1

FIRST YEAR ASSESSMENT REPORT, HYDROGEOCHEMICAL SURVEY, PROSPECTING AND

REVIEW OF PREVIOUS WORK License 017063M,

NTS 1M/10 & 1M/15. SAGE POND, NFLD.

ALEX HARRIS, B. Sc. Work performed, Nov. 9, 2009 to, Feb. 22 2011

For: NEWFOUNDLAND FLUORSPAR EXPLORATION LTD. Total Expenditures: $12,654.22

Total Number of claims.63 February 22, 2011

2

TABLE OF CONTENTS page INTRODUCTION 3 LOCATION AND ACCESS 3 PREVIOUS EXPLORATION 3 GEOLOGY 3 LANSAT IMAGERY – Linear Structures 4 LAKE SEDIMENT GEOCHEMISTRY 4 HYDROGEOCHEMICAL SURVEY AND PROSPECTING 4 RECOMMENDATIONS 5 REFERENCES CITED 5 APPENDIX 1 Maps:

1. Location of Claims 2. SP_LOC1. 2010 Sample Locations and Prospecting Traverses, West,

1:25,000 3. SP_LOC2 2010 Sample Locations and Prospecting Traverses, East; 1:25,000 4. WSP1 2010 Fluoride in Water, West 5. WSP2 2010 Fluoride in Water, East

APPENDIX 2 Certificates of Analysis APPENDIX 3 GPS Data Listing APPENDIX 4 Statement of Expenditures APPENDIX 5 List of Personnel

3

INTRODUCTION Grubstake Management (Nfld.) Ltd., acquired License 017063M totaling 63 claims at Sage Pond, Nfld., NTS sheet 1M/10 and 1M/15 late in 2009. Early in 2010 these claims were transferred to Newfoundland Fluorspar Exploration Ltd. (Newfluorex). Claim locations are shown on map 1. Claims were staked in an area with high Fluoride in regional lake sediment data and focused on linear structures identified on Landsat imagery. LOCATION AND ACCESS Sage Pond is located in Southern Newfoundland on NTS map sheets1M/10 at 47° 44’ north latitude, 54° 52’ west longitude. Access to area is by well developed ATV trails from Highway 211. PREVIOUS EXPLORATION Dobbel, C.A., & Maclachan, D.C., (1953) noted that prospecting was concentrated along the Granite Contact. They quoted Bradley (1951) as stating “Area is structurally favourable for metallization and the close association of the minerals fluorspar and molybdenite, with intrusives and faults is strikingly similar to nearby fluorspar deposits to the Southwest of St. Lawrence.” Ricketts, J. & Bumgarner, J., (1954) noted that occurrences of molybdenite at Anesty Hill have been known for many years. Esso Minerals (O’Sullivan, J., 1982 and 1983) explored a number of quartz topaz greisen zones within the southern portion of the Ackley City Granite close to the contact of the granite with Precambrian metasediments and volcanics. Significant but sub-economic tin values were obtained. Most important zone was at Anesty Hill. Zones contain fluorite, molybdenite, hematite and pyrite. MacGillivray, (1985) reported on exploration program by Rio Algom which was largely focused south of our claims, but did include 2 small grids where till samples were analyzed for W, Mo, and Sn – Grid 1 was approximately 1 km. East of our water sample site WSP 036 and overlapping our claim boundary – most significant result was a single high molybdenum value of 77 ppm. Grid 2 was at approximate location of our water sample WSP 025 – values were low in this area and insufficient heavy minerals were present to collect a HMS concentrate for analysis. GEOLOGY Claims are located on the Devonian Ackley Granite (Dickson, 1983). Soil is poorly developed, but bedrock exposures are sparse due to extensive frost heaving of well

