Agata ni43 101-dmc090122

43-101 TECHNICAL REPORT ON THE MINERAL RESOURCE ESTIMATE FOR THE AGATA NORTH NICKEL LATERITE

PROJECT OF MINDORO RESOURCES LTD.

AGATA PROJECT AGUSAN DEL NORTE

PROVINCE, PHILIPPINES

FOR

MINDORO RESOURCES LIMITED SUITE 104, 17707 – 105 AVENUE, EDMONTON, ALBERTA T5S 1T1

CANADA

22nd January, 2009

DALLAS M. COX, BE (MIN) 52 SOMERVILLE STREET BENDIGO VICTORIA, AUSTRALIA 3550

43-101 Technical Report on the Mineral Resource Estimate for Agata North Nickel Laterite Project

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TABLE OF CONTENTS 3.0 SUMMARY ................................................................................................................................................ 6 4.0 INTRODUCTION ....................................................................................................................................... 7 5.0 RELIANCE ON OTHER EXPERTS .......................................................................................................... 8 6.0 PROPERTY DESCRIPTION AND LOCATION ....................................................................................... 9

6.1 Location ................................................................................................................................................ 9 6.2 Property Description: .......................................................................................................................... 10

6.2.1 Tenement Type: ..................................................................................................................... 13 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE and PHYSIOGRAPHY ........................................................................................................................................... 14

7.1 Accessibility: ....................................................................................................................................... 14 7.2 Climate: ............................................................................................................................................... 16 7.3 Local Resources and Infrastructure: .................................................................................................... 16 7.4 Physiography:...................................................................................................................................... 16

8.0 HISTORY .................................................................................................................................................. 17 9.0 GEOLOGICAL SETTING ........................................................................................................................ 18

9.1 Regional Geology ............................................................................................................................... 18 9.2 Local Geology of Agata Project Area ................................................................................................. 19

9.2.1 Greenschist (Cretaceous) ....................................................................................................... 19 9.2.2 Ultramafics (Cretaceous) ....................................................................................................... 19 9.2.3 Limestone (Upper Eocene) .................................................................................................... 21 9.2.4 Andesite and Tuff................................................................................................................... 21 9.2.5 Intrusives (Upper Oligocene to Lower Miocene) .................................................................. 21 9.2.6 Limestone (Lower Miocene) .................................................................................................. 21 9.2.7 Recent Alluvium .................................................................................................................... 21

9.3 Geology of the ANLP Area................................................................................................................. 22 10.0 DEPOSIT TYPES ............................................................................................................................... 22 11.0 MINERALIZATION .......................................................................................................................... 26

11.1 Agata Nickel Laterite Project .............................................................................................................. 26 12.0 EXPLORATION ................................................................................................................................. 29

12.1 MRL Exploration (1997-2000) ........................................................................................................... 31 12.2 MRL Exploration (2004-2006, and 2008) .......................................................................................... 32

13.0 DRILLING .......................................................................................................................................... 41 13.1 Exploration Targets: ............................................................................................................................ 41 13.2 Drilling Phases: ................................................................................................................................... 41 13.3 Drilling Contractors: ........................................................................................................................... 42 13.4 Drilling Rates: ..................................................................................................................................... 42 13.5 Drillhole Collars Survey ..................................................................................................................... 44 13.6 Drilling Results ................................................................................................................................... 44

14.0 SAMPLING METHOD AND APPROACH ...................................................................................... 46


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15.0 SAMPLE PREPARATION, SECURITY AND ANALYSES ........................................................... 47 15.1 MRL Protocols .................................................................................................................................... 47

15.1.1 MRL Core Sampling .............................................................................................................. 47 15.1.2 Rechecking of Laboratory Results ......................................................................................... 49

15.2 Laboratory Protocols ........................................................................................................................... 51 15.2.1 McPhar Geoservices (Phil.), Inc. ........................................................................................... 51 15.2.2 Intertek Testing Services Phils., Inc. ...................................................................................... 53

15.3 Results of Internal Check Assays (McPhar and Intertek) ................................................................... 54 15.4 Results of External Check Assays (MRL) .......................................................................................... 56

15.4.1 Nickel Standards .................................................................................................................... 56 15.4.2 Field Duplicates ..................................................................................................................... 58 15.4.3 Coarse Rejects ........................................................................................................................ 60 15.4.4 Pulp Rejects Analyzed by Primary Laboratory ...................................................................... 62 15.4.5 Pulp Rejects Analyzed by Umpire Laboratory ...................................................................... 64

16.0 DATA VERIFICATION ..................................................................................................................... 66 17.0 ADJACENT PROPERTIES ............................................................................................................... 67

17.1 Tapian-San Francisco Property: .......................................................................................................... 68 17.1.1 Gold Hill [C5] ........................................................................................................................ 68 17.1.2 Cantikoy (C6) ......................................................................................................................... 68 17.1.3 Canaga (C9) ........................................................................................................................... 68 17.1.4 Waterfalls (C1) ....................................................................................................................... 69

17.2 Tapian Main Property ......................................................................................................................... 69 17.3 Tapian Extension ................................................................................................................................. 70

17.3.1 Bolobolo ................................................................................................................................. 70 17.4 Other Nickel Laterite Prospects: ......................................................................................................... 70

18.0 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................... 71 19.0 MINERAL RESOURCE ESTIMATE ................................................................................................ 71

19.1 Data Set: .............................................................................................................................................. 71 19.2 Raw Assay Statistics: .......................................................................................................................... 72 19.3 Compositing: ....................................................................................................................................... 73 19.4 Surfaces and Domains: ........................................................................................................................ 78 19.5 Data Manipulation: ............................................................................................................................. 80 19.6 Specific Gravity, Bulk Density and Moisture Content: ...................................................................... 80 19.7 Block Modelling and Grade Estimation: ............................................................................................. 81

20.0 OTHER RELEVANT DATA AND INFORMATION ....................................................................... 84 21.0 INTERPRETATION AND CONCLUSIONS .................................................................................... 84 22.0 RECOMMENDATIONS .................................................................................................................... 84 23.0 REFERENCES.................................................................................................................................... 86 24.0 DATE AND SIGNATURES............................................................................................................... 89 25.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES & PRODUCTION PROPERTIES ........................................................................................... 91 26.0 ILLUSTRATIONS .............................................................................................................................. 91


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LIST OF FIGURES

Figure 1: Philippine Map showing location of MRL projects ............................................................... 9 Figure 2: MRL Tenements and Projects in the Surigao Mineral District ............................................ 15 Figure 3: Geologic Map of Surigao Mineral District........................................................................... 20 Figure 4: Agata Geologic Map ............................................................................................................ 23 Figure 5: Agata Compilation ............................................................................................................... 25 Figure 6: Idealized Model of spatial relationship between nickel laterite and porphyry targets. ........ 25 Figure 7: Compilation Map Showing areas of Mapped Nickel Laterite Mineralization ..................... 27 Figure.8: Agata Projects Map showing areas of Nickel Laterite Mineralization. ................................ 29 Figure 9: Cross section Line 10100N Linegraph. ................................................................................ 30 Figure 10: Agata Soil (Gold) Map ..................................................................................................... 34 Figure 11: Agata Soil (Copper) Map ................................................................................................. 35 Figure 12: Agata Soil (Zinc) Map...................................................................................................... 36 Figure 13: Agata Rock Geochemistry Map ....................................................................................... 37 Figure 14: Agata Ground Magnetic Survey Map .............................................................................. 38 Figure 15: Agata Chargeability @ L=7 ............................................................................................. 39 Figure 16: Agata Resistivity @ L=7 .................................................................................................. 40 Figure 17: ANLP Drillhole Location Map ........................................................................................ 43 Figure 18: Cross Section Line 10100N showing grades and thickness of laterite horizon ............... 45 Figure 19: Flowchart of Mcphar’s Sample Preparation for Laterite .................................................. 52 Figure 20: McPhar’s Laterite Analysis Procedure Flowsheet ........................................................... 52 Figure 21: Intertek’s Sample Preparation Procedure for Laterite ...................................................... 53 Figure 22: Graphs of Laboratory Internal Recheck Assays ............................................................... 54 Figure 23: Graphs of Laboratory Internal Split Sample Analysis ..................................................... 55 Figure 24: Graphs of Nickel Standards.............................................................................................. 57 Figure 25: Graphs of Field Duplicate Assays .................................................................................... 59 Figure 26: Graphs of Coarse Duplicate Assays ................................................................................. 61 Figure 27: Graphs of Pulp Rejects analyzed by Primary Laboratory ................................................ 63 Figure 28: Graphs of Pulp Rejects Analyzed by Umpire Laboratory ................................................ 65 Figure 29: Comparison of Independent Checks and MRL Assays .................................................... 67 Figure 30: Tapian-San Francisco Compilation .................................................................................. 69 Figure 31: Tapian Main Compilation Map ........................................................................................ 71 Figure 32: Domain Surfaces and Composite Coding ........................................................................ 79 Figure 33: Agata North Test Pit Location Map ................................................................................. 81 Figure 34: Block Model Configuration ............................................................................................. 81 Figure 35: Block Model Cross Section (N1027590) ......................................................................... 82 Figure 36: Block Model Classification .............................................................................................. 83

LIST OF TABLES Table 1: Agata Projects Tenements held by Mindoro: ....................................................................... 10 Table 2: Original Mining Application Claims under MPSA 134-99-XIII ......................................... 11 Table 3: Climatological Normals and Extremes 1961-2000 .............................................................. 16 Table 4: Average Grades of Nickel Laterite Horizons ....................................................................... 29 Table 5: Drilling Rates ....................................................................................................................... 42 Table 6: NAMRIA Tie Points Technical Description ........................................................................ 44 Table 7: Average Grades of Laterite Horizons at Line 10100N ......................................................... 44 Table 8: List of Sampling Intervals .................................................................................................... 46 Table 9: Core Recovery Percentages .................................................................................................. 47 Table 10: Numbers of Core, Reference and Recheck Samples Analyzed ............................................ 50 Table 11: Frequency of Check Sampling per Laterite Zone ................................................................ 51 Table 12: Frequency of Using Nickel Reference Materials ................................................................. 51


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Table 13: Relationship of Original and Repeat Analyses..................................................................... 54 Table 14: Relationship of Field Duplicate and Original Assays .......................................................... 59 Table 15: Relationship of Coarse Rejects and Original Assays ........................................................... 61 Table 16: Results of Independent Check on Drill Core Assays ........................................................... 66 Table 17: Data Set ................................................................................................................................ 72 Table 18: Drillhole Summary ............................................................................................................... 72 Table 19: Raw Assay Statistics ............................................................................................................ 73 Table 20: Compositing Data ................................................................................................................. 74 Table 21: Frequency Distribution Plots Ni% ....................................................................................... 75 Table 22: Cumulative Probability Plots Ni% ....................................................................................... 76 Table 23: Limonite Composite Statistics ............................................................................................. 77 Table 24: Saprolite Composite Statistics .............................................................................................. 78 Table 25: Domain Coding .................................................................................................................... 79 Table 26: Specific Gravity Parameters ................................................................................................. 80 Table 27: Mineral Resource Classification .......................................................................................... 83 Table 28: Mineral Resource Estimation by Classification ................................................................... 84 Table 29: Summary of Resource: Combined Limonite and Saprolite .................................................. 85

LIST OF APPENDICES

Appendix 1: Notice of Relinquishment of portion of MPSA 134-99-XIII Appendix 2: Certified Technical Descriptions of NAMRIA Stations Appendix 3: Cross Sections Showing Grades and Thickness of Laterite Horizons Appendix 4: ANLP QAQC Procedures Note: The cover photo is a snapshot of the GoogleEarth image of the Agata Projects area.


