GM 62026 ASSESSMENT REPORT ON THE HITMEN PROPERTY Assessment Report on the

Hitmen Property

Rea.n~a 6 ► ar 4+04urotteS Nunavik, Quebec • 2 s tow. NTS 35H/12 2005 Bureau Regional Val -d'Or

Prepared for:

Canadian Royalties Inc. GM 6 2026

Prepared by:

Jean Bernard, B.Sc.

November 04, 2005

05332009 TABLE OF CONTENTS

1.0 INTRODUCTION 1

2.0 PROPERTY DESCRIPTION AND LOCATION 1

3.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND — PHYSIOGRAPHY 6

4.0 REGIONAL GEOLOGY 7

5.0 PROPERTY GEOLOGY 9

6.0 2005 CANADIAN ROYALTIES EXPLORATION PROGRAM 9

7.0 ECONOMIC GEOLOGY 10

— 7.1 PROSPECTING 10

7.2 SAMPLING METHOD AND APPROACH 10

10.0 CONCLUSION AND RECOMMENDATION 12

LIST OF FIGURES

Figure 1 Location Map 2 Figure 2 Mineral Deposits and Property Locations, Ungava Area 3 Figure 3 Regional Geology and Mineral Deposits, Ungava Area 4

LIST OF TABLES

Table 1 List of Map Designated Units, Hitmen Property 5 Table 2 Stratigraphic Formations, Cape Smith Belt 8 Table 3 Summary of Field Work Completed in 2005 9 Table 4 2005 Grab Sample Assay Results, Hitmen Property 11

APPENDIX I 2005 Grab Assay Certificates

i

1 MAPS IN BACK POCKET

MAP 1 Map Designated Units, Geology, Grab Samples.

ii 1.0 INTRODUCTION

The Hitmen Property is located on the Ungava Peninsula in the Nunavik region of northern Quebec on claim map 35H12, approximately 100 kilometres west-southwest of the coastal village of Kangiqsujuaq (Wakeham Bay).

During July of 2005 to end of September of 2005, Canadian Royalties Inc. completed an airborne geophysical survey, reconnaissance prospecting, gridding, geological mapping, ground geophysics on the Blazers Property,

In July 2005, Areoquest Ltd carried out a helicopter-borne electromagnetic-magnetic survey on the South Trend Property. The HLEM survey generated numerous anomalies that followed up on by the Canadian Royalties Inc exploration crew. Following a comprehensive geological and historical exploration work compilation, a grab sampling-prospecting program started in July 2005. Prospecting encountered sulphide mineralization in gabbro, pyroxenite and peridotite in the vicinity of the Hitmen Property.

Jean Bernard, B.Sc, of Thetford Mines, Quebec, prepared the report. Jean Bernard completed 10 weeks of fieldwork as a geological consultant for Canadian Royalties on adjacent properties during the 2005 exploration program, he did visit the Hitmen Property. Todd Keast, P.Geo managed the 2005 exploration programs on the Hitmen Property for Canadian Royalties Inc.

2.0 PROPERTY DESCRIPTION AND LOCATION

The Hitmen Property is located approximately 100 kilometres west-southwest of the village of Kangiqsujuaq (Wakeham Bay), on the Ungava Peninsula in the Northern Québec region of Nunavik (Figures 1 and 2). The center of the property is located at UTM Nad 83 (Zone 18) — coordinates 560200E and 6830000N. The property is situated on claim map 35H12.

The property consists of 16 Map Designated Units (MDU), which together encompass an area of 656,96 hectares (ha). Canadian Royalties has a 100% interest in the property. The MDUs are contiguous and form a irregular rectangular block that is 4,4 kilometres in an east-west direction by 1,85 kilometres in a north-south direction (Map 1). A detailed description of the property with claim numbers, claim size, specific claim location, claim recording dates, claim expiry dates, work in reserve, and work required is included in Table 1.

