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Ministry of Energy and Mines Assessment Report BC Geological Survey Title Page and Summary

TYPE OF REPORT [type of survey(s)]: GIS based research and compilation of geology, geophysics, geochemistry on the Tulameen South property. Airborne Fugro Resolve data coverage flown in 2008 over the property was reprocessed utilizing inversion modelling techniques. Prospecting was also completed.

TOTAL COST: $18.765.80

SIGNATURE(S):

NOTICE OF WORK PERMIT NUMBER(S)/DATE(S): N/A YEAR OF WORK:2016

STATEMENT OF WORK - CASH PAYMENTS EVENT NUMBER(S)/DATE(S): Geological, Geochemical, Prospecting, Geophysics (Reprocessed Airborne data)

PROPERTY NAME: Tulameen South Project

CLAIM NAME(S) (on which the work was done): 1040375

COMMODITIES SOUGHT: Ni-Cu-Co-PGE (convergent-margin type)

MINERAL INVENTORY MINFILE NUMBER(S), IF KNOWN:

MINING DIVISION: Similkameen Mining District NTS/BCGS: M092H056 and M092H048

49 0 21 . 24.3 2 0 47 .2 LATITUDE: LONGITUDE: -1 0- - (center of claims)

OWNER(S): 1) William C. Yeomans 2) ------

3811 Harding Rd West Kelowna, BC MAILING ADDRESS: V4T2J8

OPERATOR(S) [who paid for the work]: William Yeomans 1) 2)

3811 Harding Road MAILING ADDRESS: West Kelowna. BC V4T2J8

PROPERTY GEOLOGY- KEYWORDS (Lithology, age, sJr.a.lig.rru>JlY,.J~tructure, alteration mineralization, size and attitude): The Tulameen S,o",,,_,ut.,_,h_ _ _ _ property is underlain by an Early Jurassic Late Triassic Nicola volcanics and the Tulameen Ultramafic Complex. The property is located at a convergent-margin at the western boundary of the Quesnellia Terrane. Reprocessed Resolve Fugro airborne data has identified a possible massive sulphide target which is proximal to the highest RGS Co value for all 55,00 samples in the database.

Aris reports: 30179, 27009. 31585C

REFERENCES TO PREVIOUS ASSESSMENT WORK AND ASSESSMENT REPORT NUMBERS: Next Page / TYPE OF WORK IN EXTENT OF WORK ON WHICH CLAIMS PROJECT COSTS THIS REPORT (IN METRIC UNITS) APPORTIONED (incl. support)

GEOLOGICAL (scale, area) Ground, mapping

Photo interpretation

GEOPHYSICAL (line-kilometres) Ground Magnetic

Electromagnetic

Induced Polarization

Radiometric

Seismic

Other

Airborne

GEOCHEMICAL ( number of samples analysed for... ) Soil

Silt

Rock (

Other DRIWNG (total metres; number of holes, size) Core

Non-we . RELATED TECHNICAL

Sampling/as!faying

Petrographic

Mineralographic

Metallurgic

Prospecting trails and EM target $6525.80 PROSPECTING (scale, area)

PREPARATORY/ PHYSICAL

Line/grid (kilometres) Topographic/Photogrammetric

(scale, area)

Legal surveys (scale, area)

Road, local access (kilometres)/trail

Trench (metres) -

Underground dev. (metres)

Other Reprocessing of Fugro airborne data over property by SJ $12,240.00 Geophysics, GIS compilation of previous geological, $18,765.80 geophysical, geochemical surveys, prospecting and target TOTALCOST: modelling of potential massive sulphide EM anomaly Technical Report on a Geological, Geophysical and Geochemical Review

Southern Tulameen Ultramafic Complex

-Tulameen South Property –

Owned by William Yeomans

Similkameen Mining District

Southern British Columbia

Canada

NTS Mapsheets M092H036 and M092H037

49º 21’ 24.3” North Latitude and 120⁰– 47’ 0.2” West Longitude UTM Coordinate (NAD83 Zone 10): 660,962E – 5,469,479N

for the Period

from January 6th - December 2nd, 2016

February 27th, 2017 William Yeomans, P. Geo. Table of Contents

1.0 Introduction…………...…………………………………1

2.0 Property Location, Access and Topography……..…....……2

3.0 Property Description and Mineral Tenure Act Updates….....4

4.0 Previous Work……………………………………………6

5.0 Regional Geology………………………………...……….9

6.0 Property Geology……………………………………...... 13

6.1 Nicola Volcanics and Metasedimentary Rocks…………….14

6.2 Tulameen Ultramafic Complex –Gabbro and Pyroxenite…..16

7.0 Historical Soil Geochemistry and Stream Sediment Results..17

8.0 Summary of 2016 Prospecting Results………………..…..19

9.0 Reprocessing of Fugro Airborne EM and Magnetic Data…..19

10.0 Surrounding Mineralization…………………………..….20

11.0 Conclusions and Recommendations………...…………….22

12.0 Expenditures…………………………………..…….….23

13.0 References………………………..……………………..26

List of Tables

Table 1. List of Claims………………………………...………..….4

List of Plates Plate 1. Bedrock Photos and Descriptions near the Property…...….15 List of Figures

Figure 1 Regional Location Map – South Tulameen Property, BC…....2

Figure 2 Road Access from Princeton, BC to the Property…………...3

Figure 3 Claim Map for the Tulameen South Property………………4

Figure 4 Regional Geological Setting of the TUC……...……..…..….10

Figure 5 Regional Geology of the Tulameen South Property………..11

Figure 6 Age Relationships of Geological Units for the Property….…12

Figure 7 Property Geology, Airborne Magnetics and EM………….…13

Figure 8 Property Geology with EM and Cu Soil Geochemistry……...18

Figure 9 Possible Buried Conductive Lens ……………………...…..…20

Figure 10 Minfile Occurrences Surrounding the Property…………..…21

APPENDIX

Appendix A Granite Creek Interpretation Memo SJ Geophysics……...…32

1.0 Introduction

The Tulameen South property is located 23 km southwest of Princeton, in the Similkameen District of south central BC. This report provides a new interpretation of the southern extent of the Tulameen Ultramafic Complex (TUC). A GIS-based compilation of all previous geological, geophysical and geochemical surveys was completed on the Tulameen South property, located near the southern limit of the TUC. Additionally, data from a multi-sensor “Resolve” Fugro airborne EM and magnetic survey flown over the property in 2008 was acquired and reprocessed. The results led to reinterpretation of the geology on the South Tulameen claims. Goldcliff Resource Corporation commissioned the original multi-sensor Fugro airborne survey over the property during the fall of 2008. The digital data was acquired by the author and reprocessed by SJ Geophysics, of Delta, BC. The data reprocessing by SJ Geophysics covered the South Tulameen claims and was focused on a significant Fugro airborne frequency domain EM anomaly located outside of Goldcliff’s property boundary. Follow-up prospecting programs along the axis of the EM anomaly were also completed on the claims south of Granite Creek.

The Tulameen area was historically known for being the largest placer platinum producer in North America at the turn of the twentieth century. The bedrock source for these Pt-placer deposits was recognized as being from the Tulameen Ultramafic complex as early as 1910. Over the past 100 years, extensive academic research has been completed in order to gain a better understanding of the nature of platinum mineralization within this Alaskan-type ultramafic complex. The Tulameen ultramafic complex (TUC) is the largest of its kind in North America, covering more than 64 square kilometers. Previous academic studies on the complex included postgraduate M.Sc. and Ph.D. thesis work as well as research by the B.C Geological Survey. During the period from 1885 to 1934, it is estimated that placer mining operations extracted 20,000 ounces of platinum from Quaternary glacial gravel deposits located along the Tulameen River as well as a major tributaries, with Granite Creek reporting the most significant Pt and Au production.