4

jointed granite. Large areas of angular granite boulders are common. MacGillivray, (1985) reports that Glacial Striae indicates ice advanced from North to South. LANSAT IMAGERY Interpretation – Linear Structures 3 linear features identified on Lansat Imagery were drawn on overlays and transferred to a digital topographic map base. 2 parallel structures trend about 005° near Dillman’s Lookout in West portion of claims and another structure extends ENE across claims at 069° It is expected that these structures are fault or shear zones, which may host vein-type mineralization. LAKE SEDIMENT GEOCHEMISTRY Harris (2010a) examined lake sediment geochemical data available on-line in Newfoundland Dept. of Mines and Energy database. He compared fluoride values in Lake Sediments at Fogo Island with the St. Lawrence Area, which is the most important Fluorspar Mining District in Canada. St. Lawrence Area contained a few values higher than values on Fogo Island, probably because of the numerous trenches and exploration shafts in the St. Lawrence area. Fogo Island data ranged from 20ppm Fluoride to 899ppm, with mean of 213, standard deviation of 201, and median of 152. St. Lawrence area data ranged from 40ppm Fluoride to 1824ppm, with mean of 361, standard deviation of 408, and median of 179. He also looked for comparative purposes at 2 other areas, the Gander Bay area adjacent to Fogo Island, and the Central Avalon area south and west from St. John's. Gander Bay area data ranged from 20ppm Fluoride to 304 ppm, with mean of 98, standard deviation of 56, and median of 92. Avalon data ranged from 40ppm Fluoride to 158ppm, with mean of 72, standard deviation of 33, and median of 61. By comparison, the Sage Pond Area is in an area with high fluoride values in excess of 1,000 ppm., over an area larger than license 17063M with the peak value of 3120 ppm. in North part of Sage Pond. Dickson (1983) observed that a high fluoride content of the Granite in this area also coincides with that found in Lake Sediments. HYDROGEOCHEMICAL SURVEY AND PROSPECTING 48 water samples were collected during August, 2010 from locations shown on maps SP_LOC1 and SP_LOC2. All samples were from surface ponds and streams. Complete Analytical data are enclosed in Appendix 2. All sample locations were marked on Air Photo overlays and also recorded on Garmin eTrex H GPS units. A complete listing of GPS data is included in Appendix 3. An orientation survey in the vicinity of the Mount Margaret Vein at St. Lawrence, (Harris, 2010b) showed anomalous fluoride in water values ranging from 0.2-0.8 ppm.

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Harris, A., 2010a, First year assessment report, compilation of geological and geochemical information, air photo interpretation, hydrogeochemical survey and prospecting licenses 16407m, 16408m, 16526m, 16561m, 16562m and 16563m, NTS 2E/09. Fogo Island, Nfld., unpublished assessment report for Newfoundland Fluorspar Exploration Ltd. Harris, A., 2010b, First And Fourth Year Assessment Report, Hydrogeochemical Survey And Prospecting Compilation Of Geological And Hydrogeochemical Information, Drilling Recommendations Licenses 13095m, 16461m, 17055m, 17062m, 17832m And 17982m, NTS 1L/14. St. Lawrence Area, Nfld., unpublished assessment report for Newfoundland Fluorspar Exploration Ltd. MacGillvray, G.C., 1985, Report on Airborne and Ground Geophysical Surveying, Geochemical Surveying, Geological Mapping and Channel Sampling, Licences 2281, 2331, 2465, 2466, 2475, 2476 and 2477, Nf. Miner. Dev. Div., Assess. File 1M/226 O’Sullivan, John, 1982, Assessment Report on Trenching and Diamond Drilling Carried out on Licences 1797 to 1804 inclusive for the period June to October, 1981, Nf. Miner. Dev. Div., Assess. File 1M/196. O’Sullivan, John, 1983, Report on Geochemical and Geological Surveys Carried out on Licence 2281 during September to December, 1982, Nf. Miner. Dev. Div., Assess. File 1M/207. Ricketts, J. & Bumgarner, J., 1954, Report on field Examinations in Newfoundland for American Zinc Company of Tennessee; Nf. Miner. Dev. Div., Assess. File 1M/42.

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APPENDIX 1 Maps: (Basemaps for Maps SP_Loc 1-2 and WSP1-2 and Digital Air Photos from Dept. of Environment and Conservation, Surveys and Mapping Division)

(Lansat Imagery Interpretation from material © Department of Natural Resources Canada. All rights reserved.)

Drafting by: G. Stefanuk, C. Tech.NewFluorEx.com Feb 21, 2011 Map: SP_Key

Key MapN.T.S.

Scale: 1 : 750,000Location Map

5287

000m

N52

8800

0m N

5289

000m

N52

9000

0m N

657000m E 658000m E656000m E 659000m E 660000m E

5291

000m

N

Drafting by: G. Stefanuk, C. Tech.

