SAMPLING METHOD AND APPROACH

During October 2006, soil and rock sampling was conducted by APEX Geoscience Ltd. under the direct supervision of Mr. Dean Besserer, a Qualified Person. Soil samples were collected at depths of 10 to 30 cm from the ”B” soil horizon. All soil and rock grab samples collected during the fall of 2006 by APEX were marked at each sample site using orange polyethylene flagging, which was tied to a sturdy tree and sample numbers and locations were noted on the flagging and in field books. Soil sample sizes were approximately 0.5 kg and were collected in standard 0.5 pH brown Kraft paper sample bags. The rock grab samples were collected in 6 mil plastic rock sample bags. Sample identifiers were written on the outside of each bag (on both sides) and part of the sample card was placed in the bag with the soil or rock sample number written on it. All sample bags were closed using zip ties. Samples were taken daily back to the staff accommodations, counted, and soil samples were then laid out to partially dry before shipping. The samples were then all placed in double bagged rice bags with TSL and APEX addresses and phone numbers. The samples were sent to TSL Laboratories in Saskatoon, Saskatchewan. All of the soil and 45 of the rock grab samples were sent by Canadian Freightways from Williams Lake British Columbia with an additional 13 rock samples sent by Greyhound from Merritt, British Columbia. TSL Laboratories reported nothing unusual with respect to the shipments, once received. The author did not have control over the samples and therefore can not personally verify what happened to the samples from the time they left Williams Lake and Merritt to the time they were received at TSL Laboratories. However, the author has no reason to believe that the security of the samples was compromised.

SAMPLE PREPARATION, ANALYSES AND SECURITY

Soil samples were submitted to TSL Laboratories for a 30 element aqua regia ICP analysis and rock samples were submitted for fire assay (FA) gold.

Rock samples submitted to TSL Laboratories are first sorted and dried prior to preparation. The samples are then crushed to a minimum minus 10 mesh (70% minimum pass). The remainder is then pulverized to minus 150 mesh (95% pass). The TSL laboratory equipment is cleaned between each sample with compressed air and brushes. Also, in order to verify compliance with QC specifications, the lab performs a screen test at a minimum of: start of each group, change of operator, change of machine or environmental conditions, or nature of sample appears different. All screen data is recorded in a QC book, which is available for examination at the request of the Client. In addition, the pulverizers are cleaned with a sand wash when required or between each sample if requested by the client. Gold was analyzed by Fire Assay with a Gravimetric Finish (FA/Gravimetric) using a 1 assay ton (AT), or 29.16g charge.

Sub samples of the pulp were then fused in a crucible. Following fusing, the sample is cupelled. During this process, the precious metals are collected in a silver bead in the cupel. Instead of dissolving the bead in aqua regia and analyzing for gold by AA (Atomic Absorption), with a Gravimetric finish, the bead is immersed in nitric acid to dissolve the silver and it is then annealed. The gold is then weighed on a microbalance and then the final assay is calculated.

Soil samples are dried and screened through an 80 mesh sieve. A 30 gram charge is then taken from the minus 80 mesh fraction and the entire plus fraction is retained. The gold is then analyzed using (FA/AA). Assay values greater than 3000 ppb are then reassayed using FA/Gravimetric. Gold detection limits for FA/AA is 5 ppb and for FA/Gravimetric, 30 ppm. The minus fraction was sent for multi-acid Inductively Coupled Plasma Spectrometry (ICP). The ICP analysis detects 30 elements and the use of the multi-acid (HNO3-HCLO4-HFHCL) digestion liberates more elements than the aqua regia partial leaching process. The elements are then detected by their characteristic wavelength specific light, which can then be measured by the Inductively Coupled Plasma Spectrometer.

All TSL Laboratories employees are required to sign a Confidentiality Agreement and only management and supervisory personnel have access to results.

DATA VERIFICATION

As part of their in house quality assurance/quality control (QA/QC) program, TSL Laboratories inserts blank and standard samples in addition to repeat sample analysis. Ten percent of all samples are subject to in house repeat analysis when submitted for fire assay. Three percent of all samples submitted for ICP-MS analysis to TSL were subject to in house repeat analysis.

TSL in-house standards have been certified by external round robin. Certified gold standards can be purchased from a number of sources such as CDN Labs or Rocklabs, if required. Standards shall be inserted approximately every 20 samples, as well as two pulp duplicates and one geological blank in every batch with FA/AA work and three pulp duplicates for FA/Gravimetric work.

Ten percent of all samples are subject to in house repeat analysis when submitted for fire assay. Three percent of all samples submitted for ICP-MS analysis to TSL were subject to in house repeat analysis. Random additional repeats may also be analyzed as required. Results from all internal QC samples and repeats are reported. At the end of the drilling season a brief report on QC data is supplied (including means, standard deviations, control charts etc). If requested, a similar report can be generated for the Measurement of Uncertainty. All data collection is performed electronically after supervisory perusal, and transferred into the Certificate generation program. Final Certificate copies are reviewed by management for all aspects of quality assurance prior to signing. Reports are generated when first results become available, usually within 3 – 5 working days.

In April 2004, TSL Laboratories successfully completed the ISO/IEC 17025 Accreditation, and are Accredited Laboratory No. 538.

The author must rely upon the professional measures used by the employees of the companies who completed the work. The information in those reports is therefore assumed to be accurate based on the property visit and data review conducted by Mr. D. Besserer. The reports which were used as background information referenced in this Report in the “History” and “Geological Setting” sections (AR 10 864, Cook, 1982; Bailey, 1987; Dawson, 2006; AR 17 467, Gunn, 1988a; AR 17 468, Gunn, 1988b; AR 14 682, McClintock, 1985; AR 27245, Salat, 2003; Scott, 1986; AR 5 198, Westervelt, 1974).

The author conducted and managed reconnaissance exploration at the Property, as listed in the ‘Exploration’ section of this report. The exploration was designed to attempt to verify historical information, and test geological theories that the Property has the potential to host a sediment hosted bulk tonnage gold deposit similar to that which is being explored for at the adjacent Spanish Mountain Property. The author conducted a soil sampling demonstration to APEX staff at the initiation of sampling project and visited the property and conducted rock grab sampling thereon. Further to this, rock grab samples were collected by the author and by APEX staff as ‘replicate’ samples at the An-Kobra showings and elsewhere while prospecting. Historic results from the Joy Showing, Paddy Creagh Adit, Cedar Dam and Cedar Creek area were in most cases confirmed and the results received by APEX closely approximate those from An-Kobra (Figure 8). Sample markers for previously collected rock grab samples existed at specific sites as described by An-Kobra. Adits were visited to confirm their existence, the geophysical grids completed by An-Kobra were visited and the presence of cutlines and station markers were verified.

Subsequently, the author has no reason to doubt that exploration conducted by An-Kobra was completed in a manner consistent with normal exploration practices. Other exploration completed at the Property, as listed in the ‘History’ section in this report, prior to 2003, such as trenching, rock grab, rock channel and soil sampling and geophysical surveying are no longer evident other than the existence of the Paddy Creagh Adit.