OWL CREEK MINERAL CLAIMS

OWL CREEK MINERAL CLAIMS

Geological, Rock Geochemical, and Airborne Magnetic Surveys

Lillooet Mining Division British Columbia, Canada

NTS – 92J07

Latitude 53° 23’ N Longitude 122° 46’ W

Prepared for

Clear Mountain Resource Corp.

Locke B. Goldsmith, P.Eng., P.Geo. Consulting Geologist

October 25, 2011

Owl Creek Mineral Claims


Table of Contents

1 Summary ....................................................................................................................... 1 2 Introduction................................................................................................................... 2

2.1 Terms of Reference................................................................................................ 2 2.2 Site Visit................................................................................................................. 2 2.3 Qualified Person..................................................................................................... 2

3 Reliance on Other Experts ............................................................................................ 2 4 Property Description and Location ............................................................................... 3

4.1 Property Location................................................................................................... 3 4.2 Property Description .............................................................................................. 5 4.3 Nature of Clear Mountain’s Interest ...................................................................... 7

5 Accessibility, Climate, Local Resources, Infrastructure and Physiography................. 7 5.1 Accessibility........................................................................................................... 7 5.2 Climate................................................................................................................... 8 5.3 Local Resources and Infrastructure ....................................................................... 8 5.4 Physiography.......................................................................................................... 8

6 History........................................................................................................................... 8 7 Geological Setting and Mineralization ....................................................................... 10

7.1 Regional Geology ................................................................................................ 10 7.2 Property Geology................................................................................................. 10 7.3 Mineralization ...................................................................................................... 13

8 Deposit Types ............................................................................................................. 14 9 Exploration.................................................................................................................. 15

9.1 Geology................................................................................................................ 15 9.2 Geochemistry ....................................................................................................... 17

10 Geophysics................................................................................................................ 20 11 Drilling...................................................................................................................... 21 12 Sample Preparation, Analysis and Security .............................................................. 21 13 Data Verification....................................................................................................... 21 14 Mineral Processing and Metallurgical Testing ......................................................... 22 15 Mineral Resource Estimates ..................................................................................... 22 16 Mineral Reserve Estimates ....................................................................................... 22 23 Adjacent Properties................................................................................................... 22 24 Other Relevant Data and Information....................................................................... 22 25 Interpretation and Conclusions ................................................................................. 22

25.1 Interpretation...................................................................................................... 22 25.2 Conclusions........................................................................................................ 24

26 Recommendations..................................................................................................... 25 27 Cost Estimate ............................................................................................................ 25 28 References................................................................................................................. 27 29 Engineer’s and Geologist’s Certificate ..................................................................... 29



List of Figures

Figure 1. Owl Creek property location map ....................................................................... 4 Figure 2. Owl Creek mineral claim map............................................................................. 6 Figure 3. Reconnaissance property geology with sample locations ................................. 12 Figure 4. Geology, Copper Queen prospect...................................................................... 16 Figure 5. Composite geology, mineral occurrences, and magnetic interpretation map.... 23

List of Tables

Table 1. Mineral tenures ..................................................................................................... 5 Table 2. Owl Creek rock samples and selected analyses.................................................. 17 Table 3. Owl Creek rock sample descriptions .................................................................. 17 Table 4. ALS sample preparation and analytical procedure descriptions......................... 21


Clear Mountain Resource Corp. 1

1 Summary The Owl Creek mineral tenures are optioned to Clear Mountain Resources Corp. under an agreement from two owners. The property consists of 12 tenures totalling approximately 4121 hectares located within the Lillooet Mining Division, 8.5 km northeast of Pemberton, B.C.

Mineral exploration in the area began about 1913 in the lower reaches of Owl Creek where copper mineralization including malachite and azurite is abundant in the canyon walls. During the following years exploration progressed upstream to the flatter area around Little Owl Lake near the northwest part of the property. A series of diorite plugs along Owl Creek have intruded a volcanic and associated sedimentary package named the Cadwallader Group of Upper Triassic age. Copper mineralization is present within propylitic alteration (chlorite and epidote) in diorite and adjacent andesitic volcanics.

Four named zones of copper mineralization A, B, C, and D, have been explored at various times. Earliest exploration was at the A zone (Copper Queen adit) where a 70 metre adit and at least four diamond drill holes have tested copper mineralization. One drill hole cored by Pine Lake Mining in the period 1969-1972 intersected 182 metres of 0.2% copper. The B zone has had the least exploration. Although gossanous diorite and andesite are present, only small amounts of malachite and pyrite have been noted. The C zone has had the most exploration, culminating in a drilling programme by Pine Lake Mining in 1972 that totalled 2473 metres (8113 feet) in 10 holes. All holes were mineralized. The best result at the time was in hole C-2 that intersected 91.4 metres of 0.4% copper and 0.029% molybdenum (Weick and Allen, 1986). On the northeast side of Little Owl Lake, Pine Lake Mining defined an anomalous area by soil geochemistry and geophysics named the D zone. Pine Lake Mining drilled 19 percussion holes to an average depth of 91.5 metres (300 feet). Grades of copper that were sub-economic in 1972 were intersected.

During 2010 and 2011 a programme of geological mapping and rock geochemical sampling has confirmed the presence of significant amounts of copper as indicated by previous exploration. At the A zone the maximum value of the five chip samples collected that varied in length from 0.5 to 4.0 m was 1.985% copper and the minimum was 0.09% copper. The average content of the five samples was 0.73% copper. These values, especially at the A zone, reflect near surface enrichment in a copper carbonate cap which may overlie a sulphide deposit. Exploration targets exist on the property, for example the B zone where mapping and sampling has identified altered and copper-mineralized diorite that is cut by northerly trending faults transverse to the Owl Creek fault. Mineralized diorite is present north of the C zone and in the vicinity of Little Owl Lake in the area of the D zone where outcrops are scarce.

In January 2011 an airborne magnetometer survey was flown over a portion of the property in the Owl Creek valley. Interpretation of the results indicates that subtle magnetic low signatures have been correlated with mapped diorite zones that are known to coincide with the observed mineralization. 3D magnetic modeling of these anomalies shows they are reflections of near surface, localized bodies with depth extent of approximately 300 meters. The magnetic signature suggests the area between mineral zones B and C may contain three parallel bands of diorite.

The Owl Creek property is a Property of Merit.

A programme of ground geophysics, including deep induced polarization and magnetic surveys, is recommended in Phase 1 to investigate characteristics that could indicate the presence of sulphide



minerals in diorite and thus suggest targets for continued exploration. A budget of $240,000 is estimated for Phase 1. A budget estimated to be $150,000 for a possible continuation of geophysical surveys in Phase 2 is contingent upon the results of Phase 1. The total budget estimate for Phase 1 and 2 is $390,000.

2 Introduction The following technical report has been prepared for Clear Mountain Resource Corp. (“Clear Mountain”) for the purpose of aiding in the exploration of base and precious metals on the mineral property at Owl Creek near Pemberton, B.C. Historical data from previous exploration of the property and prospects in the vicinity are cited throughout the report; sources are listed in the References. Information for the report is based on the author’s examination of the property, and supervision of reconnaissance geological mapping, rock samples collected for geochemical analyses during the field program, and an airborne magnetic survey. This report synthesizes and interprets results of the field program and the airborne magnetic survey.

