CZDLQuarriers and fabricators of building stone and memorialization products.

COLD SPRING GRANITE COMPANY, 202 South Third Avenue, Cold 800-328-5040 320-685-3621 Fax 320-685-8490

2.jAh

rru f^u- * L ijEOSCltWCt ASSESSMENT L u * - -The purpose of this assessment wjbrfc was: agFJ-EP open up jmore quarry area by stripping away overburden and, 2) To view granite color in the newly opened areas by core drilling. All the assessment work was performed on claim # 1160896 (formerly claim # 1149700).

Overburden was stripped away until stone was visible in three areas. Newly stripped area totals 1.5 hectares. The stripped areas all fall within the 5 year boundary line of the quarry plan. (Please see sketch #1) The first area is located on the west side of the quarry access road and is approximately .49 hectares in size. The overburden was pushed into a berm ringing the stripped area. The second area is located on the east side of the quarry road and is approximately .07 hectares in size. The overburden was piled around the stripping. The third area is located to the west and north of the original ledge and is approximately .94 hectares in size. Part of the overburden was pushed into a berm on the west and north side and part was piled into two piles towards the middle of the stripping.

On the surface, the stone uncovered from the recent stripping in all locations appears to have the same color and crystal structure as the granite we have been quarrying on the active ledge, as well as the granite uncovered during last years stripping.

A total of twelve - ten hour days was spent removing the overburden from the three sites. The project started on August 3, 1998 and was completed on August 14, 1998. The only piece of equipment used for this work was a 60,000 Ib 325 Catapillar backhoe with a l yard bucket. Cost for stripping was SSS.OO/hour @ 120 hours, equaling S10,200.00 US. Cost to ship backhoe in and out was S3,000.00 US for a total of S13,200.00 US. There was no further cleaning of the stripped ledge, this will be completed as necessary.

Test holes were drilled at seven different locations to determine color (Please see sketch #2). The equipment used was a Boart Longyear air drill system. Seven l .6 inch diameter holes were vertically drilled to a depth of 20 feet. Core samples were too small in diameter to get a real good indication of what is happening with the granite to twenty feet. What was learned from the samples is that the granite still appears to be similar in color and texture throughout the seven locations. However, when blocks are extracted we see variation in color and texture. Quarry operators see lots of waves or movement, light and dark shades and irregular crystals going from small to large. The average absorption is at Q.16%, the average compressive strength is 20,400 psi and the average flexural strength is 1,200 psi. It is thought that as the quarry progresses to the south, we will move into more uniform granite. More core samples are planned for the upcoming year to help determine this. Cost to drill the core samples was S6,100.00 CAD. The work started on October 2, 1998 and was complete on October 5, 1998. The contractors were N Morissette from Haileybury, Ontario.

52K04SW2002 2.19127 KILGOUR LAKE 010

Cold Spring Granite Company is certified to the ISO 9001 standard for quality management.

CC-006-96

At this time I am submitting a report for only the most recent developmental work performed at the Royal Auburn quarry for your review. I am doing this so I can ensure that claims coming due at the end of this month are covered in time. At a later date I will be submitting a Declaration of Assessment Work Performed report for developmental work that was done on this claim in 1996 and 1997.

Sincerely,

Brian D. Sjaaheim Environmental Engineer Cold Spring Granite Company

Enclosures ENBDSCWA.1298

TETC a \

Cold Spring GraniteAttn: Mr. Chuck Muehlbauer202 South 3rd AvenueCold Spring, Minnesota 56320

TRINITY ENGINEERING TESTING CORPORATION

AUSTIN _______ TEXASTETCO PN 3786

l 9 Miscellaneous Granite Testing

DATE:

REPORT8-05-96 T-8199 Page l of2

REPORT OF: LAB NUMBER: MATERIAL DESCRIPTION:

MATERIAL SOURCE: SAMPLED BY: TEST METHOD: TEST PERFORMED BY: RESULTS:

Flexural Strength of Dimension StoneG-2854Pink and grey granite, 3 1/2" x l 1/4" x 12 1/2"; SawFinish Both SidesOntario Deposit (pre-development testing)Cold Spring Granite CompanyASTM C880-93J. Nichols, AET

Wet Condition - (Load applied perpendicular to rift direction.)

Specimen Mark Wet Condition

FIF2F3F4F5F6

Total Load,

Ibs. 785 975 865 920 920 860

Distance Between Supports,

in.11H11111111

Width,in.

3.453 3.406 3.406 3.406 3.422 3.406

Depth, in.