Historical exploration work by major and junior mining companies confirmed multiple potential bedrock sources for platinum, palladium, copper and iron deposits hosted within a wide variety of ultramafic units within the TUC. Direct comparisons have been made with similar deposit types in Alaska and the Ural Mountains in Russia. The nature and distribution of the Platinum Group Element (PGE) mineralization for both the placer and bedrock occurrences identified in the TUC indicate multiple bedrock sources.

2.0 Property Location, Access and Topography

The location of the Tulameen South property in south central British Columbia is indicated in Figure 1. Seasonal logging road provide access throughout the property. The property is located in the Cascade Mountains of southwestern British Columbia on NTS map sheets M092H036 and M092H037.

Figure 1. Regional Location Map - South Tulameen Property, BC

The property is accessed by driving 12 kilometers south from the town of Princeton, BC on paved Highway 3 to the gravel-based Whipsaw Creek FSR. The seasonal Whipsaw Creek FSR logging road is then followed west for 17 kilometers. The Granite Creek Road links northward from the Whipsaw Creek FSR and it is followed for an additional 15 kilometers onto the claims. Alternative routes are available from Coalmont BC but road conditions are extremely rugged. The main access route to the Tulameen South property is highlighted in red in Figure 2. The current network of logging roads throughout the region is also presented on this map.

Figure 2. Road Access from Princeton, BC to the Property

Elevations range from approximately 1360 meters at creek level of Granite Creek, up to 1640 meters near the southern and western limits of the Tulameen South property. Granite Creek bisects the property along a northeast trending valley, with steep slopes present on both sides of this stream. Granite Creek flows northeastward to the confluence with the Tulameen River.

The majority of the property is covered by mature fir forest, with extensive logging activity taking place in the vicinity of the property. Forested areas are generally covered by thick blankets of glacial till. Glaciofluvial terrace deposits are present at lower elevations along the valley of Granite Creek. The region lies in a transition zone between the Cascade Mountains to the west and the Interior Plateau, located further to the east. Heavy snowfalls occur during the winter months with accumulations of up to 7 meters of annual snowfall at upper elevations. 3

The climate is transitional between that of the dry southern interior and the much moister Cascade and Coast Mountain ranges located to the west. Summers are hot and dry while winters are cold with snowfall accumulation from mid-September until April. Snow can remain on the ground at upper elevations in this region until mid-June. A claim map of the Tulameen South property, represented by Claim Block 1040375, is presented in Figure 3. A claim list is provided in Table 1.

Figure 3. Claim Map for the Tulameen South Property

3.0 Property Description and Mineral Tenure Act Updates

Table 1. List of Claims Tenure Mineral Claim Owner Good To Mining Area Method of Owner Map No. Number Name Number Date Division Ha. Staking 18 On Line

1040375 Tulameen South Yeomans 134465 100% 092H036/37 2017/Dec/04 757.52 Similkameen staking

On July 1, 2012, changes to the Mineral Tenure Act Regulation came into effect and will have an impact on future claim acquisition and tenure maintenance. These changes were brought into force by BC Regulation 89-2012. The BC Regulation and a copy of the Mineral Tenure Act with the changes highlighted are available for reference at the following web address: http://www.empr.gov.bc.ca/Titles/MineralTitles/.

Most of the current registration fees have been eliminated, as follows:  Registration of exploration and development work/expiry date change;  Registration of payment instead of exploration and development work/Expiry date change;  Registration of 100% portable assessment credit (10 year rule);  Registration of amalgamation;  Registration of a reduction of a cell claim; and  Transfer of ownership (Bill of Sale Completion).

The number of cells that can be selected has been increased from 25 cells to 100 cells per acquisition. The fee for acquisition will increase:  For mineral claims, the acquisition fee has been increased from $0.40 per hectare to $1.75 per hectare;  For placer claims, the acquisition fee has been increased from $2.00 per hectare to $5.00 per hectare; The assessment work requirement to maintain mineral tenures has been revised from a 2-tier structure to a 4-tier structure. The new assessment work requirements are:  $5.00 per hectare for anniversary years 1 and 2;  $10.00 per hectare for anniversary years 3 and 4;  $15.00 per hectare for anniversary years 5 and 6;  $20.00 per hectare for subsequent anniversary years.

All claims are treated as if their first anniversary year for assessment purposes as the date of implementation. All location data presented is this report is projected in UTM NAD 83 Zone 10 coordinate system and all maps generated for this report utilize this projection system.

4.0 Previous Work

One of the earliest gold rushes in Canadian history occurred along the Tulameen River and its tributaries during the summer of 1885. During that year, John Chance discovered coarse visible gold in gravels near the confluence of Granite Creek with the Tulameen River. By October of that same year, the town of Granite City had grown to a population of 2000 people. During the ensuing gold rush Granite Creek was staked over a length of 12 kilometers upstream from the confluence of the Tulameen River and 62 companies had alluvial mining operations in this area.

During the late 1800’s, Granite Creek in the Tulameen District was the most important source of platinum in North America. Platinum nuggets were recovered with the placer gold from the Tulameen River and her tributaries, including Granite, Cedar, Slate, Britton and Lawless Creeks. The platinum occurred as a fine, hard, silver-white lustrous metal with a high specific gravity in the sluice boxes and gold pans, along with the gold and heavy concentrations of black sands (magnetite and chromitite). In some areas there was more platinum than gold in the concentrates. Platinum nuggets up to 0.5 ounces were found, and during the year 1888, 1,500 ounces of platinum was recovered. This gold / platinum rush subsided over the following ten years, and in 1907 a fire razed the town of Granite City, leaving only a few buildings remaining and abandoned at this time. Total platinum production from the alluvial operations was estimated to be approximately 20,000 ounces from glaciofluvial gravels in the area between 1885 and 1934 (O’Neil and Gunning, 1934).

Preliminary geological investigations by government agencies on the TUC included work by Kemp (1902) who examined the geological relationship between the alluvial platinum occurrences and the surrounding ultramafic rocks for the U.S. Geological Survey, while Camsell (1913) conducted several years of geological study of the Tulameen area for the Geological Survey of Canada. Poitevin (1924) examined similarities between the platinum-bearing rocks of the Tulameen area with similar ultramafic complexes that occur in the Ural Mountains of Russia. O’Neill and Gunning (1934), Rice (1948), and Eastwood (1959) also made significant contributions to understanding the geological setting for platinum mineralization in the Tulameen area.

Findlay (1969) conducted detailed petrological and geological studies and identified platinum minerals in bedrock during the course of his Ph. D. research on the Tulameen ultramafic complex. He established an association between chromite and platinum values in the central dunite core of the intrusion. The mineralogical, geochemical, and petrological associations relative to the distribution of platinum group elements in the complex were also studied and documented by St. Louis (1982, 1986), and more recently by Rublee (1986, 1994).

Evenchick et. al., (1986), Nixon (1987, 1988, 1990,), and Nixon and Rublee (1987) classified the Tulameen Alaskan-type ultramafic complex as potential hosts for commercially exploitable deposits of platinum metals. The structural setting of this complex was documented and compared with other Alaskan-type ultramafic intrusions in Alaska and the Ural Mountains in Russia.

