2·47186

REPORT ON PRELIMINARY OVERBURDEN STRIPPING, GEOLOGICAL MAPPING AND SAMPLING

GOLD CORONA PROPERTY LARDER LAKE MINING DIVISION

CHURCHILL TOWNSHIP, ONTARIO

UTM Grid Zone 17, NAD 83 NTS Map Sheet 41 P /11

for CRESO RESOURCES INC

Montreal, Quebec

Prepared by:

Christophe Le 1\loan, M.Sc. Montreal, QC January 5, 2011

Table of Contents

1.0

2.0

3.0

4.0

5.0

Introduction ............................................................................... .

Property Description and Location ................................................. .

Physiography, Climate and Access ................................................ .

History ....................................................................................... .

Geological Setting ...................................................................... .

2

2

2

3

4

5.1 Regional Geology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 4

5.2 Local Geology . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6.0

7.0

8.0

9.0

Current Work Program ................................................................. .

Interpretation and Discussion of Results .......................................... .

Conclusions and Recommendations .............................................. ..

References ............................................................................... ..

Statement of Qualifications

List of Tables

Table 1: Gold Corona Property Claims

List of Illustrations

6

6

7

8

9

2

Figure 1 : Location Map .. . .. . . . . . .. . . . . .. . .. .. . . .. . . .. .. . .. . .. . .. ... .. .. . . . . .. . . .. . .. . . . .. .. . . . .. .. . 1 0

Figure 2: Stripped Areas Location Map .. .. .. .. .. .. .. . .. . .. .. .. .. .. .. .. . .. . .. .. .. .. .. .. .. .. .. . 11

Figure 3: Stripped Area, Vein No2 Offshoot

Figure 4: Stripped Area, South Corona Vein

Appendices

Appendix 1 : Assay Certificates

12

13

1

1.0 Introduction

This report has been prepared at the request of Creso Resources Inc. ("Creso") for claims staked in Churchill Township, Shining Tree area, north-eastern Ontario. The claims were recently consolidated to form the Gold Corona property following a joint venture agreement between Creso and Platinex Inc ("Piatinex").

The report presents the preliminary results of a program of overburden stripping, sampling and mapping undertaken by Creso between November 1st and December 131

h 2010. This work was completed by Canadian Gems & Minerals and mapping and sampling supervised by the author.

2.0 Property Description and Location

The Gold Corona property is located (Figure 1) in south-east Churchill Township, within the Shining Tree area, approximately 100 km north of the city of Sudbury and 1 00 km south of Timmins, north-eastern Ontario. The property is sited 5 km to the east of the hamlet of Shining Tree along provincial Highway 560.

On October 201\ 201 0 Creso and Platinex entered into an agreement to combine claim holdings

into a 50/50 joint venture. The Gold Corona joint venture property comprises nine contiguous staked claims totalling 21 claim units covering an area of approximately 306 hectares (Table 1 ). The joint venture brings together the historic high grade vein systems that include the former Churchill, Gold Corona, Cochrane, and Pet occurrences. Creso and Platinex have full ownership of each claim. The property is centered on UTM Zone 17 coordinates of 482,865mE, 5,273,566mN.

The work described in this. report was performed on claim L 1235004 and L 1242015.

Table 1. Gold Corona Property Claims

Claim Number Townshi~ Ex~iry Date Units Holder{%)

L 1227175 Churchill 2011-09-29 1 Platinex (100} L 1235004 Churchill 2011-08-16 1 Platinex (1 00) L 1242013 Churchill 2014-06-02 1 Creso (100) L 1242014 Churchill 2014-06-02 1 Creso (100) L 1242015 Churchill 2014-06-02 1 Creso (100) L4207972 Churchill 2011-05-30 2 Platinex (1 00) L 4209217 Churchill 2011-01-03 1 Platinex (1 00) L4217645 Churchill 2012-01-19 6 Platinex (100) L4225667 Churchill 2011-02-28 7 Creso (100)

3.0 Physiography, Climate and Access

The property can be reached by traveling east along Highway 560 from the Temiskaming shore area or Kirkland Lake (Highway 11) or west, from Timmins or Sudbury through Shining Tree (Highway 144). Logging roads and all-terrain vehicle trails provide additional access throughout the properties. The climate in the region is suitable for year round operations in exploration and mining development. The average winter temperature (December to February) is -9° C and the average summer temperature (June to August) is + 16 'C. The average annual winter snowfall is 285 em and the average annual rainfall is 805 mm.

