EVALUATION REPORT on the

HIBERNIA PROJECT
Township 18N, Range 14W, Sections 19, 30 and 31 Township 18N, Range 15W, Sections 24, 25 and 36 Hibernia Peak 7.5 minute Quadrangle

Latitude 34o56N

Longitude 113o48W

Maynard/Cedar Mining Districts, Mohave County, Arizona

For Coelton Ventures Ltd. 1701 Robert Lang Drive Courtenay, British Columbia V9N 1A2

By: Jean Pautler, P.Geo. JP Exploration Services Inc. #103-108 Elliott Street Whitehorse, Yukon Y1A 6C4

July 20, 2008

1.0

Executive Summary

The 1166 hectare Hibernia Project area is located in the Maynard and Cedar Mining Districts, 70 km by road southeast of Kingman, Arizona, in south central Mohave County, approximately 230 km southeast of Las Vegas, Nevada and 235 km north of Phoenix, Arizona at a latitude of 3456N and a longitude of 11348W. The property is dissected by the easterly draining Hibernia Canyon along the eastern slope of the Hualapai Mountains within the Mohave Desert, approximately 15 km west of United States Highway 93. The Project comprises one patented mineral claim (the Hibernian), 111 federal lode clams (HIB 1 to HIB 111) and a mineral exploration permit on a 590 acre state lease, pending approval of the final 320 acres. The Hibernia Project covers a 350/40-60E trending low sulphidation epithermal vein, ranging from approximately <1m to approximately 5m wide, which has been discontinuously traced over a strike length of 2.0 km. The vein fills a fissure cutting Precambrian gneiss in areas of pegmatite bodies and Cretaceous to Tertiary rhyolite and diabase dykes. The deposit model for the property is the bonanza type low sulphidation epithermal silver- gold model. Examples include the Midas Mine of Franco Nevada in Nevada, the El Penon Mine of Meridian Minerals in Chile, and the former Baker and Cheni Mines in the Toodoggone District of British Columbia. Recorded exploration on the Hibernia Project dates back to the discovery of a silver rich vein at the Hibernian in 1866. Very little exploration has been conducted with approximately 675m of early underground development, minor undocumented drilling on the Silverado, and mapping and limited chip sampling of the Hibernia Vein in 1986. The Hibernia Project constitutes a property of merit due to the excellent potential for the delineation of a bonanza type epithermal silver-gold deposit based on the persistent structure, significant silver-gold values, limited previous work and recessive nature of the host rock. Assay data is limited from the property and has generally not been reported, particularly from the earlier exploration programs. Reports from the late 1800s indicate that ore assaying 100 to several hundred ounces per ton silver was shipped from the Hibernia Mine. Sulphide ore is reported at 60 feet in the Silverado shaft that assayed 470 oz/t Ag. Recent results from the property include 206.3 oz/ton Ag with 0.28 oz/ton Au obtained in 1986 and maximum values of 45.5 oz/ton Ag and 0.45 oz/ton Au obtained in 2007 from a shaft 400m northwest of the Hibernia decline. The gold values suggest a zonation to the north with increasing gold:silver ratios. Excellent potential exists for the discovery of additional ore shoots below the old stopes previously mined at the Hibernia and Silverado workings, 1.5 km to the south, and along the virtually untested 2.0 km strike extent. In addition mineralization on the Hibernia property remains open to the north and south along strike of the currently mapped exposures, where it is covered by overburden. A $500,000 Phase 1 program is recommended involving the repair of the access road, detailed mapping and chip sampling of the vein system, VLF-EM geophysics and conventional soil sampling to trace the vein system under overburden, trenching and 1,000m of diamond drilling to test the depth extent of the vein at the existing underground workings at the Hibernia Mine. Mapping and prospecting should be conducted over the entire property to locate additional veins. Contingent on and guided by the results from Phase 1 this should be followed by a $1,000,000 Phase 2 program, primarily consisting of 3,000m of follow up drilling over the entire HiberniaSilverado vein system.

Table of Contents Page

1.0 2.0 Executive Summary.............................................................................................................i Introduction and Terms of Reference .............................................................................. 1 2.1 Qualified Person and Participating Personnel........................................................... 1 2.2 Terms, Definitions and Units ..................................................................................... 1 2.3 Source Documents.................................................................................................... 1 2.4 Limitations, Restrictions and Assumptions................................................................ 2 2.5 Scope ........................................................................................................................ 2 Reliance on Other Experts. ............................................................................................... 2 Property Description and Location .................................................................................. 3 4.1 Location, Access and Local Resources .................................................................... 3 4.2 Physiography and Climate ........................................................................................ 5 4.3 Land Tenure .............................................................................................................. 5 History................................................................................................................................. 8 Geological Setting.............................................................................................................. 9 6.1 Regional Geology...................................................................................................... 9 6.2 Property Geology .................................................................................................... 10 Deposit Model .................................................................................................................. 10 Mineralization ................................................................................................................... 13 Exploration ....................................................................................................................... 15 9.1 Geochemistry .......................................................................................................... 15 9.2 Geophysics ............................................................................................................. 16 9.3 Trenching ................................................................................................................ 16 9.4 Drilling ..................................................................................................................... 16 9.5 Underground Development..................................................................................... 16 Data Verification............................................................................................................... 25 10.1 Sampling Method and Approach............................................................................ 26 10.2 Sample Preparation, Analysis and Security........................................................... 26 Adjacent Properties ......................................................................................................... 27 Mineral Processing and Metallurgical Testing.............................................................. 27 Mineral Resource and Mineral Reserve Estimates....................................................... 27 Interpretation and Conclusions...................................................................................... 27 Recommendations and Budget...................................................................................... 28 15.1 Phase 1 Recommendations................................................................................... 28 15.2 Phase 2 Recommendations................................................................................... 30 15.3 Budget.................................................................................................................... 30 References........................................................................................................................ 32 Certification, Date and Signature ................................................................................... 33 Appendices....................................................................................................................... 34

3.0 4.0

5.0 6.0 7.0 8.0 9.0

10.0 11.0 12.0 13.0 14.0 15.0

16.0 17.0 18.0

List of Illustrations Page

Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 1: 2: 3a: 3b: 4: 5: 6: 7: 8: 9: 10: 11: 12: Location Map ............................................................................................................ 3 Land Status Map....................................................................................................... 4 Patented Claim Map ................................................................................................. 5 Claim Map................................................................................................................. 7 Regional Geology Map ............................................................................................. 9 Property Geology Map............................................................................................ 11 Mineralization and Sample Locations ..................................................................... 14 150 Level, Hibernia Mine ........................................................................................ 19 290 Level South, Hibernia Mine.............................................................................. 20 290 Level North, Hibernia Mine .............................................................................. 21 Longitudinal Section, Hibernia Mine ....................................................................... 22 Location of Silverado Workings .............................................................................. 23 Silverado Underground ........................................................................................... 24

List of Tables
Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Silverado 1937 results ............................................................................................ 15 Underground specifications .................................................................................... 17 Hibernia Mine 1986 sample results......................................................................... 18 Comparison of sample results ................................................................................ 25 Significant GPS locations........................................................................................ 26 Proposed drillhole specifications............................................................................. 29

APPENDICES
Appendix I: Appendix II: Appendix III: Statement of Claims Sample Descriptions Geochemical Procedure and Results

2.0 2.1

INTRODUCTION AND TERMS OF REFERENCE Qualified Person and Participating Personnel

Ms. Jean M. Pautler, P.Geo. was commissioned by Coelton Ventures Limited of Courtenay, British Columbia to examine and evaluate the geology and mineralization on the Hibernia Project and to make recommendations for the next phase of exploration work in order to test the economic potential of the property. The report describes the property in accordance with the guidelines specified in National Instrument 43-101 and is based on historical information and an examination and evaluation of the property, consisting of the Hibernian patented mineral claim, and surrounding area by the author between February 8 to 10, 2007. Mr. Cor Coe of Coelton Ventures Limited, with significant past experience on the property, provided a one day orientation on the property on February 8, 2007. Additional ground was acquired in October, 2008 to cover the strike potential of the known showings and prospective adjacent ground that could host, often parallel, mineralized structures. 2.2 Terms, Definitions and Units

All costs contained in this report are denominated in Canadian dollars unless otherwise specified. Distances are primarily reported in metres (m) and kilometers (km) and in feet (ft) when reporting historical data. GPS refers to global positioning system. DDH refers to diamond drillhole. VLF-EM refers to a very low frequency electromagnetic type of geophysical survey. Ma refers to million years in geological time. The term ppm refers to parts per million, which is equivalent to grams per metric tonne (g/t) and ppb refers to parts per billion. The abbreviations oz/ton and oz/t refer to troy ounces per imperial short ton. The symbol % refers to weight percent unless otherwise stated. Elemental abbreviations used in this report include gold (Au), silver (Ag), copper (Cu), lead (Pb), zinc (Zn), iron (Fe), arsenic (As), antimony (Sb), sulphide (S) and oxide (O). Minerals found on the property include barite (barium sulphate), pyrite (iron sulphide), hematite (iron oxde), galena (lead sulphide), sphalerite (zinc sulphide), cerargyrite (silver chloride), tetrahedrite-tennantite (copper-iron sulphide with antimony/arsenic), linarite (lead-copper sulphate), malachite and azurite (hydrous copper carbonates), and chalcopyrite (copper sulphide).

