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Rimfire Minerals Corporation

1998 GEOLOGICAL AND GEOCHEMICAL PROGRAM ON THE ARMOUR PROPERTY

Located near Barriere Kamloops Mining Districts

NTS 92P/l E 51” 09’ North Latitude

120” 06’ West Longitude

-prepared for-

RIMFIRE MINERALS CORPORATION 207-675 West Hastings Street

Vancouver, B.C., Canada V6B 1 N2

-prepared by-

David A. Caulfield, P.Geo. EQUITY ENGINEERING LTD. 207-675 West Hastings Street,

Vancouver, B.C., Canada V6B 1 N2

January &j&0EOwx&, Sww~Y RR’,hPI’%x I”&~~~S&$$.q~ &I$jYCR” Y.. Jl,I

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TABLE OF CONTENTS

SUMMARY 1.0 INTRODUCTION 2.0 LIST OF CLAIMS 3.0 LOCATION, ACCESS AND GEOGRAPHY 4.0 PROPERTY EXPLORATION HISTORY 5.0 1998 EXPLORATION PROGRAM 6.0 REGIONAL GEOLOGY 7.0 PROPERTY GEOLOGY

7.1 Main Showing 7.2 South Showing

8.0 GEOCHEMISTRY 9.0 DISCUSSION

APPENDICES

Appendix A Bibliography Appendix B Statement of Expenditures Appendix C Rock Sample Descriptions Appendix D Certificates of Analysis Appendix E Soil Sample Statistics Appendix F Geologists Certificate

LIST OF TABLES

Table 2.0.1 Claim Data Table 4.0.1 Drill Hole Survey Data Table 7.1.1 Rock Sample Results - Main Zone and Area Table 7.1.2 Significant Drill Intercepts - 1986 Drilling Table 7.2.1 Rock Sample Results - South Zone

LIST OF FIGURES

Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure IO Figure 11 Figure 12

Following Paae

Property Location Map .I. Claim Map .I. Regional Geology -Pocket- Property Geology -Pocket- Main Showing Area .4. South Showing Area .4. Cu (ppm) in Soils and Till .5. Pb (ppm) in Soils and Till .5. Zn (ppm) in Soils and Till 5. Au (ppb) in Soils and Till .5. Ag (ppm) in Soils and Till .5. As (ppm) in Soils and Till .5.

1998 GEOLOGICAL AND GEOCHEMICAL PROGRAM ON THE ARMOUR PROPERTY

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I SUMMARY

The Armour claim, consisting of 20 units, covers Mount Armour which is located immediately east of Barriere in south central B.C., 65 kilometres north of Kamloops. The property is accessible by truck and much of the property can be accessed by a network of logging roads and skidder trails. The claim is ideally situated adjacent to a major power line, the CN railroad mainline and the Yellowhead Highway. The property is owned 100% by Rimfire Minerals Corporation with no underlying royalties.

The property was staked for Rimtire Minerals Corporation in October 1997 to cover two massive sulphide showings: Main and South showings. These showings were first discovered in the early 1900’s. In 1979, Craigmont Mines Limited carried out soil geochemical and geophysical (VLF, mag) surveys. Craigmont noted coincidental soil and VLF anomalies with the sulphide showings; .however, a recommended drill program was not carried out. Corporation Falconbridge Copper (Minnova) conducted soil geochemistry (1293 samples), IP geophysics and 410.3 metres of NQ core drilling in five holes in 198586. They were successful in targeting the Main Zone mineralization, cutting massive sulphide mineralization in two holes. The best intercept, in hole AR #I, contained 4.10% Zn over 1.04 metres. Hole AR #4 failed to intersect the South Showing due to the positioning and orientation of the hole. Holes AR #3 and AR #5 failed to explain the soil geochemistry at which they were targeted.

The property is underlain by mafic metavolcanics, chert, argillite, wacke, tuffs, quartz pebble conglomerate and massive sulphides of lower units of the Paleozoic Eagle Bay Assemblage. In the Adams Plateau-Clear-water area, the Paleozoic metasedimentary and metavolcanic stratigraphy host Kuroko-type, polymetallic precious and base metal VMS deposits in the upper part of the Eagle Bay Assemblage and Cyprus-type, Cu-Zn dominant, VMS deposits in the Fennell Formation.

