If mineralization can be extended along strike assuming the same
dimensions as on the most-drilled section, 93E, the Company can make an estimation of the exploration potential of the Cote Lake Deposit. As noted, mineralization has been traced for a distance of 600 metres to a depth of 400 metres, which may represent the potential depth of an open pit, and widths of 400 metres on the widest section. The volume of contained rock would be approximately 96 million cubic metres. As the mineralization envelope currently occurs in a "V" shape, the volume would be one half of this or 48 million cubic metres. Mineralization may not be as strong on outlying sections as on section 93E or mineralization could extend to an additional section in each direction; the potential volume could range from 40 to 50 million cubic metres. Utilizing a specific gravity of 2.65 tonnes per cubic metre would result in an estimated range of 100 to 130 million tonnes.
-- With an average intersection grade of between 1.0 and 1.4 g/t gold our current estimate on the Exploration Potential of the Cote Lake Deposit ranges between 3.5 and 6.0 million contained ounces of gold.
-- The Exploration Potential discussed here is not a resource category. Investors are cautioned that the potential quantity and grade described as 'Exploration Potential' is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.