Report on The Twilite Property

2011 Geological, Geophysical and Geochemical Data Compilation.

On Map-Staked Licence 16389M (Second Year)

Grand Falls-Windsor Area, Newfoundland, NTS Mapsheet NTS 2D/13

For

KAT Gold Holdings Inc. and KAT Exploration Inc.

Total Claims: 20

Total Expenditures - $18,860.00

By

Barry A. Sparkes, B.Sc.(Hons.), P.Geo.

KAT Gold Holdings Corp. and KAT Exploration Inc.

1149 Topsail Road Mount Pearl, NL A1N 5L1

November 21st , 2011

Table of Contents

1.0 Summary 2 2.0 Property Description, Ownership and Status 3 3.0 Location, Access and Terrain 5 4.0 Previous Exploration 6

5.0 Geological Setting 8 6.0 Property Geology 9 7.0 Mineralization 9 8.0 Current Work 10

8.1 Compilation 10 9.0 2011 Program Proposal 11

10.0 Conclusions 15 11.0 List of Personnel and Contractors 16 12.0 Statement of Expenditures 17 13.0 References 17 14.0 Certificate of Author 19

Appendices

Appendix A Re-entered Diamond Drill Log Databases (CD) (Back Pocket)

List of Tables

Table 1: Claims Information - Twilite Project. 3 Table 2: Proposed 2011 Work Program Budget 15

Table 3:

List of Personnel and Contractors. 16 17

Table 4: Statement of Expenditures

List of Figures

Figure 1: Location of the Twilite Property in Central Newfoundland 4 Figure 2: Figure 3:

Claims Location Map Regional Geology Map

5 8

Figure 4: Property Compilation Map 11 Figure 5: Proposed 2011 Work Program 14

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1.0 Summary

Eligible assessment work completed by Kat Exploration Inc. (KATX) in 2011 on the Twilite Gold Property near Grand Falls-Windsor in Central Newfoundland consisted of digital data compilation of previous diamond drilling, geological, geochemical and geophysical data. Ten of the fifteen drill logs were entered into the KAT Microsoft Access Database. Historic geological and geophysical data completed by Fort Knox was entered into a GIS-based MapInfo workspace, in addition to geochemical till sampling conducted by Altius Resources Inc. All data compiled and georeferenced is presented in the compilation maps included in this report and drill logs are attached as digital files in the back pocket of this report. The compilation and interpretation of the data lead to a significant 2011 work program proposal. Unfortunately, the program was never carried out and further work of compilation of data ended in the summer of 2011 due to lack of funding. This report covers the work completed up to end of the current author’s employment with KAT Exploration. This report is being completed under a short-term contract between the author and KAT Exploration Inc. Eligible assessment expenditures for license 16389M total $18,860.00 which will ensure that the license is in good standing until September 2012.

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2.0 Property Description, Ownership and Status

This report covers the first year assessment work carried out on map staked mineral licence 16389M, and is referred to as the Twilite Property (Figure 1). The license is held by KAT Exploration Inc., (KAT) a mineral exploration company chaired by Mr. Stead, under an option agreement with local prospectors. KAT Exploration operates all of its current exploration activity within Newfoundland and Labrador at present, and is registered in the state of Nevada, U.S.A. KAT trades on the US market on the Pinksheets with the symbol KATX. Previous operators on the project include Fort Knox Resources and Altius Resources Inc. Several prospectors have held or optioned the property since its discovery in 1998. The Twilite Property license comprises 20 total claims (License 16389M) covering an area of 5 square kilometres (Figure 2 and Table 1). They are located on 1:50,000 NTS map sheet 2D/13. The northeast corner of the claim group is located at UTM coordinate 5 410 000 N, 591 000 E (NAD 27, UTM Zone 21). This report covers the second year assessment work for license 16389M. License 17311M, as depicted on Figure 2, has since been allowed to lapse. The table below outlines the details for the remaining license on the property.

Table 1: Twilite Project License

License Property Claims Date Issued Work Due Required Expenditures Mapsheets Status

016389 Twilite 20 August 25, 2010 July 26, 2011 $ 13,785.76 2D/13 Issued

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Figure 1: Location of the Twilite Property in Central Newfoundland

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Figure 2: Claims location map, Twilite Property.