1.240 1.313 1.234 1.280 1.297 1.219

Flexural Strength

Average of Sample Standard Deviation

52K04SW2002 2.19127 KILGOUR LAKE 020

The results shown on this report are for (he eiclusive use o* (he client (or whom tr.ey were obtained and apply only to the samples tested and/or in spected. They are not intended to be indicative of (he qualities of apparently identical products. The use of our name must receive our prior written approval.

FORM 10303

TRINITY ENGINEERING TESTING CORPORATION

AUSTINf T E T C O \

TEXASTETCO PN 3786

TO: Cold Spring Granite Company Attn: Mr. Chuck Muehlbauer 202 South 3rd Avenue Cold Spring, Minnesota 56320

PROJECT: Miscellaneous Granite Testing

DATE' 8-05-96 REPORT NO.: j.8199 Page 2 of 2

REPORT OF: LAB NUMBER: MATERIAL DESCRIPTION:

if

MATERIAL SOURCE: SAMPLED BY: TEST METHOD: TEST PERFORMED BY: RESULTS:

Flexural Strength of Dimension StoneG-2854Pink and grey granite, 3 1/2" x l 1/4" x 12 1/2"; SawFinish Both SidesOntario Deposit (pre-development testing)Cold Spring Granite CompanyASTM C880-93J. Nichols, AET

Wet Condition - (Load applied parallel to rift direction.)

Specimen Mark Wet Condition

VIV2V3V4V5V6

TotalLoad,Ibs.

1030810

1090925855765

DistanceBetweenSupports,

in.111111121212

Width,in.

3.4303.3753.4063.5313.4383.406

Depth,ijL1.3441.2501.3751.3591.4381.250

Flexural Strength

Average of Sample Standard Deviation

LbsVin21,3701,2701,4001,2801,0801,2901,280111

MPa9.468.749.638.807.468.918.830.76

COPIES T0i2-Above Report reviewed by:

TRINITY ENGINEERING TESTING CORPORATION

The results shown on this report are for the exclusive use of the client for whom th.ey were obtained and apply only to the samples tested and/or in- spected. They are not intended to be indicative of the qualities of apparently identical products. The use of our name must receive our prior written approval.

(g) Ontario *t* Mm**Declaration of Assessment Work

••* e * *Performed on Mining Landl MO), ft.1.0. IN*

ITtMMUon Nvnew to/Be* uM

K *S(Z) if* Md) o* X* MMng Act Under M*i*m*m MA lUMMry o)

52K04SW2002 2.19127 KILGOUR LAKE 900Instructions: - For work performed on Crown Lands before recording

. Please type or print In lr*\ ~ HT f\ 4Z ;-l-*t l1. Recorded holders) (Attach a dst if necessary)Hunt

AddraM

Hum

fiM'M*

COLD SPRING GRANITE COMPANY

202 South 3rd

Cold Spring,

Avenue . . . . .

MN 56320 .

. . . .

. - .

-

ClkMNumbw119571

rtWpMiv NumMr320-685-3621

^UUUMMT

320-685-5056ClhmNumbv

T.Uphon.Mumt. ' '

Fix Nun**

2. Type of work performed: Check ( ^ ) and report on only ONE of the following groups lor Into declaration.

' P") RehabilitationD Geotechnical: prospecting, survey*, assays and work under section IB (regs) 0 Physical: drifting, stripping.

Uenchlng and associated assays

wo* TIP* stripping overburden Core sampling . . .

'JZZ? rm ,3|^|98 T8 S-I-L0 !,?.8Gubri N*lkxmns Syilnn D.I. (1 melin*) lonnsttQlfn*

Kilgour Lake AreaM or G-Ptan NumMr

G-2626

Office Use -Commodtty - - — -—Total t Value of ^ Workaaimw) J.^^'S-S

NTS Rsference " .-' ' ~ '

Mining Dtvitiari

Residonl GaotQQlsi OlMliCt

Please remember to: - obtain a work permit from the Ministry of Natural Resources as required;- provide proper notice to surface rights holders before starting work;- complete and attach a Statement ol Costs, form 0212;- provide a map showing contiguous mining lands that are linked for assigning work;'- include two copies of your technical report

3. Person or companies who prepared the technical report (Attach a list if necessary)H*ir*

Brian D. SjaaheimfM\*m

202 South 3rd Avenue, Cold Spring. MNNl/IM

56320AOOfM*

NtfK*

Aoytx

320-685-4838FuNuntar

320-685-5056TcltphoM Nvmtc

rsrtKSEi ————————————

4. Certification by Recorded Holder or Agent

lr Brian D . Sj aaheim , do hareby certify thai 1 have personal know

RECEIVEIDJ4fl

JAN 0 8 13S3 ,o-- !GEOSCICI*ef-^59ESSMENTj^ OFFICE

0

fat Nimtforth in this Declaration of Assessment Work having caused the work lo be performed or witnessed the same during or after Its completion end. to the best ol my knowledge, the annexed report Is true.

