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Report of 2002,2003 Exploration Program on NORTH AMERICAN GEM INCORPORATED^

Crayfish Property Haines Township Thunder Bay Mining Division, N.T.SL 52B/09

April, 2003 Desmond Cullen Thunder Bay, Ontario H.B. Se., Geology A.P.G.O Todd Maitland

52B09NW2017 2.25595 HAINES 010 TABLE OF CONTENTS

1.0 Introduction and Terms of Reference...... l

2.0 Property Description and Location ...... l

3.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography...... 3 4.0 Property History...... 5

5.0 Geological Setting...... 7 5.1 Regional Geology...... 7 5.2 Regional Mineralization and Deposit Types...... 9 5.3 Property Geology...... 10

6.0 Exploration...... 13

7.0 Interpretation and Conclusions...... 15 8.0 Recommendations...... 16 8.1 Proposed Budget...... 17 9.0 References...... 18 List of Figures Figure 1: Regional Location Map...... 2 Figure 2: Claim Map...... 4 Figure 3: Regional PGE Occurrences and Geology...... 8 Figure 4: Property Geology...... 11 Figure 5: Peninsula Showing-Samples...... 14 Figure 6: VLF-EM Profile Map...... In Pocket Figure 7: Total Field Magnetic Map...... In Pocket

List of Tables Table 1. Crayfish Property Claims...... 3 Table 2: Table of Lithological Units for the Area...... 12

List of Appendices Appendix I: Assay Results Appendix II: Assay Certificates North American Gem Inc. Crayfish property LO INTRODUCTIONand TERMSqtREFERENCE

Clark Exploration Consulting of Thunder Bay, Ontario was contracted by North American Gem Inc. of Calgary, Alberta to establish a grid and conduct a magnetic and VLF-EM survey as well as author a report to evaluate and provide recommendations for exploration on the Crayfish property. The report and recommendations are based on:

l/ Data and work records provided by J. Hackl; 21 Public data archived at the Ministry of Northern Development and Mines, Geologist©s Office, Thunder Bay, Ontario; 3/ A personal site visit by the author to the property on September 25, 2001. 4/ The geophysical surveys

The Crayfish property has shear- and fracture-hosted pyrite and chalcopyrite within the Haines Gabbro-Anorthosite complex. This mineralization is associated with significant copper-gold- platinum and palladium values. The main target area on the property has historically been known as the Peninsula showing. During the author©s property visit, 6 samples were taken in the location of J. Hackl©s samples in order to confirm the presence of platinum-palladium mineralization. The author also examined the geology in the area and confirmed the presence of J. Hackl©s samples.

2.0 PROPERTY DESCRIPTION and LOCATION

The Crayfish property consists of 5 contiguous, unsurveyed, unpatented claims in Haines Township, comprising approximately 50 units with a total area of 755 hectares. The property is approximately 90 km west of Thunder Bay, Ontario, and lies approximately 1.5 km south of highway 11, part of the trans-Canada highway system (Figure 1). The town of Kashabowie lies approximately 2 km to the northwest.

The claims are held in good standing by Joe Hackl and Joey C. Hackl of Shebandowan, Ontario, and are illustrated on the Haines Township claim sheet (G-662). N.T.S. 52B/09. The claims are listed in Table I..

Clark Exploration Consulting l April, 2003 Sachigo Lake Big Trout Lake

Sioux Lookout CRAYFISH PROPERTY Beardmore

Manitouwadge

Marathon \ Hemlo Fort Frances

LAKE SUPERIOR

NOETH AMERICAN GEM INC. Scale CRAYFISH PROPERTY THUNDER BAY AREA. o 50 100 150 200 l L l l l REGIONAL-SCALE LOCATION MAP Km KgM Cartography: D. CULUN

RniMfc Api*. 2003 FIGURE 1 CLARK EXPLORATION CONSULTING North American Gem Inc. Crayfish property Table 1. Crayfish Property Claims

Assessment Claim No. Recording Date Due Date Work Required Units TB1240443 Febl 1,2000 Feb 11, 2002* S2800 7

TB 1240444 Feb 1 1, 2000 Feb 11, 2002* S4800 12

TB1233567 May 22, 2001 May 22, 2003 S4000 10

TB1233568 May 22, 2001 May 22, 2003 S2400 6

TB1233569 May 22, 2001 May 22, 2003 S6000 15 * Currently on extension

3.0 ACCESSIBILITY. CLIMATE. LOCAL RESOURCES. INFRASTRUCTURE and PHYSIOGRAPHY

The North American Gem Inc. Crayfish property is located in Haines Township, Thunder Bay Mining Division, approximately 90 km west of Thunder Bay, Ontario, which is a city of 120,000 people with an international airport and rail service, as well as port facilities at the west end of .

The property is accessed by taking Highway 11 from Thunder Bay for approximately 90 km to Kashabowie on Lake Shebandowan. From there access is by boat across Lake Shebandowan, a distance of approximately 4 km to the main showing area. The property can also be accessed by taking Highway 11 from Thunder Bay for approximately 70 km to the Shebandowan Road, then taking the Shebandowan Road to the former Shebandowan Mine, and then bush roads for about 5 km to the Loch Erne property. At that point a bush traverse is required into the Crayfish property.