Newfoundland Fluorspar Exploration Ltd.Sage Pond Claims

NewFluorEx.com Feb 21, 2011 Map: SP_Loc1

2010 Sample NumberLocations and Traverses

Trail

MineralLicence:

017063M

RSP006

RSP004

RSP003

RSP002

RSP001 WSP001

WSP002

WSP003WSP004

WSP005

WSP006

WSP007

WSP008WSP009

WSP010WSP011

WSP012

WSP013

WSP014

WSP015

WSP016

WSP017

WSP018

WSP019

WSP020

WSP021 WSP022W

WSP041

WSP042

WSP043

WSP045

WSP046

WSP047

WSP048

2010 Water Sample Number LocationWSP001

NTS Map Reference:Terrenceville 1M/10

Gisborne Lake 1M/15UTM Zone 21, Nad 27

LegendMineral Licence Boundary

Exploration Traverse Location

Linear Structures From Air Photos

500m0 250Scale: 1 : 25,000

2010 Rock Sample LocationRSP001Lansat Imagery Interpretation by: Alex Harris, B. Sc.

5287

000m

N52

8800

0m N

5289

000m

N52

9000

0m N

5291

000m

N

Drafting by: G. Stefanuk, C. Tech.

Newfoundland Fluorspar Exploration Ltd.Sage Pond Claims

NewFluorEx.com Feb 21, 2011 Map: SP_Loc2

2010 Sample NumberLocations and Traverses

Trail

MineralLicence:

017063M

RSP006

RSP005

RSP004

RSP003

P012

WSP013

WSP014

WSP015

WSP016

WSP017

WSP018

WSP019

WSP020

WSP021 WSP022WSP023

WSP024

WSP025

WSP026

WSP027

WSP028 WSP029WSP030

WSP031

WSP032WSP033

WSP034

WSP035

WSP036

WSP037

WSP038

WSP039

WSP040

660000m E 661000m E 662000m E 663000m E

2010 Water Sample Number LocationWSP001

NTS Map Reference:Terrenceville 1M/10

Gisborne Lake 1M/15UTM Zone 21, Nad 27

LegendMineral Licence Boundary

Exploration Traverse Location

Linear Structures From Air Photos

500m0 250Scale: 1 : 25,000

2010 Rock Sample LocationRSP001

Lansat Imagery Interpretation by: Alex Harris, B. Sc.

5287

000m

N52

8800

0m N

5289

000m

N52

9000

0m N

657000m E 658000m E656000m E 659000m E 660000m E

5291

000m

N

NTS Map Reference:Terrenceville 1M/10

Gisborne Lake 1M/15UTM Zone 21, Nad 27

Drafting by: G. Stefanuk, C. Tech.

LegendMineral Licence Boundary

Exploration Traverse Location

Newfoundland Fluorspar Exploration Ltd.Sage Pond Claims

NewFluorEx.com Feb 21, 2011 Map: WSP1

2010 Fluoride in WaterSample Locations and Traverses

Linear Structures From Air Photos

5000 1000m250Scale: 1 : 25,000

Trail

MineralLicence:

017063M

0.2

0.2

0.2

0.2

0.2

-ND

0.1

0.2

0.40.3

0.3

0.3

0.4

0.3

0.3

0.4

0.5

0.40.30.20.10.10.20.4

0.2

0.3

0.4

0.20.2

0.2

0.3

Lansat Imagery Interpretation by: Alex Harris, B. Sc.

2010 Water Sample Dissolved Fluoride (F-) mg/L0.2

5287

000m

N52

8800

0m N

5289

000m

N52

9000

0m N

660000m E

5291

000m

N

Trail

MineralLicence:

017063M

0.5

0.3

0.4

0.4

0.60.5

0.3

0.2

0.5

0.30.2

0.20.2

0.4

-ND

0.1

0.30.4

0.30.3

0.3

0.4

0.3

0.3

0.4

0.5

0.40.3

661000m E 662000m E 663000m E

Drafting by: G. Stefanuk, C. Tech.

Newfoundland Fluorspar Exploration Ltd.Sage Pond Claims

NewFluorEx.com Feb 21, 2011 Map: WSP2

2010 Fluoride in WaterSample Locations and Traverses

NTS Map Reference:Terrenceville 1M/10

Gisborne Lake 1M/15UTM Zone 21, Nad 27

LegendMineral Licence Boundary

Exploration Traverse Location

Linear Structures From Air Photos

5000 1000m250Scale: 1 : 25,000

2010 Water Sample Dissolved Fluoride (F-) mg/L0.2

Lansat Imagery Interpretation by: Alex Harris, B. Sc.

