163608 155012 0.04 77 ND ND ND 7 163611 155016 0.06 104 ND ND ND 10 163616 155021 0.03 63 ND ND ND 4 163618 155025 0.04 59 ND ND ND 7

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ORIGINAL ACCURASSAY LABORATORIES LTD. P.O. BOX 604 KIRKLAND LAKE, ONTARIO, CANADA P2N 3J5 TEL.: (705) 567-6343 President: Dr. GEORGE DUNCAN, M.SC., Ph. D., c. Chem (Ont.i, c. chem (U.K.), M.C.I.C., M.R.S.C., A.R.C.S.T. Certificate of flnalysis J. B. Tilsley Associates Page #2 5 Steeplechase Avenue urora, Ontario Date: 01/23/89 19 2525^40-308 Work Order 881524 Assay results are as follows: SAMPLE NUMBER Sr u W Zn Accurassay Customer ppm ppm ppra ppm 163607 155011 54 ND ND 128 163608 155012 49 ND ND 87 163611 155016 63 ND ND 85 163616 155021 27 ND ND 73 163618 155025 85 ND ND 65

Note: ND is not detected

LF-30 Per:

ORIGINAL a.12191 BEN NEVi s 900 Mining Lands Section 3rd Floor, 880 Bay St. Toronto, Ontario M5S 1Z8 Phone: (416) 965-4888 Your file: W8908-006 Our file: 2.12191 March 15, 1989 Mining Recorder Ministry of Northern Development and Mines 4 Government Road E. Kirkland Lake, Ontario P2N 1A2 Dear Sir: j w* 80 889 l Re: Notice of Intent dated February 23, 1989 f Geophjosical (Magnetometer fi Electromagnetic) l Survey on Mining Claims L 1015657 et al in *- ^SJH^EDJ Ben Nevis Township

The assessment work credits, as listed with the above-mentioned Notice of Intent, have been approved as of the above date. Please inform the recorded holder of these mining clains and so indicate on your records. Yours sincerely,

W.R. Cowan Provincial Manager, Mining Lands Mines St Minerals Division RM:eb Enclosures cc: Mr. G.H. Ferguson cc: Regal Goldfields Ltd. Mining and Lands Coronissioner 1100-350 bay St. Toronto, Ontario Toronto, Ontario M5H 2S6 cc: Resident Geologist Kirkland Lake

/y-ir-i^ "i"" i lobiiuiuai /-vasei VVI Northern Development ,., . . ,. "Iirom 2.12191 LjjJ and Mines Work Credits 5at* 1 Mining Recorder^ Report of Kario Feb 20, 1989 pfe9oVo06

Recorded Holder RFRAI GOLDFIELDS LIMITED Township or Ares BEN NEVIS Type of survey and number of Assessment days credit per claim Mining Claims AsMCsed Geophysical on L 1015657 to 684 inclusive 1015686 to 689 inclusive

Inriurert polarization fl"V©

Other flays

Section 77 (19) See "Mining Claims Assessed" column

Geological rtay.

Rfinrhemiral riayi

Man days Q Airborne Q

Special provision ffi Ground Q?)

Q Credits have been reduced because of partial coverage of claims. Q Credits have been reduced because of corrections to work dates and figures of applicant.

Special credits under section 77 (16) for the following mining claims

10 days Electromagnetic 10 days Magnetometer L 1015656

No credits have been allowed for the following mining claims [X] not sufficiently covered by the survey Q insufficient technical data filed

L 1015655 1015685

The Mining Recorder may reduce the above credits if necessary in order that the total number of approved assessment days recorded on each claim does not exceed the maximum allowed as follows: Geophysical - 80; Geologocal - 40; Geochemical - 40; Section 77(19) - 60.

828 (85/12) Instructions: Please type or print. If number of mining claims traversed exceeds space on this form, attach a list. Geochemical and Expenditures) W8903* Note: - Only days credits calculated in the "Expenditures" section may be entered in the "Expend. Days Cr." columns. Do not use shaded areas below.

