GEOE

The Company monitors the QAQC information for the assaying process on a regular basis (standards and blanks sent to

assay laboratories and the duplicates and replicates done by the laboratories). The Author has reviewed this information

and found no serious discrepancies that had not been recognized and dealt with by the Company geologists.

The mineral resources are defined in terms of NI 43-101 regulations and their estimation was carried out using industry

standard polygonal longitudinal section methodology. The drill hole data was evaluated in plan and section in three

dimensional AutoCAD to determine continuity between holes. Vein structures in the RLM area have vertical extents

from 4 to 8 times their strike length. Because of this, areas of influence used around drill hole pierce points on the

longitudinal section for purposes of defining measured and indicated resources are ellipses, elongate down dip. For

measured resources an ellipse with short axis of 50 feet and long axis of 100 feet was used; and for indicated resources

an ellipse with short axis 75 feet and long axis 150 feet was used.

The Company’s production department uses Amine software for reserve estimation and mine planning. Amine is a 3D

AutoCAD based system that uses block modelling to determine reserve and resource estimates. The Author has crosschecked

the Amine methodology versus his polygonal longitudinal section methodology and has found no material

differences between the results of the two methodologies. Amine uses 3D modelling to determine volumetric

information for resources and beyond that step, the same tonnage factors are used to determine the tonnages. For

reserve estimation, the Author used the minimum mining width, recovery, and metal price criteria that are currently

used by the Production department. Cut-off grades were based upon current mining costs as presented in the economic

assessment of the Project.

The key assumptions used by the Author for conversion of measured and indicated resources to proven and probable

reserves are:

1) Resource tonnage factor 11.4 cubic feet per ton (equivalent to an average specific gravity of 2.8)

2) Minimum mining width 5 feet horizontal.

3) Mill Call Factor 95%

4) Mill Gold Recovery 93%

5) Gold price US$1200, Canadian$1260 at 1.05 exchange rate.

6) External cut-off grade 0.13 ounces per ton (based upon total operating costs of $165/ton and taking

into account mill gold recovery and the assumed price of gold).

7) Internal cut-off grade 0.10 ounces per ton (based upon total mining costs (ore delivered to mill) of

$123/ton and taking into account mill gold recovery and the assumed price of gold)..

The Author concludes that the work completed to date on the Property has demonstrated the presence of significant gold

reserves and resources that warrant additional surface and underground exploration and development programs with the

objective to confirm the geometry and continuity of the vein structures and to confirm sufficient measured and indicated

mineral resources to warrant completion of internal feasibility studies.

The economic assessment contained in this Report indicates that the Rice Lake Project is economically viable. The

following is a summary of key economic results.

(Canadian dollars unless indicated otherwise)

Life of Mine (“LOM”) 5.5 years

LOM Tons Mined 1,908,812

LOM Ounces Gold Produced 618,515

LOM Average Assumed Gold Price US$ 1200

LOM Average Breakeven Gold Price US$ 575

Total Revenue $778,898,235

Total Operating Costs $315,485,383

Cashflow from Operations (EBITDA) $463,412,852

Capital Costs $ 56,807,000

Cash Surplus before taxes $406,605,852

The economic assessment includes only measured and indicated resources, however, all of the development capital

required to convert the inferred resources to reserves and develop those resources has been included in the economic

assessment.

GEOE

Over a 5.5-year mine-life the project will generate $407 million cash surplus before taxes and cashflow from operations

(EBITDA) of $463 million (average EBITDA approximately $84 million per year). The breakeven life-of-mine gold

price is US$575 to allow for recovery of ongoing development capital expenses.

The project has positive cash flow from operations at gold prices in excess of US$575.

In Geoex’s opinion, given the current inventory of approximately 3.7 million tons of inferred resources and the long

operating history of the Rice Lake Project, it is probable that sufficient inferred resources will be converted to resources

to achieve a minimum of 10 years of mine life.