Assessment Report on

Prospecting and Soil Sampling

Mary March Brook Property Mineral Licence 015529M

Central Newfoundland NTS 12A/16

Submitted by

Matilda (Tilly) Vatcher

March, 2010

Required Expenditure: $6000.00 Actual Expenditure: $8,136.25

Excess Credits: $2,136.25

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Table of Contents 1.0 Property Description, Location and Access ............................................................. 1 2.0 Previous Work by Other Parties ............................................................................... 2 3.0 Regional Geology ........................................................................................................ 4 4.0 2009 Exploration Work .............................................................................................. 4 5.0 Interpretations and Conclusions ............................................................................... 5 6.0 References.................................................................................................................... 7

List of Figures

Figure 1 Location Map .................................................................................................... 1 Figure 2 Licence Location Map....................................................................................... 2 Figure 3 Sample Location Map ...................................................................................... 6

List of Tables

List of Appendices Appendix I Sample Data ................................................................................................. 8 Appendix II Assay Certificates ....................................................................................... 9 Appendix III Licence Expenditures ............................................................................. 10

1.0 Property Description, Location and Access Licence 015529M is located near the northeast tip of Red Indian Lake approximately 6kms north-northeast of Buchans Junction in central Newfoundland, NTS 12A/16 (Figure 1). The licence consists of 30 claims covering 750 ha and was issued on November 06, 2008. The licence is centered on UTM coordinates 542250E, 5415550N (NAD27, Zone 21). The Buchans highway (Route 370) and old railway bed run within 2.5 kms south of the property, as does several high-tension power lines. Mary March Brook cuts through the southwest part of the property (Figure 2). . Access to the property is via the Buchans Highway (Route 370) which exits the Trans Canada Highway at Badger. A series of logging road exiting the Buchans highway approximately 3 kms from Buchans Junction provides good access to most of the property. The topography of the area is slightly undulating with elevations of 220 to 250 metres. The dominant vegetation is spruce and birch with patches of alders.

Figure 1 Location Map

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Figure 2 Licence Location Map

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2.0 Previous Work The Mary March and Nancy April deposits are hosted within Buchans Group rocks which forms part of the Dunnage Zone of central Newfoundland. The Buchans Group is a complex assemblage of Lower Ordovician, 473 +3/-2 Ma, (Dunning et al., 1987) subaqueous mafic and felsic volcanic and volcaniclastic rocks and related proximal clastic sediments which are correlated regionally with the Robert's Arm Group of Notre Dame Bay (Pickett, 1995). Buchans, which host the past producing high grade Buchans mine, produced 16.2 Million tonnes averaging 14.50% Zn, 7.56% Pb, 1.33% Cu, 126 g/t Ag and 1.37 g/t Au over its 56 year mine life from 1928 to 1984 (Thurlow, 1990). Previous exploration in the area includes prospecting by Abitibi-Price Inc. along the shoreline of Red Indian Lake in the late 1970's which resulted in the discovery of a large number of strongly altered and pyritized boulders. Abitibi-Price also carried out an active exploration program in the area including the first modern airborne geophysical survey and substantial magnetic, VLF-EM, Max-Min and gravity surveys and some drilling on the A.N.D Charter Lease (Pickett, 1995) BP Resources Canada Limited followed this up by conducting extensive soil geochemical and other surveys and some drilling in the area. In 1992, Noranda flew a new airborne survey and conducted limited prospecting, mapping, gravity and trenching and drilled one hole. This series of exploration work resulted in the partial delineation of the Mary March Alteration Zone, and the discovery of a number of relatively minor Zn-Pb-Cu showings (Pickett, 1995). In 1994, Avalon Mines completed a Transient Electromagnetic Survey over the Buchans Junction Property (Woolham, 1994). During 1998, Phelps Dodge Corporation of Canada (PDCC) reached an option agreement with Noranda Exploration to earn a 50% interest in the property and conducted a digital data compilation, geological mapping and initiated a drill program. Hole MM-294-01 was drilled on Licence 4117 as a stratigraphic hole (Pickett, 1995) In the spring and summer of 1999, drilling by PDCC on the A.N.D. Charter Lease resulted in the discovery of the Mary March and Nancy April massive sulphide deposits (Thurlow, 2000). The mineralization is hosted by intensely altered (sericite-chlorite-pyrite) dacitic volcanics of the Buchans Group. Unpublished results of sampling and trace element (REE) analyses in 1990 by the Newfoundland Department of Mines & Energy confirm that the volcanic rocks on the Mary March property are lithogeochemically identical to those which host the Buchans mine. Values from the two massive sulphide zones include:

