SECOND YEAR ASSESSMENT REPORT ON ROCK SAMPLING AND PROSPECTING ON THE WHITE BAY PROJECT, MINERAL LICENSES

017547M, 017549M & 017550M, WESTERN NEWFOUNDLAND, NTS SHEETS 12H/14 & 15.

By Jacqueline O’ Driscoll, M.Sc., P.Geo,

Bob Patey, B.Sc, P.Geo & Rod Churchill, M.Sc., P.Geo

Altius Resources Inc. Suite 202 – Kenmount Business Centre

66 Kenmount Road, St. John’s, NL, A1B 3V7

February 2011

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DISCLAIMER This report is intended for the Newfoundland and Labrador provincial government in order to satisfy the regulations regarding reporting of mineral exploration activities. This report is not intended for public dissemination and is not compliant with National Instrument 43-101. Any publication of this report or sections thereof requires written consent by Altius Resources Inc. (“ARI”). Any third party use is at that party’s sole risk. The quality of information, conclusions, and estimates contained herein is consistent with the level of effort by the authors based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. The results and opinions expressed in this report are based on field observations by ARI’s personnel and the geological and technical data sited in this report. While the authors have carefully reviewed all of the information available, and believe the information to be reliable, ARI has not conducted an in-depth independent investigation to verify its accuracy and completeness.

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SUMMARY The 2010 exploration program on the White Bay Project consisted of helicopter supported prospecting and rock sampling. Ground traversing is challenging due to heavily treed and deeply incised valleys and thick low shrub in upland areas. A total of 58 rock samples were collected during the program. Although gold values were typically low, a new copper-gold showing was discovered on the Coney claims with values up to 2116 ppm Cu and 41 ppb Au. As well, a float sample collected on the Long Steady claims returned a gold value of 775 ppb Au. Prospecting failed to locate historical gold occurrences within the Coney claims, however this is attributed to high water levels during the field program. The new copper-gold showing appears similar to the description given for several of those historic gold occurrences. It also lies along a northeast lineament which appears to be related to a structure along the contact zone of the granite and gneiss units and in association with a Long Range mafic dyke. It is recommended that future work be focused on prospecting along this potential structure. Additional work in the Longsteady area should concentrate on finding the source of the gold bearing float.

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TABLE OF CONTENTS

DISCLAIMER .............................................................................................................................. I

SUMMARY ............................................................................................................................... II

TABLE OF CONTENTS .............................................................................................................. III

1.0 INTRODUCTION ................................................................................................................. 1 1.1 Location & Access ................................................................................................................................................. 1 1.2 Physiography & Vegetation .................................................................................................................................. 3 1.3 Property Summary & Claims Status ...................................................................................................................... 4 1.4 Previous Work ....................................................................................................................................................... 5

2.0 GEOLOGICAL SETTING ........................................................................................................ 8 2.1 Tectonic Setting .................................................................................................................................................... 8 2.2 Regional Geological Setting ................................................................................................................................ 10 2.3 Local Geology ...................................................................................................................................................... 11 2.4 Structure & Metamorphism ................................................................................................................................ 11

2.4.1 Faulting & Folding ......................................................................................................................................... 11 2.4.2 Metamorphic Grade ...................................................................................................................................... 12

2.5 Metallogeny ........................................................................................................................................................ 12 2.5.1 Local Metallogeny ......................................................................................................................................... 12 2.5.2 Property Mineral Occurrences ...................................................................................................................... 13

3.0 WORK PROGRAMS CONDUCTED ...................................................................................... 14 3.1 Listing of Personnel ............................................................................................................................................. 15 3.2 Listing of Contractors & Suppliers....................................................................................................................... 16 3.3 Statement of Expenditures ................................................................................................................................. 17 3.4 Prospecting & Mapping ...................................................................................................................................... 18

3.4.1 Coney Licenses .............................................................................................................................................. 18 3.4.2 Longsteady License ....................................................................................................................................... 23

4.0 CONCLUSIONS & RECOMMENDATIONS ........................................................................... 24

5.0 BIBLIOGRAPHY & DATA REFERENCE LIST .......................................................................... 24

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LIST OF TABLES

Table 1. Listing of Mineral License Details ..................................................................................................................... 4 Table 2: Listing of Personnel ........................................................................................................................................ 15 Table 3: Contractors and Suppliers .............................................................................................................................. 16 Table 4: Statement of Expenditures ............................................................................................................................ 17

LIST OF FIGURES

Figure 1. Property Location Map ................................................................................................................................... 2 Figure 2. Claim Location Map ........................................................................................................................................ 5 Figure 3. Tectonostratigraphic Setting .......................................................................................................................... 9

LIST OF PLATES

Plate 1. Typical terrain of the Coney licenses, White Bay Property. ............................................................................. 3 Plate 2. Longsteady license, White Bay Property .......................................................................................................... 4 Plate 2. K-feldspar Granite. .......................................................................................................................................... 19 Plate 3. Gneiss unit with feldspar augen. .................................................................................................................... 19 Plate 4. Mineralized and altered quartz vein in granite near Rattling Brook West. .................................................... 20 Plate 5. Mineralized quartz vein in diabase dyke. ....................................................................................................... 21 Plate 6. Mineralized and altered quartz with diabase host from the Bear Hill Showing. ............................................ 22 Plate 7. Surface expression of the diabase dyke from the Bear Hill Showing. View to the northeast. ....................... 22 Plate 8. Mineralized and altered quartz float. ............................................................................................................. 23 Plate 9. Quartz carbonate schist. ................................................................................................................................. 24

LIST OF APPENDICES

APPENDIX 1. Rock Sample Descriptions ........................................................................................................................ 1 APPENDIX 2. Analytical Certificates ............................................................................................................................... 2

APPENDED MAPS Map 1 Coney Rock Sample Location Map 1/25,000 Map 2 Longsteady Rock Sample Location Map 1/10,000

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1.0 INTRODUCTION This report summarizes the second year of exploration on three mineral licenses in the White Bay area which consisted of a one week helicopter supported prospecting and rock sampling program.

1.1 Location & Access The White Bay Project is located in the highlands of Newfoundland’s Great Northern Peninsula near the community of Jackson’s Arm (Figure 1). The licenses are situated north of Route 1 (the Trans-Canada Highway) and along and adjacent to Route 420 (the Hampden Highway). Due to the rugged terrain, most of the project area is only accessible by helicopter. The Town of Deer Lake is located approximately 85 kilometres to the southeast, and is the site of an international airport. Deer Lake and the neighboring community of Pasadena both provide services from two different helicopter companies. The Hampton Highway transects the southernmost license 17547M (referred to within this report as the Longsteady license). Power lines, which run parallel to the highway, transect this license on the eastern valley slope and provide access to some of the license by foot. Parts of the claim block consist of steep cliffs making access difficult. The nearest road (locally within 500 metres) to the northern portion of the project area or licenses 17549M and 17550M (referred to collectively within this report as the Coney licenses) is the seasonal Cat Arm Hydroelectric Facility Road. However, the steep and thickly forested slopes in this area prevent this road from being a viable access route. Thus, these licenses are only accessible via helicopter. A helicopter landing site is available at the River Sea Motel in the nearby town of Pollard’s Point from which the property can be accessed within 5 minutes.

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Figure 1. Property Location Map

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1.2 Physiography & Vegetation The Coney licenses are located in rugged terrain with elevations ranging from 370 to 500 metres (Plate 1). The area contains numerous cliffs and steep slopes which are very difficult to navigate. Thick spruce forest dominates the hillsides while flatter ground is largely comprised of bog and marsh. The exposed hilltops are typically upland barrens with low shrubs and brush which are difficult to traverse. Large glacial erratics also occur throughout the area. Deeply incised valleys are often small and thickly forested, and prevent helicopter access.

Plate 1. Typical terrain of the Coney licenses, White Bay Property.

The Longsteady license is located in Doucer's Valley. The floor of the valley has elevations ranging from 60 to 250 metres and is bisected by Route 420. Steep slopes of 45° are common but generally range from 20° to 30°. A flat area which forms a several kilometre long “step” on the eastern side of the valley is the route of the transmission lines to the Cat Arm Hydroelectric Facility. The valley floor and slopes/walls are heavily forested with coniferous trees such as spruce and fir. The hilltops on either side reach elevations up to 300 metres and have low shrubs typical of upland barrens growth.

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Plate 2. Longsteady license, White Bay Property

1.3 Property Summary & Claims Status The property is comprised of three mineral licenses 17547M, 17549M and 17550M totaling 149 claims in 3725 hectares. The following table provides specific information regarding the mineral licenses and Figure 2 shows the location of the claims.

Table 1. Listing of Mineral License Details License Number

Number of Claims/Hectares

Issuance Date Year

Anniversary Date

Work Due Date

Work Required

017547M 12/300 2009/03/26 2 2011/03/26 2014/03/26 $4,025.32

017549M 126/3150 2009/03/26 2 2011/03/26 2011/03/26 $12,621.18

017550M 11/275 2009/03/26 2 2011/03/26 2016/03/26 $3,304.12

Totals 149/3725 $19,950.62

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Figure 2. Claim Location Map

1.4 Previous Work A brief overview of regional previous exploration (in chronological order) in the general White Bay area is provided below. This summary is a result of the 2009 compilation of assessment and mineral occurrence file records, most of which are archived with the Newfoundland and Labrador Department of Natural Resources. ● 1903: The Browning Mine, located approximately 16 kilometres south of the property, produced 149 ounces of gold. The mine only operated for one year and the deposit is hosted by sedimentary rocks of the Silurian Sops Arm Group.

