SEP-01-1S99 09=23 FROM WWW FLflGRESDURCr

41I15SE2003 2.19683 RATHBURN 010

Location: Rathbun twp Ont. -V " UTM 1 7T 0528382 5177889 *~'' * 1 J 978 00 -90 degrees BQ a) at the collar b) at tot 20 con 4 East Penis Tel no: 705-752-1 123

August 9th 1 999August 31st 1 999August 3 1st 1 999

Claim no: DipCore size Core stored Date hole started Date hole finished Logging completedCore logged by P.A.R. Brown Mining Geologist Bsc. A JLS.M

O Zfect CASING2 9S4 Nippissing Diabase sill

at start coarse inagnetJze/Umenite crystals. Z-3%.at 8ft a 3in pink pegmatitic phase14-2tft coarse grained with epidote H- 1 5ft and the core has aleopard skin texture.28-29ft hairline bands of epidote 70 deg to c/a. quite magnetic.30ft on finer granted with minor hypersthene46-51 ft coarse grained with chlorite alteration.66- 1 \ ft coarse grained with carb on slip at 70ft, 45 deg to c/a< 5^. magnetite.93- 1 1 2 ft pink pegmatitic whh magnetite clols and epidote at 97-97ft ,104ft, 1 1! -112ft, 117-1 19ft plus odd py specks.i 19ft fine grained with c&loriie present to 141ft,

141ft c.g pegmatitic with, latha to lin., sporadically OMkgnctic andfine specks of py,cpy.154ft SK magnetrte with po,cpy qtz rich. Random fiactnres parallelto c/a whh chlorite and py. Rounded bkbs of po,cpy witti splashesat 169ft. Continues to 290ft.290ft alternating fine/coarse phases with minor chlorite and samecarb alteration.291 ft minor mylonite with py.298ft a 3in granite injection, also W 306ft,core broken 295-320ft.320ft a pink granite section 35 deg to c/a and graphitic slips/331ft Qez gnbViro with, minor jxx/cpy

355-365ft talc chlorite veining up to 1/Kn veins 90 and 45 dog toc/a. small magnetite clots and slightly chloritic to 425. Very hardand siliceous.5 1 6.5-5 1 8ft gabbroic texture cream to pink colour, greenishchloritic areas vvfth fine cpy speeic3.e.g 538ft.556ft a IfZm qv 80 deg to c/a with po.cpy spedts.590-630 variations In grain size due to differentiation.

RECEIVED"

SEP O f |3S3

GEOSCIENCE ASSESSMENT

SEP 01 '99 12:16 PftGE.02

SEP-01-1999 09 = 23 FROM UIUIUI FLPGRESQURCES COM TO 18776701555 P.03

630ft fine grained qtz diabase. 663-664ft chlorite on slip and broken core, also becoming medium grained with a brownish tinge to core, could be due to hypersthene. 782-783ft easily visible po,cpy blebs, 839-855ft easily visible po,cpy btebs.965 brownish tinge gives way to greenish tinge due to chlorite. 865ft finer grained, pale green, no sulphide. 958-959ft a piece of silicified sediment in die gabbro, at 960 a 2in qtz/cb vein with py.cpy. 966-967ft hematite on slips with some py. to 984ft.

994 1073 Gowganda Pebblywackefine disseminated py and grades to greywacke at 990ft. many narrow qtz carb stringers 80 deg lw c/a wifii minor py C-g at 1013ft 1040-1044 core broken. 1046 IMin qtz carb vein 70 deg to c/a 1050 I /'Sin qtz carb vein. 1065 1/SJn qtz carb vein with splash of cpy,

1073 E.O.Hole

Logged by P.A.R.Brown

Abbreviations DDH BL-99-1

<leg ,...... degrees qtz ........ quartz;c/a ....... core axis ft ......... feetin ....... inch py ......... pyritecpy ........ chaloopyrite carb ......,. carbonate< ....... less than po ....... pyrrhotite