2.3

Source Documents

Sources of information are detailed below and include available public domain information and personally acquired data.

2.4

Research of mineral titles at http://www.geocommunicator.gov/NILS-PARCEL2/ map.jsp?MAP=MC . Research of mining regulations at http://www.blm.gov/az/mines/requirements.htm and http://mines.az.gov/Info/mineralrights.html . Review of proprietary company data. Review of geological maps and reports completed by the Arizona Geological Survey or its predecessors and the United States Geological Survey. Review of published scientific papers on the geology of the region, epithermal goldsilver deposits, and mineral deposits. Work conducted on the property by the author between February 8 and 10, 2007. Limitations, Restrictions and Assumptions

The author has assumed that the previous documented work on the property is valid and has not encountered any information to discredit such work. Check samples collected in 2007 are consistent with the tenor of mineralization previously reported by several operators but do not constitute detailed quantitative check analyses. 2.5 Scope

This report describes the geology, previous exploration history and mineral potential of the Hibernia Project. The objective of the property examination was to make recommendations for the next phase of exploration work in order to test the economic potential of the property. Research included a review of available documented historical work that related to the immediate area of the property. Regional geological data and current exploration information have been reviewed to determine the geological setting of the mineralization and to obtain an indication of the level of industry activity in the area. The property was examined and evaluated by the author between February 8 and 10, 2007. An estimate of costs has been made based on current rates for drilling, geophysical surveys and professional fees in Arizona.

3.0

RELIANCE ON OTHER EXPERTS

The author has relied in part upon work and reports completed by others in the preparation of this report. Although the author personally collected samples to verify the tenor of mineralization exposed on the property, thorough checks to confirm the results of such prior work and reports has not been completed. The author has no reason to doubt the correctness of such work and reports. Unless otherwise stated the author has not independently confirmed the accuracy of the data. Further, while title documents and option agreements were reviewed for this study, this report does not constitute nor is it intended to represent a legal, or any other, opinion as to the validity of the title.

4.0 4.1

PROPERTY DESCRIPTION AND LOCATION Location, Access and Local Resources

The Hibernia Project is located in Township 18N, Range 14W, sections 19, 30 and 31 and Township 18N, Range 15W, sections 24, 25 and 36 on the Hibernia Peak 7.5 minute quadrangle. It lies 70 km by road southeast of Kingman, Arizona, in south central Mohave County, approximately 230 km southeast of Las Vegas, Nevada and 235 km north of Phoenix, Arizona (Figure 1). It lies on the east side of the easterly flowing Hibernia drainage, approximately 15 km west of United States Highway 93 (Figure 2). The property is centered at a latitude of 3456N and a longitude of 11348W.
A

UTAH

Las Vegas
y Hw

LOCATION MAP
HIBERNIA PROJECT, AZ
150 km
MEXICO

3 .9

Kingman I 40 . Hwy

Wikieup

HIBERNIA PROJECT
93 y. Hw

PHOENIX

FIGURE 1

Wikieup, the closest town, 27 km to the southeast, has a population of approximately 305 with main industries including ranching and tourism. Facilities include a grocery store, two service stations and several restaurants. Complete services are available in Kingman, approximately one hour via Highway 93, northwest of Wikieup (Figure 1). Kingman, with a population of approximately 30,000, surrounded by an unincorporated area with an additional 20,000, is an important regional trade, service and distribution centre for northwestern Arizona. Facilities include a hospital, restaurants, motels, gasoline and oil depots, auto and truck repair, heavy equipment and construction companies and a college. Kingman has scheduled air service and is serviced by the Santa Fe Railroad. The claims are accessible via U.S. Highway 93 south from Kingman to the Cane Springs Ranch at milepost 108. A two wheel drive road is followed westerly from the ranch for 16 km to a point 1.6 km from the minesite (Figure 2). A trail extends from the end of the road to the minesite (see Figure 3). A major powerline generally follows Highway 93 and comes to within 12 km of the property (Figure 2).
To g Kin n ma

ern Hib

ia

HIBERNIA PROJECT

Cane Springs Ranch

. Hwy 93
powe rline

LEGEND
BLM land Private land State land

up To Wikie

FIGURE 2

LAND STATUS MAP

HIBERNIA PROJECT, AZ
5 km

4.2

Physiography and Climate

The property is dissected by the easterly draining Hibernia Canyon along the eastern slope of the Hualapai Mountains within the Mohave Desert (Figures 1 and 2). The terrain is moderately steep with elevations ranging from 1720 feet to 5700 feet above sea level with slopes covered by sparse to thick chapparal (see Figures 2 and 3). The Hibernia minesite lies at an elevation of 4315 feet. Water is available from the flooded underground workings below the 290 level. Two springs are located in the Silverado area, 1.5 km to the south. Rock exposure is abundant, locally obscured by colluvium, talus and alluvial deposits. The climate is typical of the southwest desert of the United States with light precipitation (<10 inches annually), hot summers and mild winters with rare snowfall. Temperatures vary from below 0C to more than 40C. The exploration season is year round but best from November through April due to high summer temperatures and occasional flash floods. Mining can be conducted year round. 4.3 Land Tenure

The Hibernia Project comprises one patented mineral claim (the Hope or Hibernian lode claim), 111 lode claims (HIB 1-111) on federal Bureau of Land Management land, and one 269.37 acre state lease (mineral exploration permit), with application pending on an additional 320 acres. The Project covers a total area of approximately 2,882 acres (1166 ha) within the Maynard and Cedar Mining Districts, Arizona (Figures 3a and 3b). The original discovery was made in 1866 by Mr. Bill Hope, surveyed in 1873, and granted to Mr. William H. Raymond in 1876 as a patented claim (see Appendix I). The patented claim (Lot 27, Map 2 Book 204, Mohave County Assessors Office) is privately owned by Mr. Cor Coe of British Columbia (Figure 3a). A payment of less than $100.00US must be paid annually in taxes to maintain the claim.

Hibernian Mining Claim

Monument of granite Shaft ( 15 deep Po i
ori nt o gin f b al eg m o i nn nu ing me nt

Monument of quartz

FIGURE 3a
PATENTED CLAIM MAP
200 m
Monument of granite

f n to o in ny po Ca gh l e hi Eag om f F r ck o ro

situated in Cedar Valley Mining District Mohave County, Arizona claimed by W.H. Raymond surveyed 1873 containing 20.63 acres
Lo

tN

o.