Nixon et. al.(1989), were able to trace the source of platinum nuggets in the Tulameen River to chromitite horizons within the dunite core of the Tulameen ultramafic complex by matching the phase chemistry of the gangue minerals spinel and olivine, in both alluvial nuggets and bedrock lode occurrences. Outcrops of dunite within the Tulameen ultramafic complex were tested for the economic potential of the extraction of the industrial mineral olivine. The Foundry Section of the Physical Metallurgy Research Laboratories in Ottawa (CANMET) conducted several tests on unaltered dunite samples. White (1987) reported that initial test results from the CANMET research were encouraging and that there is economic potential for the industrial mineral olivine on Grasshopper Mountain, based upon the results of fractions ranging from 1.5-4.5 inches.

During the period from 1986 to 1989, Dia Met Minerals followed up on the CANMET report and tested the industrial mineral potential for olivine in the central dunite core of the TUC northeast of the confluence of Britton Creek with the Tulameen River. Dia Met completed thirty- one (31) percussion drill holes with 4,626 feet of drilling. Core samples were submitted for LOI (loss on ignition) tests. Dia Met outlined a zone containing 15 million tonnes in the category of geologically indicated reserve with marginal grade, to a depth of 170 meters, with a surface dimension of 105 meters by 270 meters along the north side of the Tulameen River. An abundance of serpentinized veinlets resulted with disappointing LOI values significantly above 2%, which is considered to be the cut-off for economic olivine deposits.

Diamet crews also conducted a soil orientation survey on the TUC in areas known to contain anomalous platinum values utilizing a geochemical approach known as “The Fipke Method.” The survey was conducted at 16 sites at depths from 100 to 150 cm from glaciofluvial, talus and stream sediment sites within the central dunite core. Seventy-eight chip channel rock samples were also collected and assayed for Pt, Pd, Cr and Au.

South of the Tulameen River, the ultramafic complex has been subjected to sporadic exploration programs for platinum group metals, iron, base metals and gold. Exploration companies and individual prospectors completed soil geochemistry surveys, ground magnetic, VLF-EM-16 geophysics and a very limited amount of diamond drilling on low grade iron deposits and copper targets. From 2000 to 2003, the entire TUC was optioned and systematically explored by Bright Star Ventures Inc. Surveys included complete stream and soil geochemistry survey coverage, airborne magnetic and electromagnetic geophysics surveys, ground IP, regional and detailed geological mapping, trenching, prospecting and diamond drilling programs.

A Fugro helicopter borne DIGHEMV-DSP SURVEY was flown by Bright Star during October, 2001. A total of 367 line kilometers were flown with 331 kilometers flown on 67 flight lines spaced 300m apart, at an azimuth of 062º/242º, while an additional 35 kilometers were flown orthogonally as tie lines. The DIGHEMV-DSP multi-coil, multi-frequency electromagnetic survey was flown with a sensor height of 35 meters above terrain, and this survey was additionally supplemented by a high sensitivity cesium magnetometer. A GPS controlled navigation system was employed to ensure accurate positioning of the magnetic and electromagnetic geophysical data on base maps. This survey covered the entire TUC from the summit area of Grasshopper Mountain in the north, to Arrastra Creek, the area mapped as the southern limit of the TUC.

A Resolve Fugro helicopter airborne survey was completed by Goldcliff Resource Corporation in 2008, which consisted of 1,533 line kilometers of frequency domain electromagnetics, magnetics and radiometric data collected along E-W oriented flight lines spaced 200 meters apart. A total of 11 flight lines from this survey covered the southern limit of the TUC, as well as the entire area occupied by the current Tulameen South Claim Block 1040375. A total of 41.25 line kilometers of airborne coverage was flown across the property, over claims not part of Goldcliff’s claim holdings. A medium to strong electromagnetic conductor with associated magnetic features oriented with a N-NW strike was identified on the Tulameen South property by this survey. Goldcliff did not follow up on this anomaly as they were exploring for porphyry copper deposits similar to the Copper Mountain porphyries located to the east in Princeton.

A substantial overlap area of coverage from both the Bright Star and Goldcliff airborne surveys was flown in the vicinity of the Arrastra Creek area. The more recent Goldcliff 2008 Fugro airborne survey duplicated all magnetic and electromagnetic features identified by the 2001 Bright Star survey in the overlap area, since similar GPS-controlled geophysical instruments were likewise utilized by Fugro in both instances. The electromagnetic conductor identified by Goldcliff on ground now covered by the Tulameen South property has an EM signature similar to other known massive sulphide deposits located in the vicinity of the property, including both Kuroko and Beshi type polymetallic deposits. Goldcliff was searching for porphyry copper deposits, so they did not follow up on the EM anomaly identified on the Tulameen South property (ARIS Report 31585C).

The only previous field work conducted on the property was reported by Renning (2007) in ARIS File 30179. Renning staked the same area as the Tulameen South property in 2007 based on the published location of the highest reported stream sediment cobalt (Co in ppm by INAA) value reported for the entire BC Regional Geochemical Survey (RGS) database(65,000 stream sediment sample sites). The highest reported stream sediment cobalt anomaly published in the 2007 RGS database (660 ppm Co) is located on the Tulameen South property at UTM NAD 83 - Zone 10 coordinate 661,162E – 5,470,325.8N) on Granite Creek. This significant reported Co value was obtained less than 150 meters downstream from where a significant northwest trending EM anomaly identified by the Goldcliff Fugro survey is located where it crosses Granite Creek. Renning was unaware of the location of this EM anomaly in 2007 since the airborne survey was not flown until a year later in 2008. The results of this airborne survey were not released to the public until February 26, 2011. As a result, 95% of his soil samples sites were located either northeast or southwest of the EM anomaly. Renning did identify a hydromorphic Ni-Cu soil anomaly adjacent to and downslope from the EM anomaly in the general seepage direction towards the Granite Creek stream sediment Co anomaly.

More recently the BCGS conducted a regional mapping program in the Granite Creek area which covered the property. Massey and Oliver (2010) mapped Granite Creek as part of the BCGS “Southern Nicola” project. A report and GIS based map for the area included lithological and structural information. These authors postulated that ultramafic rocks mapped at Granite Creek on the property were possibly related to similar pyroxenites, gabbros and diorites outcrops mapped as part of the TUC by Nixon (1989) located less than 5 kilometers north at Arrastra Creek. Limited bedrock exposure between Arrastra Creek and the property restricted mapping the TUC further southward from Arrastra Creek to ultramafic bedrock mapped at Granite Creek. 8

5.0 Regional Geology

Nixon and Rublee (1988) have reported that Alaskan-type ultramafic complexes in British Columbia are potential hosts for exploitable deposits of platinum metals. The TUC is situated immediately east of the boundary between the Mount Lytton complex and the Quesnellia tectonostratigraphic terrane, and is situated within the southwestern Intermontaine Belt. Early tertiary “transtensional” block faulting related to regional right-lateral transform movement took place along the Fraser River – Straight Creek fault system (Monger, 1985).

The TUC has been mapped over an area of 64 square kilometers, making it the largest of all Alaskan-type ultramafic complexes identified within the Intermontaine Belt. The TUC was previously mapped north-northwest for 20 kilometers between Grasshopper Mountain and Arrastrada Creek in the south, parallel to the contact between Upper Triassic Nicola Group volcanics and metasedimentary rocks, and the granitic terrane of the Eagle Plutonic complex located to the west. The Nicola Group volcanic host rocks in this region are generally intermediate to felsic in composition and belong to the western facies of the Upper Triassic Nicola volcanic assemblage (Nixon and Rublee, 1988). This assemblage has undergone greenschist to amphibolite grade metamorphism.