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Mary March: 10.3% Zn, 1.62% Pb, 0.66% Cu, 118.1g/t Ag and 4.11g/t Au across 9.23 metres; 16.8% Zn, 5.44% Pb, 0.18% Cu, 660.0g/t Ag and 12.2g/t Au across 0.91 metres Nancy April: 3.02% Zn, 1.08% Pb, 0.13% Cu and 172.4g/t Ag across 20.6 metres During 1999, Billiton Exploration Canada Ltd. flew an airborne GEOTEM survey over their ground which also covered the Mary March property. On April 3, 2003 Candor Ventures Corp. (CVC) signed a Letter of Intent with PDCC on the Mary March property whereby CVCcould earn a 50% interest in the property by delivering 100,000 common shares of CVC to PDCC and spending about $755,000 over the next 2.5 years (Pickett, 1995). 3.0 Regional Geology The Mary March property, located approximately 22 kilometres east of the former Buchans Mine, occurs within rocks of the Buchans Group. The Buchans Group forms part of the Dunnage Zone of central Newfoundland and consists of a deformed volcanosedimentary terrane created durung the opening and subsequent closure of the lower Paleozoic Iapetus Ocean. It is a complex assemblage of Lower Ordovician subaqueous mafic and felsic volcanic and volcaniclastic rocks and related proximal clastic sediments which are correlated regionally with the Robert's Arm Group of Notre Dame Bay. The U-Pb zircon age on Buchans Group rhyolite is 473 +3/-2 Ma (Dunning et al., 1987). In the Mary March area, the location of the base of the Buchans Group is not exposed and the nature of the underlying stratigraphy is not clear though a significant fault is implied. The structural top of the Buchans Group is defined by the Hungry Mountain Thrust which brings polydeformed plutonic rocks of the Hungry Mountain Complex upon the Buchans Group (Thurlow, 1981). The mylonitized thrust zone has been subsequently intruded by dykes of the early Silurian Topsails Igneous Terrane (Pickett, 1995). The south-southeasterly directed thrusting event is the major deformational event in the Buchans Group during which the rocks were subjected to low greenschist facies metamorphic conditions. Carboniferous red sandstone and conglomerate unconformably overlie the Buchans Group in the Red Indian Lake basin, and are the youngest rocks preserved in the area. Carboniferous molasse covers part of the Mary March alteration zone (Pickett, 1995). 4.0 2009 Exploration Work

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Fieldwork during the fall of 2009 consisted of general prospecting, rock sampling and soil sampling and was designed to identify potential surface geochemical signatures related to massive sulphide mineralization. A total of 10 days was spent traversing and prospecting on and around licence 015529M and in the Mary March Brook/Red Indian Lake area. Accommodations were provided by a local cabin owner from Buchans. A total of 5 rock samples and 17 B-horizon soils were collected within Licence 015529M (Figure 3). Sample UTMs and descriptions are included in Appendix I and copies of assay certificates are included in Appendix II. 5.0 Interpretations and Conclusions While the prospecting program did locate a number of strongly hematized, iron-carbonate and sericite altered mafic volcanics and Rhyolite outcrops/float, none of the samples that were analyzed returned significant gold or base metal values. However, further work is warranted as there is still an unexplained geophysical anomaly located on the property that should be followed up. Work should also include an expanded soil survey and/or possibly an MMI survey. _”Tilly Vatcher”_____ Matilda (Tilly) Vatcher