27

Monument of granite

The immediate area around the Hibernian patented claim is on public lands administered by the United States Department of the Interior Bureau of Land Management (BLM) and has been staked as the HIB 1 to HIB 111 lode claims to cover the northwestern strike extension of the Hibernia Vein (since gold values may increase in this direction), the dip extent of the vein, the area between the Silverado and Hibernia Veins and the Silverado Vein and its southern strike extent (Figure 3b). The mineral claims are registered in the name of Coelton Ventures Ltd. and staked in accordance with BLM regulations which are documented at http://www.blm.gov/az/mines/requirements.htm. All claims are available for viewing at the Mohave County Land Registry Office, Kingman, Arizona with HIB 1 to 28 in Book 7010, pages 417 to 471 and HIB 29 to 111 in Book 7201, pages 226 to 390. A detailed statement of the BLM claims is shown in Appendix I and can be viewed at http://www.geocommunicator.gov/NILS-PARCEL2/map.jsp?MAP=MC On BLM land, claims can be staked and recorded for a fee of $170 per claim, which includes a $30 location fee, $125 maintenance fee, and $15 service charge. Annual maintenance fees of $125 per claim are due to BLM on or before September 1 each year. To locate a mining claim, one must be a United States citizen (or have declared an intent to become a citizen), or a corporation authorized to do business in the United States. All mining claims are initiated by erecting a conspicuous monument at the place of discovery and posting thereon a Notice of Location. Mining claims must be distinctly marked on the ground so that their boundaries can be readily traced. Prior to operation the BLM Field Office having jurisdiction over the land in which the claims are located must be contacted, in this case the Kingman Field Office at 2755 2755 Mission Boulevard Kingman, Arizona 86401-5308, phone: (928) 718-3700, fax: (928) 718-3761. The office can advise on what type of work is allowable and steps required for casual work, notice or plan of operations, and bond requirements. A preliminary geochemical sampling plan has been filed for the Hibernia Project with the state. BLM Lode Mining Claims are located upon deposits of mineral which are erected in or surrounded by hard rock, such as veins, fissures, lodes and disseminated ore bodies. By federal law, the lode claim cannot exceed 1500 feet along the length of the deposit, nor more than 300 feet to either side of the centre line of the deposit. Location of a lode mining claim cannot occur until a lode or vein is discovered on site. A 269 acre state lease (mineral exploration permit) has been obtained from the Arizona State Land Department (ASLD) covering the western half of Section 30, T18N, R14W (269.37 acres), permit number 08-112696, effective date March 26, 2008 to March 25, 2013. An expansion of the state lease to include all of section 30 (an additional 320 acres) has been applied for (Figure 3b). On state land a mineral exploration permit is necessary from the Arizona State Land Department (ASLD) to prospect and explore for minerals. Prior to exploration, a Plan of Operations must be approved. The permitting process for an exploration permit takes a minimum of sixty (60) days. If the application is approved, the initial rent is $2 per acre and if renewed, no additional rents are due for the second year. Rents are set at $1 per acre for years 3 thru 5. Work expenditure requirements are $10 per acre for years 1-2

and $20 per acre for years 3-5. If discovery of a valuable mineral deposit is made, the permittee must apply for a mineral lease before actual mining activities can begin. The patented claim already includes surface rights so that surface rights to support a mining operation in the Hibernia Mine area is sufficient. On the additional claims permitting for a mining operation can be applied for. To the authors knowledge, the Hibernia Project area is not subject to any environmental liability.
T18N, R15W
N3456

T18N, R14W

500 m

r ibe H

nia

on Cany

See Figure 3a

W11348

W11349

N3455

pending approval

acc

es s

ro ad

N3454

HIBERNIA PROJECT
FIGURE 3b: CLAIM MAP

5.0

HISTORY

The Hibernia Project encompasses the Hibernian and Silverado workings. The earliest exploration recorded on the Hibernia Project dates back to the late 1800s. At this time the Silverado lode or vein was considered part of the Hibernia or Hope lode and referred to as the Hibernia Extension. The Silverado lies 1.5 km south of the Hibernian and forms part of the same vein system. A summary of the work completed by various operators, as documented in an 1891 newspaper article, government notes and limited previous private company reports is tabulated below. The results of the programs are documented under their respective sub-sections under Section 9.0 Exploration and will be reported in the units that they were originally documented in to avoid any confusion with conversion factors. For reference, location of the workings are shown in Figures 4 to 10. 1866 Discovered by Mr. Bill Hope with reports of $50 to $1,000 per ton silver, widths greater than 30-40 feet and strike extent of at least 10 miles (Newspaper article, 1891). Original Glory Hole on Hibernian probably from this period.

1876-1920s Exploration by various open cuts, shafts, drifts, driving of decline and drifts at Hibernia Mine location by Raymond Bros. Production of 2500 to 3000 tons of ore from one lense assaying 100 to several hundred ounces per ton silver from Hibernia Mine (Ward, 1976). 1926-1927 Exploration by open cuts, two short adits, a shallow winze with reports of high grade silver ore from Hibernia Extension (Silverado) owned by T. Mac Smith. Reported widths of 4-15 feet and strike of 4,000 feet (Root, 1927 and Jacobson, 1926). Sinking of 60 foot vertical shaft on Hibernian No. 1 (possibly first shaft northwest of decline) with average assay of 47.0 oz/t Ag (Rogers, 1929). Report of existing 68 foot vertical shaft on Silverado (Jones, 1937). Access road, sinking of shaft (68 to 110 feet) and 470 foot drift on Silverado with limited production by Russell Bros. and Messrs. Hatch and Hollingsworth (Arizona Bureau of Mines, 1965-68). Sulphide ore was intersected at 60 feet that assayed 470 oz/t Ag (Ward, 1976). Small drill program planned on Silverado (Arizona Bureau of Mines, 1971). Evaluation of Silverado by Cedar Mineral Company, Phoenix, Arizona (Ward, 1976). Evaluation of Silverado - Hibernia vein system (Vanderall, 1984). Mapping and sampling of surface and underground workings on Hibernian claim (Huskinson, 1986).

1928-1929 1937 1965-68

1971 1976 1983 1985-86

6.0 6.1

GEOLOGICAL SETTING Regional Geology

The regional geology of Mohave County has been mapped by Wilson and Moore, 1959, which has been used as a base in Figure 4. The Hibernia Project is underlain by Precambrian granite gneiss which forms the backbone of the Hualapai Mountains, with minor roof pendants of diorite to amphibolite. The Precambrian gneiss is intruded by later Precambrian to Cambrian granitic bodies (o) and younger Cretaceous to Tertiary granitic rocks (y) and probable related dykes (Refer to Figure 4, below.)

KINGMAN

N
Hw y. 9 3

ni

te

o Granite

oG ra n ite

Gr a

114 W 00

o Granite

Quaternary Cover
35 N 00

y Granite

REGIONAL GEOLOGY
HIBERNIA MINE
20 km

ary tern Qua over C

HIBERNIA PROJECT
Dykes

n ia s br eis am n ec e G Pr it an Gr e nit ra oG

Wikieup

FIGURE 4

10

The younger granitic rocks host tungsten mineralization less than 10 km west-northwest of the Hibernian claim and porphyry molybdenumcopper mineralization approximately 10 km to the south. Epithermal veins are commonly associated with porphyry type occurrences. An historic high grade silver district occurs a further 5 km to the south. It appears that the epithermal veins in this region are related to the younger granites and associated dykes. There is potential for a possible associated Cretaceous to Tertiary coppermolybdenumgoldsilver porphyry intrusion source within the project area.

6.2

Property Geology

The project area is primarily underlain by Precambrian gneiss with a pronounced foliation of 030-050/steep southeast (Huskinson, 1986). The gneiss is cut by numerous elongate bodies of pegmatitic granite and smaller irregular bodies of amphibolite, diabase and rhyolite. The geology of the Hibernian mine area is shown on Figure 5 on the following page. It has been noted within the Hualapai Mountains that the silver bearing veins are commonly associated with pegmatite veins or dykes such as noted in the HiberniaSilverado area (Jones, 1937). In the same way the later Cretaceous to Tertiary plutons and dykes would have the same association, both occupying fissures and providing a competent host rock allowing for persistent veins.

7.0

DEPOSIT MODEL

The deposit model for the Hibernia Project is the low sulphidation epithermal gold model with gold-silver veins and stockwork zones. Examples include the Midas Mine of Franco Nevada in Nevada, the El Penon Mine of Meridian Minerals in Chile, and the former Baker and Cheni Mines in the Toodoggone District of British Columbia. Commodities are gold and silver with minor copper, lead and zinc. The following characteristics of the low sulphidation epithermal gold deposit model are primarily summarized from Panteleyev, (1996). Mineralization typically occurs as quartz veins, stockworks and breccias carrying gold, silver, electrum, argentite and pyrite with lesser and variable amounts of sphalerite, chalcopyrite, galena, rare tetrahedrite and sulphosalt minerals in high level (epizonal) to near surface environments. The ore commonly exhibits open space filling textures and is associated with volcanic-related hydrothermal to geothermal systems in volcanic island and continent margin magmatic arcs and continental volcanic fields with extensional structures. Host rocks include most types of volcanic rocks with calcalkaline andesitic compositions predominating. Some deposits occur in areas with bimodal volcanism and extensive subaerial ashflow deposits. A less common association is with alkalic intrusive rocks and shoshonitic volcanic rocks. Clastic and epiclastic sedimentary rocks host deposits in intra-volcanic basins and structural depressions.