The topography and vegetation of the Crayfish property consist generally of low, rolling hills less than 200ft. high with occasional ridges, covered by black spruce, jackpine, birch and poplar, with scattered lakes and muskeg swamp. Approximately half of the property is underlain by Lake Shebandowan. The drainage in the area is into the Shebandowan and Matawin Rivers, which in turn flow into the and Lake Superior. Outcrop is generally common, and the area is commonly covered by a mantle of glacial till. The Arctic watershed divide lies approximately 10 km to the west.

Climate is typical of northwestern Ontario with a continental climate consisting of warm to hot summers and cold winters.

Clark Exploration Consulting April, 2003 North American Gem Inc. Crayfish property 4.9 PROPERTY HISTORY

The following summary of the exploration history of the Crayfish property, and the area immediately surrounding h, is taken from O©connor (1997).

* 1957 Upper Shebandowan Mines Ltd. drilled five holes to the west of the Whalen showing.

* 1960 Electromagnetic, magnetic, soil geochemical and geological surveys were carried out by Mclntyre-Porcupine Mines.

* 1966 Mcintyre Mines Limited tested the Milkie showing with 2489© (758.84m) of diamond drilling in six holes.

* 1966 Seemar Mines conducted magnetic, electromagnetic and geological surveys and drill tested the Milkie showing with 8 diamond drill holes for a total of 4272© (1302.44m).

* 1966 Shawmin Exploration Limited performed geophysical surveys (EM and magnetometer) over most of the area covered by the newly staked claims. In 1966, 9 holes were drilled for a total of 1856© (565.7m) in the area of the Peninsula showing. The best intersection was from hole 4-66, which averaged S.03% copper and Q.27% nickel over 9.5 ft at a depth of 100 ft. The results also included eight intersections along the mineralized section of the zone which averaged 2.711^ copper and Q.22% nickel over 1.3m with a length of 122 m (Holbrooke 1967). There was no assaying for platinum or palladium at this time. o 1967 Shawmin Exploration Ltd. drilled 8 diamond drill holes for a total of 2447.5© (755m) in the area of the Peninsula showing.

* 1969-1974 Falconbridge Nickel Mines Ltd. drilled 20 holes (2800m) in the area covered by the recently staked claim group. o 1974 Falconbridge completed a magnetometer and electromagnetic survey including a limited IP survey in the area covered by the newly staked claims. o 1982 Airborne magnetic and electromagnetic surveys were flown over the region for INCO

* 1983 A Dighem Airborne magnetic and electromagnetic survey was flown over the area covered by the newly staked claim block for Robert McGowan

* 1987 Wawaig Resources completed magnetic and electromagnetic surveys over the Milkie showing.

Clark Exploration Consulting 5 April, 2003 North American Gem Inc. Crayfish property

* 1989 Minnova cleaned and sampled the trenches at the Peninsula showing.

* 1991 Prospecting, stripping and trenching were completed at the B-zone by J. Hackl.

* 1992 Teck Exploration Ltd. completed a geophysical program (IP, magnetic and electromagnetic) in addition to geological mapping in the area of the B-zone.

* 1994 Green Ice Corporation performed geophysical surveys including magnetic, electromagnetic and induced polarization over the original Narrows option claims.

* 1995 Green Ice Corp. completed a geological mapping, prospecting and soil sampling program covering the original Narrows option area.

* 1996 Green Ice Corp. completed a diamond drilling program at the B-zone (approx. 1.5 km northeast of the Peninsula showing), E-zone, Hi-grade zone and Jimbob-1 zone consisting of 5 holes for a total of 643.75 metres.

* 1997 Green Ice Corp. drilled 5 diamond drill holes at the B-zone for a total of 515.24 metres. The report entitled "Report on Diamond Drilling, Shebandowan Project, Narrows Property, April 1997" describes the results of this program.

* 1997 Green Ice Corp. contracts JVX Ltd. to perform a geophysical program of induced polarization/resistivity and magnetometer surveys over the Narrows property, including the Peninsula showing.

* 2000/2001 Prospecting by J. Hackl includes assaying for Pt/Pd for the first time. The work returned assays as high as 13.01 g/t Pd and 3.76 g/t Pt in grab samples (see Appendix l - Assay Results, and Appendix n - Assay Certificates). Hackl concentrated on the trenched area east of where Shawmin had drilled previously.

Clark Exploration Consulting 6 April, 2003 * A* S j* t/

North American Gem Inc. Crayfish property S.9 GEOLOGICAL S

5.1 REGIONAL GEOLOGY (Figure 3)

Morin (1973) describes the area as underlain by east-trending metavolcanics and metasediments of Precambrian age. Metamorphic grade varies from upper greenschist facies in the south to almandine-amphibolite facies in the northern part of the map area.

Metavolcanics extend north and south of Lower Shebandowan Lake. They are intermediate to mafic in composition, with minor felsic members. There are few pyroclastic rocks in the sequence. Pillowed lavas indicate that the top of the volcanic sequence faces north.

