Assessment Report onAirborne Geophysical Surveyflown by Terraquest LTD.

SHINING TREE PROJECT

TownshipsAsquithChurchillMacmurchyDistrict of SudburyLarder Lake Mining DivisionNTS 41P/11

01/09/09

INTRODUCTION The Shining Tree property is located in the prolific Archean-age Abitibi Greenstone Belt which hosts many significant gold deposits and past producers of the Destor - Porcupine and Larder Lake – Cadillac trends in Ontario and Quebec (Figures 1 and 2). World-class volcanogenic massive sulphide deposits have also been discovered and mined over the last ninety years. The Shining Tree area has been the focus of gold exploration since the early 1900’s. The property comprises a consolidation of 44 contiguous claims held by Robert Macgregor of Skead Holdings Ltd., totalling 133 claim units covering an area of 2,128 ha (5,320 acres) within the Larder Lake Mining Division, Ontario. The claims are held under option from Skead Holdings wherein Platinex has the right through payments and expenditures on work to earn a 100% undivided interest subject to a royalty interest. Infrastructure is excellent with power, rail and all weather paved roads in close proximity to the property. Highway 560, midway between Sudbury and Timmins, bisects the property. Logging operations are active in the area, providing secondary access via haul roads, skidder roads and trails. The property is underlain by an Early Precambrian assemblage of WNW trending, steeply dipping felsic to mafic and ultramafic metavolcanic rocks as well as metasedimentary rocks and alkali metavolcanic rocks of Timiskaming age. These rocks are intruded by pre-orogenic feldspar porphyries and hypabyssal diabase dikes and sills of Nipissing Age. The Timiskaming-aged metasedimentary rocks are believed to have accumulated in a regional rift. Later south to north compressive faulting along the axis of this rift is proposed, but has not been documented in the Shining Tree area. Major NNW sinistral wrench faults, including the Michiwakenda Lake Fault which crosses the Shining Tree property, are regional in scale. Related subsidiary parallel shears and possible splays carry significant gold mineralization on the Shining Tree property. Bedrock exposures are limited on the property which is principally covered by a thin mantle of Wisconsinan till. The geological picture of the Shining Tree area in terms of mineral showings, structure and continuity of geological units is complex and unresolved on a number of levels. The importance of locating and tracing structural and geological features on a property and mining camp scale beneath overburden led to the decision to contract a multiparameter airborne geophysical survey in the Shining Tree area. The use of modern GPS and lateral gradient airborne magnetic systems at a nominal 100m line spacing and 75m flight elevation provided a significant increase in resolution of magnetic features, while the prototype VLF-EM system provided additional structural information. Radiometrics were added to the survey due to aircraft availability, and provided the possiblility of identifying potassic alteration although bedrock mapping capabilities are limited by the ubiquitous presence of lakes, swamps and ground moraine.

Report on Preliminary Evaluation of Airborne Geophysical Survey in the Shining Tree Area (Zbynek Dvorak, Ph.D., December 19, 2008) Introduction A fixed wing airborne survey was carried out by Terraquest Ltd. between July 24 and 27, 2008, over the Shining Tree area in northern Ontario, approximately 100 km northwest of Sudbury being situated in the Townships of Churchill, Macmurchy and Asquith. The survey area of irregular shape was flown along 100 m spaced flight lines oriented in the N50°E direction with tie lines spaced at 500 m in the perpendicular direction to the survey lines, for a total of 406 line-km. The survey aircraft was a fully compensated King Air 90 operated at a mean terrain clearance of 74 m. The survey equipment consisted of three Cs-2 Cesium Vapour magnetometers mounted at the wing tips and at the tail of the aircraft, an XDS VLF/EM system, and a gamma ray GRS 410 spectrometer utilizing 2048 in3 (33.56 l) downward and 512 in3 (8.39 l) upward looking crystals, as well as a suite of standard ancillary equipment. The purpose of the survey was to provide geophysical information that could be used to substantiate current geologic information and to help select exploration targets. Results of the survey were delivered in the digital form and as maps of the individual parameters at the 1:20,000 scale. Interpretation Methodology The present interpretation of the airborne geophysical data is based on the analysis of the Total Magnetic Field (TF), Calculated Vertical Magnetic Derivative (CVD), Measured Lateral Gradient (MLatG), Measured Longitudinal Gradient (MLongG), VLF Orthogonal (VLF-O), VLF Line (VLF-L), VLF Vertical (VLF-V), and radiometric Total Count (TC), Potassium (K), Uranium (U), and Thorium (TH) channels. Supplementary geologic information was obtained from materials provided by Platinex Inc. staff and Platinex consulting geologist Mr. David Jamieson. Geophysical signatures of laterally large areas are used to identify individual rock units by observing the change of the character of the individual geophysical parameters. Disruptions of magnetic, VLF, and other physical property patterns, or their lateral offsets are examined and, if warranted, interpreted as reflecting fractures of various types, such as shear zones, faults, or other zones of structural weakness. The most suitable physical property for this purpose is the magnetic field and its calculated vertical derivative CVD, particularly in conjunction with the shadowing technique. The CVD is especially suitable because it sharpens magnetic responses while eliminating or suppressing the deeper responses and, thus, improves the positioning estimate of the features of interest. Other physical properties, such as electromagnetic and/or radiometric responses are used as an additional tool in the interpretation process.

