Independent Technical Report on the Geology and Recommended Exploration of the Ikutawara Gold Project, Northeast Hokkaido, Japan

Home , Geology of Japan

Prepared by Campbell & Associates for Sky Ridge Resources Ltd

Written by: H.J. Campbell, B.Sc., FAusIMM 3rd Floor, Graha Krama Yudha, Jl. Warung Jati Barat No.43, Jakarta 12760, Indonesia

Effective Date: 15 July 2016

TABLE OF CONTENTS

SECTION DESCRIPTION PAGE

1.0 SUMMARY...... 1

2.0 INTRODUCTION……………………………………...... 6 2.1 Issuer……………………..…………………………………… 6 2.2 Terms of Reference………………………..………..…..…… 6 2.3 Information Used……………………..…………………….… 6 2.4 Site Visit by Qualified Persons…..……..…………..…..…… 7

3.0 RELIANCE ON OTHER EXPERTS……………………..………… 7

4.0 PROPERTY LOCATION AND DESCRIPTION…….…………..… 7 4.1 Area of Property………..…………………………………..… 7 4.2 Property Location………………………..………..…..……… 7 4.3 Tenure……………………..………………………….……..… 8 4.4 Property Ownership………………………..………..…..…… 11 4.5 Royalties and Other Agreements…………………………… 12 4.6 Environmental Liabilities………………..………..…..……… 13 4.7 Permits and Obligations………………..…………………… 13 4.8 Other Significant Factors…..……..…………….…..…..…… 13

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY…………………..… 15 5.1 Topography, Elevation and Vegetation……………………. 15 5.2 Access……………………..………………..………..…..…… 15 5.3 Population and Transport……………..…..………………… 16 5.4 Climate…..……..……………………………………..…..…… 16 5.5 Surface Rights, Power, Water, Personnel & Potential Infrastructure Sites…………………………………………….17

6.0 HISTORY………………………………………….…………………… 17 6.1 Prior Ownership………..…………………………………..… 17 6.2 Previous Exploration…………………..………..…..……… 17 6.3 Historical Resource and Reserve Estimates…….……..… 20 6.4 Historical Production……………………..………..…..….… 20

7.0 GEOLOGICAL SETTING AND MINERALISATION……………… 22 7.1 Regional Geology…..…………………………………..……. 22 7.2 Local Geology…………………..………..…..……………..… 23 7.3 Property Geology…………………………………….……..… 25 7.4 Mineralisation……………………..………..……………….… 25

8.0 DEPOSIT TYPES……………………………………………..……… 31 8.1 Classification…..…………………………………..…………. 31 8.2 Rift Low Sulphidation Deposit Type – Main Features…..… 32 8.3 Ikutawara Mineralization Types…………………….……..… 35

9.0 EXPLORATION…………………………………………….……….… 35 9.1 Literature Searches………………………………..…………. 35 9.2 Ground Magnetic Survey…………………………………..… 36 2

10.0 DRILLING…………………………………..…………………….….. 36

11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 36

12.0 DATA VERIFICATION ...... 36

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING .... 37

14.0 MINERAL RESOURCE ESTIMATES ...... 37

15.0 - 22.0 SECTIONS NOT RELEVANT TO THIS REPORT

23.0 ADJACENT PROPERTIES…………………………………………...37

24.0 OTHER RELEVANT DATA AND INFORMATION ………………...38

25.0 INTERPRETATION AND CONCLUSIONS ...... 38

26.0 RECOMMENDATIONS……………………………………………… 39

27.0 REFERENCES…………………………………………………..…… 41

28.0 DATE AND SIGNATURE PAGE………………………………..…… 43

29.0 CERTIFICATE OF QUALIFIED PERSONS…………………..…… 44

LIST OF FIGURES

FIGURE NO. DESCRIPTION PAGE

Figure 1 General location of Ikutawara Prospecting Licenses ...... 8 Figure 2 License application flowsheet (SAMI, 2016) ...... 10 Figure 3 Ikutawara Prospecting License Applications ...... 11 Figure 4 Tectonic setting, earthquake and volcanic map ...... 14 Figure 5 Sakinzawa/Maruyama prospect showing NICAM exploration highlights 1992-93 (Austpac, 1993) ...... 19 Figure 6a Regional metallogenic districts and historical mine locations ...... 21 Figure 6b Ikutawara historical mine locations and simplified geology...... 21 Figure 7 Geology and structural setting of Hokkaido Island ...... 24 Figure 8 Ikutawara simplified geology ...... 26 Figure 9 Ikutawara district stratigraphy ...... 26 Figure 10 Derivation of low and high sulphidation fluids including arc and rift low sulphidation (Corbett, 2004) ...... 33 Figure 11 Schematic cross-section of a typical rift related epithermal low- sulphidation system (after Corbett, 2004) ...... 34 Figure 12 TMI images from ground magnetic surveys over the Ryuo- Maruyama-Akebono prospect areas ...... 37

LIST OF TABLES

TABLE NO. DESCRIPTION PAGE

Table 1 Historical Production within the Ikutawara Prospecting License Areas ...... 22 Table 2 Survey specifications of 2015 ground magnetic survey ...... 36 Table 3 Proposed Phase 1 Ikutawara Budget ...... 39 Table 4 Proposed Phase 2 Ikutawara Budget ...... 40

LIST OF PHOTOGRAPHS

PHOTO NO. DESCRIPTION

Photo 1 Logged coniferous and broad-leaved deciduous tree species ...... 15 Photo 2 Prolific bamboo grass development in immature forestry stands...16 Photo 3 Collapsed exploration drive at Ryuo mine workings ...... 27 Photo 4 Opaline-amorphous silica sinter with incipient micro-hydraulic fracturing and cross-cutting chalcedonic veinlets; Kitano-o Geopark ...... 28 Photo 5 Platy, lattice-textured quartz after calcite, indicative of boiling zones and potential metal deposition – Ryuo lode ...... 29 Photo 6 Chalcedonic quartz vein with aggregates of pyrite, marcasite, chalcopyrite, galena & tetrahedrite – Ryuo mine workings ...... 29 Photo 7 Banded drusy fissure-filling quartz vein breccia, with basement black shale wallrock inclusions – Saroma mine workings ...... 30

LIST OF APPENDICES

APPENDIX NO. DESCRIPTION

Appendix I Ikutawara Prospecting License Application Coordinates

1.0 SUMMARY

At the request of Sky Ridge Resources Ltd (“SRRL”), Campbell & Associates (“CA”) was commissioned to prepare a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI43-101”) technical report on SRRL’s Ikutawara Gold Project (the “Ikutawara Project” or the “Property”) in Japan.

CA has based this report on information provided by SRRL, third-party technical reports and other general website information, and a site visit.

Property Location

The Ikutawara Project comprises 38 contiguous Prospecting License application blocks (totaling 13,286 Ha) over historical gold-silver mineral occurrences. These are located in the Okhotsk district or Subprefecture in the Hokkaido regional administrative area or Prefecture (Province), Japan.

Ownership

In December 2014 Southern Arc Minerals Japan KK (“SAMJ”), a Japanese domiciled foreign investment corporation 100% owned by TSX-V (TSX Venture Exchange) listed Southern Arc Minerals Inc. (“SAMI”), applied for 38 prospecting licenses in the Ikutawara area of Northeastern Japan covering a region of known gold occurrences with a history of mining. On July 4, 2016, SRRL entered into an agreement with SAMI pursuant to which SRRL will acquire all of the issued and outstanding shares of SAMJ. In exchange for its ownership in SAMJ, Southern Arc will receive 50,000,000 pre- Consolidation common shares of SRRL. SRLL intends to complete a concurrent private placement financing, followed by a one-for-two basis share consolidation, with SAMI then holding approximately 49% of SRLL on a fully diluted basis. The transaction, which is a reverse takeover for Sky Ridge as that term is defined in the policies of the TSX Venture Exchange, is subject to a number of conditions, including shareholder and stock exchange approval.

Tenure

The 38 Prospecting License applications were submitted to the Japanese Ministry of Economy, Trade and Industry (“METI”) by SAMJ on December 4, 2014 and passed an advanced stage of examination and acceptance by METI on August 18, 2015. With this approval SAMJ has the ground reserved and is able to undertake low impact ground work such as geologic mapping and sampling in order to rank and prioritize its application areas. For more invasive exploration such as trenching and drilling, SAMJ must pass through a stakeholder consultation and review process, with METI in an intermediary role. Once approved this will lead to the issuing of Prospecting Rights which are valid for two (2) years and can be extended for two further two-year periods. Prospecting Rights can be converted into mining rights at any time should exploration results warrant advancing the Property to production.

Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Property is situated primarily over government or privately managed forestry concessions and lesser privately owned dairy farms. Coniferous forestry concessions are located on moderate to step hill ranges, ranging in elevations from 190 m to 707.8 m, whilst dairy farms occupy lower river valley areas.

The Property is easily accessed by good quality sealed roads from the regional cities of Abashiri and Monbetsu, about 1.0 hour’s vehicle drive. Alternatively, the area can be reached by railway with the Sekihoku trunk line running along the south and west edges of the Property. Within the Property, access is by sealed roads which terminate into a network of gravel and dirt forestry access roads.

Located in a humid continental climate, the Property has long, cold winters and cool summers. Because of seasonal snowfall and resulting access issues, the effective annual exploration work season is limited to the months of April to November.

Historical Mining and Exploration

The Ikutawara Project lies within the Central Kitami mining district situated along the north-south trending Monbetsu-Rubeshibe graben structure which is host to numerous epithermal mineral occurrences, historical mines and workings dating from the early 1900’s. The most notable deposit in the district is the Konamai deposit mined between 1915 and 1973 which produced a total of 2.1 Moz of gold at an average grade of 6.4 g/t. Recorded gold production from within the Property is in excess of 136,000 ounces, with the majority mined from sinterous and sub-sinter veins at Kitano-o. Bonanza gold grades (>20g/t) in the form of colloform-banded quartz-adularia±sulphide fissure veins were reported from the Kitano (MMAJ data incomplete, high grade stated as 20 g/t Au), Akebono (range <0.1-446.2 g/t Au, with 10.3% of samples >20 g/t Au) and Ryou (range <0.1-474.2 g/t Au; with 13.2% of samples >20 g/t Au) mine localities.

Limited exploration of trenching, drilling and exploration drives was conducted by miners in the 1912- 62 period. From 1986-94 Australian junior Austpac Gold NL in joint venture with Nishio Iwai Corporation (“NICA JV”) and later Mount Isa Mines Japan (“NICAM JV”) explored parts of the Ikutawara Project, with most prospect evaluation work focused on the Maruyama/Sakinzawa prospect. Prospect work culminated in drilling a number of scout holes across the inferred NNW and NNE structural trends, with intersections of intense silicification and stockwork veining assaying in the range of 3-6 g/t Au and 9-32 g/t Ag.

As part of a regional metallogenic study reported in 1990, Metals Mining Agency Japan (“MMAJ”) undertook regional geophysical surveys (gravity and airborne EM) and regional soil sampling over a large area including the Ikutawara Project area and also conducted prospect evaluation work at Maruyama (CSAMT geophysical survey, 4 lines totaling 4.4 km, and a single 300 m vertical diamond drillhole), Kitano-o (CSAMT geophysical survey, 13 lines totaling 13.6 km, and a single 700 m vertical diamond drillhole) and in the vicinity of the Ikutawara Mine (one vertical 500 m diamond drillhole).

Geology

The Property is situated on the back-arc side of the present Kuril volcanic arc, and is underlain chiefly by sedimentary rocks and basaltic rocks of Cretaceous to Paleogene age. Eocene to Early Miocene intermediate intrusives related to N-S magmatic arcs (including the Monbetsu-Rubeshibe Zone) intruded into the accretionary sedimentary rocks, whilst volcanic equivalents (andesite and rhyolite with subordinate amounts of basalt and dacite) unconformably overlie basement rocks. The 10 km wide Monbetsu-Rubeshibe graben hosts felsic rhyolitic volcanics and pyroclastic flow deposits and interfinger with terrestrial and marine sedimentary and volcaniclastic rocks. Dilational zones within ENE-WSW strike-slip faults and N-S tensional zones are often intruded by igneous dykes and accompanied by hydrothermal alteration, including metalliferous veins.

Mineralisation

The gold mineralisation at Ikutawara is classified as rift low-sulphidation epithermal. Epithermal systems present display:

1. sinter and hydrothermal breccias or hotspring deposits (Kitano-o, Ikutawara/Kyouei, Showa and Sakinzawa Prospects), 2. stockwork veins, and sheeted fissure veins (Ryuo, Akebono, Saroma-Taiho, Chitose, Taihoku and Rubeshibe Prospects).