2

The area is one of moderate relief with elevation ranging from 335 to 400 m above sea level. The highest grounds are encountered in terrain underlain both by metavolcanic rocks and Middle Precambrian Huronian rocks and diabase sills. The Middle Precambrian rocks form elongated, north-south ridges reflecting the prevailing strike. The surface geology is dominated by Quarternary glacial deposits consisting of sand, gravel and till.

Perkins Lake is the main drainage within the property. It runs to the southeast into Michiwakenda Lake which borders the property to the northeast. Swamps and muskeg are relatively limited. The Cochrane, Jefferson and Beilby lakes border the property to the southwest and drain into the Michiwakenda Lake which in turn flows into the West Montreal River, the dominant drainage feature in the west Shining Tree area. The West Montreal River flows north into the Montreal River which drains ultimately into the St. Lawrence River.

The vegetation in the area is characterized by extensive spruce bush mixed with poplar, birch, jackpine, aspens and local stands of white pine and other species typical of the boreal forest. Much of the area has been cut over and now contains some conifers and mixed vegetation at various stages of growth.

4.0 History

Gold is believed to have been discovered on the property around 1912-1914. By 1915, the Gold Corona claims were already surveyed (Forbes, 1982). The highlights of significant historical exploration work conducted on the property are extracted from White (201 0) and include:

1918: Claims TRS 3741, 3773, 3774 and 4044 comprised the former Churchill Mining and Milling Property. This company incorporated in 1918 and carried out surface work on veins discovered by J.A. Knox on TRS 3774.

1918 - 1933: Surface stripping carried out during 1918 to 1933 exposed four vein systems with Churchill veins No. 3 and No.1 returning economic gold values. The No.3 vein was exposed for a length of 90 m with an average gold value of 27.5 g/ton over a width of 1.2 m based on 18 channel samples. Vein No. 1 was exposed for 30.5 m with a width of 1.2m and an average grade of 29.4 g/ton (Laird, 1934).

1934: A two compartment shaft was sunk to a depth of 33 metres with 20 m of drifting and 47 m of crosscutting completed on the 32m level. A ten ton stamp mill was erected and recovered 154 grams of gold from 1 0.4 tonnes of ore. Operations were suspended in 1936.

1971 -1974: Triton Exploration Limited owned the Churchill patents from 1971 to 1974. In 1974 the patents reverted to the Crown due to non payment of taxes.

1981 - 1983: During the second half of 1981, Shiningtree Gold Resources conducted extensive surface stripping, trenching, geological mapping and channel sampling of the main vein occurrences on the property. The Pet and Gold Corona vein were drilled in 1982 respectively with nine and one shallow diamond drill holes. In 1983, ground magnetic and EM was carried out on the northern half of the property.

1988: The property was acquired by 751160 Ontario Inc. on June 1, 1988 when the Crown opened the property for staking.

3

1989: Unocal acquired the property and performed line cutting, ground geophysics (magnetic and VLF-EM}, surface stripping, channel sampling, geological mapping and 461 metres of diamond drilling in 4 holes, marginal to the current southern claim boundary.

5.0 Geological Setting

The Shining Tree area is located in the southwest Abitibi Greenstone Belt within the Abitibi sub­province of the Superior Province of the Canadian Shield. The Abitibi sub-province is one of the most prolific areas for gold and base metal deposits in the world. A strong spatial relationship exists between gold deposits and major regional faults. A number of world-class gold deposits occur to the north in the Timmins camp and eastwards into Quebec, with all being associated with the Oestor Porcupine Fault. To the south, another major trend of world-class gold deposits occurs along the regional Larder Lake-Cadillac fault at the Kirkland Lake camp and eastwards into Quebec. The Larder Lake-Cadillac structure is interpreted to extend westward through the Shining Tree area.

5.1 Regional Geology

Description of the regional geology is extracted from Harron and White (201 0) and summarized from Carter (1977, 1981, and 1983} and Johns (2003}.