2.1 Terms of Reference a) This report was commissioned by the management of Clear Mountain to summarize the geology, mineralization and exploration potential on the Owl Creek mineral claims near Pemberton, British Columbia.

b) The purpose of this technical report is to review historical exploration on the property, to report on recent geological, geochemical, and airborne geophysical surveys, to suggest interpretations of the combined data, to determine if the Owl Creek property is a Property of Merit, and if warranted to make recommendations for an ongoing exploration program.

2.2 Site Visit The qualified person who is the author of this report made an initial geological inspection of the area on November 7, 2010, including the condition of roads, frequency of outcrops, severity of terrain, weather and snow conditions, and supervised geological mapping on the property from November 2010 to September 2011.

2.3 Qualified Person The author of this report is Locke B. Goldsmith, P. Eng., P. Geo., who is a qualified person as defined under NI 43-10 regulations.

3 Reliance on Other Experts Regional geology and early exploration of the area is referenced in various government reports. This report has been prepared in part using public documents obtained from B.C. Mineral Titles assessment files, and are relied upon for relevant information. Many of the reports have been written by or supervised by Registered Professional Geologists or Engineers.

An independent geophysical contractor, Precision GeoSurveys Inc., completed a helicopter-borne aeromagnetic survey over the property during January 2011. A detailed geophysical interpretation report of the magnetic survey was written by E. Trent Pezzot, P.Geo. (2011).



While reasonable care has been taken in preparing this report, the author cannot guarantee the accuracy or completeness of all supporting documentation. The author is responsible for all of the content of this report.

The interpretive views expressed herein are those of the author and may or may not reflect the views of the management of Clear Mountain.

4 Property Description and Location 4.1 Property Location

The Owl Creek property of Clear Mountain occupies an area approximately 6 km north/south by 6.5 km east/west, less one mineral tenure on Owl Mountain of approximately 1 x 1.5 km in size. Total area of the property is 4121.061 hectares. The property straddles the lower portion of Owl Creek from its mouth near the Birkenhead River northwesterly to Little Owl Lake. With reference to UTM grid coordinates, the property is bounded by 5578500N to 5584500N and 512800E to 519500E, UTM NAD 83, Zone 10. Magnetic declination is 17 degrees 43 minutes east.



Figure 1. Owl Creek property location map



4.2 Property Description

The property consists of 12 tenures totalling approximately 4121 hectares located within the Lillooet Mining Division, 8.5 km northeast of Pemberton, B.C.

Mineral tenures are listed in Table 1 and are shown on the claim map in Figure 2.

Table 1. Mineral tenures Tenure No: Claim Name Owner Map

No: Issue Date Good To Date Area (ha)

Billingsley

637804 NEW OWL CREEK 1 139085 (100%) 092J 2009/sep/21 2016/mar/31 205.991 640010 NEW OWL CREEK 3 139085 (100%) 092J 2009/sep/24 2016/mar/31 494.492 640764 NEW OWL CREEK 4 139085 (100%) 092J 2009/sep/25 2016/mar/31 411.916 705229 OWL CREEK 8 139085 (100%) 092J 2010/feb/02 2016/mar/31 370.710 705493 COPPER 6 139085 (100%) 092J 2010/feb/04 2016/mar/31 185.446 640009 NEW OWL CREEK 2 139085 (100%) 092J 2009/sep/24 2016/mar/31 206.051 786502 NEW OWL CREEK 5 139085 (100%) 092J 2010/jun/04 2016/mar/31 515.094 786503 NEW OWL CREEK 6 139085 (100%) 092J 2010/jun/04 2016/mar/31 515.324 786504 NEW OWL CREEK 7 139085 (100%) 092J 2010/jun/04 2016/mar/31 515.329 786505 NEW OWL CREEK 9 139085 (100%) 092J 2010/jun/04 2016/mar/31 515.310 Kress 591641 OWL CREEK 146911 (100%) 092J 2008/sep/20 2016/mar/31 41.198 705488 146911 (100%) 092J 2010/feb/04 2016/mar/31 144.200

Total: 4,121.061



Figure 2. Owl Creek mineral claim map



4.3 Nature of Clear Mountain’s Interest

A copy of the option agreement between the two mineral tenure holders (Optionors) and Clear Mountain (Optionee), dated October 30, 2010, as amended August 11, 2011, is summarized below.

Clear Mountain may acquire 100% undivided interest in and to the Property by making certain cash and stock payments and satisfying certain conditions, as excerpted in part below:

“In order to keep the right and option granted to the Optionee respecting the Property in good standing and in force the Optionee shall do the following: pay to the Optionors $16,500.00, each as to one-half, on execution of this Agreement; pay to the Optionors a further $15,000.00, each as to one-half, and issue to the Optionors 100,000 common shares of the Optionee, each as to one-half, fully paid and non-assessable shares no later than 15 days after the successful completion of the Optionee’s going-public transaction or initial public offering (“IPO”); on the first anniversary date of the IPO, pay to the Optionors a further $20,000.00, each as to one-half and issue to the Optionors 100,000 common shares of the Optionee, each as to one-half; on the second anniversary date of the IPO, pay to the Optionors a further $25,000.00, each as to one-half and issue to the Optionors 200,000 common shares of the Optionee, each as to one-half; on the third anniversary date of the IPO, pay to the Optionors a further $30,000.00, each as to one-half and issue to the Optionors 250,000 common shares of the Optionee, each as to one-half.

The Optionors hereby grant to the Optionee the sole and exclusive option to purchase the two percentage points of the Net Smelter Retum Royalty described in Schedule "B" at a purchase price of $1,000,000.00 per percentage point during the five year period commencing from the date upon which the Property is put into commercial production.”

5 Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Accessibility

A Canadian National rail line, and an asphalt highway that connects Vancouver to Pemberton and Lillooet, cross the southeast corner of the property, parallel to the Birkenhead River. Access improvements within the property include the Owl Creek Forest Service Road that passes diagonally through the property on the north side of Owl Creek from the southeast corner of the property to the northwest corner of the property. Several subsidiary logging roads extend as spurs to the northeast and southwest from the main Owl Creek Road.

Road access into the property is via the Owl Creek Forest Service road that departs from the Pemberton to Lillooet highway 3.5 km. north of Mount Currie, B.C. This forest road is used primarily by loggers, but in the late summer and fall hunters and mushroom pickers frequent the area. The road passes through the entire claim area from the southeast corner to the northwest corner. Trucks and 4x4 vehicles can pass through the property during the summer and fall months, however 2-wheel drive cars may have trouble with the steep road depending upon the extent to which logging operations are using the road.



5.2 Climate

Summers are generally warm to hot (highs about 30°C and lows about 15°C) and winters are generally cold (highs about 10°C and lows about -15°C). Work in winter months would require removal of snow to access the upper reaches of the Owl Creek Forest Service road. In Pemberton the average temperatures are 26°C in summer and -9°C in winter; annual precipitation is 90 cm, almost half of which comes as snow.

Exploration in the area is most easily accomplished between late May and early November.

5.3 Local Resources and Infrastructure

Mount Currie, B.C. has a general store and gas station. Pemberton, B.C. that is 5 km. west of Mount Currie (8.5 km southwest of the property) is a commercial and industrial supply centre. Both towns could provide a labour pool and equipment for initial exploration at the property. Abundant, year-round water is available in Owl Creek. Mining personnel are available in southwestern B.C. A major electrical power transmission line and several power lines of various voltage pass through the southeast corner of the property. Round-rock and gravel operations are active in the Birkenhead River valley, of which one gravel operation is located in the southeast corner of the claim.