-1- •n„ .~ \ ~~~ \ 1.

Igaluit fl Strait \ ~•~ t \ --\ \ \\

Sallult

Kangiqsujuaq Hitmen Property

Ungava LABRADOR Hudson Bay SEA Bay

1 ^ I Kuujjuaq

t VOISEY'S i BAY t t James SUPERIOR Bay

GRENVILLE

CANADIAN ROYALTIES Inc.

Proterozoic Rocks Granitoid Rocks CANADIAN ROYALTIES INC. TSX-V:CZZ Superior Province Grenville Province LOCATION MAP NUNAVIK, QUEBEC 300 kilometres FIGURE: 1 Canadian Royalties' Raglan South Trend Property Interests (CZZ)

1 Phoenix 20 Greyhounds 2 Expo Ungava (Ungava Minerals) 21 Colts (Boulder Option) 3 New Foreurs West and East 22 Otters 4 Wheat Kings 23 Sting 5 Hitmen 24 Cougars 6 67's 25 Vicenza 7 Pats 26 Platters 8 Expo-Ungava West 27 Arbitration 9 Rocket 28 Giants 10 Olympiques 29 Breakaway (Boulder Option) 11 Rebels 30 Gamache (Montoro Option) 12 & 13 Crocodile Tears East and West 31 South Trend (Montoro JV) 14 Ron Roy West 32 Sub. (Novawest 3% NSR) 15 Giraffe 33 Lac Nuvilik (Novawest 3% NSR) 16 Lac Felix NE (Little Mountain Option) 34 Eastbridge (Novawest 3% NSR) 17 Generals (Little Mountain Option) 35 Delta West (Novawest 3% NSR) 18 Blazers 36 Delta (Novawest 3% NSR) 19 Ice 37 Grey Goose HUDSON S STRAIT

FALCONBRIDGE LTD Zones 13 RAGLAN MINE ,r-' KING G . ORGE BAY Katinniq and 14 Boundary Deposit (DOUGLA ' HARBOUR) ❑ \ Deposit New East Dona dson Cross Lake "` Deposit Deposit U Deposit KANGIQSUJUAQ AKEHAM BAY)

FALCONBRIDGE / MELKIOR DELTA DEPOSIT

MESAMAX DEPOSIT —-1

Tootoo ROAD PERIOOTITE OR PYROXENITE Méquillon AIRPORT 100% CZZ ▪Q CZZ ROYALTY (32,33,305,M EXPO-UNGAVA DEPOSIT +Jf SEAPORT as CZ2 OPTION /JV PROPERTY (2,31) O CZZ DEPOSIT • CZZ 3N PARTY OPTION (21,25,30) 30 KILOMETRES * CZZ NS cu SHOWINGS O FALCONBRIDGE Ç CANADIAN ROYALTIES Inc. © OTHER DEPOSIT OTHER CLAIM HOLDERS From Thalenhorst and Keast, 3; Modified May 2005 by L.Plante Figure 2 - Mineral Deposits and Property Locations - Ungava Area Granitic Rocks BOUNDARY Hudson KATINNIQ DEPOSIT- DEPOSITS Bay Ç 6 850 000N

EAST LAKE DEPOSITS Zone 5~ BD ~P AOS~ IT~S~ ~ MA A 0 ST DONALDSON Ontario DEPOSITS * 1 NEW EAST DEPOSITS CROSS LAKE DEPOSITS Zone 13 - 14 DEPOSITS ,i/ i.