The Early Precambrian rocks include a suite of metavolcanic rocks and associated intrusions, metasedimentary rocks, felsic to intermediate plutonic rocks, and diabase dikes. The metavolcanic rocks belong to a subalkalic and alkalic metavolcanic rock series. Volcanic rocks include komatites, dunites and peridotites and their metasomatized equivalents, plus a mafic to felsic series consisting of calcalkalic suites. Both flows and pyroclastics are present, but pyroclastics are rare amongst the mafic rock types. The mafic and intermediate flows were extruded subaqueously as they show pillowed structures. Pyroclastic rocks occur predominantly as intermediate rocks: They are mainly tuffs and crystal tuffs that were deposited subaqueously. Well-preserved sedimentary structures comprising graded bedding, load casting and ball and flame structures are common. Some of these sedimentary rock units grade upwards into a green cherty rock which is rhyolitic in composition. The metavolcanic and metasedimentary rocks are folded about a synclinal axis which trends and plunges N50W and is located in central Natal Township. The synclinal axis is sinuous and in the northwestern part of Natal Township it swings northwards. On the basis of this structure, the rocks in Knight and northeastern Natal Townships occur on the northeastern limb of the syncline and the rocks in southwestern Natal Township occur on the southwestern limb. Stratigraphically, tholeiitic and calcalkalic metavolcanic rocks in the northeastern part of Knight Township form the lowest exposed rocks in the map-area.

These are succeeded by komatiitic ultramafic and rocks which are subsequently overlain by interlayered calcalkalic and alkalic volcanic rocks. All the rocks have been affected by regional greenschist metamorphism.

Intermediate plutonic rocks in the area occur mainly as two masses: the Lafricain pluton located in northeastern Knight Township and the Milly Creek pluton located at the middle part of the southern boundary of Knight Township. The Lafricain pluton is believed by Carter 1989 to be the southwestern end of the Round Lake batholith. Both plutons are elongated in the direction of the regional trend of the metavolcanic-meta-sedimentary rocks. The commonest rock types observed in both plutonic rocks are a grey, or pink to brown, medium-grained massive hornblende granitoid. The pink granitoid may be porphyritic locally, where feldspar or feldspar and hornblende occur as phenocrysts.

4

Matachewan diabase dikes most of which are 30-45 m wide and trend north-northwest are present in the area.

Proterozoic rocks comprise mostly sediments and are observed in east-central Knight Township where the northern end of Metikemedo Lake connects with West Montreal River. Here the slates are associated with a north-south lineament and a north south reach of the river.

The Huronian sedimentary rocks include slate, siltstone, wackes arenites, orthoconglomerates and paraconglomerates. Nipissing-type mafic intrusive rocks occur primarily as an arcuate concave-eastwards sill about 214 m thick and dipping approximately 25 o east, within the Gowganda sediments, in east-central Knight Township.

Sand, gravel and alluvium comprise the Pleistocene and Recent deposits of the Cenozoic in the map area. They occur as blanket deposits and as eskers. The blanket deposits occur in southwestern Natal Township and central and north-central Knight Township. In the latter area extensive swamp deposits occur consisting of muskeg and fine yellow silty deposits. Coarse sand and gravel occur as eskers aligned north-south in southwestern and south-central Natal Township, and in southeastern and southwestern Knight Township.

The Precambrian rocks are folded about a plunging regional synclinal axis located in Natal Township; the axial trace of which trends N60'W over most of the township. In the northwestern part of the township the axial trace trends generally northward, and the plunge is about northwesterly. Rocks in northeastern Natal Township and in Knight Township are on the northeastern limb of the syncline, whilst those in southwestern Natal Township are on the southwestern limb. The rocks are steeply dipping, the dip varying from 35-85 degees.

Several major faults cross the map area in a northwest direction.

5.2 Local Geology

The property covers what is interpreted to be a major stratabound carbonate dominated alteration zone (Bryant and Jamieson, 2008). The zone includes a number of showings which appear closely related to the contact between the Deloro and Kidd-Munro assemblages (typically mapped as chemical sediments). These showings include the Cochrane, Pet, Gold Corona and Churchill vein/alteration systems. High gold values have historically been recovered from these veins systems of various orientations within the southeast end of the property. Various facies of iron formation occur within the alteration zone and are locally highly anomalous in gold. The iron formation is considered to be the top of the Deloro group of rocks, with more mafic rocks of the Kidd-Munro group or Timiskaming rocks to the northeast.

