The Company maintains a 5% net smelter royalty on 10 unpatented mining claims in Dubuisson

Township, located approximately five kilometres from Val d’Or, Quebec. The claims form part of the

Goldex Mine property owned by Agnico-Eagle, which was originally discovered in the 1960s. As the

Company maintains only a royalty interest in the 10 claims, it is not responsible for any exploration work

that is carried out on the property.

Initial feasibility studies of the Goldex Mine were completed in 2004 and results from a recent bulksampling

program have been announced by Agnico-Eagle. An 18,213 ton sample taken from three

raises spanning 1,000 feet with a vertical distance of 650 feet returned a grade of 0.081 ounces of gold

per ton, exceeding that of an earlier bulk sample taken in 1996, which returned 0.074 ounces per ton. In

response to these results, Agnico-Eagle proceeded with a final feasibility study and announced on

October 27, 2005, that a new mine would be built at Goldex. The Goldex Mine was approved for

construction by Agnico’s board and official production at the mine began in June 2008, processing ore

from outside the royalty boundary.

As the 10 unpatented mining claims of the Goldex Mine royalty only form part of the Goldex Mine project,

and as the Company does not know whether any part of these claims will be mined under the current

mine plan, it is not possible to determine at the present time to what extent royalty payments, if any, might

be received by the Company pursuant to the terms of the Goldex Mine royalty. The Company will

continue to watch for future developments regarding the Goldex Mine from Agnico-Eagle, as the royalty

interest has the potential of generating revenues that will help finance exploration on existing and future

projects.