5.4 Physiography

The property is very mountainous. The incised canyon of Owl Creek trends diagonally through the centre of the claim. Elevation ranges from a low of approximately 280 metres near the mouth of Owl Creek at the Birkenhead River in the southeast corner to a high of approximately 1600 metres at Mount Fraser near the northwest corner of the property. There are several clear-cut areas where past logging of western red cedar, hemlock, Douglas fir, and pine has taken place. In November logging was suspended until freezing conditions make the access road and surrounding terrain firmer and environmental impact is diminished. Outcrop is abundant along the canyon and less visible in the areas of glacial till or soils that support mosses, buck brush, huckleberries, ferns, and devil’s club.

6 History Grades of mineralization are mentioned in this section for historic information only, have not been verified, and should not be considered to represent the average metal content of a mineralized deposit.

Early exploration was carried out along the lower portions of Owl Creek as early as 1913 at what now is referred to as the Copper Queen prospect. Britannia Mining and Smelting explored the showing in the late 1920's. Owl Creek Mines acquired the property in 1960. Mining Corporation of Canada examined the Copper Queen showing between 1964 through 1968. Pine Lake Mining explored the upper reaches of the Owl Creek canyon in 1969-1972. Utah Mines Ltd. optioned the property from Pine Lake Mining the following year and tested the area of the northwest corner of the present property in 1973-1974. George Resource Company Ltd. explored the area in 1986. Cominco Ltd. held claims north of the Owl Creek property in 1992 and 1993. A small portion of the southern part of these claims is now covered by the Clear Mountain property. Much of the Owl



Lake and Owl Creek area was acquired by J.T. Shearer by staking in 2004 and optioned to Gold King Mining Ltd. Clear Mountain acquired an option on the present claims in 2010.

Early work at the Copper Queen prospect is described in various B.C. Minister of Mines Annual Reports and is summarized by Rastad and Pezzot (2006). First recorded work was in 1913. By 1916 an adit 70 metres (217 feet) in length (Copper Queen) had been completed across the shear zone. A small plant was built in 1917.

In 1928-1929 Britannia Mining and Smelting drilled 3 short diamond drill holes with up to 91.5 m (300 feet) of low-grade copper found in several zones, probably faults. Seraphim (1971) considered the holes to have been too short and core recovery too poor to test the zone adequately. Copper values in the range of 0.15 to 0.48% were reported by Britannia Mining and Smelting, according to Weick and Allen (1986).

In 1963-64 Mining Corporation of Canada rehabilitated the original Copper Queen adit. They sampled and reported a length in the adit of 66 metres grading 0.33% Cu. They also carried out geochemical and geophysical surveys in the area. Condon and Scott (1964) examined the Copper Queen adit, noted shear and joint directions, and verified its location and length of 70 metres (217 feet). They calculated the overall average grade obtained from several samples from the adit and surface trenches to be about 0.2% copper.

In the period 1969-1972 Pine Lake Mining carried out exploration in the Owl Creek-Little Owl Lake area. Weick and Allen (1986) summarized the work of Pine Lake Mining and stated that sampling of the adit measured 66 metres grading 0.33% copper and that a single diamond drill hole cored by Pine Lake Mining at the Copper Queen adit area intersected 182 metres of 0.2% copper. Four mineralized areas were designated A, B, C, and D zones in order of occurrence upstream on Owl Creek. At Zone A (near the Copper Queen adit) one 958-foot diamond drill hole intersected 182 metres of 0.2% copper. At Zone B soil sampling defined a weakly anomalous area of copper mineralization. At Zone C soil sampling, magnetometer and IP surveys and 8,113 feet of diamond drilling in 10 holes was undertaken. All holes on Zone C were mineralized, with an interval in drillhole C-2 that intersected 91.4 metres of 0.4% Cu and 0.029% Mo. At Zone D soil sampling, magnetometer and IP surveys and 19 percussion drill holes to an average depth of 90 metres indicated sub-economic grades of copper mineralization coincident with surface geochemical anomalies. Naylor and Scott (1973) also state that the Zone D percussion drilling also tested an IP geophysical anomaly. Pyrite and minor chalcopyrite and traces of bornite were encountered.

In 1973 and 1974 Utah Mines Ltd established a grid and carried out geological, geochemical and geophysical surveys between Owl Lake and Little Owl Lake (Gatchalian and Witherly, 1974). The southern part of these surveys is now covered by the north part of the Clear Mountain property. Utah Mining Ltd cored four diamond drill holes totalling 1802 feet. Minor chalcopyrite and traces of molybdenite were found (Rayner and Witherly, 1974).

In 1989 an airborne geophysical survey was flown over the Owl Creek area (Fisk, 1989). Although locations are difficult to pinpoint, one of the two anomalies appears to be located just northwest of Little Owl Lake at the edge of the Clear Mountain Resources property. It defined a magnetic low near an east-west fault that intersects a northwest/southeast trending VLF-EM anomaly. An EM anomaly is present near this fault intersection.



In the 1990's and 2000's extensive exploration for base and precious metals was undertaken in the Tenquille Lake and Tenas Creek area, located approximately 8 km north of the Owl Creek property, by Teck Corp (Pautler, 1991), and Goldking Mining Ltd. (Rastad and Pezzot, 2006). Structural and lithologic controls for this area are similar to the Owl Creek area.

In 1992 Cominco Ltd. conducted a soil geochemical survey over two magnetic low geophysical anomalies that were apparent on a government airborne survey. Several high arsenic, zinc, and molybdenum values, and moderate copper anomalies (Noakes, 1992) were detected. Induced polarization (“IP”) / resistivity geophysical surveys were conducted the following year but no positive response was found (Jackisch, 1993). It appears that the area of several of the high molybdenum soil values (up to 25 ppm) in the southern part of the survey that are within the northwestern part of the recommended the present Clear Mountain property may not have been tested adequately.

7 Geological Setting and Mineralization 7.1 Regional Geology

The Owl Creek area is located near the eastern margin of the Coast Intrusive Complex, a northwest trending belt of igneous and metamorphic rocks in the Canadian Cordillera. A series of andesitic flows, tuffs, breccias, and minor rhyolitic flows and breccias have been mapped in the area and are part of the Cadwallader Group of Upper Triassic age (Woodsworth, 1977). These units have been intruded by granodiorite of the Cretaceous Spetch Creek Pluton and smaller diorite and quartz diorite plugs. The Owl Creek fault that passes through the property is a major regional northwest trending structure (Riddell, 1990) that separates major rock units. This fault zone is traced over 100 km and is an extension of the regionally significant Harrison Lake Fault Zone. The rocks to the southwest of the fault are the Cretaceous Fire Lake Group, largely tuffs and sandstone. Rocks to the northeast of the Owl Creek fault are a Triassic and post Triassic group, often a undifferentiated volcanic, volcaniclastic, tuffaceous and sedimentary sequence of the Cadwallader Group, and Cretaceous diorite intrusives. Riddell (1990) divides the Cadwallader Group in this part of B.C. into the Pioneer and Hurley Formations.