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● Prospecting in the 1930’s and 1940’s resulted in the discovery of several occurrences of gold mineralization within 5 kilometres of the Browning Mine. ● 1977 - 1978: Road construction for the Cat Arm Hydroelectric Project greatly improved access to the area. Rumors of gold mineralization discovered in geotechnical drilling begin to circulate. ● 1980: The Newfoundland Geological Survey released the first detailed (1:25,000) geological map of the Jackson’s Arm area (Smythe and Schillereff, 1981). ● 1981: Butler and Davenport conducted a lake sediment survey in the area as part of the National Geochemical Reconnaissance (NGR) Survey. ● 1982: A prospector working for Labrador Mining and Exploration Ltd. discovered anomalous gold in a rock cut along Cat Arm Road with values in the 1-2g/t range (Bruneau, 1984). This is the first indication of gold mineralization west of the Doucer’s Valley Fault System.

● 1986 - 1990: BP Resources Canada Ltd. - Selco Division conducted an extensive exploration program focusing on the Doucer’s Valley Fault Zone (DVFZ). Prospecting, geochemical and geophysical surveys were completed over a thirty kilometre section of the DVFZ. Subsequent drilling programs intersected gold in the Apsy Zone, the Road Zone, Rattling Brook and Incinerator Trail areas within the Apsy Granite (Holmes & McKenzie, 1987; Holmes et al., 1988). ● 1986 - 1990: Varna Resources Inc. conducted exploration on the Apsy Granite. This project consisted of prospecting, lake sediment and soil sampling (Dearin and Hepp, 1987; French, 1988). ● 1986 - 1988: Esso Minerals Canada Ltd. conducted a program of soil, till and rock geochemistry and trenching in the DVFZ south of Jackson’s Arm (O’Sullivan, 1986, 1988; Gashinski, 1988).

● 1988: BP Resources Canada Ltd. conducted a program of lake sediment sampling and airborne geophysics (magnetics, VLF-EM) in the Pittman’s Pond area. This area is located west of the Doucer’s Valley Fault and covers the southwestern part of the Apsy Granite and its contacts with the Long Range Gneiss and the Devil’s Room Granite. ● 1990: Carrick Gold Resources Ltd. conducted a drilling program targeting Listwaenite-style gold mineralization at three sites along the DVFZ between Sops Arm and Jackson’s Arm (Day, 1989; O’ Sullivan, 1991).

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● 1991: J.V. Owen of the Geological Survey of Canada released a memoir detailing several years of regional mapping in the Long Range Inlier. ● 1995 - 1997: Golden Base Resources Ltd. conducted a program of soil sampling, geophysics (VLF-EM) and prospecting in the Pittman’s Pond area. ● 1997 - 2000: Rainbow Resources Ltd. re-sampled Carrick’s core and excavated trenches along the DVFZ (O’Sullivan, 1998; O’ Sullivan and Barbour, 2000). ● 2001 - 2010: Kermode Resources Ltd. is currently exploring a group of claims that span approximately 17 kilometres along the DVFZ. A number of targets were identified over a 15 kilometre strike length. In January 2010, Kermode released a NI43-101 compliant resource estimate for the Apsy, Road and Beaver Dam Zones in the Jackson’s Arm area (226 000 oz Au @ 0.76g/t, 241 000 oz Au @ 0.76g/t and 28 000 oz Au @ 0.85g/t, respectively). ● 2003 - 2004: Candente Resource Corporation conducted a reconnaissance exploration program along a 6 kilometre long portion of the DVFZ as well as a detailed soil survey over the Apsy Granite west of Jackson’s Arm Second Pond (van Egmond and Cox, 2003, 2004). A brief overview of previous exploration (in chronological order) in the area of the Coney licenses is provided below. ● 1977 - 1978: Chevron Canada Ltd. collected nine lake sediment samples as part of a regional uranium exploration program. The samples were only analyzed for U, Cu, Zn, Ni and Mo (Laforme and Wober, 1980). ● 1982 - 1985: Labrador Mining and Exploration Ltd. explored the area with prospecting and rock sampling, ground geophysical surveys and gridded orientation soil surveys (Bruneau, 1984; French, 1985). Prospecting discovered five mineral occurrences now recorded in the Mineral Occurrence Database (MODS). ● 1986 - 1990: Varna Resources/Gold Inc. completed an exploration program that included prospecting and mapping on the Coney claims (Dearin and Hepp, 1987), a lake sediment sampling program (n=98) (French, 1989), and a large soil survey (French, 1988). ● 1986 - 1990: BP Resources Canada Ltd. - Selco Division conducted exploration on the DVFZ north of Jackson’s Arm. This included a number of soil surveys and airborne geophysics. A brief overview of previous exploration (in chronological order) in the Longsteady area is provided below. ● 1987: BP Resources Canada Ltd. conducted a soil sampling survey (n=296) centered on the DVFZ.

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● 1989: Cliff Resources Corp. conducted a soil survey on the north shore of Sops Arm. ● 1990 - Carrick Gold Resources Ltd. conducted a till survey targeting the gold anomalies outlined by the 1987 soil survey. Six diamond drill holes were subsequently drilled and targeted the Murray’s Cove Schist in the area of the anomalies. Immediately north of the Longsteady license, in what has been informally named the “line 5400 N” area (Day 1989), more extensive exploration has been conducted and includes: a soil geochemical survey by BP Resources Canada and Esso Minerals Canada Ltd. in 1986, a till/gold grain survey by BP and Esso in 1988, drilling by Carrick Gold Resources Ltd. in 1990 and trenching and re-assaying of core by Rainbow Resources Ltd. in 1997.

2.0 GEOLOGICAL SETTING

2.1 Tectonic Setting

The Island of Newfoundland provides a cross-section of the Proterozoic to Devonian Appalachian Orogen (Figure 3). The orogen has been divided into four major tectonostratigraphic zones which are, from west to east, the Humber, Dunnage, Gander and Avalon Zones. The Humber Zone, in the west, represents the eastern margin of Laurentia and consists of Paleoproterozoic crystalline rocks overlain by Paleozoic shelf facies rocks. In the east, the Avalon Zone represents the western margin of Gondwana and is comprised of late Precambrian plutonic, volcanic and sedimentary rocks, overlain by Paleozoic platformal sedimentary units. The Gander Zone represents mainly sedimentary rocks believed to have been deposited near the eastern continental margin of the Iapetus Ocean. The Dunnage zone is comprised of the vestiges of the Iapetus Ocean and later accreted island-arc systems and mélanges that formed as the Iapetus Ocean closed. Based upon disparities mainly within the stratigraphy, the Dunnage Zone has been divided into two subzones, the Notre Dame and Exploits Subzones. The Humber Zone is separated from rocks of the Notre Dame Subzone by the Baie Verte - Brompton Line, a major northeast discontinuity extending from the Port Aux Basques area through Grand Lake and the Baie Verte Peninsula. The Baie Verte – Brompton Line delineates a complete geological, geochemical, structural and geophysical break between rocks of continental Laurentia and those forming the geological framework of the Iapetus Ocean. The basement rocks of the Humber zone consist of Proterozoic gneisses of mainly granitic to tonalitic composition which form the core of the Great Northern Peninsula. A Cambrian to Ordovician cover sequence including platformal carbonates was deposited on the gneissic core and subsequently thrust westward onto the basement during the Taconic Orogeny.

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Figure 3. Tectonostratigraphic Setting

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2.2 Regional Geological Setting The White Bay area is at the boundary of two principal terranes that are separated by a major geological lineament termed the Doucer’s Valley Fault Zone (DVFZ) (refer to Smyth and Schilereff, 1981).

The Coney licenses are located within the Long Range Inlier, which is the Proterozoic core of the Humber Zone, near its southeastern boundary and the Cambro-Ordovician sedimentary cover sequence. However, the Longsteady license is dominantly underlain by rocks belonging to the Sops Arm Group and the Southern White Bay Allochthon (SWBA). The Long Range Inlier is composed dominantly of granulite to amphibolite-grade gneiss derived from protoliths with an age date of at least 1,550 Ma (Owen, 1991). The gneiss is mainly quartzofeldspathic in composition and is comprised of quartz dioritic, tonalitic, granodioritic and granitic compositional variants. A minor portion of the gneiss is of pelitic, quartzite, mafic and metacarbonate composition which make up folded bands within the quartzofeldspathic gneiss. The Long Range Inlier has been intruded by a number of Grenvillian-age granitoids which collectively underlie approximately 35% of the Inlier. In the area west of White Bay, two of these intrusions, the Apsy and Main River Plutons, occupy the eastern margin of the Inlier. The Apsy Granite has been investigated by Saunders and Tuach (1988), who describe the granite as having a variable composition with phases ranging from tonalite to granite. The gneiss and Grenvillian granitoids are cut by a suite of ~613 Ma mafic to ultramafic dykes referred to as the Long Range Dykes. Overlying the gneissic and plutonic rocks of the Inlier in the White Bay area is a sequence of Cambrian to Ordovician sedimentary rocks which have recently been correlated with the well exposed and much larger cover sequences on the north and west sides of the Inlier (Kerr and Knight, 2004). This sedimentary package has been compressed by a number of west verging thrust faults. The 7 kilometre wide area between the Aspy and Main River Plutons is underlain by the Devil’s Room Granite, which at 398 Ma, are the youngest plutonic rock(s) in the area. The Devil’s Room Granite is correlated with the Gull Lake Intrusive Suite on the opposite side of the DVF which indicates that some of the movement of the fault postdates the granite. East of the DVF is a disrupted sequence of Cambro - Ordovician rocks that were emplaced during the Taconic Orogeny. This sequence is comprised of deep water marine siliciclastics and sections of oceanic crust that were transported in a westward direction across the Laurentian margin. Collectively, these rocks have been named the Southern White Bay Allochthon. The subunits of the SWBA are: the Taylor Pond Formation which consists of limestones and phyllites, the Maiden Point Formation which is comprised of greywacke and

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phyllite and the Murray’s Cove Schist which consists of chlorite schist, carbonate schist and sericite-chlorite schists, as well as lesser amounts of serpentine and talc-carbonate schists. The eastern most part of the area, proximal to the shores of White Bay, is underlain by rocks assigned to the Silurian Sops Arm Group. Felsic and lesser mafic volcanic lithologies, conglomerates and siliciclastics rocks of this group are inferred to unconformably overlie the SWBA but primarily faulted contacts are noted.