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APPENDIX 2 Certificates of Analysis

Your Project #: WSP Site: SAGE POND Your C.O.C. #: 31859

Attention: Alex HarrisNewFluorEx5-1035 Boychuk DrSaskatoon, SKCANADA S7H5B2

Report Date: 2010/09/07

CERTIFICATE OF ANALYSIS

MAXXAM JOB #: B0B5239Received: 2010/08/24, 9:34

Sample Matrix: Water# Samples Received: 48

Date Date MethodAnalyses Quantity Extracted Analyzed Laboratory Method ReferenceFluoride 40 N/A 2010/08/24 ATL SOP 00043 R3 Based on SM4500F-C Fluoride 8 N/A 2010/08/25 ATL SOP 00043 R3 Based on SM4500F-C

* RPDs calculated using raw data. The rounding of final results may result in the apparent difference.

Encryption Key

Please direct all questions regarding this Certificate of Analysis to your Project Manager.

KATIE COHOON, Bedford Client ServicesEmail: Katie.Cohoon@MaxxamAnalytics.comPhone# (902) 420-0203

====================================================================Maxxam has procedures in place to guard against improper use of the electronic signature and have the required "signatories", as per section5.10.2 of ISO/IEC 17025:2005(E), signing the reports. For Service Group specific validation please refer to the Validation Signature Page.

Total cover pages: 1

This document is in electronic format, hard copy is available on request.

Page 1 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 5 5 G X 6 0 5 7 G X 6 0 5 8 G X 6 0 5 9Sampling Date 2010/08/09 2010/08/09 2010/08/09 2010/08/09

9:59 10:19 10:28 10:34COC Number 31859 31859 31859 31859

U n i t s Criteria A 001 002 003 004 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.3 0.2 0.2 0.2 0.1 2244929

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 2 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 6 0 G X 6 0 6 1 G X 6 0 6 2 G X 6 0 6 3Sampling Date 2010/08/09 2010/08/09 2010/08/09 2010/08/09

11:17 11:26 11:38 12:30COC Number 31859 31859 31859 31859

U n i t s Criteria A 005 006 007 008 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.4 0.3 0.2 0.4 0.1 2244929

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 3 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 6 4 G X 6 0 6 5 G X 6 0 6 6 G X 6 0 6 7Sampling Date 2010/08/09 2010/08/09 2010/08/09 2010/08/09

12:36 12:43 12:56 13:04COC Number 31859 31859 31859 31859

U n i t s Criteria A 009 010 011 012 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.2 0.1 0.1 0.2 0.1 2244929

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 4 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 6 8 G X 6 0 6 9 G X 6 0 7 0 G X 6 0 7 1Sampling Date 2010/08/09 2010/08/09 2010/08/09 2010/08/09

13:14 13:22 13:52 14:03COC Number 31859 31859 31859 31859

U n i t s Criteria A 013 014 015 016 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.3 0.4 0.5 0.4 0.1 2244929

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 5 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 7 2 G X 6 0 7 3 G X 6 0 7 4 G X 6 0 7 5Sampling Date 2010/08/09 2010/08/09 2010/08/09 2010/08/09

14:09 14:17 14:26 14:46COC Number 31859 31859 31859 31859

U n i t s Criteria A 017 018 019 020 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.3 0.3 0.4 0.3 0.1 2244929

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 6 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 7 6 G X 6 0 7 7 G X 6 0 7 8 G X 6 0 7 9Sampling Date 2010/08/09 2010/08/09 2010/08/09 2010/08/09

14:55 15:12 15:23 15:32COC Number 31859 31859 31859 31859

U n i t s Criteria A 021 022 023 024 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.3 0.3 0.4 0.3 0.1 2244930

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 7 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 8 0 G X 6 0 8 1 G X 6 0 8 2 G X 6 0 8 3Sampling Date 2010/08/09 2010/08/09 2010/08/09 2010/08/13

16:25 16:32 16:41 09:13COC Number 31859 31859 31859 31859

U n i t s Criteria A 025 026 027 028 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.1 ND 0.4 0.2 0.1 2244930

ND = Not detectedRDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 8 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 8 4 G X 6 0 8 5 G X 6 0 8 6 G X 6 0 8 7Sampling Date 2010/08/13 2010/08/13 2010/08/13 2010/08/13

09:18 09:24 09:29 09:46COC Number 31859 31859 31859 31859

U n i t s Criteria A 029 030 031 032 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.2 0.2 0.3 0.5 0.1 2244930