Gold mineralisation is typically associated with quartz-chalcedony-adularia-sericite±calcite in silicified and veined or brecciated structures, including dark sulphidic material termed ginguro bands. Veins display cockade, crustiform-colloform banding, pseudomorphing (quartz after calcite indicative of fluid boiling zones) quartz textures typical of epithermal systems. Wallrock alteration comprises a silicified core, with outer mixed quartz-illite-smectite argillic assemblage. Mineralisation is associated with NE to E extensional and N-S tensional structural regimes, with bonanza grades (>20 g/t Au) historically mined at fault intersections, and/or along the N-S structural trend.

Exploration

SAMJ has completed a contract ground magnetic survey over the Akebono-Maruyama-Ryou prospect and a compilation of published exploration data and historical mining data for the Ikutawara Project.

QA/QC

Since SAMJ has yet to generate any field analytical data, data verification was not considered warranted. Since historical workings have collapsed and surface pits and trenches have been infilled by colluvium, transported soil and talus scree, no data verification was possible during the CA site visit.

Interpretation and Conclusions

“…Miocene gold-bearing quartz-adularia veins within the Central Kitami region is closely related to the felsic volcanism, both in time and space; mineralization shifted southward following the shift of volcanic activity southward” (Watanabe 1995). The more eroded Konomai gold deposit (2.1 Moz) gives good insight into the possibilities of what gold-silver mineralization may exist at depth below the Kitano-o, Akebono, Ryuo, Maruyama and other prospect areas. The known occurrences, such as Kitano-o, are considered high-level leakage above a potential Konomai-equivalent.

Of encouragement is the auriferous nature of near surface sub-sinterous veins (the majority of the paleo-geothermal systems are still present), the presence of lattice-textured quartz indicative of boiling zones (and associated metal deposition), a high-energy regime in formation of multi- generation quartz-chalcedonic veins, breccias and stockworks, and a Au20 g/t Au; Akebono 10.3% and Ryuo 13.2% from 382 MMAJ underground samples) from colloform-banded quartz-adularia veins within fault intersections or along N-S tensional vein structures as at Kitano-o, Akebono and Ryuo. Extensions of defined dilational mineralized structures both laterally and vertically are obvious.

Company Exploration Targets

SAMJ has highlighted the extension of the Akebono ENE lode structure, its intersection with N-S trending faults at Maruyama and extension of the Ryou NE lode structure as priority targets.

Hishikari lode analogies are valid with a similar geological setting including the presence of structural dome intersections of near surface competent-brittle basement rocks covered by more ductile volcanics and volcaniclastics, surficial gold mineralization associated sinter/eruption breccia features, well-formed colloform banded fissure vein systems and associated alteration assemblages.

Whilst high-grade fissure veins are deemed priority targets, the potential for sufficient concentrations of stockwork veining in hanging wall as an open pitable bulk tonnage target should not be ignored.

Recommendations

SAMJ has proposed an initial four (4) month exploration program and budget of US$1.05 million focused on the advancement of the Akebono, Ryuo and Maruyama/Sakinzawa- Kitano-o prospect 3

areas, which are considered at this stage the highest priority targets. Field activities are two-staged; Phase 1 low impact activities during the Prospecting License Application stage, and Phase 2 more invasive activities (drilling and trenching) once the Prospecting Rights Licenses are awarded.

The work programs include:

Phase 1: Low impact exploration (3 months)

 Acquisition of remote sensing satellite and airborne imagery.  Detailed BLEG (Bulk Leach Extractable Gold) sampling of 2nd to 5th order stream and tributaries.  Detailed geological mapping (lithology, alteration, mineralisation and structural features) of stream drainages, ridges, access roads and, where safe, historical mine workings.  Rock sampling of stream float, outcrop exposures (grab and channel sampling) and systematic ridge and spur sampling of soils.  20 km of grid-based ground CSAMT resistivity mapping.  Spectral analysis of rock samples pertaining to alteration mapping.

Details for the estimated budget for the three-month program are presented below in Table 3. The budget does not include any overhead costs.

Table 3: Proposed Phase 1 Ikutawara Budget Ikutawara Budget Items US$ Technical skilled personnel 323,500 Consultants 10,800 Travel 9,000 Accommodation and Meals 28,900 Vehicle rental 13,200 Fuel and oil 4,500 Field supplies and expenses 7,500 Ground CSAMT geophysical survey 34,000 Assaying 34,200 Spectral sample analysis 3,000 Cartage and shipment costs 3,500 HSE 2,100 Hokkaido representative office (rental, G&A) 9,650 Miscellaneous costs 10,800 Total 494,650

Phase 2: Scout Drilling (1 month)

 Scout drilling (6+ diamond holes totalling 1,200m) of defined targets using two man-portable diamond drill rigs

Details for the estimated budget for the one-month scout drilling program are presented below in Table 4. This budget includes provision for the drill programs, logistical support for the programs, consumables, interpretation of data and the expansion of the number of personnel. The budget does not include any overhead costs.

Table 4: Proposed Phase 2 Ikutawara Budget Ikutawara Budget Items US$ Technical skilled personnel 101,550 Consultants - Travel 3,000 Accommodation and meals 17,400 Vehicle rental 3,050 Fuel and oil 10,350 Field supplies and expenses 7,000 Diamond drilling running cost 360,000 4

Drill rig mob and demob costs 20,000 Assaying 16,800 Drilling access, site preparation, site rehabilitation 4,000 Cartage and shipment costs 3,500 Surveying and communications 1,500 HSE 500 CSR (Landowners and local government liaison 2,000 Hokkaido representative office (rental, G&A) 3,150 Miscellaneous costs 2,800 Total 556,600

Phase 2 activities are contingent on the granting of Prospecting Rights by METI and a positive outcome from Phase 1 exploration activities.

CA considers the budget reasonable for the work planned, and sufficient to achieve the planned objectives.

2.0 INTRODUCTION

2.1 Issuer

This report is an independent technical review of historical exploration and mining activities, together with planned work programs and budgets for the Ikutawara Gold Project the (“Ikutawara Project” or the “Property”), located in northeastern Japan.

In December 2014 Southern Arc Minerals Japan KK (“SAMJ”) a Japanese domiciled foreign investment corporation 100% owned by TSX-V (TSX Ventures Exchange) listed Southern Arc Minerals Inc. (“SAMI”), applied for 38 prospecting licenses in the Ikutawara area of Northeastern Japan covering a region of known gold occurrences with a history of mining. On July 4, 2016, SRRL entered into an agreement with SAMI pursuant to which SRRL will acquire all of the issued and outstanding shares of SAMJ. In exchange for its ownership in SAMJ, Southern Arc will receive 50,000,000 pre-Consolidation common shares of SRRL. SRLL intends to complete a concurrent private placement financing involving the issuance of 25,000,000 pre-Consolidation common shares at a price of $0.20 per share, for gross proceeds of $5,000,000. Following completion of the acquisition and the concurrent financing, SRLL intends to consolidate its share capital on a one-for- two basis. Southern Arc will then hold approximately 49% of SRLL on a fully diluted basis.

The transaction, which is a reverse takeover for Sky Ridge as that term is defined in the policies of the TSX Venture Exchange, is subject to a number of conditions, including shareholder and stock exchange approval.

2.2 Terms of Reference

At the request of Dr. Michael Andrews (Director & COO of SRRL), Campbell & Associates (“CA”) was commissioned in June 2016 to prepare an Independent Technical Report on the geology and recommended exploration within the Property. This included an assessment and review of proposed exploration work programs and budgets. The report also highlights other historical mining areas of interest which are located within the same geographic district as SAMJ’s application areas, and share the same style of epithermal gold-silver mineralization.

SRRL intends that this report be used as an Independent Technical Report as required under Part 4 “Obligation to File a Technical Report” of Canada’s National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI43-101”).

At SRRL’s request, the scope of CA’s inquiries and of the report included the following:

 Site visit;  Review related technical reports and exploration databases, the majority of which have been translated from Japanese;  Complete NI43-101 Independent Technical Report

2.3 Information Used

The principal sources of information used to compile this report comprise:

 Translated technical reports and data variously compiled by SRRL and its partners or consultants;  Publicly available information;  Site visit undertaken by Mr. Hamish Campbell.

SRRL has warranted to CA that full disclosure has been made of all material information in its possession or knowledge and that such information is complete, accurate and true to the best of its knowledge. None of the information provided by SRRL has been specified as being confidential and not to be disclosed in this report. Readers of this report must appreciate that there is an inherent risk of error in the acquisition, processing and interpretation of geological and geophysical data.

Additional relevant data was derived by CA from a number of sources as listed under “References” (Section 27) of this report.

The results and opinions outlined in this report are dependent on the aforementioned information being current, accurate and complete as of the effective date of this report or as of dates indicated within this report, and the assumption that no information has been withheld which could impact the conclusions or recommendations herein.

2.4 Site Visit by Qualified Persons

The review of historical mines and prospects within the Property was conducted by Mr. Hamish Campbell. Mr. Campbell visited the Property from June 25-27, 2016. The afternoon of the 25th was spent reviewing source databases, whilst the 26th involved field inspection of the vein systems that were historically mined, inspecting outcrop, topography and regional structures.

Mr. Campbell has sufficient experience relevant to the epithermal style of gold mineralization and deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (Australia), and as a Qualified Person as defined in NI43-101 (Canada).

Mr. Campbell is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr. Campbell is the principal of Campbell & Associates of Jakarta, Indonesia.

3.0 RELIANCE ON OTHER EXPERTS

CA has not relied on reports, opinions or statements of legal or other experts who are not Qualified Persons for information concerning legal, environmental, political or other issues and factors relevant to this report.

4.0 PROPERTY LOCATION AND DESCRIPTION

4.1 Area of Property

The Ikutawara Project comprises 38 contiguous blocks over historical gold-silver mineral occurrences. The combined 38 blocks comprise an area of 13,286 hectares.

4.2 Property Location

The Property is located in the Okhotsk district or Subprefecture (Figure 1), in the Hokkaido regional administrative area or Prefecture (Province), Japan. The Property is bounded by UTM coordinates 697000-715000mE and 4852000-4875000mN based on Sheet No. 54 of the Traverse Mercator Projection World Geodetic System WGS84.

Figure 1: General Location of Ikutawara Prospecting License Applications

4.3 Tenure

Mining Tenure - General

From 1950 until January 21, 2012, the Ministry of Economy, Trade and Industry (“METI”) under the Mining Act No. 289 issued mining rights on a “first to file” basis. It did not provide for any minimum standards that required applicants to provide financial and technical capabilities. Exploration rights were subject to a two-year time period, but exploitation rights could be held for up to 20 years.

The Mining Amendment Act implemented on January 21, 2012 requires that “….the applicant must demonstrate that it has: (i) the necessary “financial basis”, for example, the applicant must show it has sufficient funds and certainty of funding to conduct the mining businesses; (ii) the necessary “technical capability”, for example, the applicant must demonstrate that it has the technical capability to conduct the mining businesses, including organization and structure, business history with the 8

primary technicians; and (iii) the necessary level of “social credibility”, for example, the applicant must demonstrate that it has no relationship with anti-social groups such as crime syndicates, it has not violated criminal laws or other relevant laws, and it has no material disputes with its investors.

In addition to the requirements outlined above, there is an additional and more comprehensive requirement. This comprehensive requirement allows the government to deny permission for mining rights to an applicant where it has been determined that granting the rights would hinder the promotion of public interest from the viewpoint of stable supply of minerals. More specifically, the requirement is that the mineral resource development cannot be ‘extremely inappropriate’ in light of domestic and foreign social and economic circumstances, nor can it be likely to hinder the promotion of public interest. This permission criteria requirement overrides the others and allows the government to deny an application for mining rights even though the other permission criteria requirements have been satisfied…” (Davis ILPP, 2012).

“…This new permission system will give METI much more control over any exploratory activities and a wider discretion to limit the amount and type of activities that are undertaken…” (Chance, 2012).

The applicant must be a Japanese registered corporation (national or foreign-owned) or individual. “…The application requirements and review process are very clear and straightforward, as outlined in the flow chart in Figure 2. When the application is lodged, METI informs the applicant if there are overlapping existing rights, but not whether there are other applications in process. Applications cannot be lodged over top of existing rights, and METI would ask that the application boundaries be modified to avoid conflict in such a scenario. Two applicants can apply for the same open ground, however, in which case the applications would be considered on a first come first serve basis.

The first step in the process is a METI review to confirm that all required information has been provided. The application requires a range of information, including the technical and financial capability of the applicant to carry out the planned exploration programs. Once METI accepts the application, the applicant has sole rights to that land until the application is dropped or rejected. Once the application has been accepted, effectively reserving the application area until the multi-step process of government consultation and review is complete. At this point the applicant is also allowed to undertake low impact ground work such as mapping and sampling in an effort to gain additional information about the application area. As additional knowledge is acquired, the applicant can “rank” its applications and push for the granting of higher priority applications.