South of Lower Shebandowan Lake, the older metavolcanic sequence contains about 3,000 feet of metasediments, consisting of conglomerate, arkose, and argillite. Thin beds of iron formation are interbedded with the metavolcanics. A thick sequence of greywacke overlies the metavolcanics in the northern part of the area. It was named the Kashabowie group by Hodgkinson (1968).

Narrow gabbro and peridotite sills intrude the metavolcanics and metasediments. A quartz diorite stock (the Shebandowan Lake Stock) occurs in the western part of the area. The edge of a large granite mass in the northern part of the area is in migmatitic gradational contact with the Kashabowie Group metasediments. Quartz-feldspar porphyry dikes are intrusive to the metavolcanics. A diabase dikes intrude the northern granite mass. The geological feature of prime interest on and in the vicinity of the Crayfish property is the Haines Gabbro-Anorthosite Complex, described by Farrow (1993) as being "composed of medium-grained mesocratic gabbro, with less abundant melanocratic gabbro and anorthositic phases. Property-scale reconnaissance mapping by INCO Exploration and Technical Services Inc. showed a roughly north-northeast-trending layering of these phases (Hackl 1993). Two styles of base metal mineralization exist within the main mass. The dominant style is characterized by variable concentrations of pyrite and chalcopyrite in chlorite * amphibole and magnetite * chlorite +A- amphibole schists associated with shearing; whereas, the other consists of the same sulphide assemblage in amphibole-rich pegmatoids."

Clark Exploration Consulting 7 April, 2003 North American Gem Inc. Crayfish property 5.2 REGIONAL ^MINERALIZATIONandDEPOSff "fYPES

Base and precious metal occurrences are represented by three major styles of mineralization in the region around Upper Shebandowan Lake (Osmani et al. 1994): 1) stratigraphically controlled; 2) intrusion-hosted; 3) shear and/or quartz vein-hosted. Examples of stratigraphically controlled mineralization are the Vanguard copper-zinc-gold deposit (East and West zones) and the Whalen showing (copper-gold) which are situated south of Kashabowie village and along the north shore of Upper Shebandowan Lake, respectively.

The base and precious metal mineralization within the Haines Gabbro-Anorthosite Complex is an example of the intrusion-hosted mineralization; this style has been discussed in the "Regional Geology" section of this report.

The third style of mineralization, shear and/or quartz vein-hosted, occurs at the Ray Smith showing east of Three Mile Bay in northeast Haines Township. This style may also exist within the Shebandowan Lake stock, quartz-feldspar porphyries and mafic metavolcanics in the area (Osmani etal. 1994).

The past-producing INCO Shebandowan Mine lies approximately 6 km east-southeast of the Crayfish property. The mine produced 8.7 million tons of ore at a grade of 2.06*54 Ni, l .00*K* Cu, and approximately 3.0 g/t combined platinum group elements (PGEs) and Au (B. Schnieders, personal communication). The ore consisted of massive to disseminated pyrrhotrte-chalcopyrite- pentlandite in a strongly-sheared peridotite truncated to the west by the Crayfish Creek Fault. Falconbridge drilling indicates that similar mineralization exists on the Loch Erne property, immediately adjoining the east boundary of the Crayfish property, where it consists of stringer and disseminated sulphides hosted within peridotite parallel and sub-parallel to the Crayfish Creek Fault (Schauer 1968). The drilling indicates that the mineralization is widespread along the fault, although to date there have been no economic concentrations intersected.

The Haines Gabbro Complex has been the subject of recent exploration by LMX Resources and Classic Gold Resources. The LMX/Classic Gold property immediately adjoins the Loch Erne property to the east of the Crayfish property and hosts mineralization consisting primarily of chalcopyrite in shear zones within the gabbro. Channel samples contained up to 9.87 g/t combined platinum-palladium over 5.6 metres. Subsequent drilling by LMX Resources returned values of 0.23 g/t over 45.07 metres, and 0.36 g/t over 6.89 metres (LMX Resources news releases).

Clark Exploration Consulting 9 April, 2003 North American Gem Inc. Crayfish property

5.3 PROPERTY GEOLOGY

The Crayfish property is underlain by mafic metavolcanic rocks in the southwestern part (roughly half) of the property, with the Haines Gabbro-Anorthosite complex intruding into the northeastern area. The contact between the two units conforms approximately with the Crayfish Creek fault, a northwest trending, dextral strike-slip fault that extends from the Quetico fault near Crooked Pine Lake to the southeast for a distance of about 80 km. This fault cuts of off the west end of the Shebandowan Mine deposit approximately 9 km to the southeast and has an apparent offset of 300 metres (Osmani et al. 1994).

