Previous Exploration

Gold was first discovered on the property around 1900 on what is now known as the No. 2 zone. Some surface pitting and trenching was performed and limited underground work carried out from a 56 foot shaft. About 270 tons of ore were shipped in 1909, before the prospect was abandoned the following year. Similar mineralization was discovered at the No. 3 zone but no production records are available.

In 1933 a two-compartment shaft was sunk to 525 feet on the No. 1 zone and levels were established at 100 feet, 200 feet, 300 feet, 400 feet and 500 feet below surface. No production records are available.

Stroud Diamond Drilling

Work ceased on the property in 1937 and it remained essentially dormant until late 1985, when the Company and Lacana Mining Corporation (Which subsequently became Homestake Canada Inc. and is now a subsidiary of Barrick Gold Corporation), in a joint venture, carried out work including prospecting, geophysics and 63,483 feet of drilling on the property between 1985 and 1996.

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The gold mineralization in the No. 1 zone is open along strike and at depth.

The No. 2 zone is relatively unexplored and no mineral resources have been assigned to the zone.

3 In 1996 Dr. Robert Morse, an independent technical consultant to the Company, calculated "probable ore" (as defined in former National Policy 2A ("NP 2A") of the Canadian Securities Administrators and equivalent to an "indicated mineral resource" under National Instrument 43-101 ("NI 43-101")) of 348,240 tons grading 0.203 oz/t gold and "possible ore" (as defined in former NP 2A and equivalent to an "inferred mineral resource" under NI 43-101) of 57,237 tons grading 0.173 oz/t gold for the property. These calculations were based on a cut-off grade of 0.10 oz/t gold, a minimum horizontal width of 5 feet and a density of 10.7 cubic feet per ton. The Company believes that these calculations continue to be relevant and reliable. However, insufficient work has been done by a qualified person to classify these historical estimates as current mineral resources under NI 43-101 and the Company is not treating these historical estimates as current mineral resources under NI 43-101. (See press release June 9, 2003.)