In order to undertake more invasive exploration such as trenching and drilling, the application must pass through a consultation and review process. METI advises stakeholders of the application and facilitates the consultation process, seeking information and participation from the applicant as required. If approved this triggers the final permitting review process that leads to the issuing of Prospecting Rights. Prospecting Rights are granted for two years, and can be extended for two further two-year periods, effectively allowing Prospecting Rights to be held for six years. The Prospecting Rights are subject to a tax, payable annually in advance. Prospecting Rights can be converted into mining rights at any time should exploration results warrant advancing the Property to production.

The prospecting and mining rights are administered as a national function. METI has offices in each prefectural capital, and the offices include a mining section charged with controlling the activities within each prefecture….” (SAMI, 2016).

Figure 2: License Application Flow Sheet (SAMI, 2016)

Tenure - Ikutawara

The 38 contiguous Ikutawara Project License Applications were submitted by SAMJ on December 4, 2014 and passed an advanced stage of examination (Stage 3) by METI on August 18, 2015. Supplementary information pertaining to the Business Plan (Stage 4) was submitted to METI on April 5, 2016.

The contiguous blocks cover an irregular oblong shaped region of 27.5 km along its central axis and a variable width of 0.0-9.5 km, with an area of 13,286 Ha.

Individual concession coordinates and their relevant METI assigned coding are shown in Figure 3 and detailed in Appendix I.

Figure 3: Ikutawara Prospecting License Applications

The tenements status has not been independently verified by CA.

4.4 Property Ownership

The Ikutawara Project is held under the Japanese foreign investment company SAMJ, which is 100% owned by SRRL. SAMJ was recently a subsidiary of SAMI, but was vended into SRRL in a reverse takeover transaction. In exchange for its ownership in SAMJ, Southern Arc will receive 50,000,000 pre-Consolidation common shares of SRRL. SRLL intends to complete a concurrent private placement financing, followed by a one-for-two basis share consolidation, with SAMI then holding approximately 49% of SRLL on a fully diluted basis. The Property covers mostly government or privately managed forestry concessions, with lesser privately owned areas, and as such SAMJ must go through a consultation and review process. The majority of SAMJ’s consultation is with government and forestry agencies, as well as engagement with local town councils. METI has

advised stakeholders of SAMJ’s Prospecting License applications and is facilitating the consultation process, seeking information and participation from SAMJ as required. To date no roadblocks in the consultation and review process have occurred. With the Stage 3 approval of the Property, these areas are now reserved for SAMJ. SAMJ can now access any areas of the concessions and conduct low impact exploration work including geologic mapping, ground and airborne geophysical surveys, surface rock sampling (not trenching), stream sediment sampling, etc. Once the approval process of the Company’s business program has been completed and Prospecting Rights granted, the Company can access all areas and conduct invasive exploration activities, such as trenching and drilling, as per the approved business plan.

The historical Kitano-o mining area has been designated as a Prefecture Geopark, but SAMJ has been informed that prospecting within this area will not be withheld.

Aside from the approved business plan there are no apparent METI guidelines that stipulate what actions must be met by the Company during the two-year Prospecting Rights period. SAMJ intends to submit periodic activity reports to METI and keep up regular dialogue through informal meetings. This is part of the “good faith” approach as stipulated in the Mining Act.

In order for the Company to extend the Prospecting Rights period it must have submitted detailed annual reports of its exploration progress and analysis, financial expenditure and reasoning (with an appropriate business plan) for the requested extension period. Upon submission of the application, METI has three months to complete its examination of the Company’s application. Until the application has been officially rejected by METI it is still considered active.

“…Under the new framework, the Minister can impose additional conditions to a Prospecting/ Mining rights license and revoke these rights if the entity does not fulfil an additional condition or where the activities fail to conform the standards prescribed by METI decrees. If an entity carries out investigative activities without obtaining a Prospecting/Mining rights license or violates the additional conditions to the rights, the Minister may suspend the relevant activities, remove facilities or items used in conjunction with the activities, or restore the land to the state as it was prior to the commencement of the activities….” (Nishimura & Asahi, 2011).

4.5 Royalties and Other Agreements

Entities or individuals that carry out mining activities under Mining rights are required to pay central taxes (including income tax and other centrally administered taxes, as well as import / customs duties), non-tax state revenue (principally royalties and exploration contributions) as well as regional taxes and retributions.

There appear to be no royalties (other than the mandated government royalties under the Mining Act for any future production), back-in rights, payments, or other agreements or encumbrances on the Property.

Fees applied by METI in the Prospecting License Application and Prospecting Rights periods include:

1. Lodging of Prospecting License application: JPY71,000 per block (max. 350 Ha per block).

2. Upon registration of the Prospecting License Application or conversion to a Prospecting Right License: a fee of JPY 90,000 per block.

3. For any Prospecting Rights granted, an annual prospecting fee of JPY 20,000 per hectare is payable to the local Prefecture government.

4. Application for extension to a Prospecting License period: examination fee of JPY 42,000 per license block.

Foreign ownership in Japan is allowed subject to the restriction that to lawfully operate, at least one director or representative of a foreign company must be present in Japan.

4.6 Environmental Liabilities

SAMJ’s applications largely cover state or privately managed forestry concessions, which require prior consultation and approval of the business plan from stakeholders prior to issuing the Prospecting Rights. Details on standard operating procedures that the Company will employ in regards to environmental aspects were addressed in the business plan submitted to METI.

Under the Mining Law of Japan, the holder of the Mining Right “at the time of occurrence of the actual environmental damage” shall be responsible for such damages. Consequently, SAMJ will have no environmental liability for environmental damages related to historical mining activities which occurred prior to SAMJ acquiring the Property.

4.7 Permits and Obligations

No permits other than the approved Prospecting License Application or subsequent Prospecting Rights are required to conduct exploration programs.

At the time of the Reporting Date, SAMJ had previously received verbal METI approval on August 18, 2015 to commence low-impact field activities, whilst its application for Prospecting Rights was still under consideration by METI.

4.8 Other Significant Factors

Social and Community

It is unlikely that the Company will be given access to town-water catchment areas. The matter would be decided in the stakeholder consultation and approval process.

Climate

Because of seasonal snowfall and resulting access issues the effective annual exploration work season is limited to the months of April to November.

Wildlife

Brown bears or higuma in Japan are commonly found throughout forested areas in Hokkaido. They can stand up to 2 meters in height, weigh in excess of 350 kg and can run in short durations at speeds of 50 kph. There have been 86 attacks and 33 deaths from bears since 1962, when the government started keeping records.

Old Mine Workings

Old mine workings are in a poor state of condition and will require significant rehabilitation work before they can safely be accessed by field crews.

Seismicity

The Hokkaido region is seismically active due to the tectonic setting (Figure 4) and is characterized as high level hazard according to the seismic hazard study issued by the US Geological Survey (http://earthquake.usgs.gov/hazards). The exact timing of future earthquakes cannot be specified. 13

Figure 4: Tectonic setting, earthquake and volcanic map (Source: http://earthquake.ugs/hazards)

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Topography, Elevation and Vegetation

The Ikutawara Project is situated primarily over government or privately managed forestry concessions and, to a lesser extent, over privately owned dairy farms. Forestry concessions are located on moderate to steep hill ranges, ranging in elevation from 190 m to 707.8 m, whilst dairy farms occupy lower river valley areas. Drainage morphology reflects the strong regional structural grain with predominantly ENE-WSW, NNE-SSW, NNW-SSE and lesser NW-SE orientations.

Native forests comprise predominantly conifers, with lesser spruces, firs and broad-leafed deciduous trees (Photo 1). In commercial forestry plantations trees comprise hinoki cypress, Japanese red and black pine and Japanese red cedar, which are used mainly for paper milling and in the building industry. Bamboo grass (Photo 2) is prolific in alluvial headwater areas and in immature forestry stands. Grasslands provide the main pastoral supply for dairy and beef feedlots. Other agricultural products including wheat, soybeans, potatoes, sugar beet, onions, pumpkins and corn are grown in and around populated settlements.

Photo 1: Logged coniferous and broad-leaved deciduous tree species

5.2 Access

The centre of the Property is easily accessed by good quality sealed roads from the regional cities of Abashiri and Monbetsu, located 87 km east and 64 km NNW, respectively. Alternatively, the area can be reached by railway with the Sekihoku trunk line running along the south and west edges of the Property. Abashari has a population of 38,966 (2011 census), whilst Monbetsu has 25,678 (2008 census). Abashari (via Memanbetsu Airport) and Monbetsu are both serviced by frequent daily flights from Tokyo and the provincial capital of Sapporo.

Photo 2: Prolific bamboo grass development in immature forestry stands

The Property is centered on the town of Ikutawara which is an approximate 60-minute drive from the Memanbetsu airport. Within the Property access is by sealed roads which terminate into a network of gravel and dirt forestry access roads.

5.3 Population and Transport

Because of the extensive forestry coverage, the Property is sparsely populated with a density of only 0.3 persons per km². Outside of forested areas population density increases to 16.4 persons per km².

The provincial road system consists of a network of high quality national highways and sealed secondary roads at district level which degrade into unpaved roads and tracks within designated forestry areas. The Sekihoku trunk line of the Hokkaido railway system provides an alternative transportation means for movement of people and goods to other regional centres.

5.4 Climate

Located in a humid continental climate, the Property has long, cold winters and cool summers.

The average August temperature ranges from 17 to 22°C, while the average January temperature ranges from −12 to −4°C. Snowfall is variable ranging from 4.0-8.0 metres, with isolated storms depositing long-lasting snowbanks.

The area is normally not affected by the June-July rainy season and is typically warm with a lack of humidity. Annual rainfall averages 1192 mm, with the wettest month being September with an average of 171 mm of rain. Sunshine, in accordance with Hokkaido’s uniformly heavy rainfall, is generally modest in quantity averaging four hours per day, with the most daily sunshine hours at seven in the month of May. Fogs from the cold Okhotsk Current can create persistent cloud cover.

Because of seasonal snowfall and resulting access issues, the effective annual exploration work season is limited to the months of April to November.

5.5 Surface Rights, Power, Water, Personnel & Potential Infrastructure Sites

Surface Rights

Because of the early exploration stage, SAMJ does not hold any interest in surface rights within the Property. Surface rights within the Property are held mostly under government or privately managed forestry concessions, and lesser under privately owned dairy farms.

Power

Should prospects within the Property be progressed via exploration to a mining operation, power sources would be addressed in a feasibility study.

Water

The relatively high rainfall suggests that water supplies would be sufficient for any mine development.

Personnel

It is considered that a skilled labour and a professional workforce for both exploration and mining exists in Japan. However, because of the relatively small size of this workforce and lack of availability, SAMJ anticipates that some expatriate geologists may be required.

Potential Infrastructure Sites

With underground mining and mine waste backfilling being the preferred exploitation method, together with its small environmental footprint, it is thought that sufficient areas exist for potential infrastructure sites should any mining operation be established.

6.0 HISTORY

6.1 Prior Ownership

The Ikutawara Project lies within the Central Kitami mining district, which hosts numerous epithermal mineral occurrences, historical mines and workings dating from 1912-62. The historical mines were worked either by Japanese companies including Sumitomo, Mitsubishi, Hippon and Fujita Group, or by private individuals.

“…Austpac Gold NL entered Japan in 1986 to explore for high-grade epithermal deposits realizing the potential for bonanza type deposits following the discovery of Hishikari in 1981. Austpac formed a joint venture with Nishio Iwai Corporation, at the time one of the world’s largest trading companies. The NICA joint venture was managed by Austpac with a 60:40 Austpac: Nishio Iwai ownership/ funding structure. In 1990 MIMJ, a wholly owned subsidiary of Mount Isa Mines Holdings entered into the joint venture (NICAM-JV). MIMJ could earn up to 50% interest by sole funding exploration on the majority of the JV’s projects by spending AUD 4,600,000. By 1993 the NICAM joint venture stood at 30% Austpac: 26% Nishio Iwai: 35% MIMJ. By mid-1994 increases in the value of the Japanese yen and a devaluation of the Australian dollar increased exploration costs by up to 25% and resulted in limited further work and eventual withdrawal from the venture by Austpac and MIMJ…” (Rowe, 2015).

6.2 Previous Exploration

Only limited information is available on historical exploration and development work which in some cases culminated in gold production during 1912-62. This included:

1. Ryuo Mine (1950-66): Sumitomo completed 571 m of exploration drives and 182 m of drilling. 17

2. Akebono Mine (1938-40): Sumitomo completed undefined exploration activities including a 200 m exploration drive along the main vein. 3. Taihoku (1957): an undefined amount of surface trenching.