SEP 01 '99 12=16PflGE.03

SEP-01-1999 09=24 FROM WWW FLPGRESOURCES COM TO 18776701555 P. 04*rc:f . u j. o.-*-^-/ j.cj- .^ .am i r i

s i

oP

C lot*

SEP 01 '99 12=17 PAGE.04

SEP-01-1999 09:24 FROM UIUUI FLflGRESOLJRCES COM TO 18776701555 P. 05 M-UL. UKUUM murt INU. : rto o*: 11.^2 sep. ei

Location.-Ralhbun Tvvp Ontario.UT.M l TT 0528850, 5179945

Claim no. 1229453

RQCore stored: a) art the collar, b) at lot 20 con 4 East Ferris tel no: 705-752-1 T23 Date hole started : June 30th 1999 Date hole completed: July 1 6th 1 999 Logging completed : 27 August 1999. Core logged by P.A.JS, Brown. Mining Geologist, BSc. A.R.S.M

No casingO 1 4 feet Fine grained Gowganda greywacke.14 7W I .aminated Gowganda greywacke . Bedding brecciated in places

hematite on fractures 30 dcg to c/a at 16ft. Broken bedding 36-37ftnumerous wfopy qtz cart veins with amphibole and hematite.at 1 00ft a 2m. pink granitic injection wift irregular contacts.108-1 1 2 brecciated115-125 rusty red due to hematite.1 30ft a l /Sin qtz carb vein 45 deg to c/a with epidote on contacts.1 75ft good bedding 45 deg to c/9 { looks like slump teddingbefore solidification.)219-221 a granite pegmatite vein 20 dcg to c/aat 276 qtz chlorite vetoing with a few specks of cpy. On the slipspy-

299 34 5 fine grained grey to black Greywacke. V cry little evidence ofbeddiug.

345 386 Gowganda greywacke with some laminations. 386 1050 Gowganda pebblywacke with occasional contorted laminations

and a few large subrounded cobbJes and bouJders.485-505 broken core,555 tsrge angular pick granite ftagments. Core matrix is silicifiedor baked and has a high pitched ring to it when struck.679-680 pink granite cobble.660 fine laminations with some epidote 80 deg to e/a.690 a I/2JH epidote vein 30 deg to c/a. 690-690.5 core lost.709-710.5, 845-850 core lost.fine epidote vcinkts occasionally.1013 py specks in matrix and also py replacing and rimmingfragments. Some replacement over 5Wo. e.e 1019,1024,1026,1028.

105(TEnd of Hole.

Logged bvP.A.R Brown AvflWi,

(W

SEP 01 '99 12=17 PPGE.05

SEP-01-1999 09:24 FROM UMUI FLAGRESOURCES COM TO 18776701555 P. 06

Abbreviations DDK ML-99-3

deg ..,.,..,. degrees qtz ......... quartzc/a ......... core axis ft ......... fee!in ..,...... Inch cpy ......... chalcopyritepy ........, pyrite caib ,,.,...., carbonate

SEP 01 '99 12=17 PRGE.06

SEP-01-1999 09 = 25 FROM UJWUI FLflGRESOURCES COM TOh-KUH : MILL 3KUUM rru-c i-tu. - 'o~- i^e. ij.

18776701555 P. 07

-3

PT

SEP 01 '99 12=18TOTflL P.07

PflGE.07

Ontario ,' v . . -J l rf i . v i l Vi ("i * * V K * : i - v ., l l V l r\

Performed on Mining Land

xtkxi f f (7) and 11(3), R.S.0.1*90

. OQKf)3Atteetment FVee Research Imaging

objection 06(2) md 66(3) of tt* Mining Act. Under section 6 or m* Mining Act. this T*nt work end correspond with m* mining tend holder. Questions about thit collection )men( md Mir**, 3rd Floor, 933 Ram*ey lake Roed, Sudbury, Ontario, P3E 665