TMvplww NumMf1/6/99

PAGE.l6

S. Wort to b* recorded and distributed. Work can only be asalgned to dalma that ara contiguous (adjoining) lethe mining land where work was performed, at the rima work waa performed A map ahbwrlng the oonllguoui Ink,rnual accompany this form. - ' VjO^^TtD ,OtO^5

Mining Ctelin HumkO'. Of U vork *** tene on olne' eligible mining lend, enow in in* column IK* tocH.cn ngmber Indleeiod en the cUUm mep.

•4

eg

•9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

IS

TB 7827

12W567

1234568

1160896

116089911609001160901

1160905

umber of Claim nltl. For ahw

nining l*nd. lil

1C ha

H

2

4

41

12~

-

--

-

j.". .

Column Totele

Velu* or vert

diim or odtot mining len*.

w* easo

t e. 892$26,428

00

00 "

-•-

. . -...

- -

f^S" "*L

fzj O

$26,428

Vtiwe o* **i* •pele* lo IM* ctem.

N/A

124.000

t 4.000

$6,400

$8,000*2,000$2,000

' S3, 200

-

.

t 1.2x **v-

121,600

V*lu* ol wont tttlfntd M Olnor mnmf dekne.

124.000

0

0

$15,200

00

0"o

^ - ..

?

$15,200

••nk, v*)u* of *ot

ei i tmiKe one.

S2.S25

0

H0Q2

$4'i 6^8

00

0"o"

-- " --•---

li'-:..- :.

14,828

., do hereby certify that the above work credits are eligible underl Brian D. Sjaaheim______' (Poo Fid HIM)subsection 7 (1) ol the Assessment Work, Regulation 6/96 for assignment lo contiguous claims or lor application to

- the claim where the work was done.

8. Instruction* for cutting back credlta that are not approved.

Some of the credits claimed in this declaration may be cut back. Please check ( * ) in the boxes below to snow how

you wish lo prioritize the deletion of credits:

O 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated.

D 2. Credits are lo be cut back starting with the claims fisted last, working backwards: or

Et 3. Credits are to be cut back equally over an damns fisted In this declaration; or O 4. Credits are to be cut back as prioritized on the attached appendix or as follow (c\

Note: If you have not Indicated how your credits are to be deleted, credits win be cut back from followed by option number 2 if necessary.

JAN O 8 1D93GEOSC

For Offlce Use OnlyrtecjiveoSemp——————

PKSfdmg br Wiing !Uart*r

SOI

NOU 25 "97 10:36 70S S70 5742 PAGE.l"

Ministry olNorthern Developmentand l

Statement of Costs for Assessment Credit

Transidion Numb* (o"** uct)

Personal information collected on mi* lam It obtained under in* authority o* tubMclion 6(1) of Do Actesvnent Work R*gulMion 6SM. Under uciion l ol Ut* Mining Act. ilw information it a public record. Tnii information wi* bi utod w review in* asuument work and corrMpond with in* mining land holder. Qjetttons about iriit c*l*ction thook) b* directed lo in* Chi*l Mining A*cord*r, Mniury ol Northern Devtlopnient md Mints. 6lh Float. 933 Ramsey Lake Road. Sudbury, Ontario. P3E 665.

P.M.

Work Type

StrippingCore Sampling

Unit* of WorkDepending an m* iyp* ol wvrk. list m* number ol nouri/dayt Marked, meuet of dnlkng. kite- rrab** el grw lin*, numb*/ g) umpm. tlc.

120 hours 3-14/8/98

4 days 2-5/10/98

Cost Per Unit of work

185.00/hr

0 i C, 1 *2 'i^ * A '

Associated Costs (e.g. supplies, mobilization and demobilization).

Transportation Costs

Shipping backhoe in and out

Food and Lodging Costs

^.DlNGP.* —.

^:D

\f j. "

REG!JAN C

GEOSCIENCEOf

; Total Value of Assessment Work

Total Cost

$10,200 US

16,100 CAD

EIVFDpf,n.