Information pertaining to exploration work undertaken during NICA and later NICAM JV’s tenure is limited to annual company reports issued by Austpac Gold NL for the period 1987-94. As part of a regional metallogenic study, MMAJ undertook regional geophysical surveys and regional soil sampling over a large area including the Ikutawara Project area, and also conducted prospect evaluation work at Maruyama, in the vicinity of the old Kitano-o Mine, and a single 500 m vertical diamond drillhole in the vicinity of the Ikutawara Mine. The following is a summary of exploration results on a prospect by prospect basis.

Maruyama

1987-1988: Reconnaissance stream and rock sampling identified anomalous Au-Ag-As-Sb epithermal veins and breccias, along with sinter and sulphide-bearing volcanics (up to 50% pyrite). Visible gold was reported in heavy mineral concentrate samples.

MMAJ gravity surveys with 700 m survey station defined numerous basin and caldera features with the former spatially associated with epithermal mineralization.

1988-1989: Reconnaissance geologic mapping identified a 1.0 x 2.0 km rhyolite intrusive (dome) with an enveloping 500-1,000 m wide clay-pyrite halo. The halo contains gold anomalous advanced argillic alteration with localized areas containing auriferous colloform-banded quartz veins and associated silicification. Float sampling yielded banded vein quartz assaying from 0.1 to 11.4 g/t Au. Numerous shallow pits attributed to trial mining of colluvial gold associated with sinterous quartz and sub-sinter stockworks.

1989-1990: MMAJ completed four short CSAMT traverses which identified a surface layer of high resistivity covering areas of low resistivity. A 300 m vertical hole drilled in September 1990 encountered alternating mudstone, sandstone and conglomerate to 94 m depth, followed by tuff and tuff breccia. The upper 140 m of the hole was strongly silicified and locally cut by 1-3 cm banded quartz veinlets which were anomalous in gold (highest assays 2.33 g/t Au and 1.99 g/t Au).

1991-1992: NICAM exploration efforts focused on the west side of the rhyolite dome complex where previous work had identified extensive clay-pyrite alteration and gold anomalous float. Prospecting was hampered by deep debris cover; nevertheless, float and limited outcrop sampling returned values ranging from 0.2 to 11.0 g/t gold and an isolated 60 cm wide vein outcrop in a creek gave 41 g/t gold (Sakinzawa prospect).

A reconnaissance CSAMT program (45-line km with line spacings of 250 m on a N-S oriented grid) identified a number of parallel north trending high resistivity zones correlating with gold mineralized structures. Five shallow RC drill holes targeted the 1 km long resistivity zone and returned intervals of elevated gold and arsenic. Petrology testwork on rock chip samples suggested relatively low formation temperatures consistent with a sub-sinter setting.

1992-1993: In late 1992 and early 1993, 19 short trenches were excavated at the Sakinzawa mineralized quartz vein creek outcrop. One of the trench vein exposures assayed between 15 and 109 g/t silver over 1m sections. An extension of the trench revealed quartz stockwork in tuff and assayed 9 m @ 24 g/t gold and 1 m @ 59 g/t gold. A further 18 trenches to the east and west of earlier trenching encountered strong silicification ± veining with assays ranging from 15 to 70 g/t gold, (Figure 5).

Figure 5: Sakinzawa/Maruyama prospect showing NICAM exploration highlights 1992-93 (Auspac, 1993)

A series of holes were drilled across the inferred NNW and NNE structural trends, with several zones of intense silicification and stockwork veining intersected with higher tenor assays in the range of 3 to 6 g/t gold and 9 to 32 g/t silver.

1993-1994: Mapping in late 1993 focused on an area of newly defined historical mine workings. The workings were associated with hydrothermal breccias and quartz veining occur to the northeast of the dome along the Tsutsuji ridge. Assays from 412 trench samples reported only weak Au-Ag-As mineralisation.

Akebono

A small 120 m exploration drive was developed at Akebono between 1938 and 1940 by Nakajim Mining, which included 120 m of drift along a quartz vein approximately 1 m wide.

Sumitomo, during their investigation of the Ikutawara area historical mines in the 1960’s, reported underground vein channel sampling from a 25 m strike length of quartz vein in Akebono averaged 20 g/t gold and 550 g/t Ag, with individual samples up to 1.2 m @ 446 g/t gold/376 g/t silver and silver values to a maximum of 8,004 g/t (Sumitomo 1967, cited in MMAJ 1990).

Later exploration by Austpac is summarized below:

1989-1990: Austpac investigated the historical workings of an epithermal quartz vein system hosted in basement shales and sandstones. “…Surface samples from historical workings averaged 1.7 g/t 19

gold and 73 g/t silver. Underground sampling data shows a 14m length of vein averaging 24 g/t gold and 450g/t silver over an average 1.02 m wide vein width. Sampling of another 10 m length of vein averaged 15 g/t gold and 640 g/t silver over an average width of 0.98m…” (Austpac, 1990)

1990-1991: Austpac undertook initial geologic mapping and sampling and located numerous workings, with banded quartz veins outcrops ranging in width from 0.4-2.5 m, dipping at 45 degrees.

1993-1994: Regional sampling and mapping was reported. (Austpac 1994)

Saroma-Taiho

1989-1990: Both veins occur within a northeast mineralized structure of 2.1 km strike length, with banded quartz veins 2.8- 6.7 m wide and dips of 65º-80º to the southeast. Both veins were shallowly worked in the 1930’s. At Saroma an east-northeast vein can be traced along collapsed workings and pits for over 1,300 m. The Taiho vein parallels the Saroma vein, dips between 55° to 75° northwest and is exposed for over 550 m. Vein float sampling of the general area reported values to a maximum of 20 g/t gold, with an average of 6.1 g/t gold (n=24). Fluid inclusion studies of quartz vein material reported depositional temperatures of 170-220º C.

1990-1991: “…At Saroma, trenching in scree covered areas along strike from old workings gave assays of 12.2 and 15.7 g/t gold over narrow intervals in wall rock breccia in Cretaceous basement sediment. Assays of quartz vein material from shallow workings ranged from 1.1-3.0 g/t Au and up to 153 g/t Ag. The Taiho vein has a maximum width of 6.7m with textures indicating multiphase quartz deposition and brecciation. Banded zones of brecciated quartz vein and shale gave anomalous assays between 0.5 and 1.5 g/t gold and 75-110 g/t silver….” (Austpac, 1991)

Saltpancove Pty Ltd

In October 2013 Rod Davies of Saltpancove Pty Ltd collected a number (n=27) of prospecting rock samples from mine openings, mullock heaps, talus/subcrop and vein alteration envelope material from the Akebono (10), Ryuo (8), Maruyama (7), Taiho (1) and Taihoku (1) mine areas. Samples were analyzed by ALS Guangdong by Fire Assay (Au) and 4-acid ICP AES methodology. Assay values ranged from 0.015-43.8 g/t Au and 0.5-46.3 g/t Ag, whilst other elements were of low tenor or within background threshold levels. The 43.8 g/t Au value was from a grab sample of the Maruyama lode exposed in a creek section (705265mE/4868468mN).

6.3 Historical Resource and Reserve Estimates

No historical resource or reserve estimates have been reported from the Ikutawara Project.

6.4 Historical Production

The Property lies within the Central Kitami mining district located along the N-S trending Monbetsu- Rubeshibe zone within the Kitami Metallogenic Province (Figure 6a) of northeast Hokkaido. The 40km by 10km north trending Monbetsu-Rubeshibe graben structure hosts numerous epithermal mineral occurrences, historical mines and workings dating from the early 1900’s. The most notable deposit in the district is the Konamai deposit mined between 1915 and 1973, which produced a total of 2.1 Moz of gold at an average grade of 6.4 g/t. Recorded gold production (Table 1) from within the Ikutawara Project is in excess of 136,000 ounces, with the majority mined from sinterous and sub- sinter veins at Kitano-o (Figure 6b). Gold production at Kitano-o was mainly from shallow open pit workings under sinter sheets. Visible gold was reported to be washed from the soil through these areas.

Kitami Metallogenic Province Hokkaido

Volcano active since 1900 AD Volcano active 10,000 yrs BP Active fault

Honshu

Figure 6(a). Regional metallogenic districts and historical mine locations

APG-Ni Maruyama/ Sakinzawa Prospect

Maruyama rhyolite dome

Kitano-o mine sub-sinter veins Kitano sinter 470-520 m RL

Figure 6(b). Ikutawara historical mine locations and simplified geology

Table 1: Historical Production within the Ikutawara Prospecting License Areas

Mine Production Au (oz) Ag (oz) Au g/t Ag g/t Source

Kitano-o1 1924-23 96,450 ND 5.9 Garwin et al, 2005

Ryuo12 1938-53 5,333 26,846 8.9 36 MMAJ data

Kyouei12 (Ikutawara) 1933-62 16,185 126,371 5.2 41 MMAJ data

Saroma-Chistose1 1931-43 5,193 24,618 5.0 24 Watanabe, 1996

Taiho1 1912-28 3,858 327,930 Shikazono, 1986

Rubeshibe 3,215 6,430 1.5 Watanabe, 1996

Taihoku2 1957 ND ND MMAJ data

Showa1 1926-43 6,656 3,090 16.8 7.8 MMAJ data

Notes: 1 Denotes partial production data only 2 Denotes MMAJ underground sampling data ND: no data

MMAJ, as part of its study of the Kitami Metallogenic Province, compiled historical underground assay data for face sampling from the Ryou Mine, which was developed on six levels, and reported the following highlight results:

• Level 4 – 52m drive • Average vein width 0.45m, average grade 40.5 g/t gold, 184 g/t silver. • Level 5 – 15m drive • Average vein width 0.71m, average grade 30.1 g/t gold, 373 g/t silver. • Level 6 – 15m drive • Vein widths 1.0-1.6m wide, average grade 16.2 g/t gold, 59.2 g/t silver. • Maximum sample assays 474 g/t gold, 667 g/t silver.

7.0 GEOLOGICAL SETTING AND MINERALISATION

7.1 Regional Geology

“… Japan is part of the "Ring of Fire," the belt of earthquakes and volcanic activity that distinguishes the active margins of the Pacific Ocean from the passive margins of the Atlantic Ocean. Most of the geology of Japan is a result of subduction-related processes since the Mesozoic (Sugimura and Uyeda, 1973). To a first order, the current tectonics of the Japanese islands can be explained by the interaction of four plates: Pacific, Philippine, Eurasian and North American. The eastern part of the Eurasian plate is broken with a large fragment, the Amur subplate, currently moving as a distinct kinematic entity (Wei and Seno, 1998; Heki et al., 1999). The North American plate continues across the Bering Sea into eastern Asia and down past the Kamchatka-Kurile trench segments to Japan. An elongate southern prong of the North American plate extends southwards to Japan. This prong has broken off and is currently moving as a distinct kinematic entity, the Okhotsk subplate. The current tectonics of Northeast Japan (northern Honshu and Hokkaido) are a manifestation of the interactions between the Amur and Okhotsk subplates with the Pacific plate. Subduction along the Japan Trench is concurrent with convergence near the eastern edge of the Sea of Japan. Four arc segments merge to form the Japanese islands. The northern half of Honshu island is a subduction segment commonly referred to as northern or northeast Japan. Hokkaido is the southern end of the Kurlie trench and arc 22

(Figure 7 and Figure 4). East-central Honshu (Izu peninsula) is the northern end of the Izu-Bonin- Mariana trench and arc. These three arc-trench segments are all the product of the westward subduction of the Pacific plate host significant magmatic-related hydrothermal copper and gold mineralisation...” (Numo, 2002)

The basement rocks of the southwestern Kuril arc consist of a Mesozoic accretionary complex with a cover of Cretaceous and Paleogene sedimentary rocks. Eocene to middle Miocene ilmenite-series granitoids intrude the basement rocks (Ishihara et al., 1998). The volcanism of the southwestern Kuril arc has changed from middle Miocene andesitic activity to middle to late Miocene bimodal basalt and rhyolite, including a period from 12 to 8 Ma with basalt-only volcanism. The andesitic and bimodal volcanic activity migrated trenchward during the middle Miocene (Watanabe, 1995). The middle to late Miocene bimodal and basalt-only volcanism occurred mainly in a north-south trending graben perpendicular to the arc trend (Watanabe, 1995). The basalts of the Miocene bimodal assemblage changed from island-arc type at 13 to 11 Ma to backarc basin basalt at 9 to 7 Ma and again changed into island- arc type at 5 to 4 Ma (Ikeda et al., 2000). Since the Pliocene, bimodal volcanism in the backarc has disappeared and andesitic volcanic activity at the volcanic front has become dominant. This Plio-Pleistocene activity was associated with formation of calderas several to ten kilometers in diameter, which erupted large amounts of felsic ignimbrite (Ikeda, 1991). East-northeasterly trending right-lateral strike-slip faults were active during the late middle Miocene nearby the volcanic front of the southwestern Kuril arc due to oblique subduction of the Pacific plate (Watanabe, 1995). This fault movement led to the westward migration and collision of the Kuril forearc sliver with the northeastern Japan arc at southern Hokkaido, forming the present concave joint between the Kuril and northeastern Japan arcs (Kimura et al., 1983)…” (Garwin, 2005)

7.2 Local Geology (referenced from Maeda, 1997)

The Kitami region or Kitami Metallogenic province is situated on the back-arc side of the present Kuril volcanic arc, and is underlain chiefly by sedimentary rocks (turbidite sandstone and mudstone, and mélange including chert, limestone and greenstone) and basaltic rocks of Cretaceous to Paleogene age (Kiminami et al., 1986; Yahata et al., 1988). Eocene to Early Miocene plutonic rocks intruded into the sedimentary rocks in a north-south direction (Ishihara and Terashima, 1985), and volcanic and sedimentary rocks of Middle to Late Miocene age overlie these basement rocks (Watanabe, 1994, 1995). The volcanic rocks consist mainly of andesite and rhyolite with subordinate amounts of basalt and dacite (Watanabe, 1994, 1995). These volcanic rocks are exposed in N-S trending volcanic chains of the Omu-Kamikawa and Monbetsu-Rubeshibe zones (Watanabe, 1995). The volcanic rocks vary in age from ca. 14 Ma to 9 Ma in the Omu-Kamikawa zone and ca. 14 Ma to 6 Ma in the Monbetsu-Rubeshibe zone, and older rocks tend to be located in the north, and become younger to the south (Watanabe and Yamaguchi, 1988; Watanabe, 1994, 1995).