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3.0 SUMMARY This report was prepared at the request of Mindoro Resources Ltd. [Mindoro]. This is the third mineral resource estimate completed for the Agata North Laterite Project (ANLP). ANLP is located about 47 km north-northwest of Butuan City and 73 km southwest of Surigao City. It lies within the municipalities of Tubay, Santiago; and Jabonga, all in the province of Agusan del Norte, Philippines. This report discloses the updated results of the mineral resource estimation which were based on several phases of drilling which were completed in late 2008. It also describes the exploration activities carried out by MRL Gold Phils. Inc. (MRL) on its Agata Project. MRL is a wholly-owned subsidiary of Mindoro. The ANLP is one of the projects located within the overall Agata Project, which is covered by the Mineral Production Sharing Agreement (MPSA) Contract Area held by Minimax Mineral Exploration Corp. (Minimax) denominated as MPSA-134-99-XIII and approved by the Department of Environment and Natural Resources (DENR) on May 26, 1999. The project was explored under a Memorandum of Agreement (MOA) between Mindoro and Minimax Mineral Exploration Corporation (Minimax). Mindoro subsequently executed a Deed of Assignment whereby it assigned all its rights under the MOA to MRL. By virtue of this, MRL has earned a 75% interest in all the Surigao projects (except the Mat-I Project) including the Agata Project. Minimax has also granted MRL an option to acquire an additional 25% direct and indirect participating interest in any project within the Agata Project which is brought to the feasibility stage. The Agata Project is situated along the southern part of the uplifted and fault-bounded Western Range on the northern end of the east Mindanao Ridge. Greenschists; ultramafics; limestones; andesite and tuff; younger limestones; intrusives; and alluvium underlie the area. The widespread occurrence of ultramafics and serpentinized ultramafics are a favorable environment for the development of nickel laterites along the broad ridges characterized by peneplaned topography. The laterite profile in the ANLP consists of the ferruginous laterite, limonite and saprolite zones or horizons, and the saprolitic rock, from surface to increasing depth. The limonite zone is characteristically iron oxide-rich, where the predominant minerals are hematite, goethite and clays, and with moderate nickel content (over 1%), while the saprolite zone has much less iron-oxide, is magnesium-rich, and has a slightly higher nickel content than the limonite horizon. This report is based on the data that were produced and compiled by MRL. Data verification performed by the author found no discrepancies. Hence the database is considered adequate to meet industry standards to estimate mineral resources. The assay data were collected from drilling activities in the area from February 2007 to September 2008, including the BHP Billiton drilling results from a program in 2006. A total of 408 drill holes, comprising 7300.83 meters of diamond drill core and 7271 assay samples, were used for the estimate. The MineSight ® IDW Interpolation procedure was used to interpolate nickel, cobalt, iron and phosphorous grades. Inverse Distance Weighting (IDW) Power 2 was used for grade estimation. This method is considered acceptable given the tight constraints applied to limonite and saprolite domaining. Grades were interpolated in limonite and saprolite domains only. Raw Assay data were analyzed above a cut-off grade of 0.5 Ni% for the limonite, and 0.8 Ni% for the saprolite. Generally, nickel grades in the limonite horizon, increase and peak at a point about the base of the limonite. Nickel grades remain respectively high and thereafter diminish as the mineralization grades into basement/bedrock. Unfolding to this surface ensures that nickel grades in both limonite and


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saprolite are preferentially honored in the mid-section of the laterite profile, which represents a greater proportion (50+%) of the body. Resource classification methodology for limonite was based on the spacing as denoted in Table 27. Planar and elevation search ellipses for saprolite were reduced by 1/2 to 1/3 of the limonite search ellipse parameters given the undulating saprolite/bedrock contact and laterally more erratic nature of metal grades in the saprolite domain. The estimate for combined Measured and Indicated Resources is 13.17 million wet metric tonnes (WMT), or 9.26 million dry metric tonnes (DMT), grading 1.13 percent nickel, 0.078 percent cobalt and 30.93 percent iron. In addition, the Inferred Resource estimate is 18.1 million WMT, or 12.7 million DMT, grading 1.13 percent nickel, 0.083 percent cobalt and 31.44 percent iron.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The tonnage and grades above have been rounded to the nearest 2nd or 3rd decimal, which may have resulted in minor discrepancies.

The author recommends further metallurgical testwork to confirm the optimal leaching technology for processing the nickel laterite resource. Further variographic study is recommended for possible upside potential to increase indicated and inferred resource category tonnages. A preliminary scoping study is recommended for ANLP, including continuous pilot leach testing to prove the concept and to derive the optimal processing flowsheet, and sufficient engineering to obtain operating and capital costs to plus or minus 35%. 4.0 INTRODUCTION

This technical report was prepared at the request of Mr. J.A. Climie, CEO of Mindoro of Canada [TSX-Venture Exchange] and CEO and President of MRL, a wholly-owned subsidiary of Mindoro. This is the third mineral resource estimate for the ANLP located within the Agata Projects MPSA in Agusan del Norte, Philippines (Figures 1 & 2). The first two 43-101 reports were filed on June 10, 2008 and September 19, 2008, both written by this author, a qualified person as defined by National Instrument 43-101. It is the author’s understanding that the drilling program was conducted to define the total global resource potential, which will provide the basis to pursue a study on the optimal technology for enhanced value, local processing of its nickel laterite resource, and, later, for a scoping study. The project was explored under a Memorandum of Agreement between Mindoro and Minimax signed on January 19, 1997. On June 27, 1997, Mindoro executed a Deed of Assignment whereby it assigned all its rights under the MOA to MRL. By virtue of this, MRL has earned a 75% interest in all the Surigao projects (except the Mat-I Project) including the Agata Project. Minimax has also granted MRL an option to acquire additional 25% direct and indirect participating interest in such projects as the Agata Projects. The Agata Projects comprise various projects and prospects, namely, the ANLP; the Agata South Laterite Project [ASLP]; the North Porphyry Prospect; the South Porphyry Prospect; the Assmicor Porphyry and Gold Prospects; the American Tunnels Porphyry and Gold Prospects; the Limestone Gold Prospect; and a host of other gold and copper-gold prospects, which have not been evaluated in detail.


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The report describes the geology and mineralization of the project area and discusses the results of the resource delineation drilling program on the ANLP. It also assesses historical data and discusses the results of the exploration programs carried out to date by MRL over the general Agata Project itself. All of the drilling and assay results generated by MRL from February 2007 to September 2008, including the BHP Billiton drilling results in 2006 are the basis for this final resource estimate. This report is based on information known to the author as of November 2008. This document is compiled from technical reports written by MRL, from reports held by the Mines and Geosciences Bureau of the Philippines (MGB), from published technical data, and from observations made by the MRL geologists and the author. All sources of data used in this report are cited herein and are listed in Item 23. All work of MRL at the Agata Projects was carried out under the direct and close supervision of James A. Climie, P. Geol., also a qualified person, who carried out frequent and extensive site visits. The author visited the project site in July 2007, January 2008 and November 2008. During these visits, MRL geologists and/or mining engineers were present to assist and discuss protocols, observations, results and interpretations with the author/consultant. Likewise, various meetings were held off-site to broaden the discussions and consultations. The ANLP is located about 47 km north-northwest of Butuan City or 73 km southwest of Surigao City (Figure 2). It is within the villages of Lawigan and Tinigbasan, municipality of Tubay, E. Morgado and La Paz, municipality of Santiago; and Colorado municipality of Jabonga, all in the province of Agusan del Norte. This report is prepared in compliance to the Canadian National Instrument 43-101. The NI 43-101, NI 43-101F1 and Companion Policy 43-101CP, the Standards of Disclosure for Mineral Projects. 5.0 RELIANCE ON OTHER EXPERTS

The technical data were provided by Mindoro and a random portion was verified by the author for logical errors and data entry errors. Other data verification procedures were performed and are discussed in Item 16. The author believes that the datasets are satisfactory, based on his knowledge of the area and the random checks he performed. From the assay with lithology, collar survey, and topographic survey datasets, the author generated a composited dataset with laterite horizon classification based on mineral/chemical contents. This was then used in creating the sections and surfaces. The status of MPSA-134-99-XIII (Agata) and EP-XII-021 (Agata-Bautista) were checked by the author on the Mines and Geosciences Bureau (MGB) website and was found to be among the approved contracts (www.mgb.gov.ph/tenements). In addition, a visit to the MGB Central Office-Mining Tenements Management Division was carried out for further checking. The author conferred with the Chief of Systems Audit and Development Section, Mr. Larry M. Heradez and FTAA Evaluation Section, Mr. Levy G. Teodoro regarding the MPSA and the EP, respectively. Both attested to the validity and good standing of the tenements as supported by the original documents of the Contracts. The MRL tenements are discussed in Item 6 of this report. As regards the specifics pertaining to Memorandum of Agreements, ownership, and/or royalty agreements between Mindoro, Minimax, Estrella Bautista, the author used the data supplied by Mindoro with supporting legal documents such as the Notice of Relinquishment of portion of MPSA 134-99-XIII


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(Appendix 1), and referred to previous company reports of MRL. These are likewise discussed in Item 6 of this report.

Figure 1: Philippine Map showing location of MRL projects.

6.0 PROPERTY DESCRIPTION AND LOCATION 6.1 Location:

The Agata Projects are located within the northern part of Agusan del Norte province in Northeastern Mindanao, Republic of the Philippines. It lies within the Western Range approximately 10 kilometers south of Lake Mainit (Figures 1-2). The Agata Project falls within the political jurisdiction of the municipalities of Tubay, Santiago and Jabonga. The MPSA Contract Area, encompassing the Agata Projects, is bounded by geographical coordinates 9010’30” and 9019’30” north latitudes and 125029’30” to 125033’30” east longitudes. The ANLP is located in barangays Lawigan and Tinigbasan, municipality of Tubay, barangays E. Morgado (formerly Agata) and La Paz, municipality of Santiago, and barangay Colorado, municipality of Jabonga, all in the province of Agusan del Norte. It lies about 73 km southwest of Surigao City and 47 km north-northwest of Butuan City. The majority of MRL’s exploration activities on the project area are located in barangays Lawigan and E. Morgado. The ASLP is located in barangays Binuangan, Tagpangahoy, and Tinigbasan, municipality of Tubay. It is under a joint venture agreement with Delta Earthmoving, Inc. (Delta).


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The locations of the known mineralized zones on the Agata MPSA relative to the property boundaries are illustrated in Figure 5 and 7. The ANLP mineralized zone, as defined by drilling and mapping to date, lies entirely within the Agata MPSA. Other known nickel laterite zones exist near the southern boundary of the property. Artisanal copper and gold mining is active in the Agata MPSA area and are shown in Figure 5. These are outside the delineated nickel laterite mineralized zones. There are no existing mineral reserves within or near the property boundaries. The nearest mine infrastructures, including settling ponds, are those of the SRMI Mine located in between the parcels of the Agata MPSA at the southern boundaries (Figure 5). The National Highway runs parallel to the length of the Agata MPSA, just outside the eastern boundary. In addition, a farm-to-market road transects the northern portion of the MPSA area, near the Tubay River. 6.2 Property Description:

The ANLP area is part of the Agata Projects and is covered by the approved MPSA of Minimax denominated as MPSA 134-99-XIII, which is comprised of 66 blocks covering an area of 4,995 hectares (ha) (Figure 2). To the southeast of the ANLP area, and surrounded by the Minimax MPSA, is the Estrella Bautista Exploration Permit (EP) Area denominated as EP 00021-XIII, covering 84.39 ha. This lone claim block is also part of MRL’s Agata Projects and was acquired through an Agreement to Explore, Develop and Operate Mineral Property. The MPSA Contract and the EP areas are located within the Western Range in the northern part of Agusan del Norte province. The MPSA was approved on May 26, 1999 by the DENR and was registered on June 17, 1999 with the MGB Regional Office No. XIII in Surigao City. A MOA was signed by Mindoro and Minimax on January 19, 1997. Mindoro assigned all its rights in the MOA to MRL on June 27, 1997. The MOA granted MRL the exclusive and irrevocable right to earn the Option Interests in the project. At present, MRL has earned a 75% interests in the Agata Tapian Main, and Tapian San Francisco and the Extension Projects (tenements acquired after the finalization of the MOA) in the Surigao Mineral District. It also has a further option to acquire an additional 25% direct and indirect participating interest. The 2nd exploration period for the MPSA was renewed on July 23, 2004 to July 22, 2006 while the 3rd exploration period was granted on February 7, 2007 to February 6, 2009. The Agata-Bautista-EP was approved on October 2, 2006. Both tenements are in good standing. Since the first Exploration Period in 1999, submission of all quarterly and annual accomplishment reports, and quarterly drilling reports; and the payment of the mandated occupation fees were accomplished by MRL, on behalf of Minimax. The same was done for the Agata-Bautista EP.