11

V V
H18 187160, 60A

N
V
ull y

R15W R14W

R Gr Gn V Gr Gn D D D V R V R Gr Gn

187153, H8 187158, 59

29 0G

Gn

V proposed drillpad and holes

Gn Gn Gn

Gn

Gn V

D Gn

V
187154 187151, 52

T18N from Huskinson, 1986

Gn V P D V P

FIGURE 5
PROPERTY GEOLOGY
HIBERNIA MINE
100 m

V to Silverado, 1.5 km

Gangue minerals include quartz, amethyst, chalcedony, quartz pseudomorphs after calcite and calcite, with minor adularia, sericite, barite, fluorite and calciummangnesium-manganese-iron carbonate minerals such as rhodochrosite, hematite and chlorite.

12

Alteration generally consists of extensive silicification occurring as multiple generations of quartz and chalcedony, commonly accompanied by adularia and calcite. Pervasive silicification in vein envelopes is flanked by sericite-illite-kaolinite assemblages. Intermediate argillic alteration (kaolinite-illite-montmorillonite smectite) forms adjacent to some veins. Advanced argillic alteration (kaolinite-alunite) may form along the tops of mineralized zones. Propylitic alteration dominates at depth and peripherally. Weathered outcrops are often characterized by resistant quartz alunite 'ledges' and extensive flanking bleached, clay-altered zones with supergene alunite, jarosite and other limonite minerals. The deposits occur in high-level hydrothermal systems from depths of approximately 1 km to surficial hotspring settings. They are associated with regional-scale fracture systems related to grabens, resurgent calderas, flow-dome complexes and rarely, maar diatremes. Extensional structures in volcanic fields (normal faults, fault splays, ladder veins and cymoid loops, etc.) are common; locally graben or caldera-fill clastic rocks are present. High-level (subvolcanic) stocks and/or dikes and pebble breccia diatremes occur in some areas. Locally resurgent or domal structures are related to underlying intrusive bodies. Ore zones are typically localized in structures, but may occur in permeable lithologies. Upward-flaring ore zones centred on structurally controlled hydrothermal conduits are typical. Large (greater than 1m wide and hundreds of metres in strike length) to small veins and stockworks are common with lesser disseminations and replacements. Vein systems can be laterally extensive but ore shoots have relatively restricted vertical extent. High-grade ores are commonly found in dilational zones in faults at flexures, splays and in cymoid loops. Deposits are commonly zoned vertically over 250 to 350m from a base metal poor, gold-silver rich top to a relatively silver rich base metal zone and an underlying base metal rich zone grading at depth into a sparse base metal, pyritic zone. From surface to depth, metal zones contain gold-silver-arsenic-antimony-mercury, gold-silver-lead-zinccopper, silver-lead-zinc. In alkalic hostrocks tellurides, roscoelite (vanadium mica) and fluorite may be abundant, with lesser molybdenite. Ages of mineralization are variable although Tertiary deposits are most abundant. The age is closely related to the associated volcanic rocks but invariably slightly younger in age (0.5 to 1 Ma, more or less). Typical grade and tonnage figures for the median low sulphidation epithermal gold deposits, based on worldwide mines and U.S.A. models, include 0.77 million tonnes of 7.5 g/t Au, 110 g/t Ag and minor copper, zinc and lead for 41 Comstock-type 'bonanza' deposits and 0.3 million tonnes of 1.3 g/t Au, 38 g/t Ag and >0.3% Cu from 20 Sadotype gold-copper deposits. Associated deposit types include high sulphidation epithermal gold-silver, hotspring gold-silver, porphyry coppermolybdenumgold and related polymetallic veins and placer gold. Porphyry molybdenumcopper mineralization is associated with a Cretaceous to Tertiary intrusion approximately 10 km to the south of the Hibernia Project.

13

Economic low sulphidation epithermal deposits are usually mined by a combination of open pit mining and underground operations with conventional cyanide milling processing, with moderate daily tonnage production. They typically contain high-grade sections, often with significant silver content, high silver to gold ratios, clean metallurgy, and good recoveries.

8.0

MINERALIZATION

The Hibernia Project covers a 350/40-60E trending low sulphidation epithermal vein, ranging from approximately <1m to approximately 5m wide, which has been discontinuously traced over a strike length of 2.0 km. The vein fills a fissure cutting Precambrian gneiss. The structure has been traced from a hill south of the Silverado, through the Silverado and Hibernia Mines to the Hibernia Canyon area (Figure 6). The Silverado Mine was previously known as the Hibernia Extension (Arizona Department Dept of Mineral Resources, 1940). North of the 290 creek gully (at the 290 level portal), the vein bends more westerly at 335/50-70E. The vein consists of massive white to grey quartz with barite, galena, tetrahedritetenantite, malachite, azurite, chalcopyrite, pyrite, hematite, cerargyrite and linarite. The mineralization is generally restricted to the hanging wall of the vein and commonly associated with barite. The country rock in the hanging wall of the vein at the Hibernia Mine, which can be seen at the Glory Hole, is strongly argillically altered for approximately two feet. Iron and lesser manganese oxides occur within the hanging wall alteration halo of the vein. Brecciation has been noted within the hanging wall and footwall portions of the vein with mineralization only found within the hanging wall breccia and primarily the hanging wall of the vein. Ore shoots appear to have developed at bends indicative of dilational zones within the controlling Hibernian structure. One of these lies just north of the Hibernia Mine (Huskinson, 1986) and the other, just north of the Silverado shaft (Vanderall, 1984). The Hibernia and Silverado may represent extensions of the same vein, possibly faulted, or may in fact be two related but separate veins, part of the same vein system. At the Silverado, the vein trends 355, dipping 80W through to 60E.

14

24
HIB-55 HIB-1

Canyon
HIB-23

19
HIB-93 HIB-26 HIB-98 HIB-103

er n Hib
HIB-57

ia

cabin

(55 " 187160, 60A (

HIB-16

Hib

ern

ia

HIB-59

HIB-5

HIB-60 HIB-61

25

HIB-6

HIB-7

LEGEND
Rock cairn Claim post Vein Sample Adit

HIB-10

(Shaft

HIB-11

FIGURE 6 Mineralization and Sample Locations

500 m

187155

7 7 7 7
70

"

HIB-3

187153 290 adit 187158, 59

HIB-104

HIB-99

187151, 52 ( Hibernia decline 187154

HIB-19

"
HIB-20

40-60

"

30

T18N R15W

T18N R14W

187157

l trai

"
70

7 7 7 7

187156

State lease

60-90 " ( Silverado shaft

Silverado adit
60

HIB-28

HIB-21

31 HIB-95 HIB-100

15

9.0

EXPLORATION

Recorded exploration on the Hibernia Project dates back to the discovery of the Hibernian or Hope lode around 1866. It was sold to the Raymond Brothers in 1873 for $25,000US in gold (Newspaper article, 1891). Exploration has involved approximately 450m of early underground development on the Hibernia (late 1800s into the 1920s) and 225m on the Silverado (1920s and 1960s), minor drilling on the Silverado possibly in 1971, and mapping and limited chip sampling of the Hibernia Mine area in 1986. The previous work is summarized below under the respective sections and illustrated on Figures 5 and 7 to 12 on pages 11 and 19 to 24. 9.1 Geochemistry

Early reports from the late 1800s indicate that ore assaying 100 to several hundred ounces per ton silver was shipped from the Hibernia Mine to Wales returning $125,000US (Ward, 1976). Production of 2500 to 3000 tons of from one lense was estimated by Huskinson (1986) from this report and he noted that 1700 tons were mined from the 290 level with indication of stopes extending below this level. There is no documentation of any soil geochemical or systematic rock chip sampling across the property. The most thorough sampling was undertaken in 1985-86 during a property evaluation by Huskinson. All samples related to the underground workings on the Hibernia and have been documented under Section 9.5 Underground Development. Four surface samples collected from the Silverado workings in 1937 returned the following results and are plotted on Figure 11 on page 23 (Jones, 1937). TABLE 1: Silverado 1937 results
Sample No. No. 1 No. 2 No. 3 No. 4 Distance from shaft 425 N 275 S 283 S 275 S Au oz/ton trace 0.01 0.01 trace Ag Width Comments oz/ton (ft) 1.12 Clay gouge 152.15 2.0 Ore at top of stope 8.85 3.0 Ore 8 S of No. 2 2.78 6.0 Hanging wall side of No. 2

Assay certificates dated June 28, 1978 from the Colorado Assaying Company, Denver, Colorado for samples, marked HG-1 to -4, show values ranging from 6.40 to 33.30 oz/ton Ag and trace to 0.04 oz/ton Au. Work was performed by Melvin Jones presumably on the Silverado but sample locations are unknown (Jones, 1978). Assay certificates dated October 29, 1982 from Chemex Labs Ltd, North Vancouver, British Columbia for samples marked Hibernia #1, #4 and #5 show values ranging from 1.55 to 44.27 oz/ton Ag and 0.020 to 0.048 oz/ton Au. Sample locations are unknown.