As some geologic features are not magnetic it is necessary, in such cases, to rely on other physical properties for their identification. The ability to interpret and identify targets of interest increases with the number of measuring methods used. The interpretation process starts with the analysis of magnetic data, gradually incorporating other methods and types of survey, such as electromagnetics, radiometrics or ground data. Secondary information, such as topographic features, may be used, as it may be indicative of major geologic events. In combining the results of all the surveys available with the known geology, it is possible to narrow the exploration program to only a few selected portions of the survey area. Magnetic Data The total magnetic field in the western portion of the survey area shows variations over a wide range of values, which occur both as broader zones as well as narrow linear anomalies. The latter ones are interpreted to reflect mostly swarms of diabase dykes with orientations close to N160°E to N170°E; the former ones most likely reflect mafic to ultramafic meta-intrusive Archean rocks that have been mapped to the southeast of the area. No distinct patterns are associated with the intermediate-to-felsic metavolcanic rocks as opposed to the mafic-to-intermediate metavolcanics. Magnetic patterns and particularly the CVD data in the south portion of the survey area indicate the presence of two major fractures oriented at about N110°E that may be associated with the Fawcett igneous structure mapped to the southeast of the area. The northern one of these fractures (F1) appears to mark the slight change in the dyke orientation from N160°E in the south, to N170°E in the northern portion of the area. The southern fracture (F2) is associated with a well defined magnetic anomaly M1 (extending from approximately 482300E, 5268180N toward 483060E, 5267970N) that occurs within a porphyry unit of similar strike. The triangular area A immediately north of this fracture displaying low magnetic values and elevated K values has been mapped as mafic to ultramafic meta-intrusive unit. The central part of the western portion of the survey area contains a hook-like unit M2-M3 of high magnetic values that reflects felsic metavolcanics. It is not clear whether this anomaly reflects a single unit or is composed of two separate rock units. The available geology indicates that the northern tip of this hook-like unit M2 occurs within the felsic metavolcanics. However, the tip and the southern tail could be separated by a NE-SW oriented fracture F3 (fault) the trace of which is suggested by both magnetics (particularly the MLatG data) and topography. The tail of this anomaly appears to terminate at an east-west oriented fracture (F4) extending along approximately 5270220N. The secondary (narrow and discontinuous) anomaly (M4) east of the hook-like unit parallels the major Michiwakenda Lake Fault MLF. It is believed to reflect Nipissing diabase; the adjacent well defined narrow anomaly to the east (M5) is caused by Matachewan diabase. The northern portion of the western part of the area contains two interesting magnetic anomalies. The northwest corner contains a semi-oval (to triangular) zone of high magnetics (B) that is believed to reflect clastic metasedimentary assemblage. The southern arm of this zone (anomaly M6) of WNW-ESE strike correlates loosely with an iron formation; two other iron formations further north however did not produce any magnetic response. The same may hold for another iron formation mapped further south