2.3 Local Geology The area of the Coney licenses was included in Owen’s (1991) map of the Long Range Inlier. In addition, a large portion of the property, near Rattling Brook, was explored by Varna Resources Inc. in 1987, and the southwest corner was worked by Golden Base Resources Ltd. from 1997 to 1998. The following description of the property geology was taken from these sources in addition to newly acquired data from Altius’ 2009 and 2010 field programs (refer to appended maps 1 & 2). The Coney licenses straddle the contact between the Apsy Granite and the Long Range Gneiss. The southeastern portion of the property is underlain by the Apsy Granite, a foliated, multiphase, biotite-bearing felsic intrusion that compositionally ranges from tonalite to granite but is dominantly granodiorite. The remainder of the licenses is underlain by the Long Range Gneiss, which is dominantly quartzofeldspathic in composition with small, largely unmapped bands of mafic rocks and paragneiss. The underlying geology of the Longsteady license is distinctly different from the Coney area. It is located on the DVFZ, which has been postulated to be genetically related to gold mineralization in western White Bay. Lithologies from both sides of the fault zone underlie the license and are (from west to east): the Siluro - Devonian Devil’s Room Granite, the Cambro - Ordovician Port Aux Port Group, the Southern White Bay Allochthon (SWBA) and the Sops Arm Group (which is comprised of a Lower Volcanic Formation), the Frenchman’s Cove Formation, the Simms Ridge Formation and the Natlin’s Cove Formation. The uppermost unit of the Sops Arm Group, the Natlin’s Cove Formation, does not underlie any part of the Longsteady license.

2.4 Structure & Metamorphism

2.4.1 Faulting & Folding Within a few kilometres of the eastern margin of the Inlier, the apparent structural fabric is dominated by linear features parallel and oblique to the margin (025° and 055° respectively). These features are interpreted by Owen (1991) to be of Paleozoic age and associated with strike-slip movement along the DVFZ. Thus, the fault system may have a long-lived and complex history of reactivation. Furthermore, there is evidence of both dextral strike-slip and westward thrust faulting. In the Longsteady area, the structural fabric is dominated by the north-northeast trend of the DVFZ. Most of the geological contacts in this trend are steeply dipping (southeast) to vertical.

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There are a number of strong northeast-trending linears on the property with an orientation at 60° (oblique) to the DVFZ, which suggests that they may be conjugate shears resulting from dextral movement along the DVFZ.

2.4.2 Metamorphic Grade The metamorphic facies of the Long Range Inlier varies from granulite facies in the southwest to amphibiolite and greenschist facies in the northeast. Superimposed on this is retrograde metamorphism which intensifies towards the eastern margin of the Inlier. In the western White Bay area, variations in metamorphic grade within the quartzofeldspathic rocks are expressed in the change of mafic minerals from hornblende to biotite to partial replacement of biotite by chlorite and epidote as the eastern margin of the Inlier is approached. In the Longsteady area, the metamorphic assemblage ranges from phyllites of the Taylor Pond Formation to mid-greenschist-grade schists of the Murray’s Cove Schist.

2.5 Metallogeny

2.5.1 Local Metallogeny The White Bay area is underlain by Proterozoic to Devonian extrusive, intrusive, gneissic and sedimentary rocks, and hosts at least three types of mineral deposits (after Saunders, 1991): (1) mesothermal Au, (2) carbonate-hosted Pb (3) granite-hosted F and Mo. The White Bay Project was initiated for its potential to host gold in an orogenic setting and so only this type of mineralization is described here. Gold mineralization in the area occurs in mesothermal-style quartz and quartz-carbonate veins. To the east and southeast, these veins occur in the sedimentary rocks of the Sops Arm Group as well as the platformal sedimentary units. West of the Doucer’s Valley fault, they occur in the Cambro - Ordovician platformal sedimentary rocks and in the Grenvillian plutons. In addition to gold, they also contain minor amounts of base metal sulphides (pyrite, arsenopyrite, chalcopyrite, galena and sphalerite). Iron carbonate alteration is associated with some of the gold-bearing veins (Kerr, 2006a). The gold mineralization is typically low-grade, although there are localized occurrences to 315 ppm Au. The gold mineralization is regionally correlated with silver, and locally with copper and/or lead. The vein system(s) may be related to regional structures or to Devonian intrusions such as the Gull Lake Intrusive Suite and the Devil’s Room Granite. At the Viking prospect (approximately 12 kilometres to the south of the Longsteady area), Northern Abitibi Mining Corporation has intersected significant gold mineralization within the Main River Pluton (57.4 metres @ 2.8 g/t Au and 23.0 metres @ 5.1 g/t Au) and associated

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with bonanza-grade veins (0.5 metres @ 218.8 g/t Au, 5.75m @ 33.7 g/t Au and 3.7 metres @ 50.1 g/t Au; Northern Abitibi press release, December 2, 2010). The mineralization occurs along the “Thor Trend” which is a north south oriented zone of gold mineralization that is at least 1 kilometre long and varies in width from 30 to 60 metres. The lower-grade mineralization occurs in carbonate-altered, porphyritic granite containing sheeted and stockwork quartz veins whereas the bonanza grades are hosted by quartz-carbonate (Fe) veins that carry minor sulphides (mainly pyrite-galena-chalcopyrite-sphalerite) and visible gold. In the Jackson’s Arm area, gold mineralization has been found in the Apsy Granite and in the overlying sedimentary rocks. Recent work by Kermode Resources Ltd. has defined resources at three locations where gold is associated with the contact between the granite and sedimentary rocks, and also occurring within the granite near the contact.

Alteration and gold mineralization within the Apsy Granite has been studied by Saunders and Tuach (1988) who have found two stages of hydrothermal alteration. The first stage is a pervasive potassic alteration which is characterized by the formation of microcline and sericite, which locally converts the original tonalitic to granodioritic rock into granite. The second phase of alteration is localized along fractures and veins and cross-cuts the unaltered host rock and first stage of alteration. This later alteration produces veins of microcrystalline quartz and albite with carbonate and sericite. The albite veins can be isolated or occur in sheeted swarms that can be up to 12 metres in width. The same assemblage has been noted in the matrix of mineralized hydrothermal breccias. Interestingly, the highest gold values are associated with the albite veins. Along the DVFZ between Jackson’s Arm and Sops Arm, gold exploration has been conducted using a Listwaenite-hosted model. Serpentine, talc and fuchsite-bearing schists are direct evidence of ultramafic material in the Murray’s Cove schist. In places, intensive quartz-carbonate alteration indicates the possibility of gold mineralization. Historic soil and till surveys have outlined a 500-metre long gold-in-till anomaly (up to 13,400 ppb Au) within the Longsteady area. Drilling of this anomaly encountered zones of silicified ultramafic schist but only one sample assayed above background levels (396 ppb Au).

2.5.2 Property Mineral Occurrences Currently, there are no recorded mineral occurrences within the Longsteady license. However, there are four historic gold occurrences and one pyrite occurrence on the Coney licenses, all proximal to the contact between the western margin of the Apsy Granite and the quartzofeldspathic gneiss. All of the occurrences are situated along prominent northeast-trending linears, within the contact zone of the granite and gneiss. Two of the gold occurrences, Rattling Brook West and C.D. # 3, are described as having mineralization in quartz veins associated with Long Range dykes. The other two gold occurrences, Fly Camp Pond and North Boundary, are described as occurring in quartz veins which cut the gneiss. The Rattling Brook West showing is the southernmost showing and is described as “gold and silver mineralization associated with pyrite, chalcopyrite and malachite in a quartz vein which

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cuts sheared diorite”. Assays up to 0.005 oz/t Au, 0.22 oz/t Ag and 1.23% Cu have been reported (French, 1985). Approximately 1.4 kilometres to the northeast of the Rattling Brook West Showing, is the C.D. #3 showing consisting of pyrite and calcite minerals in a 2 metre quartz vein associated with a Long Range dyke. Five samples assayed above the detection limits of gold (up to 52 ppb Au with 840 ppm Cu; Dearin and Hepp, 1987). The Fly Camp Pond Showing occurs in a linear approximately 800 metres to the northeast of the C.D. # 3 showing. It consists of pyrite, chalcopyrite and graphite occurring in quartz veins. A grab sample assayed 0.68 g/t Au (French, 1985). The North Boundary gold showing is located in a similar linear 2 kilometres to the east of the Fly Camp Pond Showing. The occurrence consists of a quartz vein cutting gneiss with minor pyrite and chalcopyrite mineralization. The vein has been traced for 30 metres along the side of a pond that defines the linear. Assays from two grab samples returned values of 0.10 and 1.41 g/t Au (French, 1985). The C.D. # 2 pyrite showing occurs approximately 800 metres to the east-northeast of the C.D. # 3 showing. It is described as “up to 5% disseminated pyrite in a 10 metre by 100 metre long northeast trending zone of quartz sericite altered gneiss” (Dearin and Hepp, 1987).

