Carmi, BC

CARMI, BC PROJECT (Molybdenum) – The Carmi Project is a Hi Ho’s premier advanced stage molybdenum exploration/development project. Hi Ho is the 51% owner of (2,873 hectares – 7,184 acres) of this property through an Option agreement where all option terms have been met. An amending agreement dated October 16, 2008 between the Company and the optionor provides that the Company can increase its interest in the Carmi property from 51% to 100% by paying $750,000 ($250,000 paid) and issuing 3,500,000 common shares of the Company within six months of signing a formal agreement. (Agreement not finalised)

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In 2008, an NI 43-101-compliant resources report was commissioned which provided the following drill-indicated resource estimates based on a 0.026 Mo cut-off grade:

• Indicated Resource: 12,906,000 tonnes @ 0.058% Mo (16.5 million tonnes Mo)
• Inferred Resource: 27,385,000 tonnes @ 0.056% Mo (33.5 million tonnes Mo)

The property consists of 2,873 hectares located in the east Okanogan andarea of South Central British Columbia, approximately 50 kilometers east of Penticton, BC. The showings that contain the above resource estimatess, all of which are potentially open pit-table, were first discovered in 1960 by Kennco Explorations (Western) Limited.
Between 1961 and 1990 several other companies drilled over 221 holes that defined the grade and size of the flat-lying Main Zone deposit (1,500 m X up to 700 m wide X 110 m thick) which consists of several discrete sub-zones. These include the following:

• “E” Zone (17 million tonnes @ 0.063% molybdenum (0.105% MoS2).
• Lake Zone (3.7 million tonnes @ 0.066% molybdenum (0.110% MoS2)). and, located 750 meters east.
• A third higher grade zone underlying the Lake Zone is estimated to contain 4.5 million tonnes @ 0.2% molybdenum (0.33% MoS2).

Plans in 2011 include additional exploration to fully delineate known potentially economic mineralization that is currently open in all directions and depths. Deposit extensions will be identified w/ regular andand exotic (Mobile Metal Ions) geochemistry, and Induced Polarization geophysics. In-fill drilling of up to 65 holes (7,900 m) will up-grade the Inferred to Indicated Resources. Ten step-out holes (1,100 m) will attempt to expand known resources.