The Main and South showings consist of multiple lenses of syngenetic fine-grained, pyrite laminae crosscut by coarse-grained pyrite in blebs, stringers and quartz veinlets hosted in argillitelphyllite. Sampling of both showings returned anomalous CuAu values with low Pb, Zn and Ba. The 1986 drilling and soil geochemistry indicate that metal zonation does occur and that higher Ag, Pb and Zn values can be expected elsewhere. The sedimentary-dominant stratigraphy of the Armour property would seem to indicate that the mineralization occurs in a Besshi-type environment.

The sulphide occurrences lie within a 650 by 600 metre area of anomalous Cu-Pb-Zn-Au-Ag soil geochemistry and are coincidental with VLF-EM conductors. The drilling has shown that individual lenses can reach thicknesses of 7.8 metres and better base metal values can be expected. It is on this basis that further work is fully recommended. The next phase of exploration would entail completion of the 1985 grid restoration, prospecting and detailed surticial and bedrock geological mapping. The soil grid should be extended south and the grid surveyed with more sophisticated EM, before targets are selected for drilling or trenching.

Err”@’ Engineering Ltd. _

1 1.0 INTRODUCTION

The Armour property is centered over Mount Armour, immediately east of Barriere, in south central B.C. (Figure 1). In October 1997, Rimfire Minerals Corporation acquired the property by staking.

The massive sulphide occurrences were likely discovered on Mount Armour in the early 1900’s. A local prospector conducted limited drilling in the late 1960’s with inconclusive results (Vollo, 1980). In 1979, Craigmont Mines carried out soil geochemistry and magnetometer/VLF geophysical surveys, although anomalies defined by their work were never followed up. In November 1985, Corporation Falconbridge Copper, under option to Cutty Resources Inc., established a grid covering the known showings, carrying out soil and geophysical surveys. Its successor company, Minnova Inc., conducted a five hole diamond drill program the following November, intersecting massive sulphide horizons in two of their holes.

From October 13 to 15 of 1998, Rimfire Minerals Corporation conducted a limited .exploration program on the Armour property concentrating on mapping and sampling the two massive sulphide occurrences and determining whether the 1985 grid could be re-established, which would allow the 1985 soil results to be integrated with future surveys. This work was completed by Equity Engineering Ltd. which has also been retained to report on the results of the fieldwork.

2.0 LIST OF CLAIMS

The Armour property is comprised of one 20 unit modified grid claim block within the Kamloops Mining District (Figure 2). The legal corner post is located along the Dixon Creek access road and its position was noted by the author. The Armour property is owned 100% by Rimtire Minerals Corporation. The expiry date listed is subject to approval of assessment work covered by this report, The surface rights on the property are held by private individuals or corporations.

Table 2.0.1 CLAIM DATA

Claim Name Armour

1 Mineral Tenure No. j No. of Units 1 Kecord Date 359822 20

1 txpuy Year I October16, 199/ I 2000

3.0 LOCATION, ACCESS AND GEOGRAPHY

The Armour property is located immediately southeast of the town of Barriere, 65 kilometres north of Kamloops, B.C. (Figure 1). The property is accessed from the Dixon Creek Road, on the east side of Mount Armour, 1.9 kilometres north of the junction with the Squaam (Agate) Bay Road. The property is crossed by a series of logging roads, most of which are easily traversed with a two-wheel drive vehicle. The area is centred at 51“ 09’ north latitude and 120’ 06’ west longitude (map sheet 92P/lE). The property is adjacent to the Yellowhead Highway, the CN railroad mainline and has a power line cutting through the west side of the property. Exploration programs are best accessed out of the town of Barriere which has motels, restaurants and outlets for basic supplies.

The property covers most of Mount Armour which rises fairly steeply from the North Thompson River valley at approximately 425 metres to over 750 metres on the north peak of Mount Armour. The massive sulphide showings occupy the rolling, southern part of Mount Armour. It is sparsely forested, consisting of grasslands with pine and Douglas fir which are being selectively logged by locally-based sawmill operations. The climate is typical of Interior B.C., having hot dry summers with temperatures reaching +35” C. and colder winters to -30” C. No permanent water exists on the property. Outcrop exposure is variable depending on steepness of terrain; in the immediate area of the massive sulphide showings, outcrop exposure is less than 5%.