where a well defined magnetic anomaly (M7) occurs between approximately 483520E, 5272240N and 483090E, 5272950N (with a possible extension toward 482830E, 5273430N). While the magnetic anomaly may reflect diabase, the iron formation may be non-magnetic. Of particular interest are the magnetic anomalies associated with the Herrick gold deposit (H). The CVD data from the vicinity of the deposit shows an excellent correlation with the geologic mapping and drill data. Gold occurs in quartz and quartz carbonate veins in shear/alteration zones. The airborne data shows both the Central and West Zones as breaks of magnetic (CVD) patterns. The associated trachytic porphyry unit is shown as a well defined magnetic anomaly (M8) that extends for approximately 1250 meters further northwest from the deposit. At the east, the anomaly appears to terminate at a broader anomaly reflecting diabase rocks. An associated secondary intermittent magnetic anomaly (M4) extending further south should be noted; till sampling at around 484260E, 5271540N situated on this secondary magnetic horizon shows an attractive amount of pristine gold grains making the entire horizon a prospective exploration target. Further west, at around 483370E, 5270500N, the same till sampling survey observed a similarly attractive amount of pristine and modified gold grains. This location occurs in the vicinity of another secondary magnetic anomaly. Both locations occur close to inferred fractures. A nearly circular magnetic anomaly (M2) centered around 483400E, 5271250N is uniquely different from the rest of anomalies and should be investigated further. The most distinct magnetic feature within the narrow east arm of the area is a broad zone of high magnetics (M9) striking at approximately N125°E that reflects Keewatin andesites and basalts. The unit (as well as the previously mentioned semi-oval zone in the northwest part of the survey area) appears to terminate at a major northwest-southeasterly oriented Michiwakenda Lake Fault (MLF) that is particularly well defined by the CVD data. A gold bearing Ribble quartz vein (RQ) occurs along the west boundary of the unit. There is a possibility that the vein follows the nose of the unit further north and east. A narrow low magnetic zone occurs along the south shore of West Shining Tree Lake within the porphyry unit. Many quartz veins have been mapped here being associated with known gold occurrences. The magnetic data suggests that this low value zone may continue further west and south wrapping around the andesite/basalt unit eventually joining with the Michiwakenda Fault zone. Note that the low magnetic zone at the south shore of West Shining Tree Lake and the gold occurrences are situated on the flank of high potassium zone associated with the andesite/basalt unit. A spotty, poorly defined magnetic horizon, indicated as a series of localized magnetic highs occurs between the andesite/basaltic unit and the adjacent low magnetic zone (at 486330E, 5271660N; 486000E, 5271900N; 485550E 5272270N; and 485250E 5272720N). These anomalies of limited lateral extent should be first checked on the ground for possible man-made source. There appears to be a degree of correlation between these localized magnetic highs and the peaks of high potassium. The entire M9 unit may be a layered intrusion. The central and eastern parts of the narrow eastern arm of the survey block contain several linear magnetic anomalies that are interpreted to reflect diabase dykes. Major fault - Michiwakenda Lake Fault (MLF) - runs through the survey area at a close to north-south direction. The fault is indicated as a narrow magnetic low. It correlates well with a topographic break seen on the elevation image. Both the magnetic and topographic data indicate that near the north survey boundary the fault has an N150°E strike, which changes to N160°E near 483900E, 5274270N, and to N170°E in the area west of Ribble Vein (Ronda) Mine. In this area the Michiwakenda Fault appears to be

intersected by presumably an older fracture (F3) of a NE-SW strike as suggested by the magnetic as well as topographic data. This fracture is also observed further southwest. There appears to exist a second major fault (F5) paralleling the Michiwakenda Lake Fault from the east. It extends through the Wasapika Lake striking at approximately N160°E. Numerous magnetic and CVD pattern offsets and interruption occur throughout the survey area, which are interpreted as indicating fractures of various types, such as faults or shear zones. The strike directions of these features vary from N170°E for the major faults, to N110°E. In addition, there are numerous indications of fractures striking at, or close to, the flight line orientation. Both the OGS published data as well as various geologic maps indicate that such directions exist. We have queried whether these features could be artifacts of data processing, such as leveling problems. There appears to be no evidence of data processing problems in this respect; however, one should remember this fact when evaluating features striking parallel or sub-parallel to the flight line orientation. VLF/EM Data The VLF data was collected using a proprietary system developed by Terraquest. Unlike other VLF systems that utilize the signal from a single specific transmitter, the XDS system monitors signals from a range of frequencies, which means that a number of transmitter signals could be observed at the same time. The consequence of this approach is that when one of the transmitted signals is much stronger than the other signals, it may obliterate signals from other VLF stations resulting in a directional bias towards the stronger transmitter. This appears to be borne by the present results, as there is a pronounced bias towards the Cutler, Maine, transmitter. In general, all three VLF data sets show strong correlation with lakes, rivers, and low lying, boggy ground. Thus, there are extensive areas of VLF/EM activity that provide little useful exploration information. There are, however, several features that appear to reflect geology and correlate with other data sets, such as the northern portion of the Michiwakenda Lake Fault (MLF) on the VLF-L (In-line) data, or the south margin of the afore mentioned semi-oval magnetic unit in the northwestern portion of the survey block (B) on the VLF-L data, where the strong VLF response correlates with an iron formation (though the other two iron formations mapped further north do not show any conductive VLF response). The well defined VLF anomaly (VL1) extending from 482770E, 5273250N in the southeasterly direction toward 483800E, 5272150N and further toward the Churchill gold showing, correlates with a mapped iron formation. The well defined VLF-L anomaly in the west-central part of the area (VL2) correlates with a porphyry unit mapped along the east shore of Gosselin Lake. It extends further southeast toward the west arm of Cryderman Lake, at which location its main response is most likely due to the conductive lake bottom sediments. The well defined VLF-L response (VL3) west of Stewart Lake is interpreted to reflect porphyry that also gave rise to a narrow and well defined CVD anomaly (M1). Most of the VLF-L responses in the eastern arm of the survey area are associated with lakes. However, the anomaly east of the West Shining Tree Lake (VL4) that is centered at 485990E, 5272610N is related to a narrow CVD anomaly believed to reflect diabase dyke. The nature of other VLF-L anomalies in this east arm of the area is not clear at this time though the one centered at 488260E, 5272530N (VL5) could merit attention.