The main mineralization on the Crayfish property is referred to by Farrow (1993) as the "NW Peninsula Showing", and is described as occurring "at the west end of a peninsula that extends into Upper Shebandowan southeast of the mouth of the Kashabowie River. It represents the western extension of the main mass of the Haines Gabbro-Anorthosite complex. Originally trenched in 1967 by Shawmin Explorations Limited, the showing is represented by northwest- trending shear- and fracture-hosted pyrite and chalcopyrite. Host rock types within the complex include medium-grained, inequigranular, mesocratic gabbro, weakly porphyritic leucogabbro and medium-grained melanocratic gabbro. Chlorite schist contains sulphide mineralization within the shears. Silica flooding is locally visible. Biebby to semi-massive sulphide minerals occur in elongate blebs up to l cm wide and are oriented sub parallel to the foliation developed within the host shear zones."

Clark Exploration Consulting lo April, 2003 North American Gem Inc. Crayfish property Table 2. Table of Lithologic Units for the Shebandowan Area PHANEROZOIC CENOZOIC Recent Lake, stream and swamp deposits Pleistocene Sand, gravel, clay

Unconformity PRECAMBRIAN PROTEROZOIC Late Mafic Intrusive Rocks Diabase

Intrusive Contact ARCHEAN Intrusive Rocks Felsic Intrusive Rocks Quartz diorite, white muscovite-biotite granite, white pegmatite, pink porphyritic granite, pink biotite granite, quartz porphyry, quartz porphyry, quartz-feldspar porphyry, feldspar porphyry, migmatite, porphyritic hornblende syenite

Intrusive Contact

Mafic and Ultramafic Intrusive Rocks Gabbro, anorthositic gabbro, peridotite, hornblendite, lamprophyre Intrusive Contact Metavolcanics and Metasediments Kashabowie Group Greywacke, biotite-quartz-feldspar schist Felsic Metavolcanics Rhyolite, porphyritic rhyolite, dacite, porphyritic dacite Metasediments Conglomerate, arkose, argillite, cherty sediments Mafic to Intermediate Metavolcanics Andesite, basalt, coarse-grained basalt and andesite, pillowed andesite, pillow breccia, porphyritic andesite, amygdaloidal andesite, tuff, lapilli tuff, tuff breccia, iron formation.

Clark Exploration Consulting 12 April, 2003 North American Gem Inc. Crayfish property 6.0 NORTH AMERICAN GEM INC E

The exploration performed previously on the property has concentrated on looking for gold and base metal (i.e. copper-nickel) mineralization. J. Hackl©s prospecting in 2000/2001 involved assaying for platinum-palladium for the first time, and demonstrated that the Haines Gabbro on the Crayfish Property does in fact host Pt-Pd values, up to 13.01 g/t Pd and 3.76 g/t Pt in grab samples. A fence of drill holes drilled by Shawmin in 1966 across the peninsula has apparently been mis-plotted on later maps (Hackl, personal communication); as a result, the authors have not tried to show these drill holes on the maps in this report.

In September of 2001, D. dillen and J. Hackl visited the property to confirm previous assay results on the Peninsula Showing. Six samples were taken in the trenches at this time. The trenches on the Peninsula Showing, along with J. Hackl©s and D.CulIen©s sample locations, are shown in Figure 5.

Skyline Minerals of Thunder Bay Ont. cut a grid with a baseline azimuth of 108 degrees and wing lines at 100 and 50 metre centres over the Peninsula and some of the lake in March of 2003. Phantom Exploration of Thunder Bay Ont. conducted a magnetic and VLFJEM survey in March and April of 2003, with the maps being generated by Clark Exploration.

Clark Exploration Consulting 13 April, 2003 P-125 P-126 TRUE P-163* P-169 P-170 P-155 P-156

P-160 P-164 P-161 P-165 P-153 P-154 P-151 CLAIM # P-152 TB 1240443 LOCATION MARKER P-149 200m WEST 275m NORTH P-150 to POST # 4-1240443 P-147 P-148

P-145 LEGEND P-146 Sample Site

P-117 Trench Outline

DC-1 Cullen Sample P-99 Hackl Sample P-118

P-134 P-135 Scale 3S O 5 10 metres

P-171 P-180 NORTH AMERICAN GEM INC. P-111 CRAYFISH PROPERTY THUNDER BAY AREA, NORTHWESTERN ONTARIO

PENINSULA SHOWING-SAMPLES

P-181 N.T.S. Map Sheet: 52B/09 FIGURE 5 P-182 Digital Cartography by D. Cullen Revised: April, 2003 CLARK EXPLORATION CONSULTING -DC-2 North American Gem Inc. Crayfish property 7.0 INTERPRETATIONandCONCLV^NS

Previous work on the Crayfish property has indicated the presence of copper-nickel-PGE-gold mineralization on the Crayfish property, particularly in the area of the Peninsula showing. The mineralization is hosted in shears and fractures within the Haines Gabbro-Anorthosite complex and is associated with pyrite-chalcopyrite mineralization. To date, drilling on the Peninsula showing has tested the Peninsula mineralization to a depth of only about 100 vertical feet, over a length of 500 feet (Holbrooke, 1967).