The Pet vein is located within a N060 trending shear zone. The vein is 0.5 to 2 metres wide and dips approximately 50 degrees south. Historic surface, drill and bulk samples all return significant gold values, including several gold assays over 1 ounce per ton. The Gold Corona vein is a north trending vein cross-cutting schistosity and dipping west; significant historical gold values were obtained in both surface sampling and diamond drilling.

The Churchill veins 1, 2, 3 and 4 are a N060 trending set of veins which were explored underground by the Churchill Mining and Milling Company in the 1930's; little data exists from this work, although the Ontario Department of Mines reported in 1934 that visible gold and significant gold values over 0.5 opt were returned from channel samples on the No 1 vein and west of the shaft on the No 3 vein. Unocal power washing and sampling conducted in 1989 is the most recent exploration program on the Churchill property. Results from channel sampling on the vein areas other than the No 1 and No 3 returned several gold values above 1 glt up to 6.96 g/t.

The Cochrane vein is generally a stratabound vein associated with iron formation and cross-cut by smaller veins. Significant historical gold values from surface sampling and drilling are reported.

5

6.0 Current Work Program

A program of overburden strippin~, sampling and geological mapping was conducted between November 151 and December 131

, 2010. The program had for main objectives to locate the historic gold veins/structures and initiate a preliminary assessment of the surface exposure of the veins through sampling and mapping including structural measurements to provide further understanding on the structural control of the mineralization for drill target definition and 30 modeling.

Creso contracted Canadian Gem & Minerals Ltd. to conduct the overburden stripping on the claim group. The program was carried-out over a thirty-one day period utilizinq a two-man crew and a 1-yard Daewoo 220 excavator and Wajax pump. Approximately 5,625 m of overburden stripping was conducted on four areas, exposing approximately 250 m2 of bedrock in two areas (Figure 2). Two of the areas stripped could not be washed, mapped nor sampled before the first snowfalls. A total of 42 samples were collected, including 36 saw cut channel samples averaging 0.80 em in length and 6 composite chip/grab samples. All samples were sent to Polymet Laboratories in Cobalt, Ontario for fire assay gold analysis. Four split samples were also sent to Agat Laboratories for multi-element whole rock analysis. The results from the latter are pending.

7.0 Interpretation and Discussion of Results

The work was initiated on an area with outcropping bedrock located 120 m from the bridge over the Beilby creek and 10 m east from the access road (Figure 3). Approximately 240 m2 of overburden was removed, exposing 150 m2 of bedrock. A relatively narrow and discontinuous quartz-carbonate vein, with a maximum length of approximately 15 m and a width varying from 1 em up to 30 em over a 1-2m section was uncovered. The vein is referred by Forbes (1982) and Wahl (1983) as the "No 2 offshoot" vein. The vein is striking northeast-southwest between N045 and N060 due to pinching and swelling. The dip could not be measured. A number of quartz veinlets commonly less than 5 em in width vary from north-south to east-northeast direction. The mineralization consists principally of fine grained pyrite disseminated or in small patches predominantly localized along the selvage within the wallrock. Zones of quartz-carbonate stringers associated with more intense fracturing and finely disseminated pyrite were also observed. Nine samples were collected on this showing. The main lead vein returned gold values between 0.07 g/t Au over 1.20 m (which included significant wallrock material) and 7.13 g/t Au obtained from a composite chip/grab samples collected on the largest width of the vein. Some of the smaller veinlets returned values up to 0.82 g/t Au over 0.30 m. Forbes collected 3 samples from that showing. Two samples from the main quartz vein returned a grade of 0.08 ozlton (2.74 g/t).