For the VLF-O (Ortho field) data, there are interesting anomalies that are not associated with lakes or swampy ground. The anomaly (VO1) associated with an iron formation northwest of the Churchill gold showing mentioned above (483690E, 5272080N) is shorter and broader than the same anomaly on the VLF-L data. The most prominent anomaly (VO2) occurs in the central part of the survey area and strikes in a N70°E direction. It is a broad response extending for approximately 2100 m from 482700E, 5271120N toward 484650E, 5271780N where it terminates at the Michiwakenda Lake Fault. It does not appear to be related to topography and as such is believed to reflect geology. Its western part correlates with a nearly circular magnetic anomaly (M2) centered around 483400E, 5271250N. Further east, however, it transects several narrow magnetic anomalies, which may diminish the attractiveness of this conductive feature. However, there is little to explain this anomalous feature at this moment. Anomalies in the southern portion of the area are generally associated with lakes and as such are believed to have little exploration value. The only exception could be the east-west striking broad zone (VO3) north of Moorcamp and Macdonald Lakes. A distinct, roughly circular broad response (VO4) centered at 485600E, 5272350N occurs on the flank of the previously mentioned andesite/basaltic unit in the east arm of the area showing close correlation with a zone of elevated potassium. The VLF-V (Vertical Field) data shows nearly identical patterns as the VLF-L data. There appears little new information in this data set. In general, the VLF/EM data does not appear to provide much additional information though it shows general support for the fractures inferred from the magnetic data. Gamma Ray Spectrometry The terrain in the survey area is slightly undulating with relatively numerous lakes and marshes. Consequently, there are many localized areas of low or no radiometric signal over the lakes resulting in the individual radiometric parameters (Total Count, Thorium, Uranium, Potassium) displaying patchy character. In addition, higher radiometric signals appear to be related to elevated ground. (Incomplete altitude compensation could be the cause but given the experience of the contractor this is not likely.) This is most dramatically illustrated by comparing the Total Count (TC) with the digital elevation model that shows a good degree of correlation in the northwest and central parts of the survey area. In fact, the similar elevation dependence could be seen on all the radiometric maps. Apart from these high count areas associated possibly with higher ground elevation there are other higher responses that appear to be due to geology. For example, the easternmost part of the area that is covered by glaciofluvial outwash deposits and ice-contact stratified drift shows high signals on all the spectrometric parameters. High thorium and potassium values were also recorded over the andesitic/basaltic unit in the west part of the eastern arm of the survey area (M9) east and southeast of the Ribble Vein (Ronda) Mine. Gold, which is the main exploration target in the Shining Tree Area, occurs in association with quartz veins in felsic rocks. It is for this reason that zones of elevated potassium signal are of special interest in the exploration program. Certain cases of elevated potassium signal have been discussed earlier, e.g., the northeast flank of the andesitic/basaltic unit mentioned above and the localized zone in the vicinity on the Ribble Vein (Ronda) Mine (RK1 to RK4). The southwestern portion of the area contains a semicircular zone of elevated potassium signal (RK5). Its eastern margin extends from the southwest corner of the area (480300E, 5268600N) to between Eplett and Chlorus Lakes, east of Gosselin Lake towards Jepson

Lake. Without the effect of Gosselin, Eplett, and Speed Lakes (where the potassium response is close to zero) the zone would have been quite continuous. Its geologic nature is not clear though some data suggests that the area is underlain by intermediate to felsic meta-porphyry intrusive unit. Due to its patchy nature the radiometric data does not land itself well for structural analysis. It is difficult to say whether or not there is a general support for fractures inferred from the magnetic, and partly the VLF-EM data.