3.0 WORK PROGRAMS CONDUCTED

The 2010 exploration program consisted of a helicopter supported prospecting and rock sampling program. The work was completed from July 27 to August 1, 2010. A total of 58 rock samples were collected and a new mineral occurrence was identified. The samples were sent to Eastern Analytical of Springdale NL and analyzed by the ICP-30 and Au @ ½ AT by Fire Assay/AA packages. Overall, only a few samples were weakly anomalous in copper and gold. Rock sample locations and descriptions are provided in Appendix 1 and analytical certificates are provided in Appendix 2.

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3.1 Listing of Personnel

Table 2: Listing of Personnel

Employee Home Town Man

Days Activities

Andrea Devereaux

Conception Bay South, NL

1.00 planning & logistics, drafting

Bob Patey St. John’s, NL 1.25 data compilation

Dale O’ Reilly Mount Pearl, NL 5.25 planning & logistics, data review

Jackie O' Driscoll St. John’s, NL 20.75 mapping, prospecting, sampling, reporting, drafting, planning & logistics, research & compilation

Jessica Ivany Conception Bay South, NL

9.00 prospecting & sampling

Lloyd King Goulds, NL 8.50 prospecting & sampling

Merv Davis Westport, NL 8.00 prospecting & sampling

Rod Churchill Portugal Cove, NL 1.75 reporting, drafting, data management, project accounting, lands management

Total Man Days 55.50

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3.2 Listing of Contractors & Suppliers

Table 3: Contractors and Suppliers

Vendor/Supplier Location Services/Goods Supplied

Bell Mobility Inc. St. John's, NL cellular communications

Bob Patey St. John’s, NL GIS data compilation

Burton & Sons Pollard’s Point, NL vehicle repairs

Canadian Tire Gander, NL field supplies

Clover Farms Pollard’s Point, NL groceries

Eastern Analytical Limited Springdale, NL analytical services

Foodland Deer Lake, NL groceries

Ford Credit Canada Leasing Company Calgary, AB vehicle leasing

Home Hardware Deer Lake, NL field supplies

Provincial Airlines St. John’s, NL passenger flights for field crew

River Sea Motel Pollard’s Point, NL accommodations & meals

Universal Helicopters Newfoundland Ltd. Pasadena, NL helicopter charter

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3.3 Statement of Expenditures

Table 4: Statement of Expenditures

Expenditure Amount 17547M 17549M 17550M

Accommodations $2,250.00 $112.50 $2,025.00 $112.50

Analytical Charges $2,121.80 $256.08 $1,536.48 $329.24

Communications $134.91 $6.75 $121.42 $6.75

Field Supplies $461.73 $23.09 $415.56 $23.09

GIS Data Compilation $2343.25 $117.16 $2,108.93 $117.16

Meals $757.83 $37.89 $682.05 $37.89

Travel: Airfare $292.93 $14.65 $263.64 $14.65

Travel: Fuel $248.06 $12.40 $223.25 $12.40

Travel: Helicopter Charter $16,378.17 $ - $14,836.74 $1,541.43

Travel: Leasing Costs $130.86 $6.54 $117.77 $6.54

Travel: Mileage Claims $176.98 $8.85 $159.28 $8.85 Wages & Employee Benefits $14,027.83 $701.39 $12,625.05 $701.39

Subtotal $39,324.35 $1,297.30 $35,115.16 $2,911.89

15% Overhead $5,898.65 $194.59 $5,267.27 $436.78

TOTAL $45,223.00 $1,491.89 $40,382.43 $3,348.68

Assessment Year 2 2 2

Work Due Date 26-Mar-2014 26-Mar-2011 26-Mar-2016

Number of Claims 12 126 11

Work Required* $ - $12,621.18 $ -

Excess or (Deficiency) $1,491.89 $27,761.25 $3,348.68

* Items showing $0 for work required denotes no work due in Year 2 due to excess credits carried forward from Year 1 exploration

…18

3.4 Prospecting & Mapping

3.4.1 Coney Licenses A total of 5 days were spent prospecting and rock sampling on the Coney licenses. All work on these claims was helicopter supported. The steep valleys and abundance of low dense shrub on hilltops made finding a landing site and traversing difficult. As well, outcrop is fairly limited to exposures along hilltops or ridges. Outcrop exposure is generally 5 to 10%.

Three main lithologies were noted: granite, gneiss and to a much lesser extent, mafic dykes. Samples were taken throughout the property in all three lithologies. A total of 51 rock samples were collected on the Coney licenses (9 on license 17550M and 42 on license 17549M) (Map 1). The gneiss is mainly quartzofeldspathic in composition and is comprised of quartz dioritic, tonalitic, granodioritic and granitic compositional variants. A minor portion of the gneiss is of pelitic, quartzite, mafic and metacarbonate composition which make up folded bands within the quartzofeldspathic gneiss.

The granite unit intrudes the gneiss and consists of a variably foliated, coarse grained, K-feldspar porphyritic to megacyrstic and biotite rich intrusive (Plate 2). The mineralized structures within the granite appear to exhibit weak to strong amounts of carbonate, potassic, albitic and sericite alterations. The Long Range Diabase dykes comprise the youngest units found in the area. They trend 060° to 080° and are steeply dipping plagioclase porphyritic diabase dykes. The dykes have been noted to locally cut the alteration mineralization in the granodiorite (Dearin and Hepp, 1987). The Long Range diabase dykes often have quartz veins associated with them. The veins vary in size, but veins up to 2 metres wide and 100 metres long have been noted. They generally occur on one side of the dyke only. They are composed of massive white quartz with minor calcite and pyrite. Samples taken from these veins in the area by previous workers have retuned anomalous gold values. Air photo interpretations by Altius in 2009 identified assumed structural linears throughout the property. The two dominant lineaments (at 020° and 060°) are observed in the granitic rock, consistent with the interpretations of previous workers. These lineaments are likely developed by westerly thrusting related to the DVFZ which led to the development of shallowly to moderately eastward dipping mylonite zones. These structures have a well developed foliation and aligned feldspar augen in the gneissic rocks (Plate 3).

…19

Plate 2. K-feldspar Granite.

Plate 3. Gneiss unit with feldspar augen.

…20

An attempt to locate previous occurrences as recorded on these claims in the Newfoundland Mines and Energy mineral occurrence database (MOD) was undertaken. However, as was the case in 2009, none of the occurrences could be located. Multiple traverses were made in the area of the gold occurrences. Three of these occurrences, the Rattling Brook West, North Boundary and Fly Camp Pond have been described as occurring along stream, river or ponds and water levels were high during the 2010 program which may have obscured these showings. However, approximately 300 metres northwest of the Rattling Brook West Showing, along a small water hole, a quartz vein with potassic and carbonate alteration as well as disseminated pyrite was discovered cutting the coarse grained k-feldspar granite at 506551/5527882 (Plate 4). A sample of the quartz vein returned slightly anomalous results of 104 ppm Cu and 0.7 ppm Ag (sample 4935). This may be related to the Rattling Brook West mineralizing event as that showing also contains copper and silver associated with altered quartz veins.

Plate 4. Mineralized and altered quartz vein in granite near Rattling Brook West.

The program was successful in locating a new copper-gold occurrence, referred to in this report as the “Bear Hill Showing” at 509011/5528519. This showing occurs in a quartz vein cutting a green, fine grained, chloritic mafic dyke, which appears to intrude the gneiss, near the granite and gneiss contact. A 20-30 centimetre wide vein was exposed over a length of approximately 4 metres (Plate 5). The vein contained patches of medium grained chalcopyrite and pyrite as well as finer veinlets. The mafic dyke exhibits a strong structural fabric trending 020°/80° and contained disseminated fine grained pyrite near the quartz contact. The quartz vein consists of a coarse grained white to clear quartz with an orange to rusty red colored potassic alteration with

…21

lesser blebs of chlorite and carbonate. The mineralization appears localized to the areas of alteration (Plate 6). Assays from the quartz vein returned values up to 17 ppb Au and 2098 ppm Cu (Sample 4231). The dyke has an obvious surface expression and appears to be up to 10 metres wide and extends to the southwest and northeast of the showing (Plate 7). No obvious mineralization was observed in the nearby granite or gneiss units.

A second quartz vein was also located at the base of a small rock face of granite approximately 20m southwest of the showing. The vein was of similar size and locally contained pyrite, however no anomalous results were returned from these samples.

Plate 5. Mineralized quartz vein in diabase dyke.

…22

Plate 6. Mineralized and altered quartz with diabase host from the Bear Hill Showing.

Plate 7. Surface expression of the diabase dyke from the Bear Hill Showing. View to the northeast.

…23

Approximately 2 kilometres to the southwest, several pieces of quartz float, similar to what was found at the Bear Hill Showing, were sampled at 507868/5526887. The float contained patches of medium grained chalcopyrite and pyrite in a pervasively potassic and carbonate altered quartz boulder (Plate 8). Samples from this boulder returned assays up to 41 ppb Au, 12.3 g/t Ag and 2116 ppm Cu (Sample 4230). This differs from the Bear Hill Showing in that no silver was found within those samples. However, other occurrences in the area (i.e., Rattling Brook West) do contain anomalous silver values.