The lithologies of the TUC are Early Jurassic, elongate ultramafic to gabbroic intrusive bodies. The Tulameen ultramafic assemblage was emplaced into the Upper Triassic Nicola Group during a late Triassic deformation event in an island arc setting near the collision boundary between the Quenellia and Wrangellia plates (Figure 4). During this time, Nicola group volcanics were folded along north to northwest trending fold axis (Findlay, 1969). Age dates for the complex yield a preferred age of 175 Ma (Mid-Jurassic), but this age may be erroneous due to argon loss during metamorphism. Preliminary age dates on the Eagle plutonic complex suggest an Early to mid- Cretaceous (97 to 120 Ma.) age of emplacement (Nixon and Rublee, 1988). Additional age dating was completed by a wide variety of age-dating methods by Grieg (1991).

The eastern margin of the TUC and its host Nicola volcanic assemblage are unconformably overlain by terrigenous metasedimentary and metavolcanic assemblages of the Early Tertiary (Eocene) Princeton Group along with Miocene plateau basalt flows.

Regional structures include major faults trending north-northwest and are characterized by a westward dipping foliation that parallels the eastern margin and extends into the Mount Lytton Batholith, also known as the Eagle Plutonic Assemblage (Figure 4).

Massey and Oliver (2010) mapped Granite Creek as part of the BCGS Southern Nicola project. Several small stocks of diorite, gabbro and pyroxenite mapped in close proximity to the property were described as being possibly related to the Tulameen ultramafic complex (TUC). The Eagle Shear Zone was also mapped on the western half of the Tulameen South claims by Massey and Oliver. This structure flanks the western margin of the TUC, and is defined by a 1.5 to 2 km wide, northwest trending mylonitic zone previously mapped and described by Grieg (2008). The Eagle Shear Zone defines the western margin of the Intermontaine belt of the Quesnellia tectonostratigraphic terrain and is define a convergent margin boundary. This structure is crosscut by several mineralized northeast trending faults. 9

During this study, the geological maps prepared by Massey and Oliver were merged with the TUC maps prepared by Nixon (1998). The merged Fugro magnetic surveys were then draped over the merged regional geological datasets for the TUC and Granite Creek areas. The geophysical magnetic signatures of individual mafic (gabbro) and ultramafic units (magnetite rich pyroxenite) were determined to be traceable under glacial cover. These airborne magnetic features demonstrated that TUC mafic to ultramafic units mapped at Arrastra Creek extend south and southeastward to mafic and ultramafic outcrops mapped at Granite Creek, as well as into the headwater areas of historical platinum placer gravel workings at Lamont and Whipsaw Creeks.

Figure 4. Regional Setting of the TUC in Relation to Tectonstratigraphic Terranes

4 .

Figure 5. Regional Geology of the Tulameen South Property

The Tulameen ultramafic complex is classified as an Alaskan type complex that displays a crude lop-sided concentric arrangement of a central dunite core surrounded by olivine clinopyroxenite, hornblende clinopyroxenite, and gabbroic rocks (Figure 5). The tectonic history during the emplacement of the TUC intrusive assemblage was complex and a multi-stage event.

The general structure of Alaskan-type ultramafic complexes is characterized by a crudely concentric outward zonation of rock types ranging from olivine-bearing to hornblende –rich or magnetite rich clinopyroxenites about a steeply dipping dunite core (Taylor, 1967). Typical cumulate minerals include forsteritic olivine, diopsidic augite, chromite and magnetite. Orthopyroxene is characteristically absent in Alaskan-type ultramafic intrusions, indicating an alkalic affinity. Gabbroic rocks are typically tholeiitic in composition, but in the case of the Tulameen, the gabbro complex is unique in composition since these rocks are classified as syenogabbros and syenodiorites (Nixon et. al., 1997). The property geology of the Tulameen ultramafic complex is similar to other well-documented Alaskan-Type ultramafic complexes located along the southeast coast of Alaska and in the Ural Mountains of Russia.

The Union Bay in southeast Alaska is a concentrically zoned mafic / ultramafic complex with a dunite core and pyroxenite shells outward to a gabbro margin. High-grade PGE samples at Union bay contain significant amounts of iron, chromium and titanium oxides. PGE mineralization includes Pt-Fe alloys, native osmium and hollingworthite. Exploration work to date on the Union Bay complex favors the pyroxenite units as the most promising favourable host lithology for PGE mineralization. In other Alaskan type ultramafic complexes the central dunite core are recognized as having the highest concentrations of platinum mineralization.

Figure 6 indicates age relationships between the TUC and Eagle Plutonic Complexes and Nicola Group stratigraphy for the Tulameen South claims, as defined by Oliver and Massey (2010).

Figure 6. Age Relationships of Geological Units for the Property

6.0 Property Geology

The property geology of the Tulameen South Claims includes sedimentary-volcanic units of the late Triassic Nicola Group intruded by Jurassic to Triassic intrusions of the TUC as well as late Triassic diorites. In this report the ultramafic pyroxenite unit and gabbro mapped on the claims is considered to be related with the emplacement of the TUC (Figure 7).

Figure 7. Property Geology, Airborne Magnetics and Electomagnetics

6.1 Nicola Volcanic and Metasedimentary Rocks

Upper Triassic Nicola volcanic and sedimentary rocks located immediately east of the Eagle Plutonic complex occur on the western half of the Tulameen South property. Metasedimentary and metavolcanic rocks on the western half of the property were subject to extensive ductile deformation within the 1.5 to 2 km wide, northwest trending Eagle Shear Zone, as well as thermal contact metamorphism related to the emplacement of both the Eagle Plutonic complex as well as the TUC.

Nicola clastic metasedimentary rocks include minor beds of black argillite intercalated with grey-green tuffaceous siltstones, sandstones, polymictic conglomerate, cherts, chert breccias and minor limestone. Within the aureole of the Eagle Plutonic complex, these rocks have been metamorphosed and sheared into a sequence of quartz +/- feldspar rich schists with varying proportions of biotite, actinolite, garnet muscovite and magnetite, with epidote and chlorite as secondary alteration minerals. Calcareous beds are recrystallized into white marbles which can be massive to foliated with chlorite and calc-silicate minerals.

Nicola volcanic units intercalated with these metasedimentary rocks include lapilli tuffs, dark grey-green aphryic to plagioclase-phyric pyroxene andesite and hornblende dacite, and rare aphanitic rhyolites. These rock types were subjected to regional greenschist metamorphism as well as higher, amphibolite grade contact metamorphism near the eastern margin of the Eagle Plutonic complex. These rocks, on the western half of the property, were likewise subjected to widespread ductile deformation along the Eagle Shear zone flanking the eastern margin of the Eagle Plutonic complex over a width of 1.5 to 2 kilometers.

Outcrop photos for sites A, B, C and D on the property geology compilation map in Figure 7 were taken by Massey and Oliver (2010) and are presented in Figure 8. All of these rock types were photographed directly along strike from the Tulameen South property on an access road. The UTM coordinate locations are provided in the Figure 8 description for each outcrop photo.

