Proposed Acquisition

The Company has directed the Vendor to engage TetraTech, Inc and other relevant specialists or

professionals in association with the preparation of the ITR.  The Vendor has advised that, based on the information provided by Clyde L. Smith, the Consultant

Geologist to the Vendor, the planned Stage 1 Airborne magnetic and radiometric survey on the EL1857 Licence has been completed. The survey was conducted by Precision GeoSurveys of

Vancouver, Canada, covering an area of approximately 300 square kilometres and included a total ofapproximately 1,400 line kilometres on 100m, 200m,and 400m spaced north-south lines. Preliminary

interpretation of magnetic results shows a distinct elongate magnetic low anomaly that reflects a closecorrespondence with outcropping crystalline basement rocks in the core of the Prince Alexander

Mountains and to locations indicated on the published geologic map of the area as significant alluvial gold sites. The magnetic low is believed to reflect hydrothermal alteration and related gold

mineralization over a strike length of at least three kilometres. The Vendor has retained the consultingservices of Thomas Weis, who will provide detailedinterpretation of anomalies and make

recommendations for Stage 2 ground follow-up geological, geochemical and geophysical evaluations preparatory to selection of Stage 3 drill sites. Mr Weis was previously Chief Geophysicist, Newmont

Mining Corp from 2002 to 2006, and is a highly regarded geophysicist specialising in magnetic andradiometric interpretations for minerals exploration.

By Order of the Board

Ong Bee Hoon

Company Secretary

27 May 2013