7.2 Property Geology

The most abundant rocks at the Owl Creek Prospect are volcanic rocks of the Upper Triassic age Cadwallader Group. Andesite is the most prevalent rock type in the mapped area. Grain size, texture and color of the andesite is variable. Flow breccia, tuffs and porphyritic variations were seen. Dacite and lesser rhyolite are present within the andesite. Quartz-sericite-pyrite schists and phyllites are exposed along the Owl Creek forest service road in the central part of the map area. They are probably metamorphosed equivalents of felsic units within the Cadwallader Group. Basalt was seen in the southeast corner of the claims near the Birkenhead River bridge. Sedimentary rocks including conglomerate and lesser argillite were seen interbedded with the intermediate volcanics and also were noted as separate outcrops.

At least two granitic rock types intrude the volcanics. Granodiorite of the Cretaceous Spetch Creek Pluton occupies the eastern, higher elevations of the grid area. It is medium grained and relatively unaltered. A slightly darker, finer grained diorite is often softer due to hydrothermal alteration and can be seen along the steep canyon of Owl Creek. It has been subjected to structural deformation



and shearing and is therefore less resistant to weathering. The diorite and its volcanic host rock are the principal targets for porphyry-type copper mineralization.

A major northwest trending fault zone is coincident with the trend of Owl Creek. It is an extension of the Harrison Lake Fault that is continuous southeast of the property along the east side of Lillooet Lake. Rock exposures along the Owl Creek canyon are fractured and sheared in a northwest direction. Oblique faults extending away from the Owl Creek fault in a northerly and southerly direction were also seen. Along the Owl Creek forest service road, abundant shearing was seen within the quartz-sericite-pyrite schist unit. It trends northerly with near-vertical dips. Insufficient bedding exposures were seen to determine if faulting or folding of sedimentary and /or volcanic attitudes is present. However, previous geological mapping of the sedimentary units within the Cadwallader Group by Naylor and Scott (1973) postulated a regional northwest trending syncline to be present in the area. Its fold axis is parallel to Owl Creek and is coincident with the dioritic plugs and their accompanying copper mineralization. Roof pendants of intermediate volcanic appear to be faulted within diorite along Owl Creek in the area of the Copper Queen prospect. Size and areal extent of the roof pendants are limited to the width of the fault zone, less than 30 metres.

Andesitic volcanic rocks of the Pioneer Formation are the main host rocks for the diorite intrusions. Andesite is also present along Owl Creek between the B and C Zones. It often displays moderate chlorite alteration in cliff-forming outcrops. Occasionally northwest trending fracture zones cross limonitic, iron stained outcrops that are recessively weathered and may contain weakly pyritic, silicified zones. These zones are often strongly fractured and may have a platy or fissile appearance.



Figure 3. Reconnaissance property geology with sample locations



7.3 Mineralization

Four mineralized zones are present in Owl Creek valley. Copper mineralization is the primary target of exploration at the Owl Creek property. Malachite and azurite with lesser chalcopyrite are concentrated in at least four areas near Owl Creek. Secondary copper minerals are present within and along fractures in fine to medium grained diorite and adjacent andesitic volcanics.

The A zone, also known as the Copper Queen adit (caved), located at 700 metres elevation is the most southerly and topographically lowest copper occurrence in the canyon. The B, C, and D mineral zones also lie along the east side of Owl Creek northwest of the A zone. Minor chalcopyrite is present with strong iron oxidation at the B zone in the middle part of the canyon. The C zone that has had the most exploration, including ten diamond drill holes totalling 2473 meters, is at the north end of the canyon. A fourth zone, the D zone, is near the north limit of the claims where the valley levels near Little Owl Lake. It has been defined by geochemical and geophysical surveys and has been partially tested by 19 percussion drill holes.

At the A zone, along the eastern side of the lower reaches of Owl Creek (Figure 3), the Copper Queen adit (now caved) is located within an area where malachite and azurite are abundant on both fractures and northwest-trending joints related to the Owl Creek fault zone. Chalcopyrite is present as disseminations or associated with weak quartz veinlets. Quartz veinlets appear to be more abundant in the northern part of the A zone with up to 5 veinlets per square metre. Weak bleaching of the diorite host accompanies the veinlets. Malachite is pervasive, locally approaching 5%. Chlorite is the main alteration mineral and is present in the diorite and adjacent intermediate volcanic rocks. Lesser epidote and sericite accompany the propylitically altered diorite and andesite.

At the B zone (approximately 800 metres northwest of the Copper Queen adit) historic reports by Condon and Scott (1964), and Seraphim (1971), indicate similarities to the A zone. Chalcopyrite and copper carbonates are present within and adjacent to diorite intrusives. Air photo linears indicate northerly trending structures may intersect the main northwest trending Owl Creek fault in the general area of the B zone. Seven silt samples collected by Condon and Scott (1964), adjacent to the B zone contained significant copper of over 100 ppm, with a highest value of 240 ppm. Detailed geological mapping by Naylor and Scott (1973) revealed the importance of structural control for copper mineralization in the Owl Creek area. They noted that pyritization and resulting gossans occur where fracturing is concentrated in brittle aphanitic rocks of both sedimentary and volcanic origin. The intrusives are completely altered in patches in the vicinity of mineralized zones. Gossans form around quartz, sericite, kaolin, and sulphides. The area northeast of the B zone was recommended as a potential target for mineralization.

Geological mapping at the B Zone during 2010-2011 has identified a fine to medium-grained, strongly chloritic (propylitic) altered diorite intrusion that has been cut by Owl Creek. The diorite is well exposed for approximately 100 meters along the east bank of Owl Creek. Intense fracturing and shearing occur predominantly in a north to northwest direction with dips generally vertical to 70° east. Weak quartz veinlets and traces to 1% pyrite, with or without chalcopyrite, are developed primarily in an Az 030° 90° to 75° south. Malachite and lesser azurite are generally less than 1% but locally may amount to 10%, primarily as fracture coatings. One small rock outcrop of similar copper-bearing diorite was mapped along the west bank of Owl Creek that indicates that the width of the intrusion at this location exceeds 25 meters.



Mineralization at the C zone is very similar to the Copper Queen area, although malachite and azurite are not as abundant in surface exposures along Owl Creek. Four rock samples were gathered from weakly propylitically altered diorite that contains malachite, azurite and traces of chalcopyrite. Geological mapping during the present program in the C Zone indicates that the copper bearing diorite intrusion in this area is exposed for approximately 250 meters along Owl Creek. As with the A and B Zones, sulphide mineralization (pyrite and chalcopyrite) as disseminations and veinlets occurs with strong chlorite alteration. Copper has been enriched near surface due to precipitation of malachite and lesser azurite on abundant fractures.

Past exploration of the C zone, mainly by Pine Lake Mining in the period 1968-1973, extended the known mineralized area outward from the exposures along the creek canyon by drilling. Ten diamond drill holes, totalling 2473 metres (8113 feet), all encountered copper mineralization. The best result was from drill hole C-2 where 91.4 metres of 0.4% copper and 0.02% molybdenum were intersected (Weick and Allen, 1986). Drill holes were spaced approximately 30 metres apart and tested an area approximately 200 metres long. Assay data and drill logs have not been available to the author nor were the drill sites found during the current exploration program. Structural control for diorite emplacement and subsequent copper mineralization is evident by aerial photographic interpretation of lineaments and by field mapping by Seraphim (1971). Major faults and fractures are oriented Az 330°, parallel to Owl Creek valley. Numerous weaker fault strands trend more northerly. Mapping by Seraphim (1971) also indicated that the C zone does not extend along strike to the south but it, or other mineralized bodies could exist to the north in areas of poor or non-existent outcrop exposures.