M6H Survey Company i Oat* of Survey (from At tp) TtotaT Miles of line Cut • y . 11 MB *- l ' t- OO E .Ta-s L&V 4 ASSOCIATES Ijo "".pSy.l.Mo.oft i At. ij 3ft9P l ~ ffiDay~~ j LZMiT | VrT \ ^-—— Name and Address of Author (of Geo-Technical report) ETTi-Si-ErVr' S AV&, ftvtZ&G^, dff. Credits Requested per Each Claim in Columns at ri gnt Mining Claims Traversed (List in numerical sequence) Special Provisions Mining Claim Geophysical Days p*r Expend. Mining Claim Expend. Claim Prefix Number O&ysCf. Prefix I Number D^ayt Cr. For first survey: - Electromagnetic Enter 40 days. (This 10 /0/5655 includes line cutting) - Magnetometer to) li/oifi^Z^ - Radiometric For each additional survey: using the same grid: IQlS&bQiL - Other Enter 20 days (for each) IQIS&8I Geological Geochemical IOI.5&&CN Man Days Days per Geophysical Claim l__ Complete reverse side - Electromagnetic ajfid enter total (s) here 101548S*./.—. Magnetometer 10/5 ladiometric 10I5MT li )ther lirJ 1015665 ^ JAN 8 1989 Geo! igical

G*O( lemical

.irborne Credits . \ f 1 Days per ^ "-UECEH D Claim Note: Special provisions Electromagnetic j credits do not apaly^ JO/5 to AirbcjrnJ- ^rvf&©sy Worn.,., Radiometric lots l*©/©

Type of WoVV Performed 10/5

Performed on Oaim(t)

Calculation of Expenditure Da y t Credits HI Total Total Expenditures Days Credits i /Q667? r

S -i- 15 s Total number of mining claims covered by this Instructions fCDO't O* \\Ofk Total Days Credits may be apportioned ai the claim holder©s choice. Enter number of days credits per claim selected For Office Use Only in columns at right. Total Os vi Cr-iDa, Reco Reco ^ s ig^q . jAts, ^ ! ApMOved ft Recorded Branch Dirtr.tor ~~

Certification Verifying Report or Work l hereby certify that l have /personal and intimate knowledge of the facu set forth in the Report of Work annexed hereto, having performed the work or witnessed tame during and/or after its completion and the annexed report is true. Name and Pottal Addrett of Perton Certifying Ministry of -Geochemical Northern Development Technical Data Statement and Mines ntario File—

TO BE ATTACHED AS AN APPENDIX TO TECHNICAL REPORT FACTS SHOWN HERE NEED NOT BE REPEATED IN REPORT TECHNICAL REPORT MUST CONTAIN INTERPRETATION, CONCLUSIONS ETC.

Type of Survey(s) c 'e——————d ——— i ———3 —————————————————— Township or Area /3tn ^e v/s MINING CLAIMS TRAVERSED Claim HolHer(s) RftJtaa A ——————————————————1 (yt W -frc Id J i iNmi' ^ ————————————————————— ^fc( List numerically

Survey Company Jei*v,e.j E. f.'/C/Cv and nStoduseS Ltd, l - JOI5&57 (prefix) (number) ^ Author of Report R. Mne/ller J r.'/j/Cy L - lcxs 45^ Stapkd,ft!B /V^e /\Lrcra OjJf mo- 3fr8 Address of Author ** L ~ Jois 65y Covering Dates of Surv ev Af*/ 15, M?8 - Dec. l/ . tfltf (linecutting to office) ^ -. /0/5 b&Q Total Miles of Line Cut Tr Am L - /6/s ^^( SPECIAL PROVISIONS DAYS L - '^5 az J CREDITS REQUESTED n^u...:..! *""ta

^o *^ —Electromagnetic -^-M, ,,... ,..,,,.4,,,...... :.....J^5...M^,,.,....J ENTER 40 days {inc udes -y f. line cutting) for first — Magnetom^tT ,...,..^T ^ survey. — Radi^mpfir ,.,.,, ...... ,,...... ,.,,, j ENTER 20 days for i:ach —Other L - /C"(5 66^ a additional survey usit1 K Geological same grid. L - /0(5 4^7

AIRBORNE CREDITS (Special proviiion credit* do not apply to airborne surveyi) L - |0i5 ^68 Magr""t"TTt''t*"''. . M,, .Fl^rtr^rnagnptir , ,. RaHinm^trir (enter days per claim) *~ L ~ /op ^f n.™. F*bfM,v .mM.™.., L *~ lolS 47O \ umi 4M^mXuthor^of. 5?poj[t or Agent L - /a/5 67/ L - lo^67Z Res. Geol. Qualifications L - lo^^ Previous Surveys File No. Type Date Claim Holder L -yo/ 5 b?*/

