Property and Location

The Hislop gold project is located in northern Ontario, about 100 km east of Timmins, Ontario. The project is in an established mining area, with the town of Holtyre a few kilometres away. Electrical power is available on site and a gravel road runs through the property. Custom milling and skilled labour is also available in the area.

The property consists of four patented claims (both surface and mining rights), which cover one square mile and surface rights to an adjacent 180-acre property.

Stroud is the 100% owner of the Hislop Gold Project and has worked the property with and without joint venture partners since 1984.

Recent Developments and Proposed Exploration Program

A 9,000 metre drilling program has been recently completed on the Hislop gold property, (see Press Releases section for recent assay results). Drill hole 259 intersected a high-grade mineralized zone grading 285(g/t) gold over 1.38 metres, (8.31oz/ton) at the -337metre level. This intersection appears to be the extension of the zone encountered in drill hole number 48 which encountered 4.15 metres of 15.36(g/t) gold at the -165-metre level. This high-grade intersection is encouraging as it demonstrates that good gold values extend beyond the -300 metre level.

A Qualifying Report compliant with NI 43-101 confirms indicated resources of 483,500 tonnes at 6.61 grams of gold per tonne, and inferred resources of 367,700 tonnes at 5.90 grams of gold per tonne. Gold deposits along the Destor Porcupine fault zone tend to get richer with depth. The Company has looked into the feasibility of carrying out an underground program on the property. There is potential for the discovery of more mineralized zones on the property with additional drilling.