assaying report of sampling of bateman lake property

REPORT

Of

SAMPLING of BATEMAN LAKE PROPERTY, DISTRICT of THUNDER BAY,

NORTHWESTERN ONTARIO

DENARII RESOURCES INC.

Client Number 410089 N.T.S. 52A5

Garry Clark, P.Geo September 2011

Table of Contents

INTRODUCTION ............................................................................................................. 1

LOCATION, PROPERTY & ACCESS ............................................................................. 1

HISTORICAL WORK ....................................................................................................... 2

LOCAL & REGIONAL GEOLOGY ................................................................................... 3

2011 SAMPLING PROGRAM ......................................................................................... 3

CONCLUSIONS & RECOMMENDATIONS .................................................................... 3

REFERENCES ................................................................................................................ 4

Appendices

Appendix I: Sketches Appendix II: Assay Certificates Appendix III: Location Map

Denarii Resources Inc. Bateman Lake Property

September 2011 1 Clark Expl. Consulting Inc.

INTRODUCTION

The Bateman Property straddles the boundary of Horne and Conmee Townships, approximately 35 kilometers west of Thunder Bay, Ontario. The main exploration targets of the program are the gold bearing hematite stained polymictic conglomerate and ultramafic intrusives and komatiitic basalts carrying anomalous nickel values. The property is situated on the eastern end of the Shebandowan Greenstone Belt where historically, the primary targets have been gold in shear zones and large disseminated deposition in Timiskaming sediments. Sampling was completed by Clark Exploration to assess the gold values in two previously completed trenches. CLAIM STATUS

Township/Area Claim

Number Recording Date Claim Due Date Status Units Area (Ha)

ADRIAN 4249683 2010-Feb-08 2012-Feb-08 A 16 256

ADRIAN 4249685 2010-Feb-08 2012-Feb-08 A 16 256

ADRIAN 4249687 2010-Feb-08 2012-Feb-08 A 2 32

CONMEE 4208734 2006-Mar-03 2012-Mar-03 A 6 96

CONMEE 4208735 2006-Mar-03 2012-Mar-03 A 2 32

CONMEE 4229146 2008-Apr-16 2014-Apr-16 A 4 64

CONMEE 4245110 2008-Sep-08 2012-Sep-08 A 4 64

HORNE 4208733 2006-Mar-03 2012-Mar-03 A 8 128

HORNE 4211649 2006-Sep-07 2012-Sep-07 A 16 256

CONMEE 4247809 2009-Nov-24 2011-Nov-24 A 8 128

CONMEE 4246401 2009-Feb-23 2011-Oct-03 A 8 128

HORNE 4221354 2008-Mar-04 2012-Mar-04 A 8 128

HORNE 4221355 2008-Mar-04 2012-Mar-04 A 4 64

HORNE 4230002 2008-May-05 2012-May-05 A 8 128

CONMEE 4230003 2008-May-05 2012-May-05 A 6 96

ADRIAN 4249684 2010-Feb-08 2012-Feb-08 A 16 256

ADRIAN 4249686 2010-Feb-08 2012-Feb-08 A 4 64

TOTAL 17 136 2176 LOCATION, PROPERTY & ACCESS The property is accessed from Kakabeka Falls along highway 11/17 west 9.5 kilometers to Mokoman Road. Take Mokoman Road south 5.0 kilometers to Tienhaara Road at the



power line then west along this unmaintained gravel road west for 6 kilometers to the eastern boundary of the property. The Bateman Lake area has been previously logged and second growth is well established causing difficulty traversing the property. Old grown-in logging roads have been partially cleaned to obtain better access. A 4x4 truck can be used to access the main road past Bateman Lake into Horne Township and using a quadrunner to follow old roads can access most of the rest of the property. The forest is mixed vegetation with poplar, birch and spruce with abundant heavy alders. Topography is high rolling hills with relief of approximately 100 meters. Steep cliffs are found around Gold Lake and Thunder Lake on the south boundary of the property. HISTORICAL WORK 1924: Tanton, T.L., Ontario Dept. of Mines, mapped Conmee Twp. 1939: Acorn Mining Syndicate; geological & geophysical surveys, diamond drill holes

around Thunder and gold Lakes 1967: International Nickel Co. of Canada; 2 diamond drill holes ( 988 feet ) 1969: Acorn Mining Syndicate 1990: Carter, M.W.; Ontario Geological Survey, regional mapping survey 1990: Ontario Geological Survey; Airborne Electromagnetic Survey 1994: Kwiatkowski, R. and Kukkee,E.; OPAP prospecting program (gold discovered on

northwest shore of Bateman L.) 1995: Hemlo Gold (optioned part of property); geophysics, geology & geochemical

survey; ddh’s (154.8m.) 1996: Avalon Ventures/Bema Gold (optioned part of property); data compilation, line-

cutting; ground magnetometer survey, I.P. survey, soil geochemistry survey, prospecting, geological mapping and diamond drill holes (300m.)

2002-2003: Valgold Resources (optioned part of property); prospecting and geological

mapping. 2006: Kwiatkowski, R.; prospecting 2008: Linear Metals Corp. completed prospecting, trenching and sampling of the nickel,

cobalt mineralization located on the property.