4.0 PROPERTY EXPLORATION HISTORY

Hand trenching on the massive sulphide occurrences on Mount Armour probably dates back to the early 1900’s. A local prospector, J.A. Fennell attempted to drill the Main Showing in the late 1960’s with inconclusive results (Vollo, 1980). Spilt sections of core from this drilling are located near the Main Showing (Figure 5).

Equity Engineering lxl. _

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In 1979, Craigmont Mines Limited carried out soil geochemistry and magnetometerA/L~ geophysical surveys over the sulphide showings (Vollo, 1980). Soil samples (340) were collected at 50 metre intervals on lines 100 metres apart. The -80 mesh soil fraction was analyzed for Cu, Pb, Zn and Ag. Approximately 20 kilometres of grid was chained and surveyed by VLF-EM (Ronka EM-16) and magnetometer (Geometries G-836). The magnetometer survey indicated low magnetic relief. Vollo (1980) noted a correlation between geochemical highs, VLF conductors and massive sulphide exposures and recommended drilling, although this recommendation was never followed up. The axis of Fraser-filtered EM anomalies are shown on Figure 4.

In November 1985, Corporation Falconbridge Copper, under option to Cutty Resources Inc. established a grid covering the known showings, carrying out a soil survey (Pirie, 1986). Falconbridge conducted 10.4 kilometres of linecutting and collected 1292 soil samples for Cu, Pb, Zn, Au, Ag and As analyses on the -80 mesh fraction using aqua regia-atomic absorption and ICP analytical techniques. The baseline is oriented 330”/150” with stations spaced 12.5 metres apart on crosslines every 50 metres or, in the case of mineralized areas, every 25 metres apart. Sometime after this program but prior to drilling the following year, Falconbridge conducted an induced polarization (IP) survey. As this work was not filed for government assessment, details of the IP survey are not known although anomalies from this survey are highlighted in the drill report (Pine, 1987) and presented on Figure 4.

The following November, Falconbridge’s successor company, Minnova Inc., conducted a five hole, NQ diamond drill program. The program was designed to test the known showings and some of the soil geochemical anomalies; two of the holes intersected massive sulphide horizons. A summary of drill survey data is contained rn Table 4.0.1. The whereabouts and condition of the core from this program is not known.

Table 4.0.1 DRILL HOLE SURVEY DATA

Hole Aztmuth DIP Depth Grid South Grad West (m) Coordinates Coordinates

AH #I 215” 50” 15 / 235 125 AR #2 215” 150” 84:1 184 140 AR #3 215” -50” 102.1 230 230 AR#4 140 -60” 54.5 490 225 AR #5 120” -50 93.9 737 088

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5.0 1998 EXPLORATION PROGRAM

The 1998 work program was directed at examining and sampling the two massive sulphide occurrences and determining whether the 1985 grid could be re-established. Sixteen rock samples were collected; three of these were analyzed for whole rock. Field locations are marked by metal tag and a combinatron of pink and blue flagging. Samples were shipped to Chemex Labs to be analyzed for Au, Ba and 32 elements by ICP. The three whole rock samples were analyzed by XRF. Rock sample descriptions, analytical procedures and complete results are included in the appendices (Appendix C and D). For completeness, two samples collected during the first examination of the property in 1997 have been included in this report. A magnetic declination of 20” 17’ east of true north was used for all compass work. The UTM grid on the report figures use NAD-83.

The 1985 grid baseline was reestablished between OOON and 500s. Crosslines 2OOS, 250s and 500s were re-run 400, 400 ,and 275 metres, respectively, to the west, On these lines, enough old pickets were found to be confident that the 1985 grid can be re-established and used in future surveys.

6.0 REGIONAL GEOLOGY

The Armour property lies along the western margin of, the Omineca Belt. This portion of the Shuswap Highland is bounded by high grade metamorphic rocks of the Shuswap Complex to the east and rocks of the lntermontane Belt to the west (Schiarizza and Preto, 1987). The regional geology map (Figure 3) has been extracted from Schiarizza and Preto’s Figure 4, “Geology of the Adams Plateau - Clearwater - Vavenbv Area” (Paoer 1987-2).