Figure 3 Sample Location Map

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6.0 References Dunning, G.R., Kean, B.F., Thurlow, J.G., and Swinden, H.S., 1987. Geochronology of the Buchans, Roberts Arm, and Victoria Lake groups and Mansfield Cove Complex, Newfoundland; Can. J. Earth Sci. vol. 24, pp. 1175-1184. Pickett, J. W., 1995. Report on Line Cutting and Transient Electromagnetic Surveying, Buchans Junction Property, Licence 4325, Central Newfoundland, N.T.S. 12A/16, Unpublished Assessment Report for Avalon Mines Limited. Thurlow, J.G., 1990. Geology of the Buchans Orebodies - a 1990 Summary, in Swinden, H.S., Evans, D.T.W and Kean, B.F., eds., Metallogenic framework of base and precious metal deposits, central and western Newfoundland. 8th IAGOD Symposium Field Trip Guidebook, pp 84-92. Thurlow, J.G., 2000. Report on 1999 mineral exploration on Claim Licences 4117 and 4673M, Fee Simple Vol. 2, Fol. 29, Reid Lot 247 and parts of the A.N.D. Charter, Buchans Junction area, central Newfoundland. 13 pages. Williams, H., Colman-Sadd, S.P. and Swinden, H.S. 1988: Tectonic-stratigraphic subdivisions of central Newfoundland. In Current Research, Part B. Geological Survey of Canada, Paper 88-1B, Pages 91-98.

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Appendix I Sample Data Sample# Sample Type Easting Northing Datum MM1001 Soil 541749 5416119 NAD27 MM1002 Soil 541766 5416109 NAD27 MM1003 Soil 541779 5416089 NAD27 MM1004 Soil 541802 5416071 NAD27 MM1005 Soil 541815 5416057 NAD27 MM1006 Soil 541839 5416039 NAD27 MM1007 Soil 541863 5416021 NAD27 MM1008 Soil 541888 5416002 NAD27 MM1009 Soil 541922 5415975 NAD27 MM1010 Soil 541943 5415953 NAD27 MM1011 Soil 541961 5415933 NAD27 MM1012 Soil 541959 5416088 NAD27 MM1013 Soil 541932 5416107 NAD27 MM1014 Soil 541903 5416124 NAD27 MM1015 Soil 541878 5416141 NAD27 MM1016 Soil 541857 5416168 NAD27 MM1017 Soil 541843 5416193 NAD27 MM09F001 Float 542908 5414464 NAD27 MM09G002 Rock 541476 5415572 NAD27 MM09G003 Rock 541490 5415481 NAD27 MM09G004 Rock 542592 5416431 NAD27 MM09G005 Rock 541764 5414138 NAD27

Appendix II Assay Certificates

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Appendix III Licence Expenditures

Licence Expenditure Summary

Licence #: 015529M # Claims: 30

Wages & Salaries $3,475.00 Field Expenses Accommodations $75 per person $750.00Meals/Groceries $25 per person $250.00Assays $30 Sample $550.00Consulting Fees $0.00Trucks $60 day $600.00ATV’s $50 day $500.00Diamond Drilling $0.00Gasoline $600.00Miscellaneous Rentals $150.00Exploration Supplies (Airphotos, topo maps, shipping, etc) $200.00 Subtotal: $7,075.00 Administration and Overhead (15%) $1,061.25 Total: $8,136.25 Expenditures Required: $6,000.00 Actual Expenditures: $8,136.25 Excess credits: $2,136.25

Personnel Tilly Vatcher Prospector C.B.S., NL Spencer Vatcher Geologist C.B.S., NL