Many of the Nicola volcanic units are altered to chlorite schists within the Eagle Shear corridor, represented by a photographed outcrop of S-folded actinolite chlorite schist at Site A. At Site B, an outcrop of Nicola foliated amphibolite schist is located in close proximity to the contact of the Eagle Plutonic complex. An outcrop of Pyroxene chlorite schist metatuff is photographed at Site C and is located less than 600 meters along strike to the northwest from the northwestern corner of the Tulameen South claim block. An outcrop of boudinaged clast lapilli tuff is presented in Figure 8 as Site D.

Schistosity measurements are all oriented north northwest with moderate to steep dips to the southwest. High angle northeast trending brittle faults are typically represented by topographic valley lows. Granite Creek is recognized as being underlain by a northeast trending lineament and several other similar topographic features parallel to Granite Creek are present on the property and have airborne magnetic features which demonstrate offsets along some of these structures.

Plate 1. Bedrock Photos and Descriptions Near the Property

6.2 Tulameen Ultramafic Complex - Gabbro and Pyroxenite

The Tulameen ultramafic sequence is represented by a dunite core with peripheral olivine clinopyroxenite and late stage magnetite-rich hornblende clinopyroxenites (Figure 5). Magnetite- rich hornblende pyroxenites represent very late stage products of magmatic differentiation of the TUC. There is a well-defined trend of iron enrichment related to the crude concentric zonation of the TUC, with iron enrichment increasing outward from the central dunite core of the complex towards the outer peripheral rock types. The olivine clinopyroxenite rock unit zoned outward from the dunite core is more iron enriched due to the introduction of magmatically precipitated clinopyroxene in the magma chamber. The hornblende clinopyroxenite unit represents a later stage of magmatic evolution that is more iron-rich than the olivine clinopyroxenite due to the increased abundance of iron-rich hornblende and clinopyroxene as well as accessory primary magnetite. The most iron-rich phases of the hornblende clinopyroxenite unit contain > 20% magnetite in deposits that have been historically explored and drilled by previous explorers.

Two large bodies of magnetite-rich pyroxenite were interpreted near the eastern margin of the Tulameen South property by the Goldcliff Resources Fugro airborne survey (ARIS Report 31585C). The location of the layered magnetite-rich pyroxenite intrusions are presented on the property geology map in Figure 7. The relative location of these pyroxenites shares a similar stratigraphic position within the Nicola volcanic and metasedimentary stratigraphy relative to similar magnetite-rich hornblende clinopyroxenites flanking the western margin of the TUC. The pyroxenite intrusions are frequently truncated and offset by brittle northeast trending faults within the TUC as well as along northeast trending faults in the vicinity of Granite Creek on the property.

Hornblende clinopyroxenite (pyroxenite) generally occurs along the periphery of the Tulameen ultramafic complex. Fresh rock is medium to coarse grained and contains diopsidic augite, hornblende, and relatively abundant magnetite with accessory minerals including biotite, rutile, sulfides and apatite. Mafic pegmatites (hornblendites) are preferentially distributed near the margins of hornblende clinopyroxenite bodies (Findlay, 1969). One mafic pegmatites was sampled and determined to contain significant PGE values, with heavy pyrite and chalcopyrite mineralization exposed in the vicinity of Hines Creek along the sheared eastern contact zone between hornblende clinopyroxenites of the TUC with Nicola Group metavolcanic rocks (Zastavnikovich, 1988). Similar analogies may be present along the western margin of the TUC.

Large gabbroic intrusives occur throughout the TUC, proximal to the eastern and southern margins of the complex. Findlay (1969) classified the gabbros as syenogabbros and syenodiorites. These gabbros are commonly in contact with magnetite rich hornblende clinopyroxenite in the TUC. The syenodiorite is restricted to the southeastern margin of the TUC. The essential minerals within the syenogabbros include plagioclase (andesine), clinopyroxene, hornblende and potassium feldspar, with accessory minerals including apatite, opaque minerals, minor biotite and sphene. Layered gabbros are common throughout the TUC, and preserve a wealth of layering features, including modal grading of plagioclase and ferromagnesian phenocrysts in which the density grading may be normal or reversed in different layers (Nixon and Rublee, 1988). 16

There is evidence of a complex alpine tectonic history that occurred during the emplacement of the Tulameen complex, which occurred in a collision plate, island-arc setting. Local displacements of the layered magmatic stratigraphy occur along high-angle transcurrent faults, and may have locally disturbed the magma chamber. Findlay (1969) considers the origin of gabbroic rocks within the Tulameen complex to be comagmatic with the Nicola volcanics and genetically linked but separate from the ultrabasic magma. In summary, the Tulameen South property can be considered to be strategically located at a convergent plate margin.

7.0 Historical Soil Geochemistry and Stream Sediment Results

The highest reported stream sediment cobalt value (Co in ppm by INAA) reported for the entire BC Regional Geochemical Survey (RGS) database is located on the Tulameen South property. This stream sediment sample was collected on Granite Creek in 2007, and reported a value of 660 ppm Co, representing the highest Co value in the entire RGS database. The 2007 RGS stream sediment database includes approximately 65,000 stream sediment sample sites across all of BC. The sample location for this highly anomalous Co value is located on Granite Creek on the Tulameen South property at UTM coordinate 661,162E – 5,470,326N ( NAD 83 - Zone 10). The location of this RGS sample site is indicated on the property geology compilation map in Figure 7.

Renning (2007) staked the same area after the new RGS database was released in order to cover this same anomaly. Goldcliff’s Fugro airborne magnetic and EM survey had not yet been flown, so Renning was unaware of the location of the significant airborne EM anomaly located less than 150 meters upstream from the highly anomalous RGS sample site. Furthermore, the results of this airborne survey were not released to the public until February 26, 2011. As a result, when Renning conducted his soil survey targeting the source of the RGS Co anomaly, 95% of his soil samples sites were located either northeast or southwest of the EM anomaly. Renning did successfully identify a hydromorphic Ni-Cu soil anomaly adjacent to and downslope to the northeast from the EM anomaly in the general soil creep and seepage direction towards the location of the Granite Creek stream sediment Co anomaly. Since Renning provided UTM sample location data for his entire soil sampling program in ARIS report 30179, the assay values for Cu (ppm) were plotted on the Tulameen South property relative to the highly anomalous RGS stream sediment Co value, interpreted geology and the location of the Fugro airborne EM conductor. These results are presented in Figure 9.

Only five soil samples were actually collected along the Fugro EM conductor axis, with the vast majority of the 129 samples collected being located on hillsides upstream and southwest of the airborne anomaly. A weakly anomalous Ni (ppm) anomaly is present in the same hydromorphic soil dispersion area occupied by the Cu anomaly.

Figure 8. Property Geology with EM, RGS Co (ppm) and Cu (ppm) Soil Geochemistry

8.0 Summary of 2016 Field Prospecting Results

A three man crew prospected along the north-northwest trending axis of the EM anomaly across the Tulameen South claims in an effort to identify outcrops located on or adjacent to the EM anomaly. The purpose of the prospecting program was directed towards identifying and collecting the bedrock material related to the source of the Fugro EM anomaly. All logging roads and access trails were also prospected with the use of GPS. A total of 10 man days of prospecting were completed on the claims during the period from September 26th to October 18th 2015. Significant snowfalls in mid-October forced the prospecting program to be halted before the fieldwork could be completed. No outcrops were identified during the prospecting program and it was determined that thick overburden covers a significant portion of the anomaly. A summary of field expenses is presented in Appendix A of this report.