3.0 Location, Access and Terrain

The Twilite property is located in Central Newfoundland, approximately 13 km southwestfrom the town of Grand Falls – Windsor. The property is centred at 589500mE, 5410500mN on NTS map sheet 2D/13 (see Figure 1). Access to the property area is excellent. The Sandy Lake forest access road begins 500 meters west of the bridge over the Exploits River immediately behind the Abitibi Mill in Grand Falls and extends southwest through the centre of the property. Access to other parts of the property (apart from the northeast quadrant) is provided by a network of old forest roads and ATV trails, all of which can be accessed via the Sandy Lake road. Hilly terrain in the north and south, and broad east-west trending lowlands in the centre characterize the Twilite property. The maximum elevation is 225 meters ASL (northern region), while the minimum elevation is 160 meters ASL (central region). Several northeast-southwest

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and northwest-southeast topographic depressions incise the entire property, often bearing small ponds, streams and alder filled swamps. Stony Brook marks the eastern property boundary and flows northward where it meets the Exploits River. The property is almost entirely covered by vegetation. Mixed coniferous and deciduous, young to mature trees, namely fir, spruce, and birch with patches of alder adjacent to roadbeds and marshland dominate the landscape.

4.0 Previous Exploration

During the period between 1974 and 1991, several exploration companies conducted work within the vicinity of the Twilite property. Government surveys also covered the property, including; 1) Till Geochemistry of the Grand Falls – Mount Peyton Area (1998), 2) Lake Bottom Geochemistry survey (1998) and, 3) 1: 50 000 scale geological mapping by Kean and Mercer (1981). For a more detailed overview of work in this area, the reader is encouraged to read reports written by Patrick Lewis (1999) on behalf of Fort Knox Gold Resources Inc. (NL Government file numbers; 2D/13/357 and 2D/13/374). During the mid-summer of 1998, local prospectors Gerald Pardy, Stephen Courtney, and George Lannon discovered gold mineralization adjacent to the newly constructed Sandy Lake forest access road. The original discovery named the “Discovery Prospect” is centred in an area of 200 x 1200 meters with, reportedly, numerous gold occurrences. The Twilite (a.k.a. Twi-Lite) property was optioned to Fort Knox Gold Resources Inc. 1998-2000 and Altius Resources 2002-04. Both companies carried out an extensive evaluation of the property. Fort Knox determined that although grades intersected in drill holes were high, intervals were not of mineable widths. Altius Resources Inc. concluded Twilite had positive upgradeable potential. Rubicon Minerals Corporation briefly examined the property in 2005. Licence holders G. Lannon and S. Courtney conducted modest prospecting surveys until KAT optioned the property. Fort Knox Gold Resources Inc. two year program consisted of line cutting, prospecting, geophysical (IP, HLEM and Magnetometer) surveys, soil sampling, trenching, geological mapping and diamond drilling 15 holes totalling 1,631.25 m. The drilling was concentrated on a 200m x 1200m area (the Discovery prospect), the locale of numerous epithermal and mesothermal gold occurrences characterized by variable alteration and host rocks. Predominant gold showings within this area (others occur on the property) include: (1) Discovery prospect – selected grab samples containing VG (visible gold) returned values up to 202 g/t gold in a zone of quartz veining and silicification, channel samples returned 3.48 g/t and 5.30 g/t gold in a contiguous 1.0 meter sample across the widest portion of the vein; (2) Spring Pit prospect – values to a high of 14.9 g/t gold occur in bedded pyrite and graphitic mud of a siltstone host; (3) 320 Vein – a zone of quartz veins and quartz breccias host gold values with a high of 16.5 g/t gold and 23.8 g/t gold occurring 30 m to the NE in a pyrite-silicification zone;