LOCAL & REGIONAL GEOLOGY The Bateman Property is located at the east end of the Shebandowan Greenstone Belt of the Abitibi Subprovince. It is known as the Matawin Gold Belt. The greenstone belt comprises of late Archean rocks of the Keewatin-type sequence of the Greenwater Assemblage. These rocks include subalkalic to alkali metavolcanics with interlayered metasediments, granitic to dioritic intrusive rocks, gabbroic to ultramafic intrusive rocks and Timiskaming-type clastic sediments and metavolcanics. Late stage diabase and lamprophyre intrusive rocks are archean to protozoic in age. The belt strikes to the northwest with a near vertical dip to the northeast. The regional grade of metamorphism is lower greenschist facies with lower grade amphibole facies proximal to intrusions. The property is underlain in the north by Timiskaming clastic sediments intercalated with ultramafic to felsic metavolcanics. Ultramafics show some spinifex texture and are locally serpentinized and pillowed. Ultramafic (peridotite) to gabbroic intrusives intrude into southern portions of the property and are related to magnetic highs. A northwest trending fault called the Thunder Lake Fault displaces the Keewatin basement assemblage. 2011 SAMPLING PROGRAM Ray Kiovisto and Shawna Cross completed a two day sampling program to assess previously identified gold mineralization. The work was carried out over July 28th and 29th, 2011. They relocated Hemlo Gold created trenches 5 + 6 completed a brushing job then chip sampled the edges of previously cut channel samples. The intent was to verify the the gold values within the hematite stained polymictic conglomerate. A total of 22 samples were taken and are illustrated in Appendix I and III. The assay results are presented in Appendix III. CONCLUSIONS & RECOMMENDATIONS

The sampling program succeeded in verifying the gold content of the hematite altered conglomerate. Assay values were not as high as Hemlo Gold reported but there was a consistent strongly anomalous trend across the hematite altered conglomeratic units sampled (Appendix I and III). The highest sample from this program was 720 ppb gold over 90 cm which roughly corresponded to the Hemlo gold sample .1382 E which assayed 474 ppb gold. Further prospecting of the conglomerate unit is required to define other areas to trench and potentially diamond drill.



REFERENCES Carter, M.W. 1990: Geology of Forbes and Conmee Townships; Ontario Geological

Survey, Open File Report 5726, 188p. Carter, M.W. 1990: Geology of Goldie and Horne Townships; Ontario Geological

Survey, Open File Report 5720, 189p. MacLean, D., 2008: Report on Soil Geochemistry, Prospecting & Trenching, Bateman

Lake Property, Districyt of Thunder Bay, Northwestern Ontario, Linear Metals Corporation

Map P.2990: Forbes and Conmee Townships Area (North Half), Geological Series-

Preliminary Map, Ontario Geological Survey, 1986. Map P.2856: Horne Township, Geological Series – Preliminary Map, Ontario

Geological Survey, 1985. William, H.R. et al., 1991: Wawa Subprovince; in geology of Ontario, Ontario

Geological Survey, Special Volume 4, Part 1. pp.512-518. Tims, Andrew, 1995: Annual Work Report for the Conmee-Kwiatkwoski Option,

Conmee & Horne Twps., Thunder Bay Mining District NTS 52 A/5 Morgan, Jeff & Campbell, Ian,1998: Bateman Lake Property, Phase 1 Exploration

Program, Summary Report, Horne & Conmee Twps., Ontario Thunder Bay Mining Division.

APPENDIX I: Sketches

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96 +35E + 98+00N

Generall y Mo.ssive throughout Tr py + py coo. ting of frac. Locall y exhibits a polished sur race r ef"''inicent of silifico. tion.

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APPENDIX II: Assay Certificates

Wednesday, August 31, 2011Certificate of Analysis

Clark Consulting1000 Alloy Dr.Thunder Bay, ON, CANP7A6G5Ph#: (807) 622-3284Fax#: (807) 622-4156Email: [email protected]

Date Received: 08/10/2011

Date Completed: 08/31/2011

Job #: 201142953

Reference:

Sample #: 22

Acc # Client ID Auppb

Ptppb

Pdppb

Rhppb

Agppm

Asppm

Coppm

Cuppm

Feppm

Moppm

Nippm

Pbppm

Znppm

196771 157913 373 <1

196772 157914 123 <1

196773 157915 720 <1

196774 157916 70 1.63

196775 157917 195 1.12

196776 157918 69 1.04

196777 157919 <5 <1

196778 157920 9 <1

196779 157921 110 1.44

196780 157922 123 1.56

196781Dup 157922 139 1.58

196782 157923 211 1.74

196783 157924 176 1.70

196784 157925 264 1.57

196785 157926 272 1.55

196786 157927 188 1.35

196787 157928 379 1.78

196788 157929 316 1.56

196789 157930 171 1.22

196790 157931 291 1.43

196791 157932 296 1.65

196792Dup 157932 266 1.79

196793 157933 347 1.45

196794 157934 285 1.49

PROCEDURE CODES: ALP1, ALFA1, ALAgAR1

Certified By: The results included on this report relate only to the items tested The Certificate of Analysis should not be reproduced except in full, without the written approval of the laboratory

AL917-0049-08/31/2011 12:49 PMPage 1 of 1

APPENDIX III: Location Map

!(!(

!(

!(

!(

NAD 83 UTM Zone 16

Denarii Resources - Bateman Property Trench and Sample Locations

157920 157919

Trench 6

Trench 5

End of Trench 5

4246401

4229146

4208734

4245110

296200

296200

296400

296400

296600

296600

296800

296800

297000

297000

297200

297200

297400

297400

297600

297600

5376

200

5376

200

5376

400

5376

400

5376

600

5376

600

5376

800

5376

800

5377

000

5377

000

5377

200

5377

200

¤0 200 400100

Meters

!( Sample Location!( Trench Location

Property Boundary

Mining Claim

1 : 100,000

Inset Map

1 : 5,000

assaying report of sampling of bateman lake property

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