HITMEN FALCONBRIDGE/ MELKIOR PROPERLY DELTA DEPOSIT

TK DEPOSIT

MESAMAX DEPOSIT EXPO-UNGAVA DEPOSIT

LEGEND HITMEN PROPERTY

Cu-Ni Deposits WATTS GROUP Cu-Ni Showing SPARTAN GROUP Peridotite, Gabbro CHUKOTAT GROUP CANADIAN ROYALTIES Inc. Group Contact POVUNGNITUK GROUP

CZZ Royalty LAMARCHE GROUP Geology modified from : Géologie de la région de la fosse de l' Ungava; DPV-897 100% CZZ Updated : Feb 26, 2003 by C. Belzil and March 2003 by L Plante CZZ Joint Venture (Expo-Ungava) 0 10 20 30 Modified : Feb 2005 by P Pope Kilometres Figure 3 - REGIONAL GEOLOGY AND MINERAL DEPOSITS, UNGAVA AREA

CTE_Reg_GeolFigure3.cdr 2005/11/21 m.b. Table 1 List of Map Designated Units, Hitman

MDU Area NTS Range Lot Date Due Date Work in Work No. (hectares) MapSheet Recorded Reserve Required 1027896 41.06 35H12 12 16 19-Sep-01 18-Sep-05 0 $400.00 1027897 41.06 35H12 12 17 19-Sep-01 18-Sep-05 0 $400.00 1027898 41.06 35H12 12 18 19-Sep-01 18-Sep-05 0 $400.00 1027899 41.06 35H12 12 19 19-Sep-01 18-Sep-05 0 $400.00 1027900 41.06 35H12 12 20 19-Sep-01 18-Sep-05 0 $400.00 1027901 41.06 35H12 12 21 19-Sep-01 18-Sep-05 0 $400.00 1027902 41.06 35H12 12 22 19-Sep-01 18-Sep-05 0 $400.00 1027903 41.06 35H12 12 23 19-Sep-01 18-Sep-05 0 $400.00 1027904 41.06 35H12 12 24 19-Sep-01 18-Sep-05 0 $400.00 1027905 41.06 35H12 12 25 19-Sep-01 18-Sep-05 0 $400.00 1027906 41.05 35H12 13 20 19-Sep-01 18-Sep-05 0 $400.00 1027907 41.05 35H12 13 21 19-Sep-01 18-Sep-05 0 $400.00 1027908 41.05 35H12 13 22 19-Sep-01 18-Sep-05 0 $400.00 1027909 41.05 35H12 13 23 19-Sep-01 18-Sep-05 0 $400.00 1027910 41.05 35H12 13 24 19-Sep-01 18-Sep-05 0 $400.00 1027961 41.05 35H12 13 25 19-Sep-01 18-Sep-05 0 $400.00 3.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Hitmen Property is located on a broad plateau, in an area of gently rolling topography, north of the tree line, within the Povungnituk Range. The topography is characterized by moderate to steep east-west trending ridges and valleys. Vegetation consists of sparse shrubs, plants and grass growing no more than 25 centimetres in height. Outcrop ridges are generally bare rock, devoid of vegetation, where outcrop or subcrop is commonly reduced to frost heaved blocks and boulders. The low areas between outcrop ridges are typically flat, grass-covered tundra, bisected by small streams. The entire area is affected by permafrost. The elevation is 365-550 metres above sea level and the relief is subdued to moderate ranging from 10 metres to 75 metres. Overburden in the area is generally less the 20 metres in thickness (from drill hole information).

The climate of the area is harsh, with summer (July and early August) temperatures ranging between 0°C and 20°C and winter temperatures ranging between 0°C and -50°C. Snow can accumulate in any month of the year. Sheltered ridges often remain snow covered throughout the year. The area is subject to strong wind conditions and periods of dense fog. The optimal field season for surface exploration activities are the months of June, July, August and the early part of September.

The property can be reached by helicopter from the coastal communities of Kuujjuaq, Salluit, and Kangiqsujuaq (Wakeham Bay), located 120 kilometres east-northeast (Figures 1 and 2). All of these villages are accessed by daily air service from Montreal by First Air (Kuujjuaq) or Air Inuit (Salluit and Kangiqsujuaq). Air service from Salluit also connects to the community of Radisson to the south in the James Bay hydroelectric development area. Heavy equipment, fuel and freight can be shipped to these coastal communities by boat (sealift) between the months of July and September.