9.0 Reprocessing of Fugro Airborne Magnetic and EM Survey

SJ Geophysics was hired to reprocess the raw xyz data collected from the 2008 Goldcliff Fugro airborne magnetic and electromagnetic survey flight line data that provided full coverage over the property. A total of 11 flight lines from this survey covered the entire Tulameen South Claim Block 1040375. A total of 41.25 line kilometers of airborne coverage was flown across the property along east-west oriented flight lines, with each flight line spaced 300 meters apart.

During the period of time when Goldcliff Resource Corporation originally flew the 2008 Fugro airborne survey, the anomaly identified on the Tulameen South property was located on claims not held by Goldcliff. During that time, Goldcliff was focused on targeting porphyry copper anomalies similar to the Copper Mountain deposits near Princeton. The linear EM conductor identified on the Tulameen South property was more conducive to the type of EM geophysical anomaly associated with a massive sulphide target, which was not the type of target Goldcliff was interested in pursuing. As a result, Goldcliff did not follow-up with any option agreement, nor did they complete follow-up ground surveys to further test the nature of the EM anomaly.

The November 30, 2016 Memo titled, “Geophysical Interpretation of Resolve magnetic and EM Survey, Tulameen South Claims, Granite Creek Project,” provided analysis of magnetic and frequency domain EM components of the survey with the primary intention of determining the source of a NW striking EM conductive response that coincides with a cobalt stream sediment anomaly. UBC inversion modelling was conducted on the magnetic data while analysis of the electromagnetic data was completed using the ArjunAir 2.5 inversion algorithm.

The SJ Geophysics inversion study concluded that the main EM conductor that coincides with an RGS cobalt stream sediment on Granite Creek can be interpreted as reflecting a massive sulphide type of body, formed along the northeast margin of the Eagle Shear Zone. Depth to source is unclear due to the presence of a conductive surface layer, but is estimated as greater than 50 meters. Figure 10 is an interpretation map of the main conductive trend and possible buried conductive lens. The complete SJ Geophysics Memo is attached as an Appendix to this report.

Figure 9. Possible Buried Conductive Lens and Recommended Ground EM Survey Area

10.0 Surrounding Mineralization

Inversion modelling of the raw data obtained for 2008 Fugro Resolve airborne frequency domain and magnetic survey flown over the Tulameen South property has identified a massive sulphide target located under deep overburden with an associated highly anomalous RGS Co value of 660 ppm. A review of all known mineral occurrences surrounding this target was completed in order to more fully understand the possible exploration models to be considered while evaluating the Tulameen South massive sulphide target. Figure 11 indicates the distribution of known significant Minfile occurrences surrounding the property, which includes Besshi-type VMS Cu- Pb-Zn-Au-Ag Kuroko-type VMS Cu-Pb-Zn-Ag-Au mineralization, and porphyry Cu-Mo deposits, and numerous historical placer PGE-Au workings. The Giant Mascot deposit was the highest grade Ni-Cu-Co-PGE deposit mined in BC with 4.2 Mt mined at an average grade of 0.77% Ni, 0.34% Cu, minor Co and unreported PGE, Ag and Au. This Nickel deposit is classified as a convergent margin type, and is considered to be the best model for the property. 20

Figure 10. Minfile Occurrences Surrounding the Property

11.0 Conclusions and Recommendations

SJ Geophysics completed inversion modelling of Fugro Resolve airborne magnetic and frequency domain electromagnetic data on the Tulameen South property. The SJ Geophysics results suggest that a possible massive sulphide target classified as a buried conductive lens or series of lenses may be present on the eastern half of the property. This massive sulphide target coincides with the highest RGS cobalt value (66o ppm) in a database of approximately 55,000 stream sediments for the province of BC.

The plate tectonic environment in which this possible massive sulphide exploration target occurs on the property is related to a convergent margin boundary located along the western margin of the Quesnellia terrane. The largest known Alaskan-type ultramafic complex (TUC) in North America was emplaced along this boundary and was comagmatic with the emplacement of a large body of intermingled layered syenogabbros and diorites. Gabbros and magnetite rich pyroxenites considered to be linked to the southwestern margin of the TUC are present on the property. The link between mafic-ultramafic rock types and tectonic environment suggests that the most probable deposit type that needs to be considered for this exploration target is a convergent margin type nickel-copper-cobalt-PGE type deposit. To date, several deposits of this type are recognized in British Columbia. These deposits are located at convergent margin terrane boundaries, and the most economic deposit of this type mined in BC is the Giant Mascot deposit, located less than 50 kilometers west of the property.

Significant nickel sulphide mineralization at other known convergent margin localities in British Columbia includes the Turnagain deposit (865Mt @ 0.21% Ni, and 013% Co). The Polaris deposit prospect has a nickel grade of 0.25% Ni and 1.2% Cu with significant PGE credits for both Pt and Pd. Both the Turnagain and Polaris deposits are early Jurassic in age, similar to the age of emplacement of the TUC. The Duke Island and Salt Chuck Ni-Cu- PGE occurrences in southeastern Alaska are both small deposits with Ni-Cu PGE credits. The ultramafic complexes associated with all of the above deposits are quite small in surface area when compared to the Tulameen ultramafic complex, which has a surface area in excess of approximately 80 square kilometers.

A GIS compilation of all previous work indicates that the anomaly flanks the northeastern margin of a major deformation corridor known as the Eagle Shear Zone. The host rock is sheared Nicola metavolcanics intruded by gabbro and magnetite rich pyroxenite units considered to be potentially associated with the southeastern extension of the Tulameen Ultramafic Complex. A ground EM survey is recommended to further define the 3D nature of this sulphide target.

The nature of the sulphide mineralization as described by SJ Geophysics fits the model for the Giant Mascot deposit since the inversion modelling of the magnetic and electromagnetic data suggests as series of plunging lensoidal shoots that pinch and swell along the northeast margin of the Eagle Shear Zone. Additional stream sediment sampling, prospecting and a ground based EM survey spaced on 100m lines is required to further refine the Tulameen South target. Should the next phase of exploration prove to be promising, this would be followed by diamond drilling program targeting massive or semi-massive sulphide deposits located within this favourable geological and structural environment. 22

12.0 Expenditures – Total Expenditures for June 6 to November 30, 2016 = $18,765.80

Table 2. Summary of June 6 to November 30, 2016 Expenditures - Tulameen South Project

Exploration Work type Comment Days Totals

Personnel (Name)* / Position Field Days (list actual days) Days Rate Subtotal* Don Bishop September 16, 18, 21, 22, 23, 27, 28, 29, 30 7.533 $300.00 $2259.90 Don Bishop Oct 1, 2, 8, 13,14 , 18,19, 2016 6.533 $300.00 $1959.90 Kenny Bishop Sept 26-27, Oct 2, 2016 3.0625 $176.00 $539.00 Ken Preston Sept 26-27, 2016 2 $176.00 $352.00