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 9 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 8 8 G X 6 0 8 9 G X 6 0 9 0 G X 6 0 9 1Sampling Date 2010/08/13 2010/08/13 2010/08/13 2010/08/13

09:50 09:56 10:00 10:05COC Number 31859 31859 31859 31859

U n i t s Criteria A 033 034 035 036 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.2 0.3 0.5 0.6 0.1 2244930

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 10 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 9 2 G X 6 0 9 3 G X 6 0 9 4 G X 6 0 9 5Sampling Date 2010/08/13 2010/08/13 2010/08/13 2010/08/13

10:14 10:20 10:27 10:39COC Number 31859 31859 31859 31859

U n i t s Criteria A 037 038 039 040 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.4 0.4 0.3 0.5 0.1 2244930

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 11 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 0 9 6 G X 6 0 9 7 G X 6 0 9 8 G X 6 0 9 9Sampling Date 2010/08/13 2010/08/13 2010/08/13 2010/08/13

12:59 13:08 13:15 13:26COC Number 31859 31859 31859 31859

U n i t s Criteria A 041 042 043 044 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.2 0.1 ND 0.2 0.1 2245723

ND = Not detectedRDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 12 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

RESULTS OF ANALYSES OF WATER

Maxxam ID G X 6 1 0 0 G X 6 1 0 1 G X 6 1 0 2 G X 6 1 0 3Sampling Date 2010/08/13 2010/08/13 2010/08/13 2010/08/13

13:33 13:46 13:55 14:01COC Number 31859 31859 31859 31859

U n i t s Criteria A 045 046 047 048 RDL QC Batch

Inorganics

Dissolved Fluoride (F-) mg/L 1.5 0.2 0.2 0.2 0.2 0.1 2245723

RDL = Reportable Detection LimitQC Batch = Quality Control BatchCriteria A: Guideline - Summary of Guidelines for Canadian Drinking Water Quality (SGCDWQ), Health Canada, May 2008.

A= Maximum Acceptable Concentration (MAC) - established for substances that are known or suspected to cause adverse effects onhealth. When exceeded, minimum action required is immediate resampling. If continuous exceedance occurs, the local authorityresponsible for drinking water supplies should be consulted concerning appropriate corrective action.

C= Aesthetic Objectives (AO) - apply to characteristics of drinking water that can affect its acceptance by consumers or interfere withpractices for supplying good quality water. If a concentration is well above an AO, then there is a possibility of a health hazard.

Note 1 Turbidity guideline value of 0.3 NTU based on conventional treatment system. For slow sand or diatomaceous earth filtration 1.0NTU and for membrane filtration 0.1 NTU.Note 2 Aluminium guideline value of 0.1 mg/L is for treatment plants using aluminium-based coagulants, 0.2mg/L applies to other typesof treatment systems.

Page 13 of 15

NewFluorExMaxxam Job #: B0B5239 Client Project #: WSPReport Date: 2010/09/07 Project name: SAGE POND

GENERAL COMMENTS

Results relate only to the items tested.

Page 14 of 15

NewFluorExAttention: Alex Harris Client Project #: WSPP.O. #: Project name: SAGE POND

Quality Assurance ReportMaxxam Job Number: DB0B5239

QA/QC DateBatch AnalyzedNum Init QC Type Parameter yyyy/mm/dd Value Recovery Units QC Limits

2244929 TPE Matrix Spike[GX6059-01] Dissolved Fluoride (F-) 2010/08/24 94 % 80 - 120QC Standard Dissolved Fluoride (F-) 2010/08/24 98 % 80 - 120Spiked Blank Dissolved Fluoride (F-) 2010/08/24 103 % 80 - 120Method Blank Dissolved Fluoride (F-) 2010/08/24 ND, RDL=0.1 mg/LRPD [ G X 6 0 5 9 - 0 1 ] Dissolved Fluoride (F-) 2010/08/24 NC % 25

2244930 TPE Matrix Spike[GX6080-01] Dissolved Fluoride (F-) 2010/08/24 98 % 80 - 120QC Standard Dissolved Fluoride (F-) 2010/08/24 100 % 80 - 120Spiked Blank Dissolved Fluoride (F-) 2010/08/24 100 % 80 - 120Method Blank Dissolved Fluoride (F-) 2010/08/24 ND, RDL=0.1 mg/LRPD [ G X 6 0 7 6 - 0 1 ] Dissolved Fluoride (F-) 2010/08/24 NC % 25RPD [ G X 6 0 8 0 - 0 1 ] Dissolved Fluoride (F-) 2010/08/24 NC % 25