Plate 8. Mineralized and altered quartz float.

3.4.2 Longsteady License One day was spent prospecting and sampling on the Longsteady license. The property was accessed by foot from route 420 as well as by helicopter. A total of 7 samples were collected on license 17547M. Only one of these samples, 4934 at 508856/5517938, returned an anomalous assay with values of 775ppb Au, 430 ppm As and 1089 ppm Ni. The sample consisted of light greenish grey quartz carbonate schist (Plate 3). In general, outcrop exposure is limited on this license and can only be found in cliff face exposures on the extremely steep hillsides.

…24

Plate 9. Quartz carbonate schist.

4.0 CONCLUSIONS & RECOMMENDATIONS

The 2010 prospecting and sampling program on the Coney licenses was successful in further outlining the relationship of mineralization to northeast trending linears and the long range dykes near the contact zone of the granite and gneiss units. In particular, the discovery of a new mineral occurrence within this zone suggests that further prospecting and sampling should concentrate on the area surrounding the contact. Although the 2010 program was hampered by accessibility issues due to rugged terrain, portions of the contact zone should be accessible by traversing. Prospecting and sampling on the Longsteady license was made difficult due to the steep terrain and lack of outcrop exposure. Further prospecting should concentrate on finding outcrop exposures of the anomalous float material.

5.0 BIBLIOGRAPHY & DATA REFERENCE LIST

Bradley, P. 1989: First year assessment report on geological and geochemical exploration for licence 3380 on claim block 4840 in the Sops Arm, Little Tickle Pond and Georges Island areas, Newfoundland. Cliff Resources Corporation and Canaustra Gold Exploration Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1106, 45 pages

…25

Cullen, M.P., Kennedy, C., Harrington, M, and Hilchey, A., 2009: Technical Report on Mineral Resource Estimate Jacksons Arm Gold Project, White Bay, Newfoundland and Labrador., Mercator Geological Services, for Kermode Resources Ltd. Carson, J.M., Holman, P.B., Ford, K.L., Grant, J.A., and Shives, R.B.K. 2003: Airborne Gamma Ray Spectrometry Compilation, Island of Newfoundland, Newfoundland and Labrador; geological Survey of Canada, Open File 4463, scale 1:1 000 000. Day, T. 1989: Fourth year assessment report on geological, geochemical and trenching exploration and re-examination of drill core for licence 2942 on claim blocks 2755-2757 in the Jacksons Arm area on the Great Northern Peninsula, Newfoundland. Carrick Gold Resources Limited, Homestake Mining [Canada] and Esso Minerals Canada, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1160, 57 pages. Dearin, C. and Hepp, M.A., 1987: Second year assessment report on geological and geochemical exploration for licence 2727 on claim blocks 4281-4282, licence 2728 on claim block 4283, licence 2729 on claim block 4284, licence 2768 on claim block 4271, licence 2798 on claim block 4272 and licences 2769-2770 on property in the Jacksons Arm area, White Bay, western Newfoundland. Varna Resources Incorporated, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/0976, 106 pages. French, V.A., 1988: Second year assessment report on geological and geochemical exploration for licence 2688 on claim block 4351, licence 2689 on claim block 4352, licence 2722 on claim block 4350, licence 2723 on claim block 4349, licence 2727 on claim blocks 4281-4282, licence 2728 on claim block 4283, licence 2729 on claim block 4284, licence 2768 on claim block 4271, licence 2769 on claims 15453-15454, licence 2770 on claims 15454-15455 and licence 2798 on claim block 4272 in the Jacksons Arm and Great Coney Arm areas, Newfoundland. Varna Resources Incorporated, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1007, 250 pages. French, V.A., 1989: First year assessment report on geological and geochemical exploration for licence 3374 on claim block 5927 and licence 3375 on claim blocks 5928-5929 in the Rattling Brook West area, western Newfoundland. Varna Gold Incorporated, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1108, 37 pages. Gashinski, R.C. 1988: Second year assessment report on geological, trenching and geochemical exploration for licence 2942 on claim blocks 2755 and 2757 in the Pollards Point area, Newfoundland. Esso Minerals Canada, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1000, 37 pages. Graves, R.M.1997: First year assessment report on prospecting and geochemical exploration for licence 4545m on claims in the Pittmans Pond area, White Bay area, Newfoundland. Golden Base Resources [of Canada] Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1418, 42 pages.

…26

Graves, R.M.1998: Second year assessment report on geological, geochemical and geophysical exploration for licence 4545m on claims in the Pittmans Pond area, White Bay, western Newfoundland. Golden Base Resources [of Canada] Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1397, 74 pages. Holmes, J.M., Gubins, A. and Oneschuk, D. 1988: Third year assessment report on geological, geochemical and geophysical exploration for the Sops Arm project for licence 2667 on claims in the Long Pond and Doucers Brook areas, Newfoundland, 2 reports. BP Resources Canada Limited and Murphy, L, Newfoundland and Labrador Geological Survey, Assessment File 12H/10/1032, 70 pages. Holmes, J.M. and McKenzie, C.B. 1987: Second year assessment report on geological and geochemical exploration for licence 2667 on claim blocks 4306 and 4022 in the Long Pond area, Newfoundland. Selco Division-BP Resources Canada Limited and Murphy, L, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/0994, 40 pages. Holmes, J.M. and Oneschuk, D.,1989: First year assessment report on geological, geochemical and geophysical exploration for licence 3202 on claim blocks 5613-5614 in the Main River North area, Newfoundland, 2 reports. BP Resources Canada Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1046, 42 pages. Kerr, A., 2004: An overview of sedimentary-rock-hosted gold mineralization in western White Bay (NTS map area 12H/15). In Current research, Edited by C. P. G. Pereira, D. G. Walsh and B. F. Kean, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey, Report 4-1, pages 23-42. Kerr, A. and Knight, I., 2004: Preliminary report on the stratigraphy and structure of Cambrian and Ordovician rocks in the Coney Arm area, western White Bay (NTS map area 12H/15). In Current research, Edited by C. P. G. Pereira, D. G. Walsh and B. F. Kean, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey, Report 4-1, pages 127-156. Kerr, A., Knight, I. and McCuaig, S., 2004: Western White Bay : stratigraphy, structure, gold mineralization and Quaternary history. Geological Association of Canada, Newfoundland Section, Field Trip Guidebook, 89 pages. Laforme, G.W. and Wober, H. 1980: Summary report for 1977-1978 for regional uranium exploration including geochemical and geophysical surveys of the Great Northern Peninsula, Newfoundland. Chevron Canada Limited and Chevron Standard Limited, Newfoundland and Labrador Geological Survey, Assessment File NFLD/1143, 116 pages. McCuaig, S. 2003: Till geochemistry of the White Bay area, Newfoundland. Newfoundland and Labrador Geological Survey, Open File NFLD/2823, 127 pages.

…27

O'Sullivan, J.R.1986: First year assessment report on prospecting, geological, geochemical, geophysical, trenching and diamond drilling exploration for licence 2675 on claim block 13971-13972, licence 2691 on claim block 13982, 15508-15512, licence 2695 on claim block 15295, 15297-15299, 15501-15505, licence 2696 on claim block 15506-15507, licence 2700 on claim block 4087-4090, licence 2763 on claim block 4633, licence 2674 on claim block 2754, licence 2690 on claim block 13980-13981, 15278-15284, 15524, licence 2708 on claim blocks 2755-2757, licence 2692 on claim 15294, licence 2693 on claim 15285, licence 2694 on claims 15513-15523, licence 2714 on claim 15533 and licence 2822 on claim 15376 in the Pollards Point area, Newfoundland. Morgain Minerals Incorporated, Orcana Resources Incorporated, Redaurum Red Lake Mines Limited and Esso Minerals Canada, Newfoundland and Labrador Geological Survey, Assessment File 12H/0940, 186 pages. O'Sullivan, J. 1988: Third year assessment report on geological, geochemical and diamond drilling exploration for licence 2942 on claim blocks 2755-2757 in the Jacksons Arm area on the Great Northern Peninsula, Newfoundland. Carrick Gold Resources Limited and Esso Minerals Canada, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1053, 76 pages. O'Sullivan, J. 1991: Fifth year assessment report on trenching and diamond drilling exploration for licence 2942 on claim blocks 2755-2757 in the Jacksons Arm area on the Great Northern Peninsula, Newfoundland. Carrick Gold Resources Limited and Homestake Mining [Canada] Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1212, 58 pages. O'Sullivan, J. 1998: First and second year assessment report on geological, geochemical and trenching exploration for licences 4557m, 5133m and 5852m on claims in the Jacksons Arm area, White Bay, Newfoundland. Rainbow Resources Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1395, 35 pages. O'Sullivan, J. and Barbour, D. 2000: First and fourth year assessment report on geological and geochemical exploration for licences 6407m, 6754m-6755m and 6874m on claims in the Jacksons Arm area, White Bay, Newfoundland. Rainbow Resources Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1634, 42 pages. Owen, J.V.1990: Geology, Long Range Inlier, Newfoundland. Geological Survey of Canada, "A" Series Map no. 1764A. Owen, J.V.1991: Geology of the Long Range Inlier, Newfoundland. Geological Survey of Canada, Bulletin no. 395, 89 pages. Saunders, C.M. and Tuach, J. 1988: K-feldspathization, albitization and gold mineralization in granitoid rocks: the Rattling Brook alteration system, western White Bay, Newfoundland. In Current research, Edited by R. S. Hyde, D. G. Walsh and R. F. Blackwood, Government of

Altius Resources Inc. ….A1

APPENDIX 1. Rock Sample Descriptions

Sample No.

