A

total of eight holes

were completed

during first-phase

drilling on the

Company's property

with ultramafic

intrusive rock

intersected in three

of the eight holes

representing three

unique bodies. Diamond drill holes MW-02 and MW-08 identified a thick (over 80 metres) peridotite

intrusive body, which closely resembles the host peridotite of the Eagle One nickel-copper discovery.

Although the holes were designed to test a number of discrete geophysical anomalies identified

through the ground program, the amount of sulphides observed in the core did not provide an

explanation and further work is required. Drill hole MW-01 was collared to test the "mafic" dyke

identified in outcrop during the winter geophysical program and intersected two separate ultramafic

dykes at depth. Assay results for the core samples are pending.

Owing to the presence of potential nickel-PGE host rocks and the lack of explanations for the

geophysical and geochemical anomalies, the Company is now planning further geophysical programs

on the property. A VTEM survey is has been completed over the McFauld’s West property and is

expected to be followed by a deep-penetrating, high resolution ground geophysical survey. The

second ground program will be used to narrow the spacing of the initial program in order to better

resolve the anomalies and provide more accurate drill targets for a Fall program.