A 16 person exploration camp located on the south shore of Kenty Lake, 45 kilometres west of the property, serves as the base camp for work in this area. The Donaldson airstrip, located 40 kilometres northeast of the property, is operated year round by Falconbridge Limited. Permission to land at the Donaldson airstrip may be obtained for scheduled charter flights and Canadian Royalties has had ongoing cooperation with Falconbridge. Personnel and supplies are moved by helicopter from Donaldson to the Kenty Lake camp. Daily fieldwork on the property requires helicopter support.

-6- 4.0 REGIONAL GEOLOGY

The Cape Smith Belt is an east-west trending, Proterozoic aged fold belt in the Ungava Peninsula of northern Quebec (Figure 1). The Cape Smith Belt separates the Archean Superior Province to the south and the Proterozoic Churchill Province to the north (Hynes and Francis, 1982; Hoffman, 1990). The Cape Smith Belt consists of a folded volcano-sedimentary and plutonic sequence divided into two lithostratigraphic domains. The North Domain is dominated primarily by volcanic rocks of the Watts Group, which has been interpreted as an Island-Arc accretionary complex. The South Domain includes the Lamarche, Povungnituk, and Chukotat Groups, and is collectively interpreted as an extensional sequence grading into oceanic crust. The Hitmen Property is located in the south-central part of the South Domain (Figure 3). The boundary between the North and South domains is marked by the regional scale Bergeron Fault, considered to be a sutured subduction zone (Bergeron, 1957 - 1959; Lamothe et al., 1983; Lamothe, 1986). The history of the basin is believed to consist of a protracted regime of extension followed by sea-floor spreading and subsequent convergent tectonics marked by folding and thrusting. The following stratigraphic table outlines the major formations of the South Domain. Table 2 -Stratigraphie Formations, Cape Smith Belt

Churchill Province

Cape Smith Province (Proterozoic) Northern Domain (not discussed) Southern Domain Chukotat Group — Structurally sits above the Povungnituk Group. Pillowed basalts grading from olivine rich flows to pyroxene basalts. Povungnituk Group — Nuvilik Formation - Local lenses of volcaniclastics overlain by greywacke and graphitic and sulphidic sediments. Cecilia Formation — Local lenses of volcaniclastics (basic and felsic), locally alkalic, with local felsic domes, topped by greywacke and siltstone. Beauparlant Formation — Continental tholeiitic basalt with intercalations of siltstone and volcaniclastics. Dumas Formation - Basal Sediments cut by diabase sills, overlain by massive tholeiitic basalt. Lamarche Group — Conglomerate, sandstone, dolomite, quartzite, phyllite, and local iron formation. Lamarche group overlies Archean Gneiss of the Superior Province.

Superior Province

The Povungnituk Group is composed of tholeiitic basalts and fine-grained sediments intruded by mafic to ultramafic dykes and sills, while the Chukotat Group is characterized by komatiitic olivine basalts, fine-grained sediments and mafic to ultramafic intrusive rocks. At the base of the Chukotat Group occurs a 1.5 to 2 kilometre wide sub-unit (Transition Zone) which contains a series of ultramafic subvolcanic sills and/or flows believed to correspond to the feeder system for the Chukotat volcanic series. Both geological and geochemical evidence suggests that the ultramafic sills at the base of the Chukotat and the Chukotat basalts were generated from a unique parent magma (Picard et al. 1994). The Transition Zone also corresponds to the Raglan Horizon which hosts most of the Ni-Cu-PGE deposits on Falconbridge's Raglan Property, including the Katinniq Deposit.