Table 1: Agata Projects Tenements held by Mindoro: TENEMENT ID AGATA AGATA-BAUTISTA PERMIT NUMBER MPSA-134-99-XIII EP-21-XIII APPLICATION NUMBER APSA-XIII-007 EPA-00080-XIII DATE FILED (MGB XIII) 4-Jul-97 DATE APPROVED 26-May-99 2-Oct-06 PERMITTEE/ APPLICANT MINIMAX BAUTISTA

LOCATION Jabonga, Santiago, & Tubay, Agusan del Norte Santiago, Agusan del Norte

AREA (ha**) 4,995.00 84.39

STATUS - 3rd Exploration Period approved 7-Feb-07 1st renewal of EP filed on 29-Sep-08 -ECC granted

MPSA - Mineral Production Sharing Agreement EP - Exploration Permit APSA - Application for Mineral Production Sharing Agreement EPA - Exploration Permit Application


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The boundaries of these tenements were located by the claimowners on a topographic map and submitted to the MGB-DENR for approval. A tenement boundary survey approved by the MGB will be required through an “Order to Survey” once a mining project feasibility study has been submitted by the proponent. The coordinates used by Mindoro are those indicated in the MPSA document issued by the MGB-DENR. The surveyed drillhole collars are tied to a local grid, which in turn is tied to National Mapping and Resource Information Authority (NAMRIA) satellite/GPS points and benchmarks. The original area of the MPSA was 7,679 ha comprising 99 blocks, but 32 claim blocks with an approximate area of 2,700 ha were later relinquished. This leaves 4,995 ha of the approved Contract area as of May 18, 2000. (Appendix 1) The details of the original 99 claim blocks are listed below:

Table 2: Original Mining Application Claims under MPSA 134-99-XIII Name of Mining Application Claims Name of Locator

Lingling 1-2 Leonor Cocon, Jr. Titus 1-3 Ruperth Villamucho Titus 10-11 Leo Deiparine Titus 14, 16 Edsel Abrasaldo Guiah and Sheryl Marenda Cabiling Noah 52 Galactica Mineral Exploration Corp. Japeth 10, 12, 15, 19 Galactica Mineral Exploration Corp. Japth 1, 3, and Jabez; Noah 53, 55, 57, 58 Galactica Mineral Exploration Corp. Noah 54 Lakeshore Mineral Exploration Corp. Titus 20, 26, 27 Resource Mineral Exploration Corp. Titus 82 Solar Mineral Exploration Corp. Banner 1-9; 12-13; 16-19; 22-29; 31; 33; 38; 40-41; 43; 44-B; 46; 47; 49; 51; 53; 55; 57; 59 Affluent Mineral Exploration Corp.

Additional Minimax blocks Minimax Mineral Exploration Corp. On April 12, 1986, Leonor Cocon, Jr. executed a Special Power of Attorney in favor of Jessie Juansengfue involving his two (2) mining claims in Agata. This legal instrument was registered with the MGB-Regional Office No. XIII on March 10, 1987. On July 31, 1987, Jessie Juansengfue signed the two (2) mining claims with Minimax through a Royalty Agreement with Option to Purchase. This was registered with the MGB-Regional Office No. XIII on August 5, 1987. On April 17, 1997, this agreement was amended via an Amendment to Royalty Agreement, which was registered with the MGB-Regional Office No. XIII on June 4, 1997. The Royalty Agreement was further amended through an Amendment to Royalty Agreement on November 23, 2005, which was subsequently registered with the MGB-XIII. The royalties equivalent to 2% of its annual operation based on “Gross Value, FOB, Philippine Ports” shall be paid to Juansengfue upon commencement of commercial production of gold and other precious metals and minerals. On May 15, 1987, Marenda Cabiling executed and registered with the MGB-Regional Office a Special Power of Attorney in favor of Rod Manigos regarding her two (2) mining claims in Agata. Rod Manigos in turn, signed the subject mining claims with Minimax via a Royalty Agreement with Option to Purchase on August 4, 1987. The Agreement was registered with the MGB-Regional Office No. XIII [MGB-XIII] on August 5, 1987. The Royalty Agreement was amended via an Amendment to Royalty Agreement on April 17, 1997 and registered with the MGB-XIII on June 4, 1997. It was further amended on May 18, 2006 and subsequently registered with MGB-XIII. The royalties equivalent to 2% of its annual operation based on “Gross Value, FOB, Philippine Ports” shall be paid to Cabiling upon commencement of commercial production of gold and other precious metals and minerals.


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On December 4, 1987, Ruperth Villamucho, Leo Deiparine, and Edsel Abrasaldo executed a Special Power of Attorney regarding their mining claims in favor of Jose de Guzman. This was registered with the MGB-XIII on December 7, 1987. On February 7, 1997, Ruperth Villamucho, Leo Deiparine, and Edsel Abrasaldo, through their Attorney-in-Fact, executed a Deed of Assignment for their mining claims in favor of Minimax. This was registered with the MGB-XIII on February 28, 1997. On February 7, 1997, Resource Mineral Exploration Corporation executed a Deed of Assignment over its mining claims in favor of Minimax. On February 12, 1997, Galactica Mineral Exploration Corporation deeded the mining claims Japeth 10, 12, 15 and 19 via a Deed of Assigment in favor of Minimax. Likewise, on February 14, 1997, Solar Mineral Exploration Corporation made a Deed of Assignment regarding its mining claims in favor of Minimax. These Deeds were registered with the MGB-XIII on February 28, 1997. On August 18, 1997, Lakeshore Mineral Exploration Corporation, Affluent Mineral Exploration Corporation and Galactica Mineral Exploration Corporation (for the mining claims “Japeth 1,3”, “Jabez”, “Noah 52, 55, 57, and 58”) deeded their mining claims to Minimax. The Deed of Assignment was registered with MGB-XIII on October 3, 1997. During the processing of the Minimax MPSA Application, Minimax was able to expand the areas it originally applied for. The additional tenement blocks automatically became part of the MRL-Minimax MOA. On May 26, 1999, the Secretary of the DENR signed the Minimax MPSA application covering 7,679 ha comprising 99 claim blocks. The approved MPSA was registered on June 17, 1999. On May 18, 2000, 32 claim blocks with an area of approximately 2,700 ha were relinquished by Minimax, leaving 4,995 ha of the approved Contract Area (Appendix 1). On September 29, 2000, immediately after the Boyongan Porphyry Copper discovery, Minimax’s affiliate, Apical Mining Corporation filed an MPSA application covering 7,764 ha of ground adjacent to (north, southeast, and south of) Agata Projects. This property is known as the Agata Extension (Figure 2). The application was later converted to EPA and is in the advanced stage of processing by MGB-XIII. On October 26, 2004, MRL Gold was able to acquire, via an Agreement to Explore, Develop and Operate Mineral Property, one claim block of approximately 84.39 ha within the Agata Projects known as the Bautista Claim. The Agreement was signed between Estrella Bautista, claimowner, and MRL and was registered with MGB-XIII on November 4, 2004. Royalties equivalent to 1.5% of Net Smelter Returns shall be paid to the claimowner for the commercial exploitation of the property. The MPSA application of Bautista was converted into an EP application; the EP was approved on October 2, 2006 and is known as EP-00021-XIII. With the issuance of an MPSA covering the Agata Projects, the landuse classification of the area is therefore for mineral production. Those outside the Contract area are essentially classified as timberland. There are no dwellers within the ANLP and ASLP drilling areas. The author is not aware of any environmental liabilities to which the property is subject other than those that fall under the Philippine Mining Act of 1995. On May 20, 2008, an Environmental Compliance Certificate (ECC) was issued by the DENR to MRL for nickel laterite mineral production covering 600 ha within the Agata MPSA Contract area, including both the Agata North and Agata South projects.


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The barangay (village) centers where the projects are located, are mostly populated by Christians. There are some indigenous peoples (IP) that live in the surrounding areas within and outside the Minimax MPSA Contract area. Sitio Coro, Bgy. Colorado is almost entirely populated by IPs while other IP groups have merged with the non-IP inhabitants in barangays E. Morgado and La Paz, municipality of Santiago, and Bgy. Tagmamarkay, Tubay. MRL, through the assistance of the National Commission on Indigenous Peoples (NCIP) - Regional Office No. XIII, has recently signed a Memorandum of Agreement with the IPs living within the MPSA Contract Area albeit the latter have no Certificate of Ancestral Domains Claim (CADC) nor Certificate of Ancestral Domains Title (CADT) within the Contract area. The MOA calls for a 1% royalty on gross sales of mineral products to be given to the IPs as provided for in the Indigenous Peoples Reform Act (IPRA) of the Republic of the Philippines. Areas of nickel laterite mineralization have been mapped at a regional scale in the ASLP located in the southern part of the Agata Projects and is the subject of a Mining Services Agreement between MRL, Minimax and Delta. No drilling or sampling has been carried out in this area prior to the negotiations with Delta. The southernmost area of the ASLP is 1 to 2 km north of the operating nickel laterite mine of SR Metals Inc., just to the south of the Agata Projects. Delta, at its sole cost and risk, may carry out exploration of the ASLP and may select an area of up to 250 ha to advance to production if warranted. 6.2.1 Tenement Type: An MPSA is a form of Mineral Agreement, for which the government grants the contractor the exclusive right to conduct mining operations within, but not title over, the contract area during a defined period. Under this agreement, the Government shares in the production of the Contractor, whether in kind or in value, as owner of the minerals. The total government share in a mineral production sharing agreement shall be the excise tax on mineral products. The excise tax is 2% of the actual market value of the gross output at the time of extraction. In return, the Contractor shall provide the necessary financing, technology, management and personnel for the mining project. Allowable mining operations include exploration, development and utilization of mineral resources. The approved MPSA has a term not exceeding 25 years from the date of the execution thereof and renewable for another term not exceeding 25 years. It gives the right to the Contractor to explore the MPSA area for a period of 2 years renewable for like periods but not to exceed a total term of 8 years, subject to annual review by the Director to evaluate compliance with the terms and conditions of the MPSA. The Contractor is required to strictly comply with the approved Exploration and Environmental Work Programs together with their corresponding budgets. These work programs are prepared by the Contractor as requirements in securing the renewal of the Exploration Period within the MPSA term. The Contractor is likewise required to submit quarterly and annual accomplishment reports under oath on all activities conducted in the Contract Area. All the reports submitted to the Bureau shall be subject to confidentiality clause of the MPSA. The Contractor is further required to pay at the same date every year reckoned from the date of the first payment, to the concerned Municipality an occupation fee over the Contract Area amounting to PhP 75.00 per hectare. If the fee is not paid on the date specified, the Contractor shall pay a surcharge of 25% of the amount due in addition to the occupation fees. If the results of exploration reveal the presence of mineral deposits economically and technically feasible for mining operations, the Contractor, during the exploration period, shall submit to the Regional Director, copy furnished the Director, a Declaration of Mining Project Feasibility together with a Mining Project Feasibility Study, a Three Year Development and Construction or Commercial Operation Work Program, a complete geologic report of the area and an Environmental Compliance