The northwest part of the Owl Creek structure within the west side of the Clear Mountain property is designated the D zone, situated near the northeast side of Little Owl Lake. Few outcrops are present in the area of the D zone. By the end of 1972, Pine Lake Mining had completed soil sampling, magnetometer and IP surveys and had drilled 19 percussion holes at the D zone to an average depth of 91.5 metres (300 feet). Subeconomic grades of copper mineralization (in 1972 economics) as minor chalcopyrite, traces of bornite, accompanied by pyrite were coincident with a geochemical anomaly with an associated IP chargeability high (Naylor and Scott, 1973). The geological map constructed by Naylor and Scott (1973) shows the distribution and areal extent of the surface expression of the diorite plugs. The size of these plugs is variable from 600 to 1000 metres long and 90 to 250 metres wide. The poorly exposed D zone may be a faulted extension of the C zone. Combined length of the C and D zone could be 1500 metres.

During the 2010-2011 geological mapping program, two areas of interest were examined which display strong pyrite mineralization in quartz-sericite schist. At 516323 E, 5581692 N (GPS coordinates) along the Owl Creek Forest Service road, disseminations and lenses of pyrite up to 1 cm wide and 10cm long, locally account for up to 10% of the rock. At 518031 E, 5580805 N, similar rock was seen. Both of these zones exhibit strong northwest foliation with steep to vertical dips to the northeast. Host rocks were probably felsic volcanics that have been intensely sheared and altered. Each exposure of pyrite-quartz-sericite schist is more than 5 metres wide. Quartz veinlets that bisect the foliation were seen at the western outcrops.

8 Deposit Types The Owl Creek property displays copper mineralization including chalcopyrite, bornite, malachite, azurite, and lesser molybdenite that are indicative of copper porphyry-type deposits. At the A zone,



including the Copper Queen adit, malachite, azurite and minor chalcopyrite are present at surface in what could be the oxide cap overlying a copper sulphide deposit. Future exploration should address the feasibility of mining and processing a near-surface oxide blanket. Disseminated and fracture controlled copper sulphides occur at depth as reported from previous drill holes and adit exploration. Copper sulphides have been reported at the B and C zones. Rock samples were collected during this field program that contain copper carbonates and sulphides from the C zone. Each zone has a diorite plug that intrudes andesitic volcanics and exhibits chlorite and lesser epidote alteration typical of porphyry-type copper and/or copper-molybdenum deposits.

Another type of mineral deposit that could occur at the Owl Creek property is the volcanogenic massive sulphide (VMS) type. Past exploration by Teck Corp in the Tenquille Lake area approximately 10 km north of the property was primarily directed toward a felsic volcanic package and known base metal occurrences in an area favourable for the discovery of VMS deposits. Pautler (1991) describes two volcano-sedimentary island arc assemblages, the Triassic Cadwallader Group and the post Triassic age (possibly Fire Lake Group) from the Tenquille Lake area. Similar rocks are present at the Owl Creek property. Although there are no known VMS deposits within the Cadwallader Group, the geologically similar Gambier Assemblage is recognized as hosting VMS- type mineralization such as the Britannia Beach deposit. Other deposit types that are relevant to the property include gold and base metal skarns that are intrusive and shear zone related. The Owl Creek property and surrounding areas can be considered prospective for gold-base metal deposits along the eastern edge of the Coast Plutonic Complex. The Bralorne-Pioneer Mine, 43 km north, and the Northair Mine, 34 km to the southwest of the Owl Creek property are both hosted in part by volcaniclastic rocks of Mesozoic age (Weick and Allen, 1986).

9 Exploration 9.1 Geology

The initial focus of the geology and sampling relied upon prior reports, topographic maps, and global positioning system (GPS) instruments to establish locations. These investigations were designed primarily to establish validity and accuracy of historical accounts of geology and geochemistry and to investigate the geochemical signature of the mineralized zones. Selected analyses of rock samples are shown in Table 2 and geological descriptions of rock samples are included in Table 3. Historic reports have provided information for use in conjunction with interpretation of responses from the airborne geophysical survey that was completed by Precision GeoSurveys Inc. during January 2011 over the area of the mineral tenures. Geological mapping and rock geochemical sampling were carried out on behalf of Clear Mountain in the central part of the property during 2010 and 2011. Observations confirm that magnetic low responses mark the locations of mineralized diorite .

No detailed assay data is available from previous drill holes or from work done in the adit.



Figure 4. Geology, Copper Queen prospect



9.2 Geochemistry

Nineteen rock samples were collected for analyses. Geology maps (Figures 3 and 4) show the locations of the rock samples.

Table 2. Owl Creek rock samples and selected analyses

Samp # E N Cu ppm Cu % Mo ppm Au ppm Ag ppm61 517186 5580408 5560 9.36 0.05 0.68 63 517189 5580423 8530 10.15 0.08 0.78 1 517232 5580356 1490 13.40 0.05 0.61 2 517232 5580356 >10,000 1.985 18.35 0.08 0.84 3 517318 5580253 902 1.63 0.01 0.14 4 514578 5582728 2340 10.05 0.05 2.24 5 514550 5582725 434 15.60 0.02 1.16 6 516323 5581692 55.60 15.90 0.00 0.08 7 518031 5580805 57.80 1.80 0.00 0.35 8 516809 5580789 94.20 1.21 0.00 0.09 9 514506 5582859 2700 2.19 0.03 1.56 10 514582 5582820 4700 11.35 0.03 1.00 11 516431 5581162 2210 0.67 0.01 0.25 12 516427 5581137 1150 12.00 0.02 0.26 13 516461 5581163 7980 4.41 0.03 0.90 14 516482 5581156 3600 2.67 0.04 0.68 15 516435 5581196 2750 2.63 0.02 0.43 16 516430 5581184 2320 1.05 0.01 0.18 17 516428 5581199 3110 1.67 0.01 0.12

Table 3. Owl Creek rock sample descriptions

Owl Creek Project, Rock Sample Descriptions

Location: NAD 83 Zone 10 U East North Sample

# Length

m Sample

type

517186 5580408 61 2.0 Chip Copper Queen area. 20 m above Owl Creek. Gray diorite, bleaching and weak FeOx, 1% chalcopyrite, trace molybdenite, 5-10% malachite, weak azurite on all surfaces.

517189 5580423 63 2.0 Chip Copper Queen area. Chlorite-altered diorite, 1% chalcopyrite, 10 % malachite and azurite. Main fractures Az 315° 75° NE, 078° 65° N, and 050° 70° S.

517232 5580356 1 4.0 Chip Copper Queen area, pinnacles area. Fine to medium grained diorite, moderate chlorite, weak to moderate silicification. 3% malachite



on many surfaces, no sulfides. Strong brown FeOx, weak yellow FeOx. Fracturing Az 358 ° 75° W and Az 320° 70° E.

517223 5580337 2 2.0 Chip Copper Queen area. Fine grained diorite, strong FeOx. Fracture controled 3% malachite, mainly Az 325° 55°E and Az 310° 70° E.

517318 5580253 3 0.5 Chip Copper Queen area. Dark gray green meta andesite or diorite, moderate chlorite, weakly silicified. 1-3% pyrite, trace chalcopyrite. Fractures trend Az 315° 90°.