One important consideration for the framework of the property is the absence of reliable estimations of strain partition within the fold belt. Preliminary estimates of the total amount of shortening undergone by the Circum-Ungava Belt are in the order of 30%, with a generally recognized tendency for more intense deformation further north (Davidson 1972). This figure is quite low for a fold and thrust belt. It is not possible at the present time to estimate the importance of displacement, which has occurred, if any, along any given fault.

-8- 5.0 PROPERTY GEOLOGY

The property is located in the Povungnituk group, just north of the contact with the Lamarche Group. The contact between the two groups is interpreted to be located along the Povungnituk River (in that specific area), which seems to be the site of major faulting.

The rocks of the property are subject to at least two known folding directions. An anticlinal with a north-north-west axis is superposed over a ± east-north-east folding pattern. Budkewitsch, and Lamothe 1986, however describe three deformation phases in the general area. Thrust faults are interpreted to occur in the north part of the property and along the Povungnituk River.

The major part of the property (MAP 1) is reported to be underlained by graphitic siltstones and mafic volcanics. No gabbroic and ultramafic sills and intrusives are reported to occur within the property.

6.0 2005 CANADIAN ROYALTIES EXPLORATION PROGRAM

Between July and August of 2005, Canadian Royalties carried out an exploration program focussed on locating new showings associated with ultramafic rocks on the property. The occurrence of encouraging sulphide mineralization associated with ultramafic rocks in the vicinity of the HLEM anomalies was considered encouraging enough by Canadian Royalties to warrant a follow-up ground exploration program.

The follow-up ground exploration program, consisting of gridding and ground geophysical surveys, was carried out between July and August of 2005. The exploration crew, consisting of Myles Johnson B.Sc., Jean Bernard B.Sc (author of this report), Randon Ferderber (prospector) and Bob Bailey (prospector), was based out of the Kenty Lake camp and flown to the project by a Bell Long Ranger helicopter under charter from Gateway Helicopters. Myles Johnson and Todd Keast P. Geo. supervised the 2005 exploration program. Langis Plante a geophysist from Canadian Royalties was based at the Expo camp and interpreted the geophysical survey results.

A summary of field work completed during the 2005 program is shown in Table 3. Grab sample locations are shown on Map 1 assay results are included in Table 4 and assay certificates in Appendix I.

Table 3- Summary of Field Work Completed in 2005

PROPERTY PROSPECTING MAN DAYS GRAB SAMPLES

Hitmen 2 5

TOTAL 2 5

-9- 7.0 ECONOMIC GEOLOGY

7.1 PROSPECTING

In July 2005, Areoquest Ltd carried out a helicopter-borne geophysical survey on the Hitmen Property. This HLEM survey has been generated numerous anomalies that were interpreted by the Canadian Royalties Inc exploration crew. Following a comprehensive geological and historical exploration work compilation, a grab sampling-prospecting was carried out in August 2005. Prospecting encountered sulphide mineralization in gabbro, outcrops on the Hitmen Property.

Five (5) samples were collected from the property (MAP 1). The grab samples corresponded to a basalt and gabbroic rock with 2-3% Po and 1% chalcopyrite. All the grab samples assays results returned background values (Table 4).

7.2 SAMPLING METHOD AND APPROACH

Prospecting and grab sampling was focused on locating mineralization in outcrop or frost-heaved boulders, which offer an effective sampling medium of the sub-crop geology. 5 Grab samples taken during the 2005 exploration programs were located using hand-held non-differential GPS units in the UTM Nad 83 Zone 18 coordinate system (Table 4). ► I 1 I I I I I I

Grid Grid UTM UTM Sample # Rock Type Sulphides Grid/Showing Easting Northing Ni % Cu % Co % Au g/t Pt g/t Pd g/t Easting Northing (NAD 831 (NAD 831 31474 Gabbro 2-3%Po Hitmen 562900 6830078 0.01 0.01 0.01 0.02 0.02 0'.02 31475 Gabbro 2%Po,Trace-1%Cpy Hitmen 562928 6830087 0.01 0.02 0.01 0.02 0.02 0.02 31476 Volcanic 2-3%Po Hitmen 562946 6830073 0.01 0.01 0.01 0.02 0.02 0.02 31287 Gabbro 2% Po, tr.-1% Cpy Hitmen 562892 6830076 0.01 0.01 0.01 0.02 0.02 0.02 31288 Gabbro 1% Po, tr.-1% Cpy Hitmen 562814 6830076 0.01 0.01 0.01 0.02 0.02 0.02