In the Omu-Kamikawa zone, felsic volcanic rocks overlie andesitic rocks, and are again overlain by andesitic rocks. The felsic volcanic rocks in the Omu and Sanru areas in the zone consist mainly of rhyolite lavas (Sako et a., 1960; Suzuki et al., 1966), whereas dacitic welded tuff is dominant in the Shokotsudake area (Matsunami and Kontani, 1981). Interfingering with lacustrine sedimentary rocks, this welded tuff ponded within a caldera structure (Shokotsudake caldera), ca. 20km in diameter (Watanabe et al., 1995).

In the Monbetsu-Rubeshibe zone, felsic volcanic rocks overlie andesitic rocks (Watanabe, 1994, 1995). The felsic rocks in the zone occur as lavas and pyroclastic rocks, and interfinger with lacustrine sedimentary rocks (Yahata et al., 1988; Yamada et al., 1963). The Monbetsu-Rubeshibe zone has the ca. 10 km-wide Monbetsu-Rubeshibe graben at its eastern margin (Fig. 8; Watanabe et al, 1995). The MMAJ found evidence for the graben to be greater than 700 m deep by drilling in the Ikutawara area, buried by rhyolitic pyroclastic flow deposits (MITI, 1991). The graben is characterized

Figure 7: Geology and structural setting of Hokkaido Island

by low Bouguer anomalism and approximately corresponds to the distribution of rhyolitic volcanic and pyroclastics of the Monbetsu, Shanahuchi and Ikutawara Formations (Watanabe et al, 1995). According to the age and stratigraphic relation of these formations (Yahata and Nishido, 1990), the graben formation started at the Konomai area and spread southward from the Ikutawara area from the middle Miocene to late Miocene.

There is an ENE-WSW striking right-lateral strike-slip fault zone in the southern part of the region (Kamishiyubetsu tectonic zone; Kimura et al, 1982. Faults in this zone and the faults of the same strike are scattered over a 200 km-wide belt across the Kuril arc. Igneous dikes intruded frequently along the faults of this strike, and some faults are accompanied by hydrothermal alteration, including metalliferous veins (Saito et al, 1960; Hasegawa et al, 1961), and shear zones with associated greenschist to amphibolite facies metamorphism (Watanabe, in press). These ENE-WSW faults were cut by NNE-SSW striking faults to the east of the Kitami region (Yahata et al, 1988)

7.3 Property Geology (modified after Maeda, 1997)

Geology of the Ikutawara Project comprises accretionary Mesozoic basement rocks overlain by Middle Miocene to Pliocene volcanic, volcaniclastic and sub-intrusive rocks, along with Pleistocene to Recent alluvial and terrace deposits.

The basement rocks within consist of members of the Upper Jurassic-Upper Cretaceous Nikoro Group (green stone and lesser shale, red chert and limestone) and Yubetsu Group (terrigenous turbidites containing conglomerate, felsic tuff, and pelagic green and red mudstones) outcropping in east and south parts of the Property. These strata have been cut by many transverse faults as well as by many strike-parallel reverse faults, which appear to have an imbricate structure (Tajika and Yahata, 1991).

Unconformably overlying Neogene rocks comprise the Upper Miocene Ikutahara Formation and Upper Miocene-Lower Pliocene Maruyama-toge Lava. The Ikutahara Formation consists primarily of basal conglomerate, sandstone, mudstone, felsic welded tuff, felsic tuff, rhyolite lavas, and andesite lavas. The Maruyama-toge Lava consists of phenocryst-rich biotite rhyolite and phenocryst poor banded rhyolite. The lavas are terrestrial in origin and about 50 m thick.

Neogene intrusive rocks comprise andesite and rhyolite stocks, domes and sills of Late Miocene and Late-Miocene-Early Pliocene. The earlier andesite intrusive phase in general trend ENE-WSW, NE- SW, and NW-SE and are noted intruding sandstone and shale of the Yubetsu Group, whereas the rhyolite equivalent trends NNE-SSW to NE-SW and intrudes primarily clastic and volcaniclastic rocks of the Ikutahara Formation. The later intrusive phases trend NNE-SSW to NNW-SSE and E-W, and are emplaced primarily into clastic and volcaniclastic rocks as well as rhyolite lavas of the Ikutahara Formation.

The distribution of these rock units is shown in Figure 8 and the prospect stratigraphy in Figure 9.

7.4 Mineralisation

Mineralisation

The gold mineralisation at Ikutawara is classified as rift low-sulphidation epithermal.

APG-Ni Maruyama/ Sakinzawa Prospect

Maruyama rhyolite dome

Kitano-o mine sub-sinter veins

Kitano sinter 470-520 m RL

Figure 8. Ikutawara Simplified Geology Map

Figure 9: Ikutawara District Stratigraphy (after Maeda, 1997)

Epithermal systems present display:

Gold mineralisation is typically associated with quartz chalcedony-adularia-sericite±calcite in silicified and veined or brecciated structures, including dark sulphidic material termed ginguro bands. Veins display cockade, crustiform-colloform banding, pseudomorphing (quartz after calcite indicative of fluid boiling zones) quartz textures typical of epithermal systems.

Most of the historical underground workings have subsequently collapsed (Photo 3) and shallow pits are filled with colluvium. The following comments on lode systems are based on historical descriptions (MMAJ data, Shikazono, 1986 and Watanabe, 1996) and vein material observed in residual mullock heaps on the site visit by Mr. Campbell.

Photo 3: Collapsed exploration drive at Ryuo mine workings

The Kitano-o lode system strikes predominantly E-W with splays having a N-S trend. In total 130 individual veins were mapped, with the main N-S lode characterized with veins of lower gold grade and undefined width, whilst N-S secondary structures are high grade (20 g/t Au) with widths of cm’s to 3 metres and strike lengths of 60-220 metres. Bonanza gold-silver grades are reported at the intersection of the N-S and E-W vein. Ore minerals comprises native gold, argentite and cinnabar, whilst gangue includes quartz, adularia and kaolinite. Sinter and sinterous vein boulders viewed show classic laminated opaline to amorphous silica (± remnant petrified wood) that are micro-hydraulic fractured (Photo 4) and cross-cut by multi-generation chalcedonic quartz veins.

The Ikutawara/Kyouei lode system generally strikes ENE to E, with lesser veins developed in N-S fractures. The mineralised structure exceeds 700 m in strike length with veins characterized either as veinlets or stockworks with individual strike lengths of 20-30 m and widths of 1-20 cm. Ore minerals include native gold, argentite, cinnabar, pyrite and magnetite, whilst gangue comprises quartz, adularia, calcite and kaolinite. Gold grades are highly variable, with higher grades associated with increased adularia content and/or effects of supergene weathering.

The Showa lode system trends primarily WNW-ESE and dips steeply (70-90°) to the north or south over an approximate strike length of 250 m, and has a maximum width of 2.0 m. Fracture-controlled quartz veinlets trend NNE and form bonanza zones at the intersection with the WNW-ESE structure.

Photo 4: Opaline-amorphous silica sinter with incipient micro-hydraulic fracturing and cross- cutting chalcedonic veinlets; Kitano-o Geopark

The Sakinzawa lode system strikes approximately E-W and dips steeply (70-80°) to the south over an approximate strike length of 500 m, and has a maximum width of 9 m. It is characterised by quartz- chalcedony veining and silicification, quartz-rich brecciated zones with oxidised sulphides and wall rock fragments. Chalcopyrite, pyrite and marcasite are present in places. Vein textures include drusy, cockade, crustiform and comb texture, and lesser colloform banding.

The Ryuo lode system comprises principally the Jinja and Shoei veins that run parallel to each other, striking ENE and dipping steeply (60-70º) to the south. Strike length is approximately 600 m with vein widths from 0.7-1.0 m. It is characterised by high grade (16.2-40.5 g/t Au) fissure-filling quartz veins with sulphides and bladed vugs after calcite dissolution (Photo 5). Vein textures include drusy, cockade, crustiform and comb texture, and lesser colloform banding. The presence of contrasting vein textures suggests overprinting and multi-phase mineralisation. Ore minerals include pyrite, marcasite, chalcopyrite, tetrahedrite, sphalerite, galena, bornite, native gold, argentite, covellite and native silver (Photo 6), whilst gangue comprises quartz, adularia, sericite, carbonates and chlorite.

The Akebono lode system strikes ENE and dips moderately to the SE, with a minimum strike length of 175 m and an average vein width of 1.02 m. It is characterised by fissure-filling quartz veins with sulphides and bladed vugs after calcite dissolution. Veins typically have cockade and drusy textures with basement wallrock, quartz after calcite pseudomorph and minor colloform banding

The Saroma lode system generally strikes to the ENE and dips steeply (70-80º) to the south over an approximate strike length of 1.3 km with vein widths ranging from 0.1-2.0 m. It is characterised by fissure-filling sacchroidal quartz veins and breccias with sulphides (chalcopyrite, galena, pyrite and black sulfosalts). Vein textures include drusy, cockade, crustiform, pseudomorph and comb textures, and lesser colloform banding, with basement wallrock inclusions (Photo 7).

The Taiho lode system is part of the same ENE trending mineralized structure as the Saroma lode, with banded quartz veins ranging from 2.8-6.7 m in width, along a strike length of 550 m. Vein textures are of the same nature as those of the Saroma lode.

The Chitose lode system strikes predominantly E-W with splays having a N-S trend. Strike length is unknown with individual fissure veins varying from 0.1-0.6 m in width and traceable for 20 m. Vein textures are of the same nature as those of the Saroma lode.

Photo 5: Platy, lattice-textured quartz after calcite, indicative of boiling zones and potential metal deposition – Ryuo lode

Photo 6: Chalcedonic quartz vein with aggregates of pyrite, marcasite, galena, sphalerite and tetrahedrite – Ryuo mine workings

The Taihoku lode system generally strikes approximately E-W and dips steeply (70-80°) to the south over an approximate strike length of 320 m. Vein widths vary from 0.1-1.2 m and typically “pinch and swell” in nature. Vein textures are of the same nature as those of the Saroma lode.

The Rubeshibe lode system strikes NE to ENE and dips steeply (63-70º) to the SE and NW, respectively. Vein strike length ranges from 70-240 m, with widths from 0.6-1.1 m. Vein textures are of the same nature as those of the Saroma lode.

Host Rocks

The late Miocene quartz-adularia vein mineralisation is hosted by volcanic and volcaniclastic members of the Ikutahara and Maruyama-toge Lava Formations (hotspring deposits), whilst fissure-

Photo 7: Banded drusy fissure-filling fissure quartz vein breccia, with basement black shale wallrock inclusions – Saroma mine workings filling veins are hosted by Mesozoic members of Nikoro and Yubetsu Groups, along with elements of the Ikutahara Formation and Miocene sub-volcanic intrusives.

Controls

“…Miocene gold-bearing quartz-adularia veins within the Monbetsu-Rubeshibe graben or Central Kitami region is closely related to the felsic volcanism, both in time and space; mineralization shifted southward following the shift of volcanic activity southward (Watanabe 1995). These deposits occur in east-northeasterly strike-slip faults. The overall distribution of veins in major deposits indicates that the area of mineralization in each deposit is elongated in a N-S direction, in spite of the predominant E-W or ENE-WSW trending veins. The timing of the epithermal gold mineralization ranges from 14 to 4 Ma, with a hiatus from 12 to 8 Ma, which corresponds to the period of the backarc basin volcanism…” (Watanabe, 1996).