L - 1015 676 jL - lOtStTI L - J^S^7^ TOTAL CLAIMS ^

837 (85/12) r J

J rt WING- t L-

L - lois L - L - L -lo|5 L -

L -/OS 659 INDUCED POLARIZATION GRAVITY ELECTROMAGNETIC RESISTIVITY MAGNETIC r? t* H W W *S hs S ST w O O lInstrument o Stationinterval i^a M t^ rt B3 NS^ 3 w ETJ !^ rt rt " Ci rt w Vi Instrument 2. 2. rt" ^ (U i"* ^* rt Sraleronstant s 1 Arrurary' Instrument*JCi StationsNiimhprnf rt 3 S3- ? Correctionsmade .——LiContourinterval GROUNDSURVEYS- VI C" O \AccuracyScalecon— CA "t 3 O S accuracy,—Elevation r*- c r locationBaseStation StationBasecheck-in correctionmeDiurnal S 3 3 2 CL 3 SB measured.Parameters 3 G- "* D. D. sM s S. rt rt rt o' •-l 25 S! i-*-S ^ lertroHe CB a " D 3 W Orq g 2. si g 1" I -UiBase Integrationi— time—Off - o' IQ Delaytime.— !rcr. rt rt 3 |C C. 1 | D- M o" S^ 3 5' *"* " ^ ^ ^^ 1 LA ST ^^- tu5" 9- BL JJ o .r ^ 3" r* T 5 ' o. x o" i i \^^j o rt 3 \ T^ 5 i- r•*- xa ? -? o *-* J 09 o O KJ c * s. O t-J 3 ./W en^ -v — I 3 transmitter o uff \ UsJ -\ ^ ^ Sw pjo 3 O XT- 1 0 M S o a *- V C ™*^ m o- w 1 i N - Vi CB J? ™ r- fv T) o •s e (si O l Q. H SI-. E" VA1 _ 2. ^~ ^ H •3* o' ^^ o. Pi ^. * •y T~ ?*- co ( 51 O c C 5s 7 ' ~TT : r (f o" CJ L •" * r*o - -z. O* tZl -i cr 5" c \ w cr rt 3 rt ^. o i' n t~"^ D fi G ? •S S" 5(3 *^3 ^15 G to ^ ST P hi "l *f 2. o S 2 Ci rt rt VJ 3 -* ^ H wrt -gC -gC ..^ _ '"JO 2 > rt rt ^^ 3 B i S 0 0 IT D 0 S* 2 V*1 VB^ 3* O 5' ^ -vr D 9 M-* in CA i o V i. < f* -•j O Ir •~-^ 0 S, ? 51 ~J^ \3 (T" ~^ D S I-Q ta

r* B O 5" rt *- THF TOWNSHIP or Tannahill Twp.(M.390) BEN NEVIS

i L™ - 4-rl U U M tt--- II VU M i, OF COCHRANE

t L l L , L IWBBO* UMBO*. lOUWO ' IQIBBI LARDER LAKE , MINING DIVISION "

104*202 - ei- - . \ ——|W4*20T *r— - ———— k12 — ^ t —— ^ ——— —— T—— —— ~*~ ' —— ~t ' L SCALP t;!NCM 40 CHAINS'

LFGENl) ~t~T•*44 . I04**43 [ft P/'Tf.NTl-U i AM* • V.NU ^ I04***l— -Jc— -r—. -ft——fr——-. © l OCATKn [ ANu ne 4.MO n. " - J UF ()L r;UPATinN O , J S !.1NI Y M fr; if ACF :' :r ,' i i ON) ' " ~""~ "" ~ "

T - -j- ~ n - "~ 5"914

. ~r"-\r- .....^ -U .---—— 4 # f fa

r&J/i/rfr^ , O NOTES , —""* * ~ ' A. ™ I**~ 400* Surface rights reservation olopfc the shores of^ all lakes and rivers , . — -*— -J-— -- — —T— —V

SAND AND GRAVEL

QUARRY PERMIT

.04*2*, .04*2.7 .., —li-- - -~ — — — -— AflEAS WITHDRAWN FROM plSPO|lT!ON L ; ^p^:^^^^^ """"" M.R.O. - MINING RIGHTS ONLY S.R.O.-SURFACE RIGHTS ONLY " ^M.*S. - MINING AND SURFACE RIGHTS ,* " — — ^ OBKription - Order No. Oat* x tiispoMtion' Fjia

""•y l L.OT/1 ^ ' L " R Ste 36/80 'w'5/83'. P8/6/83 MSS ^'-'-W ^ hV A l "^ ' NJ4M (5)SURFACE AND MININQ RIGHTS WITHDRAWN FROM x STAKING SECTION 36 ORDER NPW-6/85 DAT^D , ;