Office Studies William Yeomans August. 8 to 12, 2016 3 $700.00 $2100.00 Literature search William Yeomans August 2-5, 2016 1 $700.00 $700.00 Database compilation William Yeomans June 6-10, 2016 3 $700.00 $2100.00 Computer modelling Airborne Mag – SJ Geophysics, Delta BC 5.25 $40.00 $210.00 Reprocessing of data Airborne Mag & EM- SJ Geophysics, Delta BC 5.75 $1,000 $7,130.00 General research Report preparation General research Sub-total Expenditure $17,140.80 $17,140.80 Airborne Exploration Surveys Line Kilometres / Enter total invoiced amount Aeromagnetics $0.00 $0.00 Radiometrics $0.00 $0.00 Electromagnetics $0.00 $0.00 Gravity $0.00 $0.00 Digital terrain modelling $0.00 $0.00 Other (specify) $0.00 $0.00 Sub-total Expenditure $0.00 $0.00 Area in Hectares / Enter total invoiced amount Remote Sensing or list personnel Aerial photography $0.00 $0.00 LANDSAT $0.00 $0.00 Other (specify) $0.00 $0.00 Sub-total Expenditure $0.00 $0.00 Ground Exploration Surveys Area in Hectares/List Personnel Geological mapping note: expenditures Regional here should be captured in Reconnaissance Personnel 23

field expenditures Prospect above Underground Define by length and width Trenches Define by length and width $0.00 $0.00 Sub-total Expenditure $0.00 Line Kilometres / Enter total amount invoiced Ground geophysics list personnel Radiometrics Magnetics Gravity Digital terrain modelling Electromagnetics note: expenditures for your crew in the field SP/AP/EP should be captured above in Personnel IP field expenditures above AMT/CSAMT Resistivity Complex resistivity Seismic reflection Seismic refraction Well logging Define by total length Geophysical interpretation Petrophysics Other (specify) Sub-total Expenditure $0.00 $0.00 Geochemical Surveying Number of Samples No. Rate Subtotal

Drill (cuttings, core, etc.) $0.00 $0.00 Stream sediment $0.00 $0.00 Soil $0.00 $0.00 Rock $0.00 $0.00 Water $0.00 $0.00 Biogeochemistry $0.00 $0.00 Whole rock $0.00 $0.00 Petrology $0.00 $0.00 Other (specify) $0.00 $0.00 Sub-total Expenditure $0.00 $0.00 Drilling No. of Holes, Size of Core and Metres No. Rate Subtotal Diamond $0.00 $0.00 Reverse circulation (RC) $0.00 $0.00 Rotary air blast (RAB) $0.00 $0.00 Other (specify) $0.00 $0.00 Sub-total Expenditure $0.00 $0.00 24

Other Operations Clarify No. Rate Subtotal Trenching $0.00 $0.00 Bulk sampling $0.00 $0.00 Underground development $0.00 $0.00 Other (specify) $0.00 $0.00 $0.00 $0.00 Reclamation Clarify No. Rate Subtotal After drilling $0.00 $0.00 Monitoring $0.00 $0.00 Other (specify) $0.00 $0.00

Transportation No. Rate Subtotal Airfare $0.00 $0.00 Taxi $0.00 $0.00 truck rental Don Bishop truck rental per day 13 days $125.00 $1625.00 $1625.00 kilometers $0.00 $0.00 ATV $0.00 $0.00 fuel $0.00 $70.00 Helicopter (hours) $0.00 $0.00 Fuel (litres/hour) $0.00 $0.00 Other Sub-total Expenditure $1625.00 $18,765.80 Accommodation & Food Rates per day Hotel $0.00 Camp $0.00 $0.00 Meals $0.00 $0.00 Sub-total Expenditure $0.00 Miscellaneous Telephone $0.00 $0.00 Tools, office/reference materials

Equipment Rentals Field Gear (Specify) $0.00 $0.00 Other (Specify) $0.00 $0.00 Freight, rock samples $0.00 $0.00 $0.00 $0.00 Sub-total Expenditures $0.00

TOTAL Expenditures $18,765.80 25

13.0 References

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14.0 Qualifications of Author

I, William C. Yeomans. P.Geo., do hereby certify that as the author of the report entitled “Technical Report on a Geological, Geophysical and Geochemical Review: Southern Tulameen Ultramafic Complex -Tulameen South Claims – Similkameen District, Southern British Columbia." and dated February 28th 2017, I hereby make the following statements:

1. I am a consulting geologist and President of Yeomans Geological Inc. located at 3811 Harding Road, Westbank. British Columbia, Canada, V4T 2J8

2. I am a graduate of Queen's University, Kingston, Ontario. Canada, in 1982 with a B.Sc. Honours Geology degree;

3. I am a Practising Member of the Association of Professional Engineers and Geoscientists of British Columbia (027187) and a member of the Society of Economic Geologists;

4. I have practiced my profession continuously since graduation. I have over 33 years of experience in mineral exploration and over 10 years of experience as an independent consultant. I have explored throughout the Americas and China with experience in exploration programs for base metals, nickel, platinum group metals, uranium, diamonds and gold. I have supervised definition drilling of advanced stage gold properties; management experience at the national and international level, including experience at President/Vice-President/Director level;

5. 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), I fulfil the requirements to be a "qualified person'' for the purpose of this technical report. I am familiar with sections 33(1) and section 16 of the Mineral Tenure Act for British Columbia;

6. I am responsible for all sections of the Technical Report titled “Technical Report on a Geological, Geophysical and Geochemical Review: Southern Tulameen Ultramafic Complex -Tulameen South Claims – Similkameen District, Southern British Columbia." and dated February 27th, 2017.

7. I have previously worked on the Tulameen Ultramafic Complex and have conducted extensive independent research on the Tulameen Ultramafic complex over the past 16 years;

8. As of the date of this report, to my knowledge, information and belief, this Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

9. For the purpose of this report I have completed a technical review of available data based on work completed during this study. The work included a complete GIS review and integration of all available data for the property, and SJ Geophysics of Delta BC was commissioned to complete reprocessing of airborne data, which involved an inversion modelling study of Fugro Resolve airborne flight line data acquired over the Tulameen South project.

signed by

APPENDIX A

11966 – 95A Avenue, Delta, BC V4C 3W2 Canada Tel +1 (604) 582-1100 www.sjgeophysics.com

MEMORANDUM

Date: November 30, 2016

From: E. Trent Pezzot, P.Geo.

To: William Yeomans

SUBJECT: Geophysical Interpretation of Resolve magnetic and EM Survey, Tulameen South Claims, Granite Creek Project

William Yeomans owns the 3.0 x 3.75 km (740 ha) Granite Creek Project claim block in the Tulameen area of B.C. This claim lies within the much larger (45,244 ha) Tulameen Project property owned by Goldcliff Resource Corporation. In 2008, a 1500+ line kilometer multi-sensor airborne survey (Resolve) was flown across the Tulameen Project property. Approximately 41 line kilometers of data, distributed across 11 east-west lines (30430 to 30530), spaced at 300 metre intervals, were extracted from the “Resolve” database to cover the Granite Creek Project claim block. Yeomans requested SJ Geophysics Ltd. (SJ) to review and interpret the magnetic and frequency domain EM components of the survey with the primary intention of determining the possible source of a northwest striking EM conductive response that coincides with a cobalt stream sediment anomaly. Regional geology maps show the Granite Creek Project claim block underlain primarily by the Eagle Shear zone, a N35°W trending, 1800 metre wide band of upper Triassic Nicola Group schistose volcanics (uTrNv_sch) intruded by two bands of Tulameen ultramafic complex gabbros (Gb). Northeast striking fault zones are interpreted along the southeast edge of the claim and some 500 metres to the northwest. The Tulameen area has the geological setting for deposit types of alkalic copper-gold porphyry, Alaskan gold-platinum, Kuroko gold-silver-zinc and others. Of particular interest on the Granite Creek Project claim is a strong cobalt anomaly recorded in the regional stream sampling geochemical database and reported soil geochemical anomaly located upslope, to the southeast of the Granite Creek.