License Date Easting Northing Projection Zone Sample Medium

Sample Type

Rock Type Description

4236 17547M 31‐Jul‐10 509115 5518347 NAD 27 21 boulder grab quartz Quartz boulder in stream.

4237 17547M 31‐Jul‐10 509118 5518599 NAD 27 21 boulder grab quartz Quartz boulder with pyrite.4942 17547M 31‐Jul‐10 509135 5518342 NAD 27 21 boulder grab sedimentary Very fine grained marine layered sediments with 

minor pyrite grains dominantly located between layers. Shaley, deep grayish blue appearance. Located on side of steep forested hill.

4943 17547M 31‐Jul‐10 509141 5518423 NAD 27 21 boulder grab sedimentary Similar to sample 4942. However, slightly more compacted and/or siliceous. Blocky sub‐angular boulder in ~2m2 boulder field in forested area.

4944 17547M 31‐Jul‐10 509115 5518596 NAD 27 21 outcrop grab slate Highly metamorphosed sediments. Green to bluish slate with high sheen and high degree of parting. Dipping close to vertical.  Contains a mm size quartz vein or pyrophyllite with some  harder sillimanite(?). Outcrop near bottom of  overgrown transmission line.

3769 17547M 01‐Aug‐10 508286 5517405 NAD 27 21 outcrop grab marble Along west side of pond next to highway. Carbonate. Possibly marble. White milky carbonate with blebs of black.

3771 17547M 01‐Aug‐10 509075 5517631 NAD 27 21 outcrop grab altered unknown

Quartz vein in altered ultramafic? Top of ridge at Longsteady claim.

2694 17549M 28‐Jul‐10 511295 5529738 NAD 27 21 subcrop grab granitic gneiss Course grained granitic gneiss. Dominantly k‐feldspar and plagioclase with intermittent ~30% moderately aligned, somewhat linear clumps of  fine grained amphibole with biotite. Rusty with minor epidote. 

2695 17549M 28‐Jul‐10 510698 5529868 NAD 27 21 outcrop grab granite Granite. Dominantly plagioclase with quartz phenocrysts and minor biotite. Orange rusty surface weathering with trace pyrite with either tarnished pyrite or possibly chalcopyrite?

2010 Rock Samples 1

Sample No.

License Date Easting Northing Projection Zone Sample Medium

Sample Type

Rock Type Description

2696 17549M 29‐Jul‐10 510997 5528651 NAD 27 21 outcrop grab mafic intrusion

~3m wide mafic intrusion with bluish gray matrix and moderate green chlorite alteration within granitic host. ~5% quartz phenocrysts and minor epidote(?) phenocrysts also. Spotty patchy disseminated pyrite throughout. 268/72 (RH) 

2697 17549M 29‐Jul‐10 510333 5529225 NAD 27 21 outcrop grab quartz vein ~15cm wide broken, crumbly quartz vein within granitic gneiss host. Trending SW↔NE. Chlorite, clay and minor potassic alteration. ~2cm pod of green chlorite within quartz vein.  

2698 17549M 29‐Jul‐10 507872 5526847 NAD 27 21 boulder grab granitic gneiss Medium grained granitic gneiss. Orangey rusty weathering. Trace pyrite along foliation.

2699 17549M 29‐Jul‐10 507900 5526822 NAD 27 21 outcrop grab granitic gneiss Very course grained granitic gneiss.

2700 17549M 29‐Jul‐10 506897 5526488 NAD 27 21 boulder grab mafic igneous Medium to dark bluish gray mafic with medium grained matrix. Mineralization disseminated throughout however concentrated along a minor foliation. Pyrite with some grains being tarnished or perhaps minor chalcopyrite. Extremely rusty with purplish staining.

3768 17549M 29‐Jul‐10 507098 5526375 NAD 27 21 float grab quartz feldspathic gneiss

Whitish angular float. Medium to coarse grained quartzofeldspathic gneiss with cm size blebs of green chlorite and disseminated pyrite.

4229 17549M 29‐Jul‐10 507972 5526765 NAD 27 21 boulder grab gneiss Gneiss with trace pyrite.4230 17549M 29‐Jul‐10 507868 5526887 NAD 27 21 boulder grab4231 17549M 30‐Jul‐10 509011 5528519 NAD 27 21 outcrop grab quartz Quartz vein with chalcopyrite.4232 17549M 30‐Jul‐10 509010 5528525 NAD 27 21 outcrop grab quartz Quartz vein.4233 17549M 30‐Jul‐10 509010 5528525 NAD 27 21 outcrop grab gabbro Sheared gabbroic intrusive located alongside 

mineralized quartz vein with sample numbers  4231 and 4232.

4234 17549M 30‐Jul‐10 508899 5528456 NAD 27 21 outcrop grab quartz Quartz with pyrite.4235 17549M 30‐Jul‐10 502587 5524497 NAD 27 21 boulder grab4239 17549M 01‐Aug‐10 509710 5529396 NAD 27 21 boulder grab Blue/grey rounded boulder on hill.

2010 Rock Samples 2

Sample No.

License Date Easting Northing Projection Zone Sample Medium

Sample Type

Rock Type Description

4940 17549M 30‐Jul‐10 510142 5529457 NAD 27 21 outcrop grab intermediate plutonic

K‐feldspar rich, coarse grained granite with cm size sugary/crumbly quartz veins cutting thru. Sericite and potassic alteration with disseminated and semi‐massive patches of sulphide dominantly along veining. Unknown very fine grained dark mm size veinlets dominantly paralleling quartz veins.

4941 17549M 30‐Jul‐10 509006 5528501 NAD 27 21 outcrop grab quartz Quartz vein between a granite and gneiss contact, close to (relating with?) a large, ten meters wide, hundreds of meters long mafic dike. Abundant, extreme amount of mica along direct edge of contact with chlorite and sericite alteration also present. Sample taken consists of quartz vein with some attached mica rich gneiss.

4915 17549M 28‐Jul‐10 511241 5529768 NAD 27 21 boulder grab granite Subangular coarse grained pinkish granite boulder with greenish alteration? Patches and disseminated sulphides.

4916 17549M 29‐Jul‐10 510767 5528509 NAD 27 21 outcrop grab granite Outcrop of coarse grained pinkish k‐fsp granite. Rare disseminated pyrite and quartz vein nodules.

4917 17549M 29‐Jul‐10 510245 5529135 NAD 27 21 subcrop grab granite Subcrop of medium grained pinkish k‐fsp granite cut by a local shear zone. Disseminated pyrite.

4918 17549M 29‐Jul‐10 508106 5526936 NAD 27 21 subcrop grab granite Quartz veins in coarse grained granitic gneiss with very fine grained silver‐blue sulphides and rusted out cubic holes. Possibly pyrite and galena?

4919 17549M 29‐Jul‐10 508002 5526924 NAD 27 21 float grab quartz Subangular quartz float with reddish potassic alteration and fine grained sulhphides.

4920 17549M 29‐Jul‐10 508076 5526675 NAD 27 21 boulder grab granite Rusty granite boulder.

4921 17549M 29‐Jul‐10 505991 5525108 NAD 27 21 float grab gneiss Quartzofeldspathic gneiss with clorite alteration and possible disseminated galena?

4922 17549M 30‐Jul‐10 510313 5529560 NAD 27 21 float grab quartz Rusty quartz boulder with potassic alteration and pyrite disseminations.

2010 Rock Samples 3

Sample No.

License Date Easting Northing Projection Zone Sample Medium

Sample Type

Rock Type Description

4923 17549M 30‐Jul‐10 510269 5529647 NAD 27 21 float grab gneiss Large subanular boulder of quartzofeldspathic gneiss with mica. Rsuty where weathered but no visible sulphides.

4924 17549M 30‐Jul‐10 509137 5528475 NAD 27 21 outcrop grab gneiss Quartzofeldspathic gneiss with mica.

4925 17549M 30‐Jul‐10 508882 5528401 NAD 27 21 outcrop grab granite Pink k‐fsp granite with fine grained disseminated pyrite? Next to contact with mafic dike.

4926 17549M 30‐Jul‐10 509008 5528494 NAD 27 21 outcrop grab granite Pink k‐fsp granite.4927 17549M 30‐Jul‐10 506755 5524886 NAD 27 21 float grab granite Rusty pinkisk granite boulder

4928 17549M 30‐Jul‐10 506746 5525069 NAD 27 21 outcrop grab granite Greenish mineral in granite.

4929 17549M 30‐Jul‐10 502633 5524564 NAD 27 21 boulder grab quartz Quartz boulder with possible bornite and pyrite.

4930 17549M 30‐Jul‐10 502518 5523006 NAD 27 21 outcrop grab quartz Vein in gneiss. Bluish. Coarse grained. Specks of pyrite.

4931 17549M 31‐Jul‐10 508887 5517992 NAD 27 21 subcrop grab quartz carbonate schist

Greenish fine to medium grained quartz carbonate schist. Rusty at surface. Large angular boulder from hillside. Has green 5mm somewhat elongated specks of fushcite and 6‐8mm dark grey to black round quartz eyes? Rare very fine grained silvery mineral.

4932 17549M 31‐Jul‐10 508887 5517968 NAD 27 21 outcrop grab quartz carbonate schist

SA.

4933 17549M 31‐Jul‐10 508887 5517968 NAD 27 21 outcrop grab quartz carbonate schist

SA

4934 17549M 31‐Jul‐10 508856 5517938 NAD 27 21 float grab quartz carbonate schist

SA.