On the South Corona vein, located 40 m southeast, an area of 370 m2 was stripped exposing 1 00 m2 of bedrock (Figure 4). The main structure extends over a length of approximately 10 m and is 0.80 m in its largest width. The vein is trending north-south and dips to the west (N186/68W). A total of 21 channel samples and 2 composites chip/grab samples were collected. The highest gold value was obtained in the southern portion of the vein, close to the shaft. A grade of 18.0 g/t Au over a 0.50 m width across the vein was returned from massive quartz veining with fracture controlled fine pyrite up to 1-2%. Below 1 g/t Au results were obtained from the northern portion of the showing where the vein is more irregular, strongly fractured, and include host rock clasts and lenses of pink calcite 2 to 5 em wide localized on the outer rim of the quartz vein. Two sets of smaller veins and veinlets oriented north to east-northeast and a somewhat less prominent east­southeast to south-southeast have been observed. The highest gold value reported by Forbes (1982) on the South Corona vein was 0.23 ozlton (7.88 g/t) from fifty-five, mostly channel, samples collected.

An area of 620 m2 was washed and partly stripped at the projected intersection of the Pet and Gold Corona vein. Detail mapping and sampling of the area will be conducted in the near future.

6

At the Gunter/Rhyolite vein, approximately 250 m west of the Pet and Gold Corona vein, 4,395 m2 of overburden was removed. The stripping exposed the bedrock immediately adjacent to the east and to the north of the old trench, and was extended further north on strike with the vein to test its possible extension. The vein straddles the southern boundary of claim 1242015 and extends to the south into a claim held by another party. The vein has a reported north-northeast trend and dips steeply to the east. A grab sample initially taken from the top (northern) section of the vein returned 2.228 oz/ton (Gunter, 1980). A trench of 150ft long by 20ft wide and 4-12ft deep was open and blasted in 1980 by Clint Gunter. The vein was exposed along a length of 150 ft with a width varying between 2 to 4 ft. Gold assays returned values ranging from traces to 0.855 oz/ton. The highest values came from the northern section of the trench (3 samples above 0.7 oz/ton) which appears to be, contrary to the Gunter report, on the joint-venture ground. The area was not washed and mapping and sampling not performed.

8.0 Conclusions and Recommendations

No work was done on the property for the most part of the last twenty years. Historical work has indicated extensive gold mineralization throughout the region almost entirely related to quartz veining with minor indications of disseminated gold mineralization within volcanic rocks. Current ongoing work by Creso in the Shining Tree area has indicated that structure is an important controlling aspect of the mineralization and that deep seated hydrothermal system related to alkalic rich intrusive exist at depth. However, historical drilling was conducted at shallow depth and showed that the veins commonly pinch and swell, generally lack continuity and show highly variable gold values. Preliminary results of the program appear to confirm these observations.

It is recommended to pursue the program to locate, map and sample all historical vein occurrences on the property. A particular focus should be placed on gathering structural information to provide further understanding on the structural control of the mineralization for drill target definition and 3D modeling.

7

9.0 References

Bryant J.G., Jamieson D., 2008. Technical Report, Shining Tree Gold Project, Shining Tree Ontario, Canada. Prepared for Platinex Inc.

Carter, M.V., 1977. Geology of MacMurchy and Tyrrell Twps, District of Sudbury and Timiskaming, Ontario Division of Mines, Report 152, incl. Map 2365.

Carter, M.V., 1981. Natal and Knight Twps, Districts of Sudbury and Timiskaming, Ontario Geological Survey, OFR 5337, 160 p., 22 Tables, 17 Photos, 10 Figures and 2 Preliminary Maps. Ontario Geological Survey, Open File 5337.

Carter, M.V., 1983. Geology of Natal and Knight Twps, District of Sudbury and Timiskaming , Ontario Geological Survey, Report 225, Incl. Map 2465.

Forbes, C.P., 1982. Summary Report for the 1981 Field Season on the Churchill Township Property. Shiningtree Gold Resources.

Gunter, C., 1980. Assessment Report Gunter's Prospect, Churchill Township.

Harron, G.A., White, M. V., 2010. Technical Report on Creso's Duggan, Tyranite & Minto Properties, Knight and Tyrrell Townships, Shining Tree District, Ontario. Prepared for Willowstar Capital.

Johns, G.W., 2003. Shining Tree Area, Ontario. Ontario Geological Survey, Prelim. Map 3521. Laird, H.C., 1934. Geology of the Makwa-Churchill Area; Ontario Dept. Mines, Vol. 43, pt. 3, p.37-80 (published 1935). Accompanied by Map No.43c, scale I inch to I mile.

Wahl, H., 1983. Report on Diamond Drilling, Churchill Project. Silver Princess Resources.