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Certificate (ECC). Failure of the Contractor to submit a Declaration of Mining Project Feasibility during the Exploration Period shall be considered a substantial breach of the MPSA. Once the ECC is secured, the Contractor shall complete the development of the mine including construction of production facilities within 36 months from the submission of the Declaration of Mining Project Feasibility, subject to such extension based on justifiable reasons as the Secretary may approve, upon the recommendation of the Regional Director, through the MGB Director. Any portion of the contract area, which shall not be utilized for mining operations, shall be relinquished to the Government. The Contractor shall also show proof of its financial and technical competence in mining operations and environmental management. On February 2005, the Philippine Supreme Court decided with finality allowing for the 100% foreign ownership of the mineral tenement under the Financial and Technical Assistance Agreement (FTAA). An Exploration Permit (EP) is an initial mode of entry in mineral exploration allowing a Qualified Person to undertake exploration activities for mineral resources in certain areas open to mining in the country. Any corporation may be allowed a maximum area of 32,400 ha in the entire country. The term of an EP is for a period of two (2) years from date of its issuance, renewable for like periods but not to exceed a total term of four (4) years for nonmetallic mineral exploration or six (6) years for metallic mineral exploration. Renewal of the Permit is allowed if the Permittee has complied with all the terms and conditions of the Permit and he/she/it has not been found guilty of violation of any provision of “The Philippine Mining Act of 1995” and its implementing rules and regulations. Likewise, the conduct of a feasibility study and filing of the declaration of mining project feasibility are undertaken during the term of the Permit. 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE and PHYSIOGRAPHY 7.1 Accessibility: The ANLP site is accessible by any land vehicle from either Surigao City or Butuan City thru the Pan-Philippine Highway. At the highway junction at Barangay Bangonay, Jabonga, access is through partly cemented, gravel-paved Jabonga Municipal road for approximately 4 km, then for another 6 km thru a farm-to-market road to Barangay E. Morgado in the municipality of Santiago (Figure 2). From Manila, daily flights are available going to Butuan City. Moreover, commercial sea transport is available en-route to Surigao City and Nasipit (west of Butuan City) ports. An alternate route is available from the Pan-Philippine Highway via the Municipality of Santiago. From Santiago town proper, barangay E. Morgado can be accessed through a 1.5 km municipal-barangay road going to Bgy. La Paz, thence by pump boats. The travel time is about 15 minutes via the Tubay River. The northern portion of the ANLP can be reached from Bgy. E. Morgado by hiking for about 1 hour along existing foot trails (approximately 1.5 km).


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Figure 2: MRL Tenements and Projects in the Surigao Mineral District


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7.2 Climate: The climate of Jabonga, Santiago and Tubay municipalities where the project area is situated belongs to Type II on the PAGASA Modified Coronas Classification. It has no dry season with very pronounced rainfall months. Climatological Normals from 1981-2000 show that peak rainfall months are from October to February. The highest mean monthly rainfall is 308 mm during January and the lowest mean monthly rainfall is 104.8 mm during May while mean annual rainfall is 2027 mm.

Table 3: Climatological Normals and Extremes 1961-2000

MONTH RAINFALL TEMPERATURE RH

%

WIND CLOUD AMT (okta)

AMOUNT (mm)

# OF RD MAX MIN MEAN Dry

BulbWet Bulb

Dew Pt. DIR SPD

Jan 308.0 21 30.1 22 26.1 25.7 24.2 23.6 88 NW 1 6 Feb 211.8 15 30.8 22 26.4 26.0 24.2 23.5 86 NW 1 6 Mar 149.8 16 31.8 22.4 27.1 25.7 24.5 23.7 83 NW 1 5 Apr 107.2 12 33.1 23.1 28.1 27.7 25.2 24.3 82 ESE 1 5 May 104.8 14 33.8 23.8 28.8 28.3 25.8 25.0 82 ESE 1 6 Jun 135.1 16 33.0 23.6 28.3 27.8 25.5 24.7 83 ESE 1 6 Jul 157.5 16 32.5 23.3 27.9 27.5 25.3 24.5 84 NW 1 6 Aug 105.1 12 32.8 23.5 28.1 27.8 25.4 24.6 82 ESE 2 6 Sep 140.2 14 32.8 23.3 28.1 27.7 25.4 24.6 83 NW 2 6 Oct 195.3 17 32.3 23.2 27.8 27.4 25.3 24.6 84 NW 1 6 Nov 193.7 18 31.6 22.9 27.2 26.9 25.1 24.5 86 NW 1 6 Dec 218.4 19 30.8 22.5 26.7 26.3 24.7 24.1 88 NW 1 6 Annual 2026.9 190 32.1 23.0 27.6 27.1 25.1 24.3 84 NW 1 6

Based on Butuan City Synoptic Station 7.3 Local Resources and Infrastructure: A farm-to-market road was constructed by MRL in 2005 and is currently servicing three (3) barangays in two (2) towns. This road was turned-over to the local government. Road maintenance is being supported by the company. The drill site and the whole plateau is a fern-dominated (bracken heath) open grassland sparsely interspersed with forest tree seedlings and saplings of planted species. A few secondary growth trees line the streams along the lower slopes. The floodplain of Tubay River is planted with agricultural crops such as rice, corn, banana, etc. 7.4 Physiography: Most part of the Agata Projects spans the NNW-SSE-trending Western Range, which towers over the Mindanao Sea to the west and Tubay River to the east, which drains southward from Lake Mainit. The western part of the area is characterized by a rugged terrain with a maximum elevation of 528 meters above sea level (masl). This part is characterized by steep slopes and deeply-incised valleys. The eastern portion, on the other hand, is part of the floodplain of Tubay River, which is generally flat and low-lying, and has an elevation of less than 30 masl. Within the project area, steep to very steep slopes are incised by gullies and ravines while the central portion is characterized by broad ridges dissected in the west section by a matured valley formation exhibiting gentle to moderate slopes. Elevations range from 200 to 320 masl extending similar topographic expressions going to the south. In the northern expanse, it abruptly changes to rugged


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terrain having a very steep slope. Nickeliferrous laterite is widespread on the ridges stretching from the central part going to the south. Based on the initial evaluation of the area, the development of laterite mineralization is extensive, but not limited to the broad ridges and is present on gently-moderately sloping topography. The topography over the principal laterite development together with the position of the area of detailed drilling is shown in the photo below.

Photo 1: Panoramic view of ANLP showing the main area of laterite development. 8.0 HISTORY The earliest recognized work done within the area is mostly from government-related projects including:

• The Regional Geological Reconnaissance of Northern Agusan reported the presence of gold claims in the region (Teves et al. 1951). They mapped sedimentary rocks (limestone, shale and sandstone) of Eocene to mid-Tertiary age.

• Geologists from the former Bureau of Mines and Geosciences Regional Office No. X (BMG-X)

in Surigao documented the results of regional mapping in the Jagupit Quadrangle within coordinates 125°29´E to 125°45´ east longitude and 9°10´ to 9°20´ north latitudes. They described the geology of the Western Range as a belt of pre-Tertiary metasediments, metavolcanics, marbleized limestone, sporadic schist and phyllite and Neogene ultramafic complex. (Madrona, 1979) This work defined the principal volcano-sedimentary and structural framework of the region and recognized the allochtonous nature of two areas of ultramafic rocks that comprise serpentinized peridotite in the Western Range, one between the Asiga and Puya rivers in the Agata project area and the other west of Jagupit. These were mapped by Madrona (1979) as blocks thrust westward, or injected into the metavolcanics between fault slices.

• The United Nations Development Program (UNDP, 1982) conducted regional geological

mapping at 1:50,000 scale and collected stream sediment samples over Northern Agusan. The UNDP report of 1984 described the geological evolution of this region and included a detailed stratigraphic column for the Agusan del Norte region. Two anomalous stream sediment sites


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were defined near the Agata project during this phase of work. The Asiga porphyry system that lies east of the Agata tenements was explored by Sumitomo Metal Mining Company of Japan in the 1970’s and 1980’s (Abrasaldo 1999).

La Playa Mining Corporation, financed by a German company in the late 1970’s, explored within the Agata Project area for chromiferrous laterite developed over weathered ultramafic rocks. There were five (5) test pits dug in the area. In 1987, Minimax conducted reconnaissance and detailed mapping and sampling right after gaining control over the area. Geological mapping at 1:1,000 scale was undertaken in the high-grading localities, and an aerial photographic survey was conducted and interpreted. MRL established a mining agreement with Minimax in January 1997, and commenced exploration in the same year. Several artisanal miners are active within the project site since the 1980’s up to the present. These miners are conducting underground mining operations at the Assmicor and American Tunnels area and gold panning of soft, oxidized materials within Assmicor and Lao Prospect areas and of sediments in major streams including that of Tubay River. The region of small-scale mining activity was later named “Kauswagan de Oro” (translated: “progress because of gold”). The majority subsequently left the region for other high-grading areas in Mindanao. In more recent years, a group of copper “high-graders” emerged in the American Tunnels area mining direct-shipping grade copper ore. However, this new trend waned due to the softening of metal prices in the latter part of 2008. 9.0 GEOLOGICAL SETTING 9.1 Regional Geology The principal tectonic element of the Philippine archipelago is the elongate Philippine Mobile Belt (PMB – Rangin, 1991) which is bounded to the east and west by two major subduction zone systems, and is bisected along its north-south axis by the Philippine Fault (Figure 3). The Philippine Fault is a 2000 km long sinistral strike-slip wrench fault. In the Surigao district, this fault has played an important role in the development of the Late Neogene physiography, structure, magmatism and porphyry Cu-Au plus epithermal Au metallogenesis. There has been rapid and large-scale uplift of the cordillera in the Quaternary, and limestone of Pliocene age is widely exposed at 1000-2000 meters elevation (Mitchell and Leach 1991). A cluster of deposits on the Surigao Peninsula in the north consists chiefly of epithermal gold stockwork, vein and manto deposits developed in second-order splays of the Philippine Fault (Sillitoe 1988). The mineralization-associated igneous rocks in Surigao consist mostly of small plugs, cinder cones and dikes dated by K-Ar as mid-Pliocene to mid-Pleistocene (Mitchell and Leach 1991; Sajona et al. 1994). (B.D.Rohrlach, 2005) The basement rocks consist of the Concepcion greenschist and metamorphic rocks of Cretaceous age overthrusted by the pillowed Pangulanganan Basalts of Cretaceous to Paleogene age, which in turn, were overthrust by the Humandum Serpentinite. Its emplacement probably occurred during the Cretaceous time. This unit occupies a large part in the tenement area, which have high potential for nickel laterite mineralization. (Tagura, et.al., 2007) The Humandum Serpentinite is overlain by Upper Eocene interbedded limestone and terrigenous clastic sediments of the Nabanog Formation. These are in turn overlain by a mixed volcano-sedimentary package of the Oligocene Nagtal-O Formation, which comprises conglomeratic andesite, wacke with lesser pillow basalt and hornblende andesite, and the Lower Miocene Tigbauan Formation. The latter is comprised of conglomerates, amygdaloidal basalts, wackes and limestones. Intrusive events associated with the volcanism during this period resulted in the emplacement of plutons and stocks that are