Alteration

Gold mineralisation on the Property occurs within elongate altered zones of quartz-adularia veining and brecciation along structural trends, typically with a silicified core and an outer mixed clay argillic. Propylitic alteration is restricted to the Miocene volcanic sequence.

Three types of wall-rock alteration are present:

 Silicification – within the vein/breccia lode system.  An envelope of illite and quartz grading outwards into mixed illite-smectite and smectite and pyrite.  Propylitic alteration restricted to Miocene volcanics.

Veins and breccia lodes are associated with quartz-adularia and associated interstratified illite- smectite, smectite and pyrite ± kaolinite ± alunite alteration assemblages within the lodes with variable sulphide content, mainly pyrite and marcasite. Argillic alteration which envelopes the lode zones is characterised by an inner zone of illite-quartz±chlorite and associated interstratified illite- smectite, smectite and pyrite which grades outwards into interstratified illite-smectite and smectite- pyrite dominant assemblages. Propylitic alteration occurs as an assemblage of chlorite-pyrite, locally with lesser quantities of calcite and fine grained epidote.

Dimensions & Continuity

The lode systems range from 60-1,300 m in strike length; however, strike length is largely untested by drilling. Individual vein systems vary from 0.1 to 6.7 m in width.

8.0 DEPOSIT TYPES

Gold mineralisation at Ikutawara is classified as low-sulphidation epithermal.

8.1 Classification

The copper porphyry and porphyry-related base and precious metal deposit styles of the magmatic island arcs of the southwest Pacific are discussed extensively by Corbett and Leach (e.g. Corbett and Leach, 1997; Corbett, 2004). These authors also provide a comprehensive discussion of the controlling factors and characteristics of porphyry systems.

The southwest Pacific Rim gold-copper systems have been classified into three main groups by Corbett and Leach (1997), Corbett (2002, 2004):

 Porphyry-related.  High sulphidation gold-copper.  Low sulphidation.

“…Epithermal Au and Ag deposits of both vein and bulk-tonnage styles may be broadly grouped into high, intermediate and low sulphidation types based on the sulphidation states of their hypogene sulphide assemblages.

 High sulphidation deposits contain sulphide-rich assemblages of high sulphidation state such as pyrite- enargite, pyrite-luzonite, pyrite-famatinite, and pyrite-covellite and occur mainly in calc-alkaline andesitic- dacitic arc terranes.

 Intermediate sulphidation deposits contain minerals with sulphidation states between those of high and low sulphidation types such as chalcopyrite, FeS-poor sphalerite, galena and tetrahedrite-tennantite, (and predominantly occur in calc-alkaline andesitic-dacitic arcs, although more felsic rocks may be locally important hosts.

 Low sulphidation deposits contain the low-sulphidation pair pyrite-arsenopyrite, the latter typically present in relatively minor quantities within banded veins of quartz, chalcedony, adularia and subordinate calcite. Very minor amounts of Cu (typically <100–200 ppm) are 31

present as chalcopyrite or, less commonly, tetrahedrite-tennantite. Most low sulphidation deposits are confined to bimodal magmatic suites in and around rifts generated during intra-, near-, and back-arc extension, as well as in post-collisional settings…” (Sillitoe and Hedenquist 2003)

Based on SW Pacific examples, Corbett, 2004 further classifies “… low sulphidation epithermal deposits into arc and rift low sulphidation (Figure 10) to account for mineralogies which result from varying associations with magmatic source rocks and input of meteoric geothermal waters.

 Rift Low Sulphidation deposits comprise the adularia-sericite epithermal gold-silver ores in the classification of Corbett and Leach (1998), and typically occur as veins with gangue mineralogies (chalcedony, adularia, quartz pseudomorphing platy carbonate) deposited from circulating dilute (meteoric dominated) geothermal waters, within dilatant structures, typically confined to rifts within magmatic arcs or back arc environments

 Arc Low Sulphidation gold deposits display strong field associations with intrusive rocks and are categorised below on the basis of varying ore (pyrite, sphalerite, galena, chalcopyrite, arsenopyrite), gangue (quartz, carbonate, clay) and wall rock (clay, chlorite) mineralogies, which essentially relate to formation at increasingly shallow crustal levels as: quartz-sulphide gold ± copper, polymetallic gold-silver, carbonate-base metal gold, epithermal quartz gold- silver….” (Corbett, 2004)

8.2 Rift Low Sulphidation Deposit Type — Main Features (modified after BC MEMPR)

Despite local variations, rift low sulphidation epithermal deposits worldwide display the following main characteristics:

 Metal Signature: Veins in general have elevated values of Au, Ag, Zn, Pb, Cu and As, Sb, Ba, F, Mn and locally Te, Se and Hg. Main sulphide species include pyrite, electrum, gold, silver, argentite; chalcopyrite, sphalerite, galena, tetrahedrite, silver sulphosalt and/or selenide minerals. Deposits can be strongly zoned along strike and vertically. Deposits are commonly zoned vertically over 250 to 350 m from a base metal poor, Au-Ag-rich top to a relatively Ag- rich base metal zone and an underlying base metal rich zone grading at depth into a sparse base metal, pyritic zone. From surface to depth, metal zones contain: Au-Ag-As-Sb-Hg, Au- Ag-Pb-Zn-Cu, Ag- Pb-Zn.

 Gangue Minerals: Quartz, adularia, sericite, amethyst, chalcedony, quartz pseudomorphs after calcite, calcite, barite, fluorite, Ca- Mg-Mn-Fe carbonate minerals such as rhodochrosite, hematite and chlorite. Quartz, adularia, sericite ± carbonate are the dominant gangue minerals. Barite, gypsum, anhydrite and manganiferous silicates may be locally important. Pyrite is the dominant sulphide gangue.

Multiple episodes of quartz deposition are the norm as evidenced by cross-cutting quartz phases and varied quartz textures. At surficial levels phreatic or eruption breccias act as fluid up flow sites for adjacent laminated amorphous opaline silica sinter deposits (Figure 11). Quartz stockworks of banded to vuggy, multiple-generation quartz-chalcedony veins and hydrofracturing textures are common. Feeder structures often appear as dilatant sheeted veins or stockwork which may extend into the deeper portions of breccia pipes, and also cap the upper portions of some fissure vein systems. Vein-filling crustiform-colloform-banding (and platy, lattice-textured quartz indicative of boiling), comb, cockade and drusy quartz is common. Equant space-filling, saccharoidal, fine crystalline and open space quartz-flooding may be present. 32

 Deposit Morphology: Ore zones are typically localized in structures, but may occur in permeable lithologies. Upward-flaring ore zones centred on structurally controlled hydrothermal conduits are typical. Large (> 1 m wide and hundreds of metres in strike length) to small veins and stockworks are common with lesser disseminations and replacements. Vein systems can be laterally extensive but ore shoots have relatively restricted vertical extent. High-grade ores are commonly found in dilational zones in faults at flexures, splays and in cymoid loops, typically where the strike or dip of veins change. Hangingwall fractures in mineralised structures are particularly favourable for high-grade ore.

Figure 10: Derivation of low and high sulphidation fluids including arc and rift low sulphidation (Corbett, 2004)

Vein systems can be laterally extensive but ore shoots have relatively restricted vertical extent. High-grade ores are commonly found in dilational zones in faults at flexures, splays and in cymoid loops, typically where the strike or dip of veins change. Hangingwall fractures in mineralised structures are particularly favourable for high-grade ore.

Stockworks are common in the hanging wall of deposits; they range from narrow selvages that extend metres from veins and silicified structures, to extensive stockworks that may be of sufficient density and grade to justify an open pitable bulk tonnage mine.

Figure 11: Schematic Cross-Section of a Typical Rift Related Epithermal Low-Sulphidation System (after Corbett, 2004)

 Alteration Minerals: Silicification is extensive in ores as multiple generations of quartz and chalcedony are commonly accompanied by adularia and calcite. Pervasive silicification in vein envelopes is flanked by sericite-illite-kaolinite assemblages. Intermediate argillic alteration (kaolinite-illite-montmorillonite [smectite]) forms adjacent to some veins; advanced argillic alteration (kaolinite-alunite-Fe-Mn oxides, zeolites and sulphur) may form along the tops of mineralised zones. Propylitic alteration dominates at depth and peripherally.

 Paragenesis and Zonation: These deposits form in both subaerial, predominantly felsic, volcanic fields in extensional and strike-slip structural regimes as rifts within magmatic arcs or back arc environments. The veins are emplaced within a restricted stratigraphic interval generally within 1 km of the paleosurface. Near surface hydrothermal systems, ranging from hotspring at surface to deeper, structurally and permeability focused fluid flow zones are the sites of mineralization. The ore fluids are relatively dilute and cool solutions that are mixtures of magmatic and meteoric fluids. “…Although cooling and traditional boiling models still hold for the deposition of gangue minerals (adularia, quartz pseudomorphing platy calcite and 34

chalcedony), and some gold, mixing of rising pregnant fluids with oxygenated or collapsing acid sulphate (low pH) groundwaters is also favoured as a mechanism for the development of characteristic bonanza gold-silver grades (e.g., Hishikari and Waihi). Adularia-sericite vein systems are silver rich with Au:Ag ratios greater than 1:10 being common. Also recognised are: anomalous copper as chalcopyrite, mercury as cinnabar and antimony as stibnite…” (Corbett, 2004). Gold typically occurs as electrum either intergrown with the silver phases or with fine quartz.

8.3 Ikutawara Mineralisation Targets

According to Brommecker et al, 2007 “…the key local scale features of ore forming environments in rift or sub-sub-alkali low sulphidation epithermal systems are:

 Extensional to strike-slip faults;  Structural intersections; and  Rhyolite domes in some cases.

Whereas the key manifestations by increasing proximity include:

1. Propylitic to argillic alteration, grading to sericite-illite and adularia; 2. Concentration of low sulphidation type banded veins; 3. Au

All of the above have been documented on the Ikutawara Project.

Gold mineralisation at Ikutawara is associated with E-W or ENE-WSW trending fissure-filling quartz- adularia veins, higher level hydrothermal breccias and sub-sinterous veins, along with inferred N-S tension veins hosting high grades (>20 g/t; MMAJ underground sampling: Akebono, range <0.1-446.2 g/t Au with 10.3% of samples >20 g/t Au and Ryuo, range <0.1-474.2 g/t Au, with 13.2% of samples >20 g/t Au). The intersection of the two structural trends has historically been mined for bonanza ore grades (Kitano-o and Chitose mines). Extensions of defined mineralised structures both laterally and vertically are obvious company exploration targets.

Hishikari lode analogies are valid with a similar geological setting including the presence of structural dome intersections of near surface competent-brittle basement rocks covered by more ductile volcanics and volcaniclastics, surficial gold mineralisation associated sinter/eruption breccia features, well formed colloform banded fissure vein systems and associated alteration assemblages.

Whilst high grade fissure veins are deemed priority targets, the potential for sufficient concentrations of stockwork veining in hangingwall as an open pitable bulk tonnage target should not be ignored.

9.0 EXPLORATION

SAMJ has completed a contract ground magnetic survey over the Akebono-Maruyama-Ryou prospect and compilation of published exploration data and historical mining data for the Ikutawara Project.

9.1 Literature Searches

Historical exploration and mining data have been sourced from a number of entities including METI, MMAJ, Austpac Gold NL, and Japanese universities, along with published technical papers by Japanese nationals and/or foreigners. Where appropriate, Japanese text documents were translated by a sworn translator.

9.2 Ground Magnetic Surveys

In April 2015 Modern Mag of Melbourne – Australia was contracted to undertake ground magnetic surveys over the Maruyama, Akebono and Ryuo prospect areas (including historical mine workings). Survey specifications are detailed in Table 2 below.

Table 2: Survey Specifications of 2015 Ground Magnetic Survey

Grid Line spacing Line Direction (Deg) Line-km (actual)

Maruyama 125m & 250m 000º 37.3 line km

Akebono 25m, 50m & 250m 046º 17.0 line km

Ryuo 50m,100m & 150m 055º 31.2 line km

Total 85.1 line km

Station spacings were a nominal 1 metre distance (1 Hz sampling) using two roving potassium magnetometers (GEM GSMP35) and one base station unit (GEM GSM-19). The survey was completed between April 16-27, 2015 and deliverables were gridded (10 m upward continuation filter applied) Total Magnetic Intensity (TMI) in Geosoft grids (Figure 12), ERMapper grids, Mapinfo Tiffs, and ArcMap Tiffs. No modelling over interpretation has yet been undertaken by SAMJ.