Figure 1: Regional Geology – Granite Creek Claim – Resolve Survey Grid – EM anomalies Both the magnetic and EM data reveal a series of N30°W striking features underlying the property. These trends are likely geological in nature as they cross local topographic features. In addition, character changes in both the magnetic and EM data and discontinuities in the northwesterly trends suggest the presence of a northeasterly striking fault zone along Granite Creek. Magnetic highs closely correlate with the gabbro intrusions that cross the western half of the property. The 3D magnetic inversion suggests that across the southeastern half of the claim, the two gabbro bands may trace the limbs of a steep-sided synformal structure that plunges to the northwest. Across the northwestern half of the property, the susceptibility of this unit appears to decrease but hints of the synformal structure remain.

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A subtle magnetic lineation closely follows the northeastern edge of the Eagle Shear zone. The 3D magnetic inversion study models this as a contact, dipping approximately 75° to the SW that separates higher susceptibility Eagle Shear zone schistose volcanics to the southwest from lower susceptibility upper Triassic Nicola Group volcanics (uTrN) to the northeast. Small, circular magnetic highs straddling the NE corner of the claim block exhibit higher amplitudes than those associated with the gabbro intrusions to the west. The 3D magnetic inversion models these as pipe or plug-like intrusive features. These anomalies are likely reflecting unmapped occurrences of the Tulameen honblende clinopyroxenite unit (Hpx) mapped to the east of the claim.

Figure 2: Total Magnetic Field Intensity Plan Map

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Figure 3: SW-NE Cross-Section through Mag3D Inversion Model. Side view looking from South

Figure 4: Mag3D Inversion Model – Isosurface Display – Elevated view from SE corner of block Red = 0.01 SI, Orange = 0.005 SI, Yellow = 0.0025 SI, Green = 0.001 SI SJ Geophysics Ltd. Page 4 of 11 11966 95A Avenue, Delta B.C., V4C 3W2

While the magnetic responses are tracing both surface and deep geological structures, the EM data responses appear to have a depth of investigation limit of ~150-200 metres. The EM inversion analysis suggests this is likely due to the presence of a highly conductive surface layer (possibly clay overburden) across much of the study area. There are two main conductive trends mapped across the property. The “main zone”, which is the main focus of this study, forms a continuous lineation that extends from the southeast corner of the property to the middle of the northern border (662720E/5467930N to 661000E/5470600N). This trend lies within and closely follows the northeastern edge of the Eagle Shear zone. The “west zone” forms a discontinuous lineation located some 800 metres to the southwest of and running roughly parallel to the “main zone”. The “west zone” appears to be spatially related to the southeastern band of gabbro intrusions.

Figure 5: Coplanar 1800 Hz Quadrature Amplitude Color Plan Map.

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The EM interpretation utilized two different techniques. Profile analysis studies differences in the profile characteristics of the EM responses between the coaxial and coplanar coil configurations to interpret the general geometric characteristics of the source conductors. Amplitude variations between the inphase and quadrature components and those between the different frequencies are used to calculate an estimate of the conductivity and conductivity-thickness of the source material.

Figure 6: Stacked Profile Map – Selected EM Components. Red = Coaxial 3300 hz. Green = Coplanar 8200 hz. Purple = Coplanar 1800 hz. Solid Lines – Inphase component. Dashed Lines – Quadrature component. Vertical Scale (all profiles) = 0.5 ppm /ground metre (150 ppm across the 300m line separation)

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Inversion analysis, using the ArjunAir 2.5 inversion algorithm, was used to build cross-sectional models along the survey lines that show one possible distribution of the conductivity/resistivity properties of the subsurface rocks that might generate the measured data.

Figure 7: 3D Perspective Image of EM Inversion Cross-sections. Elevated view from South.

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The west zone is characterized by higher amplitudes in the quadrature component than the inphase component, while the main zone exhibits equal or stronger responses in the inphase component. This suggests the source material of the main zone has a higher conductivity than that of the west zone. No detailed analysis of the west zone was undertaken at this time.

Figure 8: EM Profiles – Line 30470. Shows quadrature/inphase amplitude relationship between main and west zone conductors.

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The main zone conductor can be separated into two distinct sections, broken in the vicinity of line 30470 where Granite Creek crosses a geophysically inferred fault zone and changes direction. To the north, from lines 30470 to 30450, profile analysis suggests the conductor has the properties of both a horizontal ribbon type of geometry and a thin, steep SW dipping dyke. Inversion cross- sections along these lines suggest the conductor forms a “V” or “U” shaped lineation extending from around 50 metres thickness at the south (30470) to 100 metres thickness to the north (30450). On the two lines to the north (30440 and 30430) the amplitude of the responses decrease rapidly as the lineation crosses up and over the rim of the western slope of the valley, suggesting we may be near or off the end of the conductive trend. These responses suggest the presence of two conductive sources in the area. The steep SW dipping plate response likely traces the edge of the Eagle Shear zone while the horizontal ribbon and inversion “trough” models could be conductive sediments that fill the northerly draining, steep-sided valley hosting Granite Creek.

Figure 9: Line 30460 – EM Profiles and EM Inversion Cross-section Cross-section: Purple < 30 ohm-m, Green >200 ohm-m

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South of line 30470, the conductive lineation continues along strike (150°) some 1500 metres to the southeast, to line 30510, extending up the southeastern slope of the Granite Creek valley. From line 30480N to 30500N, the EM response increases in amplitude and changes character to suggest the source likely forms into spherical or elongated lens shaped body. Inversion cross-sections suggest this hillside is covered by a thick layer of conductive overburden. However, the inversions also show a significant thickening of this conductive sheet along the EM conductor trend. This trend increases in amplitude to the southeast, reaching a maximum on line 30500, then drops off abruptly. The southeasterly termination of the conductor coincides with a NE striking fault on the regional geology map. These responses are accompanied by a calculated increase in the conductance (product of conductivity times thickness) of the source material of up to five times (5x) what it is seen to the north of line 30470. These responses can be interpreted as reflecting a massive sulphide type of body, formed along the northeastern edge of the Eagle Shear zone. Depth to source is unclear, due to the presence of a conductive surface layer, but is estimated as greater than 50 metres.

Figure 10: Line 30490 EM Profiles and Inversion Cross-section Cross-section: Purple < 30 ohm-m, Green >200 ohm-m The main objective of this interpretation was to determine whether any of the conductive lineations mapped by the 2008 airborne “Resolve” survey might be attributed to a massive sulphide source. The analysis has revealed that a 1400 metre long section of a conductive trend following the northeastern edge of the Eagle Shear zone exhibits characteristics that fit these criteria. The source material is likely buried more than 50 metres deep and drilling will be required to confirm the interpretation.

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Considering the general nature of these types of deposits, it is considered unlikely that the EM anomaly is reflecting a single, continuous body. It is more likely that the source would be comprised of several smaller bodies, dispersed along the Eagle Shear contact. Detailed ground EM surveying will be required to delineate individual targets along the trend.

Figure 11: Target Area for Ground EM Survey Considering the estimated depth and nature of the targets and the topographic relief in the area, a large loop time domain EM survey is recommended as the next exploration tool. A survey grid, consisting of approximately 20 line kilometres of 060° oriented lines, spaced at 100 metre intervals is recommended to cover the high potential target area. Approximately $50,000 is estimated for the cost of this work, including data acquisition and interpretation. Specific details concerning survey parameters will be determined after further study and these changes will likely effect the final cost.

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