514578 5582728 4 0.3 Chip C zone. Fine grained diorite, weak chlorite. Trace chalcopyrite, trace malachite, patchy limonite. Main fractures trend Az 275 ° 90°.

514550 5582725 5 3.0 Grab C zone. Ridge point at sharp bend in Owl Creek. Fine-grained weakly siliceous diorite, weak epidote. Patchy FeOx, trace malachite and azurite. Grab of 3.0 m. area.

516323 5581692 6 5.0 Grab Quartz-sericite-pyrite schist and or phyllite; foliation trends 318/75. Potential (?) volcanogenic massive sulphide horizon. Grab sample representative of 5 m along road cut. Has numerous crosscutting quartz veinlets, 5% diss. pyrite but more pyrite in lenticular patches to 5 cm length.

518031 5580805 7 2.0 Grab Gray green dacite in contact with quartz-sericite-pyrite phyllite and silicified intermediate volcanic. 3-8% pyrite. Main jointing Az 330 °90°. Grab sample from 2 m sq area.

516809 5580789 8 2.0 Chip Same as above, most prominent fracture / foliation Az 300° 45°NE.

514506 5582859 9 2.0 Chip C zone. Fine to medium-grained diorite, moderate propylitic alteration. 0.5% patchy pyrite, trace chalcopyrite, 1% malachite on fractures.

514582 5582820 10 2.0 Chip C zone. Fine-grained diorite, intense propylitic alteration. 1% disseminated pyrite, 0.5% chalcopyrite, 5% malachite, trace azurite.

516431 5581162 11 2.0 Chip B zone. Fine-grained diorite, intense chlorite alteration, moderate to strongly fractured. Rare patchy limonite. Quartz veinlets with < 2% malachite as fracture coatings. Trace disseminated chalcopyrite.

516427 5581137 12 1.0 Chip B zone. Fine to medium-grained diorite, intensely fractured; main fracture and shear oriented Az 330° 70° E. Much limonite, 1-2% malachite.



516461 5581163 13 2.0 Chip B zone. Fine to medium-grained diorite, intense chlorite alteration, strong fracturing. Prominent malachite-stained cliff. 5% malachite on fractures, trace disseminated chalcopyrite.

516482 5581156 14 2.0 Chip B zone. Medium-grained diorite, intense chlorite (propylitic) alteration. Main fractures Az 360° 75° E. Malachite and azurite as fracture coatings, 0.5% chalcopyrite.

516435 5581196 15 1.0 Chip B zone. Medium-grained diorite, intense chlorite alteration of mafic minerals. 1% pyrite as veinlets < 2 mm wide and disseminations, trace chalcopyrite with pyrite, minor quartz associated with the sulphides.

516430 5581184 16 2.0 Chip B zone. Medium-grained diorite, chlorite alteration. 1% pyrite, 1% chalcopyrite, weak malachite on moderate blocky fractures.

516428 5581199 17 2.0 Chip B zone. Medium-grained diorite, intense chlorite alteration. 1% malachite, trace chalcopyrite.

Five rock samples were collected from the A zone (Copper Queen adit area). Malachite and azurite are present in surface outcrops in an area approximately 160 metres long and 85 metres wide. From the old drill road at the top of the showing to the creek level where the adit is located is a vertical distance of 50 metres. Copper values ranged from 902 parts per million (ppm) = 0.09% to 1.985%. The average copper content of the five samples is 0.73%. Elevated values of gold and molybdenum are also present in two of the samples. Highest values were 0.084 ppm Au and 18.35 ppm Mo.

Seven chip samples were collected within the B zone from altered diorite outcrops along Owl Creek. Copper values from these samples range from 1150 to 7980 ppm. Molybdenum values range from 1.05 to 12.00 ppm. The mineralization in sample # 014 visually appeared to contain 0.5% chalcopyrite and 1-2% copper carbonate (mainly malachite); the geochemical analysis is 3600 ppm Cu. In the other samples from the “B” Zone, copper carbonate contributes most to the elevated copper values as opposed to sulphide mineralization.

Four rock samples were collected from the C zone at the northwest end of the property. Fine-grained diorite contains alteration of weak chlorite, epidote, and possibly secondary biotite. Chalcopyrite and malachite are also present. Sample #004, a 0.3 metre chip sample contained 2340 ppm Cu and 10.5 ppm Mo. Sample # 005, a grab sample from a one metre-square area contained 434 ppm Cu and 15.5 ppm Mo. Sample # 009, a 2.0 m chip sample contained 2700 ppm Cu and 2.19 ppm Mo. Sample # 010, a 2.0 m chip sample, contained 4700 ppm Cu and 11.35 ppm Mo.

An area was observed 500 metres northwest of zone A that warranted sampling. Sample #008, a 2.0 metre chip sample of felsic metavolcanics containing 1-3% pyrite and limonite, returned 94.20 ppm copper.

Other areas of the property that were examined included two outcrops of quartz-pyrite-sericite schist that may represent metamorphosed felsic horizons within the Cadwallader Group. Although the two



samples collected from these outcrops did not contain significant gold or copper, sample #006, a representative grab sample along 5 metres of road-cut returned 15.9 ppm Mo and 21 ppm arsenic, which are elevated in comparison to other samples of the survey.

Lengths of chip samples were measured with a steel tape. Samples were collected from outcrops by hand with a rock hammer. Care was given to break rock and collect chips across the entire length of the sample. Weight of samples varied from about 3 to 7 kg. Ten rock samples were collected for chemical analyses. Sample numbers, descriptions, GPS grid coordinates, and type of sample are listed in Tables 2 and 3. Locations of the sample sites are shown on the geology maps. Seven of the samples from outcrops are continuous chip samples that vary in length from 0.3 to 4.0 metres. Three samples are representative grab samples of specified length or area. At each sample locality chips were placed in labelled, heavy-duty plastic bags, and described in a field notebook.

Locations of samples were chosen with a bias towards areas of visible copper mineralization. Sample density, especially in the A zone (Copper Queen adit area), is not sufficient to calculate any type of grade estimate. Much of the A zone area was not examined closely nor sampled; it is the opinion of the author that copper occurrences are present between the sampled sites. In summary, the five chip samples from the A zone averaged 0.73% copper. These samples also contain elevated gold values, up to 0.084 ppm Au, and molybdenum values up to 18.35 ppm.

10 Geophysics A helicopter-borne magnetometer survey was flown over the property in January 2010. A grid pattern was flown across the Owl Creek valley in lines 2.8 km long, oriented 222/42 degrees, totalling approximately 189 line km of readings. The 66 lines were spaced at 100-metre separation. The grid encompassed an area 2.5 km by 6.7 km, covering the Owl Creek fault zone, the diorite plugs, and the four mineralized zones, A, B, C, and D.

A report by Pezzot (2011) documents the survey and includes interpretations of the magnetic responses with respect to geological features. The following paragraphs in this subsection are quoted from Pezzot (2011).

“The magnetic mapping clearly reflects the NW striking geology, and differentiates between the major geological units. It suggests there is considerably more structure and complexity than what is shown on the government geological maps, including two major E-W fault zones. Mineral zones B and C are located at the intersection of these faults with the NW striking Owl Creek shear zone” (p. 1).