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(4) Paddy’s Pit prospect – grab samples returned 1.46, 7.11, 10.75 and 23.8 g/t gold from silicified and brecciated siltstone; (5) Gerry’s Pit showing – a grab sample returned 4.8 g/t gold from a pyritic shear zone and; (6) Far West showing - returned 7.0 g/t gold. Best returns for the final three holes (TL9913-15) drilled were 1.57 g/t gold over 0.61 m and 1.57 g/t gold over 2.44 m in DDH TL99-13, 6.25 g/t gold over 1.01 m and 1.43 g/t gold over 2.43 m in DDH TL-14 and 1.52 g/t gold over 3.35 m in DDH TL99-15. Fort Knox concluded, albeit based on limited drilling, that anomalous gold was confined to a 10-20 m wide deformation zone and limited to 1.0 -3.0 m (widths?) grading 1.0 –2.0 g/t with an occasional high grade spike at surface and at depth. Altius Resources Inc. re-examined work by Fort Knox and found at least two NE-SW trending structures hosting significant low-sulphidation epithermal-style gold on the property. The structures intersect the NE-SW trending Ordovician-Silurian contact. Mineralization occurs within fault zones and is associated with multistage silicification. Pyrite-arsenopyrite mineralization, having an association with a fine-grained copper-lead-antimony sulphosalt, is cut by late quartz-stibnite veins. Re-sampling and check assays of Fort Knox drill core confirmed the values and locally higher values and the previously reported gold-arsenic-antimony-mercury association. Correlation was found to exist between: anomalous gold, arsenic, barium, antimony, mercury, molybdenum and thallium in till samples that define a NW-SE trending corridor; airborne NE-SW trending magnetic linears; and known gold occurrences. Fluid inclusion studies of the Discovery prospect determined the origin of mineralization at this locality to be epithermal. Altius outlined several multi-element till geochemical anomalies at Twilite and in an area 2-4 kilometers to the northwest. These new anomalies have never been followed-up on with any systematic exploration. A staking plan and proposed 2-phase program is outlined for this project below. Altius recognized that the Discovery and 320 Vein showings, which returned values of 202 g/t gold and 23.8 g/t gold respectively, had additional potential down dip and along strike to the NW and were controlled by two separate NW-SE trending structures. They recommended drilling three holes to test that hypothesis. Other recommendations included expanding the Fort Knox grid in a NW direction with NE-SW cross lines spaced at 200 m intervals in order to carry out a VLF-EM survey to target NW-SE trending structures and help identify the Ordovician-Silurian contact. Favourable targets identified would be followed up by trenching and a series of short holes however none of these recommendations were implemented. Property examination and grab sampling by Rubicon Minerals Corporation at the Spring Pit and 320 Vein returned 719 ppb gold from arsenic-pyrite-antimony bearing graphitic shale containing quartz stringers, and 4056 ppb gold from arsenic-pyrite bearing quartz breccias and vein fragments in mudstone. Prospectors Courtney and Lannon, in 2005 and 2006, respectively, outlined soil arsenic anomalies northeast of the original area explored and confirmed gold-arsenic-zinc soil anomalies in an area which did not receive follow up.

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5.0 Geological Setting

The Twilite property is underlain by Middle to Lower Ordovician Victoria Lake and Tally Pond Group volcanics and sediments, and Silurian sediments all of which are part of the much larger Dunnage Zone of the Newfoundland Appalachians (see Figure 3). The Tally Pond Group consists of mafic to felsic volcaniclastics with intercalated siltstone and argillite. The Tally Pond Group is separated from the Silurian fine-grained clastic sediments to the north by an east-west and northwest-southeast trending horizon of Caradocian graphitic and pyritic shale that extends across the width of the property. This shale horizon has been mapped by airborne geophysics as a fault disrupted unit. The most dominant intrusive unit in the area is the Crippleback Lake quartz monzonite located west of Diversion Lake. This intrusive body is interpreted to be co-magnetic with the Tally Pond volcanic rocks. Gabbro intrusives, although minor in abundance, intrude the volcanic and sedimentary units.

Figure 3: Regional Geological Setting.

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6.0 Property Geology

Pillow basalt and deep marine sedimentary rocks of the Ordovician Victoria Lake Group underlie the southern part of the Twilite property. Early Silurian clastic marine sedimentary rocks of the Badger Group underlie the northern part. Units of the Victoria Lake and Badger Group underlie the eastern part of the property. These units are in structural contact with Late Silurian, shallow marine, calcareous, fossil-bearing sedimentary rocks and subaerial volcanic rocks of the Botwood Group. The contact that separates older units from Late Silurian lithologies is marked by a regional, northwest dipping, carbonaceous fault zone (Figure 4). At least two significant northeast trending structures have been identified on the Twilite property. Both structures host significant gold mineralization and both appear to intersect the northeast trending Ordovician-Silurian contact.