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associated with porphyry copper-gold and precious metal epithermal mineralization in the region. (Tagura, et.al., 2007) Lower Miocene Kitcharao Limestone and the lower part of the Jagupit Formation overlie the Tigbauan Formation. The Jagupit Formation consists of conglomeratic sandstone, mudstone and minor limestone. The youngest stratigraphic unit is the Quaternary Alluvium of the Tubay River floodplain. Mineral deposits within the region are dominated by epithermal precious metal deposits and porphyry copper-gold. There is a rather close spatial and probably genetic association between epithermal precious metals and porphyry deposits. These deposits exhibit strong structural control. First order structures are those of the Philippine Fault system, which play a role in the localization of the ore deposits, while the second order structures that have developed as a result of the movement along the Philippine Fault system are the most important in terms of spatial control of ore deposition. (Tagura, et.al., 2007) Other mineral deposits are related to ultramafic rocks of the ophiolite suite and comprise lenses of chromite within harzburgite and lateritic nickel deposits that have developed over weathered ultramafic rocks. 9.2 Local Geology of Agata Project Area The Agata Projects area is situated along the southern part of the uplifted and fault-bounded Western Range on the northern end of the east Mindanao Ridge. The Western Range is bounded by two major strands of the Philippine Fault that lie on either side of the Tubay River topographic depression (B. Rohrlach, 2005). The western strand lies offshore on the western side of the Surigao Peninsula, whereas the eastern strand, a sub-parallel splay of the Lake Mainit Fault, passes through a portion of the property and separates the Western Range from the Central Lowlands to the east (Figure 4). These segments have juxtaposed lithologies consisting of at least six rock units including pre-Tertiary basement cover rocks, ophiolite complex, clastic limestone and late-stage Pliocene calc-alkaline intrusive rocks. (Tagura, et.al., 2007) 9.2.1 Greenschist (Cretaceous) The basement sequence on the property comprises greenschists, correlative to the Concepcion Greenschists (UNDP, 1984), which occur mostly in the central to southern portions of the Agata Project. This rock outcrops in Guinaringan, Bikangkang and Agata Creek as long, elongated bodies in the southern half of the tenement area. In the northern half, this unit is mapped as narrow, scattered erosional windows. The predominant minerals are quartz, albite, and muscovite with associated chlorite, epidote and sericite. In places, talc and serpentine are the main components. (Tagura, et.al., 2007) The exposure of the schist by the late Eocene implies a metamorphic age of Paleocene or older and a depositional age of Cretaceous (UNDP, 1984) 9.2.2 Ultramafics (Cretaceous) Ultramafic rocks unconformably overlie the basement schist and formed as conspicuously peneplaned raised ground on the property area. These are comprised of serpentinites, serpentinized peridotites, serpentinized pyroxenites, serpentinised harzburgites, peridotites, pyroxenites and lesser dunite, which are fractured and cross-cut by fine networks of talc, magnesite and/or calcite veins. These rocks are usually grayish-green, medium- to coarse-grained, massive, highly-sheared and traversed by meshwork of serpentine and crisscrossed by talc, magnesite and calcite veinlets. The serpentinites in the Agata Projects correlate with the Humandum Serpentinite (B. Rohrlach, 2005). The Humandum Serpentinite was interpreted by UNDP (1984) to be emplaced over the Concepcion greenschists probably before the


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Figure 3: Geologic Map of Surigao Mineral District


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Oligocene, and before late Eocene deposition of the Nabanog Formation. MGB (2002) classified the Humandum Serpentinite as a dismembered part of the Dinagat Ophiolite Complex, which is established to be of Cretaceous age. These rocks have potential for nickel due to nickel-enrichment in the weathering profile as observed in its deep weathering into a reddish lateritic soil. (B. Rohrlach, 2005). 9.2.3 Limestone (Upper Eocene) Several bodies of limestone correlative to the Nabanog Formation (UNDP 1984), were mapped in the project area. The easternmost limestone body lies in the Assmicor-Lao prospect region, in the central portion of the property and Guinaringan-Bikangkang area and at Payong-Payong area located at the western side. In the northern half of the property, these limestones occur as narrow scattered bodies probably as erosional remnants. In places, this unit exhibits well-defined beddings and schistosity and crisscrossed by calcite ± quartz veinlets. The limestones outcropping near intrusive bodies are highly-fractured with limonite and fine pyrite, associated with gold mineralization, in fractures and show green hue due to chloritization. In places, the limestone is interbedded with thin sandstone, siltstone, and shale beds. 9.2.4 Andesite and Tuff Sparsely distributed across the property are narrow bodies of andesite and tuff. Towards the vicinity of Peak 426 at the northwestern part, the andesite occurs as an imposing volcanic edifice. It is generally fine-grained to locally porphyritic in texture. The tuff grades from crystal tuff to lithic lapilli. Several exposures of this unit are described by Abrasaldo (1999) as being strongly fractured adjacent to northeast-trending faults. 9.2.5 Intrusives (Upper Oligocene to Lower Miocene) A series of intrusives of alkalic and calc-alkaline composition occur in close vicinity to Lake Mainit Fault. These include syenites, monzonites, monzodiorites and diorites that are closely associated with gold mineralization as most of the workings and mining activities are concentrated within the vicinity of these intrusive rocks. The syenites are well-observed in the American and Assmicor tunnels and consist mostly of potash feldspar. The monzonites are noted in the Lao Area, in the American Tunnel and occasionally along Duyangan Creek. Monzodiorite outcrops in the Kinatongan and Duyangan creeks and sparsely in the American Tunnel. Trachyte to trachyandesite porphyry is noted in the Kinatongan Creek. Diorites were observed in the Assmicor Tunnel, which occur mostly as dikes. The intrusions in the Lao and American Tunnel prospects have been tentatively correlated with the Mabaho Monzonite (UNDP, 1984). 9.2.6 Limestone (Lower Miocene) Correlatives of the Kitcharao limestone are scattered through large areas of the Agata Projects area. Minor outcrops of the Jagupit Formation lie in the eastern claim block adjacent to barangay Bangonay (Abrasaldo, 1999). 9.2.7 Recent Alluvium Quaternary Alluvium underlies the Tubay River floodplain, within the valley between the Western Range and the Eastern Highlands.


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9.3 Geology of the ANLP Area The widespread occurrence of harzburgite, peridotite, pyroxenite, their serpentinized equivalents, serpentinite, and localized lenses of dunite/serpentinized dunite comprise the lithology in the project area. These rocks are confined to broad ridges extending down to the footslopes. The ultramafic bodies are of probable Cretaceous age, and were emplaced as part of an ophiolite sequence during the Upper Eocene (Abrasaldo, 1999). Schists are also present in the extremities of the laterite area. Several of these rock types were likewise identified in petrographic/mineragraphic analyses of drill core and rock samples. Sample number AGA-101 was identified as wehrlite (peridotite) while AGA-102, AGA-104 and AGL-161 17.2m are serpentinized wehrlite. The drill core sample numbers AGL-161 12.15m, AGL-167 and SU02650 (AGL-238) are serpentinized websterites (pyroxenite) while SU02648 and SU02649 (AGL-238) are websterites. Serpentinites are found in sample numbers AGA-105, AGL-152, AGL-168, AGL-169, AGL-175, AGL-184 and AGL-216. One drill core sample from AGL-163 was identified as cataclasite. The location of these samples is shown in Figure 4. Lineaments trending NE are interpreted to be present in the area. Geological mapping in the project area showed favorable development of laterite along the broad ridges characterized by peneplane topography. These areas are where the drilling activities are concentrated. In areas with moderate to semi-rugged topography, erosion proceeds much faster than soil development, hence the laterite is thinner. To date, estimated area of laterite in the prospect area is approximately 286 ha. (Figures 4, 5 & 8). In the Agata Project, there are two distinct geomorphic features that have influenced laterite formation and consequent nickel enrichment. The Eastern part of the delineated body has a moderate relief whose bedrocks are exposed in ridge tops and in the nearby creeks. On the other hand, the Western laterite occurs on a low relief terrain and with no exposures of bedrock on its hillcrests. In the Western area, the laterite is well developed and contains thick and highly mineralized limonite/saprolite and transition rocks. The Eastern Laterite Zones contain boulders across the laterite profile suggesting transport. Its limonite zone is usually thinner. (A. Buenavista, 2008) Test pits that were previously excavated by a previous company showed a maximum depth of 9.40 m and an average depth of 4.96 m. All these test pits have bottomed in limonite. Drilling done by QNI, Phils. (QNPH) and MRL showed thicker laterite profile than what was revealed by previous test pitting. 10.0 DEPOSIT TYPES The Surigao Mineral District is host to several deposit types. The Philippine Fault has played an important role in the development of the Late Neogene physiography, structure, magmatism and porphyry Cu-Au plus epithermal Au metallogenesis. An intense clustering of porphyry Cu-Au and epithermal Au deposits occurs along the Eastern Mindanao Ridge. There is a strong structural control on the distribution of Au-Cu deposits in the Surigao district, and a clear association of deposits and mineral occurrences with high-level intrusives and subvolcanic bodies. Most of the centers of mineralization are located along NNW-SSE-trending second-order fault splays of the Philippine Fault, and where these arc-parallel structures are intersected by northeast-trending cross-faults. The Tapian-San Francisco property lies in a favorable structural setting at the district-scale, at the intersection between multiple strands of a NE-trending cross-structure and the Lake Mainit Fault. This same NE-trending structural axis encapsulates both the Boyongan porphyry deposit and the Placer epithermal gold deposits. (B. Rohrlach, 2005)


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Figure 4: Agata Geologic Map


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Most of the known hydrothermal gold mineralization within the district is of low-sulfidation epithermal character developed in second-order splays of the Philippine Fault. The mineralization is predominantly of Pliocene age and is spatially and temporally associated with the Mabuhay andesitic volcanism. Epithermal mineralization tends to be confined to the Mabuhay Clastics and associated andesitic stocks, lavas and pyroclastics, and in older rocks immediately beneath the unconformity at the base of the Mabuhay Clastics. The principal low-sulfidation epithermal-type, carbonate-replacement-type and porphyry-type deposits and occurrences include: vein-type (Tabon-Tabon vein, Plancoya vein); bulk-mineable stringer stockworks (Placer, Motherlode, Mapaso, Nabago); stratabound ore or carbonate-hosted (Siana mine); surface workings in argillized zones (Mapawa, Hill 664, Manpower, Layab, Gumod); placer gold (Malimono-Masgad region); porphyry Cu-Au (Boyongan, Bayugo, Asiga and Madja); high-level porphyry-style alteration (Masgad, Malimono, Tapian-San Francisco) and high sulfidation (Masapelid Island). (B.D. Rohrlach, 2005) The principal deposit types that are being explored for in the MRL tenement holdings in the Surigao Mineral District are:

Porphyry Cu-Au of calc-alkaline or alkaline affinity: TSF, TM & Ag Low-sulfidation epithermal Au: TM, TSF, Ag High-sulfidation epithermal Cu-Au: TSF Carbonate-hosted Disseminated Au-Ag Ore: Ag Skarn Au-(Cu): Ag, TSF Nickeliferrous Laterite: Ag, TSF, TM, Mat-i

The first five deposit types collectively belong to the broad family of magmatic-hydrothermal Cu-Au deposits that form above, within and around the periphery of high-level intrusive stocks of hydrous, oxidized, calc-alkaline to potassic alkaline magmas that are emplaced at shallow levels in the crust of active volcanic arcs. These different deposit types form at different structural levels of magmatic intrusive complexes, and their character is governed by a multiplicity of factors that include depth of magmatic degassing, degassing behavior, host-rock lithology and structural preparation. (B.D. Rohrlach, 2005) The Tapian-San Francisco, Tapian Main and Agata properties have high potential for the discovery of both porphyry Cu-Au style mineralization at depth and epithermal style mineralization at shallower levels. (B.D. Rohrlach, 2005) The Agata Projects area has high potential for the presence of one or more porphyry-type Cu-Au hydrothermal systems associated with 3 principal targets, and multiple satellite targets, that are associated with zones of high IP chargeability. Porphyry-style mineralization has been encountered previously in the Agata region by shallow drill holes in targets that are associated with modest IP chargeability anomalies. The Agata Projects possess multiple conceptual target styles such as porphyry, epithermal, Carlin-type and Ni-laterite (Figure 5). Occurrences of nickel and cobalt-bearing iron-rich laterites developed on ultramafic rocks are reported from several areas of the Surigao del Norte province (Louca 1995). Laterites developed on ultramafic rocks comprising serpentinized peridotite occur within the Agata project area, and potential exists within the Tapian Main, Tapian-San Francisco and Mat-i properties for these deposit types, in as much as ultramafic rocks are present on these areas. (B. Rohrlach, 2005) The spatial relationship of the nickel laterite and the underlying porphyry Cu-Au mineralization prospects is illustrated in Figure 6. There is no geological relationship between the two.


