STRIPPING REPORT ON MINING CLAIM McTAVISH TOWNSHIP CLAIM MAP # G-0675

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1 STRPPNG REPORT ON MNNG CLAM McTAVSH TOWNSHP CLAM MAP # G ONTARO LTD. Client No John Street Road Thunder Bay, On P7G 1H9 Report Completed - September 08, 2012 PURPOSE OF PHYSCAL WORK n August 2012 stripping and minor excavations were performed on Claim TB in 6 separate locations to determine the extent and quality of the sandstone deposit and provide access to these areas for future core sampling. A total of 3 days were spent by John McRae mobilizing equipment and stripping and excavating the noted areas. The claim is in good standing and registered in the name of Ontario Ltd. LOCATON OF PROPERTY AND ACCESS The claim is located in McTavish Township (N ~ of SE X Section 12, Con 6) approximately 1 km northeast of Hwy 587 and 200 metres north of the now abandoned CN Railroad at Mile Kinghorn Subdivision. Access was gained off Highway 587 by truck and along abandoned railroad bed and logging trail by quad. PREVOUS WORK PERFOMED Re-Cutting of boundary lines of claim in September LOG AND WORK PERFORMED August 13, Mobilizing Equipment and Trail Clearing 9:00am- drive from 1457 John Street Road, Thunder Bay, Ontario to Stirrett Bay, Dog Lake, Ontario to pick up Backhoe and drive backhoe to gravel pit on Bolduc Bay Road for float pickup. Load on Float (Ron Connell Trucking) Return to 1457 John Street Road. Travel Time- 3 hours (105 km). 5:00pm- Travel to Pass Lake, Ontario to meet Float and off load Backhoe. Drive backhoe to claim.

2 6:00pm- start clearing trail 8:00 pm- walk back to truck located on rail siding and travel back to 1457 John Street Road, Thunder Bay, On. Arrive at 9:40 pm. AUGUST 14, Stripping and Pit Excavation 8:30am- Left 1457 John Street Road... Drive to Pass Lake, Ontario (Hwy 587 and CN rail line) 9:10am- arrived at railroad siding... off load quad and drive to backhoe location 9:40am -arrive at trail location and start clearing access trail 5 metres wide x 75 metres to stripping site. Light brush and windfalls were cleared. 12:30 pm - start stripping light overburden and vegetation with Terex 760B Backhoe Strip Areas #1, #2, #3. Encountered pinkish to tan sandstone in Area #1, #2, #3. No significant fracturing was noted. 4:00pm- stripping co mpleted Small Pit was excavated in Area #1 (N 48 deg 34'19.9" W 088 deg 43'07.8") 1 metre x 1 metre deep off rock face to bedrock. Encountered overburden and fractured sandstone to a depth of 1 metre and then bedrock. Bedrock type was not known due to water forming in bottom of excavation. See photos attached re Area 1. 4:30pm- Excavate pit in Area #2 (N 48 deg 34'16.9" W 088 deg 43'08.3") Excavated pit 1 metre x 1.5 metres deep off rock face to bedrock. Encountered overburden and fractured sandstone to a depth of 1.5 metres and then bedrock. See photos attached re Area 2. Clear ledge face of overburden N 48 deg 34' 17.2" approximately 15 metres long x.75 metres high. Encountered red dolomite at south end. See photos attached re Area 2 Ledge. 5:30pm- work completed. 5:50pm- returned to truck, load quad 6:15pm- travel to 1457 John Street Road 7:00pm -arrive 1457 John Street Road SEf-1 1 B 2012 G C

3 P~GE. 3 of 3 AUGUST 15, Trail clearing and Stripping 10:45 am- left 1457 John Street Road 11:20 am- arrive at railroad siding, offload quad, drive to backhoe. Move to south side of logging trail. Cleared 14 metres of trail to Area #4. Cleared large boulders and mature trees for backhoe access. 1:00pm- start stripping Area #4- (N 48 deg 34' 11.1" W 088 deg 43'05.7")- light overburden, vegetation and windfalls. Stripping revealed tan sandstone. No significant surface fracturing. 3:10 pm- moved east to location (N48 deg 43' 15.1" W 088 deg 43'00.2" ). Excavated overburden to depth of 1.2 metres and encountered fractured red dolomite. See photo Pit 1. 4:30pm- moved to location (N 48 deg 34' 20.6" W088 deg 42'98.4" ). Removed light overburden and exposed red dolomite with unidentified grey stone, possibly gunflint. 5:21pm- drove back to quad 5:50pm- arrived at truck, loaded quad, drove back to Thunder Bay 6:20pm - arrived at 1457 John Street Road AUGUST 16, Equipment Mobilization 5:30am- left 1457 John Street Road 6:10am- arrived at railroad siding, walked to backhoe location, drove backhoe out to railroad siding and Highway 587 for float pickup 7:30am - t ravel to 1457 John Street Road 8:15am- arrived at 1457 John Street Report prepared by: John McRae Ontario Ltd. Client No

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