41I15SE2003 2.19683 RATHBURN 900

Instruction*: - For work performed on Crown Lands before recording a claim, use form 0240.- Please type or print in ink. ^ -i rv ,r* o O2*19683

1. Recorded holders) (Attach a list if necessary)

Nam* FLAG RESOURCES (1985) LIMITED

Address Suite 1650-540FIFTH AVENUE S. W. CALGARY, AB. T2P OM2

Name

Address

CM Numb. 132 132

Telephone Number403 262 8883

Fax Number 4Q3 262 gggg

Client Number

Telephone Number

Fix Number

2. Type of work performed: Check (*0 and report on only ONE of the following groups for this declaration.

O Geotechnical: prospecting, surveys, assays and work under section 18 (regs) D Physical: drilling stripping,

trenching and associated assays O Rehabilitation

Work Type

SURFACE DRILLING

0***Werk Prom To -in 1 QQQ Pwformed 9c*y 1 i***. 7 | y-r 1999 30 o,, | ^Xioc*. | iS?3Otobel PosMonlm Syetem Dele (V evallabl*) Tt"n*h'p'A"*RATHBUN TOWNSHIP

M or G-Pten NomUr

Office UseCommodity

Total S Value of WorK Claimed 9. ? , 0 33)

NTS Reference

Mining Division ^Url^^ L ,

Resident Geologist^ ' District JjUudfoU (2-*- 1

Please remember to: - obtain a work permit from the Ministry of Natural Resources as required;- provide proper notice to surface rights holders before starting work;- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are linked for assigning work;- include two copies of your technical report.

3. Person or companies who prepared the technical report (Attach a list if necessary)

N"m*RONKOR DIAMOND DRILLING INC.

Address BOX 1341 COPPER CLIFF, ONTARIO

Name

Address

Name

Address

^ . -. . ; ;~.-- , - - ,- .- - - - ' . - .- .- ---- '

4. Certification by Recorded Holder or Agent1. MURDO C. MCLEOD

RECEIVED

SEP 09 I393

GEOSCIENCE ASSESSMENT

. do horotP/Bfifcfy that l H

Telephone Number 705 682 0649Fax Number 705 682 2441Telephone Number

Fax Number

Telepnone Number

Fax Number

ave personal knowledge of the facts set forth in(Piirl Nun*)

this Declaration of Assessment Work having caused the work to be performed or witnessed the same during or after its completion and, to the best of my knowledge, theaeriexed report is true

Signature of Recorded Holcley or Agent J^/J^/)^^^

Agent's Address 1650^5/10-FTETH AV^niK H. W. CATfATW. An T^P 01

Telephone Number r (403) 262 8883

Date AUGUST 31, 1999

Fax Number 4m 7fi9 RRRfi

3241 (OW7)

a. the Ur*0 *ti*i* wvi* W**

this form.Ut* w* i wy^A/v * HI l*,

MMAQ CWm Number. Or II woft w*e done on ocher UgiMi mb*^ tend, show In 0* eolumjn fhe tocaHoo number IndleiiHj on ttte claim map.

g 0

Q

1

2 -

3

4--

6

6

7

t

,. t. a

10

11

12

19

14

15

T67B27

1234567

1234568

1229453

1197800

1197828

1197829

1197809

i

-. .. -

.

-

Number of CUlm UnlU. For o(h*f mining land, KM hectvM.

16 ha

12

2

8

4

4

4

3

Column Total*

V*Ju* of work p*rlorm*4 on (hit cUirn or oUw mining tend.

126.625

0

S 8, 892

14,123 ,

13,910

$28033

Vtlu* of wort *ppll*d to (hi* cUim.

N/A

124,000

S 4,000

Sieoo$1600

$1200'

$4400

V*lu* of woft ***Jjn*d tooth* mining cUimt.