10.0 DRILLING

Because of the early stage exploration property status (as defined by NI43-101, 2011), no drilling has yet undertaken.

11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY

Relevant industry-standard protocols for sample preparation, analysis and security will be implemented by the company once exploration activities commence.

12.0 DATA VERIFICATION

Mr. Hamish Campbell of Campbell & Associates, Jakarta visited Ikutawara from the June 25-27, 2016. In the course of the site visit, Mr. Campbell viewed historical mine workings and epithermal vein occurrences. Since SAMJ has yet to generate any field data, data verification was considered not warranted.

No verification of historical data as published in technical papers on mining workings (1912-62), MMAJ (1989-90) and NICA/NICAM JV (1987-94) exploration activities was possible due to the fact that historical underground workings have in most instances collapsed, whilst shallow pits and trenches are filled with colluvium, transported soil and talus scree.

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING

Because of the early stage exploration property status, SAMJ has not performed any mineral processing or metallurgical tests on mineralised samples from the Ikutawara Project. There is no current mineral processing or metallurgical testing.

Figure 12: TMI images from ground magnetic surveys over the Ryuo-Maruyama-Akebono prospect areas

14.0 MINERAL RESOURCE ESTIMATES

Because of the early stage exploration property status, no current mineral resources or mineral reserves have been defined.

[Sections 15.0-22.0 of the Form 43-101F1 Technical Report are not applicable to this report]

23.0 ADJACENT PROPERTIES

As part of the METI permitting system, entities cannot directly check whether land positions are open or held by other parties. Based on informal decisions with senior personnel from the Hokkaido METI office, other parties have tried to apply for the Ikutawara Project as part of larger land package, but have subsequently been requested by METI to modify their application boundaries to avoid overlap of existing rights. The status of these Prospecting License Applications, their boundaries and associated geological prospectivity is unknown.

24.0 OTHER RELEVANT DATA AND INFORMATION

With the exception of the 2015 ground magnetic survey which has yet to be interpreted and modeled, as of writing no other relevant data or information is currently available for any of the prospects within the Ikutawara Project.

25.0 INTERPRETATION AND CONCLUSIONS

According to Brommecker et al, 2007 “…the key local scale features of ore forming environments in rift or sub-alkali low sulphidation epithermal systems as is the case with Hokkaido Island are extensional to strike-slip faults, structural intersections, and rhyolite domes in some cases..”

Epithermal gold-silver mineralisation is widely developed in the Central Kitami district of northern Hokkaido in which the Ikutawara Project is located. Historical deposits of significance include Konomai (2.1 Moz gold) located north of the Property and Kitano-o (96,450 oz Au) within the Property, where gold production was mined from shallow open pit workings under sinter sheets.

“…Miocene gold-bearing quartz-adularia veins within the Central Kitami region is closely related to the felsic volcanism, both in time and space; mineralization shifted southward following the shift of volcanic activity southward” (Watanabe, 1995). The more eroded Konomai deposit gives good insight into the possibilities of what gold-silver mineralization may exist at depth below the Kitano-o, Akebono, Ryuo, Maruyama and other prospect areas. The known occurrences, such as Kitano-o, are considered high-level leakage above a potential Konomai-equivalent.

Of encouragement is the auriferous nature of near surface sub-sinterous veins (the majority of the paleo-geothermal system is still present), presence of lattice-textured quartz indicative of boiling zones (and potential metal deposition), a high-energy regime in formation of multi-generation quartz- chalcedonic veins, breccias and stockworks and a Au20 g/t Au; Akebono 10.3% and Ryuo 13.2% from 382 MMAJ underground samples) from colloform-banded quartz-adularia veins within fault intersections or along N-S tensional vein structures as at Kitano-o, Akebono and Ryuo. Extensions of defined dilational mineralised structures both laterally and vertically are obvious company exploration targets. SAMJ has highlighted the extension of the Akebono ENE lode structure, its intersection with N-S trending faults at Maruyama, and the extension of the Ryou NE lode structure as priority targets.

The Saroma-Taiho-Chitose structure is known to host veins that are persistent, wide and spectacularly banded. Grades in these basement hosted veins are erratic but locally encouraging.

Hishikari lode analogies are valid with a similar geological setting including the presence of structural dome intersections of near surface competent-brittle basement rocks covered by more ductile volcanics and volcaniclastics, surficial gold mineralization associated sinter/eruption breccia features, well formed colloform banded fissure vein systems and associated alteration assemblages.

Whilst high grade fissure veins are deemed priority targets, the potential for sufficient concentrations of stockwork veining in hanging wall as an open pitable bulk tonnage target should not be ignored.

The Ikutawara Project as defined by NI43-101 (June 2011 and unofficial May 2016 amendments) is categorized as an early stage exploration property, meaning that:

a) No current mineral resources or mineral reserves are defined; and b) No drilling or trenching is yet planned.

No exploration activities aside from literature searches for historical exploration and mining data, along with a contract ground magnetic survey over the Akebono-Maruyama-Ryou prospect areas, has been conducted by SAMJ.

No independent evaluations have been performed by SAMJ to confirm the accuracy of analytical results from exploration work conducted by MMAJ (1987-90) and the NICA/NICAM joint ventures (1987-94). As such, any numbers (e.g. assay results) presented from these sources have been taken at “face value”, assuming internal and external verification and best practices. CA consider that risks associated with this are low as evidenced by documented historical gold-silver production from prospect areas within the Ikutawara Project.

Possible concerns in relation to translation errors in exploration and/or production data are again considered limited as all translations are by reputable sworn translators and further verified by SAMJ Japanese personnel.

26.0 RECOMMENDATIONS

SAMJ has proposed an initial four (4) month exploration program and budget of US$1,051,250 initially focused on the advancement of the Akebono, Ryuo and Maruyama/Sakinzawa- Kitano-o prospect areas, which are considered at this stage the highest priority targets. Field activities are two- staged with a Phase 1 of low impact activities during the Prospecting License Application stage followed by a Phase 2 of more invasive activities (drilling and trenching) in the Prospecting Rights License period. The work programs include:

Phase 1: Low impact exploration (3 months)

 Acquisition of remote imagery (Landsat, ASTER, High Resolution (HR) optical imagery and satellite and airborne radars where available. Flying of UAV surveys if possible.)  Detailed BLEG (Bulk Leach Extractable Gold) sampling of 2nd to 5th order stream and tributaries. Gold particles in epithermal vein mineralisation are typically very fine-grained and are only detected (ppb) by analysing large sieved bulk sediment samples.  Detailed geological mapping (lithology, alteration, mineralisation and structural features) of stream drainages, ridges, access roads and, where safe, historical mine workings.  Rock sampling of stream float, outcrop exposures (grab and channel sampling) and systematic ridge and spur sampling of soils.  20 km of grid-based ground CSAMT (Controlled Source Audio-Frequency Magneto Tellurics) resistivity mapping.  Spectral analysis of rock samples pertaining to alteration mapping.

Details for the estimated budget for the three-month program are presented below in Table 3. The budget does not include any overhead costs.

Table 3: Proposed Phase 1 Ikutawara Budget Ikutawara Budget Items US$ Technical skilled personnel 323,500 Consultants 10,800 Travel 9,000 Accommodation and meals 28,900 Vehicle rental 13,200 Fuel and oil 4,500 Field supplies and expenses 7,500 Ground CSAMT geophysical survey 34,000 Assaying 34,200 Spectral sample analysis 3,000 Cartage and shipment costs 3,500 HSE 2,100 39

Hokkaido representative office (rental, G&A) 9,650 Miscellaneous costs 10,800 Total 494,650

Phase 2: Scout Drilling (1 month)

 Scout drilling (6+ diamond holes totalling 1,200 m) of defined targets using two man-portable diamond drill rigs

Details for the estimated budget for the one-month scout drilling program are presented below in Table 4. This budget includes provision for the drill programs as discussed above, logistical support for the programs, consumables, interpretation of data and the expansion of the number of personnel. The budget does not include any overhead costs.

Table 4: Proposed Phase 2 Ikutawara Budget

Ikutawara Budget Items US$ Technical skilled personnel 101,550 Consultants - Travel 3,000 Accommodation and meals 17,400 Vehicle rental 3,050 Fuel and oil 10,350 Field supplies and expenses 7,000 Diamond drilling running cost 360,000 Drill rig mob and demob costs 20,000 Assaying 16,800 Drilling access, site preparation, site 4,000 rehabilitation Cartage and shipment costs 3,500 Surveying and communications 1,500 HSE 500 CSR (Landowners and local government liaison 2,000 Hokkaido representative office (rental, G&A) 3,150 Miscellaneous costs 2,800 Total 556,600

Phase 2 activities are contingent on the granting of Prospecting Rights by METI and a positive outcome from Phase 1 exploration activities.

CA considers the budget reasonable for the work planned and sufficient to achieve the planned objectives.

27.0 REFERENCES

Austpac Gold Ltd., 1987-94. Company Annual Reports.

Brommecker, R.F, Bourne, B.T, Dobak, P.J, McEwan, C.J, Rowe, R.R, and Zhou, X., 2007. Models and Exploration Methods for Major Gold Deposit Types. Proceedings of Exploration 07: Fifth Decennial International Conference on Mineral Exploration", 2007, p. 691-711.

Clifford Chance., 2012. New mining law for Japan. Article by lawyers Clifford Change, April 2012.

Corbett, G.J., 2002. Epithermal Gold for Explorationists -Australian Institute of Geoscientists Presidents lecture: AIG News No 67, p. 8.

Corbett, G.J., 2004. Epithermal and porphyry gold – Geological models in Pacrim Congress 2004, Adelaide, The Australasian Institute of Mining and Metallurgy, p. 15-23.

Corbett, G.J. and Leach, T.J., 1996. Southwest Pacific Rim Gold-Copper Systems, Structure, Alteration and Mineralization. Workshop Manual.

Davis LPP., 2012. The Mining Act amended for the first time in 61 years. Article by lawyers Davies LLP, June 2012.

Garwin, Hall, Watanabe, 2005. Tectonic Setting, Geology, and Gold and Copper Mineralization in Cenozoic Magmatic Arcs of Southeast Asia and the West Pacific, Economic Geology 100th Anniversary Volume, pp. 891–930. http://www.earthquake.ugs/hazards http://www.empr.gov.bc.ca/mining/geoscience/mineraldepositprofiles: British Columbia Ministry of Energy, Mines and Petroleum Resources. https://www.numo.or.jp/en/reports/pdf/TR-08-03-2.pdf. The Geology and Tectonics of the Tohoku Region.

Lawless, J.V, and White, P.J., 1998. Hydrothermal Mineral Deposits in the Arc Setting. Exploration Based on Mineralization Models. Kingston-Morrison Seminar, Jakarta, 1998.

Maeda, 1998. Volcanic Activity, Hydrothermal Alteration and Epithermal Gold-Silver Mineralisation in the Ryou Mine Area in the Kitami Metallogenic Province, Hokkaido, Japan. Resource Geology, v48, No. 2, pp 105-115, 1998.

Maeda, 1997. K-Ar Age of Mercury Mineralisation and Related Volcanic Activity in the Kitami Metallogenic Province, Hokkaido, Japan. Resource Geology, v47, pp 11-20, 1997.

Maeda, 1990. Mineralisation Ages of Some Epithermal Gold-Silver Vein-Type Deposits in the Central Kitami Mining District of the Kitami Metallogenic Province, Hokkaido, Japan. Mining Geology, v40, pp 17-22, 1990.

Metals Mining Agency Japan, 1990. Translated versions of compiled data on historical underground mine workings, Ikutawara district.

Nishimura & Asahi., 2011. Mining Act Amendment Bill in Japan. Commentary by Mining Act Research Team of Nishimura & Asahi, 2011.

NI 43-101 Standards of Disclosure for Mineral Projects, Form 43-101F1 Technical Report and Related Consequential Amendments, June 24, 2011. 41

Rowe, A.J., 2015. Technical Report on Exploration and Mining Activities carried out on the Ikutawara Area of Northeast Hokkaido, Japan. Southern Arc Minerals Japan Internal Report, December 2015.

Sillitoe, R. H. and Hedenquist, J. W. 2003. Linkages between Volcanotectonic Settings, Ore-Fluid.

Compositions, and Epithermal Precious Metal Deposits: Society of Economic Geologists Special Publication 10, Chapter 18.

Southern Arc Minerals Inc., 2016. Memo on SAMJ Application Flowsheet. 2016 internal SAMI correspondence.

Watanabe, 1996. Genesis of Vein-hosting Fractures in the Kitami Region, Hokkaido, Japan. Resource Geology, v46(3), pp 151-166, 1996.

Yamamoto, 2004. Dense Clustering of Latest Cenozoic Caldera-Like Basins of Central Hokkaido, Japan, Evidenced by Gravimetric Study. Journal of Faculty of Science, Hokkaido University, series 7, Geophysics, vol. 12 no. 2, pp 75-95, 2004.