CONCLUSIONS AND RECOMMENDATIONS The survey results have provided a useful tool for ongoing geological and structural interpretations. The detailed nature of the data (100m line spacing, 70m flight elevation, measured lateral magnetic gradient) provides a substitute for extensive ground geophysical surveys, other than high priority areas of the property. Mineral occurrences on the property occur in what appear to be a variety of geological and structural environments. The survey results provide additional context for developing exploration models that explain the density of gold showings in this area. Regionally, there may be a cryptic structural/geological control on the cluster of gold occurrences in the Shining Tree area that can be revealed through interpretation of multi-parameter geophysical data. It is recommended that ongoing compilation of exploration data and development of exploration models take current geophysical survey results, as well as soon to released regional data for the Shining Tree area (Discover Abitibi – High Resolution Magnetics – Timmins-Kirkland Lake Area).

GENERAL LOCATION MAPDrawn by: MS Checked by: JGB S c a l e : 1 : 9 0 0 0 0 0 0Date: July 2008 I.D.: STloc9M080725 FIGURE 1

B A YH U D S O N

U N I T E D S T A T E S

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SHINING TREE PROPERTY

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Fort Hope

Armstrong NakinaHearst

Toronto

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Sault Ste. Marie

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Source: National Topographic Data Base - GeoGratis, April 2007 OGS MRD 126, 2005 Environmental Systems Reasearch Institure Inc. (ESRI) 2008

C A N A D A

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DETAILED LOCATION MAPDrawn by: MS Checked by: JGB S c a l e : 1 : 5 0 0 0 0Date: June 2008 I.D.: STloc50k080624 FIGURE 2

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M i c h i w a k e n d a L a k e

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on t r e a l R i v e r

B o b L a k e

K n o x L a k e

S p e e d L a k e

C l a r k L a k e

R i b b l e L a k e

E p l e t t L a k e

B e i l b y L a k e

P e r k i n s L a k e

C h l o r u s L a k e

C a s w e l l L a k e

W a s a p i k a L a k e

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J e f f e r s o n L a k e

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C H U R C H I L L M A C M U R C H Y

A S Q U I T H F A W C E T TShining Tree

Shining Tree Project

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560

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Shining Tree Property

100 Km

NTS 41P11

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£¤101

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SymbolShining Tree Propertytownshipsbridgeprimary roadsbush roads and former roads

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QUEBÉCQUEBÉCONTARIOONTARIO

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VL1

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VL2

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RK5

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M8

M6

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F3

M1

480000

480000

481000

481000

482000

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483000

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CHURCHILL TOWNSHIP MACMURCHY TOWNSHIPFAWCETT TOWNSHIPASQUITH TOWNSHIP

MLF

RQ Ontario,Canada

Legend

VO1 - VO4 VLF-EM ortho anomaliesPrimary RoadsTownship BoundaryShining Tree Property

Faults or fractures interpreted from magnetic pattern

Dykes

Radiometric (potassium) anomalies

VL1 - VL5 VLF-EM line anomalies

M1 - M9 Magnetic anomalies (calculated first derivative)

A Magnetic low outline of intrusiveB Triangular magnetic high areaH Herrick Vein areaRQ Ribble Quartz Vein

MLF - Michiwakenda Lake Fault

SOURCES OF INFORMATIONHigh Resolution Tri-Sensor Magnetic, XDS VLF-EM & Radiometric Airborne Survey flown by Terraquest LTD., July 2008Topography obtained from 1: 10 000 scale OBM data, Ontario Ministry of Natural Resources, with modification done by M. SalmanCredit:Geophysical Interpretation by Z. Dvorak, Independent Geophysical Consultant.Cartographic production by M. Salman

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SudburyNorth BayElliot Lake

Shining Tree PropertyShining Tree £¤

560

QUEBÉCQUEBÉCONTARIOONTARIO

£¤101

£¤144

£¤17

100 Km

Shining Tree ProjectINTERPRETATION OF GEOPHYSICAL SURVEYRESULTS

Date:12/29/08Reference Number: STAGSinterp20k122908

NAD83 UTM Zone 17NTS 41P/11

0 500 1,000 1,500 2,000Metres

Scale: 1 : 20 000

SURVEY SPECIFICATIONS

Survey Fio.vn: 25 July - 28 JLJy, 2008 Survey Type: Fixed Wir>;j Hc

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SURVEY SPECIFICATIONS

SUlVey FIoNrt 25 JIiy - 28 JIiy, 200B Sunley Type: Fixed WIIJI Haizontal Ma(J1etic Graciometry,

GaTlma Ray Spectraneter XOs/VLF EM

Suvey Opecaticns Base: SU