“A subtle magnetic low signature has been correlated with mapped dioritic zones known to coincide with the observed mineralization. 3D modeling of these anomalies shows they are reflections of near surface, localized bodies with limited depth extent. The magnetic signature suggests the area between mineral zones C and B may contain three parallel bands of this dioritic material” (p. 1).

“The diorites associated with mineral zones C and D are reflected by lower magnetic amplitudes than those associated with zones A and B. It is possible that some of the low magnetic amplitude may have been caused by increased terrain clearance as the helicopter flew over Owl Creek. However, anomalous lows are also detected to the sides of the drainage where terrain clearance was not an issue. It may be necessary to conduct ground magnetic surveys to properly evaluate these responses” (p. 14-15).



11 Drilling Previous drilling has been summarized in the History section. Clear Mountain has done no drilling on the property.

12 Sample Preparation, Analysis and Security Rock samples were delivered in person to the ALS Group – Minerals Division (“ALS”) laboratory in North Vancouver, B.C. at the end of the project. ALS (www.alsglobal.com) holds a Certificate of Registration, reissued February 1, 2011with an expiry date of February 11, 2014, certifying that ALS operates a Quality Management System for the provision of assay and geochemical analytical services that complies with the requirements of ISO 9001:2008 standards.

Table 4. ALS sample preparation and analytical procedure descriptions

Sample preparation and analytical procedures that were used by ALS for the Owl Creek rock sample geochemistry are shown in Table 4. No reduction or splitting of samples was performed prior to delivery to the laboratory. In the opinion of the author the samples were collected and transported with adequate security.

13 Data Verification Due to the small number of samples, duplicate analyses of pulps and assay checks were not requested. The visual appearance of the mineralization is commensurate with the analytical results.

The geological mapping and rock geochemical sampling programme was undertaken at the Owl Creek property to check previous information concerning reports of mineralized occurrences. The results of the present report corroborate results of prior exploration and reported grades of mineralization. Grades of copper reported from the Copper Queen adit that is now caved at the portal, the nearby diamond drill hole, and limited drill data from the C and D zones, could not be verified during this property examination, nor has any core from these areas been seen by the author.



14 Mineral Processing and Metallurgical Testing There has been no mineral processing or metallurgical testing undertaken on material from the Owl Creek property.

15 Mineral Resource Estimates There are presently no known mineral resources on the Owl Creek property.

16 Mineral Reserve Estimates There are presently no known mineral reserves on the Owl Creek property.

23 Adjacent Properties As described under Section 6, History, there has been exploration within and near the Owl Creek claims for many years.

24 Other Relevant Data and Information

A permit would not be required to conduct a deep IP survey.

There are First Nation groups with interests in the vicinity of the property. Notice to these groups would be required as a part of a permitting process if physical disturbance were planned. It would be prudent for the representatives of Clear Mountain to contact these groups, inform them of proposed exploration activities and hire locally wherever possible.

To the best of the author’s knowledge, there are no known environmental liabilities related to the Owl Creek property.

25 Interpretation and Conclusions 25.1 Interpretation

A composite map of historical geology and mineral occurrences, and magnetic interpretation (Pezzot, 2011, Figure 21, p. 25), overlain with a transparency of Figure 3 (reconnaissance geology and sampling, 2010), is presented in Figure 5.

Inspection of the relationships indicates that the spatial location, lithology, and mineralogy information that was collected from A, C, and D zones in the examinations of 2010 and 2011 is comparable to the findings of previous investigations. Magnetic lows mark the known locations of mineralized diorite intrusions in the four zones.

Horizontal dimensions observed at surface of diorite in the C and D zones are approximately 350-750 m in length by 125-250 m in width. The interpretation from magnetic modelling of depth geometry of diorite suggests keel shapes that bottom at approximately 300 m below surface.

Similar magnetic responses between zones B and D may indicate the location of additional diorite intrusives that are concealed beneath shallow overburden.



Figure 5. Composite geology, mineral occurrences, and magnetic interpretation map



25.2 Conclusions

Previous exploration for copper has taken place at four areas on the Owl Creek mineral claims. Malachite, azurite, chalcopyrite, and traces of molybdenite and bornite occur as fracture coatings and disseminations in copper porphyry-type mineralization within and adjacent to propylitically altered diorite plugs. The structurally important Owl Creek fault zone and its subsidiary faults are the main localizers for the mineralized intrusives. Mapping of the diorite intrusives by Naylor and Scott (1973) suggests that their size is approximately 600-1000 metres long and 90-250 metres wide.

At the A zone (Copper Queen) rock geochemical analyses contain values of copper up to 1.985% copper, up to 0.084 ppm gold, and up to 18.35 ppm molybdenum. The results confirm the general grade and description of past exploration. The abundance of malachite and azurite are the primary causes of the high copper values at surface (five samples averaged 0.73% copper) at the A zone. Chalcopyrite is relatively scarce. The presence of a continuous cap of copper carbonate overlying a sulphide deposit is suggested.

Within and around zone B, anomalous stream sediment geochemistry, north trending faults that cross the main Owl Creek fault zone, and outcrops of altered diorite with malachite, suggest a favourable target for copper mineralization.

Historic exploration on the C zone included ten diamond drill holes, totalling 2473 metres (8113 feet), all of which encountered copper mineralization. The best result was from drill hole C-2 where 91.4 metres of 0.4% copper and 0.02% molybdenum were intersected.

The D zone in the vicinity of Little Owl Lake has few rock exposures. Information from exploration by Utah Mining, including the results of 19 percussion drill holes is not available. Sub-economic grades (in 1973) of copper were reported. The area remains a favourable exploration target. The poorly exposed D zone may be a faulted extension of the C zone. The combined length of the C and D zones could be approximately 1500 metres.

Compilation of past exploration data from the Owl Creek area and properties to the northwest suggests that in addition to copper porphyry type mineralization, there is also a potential for volcanogenic massive sulphide deposits within the Cadwallader Group. Additionally there is also a potential for base and precious metal deposits in skarns and in shear zones. Two zones of quartz-pyrite-sericite schist were mapped during the present exploration programme. Although they did not return significant base or precious metal values, they may represent felsic volcanic horizons within the Cadwallader Group and could be favourable horizons for VMS type deposits such as on the Gold King claims near Tenquille Lake. At the northwest end of the property, south of the Chain Lakes, anomalous molybdenum in soils collected by a Cominco Ltd exploration programme remains inadequately explored.

Four altered diorite intrusive in the valley of Owl Creek host copper-(gold-molybdenum) mineralization. Interpretation of the airborne magnetic survey has identified four to six responses above areas covered by overburden that are similar to signatures over mineralized diorite. All of these targets should be explored with ground geophysical techniques.

The object of geological investigations during 2011 was to confirm the location and trend of altered and mineralized diorite outcrops in relation to the position of magnetically low responses that are indicated from a recent airborne survey. Additional outcrops of altered diorite intrusive



that contain malachite and traces of chalcopyrite were mapped within and adjacent to the previously known B, C, and D zones. Outlines of the outcrop patterns correspond to positions of the magnetic low patterns. Overburden covers the area between zones B and C where magnetic lows were also detected in the airborne survey results. The field examinations have been successful in affirming the positions of altered and mineralized diorite in preparation for planning induced polarization surveys.

Various exploration campaigns have concentrated on one or another of the known zones. A program should be initiated that would examine multiple sources of mineralization in the group of diorite bodies that might provide an adequate combined bulk tonnage to a central plant.