The best intersection of Shawmin©s program was from hole 4-66, which averaged S.03% copper and Q.27% nickel over 9.5 ft at a depth of 100 ft. The results also included eight intersections along the mineralized section of the zone which averaged 2.1Wo copper and G.22% nickel over 1.3 m with a length of 122 m (Holbrooke 1967). Shawmin concluded at this time that the zone "where drilled was too small to be of interest economically, but it could represent the upper portion of of a much larger deposit lying at no great depth beneath the surface" (Holbrooke 1967). There was no assaying for platinum or palladium at this time.

The geophysics performed by Green Ice Corp. resulted in the definition of a target area on the west end of the peninsula, and just west and south of it under the lake. The recommendation of JVX Ltd. was that the targets on land should be trenched and sampled (O©Connor 1998). Drilling by Green Ice, east of the Peninsula, appears to have been for gold only. No drilling was done on the Peninsula showing itself.

The work done by J. Hackl in 2000 and 2001 was performed primarily on the trenched area east of the area drilled by Shawmin (although the exact location of Shawmin©s drilling is apparently in question) and was the first work done on the property to focus on platinum-palladium mineralization.

The property visit by D. Cullen and J. Hackl was successful in that it confirmed previous assay results, (see Appendix I and II for descriptions and results)

The magnetic and VLF-EM survey highlighted three features of note (figures 6 A 7) l: A weak-moderate EM anomaly from 1300E, 200S to 1700E, 125S that coincides with a moderate magnetic high. Further exploration is warranted to ascertain if this is structurally generated. 2: A cluster of magnetic lows from approximately 200E, 350Nto 800E, 450N (possible structure). 3: A magnetic low flanked by a magnetic high along the southern end of the grid striking northward to the west (possible structure) Other crossovers from the VLF-EM survey appear to be topographic in origin

Clark Exploration Consulting IS April, 2003 North American Gem Inc. Crayfish property 8.0RECOMMENDATIONS

The work performed by J. Hackl on the Peninsula Showing indicates the presence of anomalous Pt-Pd mineralization. The fact that this showing lies within the Haines Gabbro Complex and in close proximity to the Crayfish Creek Fault is of significance, as it has been the subject of recent exploration by LMX Resources and Classic Gold Resources. The LMX/Classic Gold property immediately adjoins the Crayfish property and hosts mineralization consisting primarily of chalcopyrite in shear zones within the gabbro. Channel samples contained up to 9.87 g/t combined platinum-palladium over 5.6 metres. Subsequent drilling by LMX Resources returned values of 0.23 g/t over 45.07 metres, and 0.36 g/t over 6.89 metres (LMX Resources news releases).

It is recommended further mechanical stripping, washing, mapping and sampling be performed in the area of the previous trenching on the Peninsula showing, focussing on the areas of J. Hackl©s more significant assay results. A 548,475.00 budget is recommended to further evaluate this platinum-palladium potential.

It is the opinion of the authors of the report that the property is of sufficient merit to justify the recommended work pregram

Clark Exploration Consulting 16 April, 2003 North American Gem Inc. Crayfish property 9.1 PROPOSED BUDGET Stripping Backhoe-50 hours @S1257hr...... 6,250.00 Mob and demob ...... 2,000.00 Washing and sampling 2 men- 12 days @S5007day...... 12,000.00 Pump and hose...... 1,250.00 Rocksaw and blades...... 2,000.00 Mapping and sampling Geologist -15 days @S3507day...... 5,250.00 Digital maps...... 1,500.00

Travel and accommodations Track-15 days @S757day...... 1,125.00 Boat and motor (2) -15 days @S1207day...... 3,600.00 Assays 200 samples @ S207sample ...... 4,000.00 Reports and Maps...... 5,000.00

Contingencies ...... iiOJJO

TOTAL OF PROPOSED BUDGET S48,475.00

Clark Exploration Consulting H April, 2003 North American Gem Inc. Crayfish property 13.0 REFERENCES

Assessment Files, Thunder Bay Resident Geologists Office, Ministry of Northern Development and Mines; Thunder Bay, Ontario.

Dill man, R. J., 1995. Report on Geological Mapping, Prospecting and Soil Sampling on the Hackl Claims, Shebandowan Project, Ontario.

Farrow, C.E.G., 1993. Base Metal Sulphide Mineralization, Shebandowan Greenstone Belt; in Summary of Field Work and Other Activities 1993, Ontario Geological Survey, Miscellaneous Paper 162, p. 87-96.

Farrow, C.E.G., 1995. Geology of the NW Peninsula Showing, Upper Shebandowan Lake, northwestern Ontario, Ontario Geological Survey, Preliminary Map P.3348.

Flanagan, M., Goutier, F., Glenn, G., and Durose, M., 1990. Summary of Geology on the Minnova - Kashabowie Project (PN677). NTS 52B/09-10.

Hackl, J. 1993. The Hackl Narrows and Big Onion properties; Resident Geologist©s files, Thunder Bay District, Thunder Bay, 119p.

Hodgkinson, J.M., 1968. Geology of the Kashabowie Area, District of Thunder Bay, Ontario Department of Mines, GR 53, 35p. Accompanied by Maps 2127 and 2128, scale l inch to Vz mile.