16

Samples from Silverado in 1983 returned 2.8 oz/ton Ag over 20 feet at the open cut, 5.6 oz/ton Ag over 19 feet further north, 7.3 oz/ton Ag over 13 feet at the vein rollover, and 0.36 oz/ton Ag over 11 feet from the midpoint between the Silverado and Hibernia. Results from the vein at the Hibernia decline returned 0.23 oz/ton Ag over 15 feet, but the hanging wall was not sampled (Vanderall, 1984). 9.2 Geophysics

No geophysical surveys have been reported on the Hibernia property. 9.3 Trenching

No trenching has been documented on the Hibernia property, although old pits were excavated in the late 1800s to early 1900s and later trenching (possibly 1960s) is evident just north of the Silverado headframe. No sample or assay data has been located for the pits or trenches. The Silverado trenches were not sampled by the author at this time due to a primary focus by the client on the Hibernia workings. 9.4 Drilling

No drilling has been conducted on the Hibernia Mine property. Limited drilling appears to have been conducted on the Silverado to the south, but drillhole specifications and results could not be located. A small drill program was planned in 1971 as mentioned in notes by the Arizona Bureau of Mines (1971). 9.5 Underground Development

The underground workings on the Hibernia patented claim were not investigated by the author but have been documented by Huskinson (1986) and are summarized here. The workings consist of a 45 degree decline, located just west of the Glory Hole, that extends at least 107m (350 feet) but is flooded below 327 feet. Headings extend out from the decline at 45m (150 feet) and 88m (290 feet) below surface. The northern extent of the 290 level extends out to a small draw that drains into Hibernia Canyon. Consequently, ventilation is good. The 150 level extends approximately 50m (160 feet) and the 290 level, 230m (760 feet). The 290 portal is caved but was accessible in 1986. Stopes have only been developed south of the decline. A manway raise connects the 290 and 150 levels through the largest stope. The Glory Hole was originally excavated in the late 1800s within the high grade silver bearing hanging wall of the Hibernia Vein. Underground work continued into the 1920s as evidenced by a 1920s vintage Chevrolet truck chassis beside the decline on the 290 level. This was used to sink the decline below the 290 level (Huskinson, 1986).

17

From Huskinsons mapping, exposure of the vein and altered hanging wall is limited on the 150 level (Figure 7) and minor displacement of the vein along a cross-fault was noted. The vein is better exposed on the 290 level, south of the decline (Figure 8). Two stopes were mined with approximately 400 tons from the first and 1300 tons from the second. The 290 level, north of the decline (Figure 9) only follows the vein for approximately 35m probably due to a minor offset along a cross-fault near the portal. A longitudinal section of the workings is shown in Figure 10. Other workings in the vicinity include two inaccessible shafts, 400 and 465m northwest of the Hibernia decline on the northern extension of the Hibernia Vein (Figures 5 and 6), and the Silverado workings, 1.5 km to the south (Figure 6). One of the northern shafts may correspond to the 60 foot vertical shaft on Hibernian No. 1 reported by Rogers in 1929, which returned an average assay of 47.0 oz/t Ag (Rogers, 1929). In 1986 a grab from the first dump, 400m northwest of the decline, returned 206.3 oz/ton Ag with 0.28 oz/ton Au from sample H18 (Huskinson, 1986). The locations and known specifications of the workings on the Hibernia Project are tabulated below. TABLE 2: Underground specifications UTM Nad 83, Zone 12 Name
Decline 150 Level 290 Portal Raise First shaft Second shaft Headframe

Elev. (m)
1310 1244 1293 1260 1500

Az. ()
060 160 165 -

Length (ft)
350 160 760 150 60? 125? 110

Location Comments
Hibernia Hibernia Hibernia Hibernia Hibernia N. Hibernia far N. Silverado

Northing
3867861 at 3868050 3868177 3868245 3866389

Easting
243482 decline 243489 243310 243275 243449

The Hibernia workings were mapped and a number of chip samples collected in 1986, which are documented on the following page and shown in Figures 5 and 7 to 10 (Huskinson, 1986). The highest silver values obtained were 5.3 oz/ton Ag over 2.5 feet from sample H13 in the raise, 4.4 oz/ton Ag over 0.5 feet from sample H10 from the 290 south drift and 3.8 oz/ton Ag over 2.5 feet from sample H14 from the 150 drift. All samples returned only trace gold. The best values appear to be associated with the hanging wall of the vein. High grade from near the decline portal returned 14.44 oz/ton Ag with 0.02 oz/ton Au from sample H7 and a grab from the dump across from the 290 portal returned similar values of 11.4 oz/ton Ag with 0.06 oz/ton Au from sample H8. A grab sample from the Hibernia stockpile near the decline in 1983 returned 9.0 oz/ton Ag (Vanderall, 1984). At the Silverado workings, approximately 1.5 km south of the Hibernia, possibly on the same vein and definitely along the same vein system as the Hibernia, approximately 225m of underground development is documented, which include an old shaft, new shaft and drift, and an adit (Ward, 1976 and Jones, 1978), but detailed assays from the workings could not be located. The location of the workings is shown on Figure 11 on

18

page 23 (Jones, 1937) and a sketch of the underground workings is shown in Figure 12 on page 24 (Vanderall, 1984?). TABLE 3: Hibernia Mine 1986 sample results
Sample Distance Au No. (ft) from N. oz/ton 150 level (along vein) H15 7 trace H14 35 trace H16 100 trace H17 135 trace 290 level north drift H9 355 trace H5 390 trace H6 390 trace H4 450 trace 290 level south drift H10 20 trace H1 145 trace H2 145 trace H3 145 trace raise H11 trace H12 trace H13 trace dumps H7 0.02 H8 0.06 Ag oz/ton 3.6 4.4 trace 0.10 trace trace trace trace 3.8 trace 0.14 0.12 trace 0.5 5.3 14.44 11.4 Width (ft) 1.0 0.5 1.5 1.5 1.0 2.3 4.5 2.0 1.0 0.18 0.14 0.08 1.5 2.0 2.5 grab grab Main dump Portal dump Comments

Breccia Hanging wall Breccia Above hanging wall Cross vein breccia Breccia Hanging wall of H5 Breccia Hanging wall Footwall of H2 Breccia Hanging wall of H2

19

H15

H14

line Dec

H16

from Huskinson, 1986

FIGURE 7

150 LEVEL
HIBERNIA MINE
H17

10 m

20

H10

li Dec

ne

from Huskinson, 1986

FIGURE 8
H1, 2, 3

290 LEVEL, SOUTH

HIBERNIA MINE
10 m

21

H9 H5, 6

from Huskinson, 1986

FIGURE 9

290 LEVEL, N.
HIBERNIA MINE
30 m

H4

De

e clin

22

30 m

from Huskinson, 1986

LEGEND
chip sample

RESULTS
2/-/5.6 Width/Au/Ag /oz/ton

FIGURE 10
LONGITUDINAL SECTION
HIBERNIA MINE

30 m

grab sample

23

HIBERNIA PROJECT Mojave Co., Arizona

LA PLATA No. 1

sh Wa

N
Quartz Vein

Wreck of lumber house No. 1 (sample) Rock house Spring Dump New ( shaft LA OJA Tunnel Old shaft ( No. 2 No. 4 No. 3
sh Wa

FIGURE 11
LOCATION OF SILVERADO WORKINGS
after Jones, 1937
R o ad
80 "

LA PLATA

200 m

24

SECTION VIEW 20 by 20 by 10 room with 15 raise

PORTAL S. OF SHAFT SHAFT

40

20

75 89 150 110

260 PLAN VIEW

SHAFT

N
100 LEVEL DRIFT

DRIFT S. OF SHAFT

All drifts and shafts are 6 by 8

FIGURE 12
L VE LE 00 1

SILVERADO UNDERGROUND SKETCH

after Vanderall, 1984?