8 1933 i j "

ASSESSMENTFICE

$ 1,0.00. ITS

$26,428 CAD

US costs figured at $1.54 CAD/ $1.00 US

ns o' Filing Discounts:

1. Work filed within two years of performance is claimed at 10CW of the above Total Value of Assessment Work.2. If work is filed after two years and up lo five years after performance, it can only be claimed at SOVo o' the Total

Value of Assessment Work. If this situation applies to your claims, use the calculation below:

TOTAL VALUE OF ASSESSMENT WORK x 0.50 = Total S value of worked claimed.

Note:- Work older than 5 years is not eligible for credit.- A recorded holder may be required to verify expenditures claimed in this statement of costs within 45 days of a request for verification and/or correction/clarification. If verification and/or correction/clarification is not made, the Minister may reject all or part of the assessment work submitted.

Certification verifying coats:

l Brian D. Sjaaheim____ t rj0 hereby certify, that the amounts shown are as accurate as may(pilot* P""t run n*m*)

reasonably be determined and the costs were incurred while conducting assessment work on the lands indicated on

the accompanying Declaration of Work form as Agent - Environmental Engineer i am authorizedCtenoid Itoldv. *fl*m. or nau oompiny pomon *im 091*09 luttxxititi

to make this certification.

HOU 2? '97 10:37c/

'05 E70 5742 PHGE.15

Ministry of Ministere duNorthern Development DeVeloppement du Nordand Mines et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road

September 13, 1999 6th FloorSudbury, Ontario

Brian D. Sjaaheim P3E 6B5 COLD SPRING GRANITE (CANADA) LTD.202 SOUTH 3RD AVENUE Telephone: (888) 415-9846 COLD SPRING, MINNESOTA, Fax: (877)670-1555 563-20

Visit our website at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2.19127

Status Subject: Transaction Number(s): W9910.00006 Approval After Notice

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact Lucille Jerome by e-mail at lucille.jerome@ndm.gov.on.ca or by telephone at (705) 670-5858.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 13897

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.19127

Date Correspondence Sent: September 13,1999 Assessor: Lucille Jerome

Transaction NumberW991 0.00006

First Claim Number1160896

Township(s) 1 Area(s)

KILGOUR LAKE

StatusApproval After Notice

Approval Date

May 26, 1999

Section:10 Physical PSTRIP 18 Other DATA

The 45 days outlined in the Notice dated April 7, 1999 have passed.

Assessment work credit has been approved as outlined on the attached Distribution of Assessment Work Credit sheet.

The assessment credit is being reduced by 37128.00. The TOTAL VALUE of assessment credit that will be allowed, based on the information provided in this submission, is 819,300. The approved amount represents stripping cost of 310,200.00, mobe and demobilization costs of 33000.00 and the drilling cost of 36100.00. Note that the costs were approved at Industry Standards meaning that the costs would be similar to another company doing similar work in the Kenora Mining Division.

Correspondence to:Resident Geologist Kenora, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):Brian D. SjaaheimCOLD SPRING GRANITE (CANADA) LTD.COLD SPRING, MINNESOTA,

MARK JOSEPH ROETTGER RICHMOND, MINNESOTA

Page: 1Correspondence ID: 13897

Distribution of Assessment Work Credit

The following credit distribution reflects the value of assessment work performed on the mining land(s).

Date: September 13, 1999

Submission Number: 2.19127

Transaction Number: W9910.00006

Claim Number Value Of Work Performed

1160896 19,300.00

Total: S 19,300.00

Page: l

Correspondence ID: 13897

DEADFISH LAKE AREA - 6-2612 HIGHWAY AND ROUTE No. OTHER ROADS TRAILSSURVEYED LINES

TOWNSHIPS, BASE LINES, ETC.LOTS, MINING CLAIMS, PARCELS, ETC.

UNSURVEYED UNES LOT LINES PARCEL BOUNDARY MINING CLAIMS ETC.