Holbrooke, G.L., 1967. Shawmin Explorations Ltd., Supplemental Report on Development and Results, Haines Township Property LMX Resources Ltd. news releases.

Morin, J.A., 1973. Geology of the Lower Shebandowan Lake Area, District of Thunder Bay; Ontario Division of Mines, GR 110, 45p. Accompanied by Map 2267, scale l inch to 1A mile.

O©Connor, A., 1997. Report on Diamond Drilling, Shebandowan Project, Narrows Property, Shebandowan, Ontario;^ Green Ice Corporation.

O©Connor, A., 1998. Geophysical Survey Report, Shebandowan Project, Narrows Property, Northwestern Ontario; for Green Ice Corporation.

Osmani, LA., 1997. Geology and Mineral Potential: Greenwater Lake Area, West-Central Shebandowan Greenstone Belt; Ontario Geological Survey, Report 296, 135 p.

Clark Exploration Consulting 18 April, 2003 North American Gem Inc. Crayfish property Osmani, I.A., Egan, J. and Buckles, S.D., 1994. Geology and Mineral Potential of the Upper and Middle Shebandowan Lakes Area, District of Thunder Bay; in Summary of Field Work and Other Activities 1994, Ontario Geological Survey, Miscellaneous Paper 163, p.23 5-240.

Schauer, H.W.K., 1968. Report on Falconbridge Shebandowan-Loch Erne Project. Falconbridge Nickel Mines Ltd.

Clark Exploration Consulting 19 April, 2003 Appendix I

Assay Results Page No. 1 of 1

SAMPLE REPORT SHEET

Project Area CRAYFISH PROPERTY - D.Cullen Samples

Sample Sample Sample Location Assays Sample Description # Type Au Pt Pd Cu Ni (ppb) (ppb) (ppb) (ppm) (ppm) DC-1 Grab 1 ft. from P-158 327 272 1614 15806 4552 250Xo nettextured sulphides (po^y^py) in medium grained mafic intrusive DC-2 Grab *:15 40 ft. SE of ^ 19 170 80 Massive leucogabbro; fine to medium grained; 50:50 mafic to southern tip of felsic minerals; no viible sulphides trenches DC-3 Grab Southern tip of 323 166 202 8691 373 Sheared gabbro; highly weathered - strong oxidation; no trenched area - 1 discernable sulphides; fine grained; strongly foliated tt. north of P-1 77 and P-1 79 DC-4 Grab 4 ft. north of DC-3 2534 149 437 40120 1979 Gabbro; medium to fine grained; moderate to weak foliation; 200Xo disseminated fine grained py/po and S-5% cpy DC-5 Grab 6 inches from P- 875 48 622 73270 3625 leucogabbro; 15-200Xo disseminated suilphides - largely 109 weathered; moderate copper-oxide staining

DC-6 Grab Same as P-1 75 267 16 85 3939 225 Sheared gabbro; narrow (3 inch) shear in fine grained gabbro; check 261 20 89 3773 222 S-5% disseminated fine-grained py with trace cpy. Appendix n

Assay Certificates ACCURASSAY LABORATORIES A DIVISION OF ASSA Y LABORATORY SERVICES INC. 1070 LITHIUM DRIVE, UNIT 2 THUNDER BAY. ONTARIO P7B 6G3 PHONE (807) 823-6448 Certificate of Analysis FAX (807) 623-6820 , OrtoW 09, 2001

Clark Consulting DateRecdved: 2^-Sep-Ol lOOOAJloy Dr. D*t* Completed: Thunder Bay, ON, GA Job* 20014D566 P7A5G5 Reference; Pt*: (8D7) 622-3284 Sample #- 6 Rock Email

Au Pt Pd Rh Ag Co Cu Fe Ni Pb Zn Accurassay Client Id ppb ppb ppb ppb ppm ppm ppm ppm ppm ppm ppm 2-^2 151.o9 DC-1 327 1614 15806 4J32

15170 DC-2 0 *15 19 170 80

35171 DC-3 5Z3 166 202 8691 373

15172 DC-4 1134 149 437 40120 1979

15173 DC-5 873 48 622 73270 3625

15174 DC-6 267 15 83 3939 225

15175 Check DC-6 461 20 89 3773 322

Pag* l of l ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES Work Report Summary

Transaction No: W0340.00803 Status: APPROVED Recording Date: 2003-MAY-08 Work Done from: 2001-SEP-11 Approval Date: 2003-MAY-13 to: 2003-APR-04

Client(s): 140414 HACKL, JOE 221607 HACKL, JOEY CHRISTOPHER

Survey Type(s): ASSAY LC MAG VLF

Work Report Details: Perform Applied Assign Reserve Claim* Perform Approve Applied Approve Assign Approve Reserve Approve Due Date TB 1233567 SO so S4.000 54,000 SO 0 SO 50 2004-MAY-22 TB 1233568 SO so S2.400 52,400 50 0 50 50 2004-MAY-22 TB 1233569 S179 S179 56,000 56,000 SO 0 SO SO 2004-MAY-22 TB 1240443 58,018 S8.018 51,742 51,742 56,276 6,276 SO 50 2003-OCT-1 1 E TB 1240444 S1 0,745 510,745 54,800 54,800 55,945 5,945 SO 50 2004-FEB-11

S1 8,942 518,942 518,942 51 8,942 512,221 512,221 so 50

External Credits: SO

Reserve: SO Reserve of Work ReporW: W0340. 00803

SO Total Remaining

Status of claim is based on information currently on record.