2245723 TPE Matrix Spike Dissolved Fluoride (F-) 2010/08/25 100 % 80 - 120QC Standard Dissolved Fluoride (F-) 2010/08/25 97 % 80 - 120Spiked Blank Dissolved Fluoride (F-) 2010/08/25 101 % 80 - 120Method Blank Dissolved Fluoride (F-) 2010/08/25 ND, RDL=0.1 mg/LRPD Dissolved Fluoride (F-) 2010/08/25 NC % 25

Duplicate: Paired analysis of a separate portion of the same sample. Used to evaluate the variance in the measurement.Matrix Spike: A sample to which a known amount of the analyte of interest has been added. Used to evaluate sample matrix interference.QC Standard: A blank matrix to which a known amount of the analyte has been added. Used to evaluate analyte recovery.Spiked Blank: A blank matrix to which a known amount of the analyte has been added. Used to evaluate analyte recovery.Method Blank: A blank matrix containing all reagents used in the analytical procedure. Used to identify laboratory contamination.NC (RPD): The RPD was not calculated. The level of analyte detected in the parent sample and its duplicate was not sufficiently significant to permit areliable calculation.

This document is in electronic format, hard copy is available on request.Page 15 of 15

MAXXAM ANALYTICS BEDFORD, NOVA SCOTIA B4B 1G9 Tel: (902) 420-0203 Fax: (902) 420-8916

Toll Free: 1-800-565-7227 www.maxxam.ca ATL FCD 00939 / 1 Page 1 of 1

METHOD SUMMARY Fluoride in Water And Soil 2009/10/07

SOP #: ATL SOP 43

Reference: Standard Methods, 20th ed. Method 4500 - F- C, 1998 1. Scope and Application This method is applicable for the determination of fluoride in water or soil matrices. Total Fluoride requires distillation prior to analysis to meet USEPA wastewater discharge requirements. Some difficulty is encountered with samples that are highly basic/acidic or samples that have dissolved solids above 10,000 mg/L. The Reporting Detection Limit (RDL) is 0.10 mg/L for water samples and 0.5 mg/kg for soil samples. 2. Summary of Method An ion specific electrode is used to measure fluoride concentration. The fluoride electrode measures the ion activity of fluoride in solution rather than concentration. Fluoride ion activity depends on the solution rather than the concentration. Fluoride ion activity depends on the solutions total ionic strength and pH, and on fluoride complexing species. Adding an appropriate buffer provides uniform ion strength background, adjusts pH, and breaks up complexes so in effect, the electrode measures concentration. 3. Quality Assurance Reagent blanks, standard reference materials, and method spikes are analyzed in the same manner as mentioned above for the samples. Spiking of samples at a level appropriate to the matrix is performed at a frequency of 5%. Duplicate samples are also analyzed at a frequency of 5 %.

Client:Geologisl:Projecl:Sample:

DskFile:

Dateln:Dateout:

NeMoundland Fluorspar Exploratjon Ltd.Alex HanisSage PondRock

Eto11371

August 23,2010September 02, 2010

Au Fire AssayICP Geochemistry Cerlificate

Eastem Analy4iEl LimitedP.O. Box 187

Little Bay RoadSpringdale, NL

AOJ 1TO

Phone:7@67$3909Fax 709473-3408

Email:eastemanaMical@nf.aibn.com

Signed by:

(Concentrations in assay rangemay cause interferences inassociated elements.)

SampleNumbet

Au Ce Sr BappD ppm ppm ppm

P H g M g A s V N a M oo/6 ppm % ppm ppm % ppm

Ca Zn Cu Sb AS Pb Bi% ppm ppm ppm ppm ppm ppm

Feoh

AI Be% ppm

T i C d C o N i W L a K M n S n C r% ppm ppm ppm ppm ppm % ppm ppm ppm

RSP-001RSP-002RSP-OO3RSP-OO4RSP405RSP-006

1 0.021 0.011 0.01I O.011 0.01I 0.01

5 4 85 1 05 1 05 1 05 1 45 137

2 10 0.57 0.013 10 0.77 0.012 10 0-41 0.012 10 0.40 0.011 10 0.42 0.011 10 0.51 0.01