Table 4 2005 Grab Sample Assay Results, Hitmen Property

10.0 CONCLUSION AND RECOMMENDATION

The 2005 Canadian Royalties exploration program was successful in identifying mafic and ultramafic rocks on the Hitmen Property which have the potential of hosting Ni-Cu-PGE mineralization. The grab samples assays results returned only background values.

It is recommended to prospect along the gabbro sill that intrudes the basalt cover of the Hitmen Property. Historical work (GM 45717 + GM46905) and the 2005 prospecting encountered trace Ni,Cu,Pt,Pd values in the gabbro sill.

Consideration should be given to a geochemical soil survey over parts of the property following a careful study of the Areoquest Data.

Jean Bernard, B.Sc.

-12- APPENDIX I Grab Assay Certificates

ALS Chemex CANADIAN ROYALTIES INC. Page: 1 152 CHEMIN DE LA MINE ECOLE Finalized 3: 6-SEP-2005 EXCELLENCE IN ANALYTICAL CHEMISTRY ALS Canada Ltd. VAL D'OR QC J9P 7B6 Account: TOZ 212 Brooksbank Avenue North Vancouver 8C V7J 2C1 ALS Phone: 604 984 0221 Fax: 604 984 0218 www.alschemex.com

CERTIFICATE V005067429 SAMPLE PREPARATION ALS CODE DESCRIPTION Project: UNGAVA WEI-21 Received Sample Weight P.O. No.: BAG-01 Bulk Master for Storage BAG-03 Store In nitrogen filled pall This report is for 31 Rock samples submitted to our lab in Val d'Or, QC, Canada on 15-AUG-2005. LOG-22 Sample login - Rcd w/o BarCode CRU-32 Fine Crushing 90% <2mm The following have access to data associated with this certificate: SPL-21 Split sample - riffle splitter TODD KEAST GLEN SCHLYTER PUL-32 Pulverize 1000g to 85% < 75 urn

ANALYTICAL PROCEDURES ALS CODE DESCRIPTION INSTRUMENT PGM-ICP27 Ore grade Pt, Pd and Au by ICP ICP-AES ME-ICP81 ICP Fusion - Ore Grade ICP-AES

To: CANADIAN ROYALTIES INC. ATTN: TODD KEAST 152 CHEMIN DE LA MINE ECOLE Pi/ /Y1on VAL D'OR QC J9P 7B6

This is the Final Report and supersedes any preliminary report with this certificate number. Results apply to samples as submitted. All pages of this report have been checked and approved for release. Signature:

: CANADIAN ROYALTIES INC. Page: 2 -.A ALS Chemex 152 CHEMIN DE LA MINE ECOLE To Pages:2 (A) EXCELLENCE IN ANALYTICAL CHEMISTRY VAL D'OR QC J9P 786 Finalized Lite: 64e4, ALS Canada Ltd. 400 Account: T02 212 Brooksbank Avenue North Vancouver BC V7J 2C1 Phone: 804 984 0221 Fax: 604 984 0218 www.alschemex.com Project: UNGAVA CERTIFICATE OF ANALYSIS V005067429

Mathod WEI-21 PGM-ICP27 PGM-ICP27 PGM-ICP27 ME-ICP81 ME-ICP81 ME-ICP81 ME-ICP81 ME-ICP81 ME-ICP81 ME-ICP81 ME-ICP81 Analyto Raced Wt. Au Pt Pd As Co Cr Cu Fe Mg NI S Unita kg ppm ppm ppm % % % % % % % % Sample Description LoR , , 0.03 0.03 0.03 0.01 0.002 0.01 0.005 0.05 0.01 0.005 0.01