28.0 DATE AND SIGNATURE PAGE

This report titled “Independent Technical Report on the Geology and Recommended Exploration of the Ikutawara Gold Project, Northeast Hokkaido, Japan” and dated 15 July 2016 was prepared and signed by the following author.

Dated at Jakarta, Indonesia 15 July 2016

“H. J. Campbell”

Hamish J Campbell, B.Sc., FAusIMM Qualified Person

29.0 CERTIFICATE OF QUALIFIED PERSONS

CERTIFICATE HAMISH J CAMPBELL

I, Hamish John Campbell, do hereby certify that:

1. I am an independent Consulting Geologist and Professional Geoscientist, business address 3rd Floor, Graha Krama Yudha, Jalan Warung Jati Barat No. 43, South Jakarta 12760, Indonesia (Tel: +62-21-798 5257) and am employed by Campbell & Associates based in Jakarta, Indonesia.

2. I graduated with a Bachelor of Science (B.Sc.) from the University of Canterbury in 1984. I am a registered Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM No. 209907) and a Member of the Indonesian Association of Geologists (IAGI)

3. I have worked as a geologist for a total of 32 years since my graduation from university. Of this 29 years have been spent in Indonesia working for a variety of junior to large multinational exploration companies, including Dominion Gold Mines, Ashton Group, Freeport, Meekatharra Minerals, Golden Valley Mines NL, Southern Arc Minerals Inc. In this time, I have spanned the spectrum of exploration activities from helicopter winching regional surveys in Papua through to mining feasibility studies. I have been involved in resource successes including Chinese Howley – Northern Territory, Wabu Ridge – Papua and Way Linggo – South Sumatra. For the last 15 years I have through my Indonesian consulting company provided geological services for clients including country representation, project design and implementation of exploration programs, evaluation and assessment of joint venture and acquisition opportunities, along with establishment and administration of local and foreign owned exploration/mining companies.

4. I am responsible for all Sections of this Technical Report. I have visited the Ikutawara Gold Project from 25 to 27 June 2016 and reviewed the epithermal vein systems that were historically mined and prospected, together with interviewing of the in-country geological team.

5. For the purposes of the Technical Report entitled: “Independent Technical Report on the Geology and Recommended Exploration of the Ikutawara Gold Project, Northeast Hokkaido, Japan” dated 15 July 2016, of which I am the author,

6. I am a Qualified Person as defined in National Instrument 43-101 (“the Policy”) and a Competent Person as defined under the JORC code (2012).

7. I have read the Policy and this report is prepared in compliance with its provisions. I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI 43-101") and certify that by reason of my education, affiliation with a professional association (as defined in NI 43- 101) and past relevant work experience, I fulfil the requirement to be a "qualified person" for the purposes of NI 43-101.

8. That, at the effective date of the technical report, to the best of my knowledge, information and belief, the report contains all scientific and technical information that is required to be disclosed in order to make this report not misleading.

9. I have not had prior involvement with the Property that is the subject of the Technical Report. I have no direct or indirect interest in the Property that is the subject of this report. I do not hold, directly or indirectly, any shares in Sky Ridge Resources Ltd, Southern Arc Minerals Inc. or Southern Arc Minerals Japan, or any other identity with interests in the Ikutawara Gold Project. I am fully independent of the issuer applying all of the tests in section 1.5 of NI 43-101.

10. I do not hold any direct interest in any mineral tenements in Japan. I will receive only normal consulting fees for the preparation of this report.

Dated at Jakarta this 15 July 2016.

“H. J. Campbell”

Hamish Campbell B.Sc., FAusIMM Qualified Person

APPENDICES

APPENDIX I

IKUTAWARA PROSPECTING LICENSE APPLICATION COORDINATES

UTM Coordinate Project SAMJ No METI No. Zone 54 N area Easting Northing Ikutawara 37 26-63 697014.4 4874803.43 Ikutawara 37 26-63 698884.3 4874831.76 Ikutawara 37 26-63 698912.6 4872961.86 Ikutawara 37 26-63 697042.7 4872933.54 Ikutawara 35 26-61 698884.3 4874831.76 Ikutawara 35 26-61 700754.2 4874860.10 Ikutawara 35 26-61 700782.5 4872990.20 Ikutawara 35 26-61 698912.6 4872961.86 Ikutawara 34 26-60 700754.2 4874860.10 Ikutawara 34 26-60 702624.1 4874888.42 Ikutawara 34 26-60 702652.4 4873018.50 Ikutawara 34 26-60 700782.5 4872990.20 Ikutawara 38 27-2 698912.6 4872961.86 Ikutawara 38 27-2 698912.6 4872961.86 Ikutawara 38 27-2 698940.9 4871091.94 Ikutawara 38 27-2 697071.0 4871063.63 Ikutawara 25 26-51 698912.6 4872961.86 Ikutawara 25 26-51 700782.5 4872990.20 Ikutawara 25 26-51 700810.8 4871120.26 Ikutawara 25 26-51 698940.9 4871091.94 Ikutawara 33 26-59 700782.5 4872990.20 Ikutawara 33 26-59 702652.4 4873018.50 Ikutawara 33 26-59 702680.8 4871148.57 Ikutawara 33 26-59 700810.8 4871120.26 Ikutawara 39 26-65 702680.8 4871148.57 Ikutawara 39 26-65 704550.8 4871176.87 Ikutawara 39 26-65 704579.1 4869306.93 Ikutawara 39 26-65 702709.2 4869278.63 Ikutawara 30 26-56 704550.8 4871176.87 Ikutawara 30 26-56 706420.7 4871205.17 Ikutawara 30 26-56 706449.0 4869335.23 Ikutawara 30 26-56 704579.1 4869306.93 Ikutawara 10 26-37 702709.2 4869278.63 Ikutawara 10 26-37 704579.1 4869306.93 Ikutawara 10 26-37 704607.4 4867437.00 Ikutawara 10 26-37 702737.5 4867408.69 Ikutawara 27 26-53 704579.1 4869306.93 Ikutawara 27 26-53 706449.0 4869335.23 Ikutawara 27 26-53 706477.3 4867465.30 Ikutawara 27 26-53 704607.4 4867437.00

Ikutawara 28 26-54 706449.0 4869335.23 Ikutawara 28 26-54 708318.9 4869363.55 Ikutawara 28 26-54 708347.3 4867493.62 Ikutawara 28 26-54 706477.3 4867465.30 Ikutawara 20 26-47 704607.4 4867437.00 Ikutawara 20 26-47 706477.3 4867465.30 Ikutawara 20 26-47 706505.6 4865595.39 Ikutawara 20 26-47 704635.7 4865567.09 Ikutawara 36 26-62 704664.0 4863697.17 Ikutawara 36 26-62 706533.9 4863725.47 Ikutawara 36 26-62 706562.2 4861855.56 Ikutawara 36 26-62 704692.2 4861827.24 Ikutawara 31 26-57 706401.8 4871204.36 Ikutawara 31 26-57 708271.5 4871232.98 Ikutawara 31 26-57 708299.1 4869363.25 Ikutawara 31 26-57 706429.4 4869334.65 Ikutawara 32 26-58 708271.5 4871232.98 Ikutawara 32 26-58 710141.2 4871261.62 Ikutawara 32 26-58 710169.9 4869390.91 Ikutawara 32 26-58 708299.1 4869363.25 Ikutawara 29 26-55 708299.1 4869363.25 Ikutawara 29 26-55 710169.9 4869390.91 Ikutawara 29 26-55 710197.5 4867521.17 Ikutawara 29 26-55 708327.7 4867493.58 Ikutawara 22 26-48 706458.0 4867465.00 Ikutawara 22 26-48 708327.7 4867493.58 Ikutawara 22 26-48 708356.3 4865622.92 Ikutawara 22 26-48 706486.6 4865595.35 Ikutawara 26 26-52 708327.7 4867493.58 Ikutawara 26 26-52 710197.5 4867521.17 Ikutawara 26 26-52 710226.0 4865651.49 Ikutawara 26 26-52 708356.3 4865622.92 Ikutawara 23 26-49 706486.6 4865595.35 Ikutawara 23 26-49 708356.3 4865622.92 Ikutawara 23 26-49 708384.8 4863753.25 Ikutawara 23 26-49 706514.1 4863724.66 Ikutawara 24 26-50 708356.3 4865622.92 Ikutawara 24 26-50 710226.0 4865651.49 Ikutawara 24 26-50 710254.5 4863781.80 Ikutawara 24 26-50 708384.8 4863753.25 Ikutawara 3 26-30 706514.1 4863724.66 Ikutawara 3 26-30 708384.8 4863753.25 Ikutawara 3 26-30 708412.3 4861883.56 Ikutawara 3 26-30 706542.6 4861855.01 Ikutawara 4 26-31 708384.8 4863753.25 Ikutawara 4 26-31 710254.5 4863781.80

Ikutawara 4 26-31 710283.0 4861912.11 Ikutawara 4 26-31 708412.3 4861883.56 Ikutawara 8 26-35 706542.6 4861855.01 Ikutawara 8 26-35 708412.3 4861883.56 Ikutawara 8 26-35 708440.8 4860013.92 Ikutawara 8 26-35 706571.1 4859985.39 Ikutawara 9 26-36 708412.3 4861883.56 Ikutawara 9 26-36 710283.0 4861912.11 Ikutawara 9 26-36 710310.6 4860041.40 Ikutawara 9 26-36 708440.8 4860013.92 Ikutawara 6 26-33 706571.1 4859985.39 Ikutawara 6 26-33 708440.8 4860013.92 Ikutawara 6 26-33 708469.3 4858143.27 Ikutawara 6 26-33 706599.6 4858114.75 Ikutawara 7 26-34 708440.8 4860013.92 Ikutawara 7 26-34 710310.6 4860041.40 Ikutawara 7 26-34 710339.0 4858171.70 Ikutawara 7 26-34 708469.3 4858143.27 Ikutawara 5 26-32 710310.6 4860041.40 Ikutawara 5 26-32 712181.3 4860069.91 Ikutawara 5 26-32 712208.8 4858200.15 Ikutawara 5 26-32 710339.0 4858171.70 Ikutawara 13 26-40 712181.3 4860069.91 Ikutawara 13 26-40 714051.1 4860098.38 Ikutawara 13 26-40 714079.5 4858228.64 Ikutawara 13 26-40 712208.8 4858200.15 Ikutawara 18 26-45 706599.6 4858114.75 Ikutawara 18 26-45 708469.3 4858143.27 Ikutawara 18 26-45 708497.7 4856273.57 Ikutawara 18 26-45 706627.0 4856245.05 Ikutawara 19 26-46 708469.3 4858143.27 Ikutawara 19 26-46 710339.0 4858171.70 Ikutawara 19 26-46 710367.4 4856301.99 Ikutawara 19 26-46 708497.7 4856273.57 Ikutawara 17 26-44 710339.0 4858171.70 Ikutawara 17 26-44 712208.8 4858200.15 Ikutawara 17 26-44 712237.2 4856330.42 Ikutawara 17 26-44 710367.4 4856301.99 Ikutawara 12 27-1 712208.8 4858200.15 Ikutawara 12 27-1 714079.5 4858228.64 Ikutawara 12 27-1 714107.0 4856357.85 Ikutawara 12 27-1 712237.2 4856330.42 Ikutawara 16 26-43 706627.0 4856245.05 Ikutawara 16 26-43 708497.7 4856273.57 Ikutawara 16 26-43 708526.1 4854403.87 Ikutawara 16 26-43 706655.4 4854375.37

Ikutawara 14 26-41 708497.7 4856273.57 Ikutawara 14 26-41 710367.4 4856301.99 Ikutawara 14 26-41 710395.8 4854432.27 Ikutawara 14 26-41 708526.1 4854403.87 Ikutawara 15 26-42 710367.4 4856301.99 Ikutawara 15 26-42 712237.2 4856330.42 Ikutawara 15 26-42 712265.6 4854459.68 Ikutawara 15 26-42 710395.8 4854432.27 Ikutawara 11 26-38 712237.2 4856330.42 Ikutawara 11 26-38 712237.2 4856330.42 Ikutawara 11 26-38 714135.4 4854488.08 Ikutawara 11 26-38 712265.6 4854459.68 Ikutawara 2 26-29 708526.1 4854403.87 Ikutawara 2 26-29 710395.8 4854432.27 Ikutawara 2 26-29 710424.2 4852561.54 Ikutawara 2 26-29 708553.5 4852534.09 Ikutawara 1 26-28 710395.8 4854432.27 Ikutawara 1 26-28 712265.6 4854459.68 Ikutawara 1 26-28 712294.0 4852589.92 Ikutawara 1 26-28 710424.2 4852561.54