RAILWAY AND RIGHT OF WAY UTILITY LINES NON-PERENNIAL STREAM

FLOODING OR FLOODING RIGHTSSUBDIVISION OR COMPOSITE PLANRESERVATIONSORIGINAL SHORELINEMARSH OR MUSKEG Ci*MINES

TRAVERSE MONUMENT

TYPE OF DOCUMENTPATENT SURFACE 4 MINING RIGHTS

, SURFACE RIGHTS ONLY . MINING RIGHTS ONLY

LEASE, SURFACE ft MINING RIGHTS 11 , SURFACE RIGHTS ONLY

LYl BIS 11160896

?M60S9 ^•is.aaORDER-IN-OttU RESERVATIONCANCELLED SAND ft GLAND USE

M.M.O. - NMfMMG fHOMTl OWL*

S.N.O.* lUHfACi RIGHTS

S. MINING AMQ

APPLICATION

SEC.35 W-K-3E/9B NOV.3C/98 M&S 195150 c. 35 Order No. O-K-1/99 13/01/99 M+S (Re-opened) 195150

COMPILED •OUftCES,

M NOT THOSE

•TAKE •HOULOOON- THEWNWTWr' OF

DEVELOP-1149856 ETTEC

DATEHOWTH MINT

INPOMMATION OF THi

•CALE 1 INCH 40 CM4M

KILGOURM M.N

K C M OH A•OHM iivisto*RCHMU LAM mm/ KCHOMA

DANIELS LAKE 6-2610 6^2626

52K04SW2002 2.19127 KILGOUR LAKE 200

PROPOSED MAINTENANCE/EQUIPMENT SHED

,- - -,..- ;-.-.-i-* -:- .- f i ..

UT PIL

ZMM&gP

LEGEND

- GRAVEL RDAD , , , .

- QUARRY ACCESS RDAD

-QUARRY VDRK SITE SEQUENCE , . . , . .

- BLOCK STORAGE AREA . , . , , , , , . , .

-GROUT (WASTE) PILE AREA

- EXISTING GRAVEL PIT

- TOPOGRAPHY LINES

-CLAIM BOUNDARY LINES

-EXCAVATION SETBACK FROM RDAD . . , , .

— BIRCH . . , . . . . i . . . i i i i , , ) . . . i

-BLACK SPRUCE , , , , , , .

- JACK PINE . . , . , , . .

- MARSH, SWAMP (WOODED),

- CLAIM CORNER MARKERS

STRIPPED OVERBURDEN , , , , . , , . . . ,

ONTARIO HYDRO POWERLINE. , . , . , . . ,

5 YEARSCURRENTLY 8 HECTARES

O

NORTH

2,19 l 2 7

SCALE: l* ^ 200'

TOPOGRAPHIC LINES ARE IN METERS ABOVE MEAN SEA LEVEL, CONTOUR INTERVAL . . . 10 METERS

ELEVATIONS AND CONTOURS TAKEN FROM MAP 53K/4

BIG CANYON LAKE AREADISTRICT DF KENORA

DNTARID

ECLAIM ND, 1149700 PRDPDSED QUARRY SIT CDLD SPRING GRANITE CD202 SDUTH THIRD AVE,CDLD SPRING, MINNESOTA 56320

52K04SW2002 2.19127 KILGOUR LAKE 210

COZ.U

B.C

NO.

S. distance on clciln boundary Lines 6-18-96Pernlt upgrade nndlflcatlon 9/16/97REVISION A 1998 7/16/98

CHANGE DATE

JPFBDSBBS

BY

TITLE KENORA QUARRY SITE

QUARRY SITE PLAN MAPTOLERANCE UNLESS SPEC,

DECIMAL .X ^ ± .062' DECIMAL ,XX = ± .031' DECIMAL -XXX = ± .005' ANGULAR ± l'-0' FRACTIONAL ±1/16' MILLIMETER ± .I3nn

BY BDSClCD BDSDATE 7/16/98

DRAWING NO. P-Q02AAPPROVED BY BDS

SKETCH #2VARIEGATED FLUE MATERIAL THIS SIDE OF SLUE LINE

NEW STRIPPING 0.94 HECTARES

TEMP. GROUT PILE

EUEL TANK

YEAR BDUNDAR\

STRIPPING : HECTARES

o(N (N

r- tsHm

oo

ohi

PROPOSED MAINTENANCE/EQUIPMENT

r —i

CLAIM NQ. 1160905 2 UNITS CLAIM ND. 1160899 4 UNIT

KJLGOUR LAKE AREACISTKKl DF KEWJW

ONTARIO

LEGEND

V ACCESS ADAH . , . ^

f VDRK SITE SCDOENdi

' *fLt MKA

I PIT . , .

-CLW" lOJHIMfrv LINES

52K04SW2002 2.19127 KILGOUR LAKE 230

SKETCH #1

NEW STRIPPING 0,94 HECTARES

TEMP. GROUT PILE'

NEV STRIPPING 0,49 HECTARES