4935 17549M 31‐Jul‐10 506551 5527882 NAD 27 21 outcrop grab granite Quartz vein in coarse grained k‐fsp granite with rare white quartz veins with reddish patches of potassic alteration. Blebs of chalcopyrite or pyrite.

4936 17549M 01‐Aug‐10 506597 5527890 NAD 27 21 outcrop grab granite Deep salmon colored medium grained granite next to gabbro near contact.

4937 17549M 01‐Aug‐10 506635 5527758 NAD 27 21 outcrop grab quartz Altered granite. Deep salmon color. Rusty.

2010 Rock Samples 4

Sample No.

License Date Easting Northing Projection Zone Sample Medium

Sample Type

Rock Type Description

4939 17549M 01‐Aug‐10 509609 5529303 NAD 27 21 outcrop grab diorite Foliated green diorite dike in intruding granite and trending 020.

2691 17550M 28‐Jul‐10 513310 5533394 NAD 27 21 outcrop grab granitic gneiss Extremely rusty outcrop. Very friable along rusty zone. Biotite and muscovite rich with dioritic appearance.

2692 17550M 28‐Jul‐10 513370 5533416 NAD 27 21 outcrop grab quartz Quartz vein within granitic gneiss. Quartz consists of abundant smokey quartz crystals and is very friable/crumbly. Vein was sampled but surrounding host is orangey/rusty weathered. Perhaps 1 metre wide but hard to tell due to cover.

2693 17550M 28‐Jul‐10 513423 5533470 NAD 27 21 outcrop grab quartz Quartz vein within orange rusty granitic gneiss ~1 metre wide at widest point. Vein is widest toward 350⁰ and pinched off towards 170⁰. When broken, fresh surface of quartz vein has a minor light green surface stain appearance? Abundant smokey quartz crystals and possible fluorite crystals and garnet inclusions within vein.

4226 17550M 28‐Jul‐10 513319 5533401 NAD 27 21 outcrop grab quartz    Quartz on contact with granite.4227 17550M 28‐Jul‐10 513434 5533491 NAD 27 21 outcrop grab granite Granite with trace pyrite.4228 17550M 28‐Jul‐10 513479 5533489 NAD 27 21 outcrop grab granite4912 17550M 28‐Jul‐10 513291 5533344 NAD 27 21 outcrop grab gneiss Outcrop of quartzofeldspathic biotite gneiss locally 

with large (up to 1 metre) augens. Locally whitish talc like alteration and rusty at surface with possible disseminated pyrite.

4913 17550M 28‐Jul‐10 513291 5533344 NAD 27 21 outcrop grab gneiss SA

4914 17550M 28‐Jul‐10 513142 5532941 NAD 27 21 outcrop grab gneiss Bluish gneiss.

2010 Rock Samples 5

Altius Resources Inc. ….A2

APPENDIX 2. Analytical Certificates

Au Fire Assay/ICP Geochemistry CertificateClient: Altius Resources Inc.Geologist: Jackie O'Driscoll Eastern Analytical LimitedProject: WB P.O. Box 187Sample: Rock Little Bay Road Signed by:______________________

Springdale, NLDskFile: 378-E1011232 A0J 1T0 (Concentrations in assay range

may cause interferences in DateIn: August 04, 2010 Phone: 709-673-3909 associated elements.)DateOut: August 16, 2010 Fax: 709-673-3408

Email:easternanalytical@nf.aibn.com----------------------------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------Sample Au Ce Sr Ba Fe P Hg Mg As V Na Mo Al Be Ca Zn Cu Sb Ag Pb Bi Ti Cd Co Ni W La K Mn Sn CrNumber ppb ppm ppm ppm % % ppm % ppm ppm % ppm % ppm % ppm ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm % ppm ppm ppm----------------------------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------4912 5 116 42 72 5.62 0.02 1 0.80 72 22 0.13 2 1.63 1.1 0.86 96 74 5 0.2 14 5 0.01 0.8 25 57 10 23 0.47 330 20 684913 5 75 26 114 3.59 0.01 1 0.75 6 40 0.15 5 1.42 0.5 0.46 65 26 5 0.2 7 2 0.01 0.5 15 30 10 12 0.69 330 20 1754914 5 29 17 32 0.56 0.01 1 0.16 5 9 0.16 1 0.51 0.5 0.23 16 11 5 0.2 3 2 0.02 0.5 2 6 10 10 0.18 57 20 1014915 5 122 122 41 2.13 0.13 1 0.38 5 16 0.12 4 1.02 0.5 0.97 44 3 5 0.2 2 3 0.05 0.5 4 6 10 12 0.25 345 20 1324916 5 152 22 221 3.79 0.25 1 1.49 5 47 0.18 1 2.00 0.5 1.10 77 1 5 0.2 2 3 0.09 0.5 18 20 10 16 0.90 618 20 534917 5 62 12 44 1.72 0.01 1 0.28 5 12 0.21 4 0.90 0.5 0.53 30 7 5 0.2 5 2 0.02 0.5 5 10 10 10 0.36 187 20 1324918 5 10 1 10 0.41 0.01 1 0.03 5 11 0.11 1 0.07 0.5 0.03 10 3 5 0.2 2 2 0.01 0.5 1 4 10 10 0.01 25 20 2474919 23 10 1 10 0.50 0.01 1 0.01 5 2 0.08 10 0.04 0.5 0.01 7 11 5 0.2 2 2 0.01 0.5 1 6 10 10 0.01 26 20 3034920 5 12 8 70 2.08 0.01 1 0.75 5 49 0.14 2 1.32 0.5 0.08 50 5 5 0.2 5 3 0.01 0.5 3 7 10 10 0.80 72 20 1854921 5 10 7 49 1.51 0.01 1 0.43 5 22 0.13 6 0.87 0.5 0.03 33 6 5 0.2 4 2 0.01 0.5 2 6 10 10 0.49 35 20 1934922 5 93 13 38 3.34 0.31 1 0.74 5 81 0.13 4 0.98 0.5 1.05 45 86 5 0.2 2 3 0.01 0.5 13 31 10 10 0.61 135 20 1454923 5 62 14 81 2.57 0.08 1 0.82 5 39 0.17 57 1.08 0.5 0.39 26 35 5 0.2 2 2 0.05 0.5 4 10 10 10 0.58 103 20 1434924 5 22 24 38 0.42 0.02 1 0.17 5 7 0.17 1 0.37 0.5 0.19 12 3 5 0.2 4 2 0.01 0.5 2 6 10 10 0.12 58 20 1314925 5 84 7 13 0.81 0.02 1 0.12 5 4 0.14 4 0.41 0.5 0.13 16 9 5 0.2 3 2 0.03 0.5 2 4 10 14 0.22 78 20 1494926 5 23 14 22 0.36 0.01 1 0.07 5 6 0.16 1 0.29 0.5 0.14 8 2 5 0.2 6 2 0.02 0.5 1 3 10 10 0.10 39 20 1414927 5 21 8 83 2.17 0.01 1 1.17 5 67 0.16 6 1.70 0.5 0.08 52 22 5 0.2 2 2 0.01 0.5 4 10 10 10 0.84 72 20 2094928 5 129 114 85 1.59 0.12 1 0.32 5 18 0.12 3 0.92 0.5 1.20 35 3 5 0.2 2 2 0.04 0.5 4 5 10 11 0.21 216 20 1574929 5 10 4 10 0.77 0.01 1 0.02 5 5 0.13 9 0.08 0.5 0.05 8 7 5 0.2 2 2 0.01 0.5 1 7 10 10 0.02 36 20 3324930 5 10 3 10 0.76 0.01 1 0.05 5 17 0.11 1 0.09 0.5 0.09 7 13 5 0.2 2 2 0.01 0.5 1 6 10 10 0.03 33 20 2414931 5 134 41 10 3.11 0.01 1 >5.50 498 9 0.11 1 0.15 0.5 1.96 12 1 5 0.2 2 6 0.01 0.5 50 914 10 10 0.01 516 20 5694932 5 58 22 10 4.47 0.01 1 >5.50 1057 9 0.09 1 0.04 0.5 0.79 20 1 5 0.3 3 6 0.01 0.5 73 1500 10 10 0.01 734 20 2074933 5 128 74 20 2.50 0.01 1 >5.50 478 7 0.12 1 0.07 0.5 1.85 27 11 5 0.2 5 4 0.01 0.5 35 508 10 10 0.01 485 20 2554934 775 76 34 10 3.86 0.01 1 >5.50 430 8 0.15 1 0.06 0.5 1.08 18 1 5 0.3 4 6 0.01 0.5 62 1089 10 10 0.01 714 20 2084935 5 79 6 24 2.67 0.01 1 0.44 8 17 0.17 91 0.96 0.5 0.06 157 104 5 0.7 193 2 0.01 1.0 9 18 10 10 0.17 219 20 1024936 5 25 2 10 0.81 0.01 1 0.10 5 1 0.20 1 0.31 0.5 0.04 14 3 5 0.2 6 2 0.01 0.5 1 10 10 10 0.13 53 20 1524937 5 19 6 140 4.89 0.01 1 1.59 5 119 0.15 1 2.66 0.5 0.03 55 15 5 0.2 2 2 0.08 0.5 11 22 10 10 >1.10 339 20 1144939 5 88 10 86 1.60 0.08 1 0.55 5 52 0.21 1 0.82 0.5 1.07 24 82 5 0.2 2 2 0.04 0.5 8 11 10 10 0.21 183 20 284940 5 22 5 22 0.89 0.01 1 0.19 5 7 0.18 1 0.52 0.5 0.11 13 1 5 0.2 4 2 0.01 0.5 3 5 10 10 0.21 102 20 1204941 5 101 12 276 6.51 0.07 1 2.18 5 141 0.12 1 3.01 0.5 0.73 186 18 5 0.2 2 3 0.34 0.5 26 32 10 10 >1.10 855 20 854942 5 196 35 20 5.73 0.08 1 3.28 5 187 0.18 1 2.97 0.5 2.55 92 54 5 0.2 2 4 0.01 0.5 35 24 10 10 0.01 1108 20 524943 5 64 6 10 2.57 0.03 1 1.00 5 37 0.16 1 1.12 0.5 0.66 31 235 5 0.2 2 2 0.02 0.5 10 5 10 10 0.01 382 20 414944 5 77 22 76 4.25 0.07 1 0.71 11 12 0.16 1 1.93 0.5 0.25 82 21 5 0.2 18 6 0.01 0.5 9 33 10 10 0.26 476 20 743768 5 32 6 18 0.70 0.02 1 0.23 5 7 0.12 1 0.40 0.5 0.29 24 1 5 0.2 3 2 0.01 0.5 2 3 10 10 0.16 79 20 813769 5 110 199 10 0.01 0.01 1 0.22 5 1 0.16 1 0.05 0.5 >5.50 17 1 5 0.2 2 2 0.01 0.5 1 1 10 10 0.01 107 20 203771 5 120 4 16 0.51 0.01 1 0.01 5 1 0.16 1 0.10 0.5 0.34 1 2 5 0.2 3 2 0.01 0.5 1 3 10 17 0.08 66 20 1742691 5 52 19 154 4.95 0.02 1 0.71 5 50 0.20 1 1.42 0.5 0.12 53 9 5 0.2 12 2 0.11 0.5 2 9 10 10 0.96 196 20 1212692 10 30 3 10 0.60 0.01 1 0.02 5 1 0.18 34 0.08 0.5 0.05 7 4 5 0.2 5 2 0.01 0.5 1 4 10 10 0.01 34 20 2392693 5 11 1 10 0.27 0.01 1 0.01 5 1 0.12 2 0.04 0.5 0.03 4 2 5 0.2 2 2 0.01 0.5 1 4 10 10 0.01 25 20 2172694 5 144 31 312 3.68 0.24 1 0.88 5 41 0.18 1 1.55 0.6 0.85 149 1 5 0.2 3 4 0.05 0.6 13 9 10 27 >1.10 351 20 642695 5 143 23 61 0.76 0.03 1 0.12 5 6 0.17 2 0.44 0.5 0.24 15 1 5 0.2 5 2 0.04 0.5 3 3 10 42 0.10 104 20 1302696 5 144 17 16 2.97 0.09 1 1.98 5 55 0.19 1 1.88 0.5 1.19 80 43 5 0.2 2 2 0.14 0.5 26 44 10 10 0.07 482 20 762697 5 10 4 16 0.66 0.01 1 0.10 5 4 0.12 1 0.22 0.5 0.05 14 1 5 0.2 2 2 0.01 0.5 1 4 10 10 0.03 94 20 2152698 5 64 7 256 3.53 0.02 1 1.02 5 51 0.17 6 1.65 0.5 0.15 60 103 5 0.2 2 2 0.15 0.5 12 28 10 10 >1.10 216 20 992699 5 97 13 173 2.86 0.11 1 0.51 5 21 0.17 1 1.31 0.5 0.53 90 1 5 0.2 3 3 0.12 0.5 7 6 10 13 1.07 454 20 1122700 5 26 6 56 3.09 0.01 1 0.57 5 52 0.13 3 0.99 0.5 0.03 31 43 5 0.2 8 2 0.01 0.5 9 19 10 10 0.66 56 20 1114226 5 39 4 10 0.71 0.01 1 0.12 5 6 0.15 2 0.22 0.5 0.03 9 8 5 0.2 4 2 0.01 0.5 1 5 10 10 0.05 57 20 2544227 5 36 8 56 3.38 0.01 1 0.90 5 33 0.12 4 1.31 0.5 0.10 181 77 5 0.2 13 2 0.07 0.7 17 35 10 10 0.52 153 20 844228 5 33 14 182 2.94 0.01 1 0.78 5 54 0.18 2 1.24 0.5 0.14 50 43 5 0.2 3 2 0.09 0.5 5 13 10 10 0.69 173 20 1474229 5 103 10 121 3.25 0.11 1 0.87 5 112 0.19 1 1.26 0.5 0.99 53 208 5 0.2 2 2 0.07 0.5 18 19 10 10 0.36 313 20 304230 41 10 1 10 0.72 0.01 1 0.06 5 2 0.10 1 0.06 0.5 0.01 9 2116 5 12.3 3 2 0.01 0.5 1 4 10 10 0.01 24 20 2024231 17 10 2 10 1.47 0.01 1 0.04 5 11 0.11 1 0.11 0.5 0.04 11 2098 5 2.0 2 2 0.01 0.5 2 5 10 10 0.01 24 20 153