11 0.25 2 0.27 0.9 0.031 >0.50 3 0.15 0.5 0.02

11 0.19 11 0.16 0.6 0.091 0.14 2 0.06 0.5 0.01

10 0.17 2 0.08 0.5 0.011 0.22 4 0.09 0.5 0.O2

555555

614115

6 5 0.2 2 2 0.01 0.5 1 6 1010 5 0.6 2 3 0.01 0.5 2 13 105 5 0.6 2 2 0.01 0.5 1 6 105 5 0.6 2 2 0.01 0.5 1 7 105 5 0.3 2 2 0.01 0.5 1 5 10

10 5 0.2 6 2 0.01 0.5 1 7 10

t5 0.08 56 20 39810 0.01 60 20 87810 0.06 109 20 41310 0.01 33 20 4't810 0.03 u 20 37126 0.O2 71 20 476

9

APPENDIX 3 GPS Data Listing

Newfoundland Fluorspar Exploration Ltd.Sage Pond Project 2010 Water Samples

Sample

Dissolved Fluoride (F‐)

mg/L Date TimeUTM Zone NAD 27 UTM

UTM Easting

UTM Northing GPS Elevation Units

WSP001 0.3 09‐Aug‐10 09:59AM 21 T 658355 5288224 214 mWSP002 0.2 09‐Aug‐10 10:19AM 21 T 658108 5288286 216 mWSP003 0.2 09‐Aug‐10 10:28AM 21 T 657941 5288532 216 mWSP004 0.2 09‐Aug‐10 10:34AM 21 T 657769 5288596 217 mWSP005 0.4 09‐Aug‐10 11:17AM 21 T 657329 5288303 214 mWSP006 0.3 09‐Aug‐10 11:26AM 21 T 657492 5288093 209 mWSP007 0.2 09‐Aug‐10 11:38AM 21 T 657832 5287828 208 mWSP008 0.4 09‐Aug‐10 12:30PM 21 T 658158 5288708 193 mWSP009 0.2 09‐Aug‐10 12:36PM 21 T 658304 5288766 204 mWSP010 0.1 09‐Aug‐10 12:43PM 21 T 658453 5288775 210 mWSP011 0.1 09‐Aug‐10 12:56PM 21 T 658818 5288813 217 mWSP012 0.2 09‐Aug‐10 01:04PM 21 T 659065 5288793 209 mWSP013 0.3 09‐Aug‐10 01:14PM 21 T 659333 5288807 211 mWSP014 0.4 09‐Aug‐10 01:22PM 21 T 659538 5288778 204 mWSP015 0.5 09‐Aug‐10 01:52PM 21 T 659697 5289092 191 mWSP016 0.4 09‐Aug‐10 02:03PM 21 T 659800 5289536 174 mWSP017 0.3 09‐Aug‐10 02:09PM 21 T 659653 5289704 187 mWSP018 0.3 09‐Aug‐10 02:17PM 21 T 659533 5289901 181 mWSP019 0.4 09‐Aug‐10 02:26PM 21 T 659441 5290192 177 mWSP020 0.3 09‐Aug‐10 02:46PM 21 T 659386 5290685 162 mWSP021 0.3 09‐Aug‐10 02:55PM 21 T 659413 5291005 163 mWSP022 0.3 09‐Aug‐10 03:12PM 21 T 659833 5291040 165 mWSP023 0.4 09‐Aug‐10 03:23PM 21 T 660164 5291034 183 mWSP024 0.3 09‐Aug‐10 03:33PM 21 T 660449 5291189 173 mWSP025 0.1 09‐Aug‐10 04:25PM 21 T 660629 5290157 218 mWSP026 ‐ND 09‐Aug‐10 04:32PM 21 T 660876 5289597 233 mWSP027 0.4 09‐Aug‐10 04:41PM 21 T 660938 5288834 205 mWSP028 0.2 13‐Aug‐10 09:13AM 21 T 661050 5288616 207 mWSP029 0.2 13‐Aug‐10 09:18AM 21 T 661153 5288682 201 mWSP030 0.2 13‐Aug‐10 09:24AM 21 T 661292 5288754 192 mWSP031 0.3 13‐Aug‐10 09:29AM 21 T 661356 5288857 182 mWSP032 0.5 13‐Aug‐10 09:46AM 21 T 661378 5289047 192 mWSP033 0.2 13‐Aug‐10 09:50AM 21 T 661391 5289116 194 mWSP034 0.3 13‐Aug‐10 09:56AM 21 T 661470 5289267 192 mWSP035 0.5 13‐Aug‐10 10:00AM 21 T 661527 5289361 189 mWSP036 0.6 13‐Aug‐10 10:05AM 21 T 661575 5289450 183 m