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Figure 5: Agata Compilation

Figure 6: Idealized Model of spatial relationship between nickel laterite and porphyry targets.


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Recent reconnaissance geological mapping by MRL geologists has expanded the company’s global nickel laterite resource potential. Mapping at Agata Project had previously outlined an area of potential nickel laterite mineralization covering approximately 600 ha comprising both the ANLP and the ASLP areas. The latter is the subject of Minimax-MRL- Delta agreement. Delta carried out a resource delineation program in this area in 2007-2008. Encouraged by the early results of the nickel laterite exploration in the Agata Project, a regional mapping program was carried out to determine the potential nickel laterite areas Mindoro has in its Surigao Mineral District tenements. Results indicate potential for further nickel laterite mineralization on the adjacent Tapian Main, Tapian SF and Mat-I tenements. (Figure 7) Based on the mapping alone, there is no guarantee that nickel grades and thickness will be of commercial interest. Accordingly, a program of reconnaissance auger drilling was carried out to establish a preliminary indication of the nickel laterite potential of these tenements. Several areas have been outlined that justify drilling and resource delineation. Focus on the nickel laterite prospect was triggered by the very high demand for ferro-nickel feedstock for stainless steel production in China commencing in 2005-2006. The Surigao Region is also emerging as a major nickel laterite district. There are a number of deposits either in production, providing Direct Shipping Ore (DSO) to markets and processing plants in China, Japan, Korea and Australia, or being developed. These include the SR Metals Mine, the geological extension of the Agata nickel laterite mineralization, located about 4.5km southeast of ASLP and about two (2) km to Delta’s drilling Area A in Brgy. Binuangan, Tubay. Following the softening of nickel prices in recent months, some of the existing mines for DSO have suspended production. Several attractive alternatives are emerging for the local processing of nickel laterite. These include; constructing an on-site blast or electric arc furnace for nickel pig iron production (a low grade ferronickel product); ferronickel smelting (a ferronickel smelter recently commenced operation not far away at Iligan City); heap-leaching, for which pilot testing on another Philippine laterite deposit has produced promising results; atmospheric (tank) leaching; and an improved generation of High Pressure Acid Leach (HPAL) plants. HPAL technology is currently being used with great success by Sumitomo on its Philippine Coral Bay operation, and shows considerable promise for the local processing of Surigao ores. In fact, Nickel Asia, in joint venture with Sumitomo, recently announced that it expects to proceed with construction of a high pressure acid leach (HPAL) plant in the Surigao District, which will produce 30,000 tonnes per year nickel product. Current soft nickel prices may delay this development. 11.0 MINERALIZATION 11.1 Agata Nickel Laterite Project Nickeliferrous laterite deposits are present over a broad region in the Agata Projects area (Figures 5, 7 & 8). They are divided into two (2) major areas known as the ANLP and the ASLP. Based on mapping, the former has an area of approximately 286 hectares while the latter comprises about 235 hectares. In the ANLP, drilling is concentrated in about eighty (80) percent of the interpreted nickel laterite mineralization to date.


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Figure 7: Compilation Map Showing areas of Mapped Nickel Laterite Mineralization


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The laterites are developed over ultramafic rocks that lie along the Western Range. The rock types within the ultramafics are harzburgite, serpentinized harzburgite, peridotite, serpentinized peridotite, pyroxenite, serpentinized pyroxenite, serpentinite with localized lenses of dunite/serpentinized dunite. The ultramafic bodies are of probable Cretaceous age, and were emplaced as part of an ophiolite sequence during the Upper Eocene (Abrasaldo, 1999). Formation of the laterites is thought to have occurred during the Pliocene or early Pleistocene. The largest of the laterite bodies overlies the central ultramafic body (Figure 4). Initially, MRL undertook aerial photograph interpretations and field inspections, to define areas of potential laterite formation. The soil profile is intensely ferruginous in this region, and relic cobbles of intensely fractured and serpentinized ultramafic rock lie scattered throughout the region of observed laterite development. At higher elevations along the topographic divide, ferruginous pisolites and blocks of lateritic crust were observed developed on an ultramafic protolith. Nickel laterites are the products of laterization or intense chemical weathering of the ultramafic rocks, especially the olivine-rich varieties like harzburgite and dunite. This process results to the concentration of nickel and cobalt of the parent rock. Its formation is favored in stable terrains like plateaus or broad ridges and in humid climatic conditions with high rainfall and warm temperature. Latest exploration work in the area has revealed that nickel laterite likewise occurs along the slopes. The laterite profile in the ANLP consists of the ferruginous laterite, limonite zone, saprolite zone, and the saprolitic rock, from surface to bottom of the profile. The degree of weathering gradually increases as the zone nears the surface. The limonite zone is characteristically iron oxide-rich where the predominant minerals are hematite, goethite and clay while the saprolite zone consists of Mg-rich minerals. Patches of garnierite are present within the saprolite and saprolitic rock horizon. Abundant garnierite was observed in a trench along the slopes on the western portion of ANLP. For the ANLP drilling program, MRL initially classified the laterite horizons according to visual logging. This was later reclassified according to nickel and iron content as follows: a. Ferruginous laterite – < 0.80% Ni, ≥30% Fe% b. Limonite – ≥ 0.80% Ni, ≥30% Fe% c. Saprolite – ≥ 0.80% Ni, <30% Fe% d. Saprolitic Rock – < 0.80% Ni, <30% Fe% Table 4 shows the average values for the different horizons according to this classification. The Ni values are highest in the saprolite zone (average is 1.21%), followed by limonite zone. The ferruginous laterite horizon has lower nickel content and highest iron. Cobalt content is highest in the limonite zone, Fe and Al in the ferruginous cover, and Mg and SiO2 in the saprolitic rock, followed by the saprolite. There is a marked drop within the saprolite in Fe and Al content, and a marked increase in Mg and SiO2. (There are no Al and Mg data from the early QNPH drill holes). Along the laterite profile, the saprolite zone is the thickest horizon while the ferruginous laterite is the thinnest.


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Figure.8: Agata Projects Map showing areas of Nickel Laterite Mineralization.

Table 4: Average Grades of Nickel Laterite Horizons LATERITE HORIZON AVE THICKNESS (m) Ni % Co % Fe % Al % Mg % SiO2 %

FERRUGINOUS LATERITE 1.48 0.66 0.07 45.38 4.16 0.49 2.83 LIMONITE 2.79 1.09 0.12 44.76 2.40 1.04 5.72 SAPROLITE 5.21 1.21 0.03 11.75 0.45 14.58 36.44 SAPROLITIC ROCK 4.89 0.47 0.02 7.14 0.30 18.33 38.60 Figure 9 illustrates the variations in the iron, aluminum and magnesium contents for the different laterite horizons more clearly. 12.0 EXPLORATION All exploration work on the Agata Project carried out by the operator MRL [Philippine subsidiary of Mindoro] was under the direct supervision of James A. Climie, P.Geol., MRL President and CEO. The Agata Project MPSA denominated as MPSA No. 134-99-XIII was registered on June 19, 1999. Community information and education campaigns commenced in 1997 and have continued since that time.


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Figure 9: Cross section Line 10100N Linegraph. It can be observed that the pronounced drop in iron and aluminum content from the limonite to saprolite horizons coincides with the increase in magnesium content.


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12.1 MRL Exploration (1997-2000) Initial work by MRL on the Agata Project between 1997 to 2000 comprised a geological evaluation conducted by Marshall Geoscience Services Pty Ltd. It was part of a due-diligence assessment of the property prior to entering into a Joint Venture with Minimax. This work suggested that hydrothermal gold mineralization at Agata is related to andesitic or dioritic intrusives, that vein mineralization is representative of the upper levels of a porphyry system and that there is prospectivity for skarn mineralization within limestones on the property (Marshall, 1997; Climie et al., 2000). The 1st phase of exploration activity commenced in May 1997 in the Assmicor region and consisted of grid establishment followed by soil geochemical survey (1,617 soil samples analyzed for Au, Ag, Cu, Pb, Zn, As), geological mapping plus selective rockchip sampling and petrographic studies. Furthermore, DOZ technologies of Quebec, Canada, interpreted a RadarSat image of the Agata area and generated a 1:50,000 scale interpretation of the region. In addition, MRL re-sampled by channel sampling, five test pits (ATP-1 to ATP-5) that were excavated by La Playa Mining Corporation and submitted 24 samples for Ni, Co and Au analysis by AAS. These pits encountered laterite thicknesses of 2.48 to 9.40 meters. The composited assay values for each of the re-sampled test pits range from 0.43% to 0.94% nickel. The results are incorporated in the current soil maps (Figures 10-12). The 2nd phase of exploration activities on the Agata Projects was undertaken between June 1999 and December 1999. This included grid re-establishment, geological mapping within the Assmicor Prospect and American Tunnels, ground magnetic survey, soil geochemistry (50 samples), rock/core sampling, petrography and drilling of 11 holes. (Climie et al., 2000). The soil sampling survey generated widespread Cu and Au soil anomalies. Soil Cu anomalies tend to be closely restricted to mapped intrusions at American Tunnels and Assmicor-Lao. Soil Au anomalies are more widespread and extend into the surrounding and overlying carbonate rocks. In contrast, soil As anomalies appear to be weakly developed over the intrusions but more strongly developed over carbonates. The Cu and Au soil anomalies associated with the Assmicor-Lao prospect region (Figures 10-11) are open to the east beneath the alluvial flood plain sediments of the Tubay River. The potential for an extension of the Assmicor mineralization to the immediate east beneath the Tubay River floodplain is strengthened by the observation that the dikes and intrusives encountered in drilling at Assmicor dip towards the east, that porphyry-like quartz veins were encountered in drillhole DH 99-11, which lies east of the Assmicor prospect, and the evidence of a resistivity anomaly developing on the edge of the IP survey east of the Assmicor prospect. Nineteen surface channel samples were collected in the Limestone Prospect area (Figure 13). Sixteen of these samples yielded grades ranging from 0.02 g/t Au to 0.85 g/t Au. Three of the samples graded 2.79 g/t Au over 3.7 meters, 3.77 g/t Au over 2 meters and 1.48 g/t Au over 3 meters. The channel samples indicate a zone of anomalous gold above 0.1 g/t in rock samples that extends over an area of 100m by 50m in oxidized limestone. Petrographic analyses by Comsti (1997) and Comsti (1998) reveal that the intrusive rocks at Agata consist of alkalic, silica-undersaturated plutonic rocks. These comprise of syenites and monzonites that display varying degreees of sericitic and propylitic alteration. Potassic feldspar is a primary mineral phase in many of these rocks. An in-house ground magnetic survey was conducted in 1999 (Figure 14). The magnetic data comprised a series of semi-continuous magnetic highs, with values >40250nT, that broadly coincide with the distribution of ultramafic rocks along the western margin of the Lao and Assmicor areas. The magnetic signature decreases gradually westward where the ultramafics are thought to be buried at deeper levels beneath the limestones.