7.0 Mineralization

The Twilite property features low-sulphidation epithermal-style gold mineralization and shares many characteristics in common with the Moosehead bonanza-style gold property located 30 km to the northeast. On the Twilite property, deformed carbonaceous argillite, mudstone and siltstone are the primary host rocks to sulphide mineralization, which predominantly consists of pyrite and arsenopyrite. Mineralization accompanies multistage silicification including deformed quartz veins, fine-grained massive silica and locally vuggy silica within fault zones. Late quartz-stibinite veins locally cut pyrite-arsenopyrite mineralization. Polished thin section examination identified fine-grained copper-lead-antimony sulfosalts in association with pyrite and arsenopyrite. The presence of sulfosalt minerals is significant in that these exhibit a very close spatial association with bonanza-grade gold mineralization. Gold mineralization on the Twilite property is hosted by both northwest and northeast orientated structures. Two principal mineralized areas are associated with separate sub parallel northwest trending structures that are 300 meters apart. To the east, these structures appear to intersect a northeast-trending fault zone, which also hosts mineralization. The Discovery Showing (see Figure 3) is partially exposed over 30 meters adjacent to a forest access road and occurs within a northeast trending carbonaceous fault zone. Within the fault zone, pyrite, arsenopyrite, stibinite and sulphosalt minerals accompany a multistage quartz stockwork, including fine-grained massive silica and local vuggy silica. Grab samples and channel samples reportedly assayed 1 to 3 g/t Au, but locally exceeded 10 g/t Au. Grab samples of vuggy quartz veins and breccia with rare fine visible gold returned highest values of 93.0 g/t Au and 202.0 g/t Au. A grab sample of adjacent carbonaceous fault gouge assayed 14.9 g/t Au.

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The 320 Vein Showing (see Figure 3) consist of small quartz breccia veins in red to green siltstone and closely resembles quartz vein and vein breccia textures at Moosehead. A grab sample of arsenopyrite-bearing quartz breccia assayed 16.6 g/t Au. A single drill hole across the mineralized structure indicates the zone dips northeast. The hole cored a 16.8 meter interval of quartz vein stockwork and quartz breccia accompanied by sericite and dickite alteration, pyrite, arsenopyrite and multiple zones on anomalous gold values. The structural hanging wall consists of fractured, moderately northeast-dipping pale green-grey siltstone and argillite. Zones of pyrite and silicification occur 30 meters northeast of the 320 Showing. The highest grab sample from these outcrops returned 23.8 g/t Au. A separate northwest-trending structure is located 300 meters to the northwest. Drilling cored a northeast-dipping quartz stockwork developed in a carbonaceous fault zone that measures up to 25 meters wide and is consistently well mineralized.

8.0 Current Work

8.1 Compilation Eligible assessment work completed by Kat Exploration Inc. (KATX) in 2011 on the Twilite Gold Property near Grand Falls-Windsor in Central Newfoundland consisted of digital data compilation of previous diamond drilling, geological and geochemical data. Ten of the fifteen drill logs were entered into the KAT Microsoft Access Database. Historic diamond and drilling and geological data completed by Fort Knox was entered into a GIS-based MapInfo workspace, in addition to geochemical till sampling conducted by Altius Resources Inc. All data compiled and georeferenced is presented in the compilation map included below (Figure 4) and drill logs are attached as digital files in the back pocket of this report (Appendix 1).

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Figure 4: Property Compilation Map.

The compilation and interpretation of the data lead to a significant 2011 work program proposal. Unfortunately, the program was never carried out and further work of compilation of data ended in the summer of 2011 due to lack of funding. This report covers the work completed up to end of the current author’s employment with KAT Exploration. This report is being completed under a short-term contract between the author and KAT Exploration Inc.

9.0 2011 Program Proposal

Historically, the property was staked in 1998 following the discovery of gold mineralization by prospectors in a previously unexplored area in the general vicinity of the Altius Resources Inc. Moosehead property. Discovery of epithermal high grade bonanza-style gold sparked a staking rush in central Newfoundland. Epithermal gold is associated with fossil hot springs and geysers; Some well-known examples being the Sleeper and Midas deposits in Nevada. The Twilite Property also shares similarities with nearby Mesothermal-style high-grade gold prospects including Golden Promise and Golden Promise South which are likened to the famous Bendigo-Ballarat Districts in Australia. The Twilite Property occurs along the southwestern trending portion of the Moosehead Trend (possible epithermal genesis) and the eastern margin of the