White, M. V., 2010. Assessment Report on Creso's Claims; Asquith, Churchill, Connaught, Miramichi, Fawcett Townships, Shining Tree District, Ontario. Prepared for Creso Resources.

8

STATEMENT OF QUALIFICATIONS

I, Christophe Le Noan, of 4525 Kensington Avenue, Montreal, Quebec, hereby certify:

1. I hold a B.Sc. in Geology (1997) from the Universite du Quebec a Montreal (UQAM) and a M.Sc. in Mineral Exploration (1998) from Queen's University.

2. I currently practice as a self-employed consulting geologist and have been practicing my profession since graduation.

3. The information contained in this report is the result of work done by myself or work that I personally supervised.

Dated at Montreal, Quebec, this 51h day of January, 2011.

"Is/ C. Le Noan" Christophe Le Noan, M.Sc.

9

Appendix 1

1 Pres'~ St, P.O. Bcx 6:§9, Cob.U. Ontaria Canada RlJ 1\..0

Tel: f705j679-5500 • Fax:: (705! !17'i-551~ Ema'l: infQ@f','(tymetinc.wm W~liSi!-e: l!lo'IIW.\)I'Jt)'fr~.ro.;r.

Certificate of Analvsis Cn...."SS Resources inc.

We certify that th.c assay results in the to.Howing Certificates are factuaJ and true.

Dale: Dec. l6,. 20 I 0

l.llsd;umcr The ... ~.Its mda.:hi oo d:us r~111 1dac.: onl~ t-:1 tf,: d. ;!Ill» Co:J.t'-<o:l.

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14

CERTIACATE

O;r.e·

Dec. 16. 20t0

Sam~e-#

28102 28103 281t-<l 18105 28100 2.!!107 2.!3108 28109 2!3110 261,1

Sto O!CL 76 Bla~

PolyMvt Laboratories Ciiert· ·creso RJ;-!;;ourc<"..s 1m:

9142 .iot> No. ()-, 85

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10 Rocks

0 174 S.G6S <001 -:_(iJ

15

CER.TIFICATE

Da·t~.

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2811 7 2ana 28119 2St:2{} 281'44 28f!l5 28121

2812.2. 25123 2.8124 2~1::'5

28126 2.8-127 2131.28 28129 29130

Note: 28144 Standard 28145 Blank

(1176

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16

CERT1RCATE

D-ate: Dec. 1S, 2010

sample#

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8 Claim Posts

Claim Boundary

CRESO RESOURCES INC.

CHURCHILL· GOLD CORONA PROJECT --;-- r-----,,L-/- ·v _ ---~ \ / 28111

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STRIPPED AREA No 2 Vein "Offshoot"

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January 2010

Figure 3

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,---------

LEGEND

• Chip I Grab Sample

' GPS Point

~ Fault I Shear

I I I I I I Slope

Channel Sample

• Number Grade I Length

Limit of Outcrop I Bedrock

----·-··· Limit of Stripping

r ~ rl~,, ~* I ~ "'~

Veins (Quartz/Caronate)

0 0 Cover (Till) \ ('\

D Claim Posts ~-- + -,

- Claim Boundary + -- + __]

CRESO RESOURCES INC.

CHURCHILL · GOLD CORONA PROJECT

SHINING TREE - ONT ARlO

,----·

STRIPPED AREA South Corona Vein

-- --0 1 2 January 201 0 ~]

metres

SCALE 1 : 150 Figure 4

--

5272250°N

\ ' \\ ) .... ..

'\ C' -- ' ____ .... .-

5272000"N

I

' '

~+-+ ~+ -+- +- +-+ -+ -+

-1- 1235004

· ~

+

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Area 3 Gold Corona Veins]

+

+

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r ~ • ~-- • • " • • • • • • • • • "• • • • • • • • • • • • • • • • • • • • • • • • • • - • • • • • • • "l • • • • • • • - • • • • • • • • • • • • • • • • • • • • • • • • • • • • .,f. • • • • • • • • • • • • • •

/ /

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\ \ \

0 50 100

metres

SCALE 1 : 4 000

-NORTH

Date: December 201 0

Figure 2

:\J : 0

: g. >,.--/1 : rll v

......... -- -........................... ; .. . '

-. 4. ~ ••• ~ .. ... ~ ................... w ... - .. ... .. - ...... .. - •• ;........... - • - .... - ... ..