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The area covers a belt of structurally complex, low-grade metamorphic rocks of Paleozoic Eagle Bay Assemblage (Units EB) and Fennell Formation (Units uF, IF). The Eagle Bay Assemblage has been intruded by Late Devonian orthogneiss (Unit Dgn). The Paleozoic strata are cut by the Cretaceous Raft and Baldy batholiths (Unit Kg) and Early Tertiary dykes (Unit qp). Eocene sedimentary and volcanic rocks of the Kamloops Group (Units eTc, eis) and Miocene lavas (Unit Tb) overlie all other units.

The Eagle Bay Assemblage is Early Cambrian to Late Mississippian in age. From oldest to youngest, the Eagle Bay is comprised of: quartzites and quartose schists ,(Unit EBH); mafic metavolcanics and fossiliferous limestone (Unit EBG); grit, phyllite, limestone, chert and metavolcanics (Units EBQ, EBS); calcareous phyllite, talc-silicate schist, skarn and mafic metavolcanic rocks (Units EBL, EBK, EBM) and felsic metavolcanic and metasedrments (Units EBA, EBF, EBM). The Late Devonian orthogneiss which intrudes Eagle Bay strata is probably related to the felsic volcanics. The Devonian to Permian Fennell Formation consists of oceanic rocks of the Slide Mountain terrane which have been thrust onto the Eagle Bay Assemblage. The Fennell Formation is thought to be partially coeval with the Eagle Bay, forming in a deep oceanic basin an unknown distance to the west (Schiariua and Preto, 1987).

The Paleozoic strata have been separated into four structural slices by southwesterly-directed thrusting and folding. This deformation resulted in the dominant regional schistosity found throughout the area. This fabric has been modified by northwest-trending mesoscopic folds and later west-trending folds. The youngest structures are northeast-trending strike slip faults and later northerly trending faults, and associated folds in the Eocene.

The Devono-Mississippian felsic and intermediate metavolcanic rocks of the Eagle Bay Assemblage are host to several Cu-Pb-Zn-AgAu-Ba Kuroko-type volcanogenic massive sulphide (VMS) deposits near Adams Lake including the Rea deposit and Homestake prospect (Figure 3). The Rea deposit has an indicated reserve of 378,000 tonnes grading 0.33% Cu, 2.20% Pb, 2.30 Zn, 69.4 g/t Ag and 6.1 g/t Au for two lenses (B.C. Minfile). Silver-lead veins were extracted from the nearby Samatosum Mine on the northern slopes of Samatosum Mountain. The mine operated between May 1989 and September 1992. The Fennell Formation hosts Cyprus-type Cu-Zn-Ag-Au-Co VMS deposits such as the Chu Chua deposit 25 kilometres north of the Armour property.

7.0 PROPERTY GEOLOGY

The Armour property is underlain by mafic volcanics, cherts, argillites, wackes, tuffs, quartz- pebble conglomerates and massive sulphides of the Lower Cambrian to Devonian Eagle Bay Assemblage (Pirie, 1987). Schiariua and Preto (1987) place the outcrops of Mount Armour in the units EBS and EBM, lower units of the Eagle Bay Assemblage. The primary lithologies have been deformed such that rock units are foliated into schist, quartzite and phyllite units. Foliation attitudes trend northwest with moderate northeast dips. Although the foliation is generally consistent, the structural picture is certainly more complicated as witnessed by the bedding and foliation measurements of the interbedded chert and phyllite in the South Showing area (Figure 6).

7.1 Main Showing (Figure 5)

The Main Showing has been exposed over an area of 10 by 20 metres and is coincidental with strong Au, Ag and Cu soil geochemistry. The exposure consists of multiple lenses of semi-massive to massive pyrite hosted in dark grey, siliceous argillitelphyllite. In the area! the foliation of rock units strike northwest and dip 40”~50” to the northeast whereas the massive sulphrde laminae strike 270” and dip north. The showing consists of fine-grained pyrite laminae crosscut by coarse-grained pyrite in blebs, stringers and quartz veinlets. The showing weathers to a dark reddish brown mixture of goethite and hematite. The grab samples (#130436-130441) that were collected throughout the exposure returned very consistent values (Table 7.1.1). The immediate footwall to the mineralization is not exposed but outcrops to the north, and in a trench to the south, indicates that sericite-altered muscovite schist/quartzite occur in the structural footwall. These, in turn, overlie more argillaceous units.