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Golden Promise Property (mesothermal saddle reef environment). Regardless of the classification, or possible “hybrid” classification, the Twilite Property sits along favourable structures that is host to some significant gold mineralization in Central Newfoundland and requires an integrated and comprehensive exploration program to realize its full potential. Main Twilite Area Proposal Proposed exploration work on the Twilite Propsect includes compilation, historic grid refurbishment, approximately 8 kilometers of new grid-cutting to the northeast, soil geochemical sampling of the new grid extension, geological mapping/prospecting, mechanical trenching and channel sampling and diamond drilling in eleven drill holes totaling 1565 meters (Figure 5 and Table 2). Grid Refurbishment and Extension Approximately 33 line kilometers of the historic Fort Knox grid will need to be refurbished. This includes clearing brush and felled trees and chaining/re-picketting and GPS surveying of the grid with new posts and tags. A grid extension to the Northeast is proposed totalling 7.7 kilometers that would cover multi-element till anomalies in this un-tested region. Soil geochemical sampling is proposed at 25 meter spacing, standard for local gold exploration programs, totalling 308 samples. Geological Mapping and Prospecting, Mechanized Trenching Geological mapping and prospecting is planned for the Twilite Grid and historic trenches completed by Fort Knox to allow better understanding and interpretation by geologists going forward. Of key importance is the structural geology of the area with a focus on the controls on gold mineralization. Past work has identified both NE and NW trending gold-bearing structures that appear significant. Understanding the significance and relationship of these structures is crucial to the success of any planned work at Twilite. The newly extended grid area to the northeast will be mapped and prospected as well. A total of 100 rock assay samples are proposed, some of which will serve as check assays in areas of know gold showings and also includes channel sampling of any new trenches on the northeast grid extension (below). A mechanized trenching program is proposed to explore any new geochemical/prospecting targets generated in the extended grid area to the northeast along with a high till anomaly (29 ppb gold) 150 meters south of the Discovery Vein. Some geological target areas may be selected for trenching and/or retrenching to allow detailed geological mapping in key areas based on the initial field investigations. At this time, 7 days is proposed with an excavator to test targets. Geological mapping and channel sampling is to be completed as required on the new trenches. Diamond Drilling Diamond drilling is proposed to further expand the main Twilite Prospect. As proposed by Altius, but never carried out, were three drill holes to test the down-dip and strike potential of the

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Spring Pit/Discovery Showings and 320 Vein/Paddy’s Pit Showings. Altius proposed that these showings were controlled by two separate northwest-trending structures and returned gold values of 202 and 23.8 g/t gold. KAT plans to drill these holes and additional drill holes to expand on the known gold mineralization. Given the inherent erratic gold distribution and vein development in these types of deposits, drill spacing and expansions must be conservative to retain “geological control” on the system. In addition, ore-shoots in these types of structurally-controlled deposits are often present as laterally restricted bodies with a down-plunge control on mineralization. Using conservative drill step-outs is the most prudent way to evaluate the Twilite Prospect in its early stages for the reasons outlined above. A total of seven drill holes are proposed to test the Spring Pit/Discovery showing, many of which are targeting down-dip extensions of previous gold-bearing drill intersections. Previous workers were not entirely successful in intersecting the Discovery Vein at depth, therefore geological mapping is required before planning any drilling at this location on Section 10000E. One drill hole (PTL11-16) is proposed on section 10050E to test the Spring Pit Prospect at 125 meters vertical depth. The hole will be oriented at an azimuth of 300 degrees with a dip of -55 degrees. Historic drilling has intersected gold values of 10.9 g/t over 2.16 meters (TL99-10, 16% core recovery), 1.54 g/t over 2.0 meters (TL99-01) and 2.6 g/t over 1.2 meters (TL99-02). Six additional drill holes are designed to test the Spring Pit prospect where the mineralized structure takes an abrupt NE to NW orientation change. These holes will be drilled approximately perpendicular to the normal section lines (grid lines) like Fort Knox drilled historic holes TL99-13, 14 and 15, located at approximately 11000N. Proposed holes PTL11-17 and 18 will undercut historic holes TL99-13 and 14 which contained multiple gold intersections in the mineralized deformation zone. Hole TL99-13 intersected 1.57 g/t over 0.61 meters and 1.57 g/t over 2.44 meters at 50-60 meters vertical depth. Hole TL99-14 intersected 6.25 g/t over 1.01 meters and 1.43 g/t over 2.43 meters at 90-100 meters vertical depth. The proposed holes PTL11-17 and 18 are designed to intersect the zone at approximately 130 and 160 meters vertical depth respectfully. These holes will be drilled from the same setup toward grid west with dips of -60 and -73 degrees respectfully. Proposed holes PTL11-19 and 20 are to be drilled toward grid west but located approximately 25 meters north at 11025N. Anticipated vertical depth intersections are 80 and 120 meters respectively and are designed to intersect the zone at a similar elevation as holes TL99-14 and TL99-15. These historic holes have some of the better intersections observed to date and may represent a good opportunity to intersect a high-grade ore shoot. These holes will be drilled from the same setup toward grid west with dips of -50 and -70 degrees respectfully. Proposed holes PTL11-21 and 22 are to be drilled toward grid west, undercutting TL99-15, and are located approximately at 11050N. Hole TL99-15 intersected 1.52 g/t gold over 3.35 meters at approximately 80 meters vertical depth. PTL11-21 and 22 are designed to intersect the mineralized deformation zone at 105 and 140 meters vertical depth, and will be collared at -50 and -68 degrees respectfully.