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J)

CRESO RESOURCES INC.

CHURCHILL· GOLD CORONA PROJECT

SHINING TRE;E ·ONTARIO

LOCATION MAP

500 1,000 Date: December 2010

metres

SCALE 1 : 40 000 Figure 1

DATE2010

Nov 23 -Dec 13

Nov 23- Dec 13

Nov 23- Dec 13 Nov 23 -Dec 13 Dec 28

Canadian Gems & Minerals Ltd. PO BOX 834 KIRKLAND LAKE ON P2N 3K4

CELL: 705-568-0128 FAX: 705-567-4185 www.canadiangemsminerals.com

Statement of Costs

1235004, 1242015 Churchill

DESCRIPTION

Travel Gowganda to Churchill return, 100 km/day @ $0 .55/km 21 days total

Excavator $120.00/hr@ 142 hrs Laborer, $25 hr@ 142 hrs Meals. @ $30 /man /day, 2 men = $60 x 21 Accomodations @$41/day Float Excavator from Shinning Tree to Sunridge

Sub-Total Tax Total

AMOUNT

$1' 155.00 $17,040.00 $3,550.00 $1,260.00 $861.00 $1600.00

$25,466.00 $3,310.58 $28,776.58

DATE: 11/29/2010

INVOICE#: PAGE: Project Location:

DATE

Nov 1

Nov 2

Nov 3

Nov08

Nov 09

Nov 10

Nov 11

Canadian Gems & Minerals Ltd. PO BOX 834 KIRKlAND LAKE ON P2N 3K4

CELL: 705-568-0128 FAX: 705-567-4185 www.canadiangemsminerals.com

1067-10 1 of 2 Claim# 1242015

BILL TO:

Stripping, Sampling, washing rock

DESCRIPTION

Travel to Cobalt- Kirkland 180km @$.55 km Tom 4 hrs @ $25

Creso Resources Inc. 1801 McGill College Ave Suite 1325 Montreal, PQ H3A 2N4

AMOUNT

Travel to Churchill - Gowganda return 100 km @ $.55 Excavator 1 0 hrs @ $120

$99.00 $100.00 $55.00 $1200.00 $100.00 $80.00 $250.00 $60.00 $55.00 $1200.00 $100.00 $250.00 $60.00 $55.00 $720.00 $100.00 $150.00 $60.00 $55.00 $1440.00 $100.00 $80.00 $300.00 $60.00 $55.00 $1440.00 $100.00 $300.00 $60.00 $55.00 $1440.00 $100.00 $80.00 $300.00 $60.00

Pressure Pump@ $100 /day Channel Saw & Pump @ $80 /day Labour #1 1 0 hr @ $25 /hr Meal @ 2 Labour @ $30 /day Travel 1 00 km Excavator 1 0 hrs Pressure Pump Labour #1 1 0 hrs Meal x 2 Travel 1 00 km Excavator 6 hrs Pressure Pump Labour #1 6 hrs Meals x 2 Travel 100 km Excavator 12 hrs Pressure Pump Channel Saw & Pump Labour #1 12 hrs Meals x 2 Travel100 km Excavator 12 hrs Pressure Pump Labour #1 12 hrs Meals@ 2 Travel 100 km Excavator 12 hr Pressure Pump Channel Saw & Pump Labour #2 12 hrs Meals@ 2

I -

DATE

Nov 12

Nov 13

Nov 14

Nov 15

Nov 16

Nov 17

Nov 18

Nov 01

Oct28

HST#: 100764901 RT0001

Canadian Gems & Minerals Ltd. PO BOX 834 KIRKLAND LAKE ON P2N 3K4

CELL: 705-568-0128 FAX 705-567-4185 www.canadiangemsminerals.com

DESCRIPTION AMOUNT

Travel 100 km Excavator 11 hrs Channel Saw Pump Labour #1 11 hrs Meals @2 Travel 100 kms Excavator 6hrs Channel Saw & Pump Labour #1 6 hrs Meal @2 Travel Gowganda Tyranite return 40 kms BackHoe 4 hrs@ $70 /hr Labour #1 8 hrs Meal x2 Travel100 kms Excavator 9 hrs Pressure Pump Labour #1 9 hrs Meals x2 Travel 100 kms Excavator 11 hrs Pressure Pump Labour #1 11 hrs Meals x2 Travel100 kms Excavator 11 hrs Pressure Pump Channel Saw & Pump Labour #1 11 hrs Meals x2 Travel 1 00 kms Excavator 1 Ohrs Pressure Pump Labour #1 1 0 hrs Meals x2 Cottage Rental Sept 20 - Oct 20 Receipt# 02154 Float Excavator from MacMurchy to Churchill Receipt# 2010-27 4