25

10.0

DATA VERIFICATION

Several samples were collected to confirm the validity of previous sample collection and assay results. Sample descriptions with select results are tabulated in Appendix II and complete assay results are listed in Appendix III. Sample locations are shown in Figures 5 and 6. The presence of mineralization and accuracy of previous surface mapping was confirmed. The 290 portal was caved, so the underground workings were not examined. The decline remains open. There is a positive correlation between the results of comparison samples as shown in Table 4. TABLE 4: Comparison of grab sample results
1986 2007 Sample No. Au, Ag Sample No. Au, Ag 290 dump H-8 0.06, 11.4 187153 0.014, 31.5 Decline dump 1983-12 NA, 8.99 H-7 0.02, 14.44 187154 0.007, 9.45 First shaft 1929-Avg. NA, 47.0 H-18 0.28, 206.3 187160 0.05, 45.5 First shaft 1929-Avg. NA, 47.0 H-18 0.28, 206.3 187160A 0.45, 3.15 Au and Ag results in oz/ton; NA = not analyzed Location Other Year-no. Au, Ag

The first shaft may correspond to the 60 foot vertical shaft on Hibernian No. 1 reported by Rogers in 1929, which returned an average assay of 47.0 oz/t Ag (Rogers, 1929). In 1986 a grab from the first dump, 400m northwest of the decline, returned 206.3 oz/ton Ag with 0.28 oz/ton Au from sample H18 (Huskinson, 1986). Current samples confirmed the high grade silver/gold values with maximum values of 45.5 oz/ton Ag and 0.45 oz/ton Au. The silver value corresponds closely to the average obtained by Rogers and gold was not analyzed in 1929, but both the 1986 and current sampling indicate significant gold values from this shaft dump. The gold values obtained from the Hibernian dumps were slightly lower than previously obtained by Huskinson, 1986, but the average silver value is similar (13 oz/ton Ag in 1986 compared to 20 oz/ton Ag in 2007). The silver values from the decline dump from 1983 and 2007 are almost identical with 8.99 oz/ton Ag in 1983 and 9.45 oz/ton Ag in 2007. The higher silver values are associated with higher lead, copper, antimony and arsenic zinc. The highest gold value is associated with high zinc, but also contains silver and anomalous lead and arsenic. Most of the remaining samples collected from the property consisted of vein material and did not contain significant values confirming that the mineralization is restricted to the hanging wall alteration zone and breccia. A sample of argillic altered footwall (Sample 187158) further confirms this conclusion, containing no significant anomalous results. Further confirmation is evident in the results of sampling the Hibernia Vein at the decline portal. Two samples were collected from the vein (Samples 187151, 52) with the hanging wall side of the vein only showing anomalous values (14.5 g/t Ag and 0.31 g/t Au). The altered hanging wall could not be accessed due to the instability of the Glory Hole area. Overall the hanging wall is more recessive due to alteration and trenching is necessary to better expose it.

26

The locations of old workings and significant claim (rock cairn and post) locations were recorded by GPS, Nad 83, Zone 12 projection and tabulated below. Table 5: Significant GPS locations
Name H01 H02 H03 H04 H05 HCP HIBERNIA HPIT HVEIN0 HVEIN1 HVEIN2 HVEIN3 HVEIN4 HVEIN5 SAMINE SATRAILE SAVEIN0 SAVEIN1 SAVEIN2 SAVEIN3 Easting 243443 243489 243718 243325 243360 243310 243482 243318 243994 243564 243586 243314 243310 243299 243449 243392 243499 243494 243424 243394 Northing 3866462 3868050 3867284 3868026 3868112 3868012 3867861 3868171 3865920 3866089 3867109 3868040 3868177 3868229 3866389 3866657 3866202 3866238 3866552 3866716 Elev.(m) 1498 1244 1435 1293 1314 1289 1310 1296 1512 1514 1453 1299 1293 1274 1500 1465 1498 1505 1497 1469 Description trail to Hibernia starts 290 portal rock cairn, rock cairn, white milky quartz vein 150/70E Homestead Mining Claim Location Post decline 2 pits, dump, possible shaft minor vein float S. of Silverado vein subcrop, breccia, stockwork at rock cairn ;140/70NE vein 150/70E vein 155/55E vein 150/70E Silverado headframe Silverado trail end vein in open cut on Silverado;147/60E foln 020/60E upper cut on Silverado; 015/70W; 1m wide; Amph on E. stockwork breccia vein N of Silverado milky white vein

10.1.1 Sampling Method And Approach Chip samples were collected from vein exposures on the property for verification purposes. Grab samples were collected from mine dumps and in areas of vein subcrop and float. In areas of vein boulders, chips were collected across the boulders. 10.1.2 Sample Preparation And Security Current rock samples collected by the author were placed in clear plastic sample bags, numbered and secured in the field. Samples were personally delivered to the United States Postal Service in Kingman, Arizona and sent directly to EcoTech Laboratory of Kamloops, British Columbia for preparation and analysis. Eco Tech is an ISO 9001 accredited facility, registration number CDN 52172-07. Standard quality control procedures, involving duplicate analyses and the analysis of standards, was completed by the lab. Laboratory sample preparation and analysis procedures are outlined in Appendix III. A sampling protocol should be implemented, involving the routine and regular insertion of blanks and standards sent to the primary laboratory, and duplicates of selected mineralized intervals sent to a second independent laboratory in the proposed exploration programs on the property.

27

11.0

ADJACENT PROPERTIES

There are no properties adjacent to the Hibernia property although there is a group of 38 Ken claims the boundary of which lies 350m northwest of the northwestern corner (HIB29) of the Hibernia Project on Section 14 of Township 18N, Range 15W. The claims are owned by Ken Mead of Murray, Utah, staked on September 19, 2007 and recorded on December 17, 2007. No information could be found regarding the claims.

12.0

MINERAL PROCESSING AND METALLURGICAL TESTING

No metallurgical work has been performed on the mineralization but the sulphide ores of this district are reported to be very easily treated by floatation, usually giving a rich concentrate and high ratio of concentration with an exceptionally clean tailing, and reports suggest that 95-98% extraction of silver is not unusual (Ward, 1976).

13.0

RESOURCE AND MINERAL RESERVE ESTIMATES

There has not been sufficient work on the Hibernia property to undertake a resource calculation or to delineate the limits of mineralization in any direction.

14.0

INTERPRETATION AND CONCLUSIONS

The Hibernia Project constitutes a property of merit due to the excellent potential for the delineation of a bonanza type epithermal silver-gold deposit based on the persistent structure, significant silver-gold values, limited previous work and recessive nature of the host rock. The Hibernia Vein, a 335-355/45E-80W trending low sulphidation epithermal vein, has been discontinuously traced over a strike length of 2.0 km. The vein fills a fissure zone cutting Precambrian basement rocks in areas of pegmatite bodies and Cretaceous to Tertiary rhyolite and diabase dykes. Assay data is limited from the property and has generally not been reported, particularly from the earlier exploration programs. Reports from the late 1800s indicate that ore assaying 100 to several hundred ounces per ton silver was shipped from the Hibernia Mine (Ward, 1976). Sulphide ore is reported at 60 feet in the Silverado shaft that assayed 470 oz/t Ag (Arizona Bureau of Mines, 1965-68). Significant silver values were obtained in 1986 from limited chip sampling of the Hibernia Mine underground workings, including 5.3 oz/ton Ag over 2.5 feet (Huskinson, 1986). Average values from the Hibernia dumps from four samples collected in 1986 and 2007 are 16.7 oz/t Ag and 0.025 oz/ton Au. The best values appear to be associated with the argillically altered hanging wall of the vein, which is recessive in

28

nature and has seen limited sampling. Surface samples from the Silverado in 1983 included 7.3 oz/ton Ag over 13 feet (Vanderall, 1983). Values of 206.3 oz/ton Ag with 0.28 oz/ton Au (Huskinson, 1986) and maximum values of 45.5 oz/ton Ag and 0.45 oz/ton Au in 2007 were obtained from a shaft 400m northwest of the Hibernia decline. This may correspond to a 60 foot vertical shaft on Hibernian No. 1 reported by Rogers in 1929, which returned an average assay of 47.0 oz/t Ag with no gold analyzed (Rogers, 1929). This suggests a zonation to the north with increasing gold:silver ratios. In addition gold was not generally assayed for in previous exploration on the property. The Hibernia and Silverado were under separate ownership with the only significant work on the Hibernia completed between the late 1800s to the 1920s, which concentrated on high grading the readily identifiable silver. Most of the work on the Silverado Mine area was completed in the 1960s to 1970s, with minor work in the 1920s, and was limited in scope. Excellent potential exists for the discovery of additional ore shoots below the old stopes previously mined at the Hibernia and Silverado and along the virtually untested 2.0 km strike extent. In addition mineralization on the Hibernia property remains open to the north and south along strike of the currently mapped exposures, where it is covered by overburden. There is also potential for the discovery of additional veins. Additional ground was acquired following the property evaluation in February, 2007 to cover the strike extent of the known showings and possible additional, often parallel, structures. The best indicators for the delineation of silver bearing ore shoots, as originally noted by Huskinson (1986), appear to be evidence of dilational zones (indicated by change in strike of vein), intense hanging wall alteration, where exposed, and the presence of barite, galena and copper carbonates, in decreasing order of importance. In less explored or prospected areas the distinct waxy green presence of cerargyrite or horn silver is a major indication of high grade silver. Less is known about the indicators for gold mineralization but there appears to be a relationship to the presence of sphalerite.

