TECHNICAL REPORT AND RESOURCE ESTIMATE ON THE TUVATU GOLD PROPERTY VITI LEVU, FIJI Latitude 170 42’ 49” South Longitude 1770 34.5’ 39” East For X-Tal Minerals Corp. by P&E Mining Consultants Inc. Suite 202 - 2 County Court Blvd Brampton, Ontario, L6W 3W8 NI-43-101F1 TECHNICAL REPORT No 186 Dr. Wayne D. Ewert, P. Geo. Mr. Eugene Puritch, P. Eng. Mr. David Burga, P. Geo. Mr. Fred H. Brown, CPG, Pr.Sci.Nat. Effective Date: October 1, 2010 Signing Date: October 19, 2010 TABLE OF CONTENTS 1.0 INTRODUCTION.................................................................................................................. 1 1.1 TERMS OF REFERENCE ....................................................................................... 1 1.2 SOURCES OF INFORMATION ............................................................................. 2 1.3 UNITS AND CURRENCY ........................................................................................ 2 1.4 GLOSSARY AND ABBREVIATION OF TERMS ................................................ 2 2.0 RELIANCE ON OTHER EXPERTS .................................................................................. 4 3.0. PROPERTY DESCRIPTION AND LOCATION .............................................................. 5 3.1 TUVATU PROPERTY LOCATION ....................................................................... 5 3.2 PROPERTY DESCRIPTION AND TENURE ....................................................... 5 3.2.1 OWNERSHIP ................................................................................................. 8 3.3 X-TAL - AER AGREEMENT .................................................................................. 9 3.4 ROYALTIES, PERMITS AND OBLIGATIONS ................................................. 10 3.5 PERMITS AND ENVIRONMENTAL ISSUES. .................................................. 11 3.6 2009-10 EXPLORATION EXPENDITURES ON TUVATU PROJECT. .......... 12 4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ..................................................................................................... 13 4.1 ACCESS .................................................................................................................... 13 4.2 CLIMATE ................................................................................................................ 14 4.3 LOCAL RESOURCES ............................................................................................ 15 4.4 INFRASTRUCTURE .............................................................................................. 15 4.5 POWER .................................................................................................................... 15 4.6 WATER .................................................................................................................... 16 4.7 AIR SERVICES ....................................................................................................... 16 4.8 SHIPPING ................................................................................................................ 16 4.9 LAND TRANSPORT............................................................................................... 16 4.10 PHYSIOGRAPHY ................................................................................................... 17 5.0 HISTORY AND PREVIOUS EXPLORATION ............................................................... 18 5.1 EXPLORATION HISTORY .................................................................................. 18 5.2 HISTORIC GEOPHYSICS .................................................................................... 19 5.2.1 MAGNETIC AND RADIOMETRIC SURVEYS ..................................... 19 5.2.2 GRAVITY ..................................................................................................... 20 5.3 HISTORICAL IN-HOUSE FEASIBILITY STAGE STUDIES .......................... 20 5.4 HISTORIC MINERAL RESERVES ..................................................................... 20 5.5 HISTORICAL PRODUCTION .............................................................................. 21 6.0 GEOLOGICAL SETTING ................................................................................................. 22 6.1 REGIONAL GEOLOGY ........................................................................................ 22 6.1.1 TECTONIC SETTING ............................................................................... 22 6.1.2 REGIONAL STRATIGRAPHY ................................................................ 23 6.2 GEOLOGY OF THE TUVATU AREA ................................................................. 25 6.3 TUVATU DEPOSIT GEOLOGY .......................................................................... 26 6.4 TUVATU MINE (SUB-SURFACE) ....................................................................... 28 7.0 DEPOSIT TYPES ................................................................................................................ 30 7.1 INTRODUCTION.................................................................................................... 30 7.2 METALLOGENIC MODELS ................................................................................ 30 7.2.1 GENERAL CONCEPTS ............................................................................. 30 7.3 PROPOSED TUVATU MODEL ............................................................................ 31 8.0 MINERALIZATION ........................................................................................................... 33 8.1 INTRODUCTION.................................................................................................... 33 8.2 PRECIOUS METAL MINERALIZATION OF THE TUVATU DEPOSIT ..... 33 8.3 MINERALIZATION IN THE EXPLORATION DECLINE .............................. 34 8.4 OTHER MINERALIZED PROSPECTS .............................................................. 36 8.4.1 NUBUNIDIKE PROSPECT ....................................................................... 37 8.4.2 URA CREEK PROSPECT ......................................................................... 38 8.4.3 JOMAKI PROSPECT ................................................................................. 39 8.4.4 MALAWAI PROSPECT............................................................................. 39 8.4.5 QUALIBUA PROSPECT ............................................................................ 40 8.4.6 KUBU PROSPECT ...................................................................................... 40 8.4.7 KOROBEBE PROSPECT .......................................................................... 40 8.4.8 TUVATU SOUTH PROSPECT ................................................................. 40 8.4.9 SAWASAWA EAST AND LUKES PROSPECTS ................................... 41 9.0 EXPLORATION .................................................................................................................. 42 9.1 RECENT EXPLORATION (2008) ........................................................................ 42 9.2 EXPLORATION ON OTHER PROSPECTS ON THE PROPERTY ............... 42 9.2.1 SAMPLING RESULTS ............................................................................... 43 9.2.2 THE NUBUNIDIKE PROSPECT .............................................................. 43 9.2.3 THE URA CREEK STRUCTURE ............................................................ 43 9.2.4 JOMAKI PROSPECT ................................................................................. 43 9.2.5 QALIBUA PROSPECT ............................................................................... 44 9.2.6 TUVATU SOUTH PROSPECT ................................................................. 44 10.0 DRILLING ........................................................................................................................... 46 10.1 2008-2010 LION ONE ............................................................................................. 46 11.0 SAMPLING METHOD AND APPROACH ..................................................................... 47 12.0 SAMPLE PREPARATION, ANALYSES AND SECURITY .......................................... 48 SECURITY OF SAMPLES .................................................................................... 48 13.0 DATA VERIFICATION ..................................................................................................... 50 13.1 P&E SITE VISIT AND INDEPENDENT SAMPLING ....................................... 50 13.2 HISTORICAL DATA VERIFICATION ............................................................... 51 14.0 ADJACENT PROPERTIES ............................................................................................... 52 14.1 GOLDEN RIM - SABETO (GOLD) PROJECT .................................................. 53 14.1.1 TUVATU NORTH PROSPECT ................................................................. 54 14.1.2 BANANA CREEK PROSPECT ................................................................. 56 14.1.3 CENTRAL RIDGE PROJECT .................................................................. 56 15.0 MINERAL PROCESSING AND METALLURGICAL TESTING................................ 58 15.1 PREVIOUS METALLURGICAL TESTING ....................................................... 58 16.0 MINERAL RESOURCES AND RESERVES ................................................................... 60 16.1 INTRODUCTION...................................................................................................