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These estimates at the Sugarloaf Peak Gold Project are of historic resources and the Company's geologic team has not yet completed sufficient work to confirm a NI 43-101 compliant resource. Therefore, the estimates cannot, and should not be relied upon. The Sugarloaf Peak historical, non-43-101 compliant resource estimate was reported in N.R. Dausinger Jr, 1983 and N.R. Dausinger Jr., 1987 using a polygonal estimate of all drill holes that had gold assays and there have been no subsequent resource estimations. Dausingers' reports are included in Goldsmith, 2008, 43-101 Technical Report on the Sugarloaf Peak project.
The report describes a number of historic non-NI 43-101 compliant resource estimations including 100 million tons at ~ 0.5 g/t gold average grade for a total of 1.5 million ounces gold from shallow drilling averaging less than 130m depth. A more recent report describes a higher grade historic, non-NI 43-101 compliant, estimated resource of 60 million tons of ~ 0.6 g/t average grade for a total of 1.2 million ounces gold with mineralization open to depth and along strike. The historic estimates appear reliable based on the data available at the time and are relevant for the volume of mineralization drilled at that time. Additional drilling that was completed subsequent to N.R. Dausinger Jr., 1987 and prior to 43-101 procedures has not been taken into account as there are no rock sample material remains, and no attempt been made to calculate a new resource estimation. Designer's estimation is at the inferred resource level of certainty and includes tons, cut-off grade, average grade at various levels which is consistent with the CIM definitions. This historic resource estimation along with other estimations is summarized in the NI 43-101 technical report which is filed on www.sedar.com.