BLACK BEAR

NORTHWESTERN ONTARIO, CANADA

Property Description, Location and Access

The 100% owned Black Bear Property consists of  19 claims (159 units) or 2,544 hectares and is situated approximately 20 km northeast of the community of Red Lake and is easily accessible via an all weather road which crosses the western part of the Property.

The property is subject to a 2% NSR royalty of which 1% can be purchased by the Company for $1.0 million.

The Black Bear property covers a portion of the northeast extension of the East Bay Deformation Zone (EBDZ) in the historic Red Lake gold camp. The EBDZ is a major NNE-striking structure which hosts a number of known gold occurrences including 3 past producers, of which the Cochenour-Willams mine with 1.24 million ounces of historical gold production is the most significant.

The Black Bear property was acquired on the basis of its strategic location on the projected extension of the EBDZ between the mineralized zones on the East Bay property which has a resource estimate totalling 1.4 million tonnes grading 8.0g/t gold and the Sidace Lake property, both of which are being explored by Premier Gold/Goldcorp. There had been little previous work on the Black Bear property and there were no known gold showings, which is likely due to the extensive overburden.

The Property was optioned to Goldcorp in late 2003 and it spent $1.4 million over two years on Black Bear under an option agreement which Goldcorp terminated in 2006. A detailed airborne magnetic geophysical survey was flown over the entire Property in an effort to map bedrock features that might reflect gold-bearing structures and several structures were defined by the survey. A 3,000 metre diamond drilling commenced in April 2004 to obtain basic geological information and provide an initial evaluation of the gold potential of the property.

Goldcorp's drilling produced two new gold occurrences and several prospective geological environments. The first gold occurrence was discovered on the western part of the property, where one core sample yielded a grade of 14.9 g/t Au over 0.30 m. The second gold occurrence was discovered in a shear zone on the north-central part of the property, approximately 4.5 kilometres NE of the first gold occurrence. This shear zone, characterized by strongly-foliated and chloritized volcanic rocks, contained quartz stringers with 10-20% pyrite assaying 1.73 g/t Au over 1.22 metres. Three holes were drilled to follow up on this intersection. All three holes intersected anomalous gold values with the best additional assay being a value of 1.8 g/t over 0.40 m.