52B09NW2017 2.25595 HAINES 900

2003-May-21 13:13 Armstrong-d Page 1 of 1 y of Ministere du Northern Development Developpement du Nord and Mines et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE Date:2003-MAY-14 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

JOE HACKL Tel: (888) 415-9845 BOX 7 Fax:(877)670-1555 SHEBANDOWAN, ONTARIO POT 2TO CANADA

Submission Number: 2.25595 Transaction Number(s): W0340.00803 Dear Sir or Madam

Subject: Approval of Assessment Work

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

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time. If you have any question regarding this correspondence, please contact STEVEN BENETEAU by email at [email protected] or by phone at (705) 670-5855.

Yours Sincerely,

Ron Gashinski Senior Manager, Mining Lands Section

Cc: Resident Geologist Assessment File Library James Garnet Clark Joe Hackl (Agent) (Claim Holder)

Joe Hackl Joey Christopher Hackl (Assessment Office) (Claim Holder)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18300 MINISTRY Of NORTHERN DEVELOPMENT AMD MINES Mining Land Tenure ONTMIIO PROVINCIAL WININO Map CANADA RECORDErS OFFICE 52B09NW2017 2.25595 HAINES 200

Data l Time of Issue: Tue May 13 16:40:12 EOT 2003 TOWNSHIP l AREA PLAN HAINES G-0662

ADMINISTRATIVE DISTRICTS t DIVISIONS Mining Division Thunder Bay Land Titles/Registry Division THUNDER BAY Ministry of Natural Resources District THUNDER BAY

TOPOGRAPHIC Land Tenure

: Administrative) Boundaries Freehold Patent

I" "! Township f^l Surface And Mining Righto

\ '""l Concession, Lot p.1 Surface WghK Only

|S3 PmifiddPark fJJ Minlnp.Rio.hlll Only ffl*:J g; i Indian Kastrve Leasehold paunt :...J :"© : Cliff, Pit ft Pll* f H Surfaca And Mining Rigms

fj] Surface Rights Only Contour f©^j Mltllnq Rijhtt Only e Mine Shafts Licence of Occupation i Mine Headframe Railway Surface And Mining Rigiife Road E Surface Hignu only Trail ES MKlinEl Riohte Only Natural Gas Pipeline H UHtte SI! land IMe Permit Tower Order In Council (Not open tor otfltonp) *~'^^"-•m'j r;.r.fi*^v-i l '"^--j Water Power Lease Agreement K .T:~: Mining Claim

Film) Only Mining Clalma

LAND TENURE WITHDRAWALS

hflffSwn tirrn DwiwmlHnn Mining Acts Withdrawal Types

Wm Mirtfig Rigms Only WiDidrawn OnMr In Council Withdrawal Tyow WVn Sudoct And Mining Righto Withdrawn W"B SurtoCT Riflt?teOnly V W©m Mining F^gtite Only W

IMPORTANT NOTICES

LAND TENURE WITHDRAWAL DESCRIPTIONS Identifier Type Dote Description

3174 Wa Jan 1,2001 SEC. 43 2/10/70 S.R.O. 180704 3Z24 Wsm Jan 1. 2001 L.O. 4714 RIGHT TO HOLD WATER UP TO THE HIGH WATER MARK SHEBAND K 3306 Wsm Jan 1,2001 L.O.4714 - ONTARIO HYDRO RIGHTS TO HOLD WATER UP TO HIGH WATER H \ W-28/83 Ws Oct18, 1963 SEC. 36/SOW-2B/B316710/83 S.R.O. 160704

Those wishing to stake mining claims should consult with the Provincial Mining Recorders© Office of the Ministry of Northern Development and Mines for additional General Information and Limitations This map may not show unregistered land tenure and interests In information on the Btatufi of the lands shown heraon. This map is not intended for navigational, survey, or land title determination purposes as the information Contact Information: Tall Free Map Datum: NAD 93 land including certain patents, leases, easements, right of ways, shown on this map is compiled from various source*. Completeness and accuracy are not guaranteed. Additional information may also be obtained through the Provincial Mining Recorders© Office Tel: 1 (888) 415-8845 exl 57*8)jocti:ion: UTM (6 degree) flooding rights, licences, or other forms of disposition of rights and local Land Titles or Registry Office, or the Ministry of Natural Resources. Willet Green Miller Centre 933 Ramsey Lake Road Fax: 1 (877) 670-1444 Topographic Data Source: Land Information Ontario interest from the Crown. Also certain land tenure and land uses Sudbury ON PJE BBS Mining Land Tenure Source: Provinaal Mining Recorders© Office ©bat restrict or prohibit free entry to stake mining dairns may not be Tho information shown la derived from digital date available in the Provincial Mining Recorders© Office at the time of downloading from the Ministry of Northern Home Page: www.mndFn.gov.on.ca/MNDM/MINES/LANDSftnlsrrmf ge.htfn illustrated. Development and Mines web site. TRUE