Table 7.1.1 ROCK SAMPLE RESULTS

MAIN ZONE AND AREA

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Sample Type Wtdth A A (pp: (ppn!

A Number (m) (ppmS

0 (ppm:

C

4941 t-l t (ppmy

Pb L (Ppm) (ppm;

4942 Gr: R$ 10 <O.l%

280 l:o 23:

co.1 % 1445 8 40 130434 Float 280 1.0 1370 40 130435 Float n/a 620 1.6 1: 2360 289: 130436 Grab 0.45 250 0.6 ;; 936 2; 130437 Grab 0.70 240 0.8 ;: 1305 20 75: 130438 Grab 2.15 255 0.8 ;;: <IO 1670 22 130439 Grab 0.70 245 1.2 20 <IO 2030 :: 130440 Grab 0.60 125 0.6 130441 Grab 3.00 400 1.2 :;f

Cl0 652 1: 60 <IO 1575 28 74

One hundred metres to the north of the Main Showing, two massive sulphide float boulders (#130434, #130435), located in the spill pile between two excavator trenches, returned similar metal values to the Main Zone. Although these boulders resemble the Main Zone mmeralization, they could not have been from the Main Showing. As the trenches failed to reach through the basal till to bedrock, it can assumed that the boulders excavated from the trench also came from the basal till. The source of these boulders is up-ice to the northwest.

It appears that similar argillite-hosted, massive pyrite lenses were intersected in Minnova holes AR #I and #2, although the mineralization in hole AR #I contains higher zinc and lower gold values. The 7.80 metre intercept in AR #2 (64.02 to 71.82 m.) has metal values more in line with the surface showing. The intersections in both holes are described in the drill logs as banded, 65-85% fine- and coarse-grained pyrite with trace chalcopyrite and sphalerite! hosted in interbedded chert and argillite/phyllite (Pirie, 1987). This description would aptly descnbe the surface showing. Table 7.1.2 lists all intercepts with er HO00 ppm Cu or Zn.

Table 7.1.2 SIGNIFICANT DRILL INTERCEPTS

1986 DRILLING

Hole I-rom (m)

AK #I AR #I 19:71 20:11 0:40 15 I:8

1350 12 4406 895 61 5950

AR #I 20.11 20.46 0.35 6: 1.7 200 AR #I 21.10 22.14 1.04 1.9 2900 :; 4:::: AR #I 59.87 60.27 0.40 5 0.4 138 24 3000

5 The intercepts in hole AR #3 correspond to areas of pyrite- and sphalerite-bearing stringers in

chert and siltstone. Pirie (1987) interpreted this mineralization to be a feeder zone to the massive sulphide mineralization.

7.2 South Showing (Figure 6)

The South Showing massive sulphide occurrence is very similar to the Main Showing in terms of appearance and metal values (Table 7.2.1). The massive sulphide lens is exposed in a hand trenched pit measuring 4.0 by 2.5 metres. The sulphide lens is hosted in argillite, striking 295” and dipping 40” northeast. As in the Main Showing, two types of pyrite mineralization occur: fine-grained laminae and coarse-grained, often crystalline pyrite in blebs, stringers and quartz veinlets. Minor chalcopyrite and malachite were noted in boulders excavated from the pit.

Table 7.2.1 ROCK SAMPLE RESULTS

SOUTH ZONE

Sample Type Wtdth A A A B C Pb z Number (ml (PP~U) (ppm! CppmS (p:m? (ppmy (ppm) (pprl 130442 G b 130443 G:b Rep. 145 2:o 20 10 1495 62 64

The orientation (140”/-80”) of hole AR #4 was such that the hole was collared and drilled in the interbedded chert and phyllite which lies in the footwall of the massive sulphide. A better collar location for this hole would have been northeast of the pit with the hole drilled on an azimuth of 215”.