Au Fire Assay/ICP Geochemistry CertificateClient: Altius Resources Inc.Geologist: Jackie O'Driscoll Eastern Analytical LimitedProject: WB P.O. Box 187Sample: Rock Little Bay Road Signed by:______________________

Springdale, NLDskFile: 378-E1011232 A0J 1T0 (Concentrations in assay range

may cause interferences in DateIn: August 04, 2010 Phone: 709-673-3909 associated elements.)DateOut: August 16, 2010 Fax: 709-673-3408

Email:easternanalytical@nf.aibn.com----------------------------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------Sample Au Ce Sr Ba Fe P Hg Mg As V Na Mo Al Be Ca Zn Cu Sb Ag Pb Bi Ti Cd Co Ni W La K Mn Sn CrNumber ppb ppm ppm ppm % % ppm % ppm ppm % ppm % ppm % ppm ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm % ppm ppm ppm----------------------------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------4232 5 10 1 10 0.61 0.01 1 0.02 5 4 0.15 1 0.06 0.5 0.01 5 84 5 0.2 2 2 0.01 0.5 1 5 10 10 0.01 31 20 3044233 5 90 10 77 2.24 0.08 1 0.66 5 76 0.18 1 1.02 0.5 1.08 31 126 5 0.2 2 2 0.05 0.5 11 13 10 10 0.23 215 20 294234 5 27 3 33 1.78 0.02 1 0.61 5 36 0.14 1 0.80 0.5 0.18 51 5 5 0.2 2 2 0.11 0.5 8 12 10 10 0.68 261 20 2814235 5 11 9 47 4.80 0.01 1 1.40 5 55 0.12 4 2.04 0.5 0.06 135 62 5 0.2 5 5 0.02 0.6 17 35 10 10 0.91 209 20 1584236 5 77 15 34 1.78 0.04 1 0.23 13 4 0.12 1 0.44 0.5 0.83 19 9 5 0.2 17 3 0.01 0.5 5 14 10 10 0.04 1549 20 1754237 5 22 8 14 1.82 0.02 1 0.26 6 9 0.14 1 0.70 0.5 0.06 31 4 5 0.2 15 3 0.01 0.5 4 14 10 10 0.04 323 20 1354239 5 35 5 12 3.27 0.05 1 0.20 13 16 0.14 5 0.68 0.5 0.11 521 171 5 0.2 161 3 0.01 2.9 17 37 10 10 0.22 52 20 50

Assay CertificateClient: Altius Resources Inc.Geologist: Jackie O'Driscoll Eastern Analytical LimitedProject: WB P.O. Box 187Sample: Rock

Springdale, NLDskFile: 378-E1011294 A0J 1T0

Signed by:______________________DateIn: August 04, 2010 Phone: 709-673-3909 Graham SmithDateOut: August 13, 2010 Fax: 709-673-3408

Email:easternanalytical@nf.aibn.com------------------------ ------------------- -------------- -------------- -------------- -------------- -------------- --------------------------------------------------------------------------------------------------------------------------------SAMPLE Ni AgNUMBER % g/t------------------------ ------------------- -------------- -------------- -------------- -------------- -------------- --------------------------------------------------------------------------------------------------------------------------------4932 0.15 ---4230 --- 12.3

LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL

512,500 mE510,000 mE 515,000 mE502,500 mE 505,000 mE 507,500 mE5,

522,

500

mN

5,52

5,00

0 m

N5,

527,

500

mN

5,53

2,50

0 m

N5,

530,

000

mN

21

kilometres0

4,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,2334,233

4,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,2324,232

4,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,2344,234

4,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,9264,926

4,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,9244,924

4,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,9414,941

4,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,9254,925

4,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,2314,231

4,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,9224,922

4,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,9234,923

4,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,9404,940

2,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,6972,697

4,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,9174,917

4,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,9394,939

4,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,9154,915

2,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,6952,695

2,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,6942,694

2,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,6962,696

4,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,9164,916

4,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,9214,921

4,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,9274,927

4,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,9284,928

4,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,9354,935

4,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,9364,936

4,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,9374,937

4,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,2294,229

4,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,9184,918

4,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,9194,919

2,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,6992,699

2,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,6982,698

4,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,2304,230

4,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,9204,920

3,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,7683,768

2,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,7002,700

4,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,9124,912

2,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6912,6914,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,9134,913

4,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2264,2262,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,6922,692

4,2274,2274,2274,2274,2274,2274,2274,2274,2274,2274,2274,2274,2274,227