15.0

RECOMMENDATIONS AND BUDGET

There is excellent potential on the Hibernia Project to delineate a bonanza type epithermal silver-gold deposit based on the persistent structure, significant silver-gold values, limited previous work and recessive nature of the host rock. Consequently, a two phase exploration program has been recommended. 15.1 Phase 1 Recommendations

The Phase 1 exploration program will include a detailed examination consisting of mapping and chip sampling of the known extensions of the vein and detailed prospecting with concurrent mapping and sampling of the projected strike extensions of the vein

29

system. Mapping and prospecting should be conducted over the entire property to locate additional veins. VLF-EM geophysics should be useful in tracing the vein system under overburden since it should pick up the controlling structure and the associated clay alteration. Test lines should first be completed over the Hibernia Glory Hole area and Silverado workings to determine its usefulness. The VLF-EM could then be run along lines perpendicular to the strike extensions of the vein to trace the vein and any parallel veins along strike. Conventional soil sampling would also be useful in tracing the vein, especially since the system is associated with a distinct suite of base and trace elements, which could be useful in outlining a zonation from silver to gold rich zones. The silver rich mineralization is associated with lead, copper, antimony, arsenic zinc values and the gold with zinc, silver, minor lead and arsenic. Trenching of the hanging wall portions of the exposed vein would be useful to more consistently expose and sample the mineralized hanging wall of the vein. A small excavator would be optimal for this with hand/blast methods reserved for more remote and inaccessible locations. Trenching will also be necessary to follow up soil and geophysical anomalies. Diamond drilling of the depth extent of the existing underground workings at the Hibernia should commence to test the sulphide zone. Three diamond drillholes, fanned from one pad and plotted on Figure 5, that can be accessed by the construction of a short trail, have been proposed to test the depth extent of the Hibernia vein (Huskinson, 1986). The holes constitute a valid test of the continuity of the vein at a 160m depth along the vein. Another hole would test the depth extent of the vein beneath the decline at a 210m depth along the vein. TABLE 6: Proposed drillhole specifications
DDH No. A B C D TOTAL: UTM Nad 83, Northing 3868015 3868015 3868015 3868015 Zone 12 Easting 243555 243555 243555 243555 Elev. (m) 1300 1300 1300 1300 Az. () 270 255 240 255 Dip () -50 -50 -50 -70 Depth (m) 250 230 250 275 1000

Standard quality control procedures, involving duplicate analyses and the analysis of standards should be implemented during this initial drill phase. This involves the routine and regular insertion of blanks and standards sent to the primary laboratory, and duplicates of selected mineralized intervals sent to a second independent laboratory. The repair of the access road to the Hibernia Mine area, a distance of 1.5 km, will be necessary prior to the drill program to facilitate access. It would be advantageous to upgrade the access at the onset of the recommended exploration programs to reduce access/time costs.

30

An attempt should be made to acquire the data from the possible 1971 diamond drill program (see History section) and any additional data on the Silverado to be utilized in the Phase 2 program. 15.2 Phase 2 Recommendations

Further drilling is contingent on the results of Phase 1 and will target the strike extensions of the Hibernia Vein outwards from the Hibernia Mine area and the down dip extent of the Silverado workings and its continuation along strike. Standard quality control procedures involving duplicate analyses and the analysis of standards initiated in Phase 1 should be continued in Phase 2. 15.3 Budget

Based on the above recommendations, the following $500,000 Phase 1 and $1,000,000 Phase 2 exploration budgets are proposed: Phase 1: Land acquisition and title search ground VLF-EM geophysical survey (12 line km @ $500/ line km, including mob/demob) soil geochemistry (500 soils, @ $25/ea, freight) geochemistry: (400 rocks, @ $25/ea, freight) access road repair, trenching, drill trail: (250 hrs, mob/demob) 1000 metres diamond drilling @ $250/metre (all inclusive) wages (120 man days geology, labour, supervision, cook) transportation (trucks, fuel) transportation (mob/demob) accommodation/camp groceries and meals field supplies communication (sat phone, radios, charges) reclamation miscellaneous preparation, report and drafting TOTAL: Phase 2: geochemistry: (200 rocks, @ $25/ea, freight) 3000 metres diamond drilling @ $230/metre (all inclusive) trail building: (100 hrs, mob/demob) wages (200 man days labour, supervision, cook)

$ 6,000 7,500 12,500 10,000 50,000 250,000 80,000 5,000 5,000 10,000 4,000 4,000 2,000 5,000 10,000 39,000 $500,000

5,000 690,000 20,000 130,000

31

transportation (trucks, fuel) transportation (mob/demob) accommodation/camp groceries and meals field supplies communication (sat phone, radios, charges) reclamation miscellaneous preparation, report and drafting

10,000 10,000 20,000 9,000 7,000 4,000 10,000 20,000 65,000 $1,000,000 $1,500,000

TOTAL: GRAND TOTAL: (Phases 1 to 2)

Respectfully submitted, Jean Pautler, P.Geo. July 20, 2008

32

16.0

REFERENCES

Arizona Bureau of Mines (1965-74): Various notes from Mohave County Office. Bureau of Land Management. (1999): Surface Management Status. United States Department of the Interior. Cooke, D.R. and Simmons, S.F. (2000): Characteristics and genesis of epithermal gold deposits, pp 221-244 in Gold in 2000, Reviews in Economic Geology Vol. 13, Society of Economic Geologists (SEG). Huskinson, E. Jr. (1986): Geology and economic potential of the Hibernian Mine, Maynard/Cedar Mining District, Mohave County, Arizona. Report for Mr. Corwin Coe. Jacobson, R. C., (1926): Letter to Mr. T. Mac Smith from Mohave Assaying and Engineering Office, Kingman, Arizona regarding Silverado. Jones, M. H., (1978): Preliminary geological evaluation, Silverado Mine, Cedar Mining District, Mohave County Hualapai Mountains. Attachments only. Jones, S. S., (1937): Letter to Dr. D. S. Gaskins from S.S. Jones, Consulting Mining Engineer, Kingman, Arizona regarding Silverado. Newspaper Article. (1891): The Hibernia Mine. Dated July 4, 1891. Panteleyev, A. (1996): Epithermal Au-Ag: low sulphidation, in Selected British Columbia Mineral Deposit Profiles, Volume 2 - Metallic Deposits, Lefebure, D.V. and Hy, T, Editors, British Columbia Ministry of Employment and Investment, Open File 1996-13, pages 4144. Rogers, M.S., (1929) Excerpts from report by Matthew S. Rogers Civil and Mining Engineer, 225 Mills Building, San Francisco, California. Root, L. V., (1927): Letter to Mr. T. Mac Smith from Colorado River Gold Mines Inc., Kingman, Arizona regarding Silverado. Smith, T. Mac, (1940) Owners Mine Report (on the Silverado Mine). Arizona Department Dept of Mineral Resources File MS-41. Vanderall, W. (1984): Geological investigation Silverado-Hibernia vein system, Mohave County, Arizona. Report for Conar Resources by Silas C. Brown and Associates Geological Consultants. Incomplete, missing pages 2-4. Ward, C.P., (1976): Parcel # 186. Report for Cedar Mineral Company, Phoenix, Arizona. Wilson, E.D. and Moore, R.T., (1959): Geological map of Mohave County. Arizona Bureau of Mines, University of Arizona, Tucson, Arizona. Wooley, M. W., (1929): Letter to Mr. K. G. Pulliam from U.S. Smelting, Refining and Mining Co., Midvale Smelter and Mills.