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A total of four drill holes are proposed to test the 320 Vein and Paddy’s Pit showings to expand the gold mineralization down-dip and along strike in both directions. These showings are observed to be striking northwest, generally parallel to bedding, and quite distinct to the discordant mineralized deformation zone at the Spring Pit/Discovery area. Historic drill hole TL99-06, drilled toward the southwest, undercut both the Paddy’s Pit showing (~30 meters vertical depth) and the 320 Vein (60-80 meters vertical depth) with interesting results. The 320 Vein at depth is manifested as a broad zone of silicification and quartz veining with gold mineralization distributed over a 16.8 meter interval. Gold grades from 1-3 g/t were observed over intervals of 0.32 to 1.25 meters within this broader zone. Proposed drill holes PTL11-23 and 24 are designed to undercut the multiple intersections generated from hole TL99-06 at 100 and 125 meters vertical depth respectfully. The relatively conservative down-dip step-outs are considered prudent to test for higher-grade zones within the broad mineralized zone. Two further holes are proposed to test the zone 50 meters along strike in both directions, PTL11-25 and 26. These are currently presented to intersect the zone at 60-80 meters vertical depth but will be subject to adjustment based on the results of holes PTL11-23 and 24.

Figure 5: Proposed 2011 Work Program.

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Table 2: Proposed Work Program Budget

10.0 Conclusions

The Twilite Property holds very good potential for future discoveries of high-grade gold mineralization. Further understanding of the structural setting of known mineralization will be of paramount importance going forward. An aggressive program consisting of compilation, historic grid refurbishment, approximately 8 kilometers of new grid-cutting to the northeast, soil geochemical sampling of the new grid extension, geological mapping/prospecting, mechanical trenching, channel sampling and diamond drilling is warranted given the current high gold prices. Diamond drilling must remain tightly spaced (25 x 25 meters) to ensure the best possible control and opportunity to identify and define high-grade ore shoots if developed.

Item Number Units Cost/Unit AmountProject Geologis t 1 60 500.00$ 30,000.00$ Ass is tant 1 40 300.00$ 12,000.00$ Prospectors 2 20 300.00$ 6,000.00$ Compi lation 15,000.00$ Mechanized Trenching 1 7 1,000.00$ 7,000.00$ Grid Re-furbishment 1 33 400.00$ 13,200.00$ New Grid Cutting 1 7 500.00$ 3,500.00$ Diamond Dri l l ing + Assays 1565 110.00$ 172,150.00$ Ana lys is (Rock and Soi l ) 400 35.00$ 14,000.00$ Accommodation/food 40 150.00$ 6,000.00$ Rentals (Vehichle/equipment) 12,000.00$

290,850.00$ Contingency (10%) 29,085.00$

Total Proposed 319,935.00$

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11.0 List of Personnel and Contractors

A list of personnel and contractors is provided in Table 4 below.

Table 3: List of Personnel and Contractors.

Personnel Name Position Location

*Barry A. Sparkes, P.Geo. Exploration Manager - Program management, compilation and report writing Paradise, NL

*J. Wayne Pickett, P.Geo. VP Capital Projects – Compilation Conception Bay South, NL

*Note: Above listed personnel were employed by KAT Exploration at the time of compilation work.

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12.0 Statement of Expenditures

Table 4: Statement of Expenditures.