•

,ti

s'r

31287 1.68 <0.03 <0.03 <0.03 <0.01 0.005 0.02 0.010 9.18 3.91 0.007 0.21 31288 i 03 <0.03 <0.03 <0.01 0.007 0.03 0.011 9.37 4.28 0.010 0.10

ALS Chemex : CANADIAN ROYALTIES INC. Page: 1 152 CHEMIN DE LA MINE ECOLE Finalized .: 5-SEP-2005 EXCELLENCE IN ANALYTICAL CHEMISTRY ALS Canada Ltd. VAL D'OR QC J9P 786 Accnunt: TOZ 212 Brooksbank Avenue North Vancouver BC V7J 2C1 Phone: 604 984 0221 Fax. 604 984 0218 www.alschemex.com 13(q(o5.

CERTIFICATE V005067631 SAMPLE PREPARATION ALS CODE DESCRIPTION Project: UNGAVA WEI-21 Received Sample Weight P.O. No.: BAG-01 Bulk Master for Storage BAG-03 Store in nitrogen filled pail This report is for 40 Rock samples submitted to our lab in Val d'Or, QC, Canada on 15-AUG-2005. LOG-22 Sample login - Rcd w/o BarCode CRU-32 Fine Crushing 90% <2mm The following have access to data associated with this certificate: SPL-21 Split sample - riffle splitter TODD KEAST GLEN SCHLYTER PUL-32 Pulverize 1000g to 85% < 75 urn

ANALYTICAL PROCEDURES ALS CODE DESCRIPTION INSTRUMENT PGM-ICP27 Ore grade Pt, Pd and Au by ICP ICP-AES ME-ICP81 ICP Fusion - Ore Grade FCP-AES

To: CANADIAN ROYALTIES INC. 0.11mtn ATTN: TODD KEAST 152 CHEMIN DE LA MINE ECOLE VAL D'OR QC J9P 7B6

This is the Final Report and supersedes any preliminary report with this certificate number. Results apply to samples as submitted. All pages of this report have been checked and approved for release. Signature:

I I I L.;- LANAI:HAN ROYALTIES INC. Page: 2 - ,.'u- pirimmex 152 CHEMIN DE LA MINE ECOLE tc Pities: 2 (A; EXCELLENCE IN ANALYTICAL CHEMISTRY VAL D'OR (1C J9P 7B6 ALB Canada Ltd. Finalized Lkate: 5-SEP-2005 212 Brookebenk Avenue Account: 102 North Vancouver BC VT./ 2C1 Phone: 604 984 0221 Fax: 604 984 0218 www.alschemexcom Project: UNGAVA CERTIFICATE OF ANALYSIS V005067631,44,/,

Method WEI-21 PGM-ICP27 PGM-10527 PGM-ICP27 ME-ICP81 ME4CP81 ME4CP81 ME-ICP81 ME-ICP81 ME4CP81 ME4CP81 ME-ICP81 Affaire Recvd Wt. Au Pt Pd As Co Cr Cu Fe Mg Ni s units kg ppm ppm ppm 1/4 ample Mescriptlen LOR 0.02 0.03 0.03 0.03 0.01 0.002 0.01 0.005 0.05 0.01 0.005 0.01 t 1111111 ill 11111111111 111111111111111 111111111M

31474 1.76 <0.03 <0.03 <0.03 -40.01 0.006 0.03 0,011 10.15 5.03 0.009 0.48 31475 2.22 <0.03 <0.03 <0.03 <0.01 0,005 0.02 0R15 9.18 4.22 0.009 0.32 31476 1.80 <0.03 <0.03 <0.03 <0.0 0.03 0 9 5 3,37 0.009 1.12

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