6.0 GEOCHEMISTRY

Although no soil samples were taken during the current program, hand plotted results from the 1985 program were entered into a database and plots generated (Figures 7-12). The grade ranges illustrated on these figures correspond to the 80’” and 95’” percentiles from this data set (Appendix F). In addition, the government conducted a till survey in the summer of 1997; some of these samples were taken on Mount Armour (Bobrowsky et al, 1998). Again, these sample results are shown on their respective elemental plots. The grade ranges selected for the till samples are calculated from data from the 1997 survey (92P/l, 92P18) and a 1996 survey (Bobrowsky et al, 1997) from the adjoining map sheets (82M/4, 82M/5). The till samples were taken at an average depth of 1.7 metres; soil samples would have been taken at depths of 30 centimetres or less. Multi-element till anomalies, highlighted by elevated Au, Ag, As, Bi, Cu, Pb: Sb and Zn values, occur in samples taken from Mount Armour. Some of these anomalies may be derived from down-ice dispersion from the known occurrences. One of the their samples (#979377) lies west of the showings and must come from another source to the northwest (Bobrowsky et al, 1998). This sample contained elevated As, Ag, Co, Mg, Pb and Zn values. The government geology branch has undertaken further more detailed till sampling on Mount Armour; the results of this survey will be released later this spring.

The interpretation of the anomalous areas shown from the Falconbridge 1985 survey is affected by down-ice dispersal (NW to SE) if the sample is from basal till covering the rolling topography in the area of the two massive sulphide showings or down slope dispersion if the sampled material is colluvium or colluviated till on steeper side hills. Complicating this interpretation are areas of outcrop or shallow bedrock on the top of Mount Armour where anomalous residual soils indicate source areas in the immediate area of sampling. This is certainly the case of the high Au soil values (L25OS, 15OW - 2230 ppb) over the Main Showing which pokes through an area of mostly till cover.

Except for some isolated Au, Ag and As values, anomalous soil values are found south of line 150s extending to the southern limits of the survey. The anomalous Cu-Pb-Zn-Au-Ag soil geochemistry covers an area of 850 by 600 metres and has not been adequately explained by the known mineralization or drilling to date.

Equity EngineeringUd._

6 a.0 DISCUSSION

The Armour Minfile occurrence consists of two massive sulphide showings some 300 metres apart on the top of Mount Armour. Both occurrences are hosted in argillite, and have similar mineralogy :dominantly pyrite), metal suite &u-Au) and appearance (both epigenetic and syngenetic sulphides). The presence of massive sulphide boulders in basal till 100 metres north of the Main Showing suggests :he this same type of mineralization extends still further to the north. The mineralization occurs in Unit EBS, a lower member of the Lower Cambrian to Devonian Eagle Bay Assemblage. This mineralization s not likely correlative to the Kuroko-type VMS occurrences in the Adams Lake area (Rea deposit and iomestake prospect); these occurrences occur in Unit EBA which is higher in the Eagle Bay 4ssemblage. In addition, the lack of arsenic and barium values, and the lack of appreciable felsic dolcanics differentiates the Armour mineralization from the Adams Lake occurrences. The dominantly sedimentary character of the Armour property would indicate that this mineralization occurs in a more 3esshi-type VMS environment.

Previous exploration has shown that the sulphide showings lie within a large Cu-Pb-ZnAu-Ag soil anomaly measuring approximately 650 by 600 metres. To date, the only serious drilling campaign, n 1986, has been successful in testing the Main Zone (1.04 m. of 4.1% Zn in AR #I) but attempts to drill :he South Zone (AR #4) and the remainder of the soil geochemistry (AR #3, AR #5) have been largely Jnsuccessful.

The 1998 work program has shown that the 1985 grid can be re-established and this work should 38 continued in the next program. In order to interpret the soil results, detailed terrain and surficial. geology mapping should be completed over the grid. The grid should be extended to the south and. southeast to close off the soil anomalies trending in this direction. With detailed geological mapping and 3 more sophisticated electromagnetic survey (Maxmin or UTEM), targets would be better defined for trenching or drilling. It does not appear that prospecting was conducted during the 1970’s and 1980’s Jvork program and hence, prospecting should be incorporated in the next field program.