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MRL drilled eleven (11) diamond drill holes into the Assmicor and Limestone prospects in 1999 and encountered significant Au intersections associated with limonitic stockworks in biotite monzodiorite intrusive. These include 18.8m @ 1.13 g/t Au and 24.2m @ 1.38 g/t Au in holes DH 99-05 and DH 99-06, respectively. The intrusives comprise larger biotite monzodiorite bodies that are cross-cut by younger diorite dikes, plagioclase diorite dikes, biotite diorites and quartz diorites. These dikes and intrusive bodies dip predominantly eastward, suggesting that a deeper magmatic source lies to the east, possibly along the trace of the Lake Mainit splay of the Philippine Fault, beneath the alluvial floodplain of the Tubay River. Drillhole DH 99-11, collared east of the Assmicor shaft, intersected porphyry-style quartz-magnetite veins in biotite diorite, quartz diorite and in hornblende-quartz diorite. 12.2 MRL Exploration (2004-2006, and 2008) MRL undertook a third phase of exploration activity in 2004 on the Agata Project. This activity involved gridding, mapping and extensive grid-based pole-dipole induced polarization (IP) geophysical surveying along 30 east-west-oriented survey lines that extend from 7,800 mN to 13,400 mN. The IP data were acquired by Elliot Geophysics International using a Zonge GGT-10 transmitter, a Zonge GDP-32 receiver and a 7.5 KVA generator. A total of 77.10 km of grid were surveyed by pole-dipole IP. The dipole spacing used in the survey was 150 meters. The data were modelled by Dr Peter Elliot of Elliot Geophysics International using inversion modeling (Figures 15-16). Induced polarization (IP) surveying on the Agata Project has identified numerous IP chargeability anomalies that form finger-like apophyses at shallow levels, and which amalgamate into larger anomalies at deeper levels. The IP chargeability anomalies tend to strengthen with depth in the core anomaly regions (Southern Target anomaly and Northern Target anomaly). The IP chargeability anomalies attain values that locally exceed 40 msecs, and routinely exceed 20 msecs on most of the IP pseudo-sections from Agata. Weaker modeled IP chargeability anomalies are associated with known mineralization at Assmicor (10-18 msec) and in other satellite positions adjacent to the two cores Northern and Southern target anomalies. There is an indication, from the four plan views of the IP chargeability data, that NNW to NW faults may be important in controlling the distribution and shape of many of the IP anomalies at Agata. Faults that lie along these trends are expected to lie in a dilational orientation in relation to the regional stress field associated with sinistral movement on the near north-trending Philippine Fault splay. Preliminary drilling on the Agata Project was carried out between November 2, 2005 and October 28, 2006. This was conducted under a joint-venture among MRL, Panoro Minerals Ltd. (Panoro), and Minimax. The prospects were highly recommended priority targets for drill evaluation as these prospects exhibit classic stacking of geophysical, geological and geochemical features associated with Philippine porphyry copper-gold systems (Rohrlach, 2005). The preliminary drilling program was aimed to test the area of highest chargeabilities in the North and South Porphyry Targets. Great operational difficulties were encountered in extraordinarily bad ground conditions. A total of five drill holes with a combined length of only 756.45 meters were completed, four of which were drilled within the North Porphyry Target and one at South Porphyry Target. All five holes were prematurely terminated, not reaching target depths. The chargeability anomalies were interpreted to occur at around 375m below surface (N=4) based on IP geophysical inversion models. The deepest hole bottomed at only 251.20m, a long way from the 500-meter target. All drill holes have intersected and bottomed in strongly serpentinized ultramafics with very minimal pyrite mineralization. Dr. Peter Elliot, Consulting Geophysicist, affirmed that the serpentine was not the cause of the anomalies, and would only cause a weak IP anomaly. Drilling in such sheared ultramafics


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is very difficult but the targets are considered to have high potential for porphyry Cu-Au mineralization and further drill testing using alternative drill strategies was recommended. At the Assmicor Porphyry Prospect, the porphyry-style quartz-magnetite veins with pyrite, chalcopyrite and gold mineralization intersected in 1999 drill hole 11 indicate a magmatic source to the east. The very strong and extensive gold and copper in soil anomalies also clearly point to an eastern magma source, and suggest that this may be significantly mineralized. The “open” resistivity in the prospect is interpreted as silicification associated with the postulated porphyry system (Tagura, et.al., 2005). However, the extensive IP trend at Agata suggests the main occurrence of intrusives is along the higher terrain west of Tubay River. In 2008, underground mapping and sampling of the American Tunnels prospect was undertaken. At the time of this writing, the evaluation is still ongoing. In June 2004, Taganito Mining Corporation was selected from several interested parties and granted the non-exclusive right to assess the nickel laterite potential of the Agata Project. Taganito carried out two phases of evaluation and reported encouraging results. Forty-eight surface laterite and rock samples were collected from an area of about 300 ha within a much more extensive area of nickel laterite mineralization. Nickel contents range from very low to a high of 2.09%, with most of the values exceeding 0.5%. Taganito considered these values to be within the range that normally cap the secondary nickel enriched zone and have recommended a detailed geological survey and drilling. However, MRL elected to allow Queensland Nickel Phils., Inc. (QNPH) to proceed with a reconnaissance drill program in 2006. QNPH, a subsidiary of BHP-Billiton, conducted reconnaissance drilling over the ANLP from January 23, 2006 to April 26, 2006 at an initial drilling grid of 200m x 200m followed by in-fill drilling at 100-m grid spacing. A full report of the drilling program entitled “Evaluation of Preliminary Exploration on Agata Nickel Laterite Prospect of MRL Gold Philippines, Inc, Agusan del Norte, Philippines” was completed by QNPH in June 2006 and submitted to MRL immediately thereafter. A total of 35 holes were drilled over an area of approximately 80 ha, which is 21% of the 340-hectare ANLP. The drillhole locations are incorporated in the MRL’s AGL Drillhole Location Map (Figure 17). This drilling program was subsequent to a Memorandum of Understanding (MOU) signed between MRL and QNPH on December 5, 2005. The MOU allowed QNPH to conduct exploration in the property, which also include technical review and geological mapping. It was intended to evaluate and establish resource potential of the area and as a possible Yabulu Refinery ore source, and to present a resource model. To evaluate the potential of the ANLP for the Chinese market, MRL commissioned Denny Ambagan to re-evaluate QNPH’s data with the aim of estimating low-grade resources for the Chinese market. Ambagan is a geologist, who worked for Crew Minerals in its Lagonoy and Mindoro nickel laterite exploration areas for three years. An in-house estimate was tabled. Both QNPH’s and Ambagan’s resource estimates are non-NI-43-101-compliant, and not herein released. They served as guide in setting the exploration target for MRL’s succeeding drilling programs.


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Figure 10: Agata Soil (Gold) Map


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Figure 11: Agata Soil (Copper) Map


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Figure 12: Agata Soil (Zinc) Map


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Figure 13: Agata Rock Geochemistry Map


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Figure 14: Agata Ground Magnetic Survey Map


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Figure 15: Agata Chargeability @ L=7


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Figure 16: Agata Resistivity @ L=7


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13.0 DRILLING 13.1 Exploration Targets: a. The Exploration Target (A) for the ANLP, as first released on March 13, 2007, was 2 million to 3.5

million tonnes at a grade of 0.9 to 1.2 percent nickel and 40 to 45 percent iron. This was to form the basis for an initial, small, Direct Shipping Ore (DSO) operation. The Exploration Target area was focused on the area covered by the 35 drill holes of QNPH in 2006, which covers less than 20% of the area of nickel laterite mapped at ANLP.

This Exploration Target was later revised as new information was acquired from drilling and geological mapping activities. b. On June 20, 2007, the Exploration Target (B) area was enlarged to cover the entire ANLP as

emphasis shifted from the DSO operation to establishing an on-site processing operation. It was increased to 50 to 60 million WMT at a grade of 0.9 to 1.1 percent nickel and 28 to 32 percent iron. This was based on over 90 drill holes completed and mapping data at that time. Average thicknesses and grades encountered in the previous drilling, and a wet bulk density of 1.5 tons per cubic meter were used to arrive at the revised Exploration Target (B).

c. On April 30, 2008, with the release of the initial resource estimate and based on better information,

the Exploration Target (C) was slightly reduced to 40-60 million WMT at a grade of 0.9-1.5% nickel and 18-28% iron. At that time, 150 holes had been completed, while the resource estimate was based on 135 holes.

d. With the release of the second resource estimate on August 12, 2008, the Exploration Target (D)

was revised to 30 to 40 million WMT at a grade of 0.9 to 1.5 percent nickel and 18 to 28 percent iron. This was based on more detailed mapping and the additional drilling (225 drill holes), giving more precision to the Exploration Target estimate.

13.2 Drilling Phases: The first drilling program in the ANLP was conducted from February 22 to August 3, 2007 with 100 holes completed and a total meterage of 2267.12. Drilling was confined to the area defined for an initial DSO operation. The drilling area related to areas covered by initial Exploration Targets A and B. A follow-up infill drilling program in ANLP was started in December 17, 2007 to May 30, 2008, completing 773.12 meters in 48 drill holes. The purpose of this exercise was to better define the mineralization and extend the initial resource. From June 18, 2008 to September 26, 2008, step-out drilling was carried out with hole spacing widened to 100m by 100m centers. Drilling totaled 3,601 meters in 225 holes. This program was aimed to drill out the greater part of Agata North resource potential based on areas covered by Exploration Targets C and D. A total of 408 vertical holes has been completed during all phases of drilling in the ANLP, including the previous QNPH drilling. These are located on 50m- to 100m-spaced grid. Total meterage is 7300.83 with an average depth of 17.89m/per hole, a maximum of 46.6m, and a minimum of 4.35m. These drill holes are shown in Figure 17. A total of 7271 core samples composed of 6613 samples from MRL drill holes and 658 samples from the QNPH drill holes were analyzed and used in the resource estimate.