33

17.0

CERTIFICATE, DATE AND SIGNATURE

1) I, Jean Marie Pautler of 103-108 Elliott Street, Whitehorse, Yukon Territory am selfemployed as a consultant geologist, authored and am responsible for this report untitled Evaluation report on the Hibernia Project, dated July 20, 2008. 2) I am a graduate of Laurentian University, Sudbury, Ontario with an Honours B.Sc. degree in geology (May, 1980) with more than 25 years mineral exploration experience in the North American Cordillera including the acquisition and delineation of the Tsacha epithermal gold deposit, British Columbia for Teck Exploration Ltd. I have evaluated epithermal projects throughout the North American Cordillera including the Avino Mine area in Durango, Mexico. 3) I am a registered member of the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC Registration Number 19804). 4) I have visited the subject mining property of this report and am a Qualified Person in the context of and have read National Instrument 43-101 and the Companion Policy to NI 43-101. This report was prepared in compliance with NI 43-101. 5) This report is based upon a review of pertinent data and work on the Hibernia property between February 8 and 10, 2007. 6) As stated in this report, in my professional opinion the property is of potential merit and further exploration work is justified. 7) To the best of my knowledge this report contains all scientific and technical information required to be disclosed so as not to be misleading. 8) I am entirely independent of Coelton Ventures Ltd. I do not have any agreement, arrangement or understanding with Coelton Ventures Ltd and any affiliated company to be or become an insider, associate or employee. I do not own securities in Coelton Ventures Ltd. and my professional relationship with Coelton Ventures Ltd. is at arms length as an independent consultant, and I have no expectation that the relationship will change. 9) I have no prior involvement with the Hibernia Project which is the subject of this report. 10) I consent to the use of this report by Coelton Ventures Ltd. for such assessment and/or regulatory and financing purposes the company deems necessary, but if any part shall be taken as an excerpt, it shall be done only with my approval.

Dated at Carcross, Yukon Territory this 20th day of July, 2008, Signed and Sealed Jean Pautler Jean Pautler, P.Geo. (APEGBC Reg. No. 19804) JP Exploration Services Inc. #103-108 Elliott St. Whitehorse, Yukon Y1A 6C4
The signed and sealed copy of this Certificate, Date and Signature page has been delivered to Coelton Ventures Ltd.

Appendix I: Statement of Claims

AMC #
387490 387491 387492 387493 387494 387495 387496 387497 387498 387499 387500 387501 387502 387503 387504 387505 387506 387507 387508 387509 387510 387511 387512 387513 387514 387515 387516 387517 pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending

Claim Name
HIB -1 HIB -2 HIB -3 HIB -4 HIB -5 HIB -6 HIB -7 HIB -8 HIB -9 HIB -10 HIB -11 HIB -12 HIB -13 HIB -14 HIB -15 HIB -16 HIB -17 HIB -18 HIB -19 HIB -20 HIB -21 HIB -22 HIB -23 HIB -24 HIB -25 HIB -26 HIB -27 HIB -28 HIB -29 HIB -30 HIB -31 HIB -32 HIB -33 HIB -34 HIB -35 HIB -36 HIB -37 HIB -38 HIB -39 HIB -40 HIB -41 HIB -42 HIB -43 HIB -44 HIB -45 HIB -46 HIB -47 HIB -48 HIB -49 HIB -50 HIB -51 HIB -52 HIB -53 HIB -54 HIB -55 HIB -56

Staking Date 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 10/22/2007 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008

Record Date
11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 11/1/2007 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008

Locator
Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna

Owner
Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd.

AMC #
pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending pending

Claim Name
HIB -57 HIB -58 HIB -59 HIB -60 HIB -61 HIB -62 HIB -63 HIB -64 HIB -65 HIB -66 HIB -67 HIB -68 HIB -69 HIB -70 HIB -71 HIB -72 HIB -73 HIB -74 HIB -75 HIB -76 HIB -77 HIB -78 HIB -79 HIB -80 HIB -81 HIB -82 HIB -83 HIB -84 HIB -85 HIB -86 HIB -87 HIB -88 HIB -89 HIB -90 HIB -91 HIB -92 HIB -93 HIB -94 HIB -95 HIB -96 HIB -97 HIB -98 HIB -99 HIB -100 HIB -101 HIB -102 HIB -103 HIB -104 HIB -105 HIB -106 HIB -107 HIB -108 HIB -109 HIB -110 HIB -111

Staking Date
04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008 04/21/2008

Record Date
5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008 5/13/2008

Locator
Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna Kevin Hanna

Owner
Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd. Coelton Ventures Ltd.

Appendix I: Statement of Claims (continued) State Lease

Appendix I: Statement of Claims (continued)

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Accession/Serial #: AZAZAA 001758

BLM Serial #: AZAZAA 001758

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Names Patentee: WILLIAM H RAYMOND

Survey ARIZONA State: 20.63 Acres: Geographic Name: HOPE LODE Metes/Bounds: No

Title Transfer 4/29/1876 Issue Date: Assigned For Automation Land Office: No Cancelled: U.S. Reservations: No Mineral Reservations: No July 26, 1866: Mineral Patent-Lode (14 Stat. 251) Authority:

Document Numbers 1764 Document Nr.: Accession/Serial Nr.: AZAZAA 001758 AZAZAA 001758 BLM Serial Nr.:

APPENDIX II Sample Descriptions and Results

APPENDIX III Geochemical Procedure and Results

Analytical Method for 2007 Samples

GEOCHEMICAL GOLD ANALYSIS Samples are catalogued and dried. Soils are prepared by sieving through an 80 mesh screen to obtain a minus 80 mesh fraction. Samples unable to produce adequate minus 80 mesh material are screened at a coarser fraction. These samples are flagged with the relevant mesh. Rock samples are 2 stage crushed to minus 10 mesh and a 250 gram subsample is pulverized on a ring mill pulverizer to -140 mesh. The subsample is rolled, homogenized and bagged in a pre-numbered bag. The sample is weighed to 10/15/30 grams and fused along with proper fluxing materials. The bead is digested in aqua regia and analyzed on an atomic absorption instrument. Over-range values for rocks are re-analyzed using gold assay methods. Appropriate reference materials accompany the samples through the process allowing for quality control assessment. Results are entered and printed along with quality control data (repeats and standards). The data is faxed and/or mailed to the client.

GOLD ASSAY Samples are sorted and dried (if necessary). The samples are crushed through a jaw crusher and cone or rolls crusher to -10 mesh. The sample is split through a Jones riffle until a -250 gram subsample is achieved. The subsample is pulverized in a ring & puck pulverizer to 95% - 140 mesh. The sample is rolled to homogenize. A 1/2 or 1.0 A.T. sample size is fire assayed using appropriate fluxes. The resultant dore bead is parted and then digested with aqua regia and then analyzed on a Perkin Elmer AA instrument. Appropriate standards and repeat sample (Quality Control components) accompany the samples on the data sheet.

MULTI ELEMENT ICP ANALYSIS Samples are catalogued and dried. Soil samples are screened to obtain a -80 mesh sample. Samples unable to produce adequate -80 mesh material are screened at a coarser fraction. These samples are flagged with the relevant mesh. Rock samples are 2 stage crushed to minus 10 mesh and pulverized on a ring mill pulverizer to minus 140 mesh, rolled and homogenized. A 0.5 gram sample is digested with aqua regia which contains beryllium which acts as an internal standard. The sample is analyzed on a Jarrell Ash ICP unit. Results are collated by computer and are printed along with accompanying quality control data (repeats and standards). Results are printed on a laser printer and are faxed and/or mailed to the client.

BASE METAL ASSAYS (Ag, Cu, Pb, Zn) Samples are catalogued and dried. Rock samples are 2 stage crushed followed by pulverizing a 250 gram subsample. The subsample is rolled and homogenized and bagged in a prenumbered bag. A suitable sample weight is digested with aqua regia. The sample is allowed to cool, bulked up to a suitable volume and analyzed by an atomic absorption instrument, to .01 % detection limit. Appropriate certified reference materials accompany the samples through the process providing accurate quality control. Result data is entered along with standards and repeat values and are faxed and/or mailed to the client.

K:Methods/methicp K:methods/methauas

Project: Hibernia Submitted by: Jean Pautler Shipment #: 1

ET #. 3 4 10 12

Tag # E187153 E187154 E187160 Sample A

Au (g/t)

Au (oz/t)

1.61 15.3

0.047 0.446

Ag (g/t) 1080 324 1560 108

Ag (oz/t) 31.50 9.45 45.49 3.15

Cu (%) 1.21

Pb (%) 4.30 2.30 3.20

QC DATA: Repeat: 3 10 12 Standard: S125 Pb106 Cu120

E187153 E187160 Sample A

1030 1.69 15.2 0.049 0.443

30.04

1.18

4.30

1.80

0.052 58.3 34.0 1.70 0.99 0.63 1.53 0.53

JJ/kk XLS/07

ECO TECH LABORATORY LTD. Jutta Jealouse B.C. Certified Assayer