SUB-TOTAL HST 13% TOTAL OWING

$55.00 $1320.00 $80.00 $275.00 $60.00 $55.00 $720.00 $80.00 $150.00 $60.00 $22.00 $280.00 $200.00 $60.00 $55.00 $1080.00 $100.00 $225.00 $60.00 $55.00 $1320.00 $100.00 $275.00 $60.00 $55.00 $1320.00 $100.00 $80.00 $275.00 $60.00 $55.00 $1200.00 $100.00 $250.00 $60.00 $2000.00

$247.50

$23,268.50 $3.024.91

$26,293.41

Please make all cheques payable to Canadian Gems & Minerals Ltd.

2 .

PolyMet Resources Inc. 1 Presley St. P.OI. Box 699 Cobalt, ON POJ 100

GST Registration#: 89107 9824 RT0001

Bill To:

Creso Resources Inc. 1325-1801 McGlll College Avanue Att: Michael Tchakmakian Montreal PQ H3A 2N4

Deacription

,.,.., C8ftificatB #'8 8142. 8143. & 8144- Radca Sample Analyais 44 Sample Ptaps 0 $5.00 ea. 44 Fire Aaaaya for Gold 0 $11.00 ea. 13 Large Weight (5 to 10 lbs.) 8ample Pl8p Sun:hafge 0 $3.00 ea. 11 OvenliZe {1 o to 151b8.) Sample Prep Surctage 0 $5.00 ea. 25% RUSH Surcharve

Memo: Note: AJ invoices are due and payable in 15 days

PST G5%

2% finance fees wl be added to invoices not paid in 15 day&.

n, 5%

CODE RATE

Job No. 0-186

INVOICE

Invoice#: 00002393 Oala: 1211612010

Page: 1 Ship To:

Creso Resources Inc. 1325-1801 McGI Colege Avenue Alt Michael Tchakmakian Montreal PQ H3A 2N4

$997.50 $997.50

Total Sale

Tobll Amount

Amount Ap(JIIed:

6fllllnuo Duo:

Amount Tax

$220.00 HST $484.00 HST

$39.00 HST $55.00 HST

$199.50 HST

$997.50

$79.80 $49.88

$1,127.18

$0.00

$1,127.18

Cost Summary Churchill/ Gold Corona Project (Nov 1, 2010 ·Jan 5, 2011)

Allocation ~r claim 1235004 1242015

Canadian Gems & Minerals Ltd. 55,069.99 40% 22,028.00 60% 33,041.99 after tax Polymet Labs 1,127.18 100% 1,127.18 0% after tax Agat (whole rock analysis) If received on time Geologist #1

Fees 21.75d@ 550/d 11,962.50 90% 10,766.25 10% 1,196.25 before tax Lodging and Meals 12.25d@ 115/d 1,408.75 90% 1,267.88 10% 140.88 before tax Car Rental 1,358.06 90% 1,222.25 10% 135.81 after tax

Gas 172.51 90% 155.26 10% 17.25 after tax Travel 1,941.45 90% 1,747.31 10% 194.15 after tax

Geologist #2 Seww/Mike

Sub-Total 73,040.44 38,314.12 34,726.32

Tax Fees 11,962.50 1,555.13 90% 1,399.61 10% 155.31 tax on Fees & Lodg

Lodging and Meals 1,408.75 183.14 90% 164.83 10% 18.31 tax on Fees & Lodg

HST Total-13% 1,738.27

Expenses total before tax 73,040.44 38,314.12 34,726.32

HST 1,738.27 90% 1,564.44 10% 173.62

Total 74,778.71 39,878.56 34,899.94