\___ j —— •"—' J -' IV^VEVF , rw^VCK^ l i

* '*,1.*. 1.1.1.....,.. i t, URFACE a MINING RIGHTS WITHDRAWN FROM -- -K.— -4-,— STAKING SECT. 36, ORDER W 01/8'SL

JOH*. JACKSON 1911 '2 M Daughter Lake 3 M * T •r , r N" M.325 DATE OF ISSUE Katrine, Twp. (M.357) ONTARIO ' v, ;* 32D0SSE®e39 2.12191 BEN NEVIS MINITRY OF-NATURAL RESOURCE5 t SURVEYS AND MAPPING BRANCH 2.12191

NORTH SHEET REGAL GOLDFIELDS LIMITED BEN NEVIS PROPERTY BEN NEVIS TOWNSHIP, LARDER LAKE MINING DIVISION ONTARIO KEY MAP SURFACE GEOLOGY PROPERTY Thunder JS -'\^ Bay JAMES E. TILSLEY a ASSOCIATES LIMITED

LAKE SUPERIOR

1015655 METRES

Scale l ; 2500

LOCATION MAP

LEGEND

MAFIC INTRUSIVES

FELSIC VOLCANICS

INTERMEDIATE VOLCANICS

PROPERTY CLIFF OR SCARP 1015656

CA PTA lN

LITTLE MISEMA LAKE C

PUSHKIN

LAKE

FIELD WOV2.K BY R-P.MUELL.ER B. Se. NOV. - DEC !999 LITTLE

MISEMA LAKE

KEY MAP

^PROPERTY

Kirkland Lake

8303'~'"^2lSlj 83Q| 8304^*1*^^ tr p

LOCATION MAP

PROPERTY

KATRINE TWP.

2 3 Km

2.12191

SOUTH SHEET L E G E N REGAL GOLDFIELDS L MITED MAFIC INTRUSIVES BEN NEVIS PROPERTY BEN NEVIS TOWNSHIP, LARDER LAKE MINING DIVISION FELSIC VOLCANICS ONTARIO INTERMEDIATE VOLCANICS SURFACE GEOLOGY

CLIFF OR SCARP JAMES E. TILSLEY 8 ASSOCIATES LIMITED

METRES

32D05SE0839 2.12191 BEN NEVIS 220 Scale l : 2500 FIELD WOKK &Y R. P. MUELLER MOV-DEC. 1988 Of J PONTIAC TWP LITTLE

MISEMA LAKE

CONTOUf^e COMT1NUE ON NOr2.TH

KEY MAP

J PROPERTY

LAKE SUPERIOR

"*10 1

O 100 200 Km DETAILED L l AREA

LOCATION MAP

PROPERTY

KATRINE TWP.

2 3 Km

DETAILED AREA

2.12191

SOUTH SHEET REGAL GOLDFiELDS LIMITED

RELATIVE VALUE OF EARTH'5 BEN NEVIS PROPERTY MAGNETIC FIELD IN 6AMMA6 BEN NEVIS TOWNSHIP, LARDER LAKE MINING DIVISION ( TOTAL FIELD) ONTARIO

&A6E FIELD- GAMMA'5 - ONE MAGNETOMETER SURVEY IN^TKU MENTATION : FIELD UNIT:- eC\NTKex JAMES E. TILSLEY 8 ASSOCIATES LIMITED NUMBER 8507^54- STATION!-- 9C1NTKEX MP-3 6EKIAL NUMBER 6607255* IOO 200 300

CONTOUR INTERVAL - 1OO GAMMA'S METRES Scale l : 25OO

2.12191 BEN NEVIS 2-40

FtEUD WOK.K BV K. p. MUELLER 5-Se. NOV - DEC. NORTH SHEET REGAL GOLDFIELDS LIMITED BEN NEVIS PROPERTY BEN NEVIS TOWNSHIP, LARDER LAKE MINING DIVISION ONTARIO KEY MAP VLF-EM SURVEY NAA { 24-OkHz)- CUTLER, MAINE PROPERTY Thunder 7^-" - v^ JAMES E. TILSLEY S ASSOCIATES LIMITED Bay

LAKE SUPERIOR '

METRES

Scale l - 2500

DEC. 1988

LOCATION MAP

LEGEND

ORIENTATION VERTICAL IN- PHASE HORIZONTAL FIELD PEAK \ 5 ( 52-7;

VEK-TIGAL PROPERTY CONTOUia INTERVAL - \O 0/* IN

5CINTTZEX K3S- 2, SERIAL

LITTLE MISEMA LAKE

FIELD WORK. BY R. R. MUELLER -QJ l PONT~AC TWP