Prior to the next field program, an attempt to secure additional data from lnmet (successor company to MinnovalFalconbridge) should be made. Complete ICP results, geological maps and details 3f the IP surveys remain outside of the public domain as they were not filed with government. The 1986 drill core, if available, should be located and relogged.

In summary, the Armour property remains largely untested; the limited work to date has failed to explain or locate the sources of a significant soil geochemical anomaly within a geological setting that has been shown to host syngenetic massive sulphide mineralization. With the excellent access throughout the property, the next phase of exploration will be cost-effective relative to other B.C. projects. The property location, adjacent to power and transportation infrastructure, is ideally situated if a deposit is discovered.

Respectfully submitt

Vancouver, British Columbia January, 1999

APPENDIX A

BIBLIOGRAPHY .

BIBLIOGRAPHY

3.C. Minfile 092P 051

3obrowsky, P.T., Leboe, E.R., Dixon-Warren, A., Ledwon, A., MacDougall, D. and Sibbick, S.J. (1997): Till Geochemistry of the Adams Plateau - North Barriere Lake Area (NTS 82M/4 and 5); Ministry of Employment and Investment; Open File 1997-9.

3obrowsky, P.T., Paulen, R., Little, E., Prebble, A., Ledwon, A. and Lett, R. (1998): Till Geochemistry of the Louis Creek - Chu Chua Creek Area (NTS 92PllE and 92P/8E); Ministry of Energy, and

Pirie,

Pirie,

Mines; Open File 1998-8.

D. (1986): Geochemical Report, Mount Armour Project; Report submitted to the Ministry of Energy, Mines and Petroleum Resources (#15,248).

,D. (1987): Diamond Drilling Report, Mount Armour Project; Report submitted to the Ministry of Energy, Mines and Petroleum Resources (#16,322).

Schiariua, P. and Preto, V.A. (1987): Geology of the Adams Plateau - Clearwater - Vavenby Area; Ministry of Energy, Mines and Petroleum Resources, Paper 1987-2.

vollo, N.B. (1980): Geophysical and Geochemical Assessment Report; Report submitted to he Ministry of Energy, Mines and Petroleum Resources (#7,855).

APPENDIX B

STATEMENT OF EXPENDITURES

ARMOUR CLAIM October 13-15, 1998

‘ROFESSIONAL FEES AND WAGES: David A. Caulfield, P.Geo.

3.25 days @ Jason Weber, GIT

3.50 days @ Mark E. Baknes, P.Geo.

1.5 days @

,XPENSES: Chemical Analyses Maps and Publications Printing and Reproductions Meals Accommodation Automotive Fuel Tolls Telephone Distance Charges

:EPORT (estimated)

$425/day $ 1,381.25

$350 /day 1,225.oo

$425 /day 637.50

QUIPMENT RENTALS: Truck

3 days @ $80/day

UB-TOTAL:

ROJECT SUPERVISION CHARGE: 12% on sub-total ($6,936.32)

UB-TOTAL:

ST: 7% on sub-total

OTAL:

$ 310.20 11.26 21.97

294.80 120.00 145.23

18.70 30.41

240.00 240.00

$ 39243.75

$ 952.57

$ 2,500.00

S 6,936.32

$ 832.36

6 7,768.68

543.81

$ 8312.49

APPENDIX C

ROCK SAMPLE DESCRIPTIONS

MINERALS AND ALTERATION TYPES

CB iron carbonate SAL

chlorite GE goethite

:: hematite jarosite MC malachite sericite

!I” muscovite PY pyrite

QZ quartz silica

Equity E.n@“eering Ltd. -

I, David A. Caulfield of 3142 Gambier Avenue, Coquitlam, in the Province of British Columbia,IO HEREBY CERTIFY:

I. THAT I am a Consulting Geologist with offices at Suite 207, 675 West HastingsStreet, Vancouver, British Columbia.

1. THAT I am a graduate of the University of British Columbia with a Bachelor ofScience degree in Geology.

3. THAT I am a Professional Geoscientist registered in good standing with theAssociation of Professional Engineers and Geoscientists of the Province ofBritish Columbia.

1. THAT this report is based on property work I supervised during October 1998,government publications and other publicly available reports.

IATED at Vancouver, British Columbia, this 13th day of January, 1999.,rrcl(-‘-”

Equify Engineering Lfd. _