124,000

0

0

$4400

$4400

B*nk. Vtlo* of worit to b* ditthtHA*d it t hXur* du*.

(2,825

0

S4.892

S9723

$13,910

S23,633

l,MURDO C. MCLEOD , do hereby certify that the above work credits are eligible under

(Prim M N*m*|subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to

the) claim where the work was done.Of Rtcorttd HoW* or Ag*nt Authorized in Writing

AUGUST 31, 1999

"t. Instruction* for cutting back credits that are not approved.

Some).of the credits claimed in this declaration may be cut back. Please check ( ^ ) in the boxes below to show how

you wish to prioritize the deletion of credits:, r ,, O 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated.

O 2. Credits are to be cut back starting with the claims listed last, working backwards; or

O 3. Credits are to be cut back equally over all claims listed in this declaration; or O 4. Credits are to be cut back as prioritized on the attached appepdix or as follows (describe):

DECEIVED"SEP O 9

, GEOSCIENCF ASSESSMENT ^Note H you have not indicated how your credits are to be deleted, credits will bh nit hack wmEthe Bank fyst.

followed by option number 2 if necessary. _______ ——,—^.

For Office Use Only ___ __________DO*

0*1*

tor B*cor4ing by Mining

0*1*Sw*~

ToUI Vtlu* of CrwW

I9EP B3 "X 09H4 FR GEOSCIEHCE PSSESSrEMT 7056705361 TO 914832626866 P. ei/81

Ontario Ml tori rt Statement of CostsCredit

p*tBB*htaiiwlmcetetsdwil*fOjmkodlB^"*K*the*utwrtye***i^^M*frp /y* f* '^)fmj*y a t ffufrfr- ftCflf. * Mn*m*aan K* b* u**d to oton tw x.uniKn* mat yd ujir^jy nJ njtQh* rtplngQiiaXM *^ v^oa^ M^ b!id^ v * Pra^Rtw*,*udbwr.Onj^Q.weeov ^ # i *J

WoctTjrp.

DIAMOND nRTTj.TisK

UNtoofvw*C*(*rt^on***rt"o'-o(t.]*b*nuT*wo(MunMay MWMd. ntMm* of *Cb^ idoiTxt^M (4 (rid *Tt. rwntMr of wrpte*. rt

?n^n FRFTT 0 si^.nn

AccocMMi Cotte (B.g. supplies, rooUBtrmttoo and d*mooBlz*tton).

Transportation Coat*

MDVES AND G. S. T.

food and Lodging Co*ts

Co** POT Unit of work

Total Value of At**csm*r* Worfc

Tot* COM

S?4 f f5GO.QO

S3. 433

$28 / 033

Calculations of Ffflng DUcounti:

1. Work (ltd wlhin two yean of p*fbrm*nc* K cWm^d d 100S of t* *fiov* Total Velu* of AMmmvt Wortc2. H work i* filod vftar two y**r* and up to Cve year* ator ptrlornunc*, K can only be daimoO X SOS of r* Total

Value of AtttUflttnt Work. If H* *tu*Bon appliM to your cWms, UM Ihc cateUatton b*tow:

TOTAL VAUje OF ASSESSMENT WORK x O JO* Total S value

MotK

request fw *nti7of ootrtcSonWartflcadon . tf voriTfcation and/of oorrec&xi/ctertlcation le nol made, the UW*ttr m*y reject al

Certification varffykig co*U:

l. MTTpm r**snu pXand th

certfy, 9\at lh# tflrwuntt shown *v i* ccunte M

the costs wert incurad whSe conducting MSMtrrwt work on the lands indicated on the eocompartymo

of Work form as ____PRTyiTnPTJT____.__________^^ l am authortcad to make Uia i

"DECEIVED

SEP C 9 1593

GEOSCIENCE ASSESSMENT OfflCE ^.