13.0 References

Churchill, R., 2002. Technical Report Regarding Airborne Triaxial Gradiometer Surveys over parts of Altius Resources’ Botwood Basin Properties: 3rd year assessment report – licence 8182m (Chiouk Brook property), 1st & 4th year assessment report - licences 7510m, 8250m, 8251m (Paradise Lake property), 4th year supplementary assessment report - licence 7724m (Rolling Pond property), 1st & 8th year supplementary assessment report - licences 8249m, 8413m (Moosehead property) & 1st & 5th year assessment report licences 8479m, 8867m, 7688m (Twilite property), NTS Sheets 02D/11, 02D/12, 02D/13, 02D/14 & 02E/03, Central Newfoundland.

Davenport, P.H., Nolan, L.W., Butler, A.J., Wagenbauer, H.A., and Honarvar, P., 1996. Digital Geochemical Atlas of Newfoundland. Newfoundland Department of Mines and Energy, Geological Survey. Gov. file No. NFLD/2607, version 1.2.

Kean, B.F. and Mercer, N.L., 1981. Grand Falls, Newfoundland. Map 81-099. Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey Branch, Mineral Development Division. Gov. file No. 2D/13/120.

Lewis, P., 1999. Assessment Report, Twi-lite property, Licence 6159M, 2nd year supplement. Exploration program: Trenching and Diamond Drilling. Report prepared for Fort Knox Gold Resources Inc. Gov file No. 2D/13/393.

Lewis, P., 1999. Assessment Report, Twi-lite property, Licences 6317M, 6318M, 6319M (1st year supplement), 6286M, 6287M, and 6159M (2nd year supplement). Exploration program: Prospecting and Geological Mapping. Report prepared for Fort Knox Gold Resources Inc. Gov. file No. 2D/13/374.

Lewis, P., 1999. First Year Assessment Report, Twi-lite property. Licences 6159M, 6286M, 6287M, 6317M, 6318M, 6319M, 6335M, 6336M, and 6337M. Exploration

Twilite Property - KAT Exploration ExpendituresLicense 16389M - Work Conducted From April to June 2011

Name Position Work Days Rate TotalBarry A. Sparkes Exploration Manager Management, compilation, reporting. 28 500.00$ 14,000.00$ J. Wayne Pickett Vice President Compilation 4 600.00$ 2,400.00$

Subtotal 16,400.00$ Overhead 15% 2,460.00$

Total Expenditures 18,860.00$

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program: Line cutting, Soil Geochemistry, prospecting, Stripping/Trenching, Geophysical Surveys and Diamond Drilling. Report prepared for Fort Knox Gold Resources Inc. Gov. file No. 2D/13/357.

Smith, R.L. and Butler, R., 2003. First and Fifth Year Supplementary Assessment Report on Core Re-Logging, Prospecting, Till Sampling, Airborne Geophysics and Fluid Inclusion Studies for Licenses 8479M, 8867M and 7688M. Twilite Property , Central Newfoundland, NTS 2D/13. Report prepared for Altius Resources Inc. Gov file No 2D/13/482.

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14.0 Certificate of Author

Barry A. Sparkes, B.Sc., P.Geo. 21 Cameo Drive

Paradise, NL A1L 2T6

I, Barry A. Sparkes, B.Sc.(Hons.), P.Geo. do hereby certify that: 1. I was employed by KAT Exploration Inc. as Exploration Manager during the period of the work

conducted, with a business office at: 1149 Topsail Rd. Mount Pearl, Newfoundland A1N 5G2 Telephone: 709-368-9223

2. I graduated with a Bachelor of Science (Hons.) degree in Geology from Memorial University of

Newfoundland in 2001. In addition, I obtained a Mineral Technology diploma from College of the North Atlantic (formerly WestViking College) in 1996.

3. I am a Registered Professional Geoscientist in good standing with the Professional Engineers and

Geoscientists of the Province of Newfoundland and Labrador. 4. I have worked as a geologist for a total of 10 years since my graduation from university and as a

mining technician, geological technician and prospector since 1996.

5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

6. I am author of the technical report titled: “Report on The Twilite Property, 2011 Geological, Geophysical and Geochemical Data Compilation. On Map-Staked Licence 16389M (Second Year) Grand Falls-Windsor Area, Newfoundland,NTS Mapsheet NTS 2D/13”

7. I am not aware of any material fact or material change with respect to the subject matter of the

Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.