PROPERTY BOUNDARY

Scale

O 0.5 1.0 1.5 kilometres NORTH AMERICAN GEM INC. CRAYFISH PROPERTY THUNDER BAY AREA, NORTHWESTERN ONTARIO

CLAIMS

N.T.S. Map Sheet: 52B/09 FIGURE 2 Digital Cartography by D. Cullen Revised: April, 2001 CIARK EXPLORATION CONSULTING

52B09NW2017 2.25595 HAINES 210 LAC DES ILES MINE EAST DOG RIVER ~145 M tonnes 1.86 gpt Pd+Pl+Au, G.06% Cu b Q.05% Ni

Metayoicanic Rocks

DEMARS LAKE Metasedimentary Rocks

Granitoid Rocks

Proterozoic Sedimentary and Intrusive Bocks

Proterozoic Diabase Sills

Fault (observed/assumed)

Highway/Road

X Geological Contact

International Boundary Pt,Pd,Cu,Ni Z^T--— Mine (past and producing)

ifmeral Occurrence CHIEF PETER Kashabowie : Silver Lake Cw. Copper Ni: Nickle Pd: Palladium PI: Platinum

cu,Ni,pt.pd .Y.... Shebandowan . t.5% Cu, Q.4% Ni ,. Lake 1.9 gpt Pd+Pt+Au reenwater.^ :::: Lake

AMERICAN GEM INC. SHEBANDOWAN MINE 8.7 M tonnes grading REGIONAL PGE OCCURENCES Ni, t.00% Cu, AND GEOLOGY Se ~3.0 gpt PGE©s NORTH COLDSTREAM MINE McKenzie Lake 2.7 M ton produced CRAYFISH 51,000 tons Cu, 22,000 Superior ounces Au, 4- Co

52B09^W2017 2.25595 HAINES 220 . 255 95

TRUE

UPPER / SHEBANDOWAN LAKE UPPER LEGEND SHEBANDOWAN HAINES GABBRO-ANORTHOSITE LAKE COMPLEX

SHORELINE PENINSULA SHOWNG O FAULT

MAFIC METAVOLCANIC ROCKS

2 INTERMEDIATE METAVOLCANIC ROCKS

FELSIC METAVOLCANIC ROCKS PROPERTY

BOUNDARY GEOLOGICAL CONTACT

Scale

0.5 1.0 1.5 kilometres LOCH ERNE NORTH AMERICAN GEM INC. GREENWATER LAKE CRAYFISH PROPERTY THUNDER BAY AREA, NORTHWESTERN ONTARIO

Property Geology

N.T.S. Mop Short: 528/09 FIGURE 4 Digital Cartography by D. Cufien Revised: April, 2001 CLARK EXPLORATION CONSULTING

52B09NW2017 2.25595 HAINES 230 52B09NW2017 2 .25595 HAINES

TOPOGRAPHIC LEGEND

CLAIM POST:

CLAIM LINE:

LAKE SHORE:

STREAM:

SWAMP:

GEOPHYSICAL LEGEND

INSTRUMENT: GEO NIC S EM- 16 PROFILE SCALE: 1 CM - 257* POSITIVE READINGS TO THE RIGHT OF LINE TRANSMITTER STATION: CUTLER, MAINE

IN PHASE PROFILE OUT OF PHASE PROFILE

CONDUCTOR AXIS

IN PHASE READINGS OUT OF PHASE READINGS

O 100 200 300 400

SCALE - 1:2500 2. 255

L C D

HAINES TWP. THUNDER BAY DISTRICT

Digita Cartography by T. MAITLAND .T.S. Map Sheet: 52-B-9

APRIL 2003 Figure 6

L E V1DTArL II CONSULiHAlXTOTTT nniTlVTrfnIN (j 52B09NW2017 2.25595

1167

1162 1130 TOPOGRAPHIC LEGEND

CLAIM POST: -f

CLAIM LINE:

LAKE SHORE:

STREAM:

SWAMP:

- 1020 -1033 --1067 - 1039 1016 -- 1063 -- 1036 -1033 1067 - 1123 -- 1038 1023 - 1019 999 - 1037 1043 1066 1020 1059 1007 1071 1005 1074 1075 1008 - 1062 1070 96 - 1055 1059 1002 - 1025 1039 1007 000 - 1020 1039 - 1016 1003 - 1095 999

INSTRUMENT: EDA OMNI IV

DATUM SUBTRACT: 57000 nT

1069 1075 CONTOUR INTERVAL: 100 nT 1077 1096 MAGNETIC LOW:

O 100 200 300 400

SCALE - 1:2500

D

HAINES TWP. THUNDER BAY DISTRICT

Digital Cartography by T. MATLAND .T.S. Sheet: 52-B-9

APRIL 2003 Figure 7

I A T}J7 C LAKJK