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Newfoundland Fluorspar Exploration Ltd.Sage Pond Project 2010 Water Samples

Sample

Dissolved Fluoride (F‐)

mg/L Date TimeUTM Zone NAD 27 UTM

UTM Easting

UTM Northing GPS Elevation Units

WSP037 0.4 13‐Aug‐10 10:14AM 21 T 661617 5289867 181 mWSP038 0.4 13‐Aug‐10 10:20AM 21 T 661585 5290091 180 mWSP039 0.3 13‐Aug‐10 10:27AM 21 T 661531 5290297 178 mWSP040 0.5 13‐Aug‐10 10:39AM 21 T 661600 5290803 170 mWSP041 0.2 13‐Aug‐10 12:59PM 21 T 658796 5288536 219 mWSP042 0.1 13‐Aug‐10 01:08PM 21 T 658445 5289073 205 mWSP043 ‐ND 13‐Aug‐10 01:15PM 21 T 657963 5289271 197 mWSP044 0.2 13‐Aug‐10 01:26PM 21 T 657654 5288843 213 mWSP045 0.2 13‐Aug‐10 01:33PM 21 T 657534 5288735 221 mWSP046 0.2 13‐Aug‐10 01:46PM 21 T 656975 5288340 207 mWSP047 0.2 13‐Aug‐10 01:55PM 21 T 656738 5288457 194 mWSP048 0.2 13‐Aug‐10 02:01PM 21 T 656748 5288634 192 m

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Newfoundland Fluorspar Exploration Ltd.Sage Pond Project 2010 Rock Samples

Sample Description Date TimeUTM Zone NAD 27 UTM

UTM Easting

UTM Northing GPS Elevation Units

RSP001 Angular Quartz float (2‐5 cm) 09‐Aug‐10 10:07AM 21 T 658248 5288237 218 mRSP002 Angular Quartz float (2‐5 cm) 09‐Aug‐10 10:52AM 21 T 657522 5288436 226 mRSP003 Angular Quartz float, trace pink barite (12cm) 09‐Aug‐10 02:37PM 21 T 659417 5290601 169 mRSP004 Angular Quartz float (15 cm) 09‐Aug‐10 03:04PM 21 T 659701 5290983 166 mRSP005 Angular Quartz float(30 cm) 13‐Aug‐10 10:48AM 21 T 661238 5290737 188 mRSP006 Quartz vein (12 cm) 13‐Aug‐10 12:28PM 21 T 659677 5288941 212 m

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10

APPENDIX 4 Statement of Expenditures Field Labour, 2010 $ 3,200.00 Lab costs 1,070.10 Hotels 120.00 Meals 32.97 ATV Rental 80.00 Personal Vehicles used at $0.45/km. 291.79 Maps & Air Photos 338.81 Evaluation of Field Results Report Preparation, Research 6,495.00 Drafting and Data Processing, 2,575.00 Subtotal $11,003.67 15% Overhead Expense 1,650.55 TOTAL $12,654.22

11

APPENDIX 5 List of Personnel Alex Harris, B. Sc., Geologist, Saskatoon, Sask. Field Work: Aug. 9,13, 2010.

Photo Interpretation and Research: Nov. 3-6, 10,11,13,17,18,21,27, 2009; Dec. 4, 7,11,12,14, 2009; Feb. 26, 2010; Mar. 18, 2010; Jun. 14, 29, 2010, July 2,22,23, 2010; Aug. 1,4,7,10,11,20,22, 2010; Sept. 6,7, 2010; Oct. 16, 2010; Jan. 24, 2011. Report Preparation:Feb.14,16,17,21,22, 2011.

Gordon Stefanuk, C. Tech., Draftsman, GIS and Data Processing, Lloydminster, AB.

Drafting, Data Processing etc.: Dec. 8,18,21, 2009; Jan. 23,2010; Feb. 7, 2010; Mar. 28, 2010; Apr. 30, 2010; May 9,12,14,24, 2010; Jul.1, 2010; Sept. 17,20, 2010; Jan. 10, 11, 12, 13, 15, 22, 2011; Feb 15,17,19,20,21,22 2011.

Bill Taylor, Prospector, Marystown, NL. Field Work: Aug. 9,13, 2010.