AUG.31.1999

TDTOL

Ministry of Ministere duNorthern Development Developpement du Nordand Mines et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road

December 1, 1999 6th Floor

Sudbury, OntarioMurdo C. Mcleod P3E 6B5FLAG RESOURCES (1985) LIMITED1650-540 5TH AVENUE S.W. Telephone: (888) 415-9845CALGARY, ALBERTA Fax: (877)670-1555T2P-OM2

Visit our website at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2.19683

Status Subject: Transaction Number(s): W9970.00263 Approval After Notice

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact BRUCE GATES by e-mail at bruce.gates@ndm.gov.on.ea or by telephone at (705) 670-5856.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 14372

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.19683

Date Correspondence Sent: December 01, 1999____________________Assessor:BRUCE GATES^^^^^^^^^^^^^^^^^^

Transaction First ClaimNumber Number Township(s) l Area(s) Status Approval Date

W9970.00263 1229453 RATHBUN Approval After Notice November 30, 1999

Section:16 Drilling PDRILL

The revisions outlined in the Notice dated October 27, 1999 have been corrected. Accordingly, assessment work credit has been approved as outlined on the Declaration of Assessment Work Form accompanying this submission.

Correspondence to: Recorded Holder(s) and/or Agent(s):

Resident Geologist Murdo C. McleodSudbury, ON FLAG RESOURCES (1985) LIMITED

CALGARY, ALBERTA Assessment Files Library Sudbury, ON

Page: 1

Correspondence ID: 14372

•o'soj 5J3QOQXE

R K l N

T6JWNS HIP-" i-j

TOWyN s-H If*'~ ' 1-FOWNSHLP Y ^ .** 'i •f'V^-. -5 \ f *^-rMACKELCA

. i9^SHIP

R3 \w A l N C l \A p A; R K

1197808

i Vl J4237526

1211113,,

l——————lir***.,r--N:-1222831

1211112 - .

l \

S12111111

l\ ,J-^K^ 1179591 ; T-Oaon Lake \

29S (7 l -

1229452f K UK AG AMI

T

1237219G AM A S/

S 1211104• 1INDIAN RESERVE No. 11

* --- ^-' "~wo- 1197763

12113251V —— __;__ —— | _____ ^ ——™ijL^^ ™^

BMTEIf l Ml M* JM6HT3 OF THE LAND AND THE LAMB UNDEH THC WTTEItS OF W*HAPITEI LAKEME WITHDRAWN FROM STAXIUft OUT UNDER SEC. 36 OF THE MINIMA ACT. ORDER MQ. 67/TBDATED HOV. 17, lt7l FILE 79*8 VOL.*

sfj 11978021197655 1117601

41214999xi /v x? LAKE•'^ v \ ~'y- .-Jf*.-'.-^r . twWU 5?

1211029 c

lk l 1197785 "i

1197801 i-; L 1214684

826226 826225 l

12146861197764

1197786 ,___; —

•feggg*te 1214413

11S7703 ' -826222122953V ^

1237362 1197704 |- :—-^ *L ^toU^._j ^ l. rr-t^l ..,-;j- - iit ! -H?i ^ i

Ministry ofNorthern Developmentand Mines

SYMBOLSMinistry ofNaturalResources

DISPOSITION OF CROWN LANDSBoundary

Township, Meridian, Baseline

Road allowance; surveyed

shoreline

PatentSurface 4 Mining Rights

Surface Rights Only

Mining Rights Only.

LeaseSurface A Mining Rights Surface Rights Only-

Mining Rights Only

Licence of Occupation

Order-in -Council

1125685i/ j 826248V -p

Lot/Concession; surveyedunsurveyedINDEX TO LAND DISPOSITION

2 l O 9Parcel; surveyed

unsurveyed

Right-of-way; road

railway

utility

Reservation

M.N.H. MMMWSTMnVE DISTRICT

SUDBURYMtNING DIVISION

SUDBURYUWD TITUS/REGISTRY DIVISION

SUDBURY

UT—rCL^r-i^.A P -J t*?iPUN

G-4093TOWNSHIP

826238THE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES, AND ACCURACY IS NOT GUARANTEED, THOSE WISHING TO STAKE MINING CLAIMS SHOULD CONSULT WITH THE MINING RECORDER MINISTRY OF NORTHERN DEVELOPMENT AND MINES. FOR ADDITIONAL INFORMATION ON TOE STATUS OF THE LANDS SHOWN HEREON.