The Owl Creek property is a Property of Merit.

26 Recommendations Induced polarization ground geophysical surveys are recommended over the areas of mineralization and above the overburden-covered magnetic low areas to search for high chargeability and low resistivity responses that may be caused by sulphide mineralization. Approximately 40 line-km of deep IP survey should be planned. Test lines should be positioned over each of the four areas of known mineralization. Field interpretation of the responses would guide the position of subsequent lines. A ground magnetic survey should be completed using stations on the IP grid.

27 Cost Estimate IP and magnetic surveys, HST not included.

Phase 1 Deep IP, 26 lines, each 1.5 km length, approx 40 line km. IP operators prefer to have their own linecutters as the IP crew Mob – demob $ 5,000 Line cutting, 15 days 25,000 IP &magnetic surveys, 40 days 140,000 R & B 25,000 195,000 195,000 Supervision 10,000 Vehicle, fuel, supplies 3,000 Report 10,000 23,000 23,000 218,000 Contingencies @ 10%, approx 22,000 Total, Phase 1 $ 240,000 $ 240,000



Phase 2 Detailed geophysical surveys, possibly 3-dimensional IP on selected targets. Provisional budget $ 150,000 Total, Phases 1 and 2 $ 390,000

Results of Phase 1 should be compiled into a report written by a Qualified Person. Continuation to a subsequent program should be contingent upon positive conclusions and recommendations from a Qualified Person.

Date and Signature Page

Vancouver, B.C. Locke B. Goldsmith, P.Eng., P.Geo. October 25, 2011 Consulting Geologist



References British Columbia Minister of Mines. Annual Reports, 1923-27,1932, 1937

Cairnes, C. E., 1925. Pemberton Area, Lillooet District, B.C., Geological Survey of Canada, Summary Report 1924, Part A, pp 76-99

Condon, F., and Scott J. S., 1973. Geological and geochemical report, Owl Creek Area, B.C., for Mining Corporation of Canada, Geological Survey Branch Assessment Report # 599

Fawley, A. P., 1960. Geological report on claim numbers 393622-393635, B.C. Geological Survey Branch Assessment Report # 361

Fisk, K. P., 1989. Report on combined helicopter-borne magnetic, electromagnetic and VLF Survey, Pemberton, B.C., for A and M Exploration Ltd. Geological Survey Branch |Assessment Report # 19735

Gatchalian, F., and Witherly, K. E., 1974. Geological, geochemical, geophysical and drilling report on the Owl Creek Property, Pemberton, B.C., Utah Mines Ltd. Geological Survey Branch Assessment Report #5292

Jackisch, I., 1993. I.P/Resistivity survey on the Owl Property, southwestern B.C., Cominco Ltd. Geological Survey Branch Assessment Report # 22991

Naylor, H., and Scott, J. S., 1973. Geological report on claims at Owl Creek, Lillooet Mining Division, B.C., Pine Lake Mining Co. Ltd. Geological Survey Branch Assessment Report # 4623

Noakes, S. B., 1992. Geochemical soil sampling, Pemberton property (Owl claims), Lillooet Mining Division, Pemberton Lake Area, B.C., Cominco Ltd. Geological Survey Branch Assessment Report # 22889

Pautler, J., 1991. Geological, geochemical, and geophysical report on the Sungold property, NTS: 92J10W, Lillooet Mining Division, Teck Corporation. Geological Survey Branch Assessment Report # 21274

Pezzot, E. Trent, P.Geo, 2011. Geophysical interpretation on an airborne magnetometer survey, Owl Creek property, Lillooet Mining Division, British Columbia. Private report for Clear Mountain Resource Corp.

Rastad, S., and Pezzot, E. T., 2006. 3D induced polarization on the Gold King Property, Tenquille Lake grid, Pemberton, B.C., Goldking Mining Ltd. Geological Survey Branch Assessment Report # 28607

Rayner, G., and Witherly, K. E., 1974. Geological, geochemical, geophysical and drilling report on the Owl Creek property in the Lillooet Mining Division, B.C., Utah Mines Ltd. Geological Survey Branch Assessment Report # 5455

Riddell, J. M., 1990. Stratigraphy of Mesozoic rocks east of Pemberton, B.C. and the setting of mineral showings (92J/2,7,10), Geological Fieldwork 1990, EMPR, Geological Survey of British Columbia



Riddell, J. M. and Helm, S.M., and Pautler, J.M., 1991. Geology of the Tenquille Lake, Owl Creek and Lillooet Lake Area, O.F. 1991-12 (92J/1,2,7,10,) (compilation map at 1:100,000) EMPR, Geological Survey of B.C.

Roddick, J. A., and Hutchison, W. W., 1973. Pemberton (east half) Map Area, B.C., Geological Survey of Canada Paper 73-17

Sanders, K. G., and Hrkac R., 1969. Geochemical report on the Ray claim group, Pemberton, B.C., Pine Lake Mining Co. Ltd. Geological Survey Branch Assessment Report # 2106

Seraphim, R. H., 1971. Geological report on the O.C. and K.B. claims, Owl Creek, Lillooet Mining Division, B.C., Pine Lake Mining Co. Geological Survey Branch Assessment Report # 3625

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28 Engineer’s and Geologist’s Certificate

Locke B. Goldsmith, M.Sc., P. Geo., P. Eng.

1. I, Locke B. Goldsmith, am a Registered Professional Engineer in the Provinces of Ontario and British Columbia, and a Registered Professional Geologist in the Province of British Columbia and the States of Oregon, Minnesota, and Wisconsin. My address is 401–545 Clyde Ave., West Vancouver, B.C. My occupation is that of Consulting Geologist. 2. I have a Mining Technician Certificate from the Haileybury School of Mines, a B.Sc. (Honours) degree in Geology from Michigan Technological University, a M.Sc. degree in Geology from the University of British Columbia, and have done postgraduate study at Michigan Technological University and the University of Nevada. I am a member of the Society of Economic Geologists and the AIME. 3. I have been engaged in mining exploration worldwide for the past 53 years. I have conducted field programs designed to explore and evaluate disseminated copper and molybdenum (“porphyry-type”) and related epithermal and volcanogenic deposits in the Western Cordillera of North and South America, Southeast Asia, and China, beginning in 1968 and continuing to the present. 4. I am a “qualified person” as that term is defined in National Instrument 43-101. 5. I have written the report entitled, “Owl Creek Mineral Claims, Geological, Rock Geochemical, and Airborne Magnetic Surveys, Lillooet Mining Division, British Columbia, Canada”, dated October 25, 2011. The report is based on published and unpublished geological reports, maps, and data collected while I was on the property November 7, 2010. 6. Other than the time on the property on November 7. 2010, and review of data for purposes of this report, I have had no direct involvement with the property that is the subject of this report. 7. I am responsible for all of the technical report. 8. At the effective date of the technical report, to the best of my knowledge, information, and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. 9. I am independent of the issuer, applying the guidelines of section 1.4 of National Instrument 43-101. I have no ownership in the property or in the shares of Clear Mountain Resource Corp. 10. I have read National Instrument 43-101, 43-101CP, and Form 43-101F1. The technical report has been prepared in compliance with 43-101 and Form 43-101F1.

Respectfully submitted, Vancouver, B.C Locke B. Goldsmith, P.Eng., P.Geo. October 25, 2011 Consulting Geologist

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OWL CREEK MINERAL CLAIMS