REASONS TO INVEST (Source, Lowen,Ondaatje,McCutchen Ltd.)

The Northerly Location Accessibility Good: Despite Tyhee’s properties being located in NWT, they are reasonably accessible. Tyhee’s properties, totalling 12,635 hectares, are located within 95 kilometres of the city of Yellowknife, which has a population of 18,000 people. Yellowknife is the capital of the Northwest Territories and has a strong mining history with two old gold mines located within the city. The city hosts numerous companies which provide support to the mining industry. Tyhee’s properties are accessible by a seasonal winter road and by aircraft. A hydroelectric (Blue Fish Hydro) station is located 70 kilometres away and could be used to provide power to the project.

Cost Inputs From PEA Should Improve Moving To Pre‐feasibility‐: Tyhee has just raised $2.65 million, $1 million of which will advance its Yellowknife Gold project from a preliminary economic assessment (PEA) to a prefeasibility study and $650,000 will be used to explore the Clan Lake property further. $1 million will be used to advance permitting. The PEA was in some respects conservative with respect to some of the inputs. The following input parameters should see some improvement as the company moves towards pre‐feasibility. 1) The gold price used in the PEA was C$750 per ounce and is now trading at C$1000 per ounce. A higher base case for gold will be used in the pre‐feasibility. 2) The PEA used C$ par with the US$ and now the C$ trades at 92 cents US$. 3) The PEA used $140/barrel oil and oil is now trading at US$65 per barrel 4) the PEA used 35cents/KW hour, whereas if a hydro line is built from Blue Fish Power this could be reduced by 20 cents/KW hour. 4) The PEA used a resource of 1.64 million ounces, but subsequent drilling has increased the resource base to 2.116 million, meaning that the prospective mine life could be longer.

Typically when moving from a PEA to pre‐feasibility there is a valuation improvement as shown by the table and diagrams below. The reason for this is that the risk associated with the project decreases with better obtained information.

Exploration up‐side: The deposits which make up the Yellowknife Gold project come from the following sources. The largest is the Ormsby zone which contains 1.2 million ounces grading 3.42 grams per tonne. The Bruce zone is on the Ormsby property and is located adjacent and along strike from Ormsby, but it is small. The Nicholas Lake zone is located 6 kilometres from Ormsby and has a measured and indicated resource of 311,000 ounces grading 3.54 grams per tonne. The Clan Lake measured and indicated resource is 254,000 grading 3.12 grams per tonne. Exploration upside exists at all projects.

Clan Lake, in particular, has the potential in doubling its resource base and is likely to be amenable to open‐pit methods. ..........................................

I hope to have the entire 12 page LOM report posted here asap. Cheers, Baires