! r^ .-,. 826239

97T7-82.-f1 BUR NT -*" *ISLANDReservation

Sand 4 Gravel

LAND USE PERMIT

Cliff, Pit, Pile

ContourInterpolated Approximate

Depression

Control point (horizontal)

Flooded land

Mine head frame

Pipeline (above ground)

Railway; single track double track abandoned . . . . . . . . . . . . . .

Road; highway, county, township-

access trail, bush ..................

Shoreline {original)

Transmission line

Wooded area

RATHBUN :^, J* . - l 6241 ,——^!/ 4--—————-Jf———fe.^^4.!^__T^826229 826228 P - - - —j. -- ; - -A— -s ^^r^-: ?j - . - —/*ft;-^1*^-rr--T:-'5

.^K-f^^5, ^7 l ^

' eLStrf^^ -*?

1211027 1198334 .

AREAS WITHDRAWN FROM DISPOSITION

MHO - Mining Rights OnlySRO- Surface Rights OnlyM -t-S - Mining and Surface Rights

FLOODIN* RUHT* ALONft THE SHORES OF WtHAHTEI LAKE AND ItLANDS CONTAINED THEREIN TO ELCV. tOO.9'(CREST OF DAM l

RESERVED TO ONTARIO HYDRO. L,0- ftj.86

FI-WCLUDE5 BOLAND LAKE AND BOUCHER LAKHI9L4N05 IN W&UMTEI LAKE MtTHfiRAVH FRO* 1TMUM6 UNDCA SEC. 38 (c) OF WIHIW ACT R.9-Q. 4*7O NOV. 2S,

S*M

UCCNCE OF occupwnoii ,tr ^^ s^f. j

THE INFORMATION THAT APPEARS ON THISHAS e?^4!*W*i*tefl#l^' lo*^ro'J0[tot fabric and parcel boundaries on

SOi.'RCtS tt^itnde^^fSjiwnrp/ledferadTOJilistrative purposes only.Map base and land disposition drafting by Surveys and Mapping Branch, Ministry of Natural Resources. SEC 35 W-LL-P174/99 ONT MAY 13^9 MSS

z. S/t/A D'DINAfe'" l

T O W M SIM l P

l 5I3COO-E

41I15SE2003 2.19683 RATHBDEN

HL-99-1 is 15 metres north and 5 metreswest of #2 post of 1214414 dip -90degrees.

BL-99-3 is 300 metres west and 5 metres north of #2 post of 1214414

-L 7i:.. l j** **

Matagamisi Lake

Boland

RATHBUN TWP41I15SE2003 2.19683 RATHBURN 210

Location of drillholes BL-99-1 and BL-99-3 claim no. 1214414160

Map Ci-4093

i&l41I15SE2003 2.19683 RATHBURN 220

#3 Post 1237529J#4 Post 12294531

N

•t -j

blUJ

L.A

Matagamisi Lake

490 metres 6*ST

• *

185

DDH ML-99-3

metres /SfcuTH

,'~cxVertical DIP -90 degrees.

.. 0 ..' n ~Yo(2^0 - ; /,"' i ^ ft,X^.. .^^.^ ' -, l J I ( V ^^A

3^r l .^

SCALE 1:5000 \

. \ f

^Dl 1229453

j^p" ^ ^ \ ^f^\ SEOSCIWCE^P1sQ-T

\?:-3 '

RATHBUN TWPj. \ ^

O1 ".M/.V- f^^^lA.r -y