Kay Mine

Historic Resource

In 1982, Exxon Minerals estimated a "proven and probable reserve" of 6.4 million short tons at a grade of 2.2% copper, 2.8g/t gold, 3.0% zinc, and 55g/t silver, using a cut-off grade of 2% copper-equivalent. This estimate incorporated data from approximately 7 years of underground exploration by Exxon, as well as 7,000m of surface drilling in the vicinity of the deposit.

* The historical resource estimate for the Kay Mine predates and is not compliant with NI 43-101 standards, is conceptual in nature, and has not been verified as a current mineral resources. None of the key assumptions, parameters, and methods used to prepare this historical resource estimate were reported, and no resource categories were used. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. The Company's Qualified Person has not yet undertaken sufficient work to classify the historic estimate as a current resource and the Company is not treating the historic estimate as a current resource