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13.3 Drilling Contractors: Initially, under a contract agreement, Construction and Drilling Specialists, Inc. was commissioned by MRL to conduct the core drilling at the ANLP. The contractor’s address is 1215 Mega Plaza Bldg, ADB Avenue, Corner Garnet Rd, Ortigas Center, Pasig City. Five man-portable drill rigs were used in the program namely: 1) GM-50, 2) TOHO D2-JS, 3) TS-50/G, 4) TS-50/Y, and 5) YBM-01. NQ size core barrels (but not wireline) were used. Tungsten bits were normally used but were changed to diamond drill bits whenever hard rocks/boulders were encountered. A combination of dry and wet techniques was applied, with the latter used for hard ground. CDSI was replaced by TCD Drilling Consultancy Services of Panorama Hills Subdivision, Cupang, Antipolo City to continue the infill drilling in December 2007. It drilled 48 holes with an aggregate of 773.12 meters. Four man-portable drill rigs were brought in namely: 1.) TONE 1, 2) TOHO 1, 3) TOHO 2, and 4) TOHO 3. These rigs are similar to those of the previous contractor but with single tube using conventional dry drilling techniques. A modest amount of lubricants are applied for hard rocks or boulders. Due to slowness of the drilling, the services of TCD were terminated on May 30, 2008. JCP Geo-Ex Services, Inc. of Camella Tierra Grande Homes, Lawaan, Talisay, Cebu continued the drilling from June 18, 2008 to September 26, 2008. It drilled 225 holes with an aggregate of 3601.50 m. JCP used six (6) rigs for its drilling operations at ANLP. These rigs are: 1) KOKIN, 2) KOKIN-C, 3) YBM, 4) JCP 3, and 5) JCP 11, and 6) JCP 13. JCP employed similar drilling techniques as that of TCD but accomplished it at a substantially faster rate. 13.4 Drilling Rates: Drilling operations in Agata was done on one 12-hr shift/day. Overall production rate for CDSI is 3.28 m/day, for TCD is 1.92 m/day and for JCP is 10.42 m/day. The following table shows the details.

Table 5: Drilling Rates

RIG TYPE Holes Drilled

(#) Meterage

/Rig Total

Duration (day)

Ave Daily Rate/ Rig

Type (m/day) CONTRACTOR

Ave Rate/ Contractor

(m/day)

GM-50 14 327.40 99 3.31

CDSI 3.28 TOHO D2- JS 22 457.62 148 3.09 TS-50/ G 23 466.60 146 3.20 TS-50/ Y 24 539.65 153.5 3.52 YBM-01 17 475.75 145.5 3.27 TOHO 1 9 145.47 109 1.33

TCD 1.92 TOHO 2 13 178.15 89 2.00 TOHO 3 9 160.40 77 2.08 TONE 1 17 289.10 127 2.28 JCP 11 28 472.95 46 10.28

JCP 10.39

JCP 13 40 556.10 50 11.12 JCP 3 47 782.80 78 10.04 KOKIN 16 304.20 31 9.81 KOKIN C 40 628.90 60.5 10.40 YBM 54 856.55 80 10.71

TOTAL 373 6641.74 1439.5 4.61


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Figure 17: ANLP Drillhole Location Map


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13.5 Drillhole Collars Survey Surveying of drill hole collars’ position and elevation was undertaken by MRL surveyors using a Nikon Total Station DTM-332. This, together with the topographic survey of the ANLP is tied to six National Mapping and Resource Information Authority (NAMRIA) satellite/GPS points and benchmarks with certified technical descriptions (Appendix 2). The Reference System used is PRS 92 or WGS 84, used interchangeably by mathematical conversions. Consequently, the baseline for the local gridlines is based on 51 MRL control stations. About 65,535 survey points, including drill hole collars, were established with varying shot distances. These are downloaded into the computer by seamless data transfer, imported to MAPINFO, which are then used for the Digital Terrain Modeling to derive the contour map.

Table 6: NAMRIA Tie Points Technical Description STATION LATITUDE LONGITUDE EASTING NORTHING LOCATION

AGN_45 9°11'07.88738" 125°33'39.04409" 561636.287 1015703.065 SW-end corner of Sta. Ana Bridge, Tubay

AGN_46 9°11'11.29480" 125°33'39.28491" 561643.476 1015807.756 NW-end corner of Sta. Ana Bridge, Tubay

AGN_48 562018.601 1019260.784

AGN_153 9°19'23.02761" 125°33'15.95108" 560907.623 1030913.182 NW-end corner of Puyo Bridge, Jabonga

AGN_154 9°19'14.68259" 125°33'13.72449" 560840.077 1030656.707 NW-end corner of Bangonay Bridge, Jabonga

13.6 Drilling Results Core drilling conducted by MRL in its ANLP drilling program totaled 373 vertical drill holes that spanned an area of 2,200m x 1,600m with 2 other smaller areas. The 35 previous QNPH drill holes are within the area of the MRL drill holes. 177 drill holes were spaced at 50m x 50m plus 11 twin holes. The remaining 220 holes were drilled on 100m x 100m grid centers. The nickeliferrous horizons encountered in the drill holes are: ferruginous laterite; limonite; saprolite; and saprolitic rocks. Drilling continued several meters into the bedrock for most of the holes. These horizons vary in thickness from hole to hole, and some horizons are absent in some of the holes. For example, 85 holes were collared on limonite, 15 holes on saprolite, and 23 holes on saprolitic rock. The drilling results indicated an average thickness of 2.79m for the limonite horizon and 5.21m for the saprolite. This is based on the classification as discussed in Item 11.1. Though there is considerable variation in the thickness of the different laterite horizons, the sections generated from the area show a consistent development of the whole profile across the drilled area. However, there is considerable thinning of the profile on steeper slopes in the valleys and on the steep sides of the Western Range. There is moderate grade variation as well. These generally indicate reasonable continuity of the mineralization. To illustrate, cross section 10100N is shown in Figure 18. More cross sections are shown in Appendix 3.

Table 7: Average Grades of Laterite Horizons at Line 10100N Laterite Horizon Ave Thickness (m) Ave Ni % Ave Fe %

Ferruginous laterite 1.66 0.68 45.68 Limonite 4.46 1.09 45.85 Saprolite 7.39 1.16 11.73


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Figure 18: Cross Section Line 10100N showing grades and thickness of laterite horizon


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The average nickel and iron grades of the limonite horizon (1.09% Ni and 45.85% Fe) are robust. The average grade of the underlying saprolite horizon (1.16% Ni) is diluted by internal boulders and un-lateritized blocks or "floaters". 14.0 SAMPLING METHOD AND APPROACH The ANLP QA/QC Procedures for the whole ANLP drilling program was set up by MRL geologists and was followed by all personnel involved in all stages of the program (Appendix 4). This was adapted from the QA/QC Protocols of QNPH for the 2006 drill program carried out on the ANLP. Periodically, the protocols were evaluated and improvements implemented. The core handling, logging and sampling procedures applied in the program are briefly described below. It is a standard procedure that core checkers, who are under the supervision of MRL technical personnel, are present on every drill rig during operation. This is to record drilling activities from core recovery, core run, pull-out and put-back, casing and reaming at the drill site. Once a core box is filled, it is sealed with a wooden board then secured with a rubber packing band. This is placed in a sack and manually carried to the core house some 300 - 1000 m from the drill area. Core logging was carried out in the core shed by MRL site geologists. For standardization of logging procedures, the geologists are guided by different codes for laterite horizon classification, weathering scale, boulder size, and color. After logging, the geologist determines the sampling interval. Core sampling interval is generally at one (1) meter intervals down the hole, except at laterite horizon boundaries, when actual boundaries are used. The sample length across the boundaries is normally in the range of 1.0 ± 0.30m to avoid excessively short and long samples. In the saprolitic rocks and bedrock layers, some sample intervals have lengths greater than 1.30 meters to a maximum of 2.00 meters. Table 8 lists the frequency of sampling for each length group.

Table 8: List of Sampling Intervals Length Freq. # (MRL) Freq. # (QNPH)

<1m 1580 89 1m 3449 487

≤1.30m 1279 76 >1.30m 305 6

All available cores were sampled, except for 2 intervals in drill hole AGL 2007-46, which was mostly composed of schists. Nineteen (19) intervals, with an aggregate length of 15.90 meters, were not sampled due to core loss. A total of 6,613 samples were collected by MRL from the drill cores. These samples cover an area of approximately 235 hectares. Core recovery was determined by measuring the actual core lengths, then comparing to the core run. From a total core drilled meterage of 6,641.74 m (MRL drilling), 6,145.91 m were recovered or 92.53%. Core recovery is generally high but it varies in the different soil horizons wherein recovery is generally highest within the limonite zone and lowest in the bedrock. There were 18,851 core runs, 65.91% of which had 100% recovery. For the different rig types, the JCP 11 of JCP Drillers produced the highest recovery (97.53%) while the lowest is the TOHO D2-JS (86.11%). The details of recovery averages are shown in the table below.


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Table 9: Core Recovery Percentages Laterite Zone % Rec

Recovery (%)

#RUNS

% FREQ. Rig Type % Rec Contractor % Rec/

Contractor F LATERITE 91.48 0 - 10 % 113 0.60 GM-50 87.62

CDSI 88.23 LIMONITE 94.49 10 - 90 % 4197 22.26 TOHO D2-JS 86.11 SAPROLITE 92.60 90 - 99 % 2116 11.22 TS-50G 89.61 SAP ROCK 92.70 100% 12425 65.91 TS-50Y 87.55 BEDROCK 91.00 TOTAL 18851 100.00 YBM-01 90.13 TONE 1 92.75

TCD 92.94 TOHO 1 95.15 TOHO 2 92.07 TOHO 3 92.44 JCP 11 97.53

JCP 95.16

JCP 3 94.15 JCP 13 95.03 KOKEN C 94.16 KOKEN 96.74 YBM 95.00 OVERALL 92.53

15.0 SAMPLE PREPARATION, SECURITY AND ANALYSES 15.1 MRL Protocols As in all stages of the program, the ANLP QA/QC Procedures (Appendix 4) were diligently followed during the sample preparation and security procedures. The analyses for the first 2,689 core samples were performed by McPhar Geoservices (Philippines), Inc. (McPhar), which follows internationally-accepted laboratory standards in sample handling, preparation and analysis. For the rechecking of the integrity of laboratory assays, independent consultant Dr. Bruce D. Rohrlach, also a qualified person, provided MRL geologists with sampling procedures in May, 2007 after several site visits. This was incorporated into the QA/QC Procedures. Following the recommendations of another qualified person, F. Roger Billington in May, 2008, the sampling protocols were slightly modified. The most important modification was the insertion of pulp rejects in the same batch as the mainstream samples. This is to ensure that all conditions in assaying are similar, if not completely the same for both the mainstream and check samples. In addition, the next 3,924 core samples were sent to Intertek Testing Services, Phils., Inc. (ITS) for analysis using the XRF analytical method. The ITS Phils. facility is among Intertek’s global network of mineral testing laboratories. It provides high quality assay analysis of mineral samples for nickel deposit exploration projects. Intertek mineral testing laboratories implement quality protocols. This is discussed in Item 15.2.2. 15.1.1 MRL Core Sampling During the first two phases of drilling, whole core sampling was conducted for 132 drill holes, and 17 holes were split-sampled. The purpose of assaying the whole core was because of the relatively small core diameter, and to achieve better precision by assaying the largest possible sample as well as to avoid any bias that could occur during splitting and quartering of the core. Core splitting was manually performed. The core was laid on a canvass sheet, pounded and crushed by use of a pick, thoroughly mixed, quartered, then the split sample is taken from 2 opposite quarter portions. The other 2 quarters are combined and kept as a duplicate in a properly-sealed and labeled


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plastic bag and arranged in core boxes according to depth. The duplicates are stored in the core house at the Agata Base Camp, some 1.5 km from the drill area. For the third drilling phase, split-sampling was conducted to ensure the availability of reference samples in the future (except for 45 drill holes for which the entire core was sampled). The cores were cut in half using either a core saw or spatula. The remaining half is stored in properly-labeled core boxes. The sampling interval is marked in the core box by means of masking tape/aluminum strip labeled with the sampling depth. The sample collected is placed in a plastic bag with dimension of 35 centimeters (cm) x 25cm secured with a twist tie. The plastic bag is labeled with the hole number and sample interval. After the samples are collected, they are weighed then sun-dried for about 5 hours and weighed again before final packing for delivery to the laboratory. In cases where there is continuous rain, the samples are pan-dried for 5-6 hours using the constructed drying facility or wood-fired oven. Commencing with batch 2008 AGL 18, only the sun-drying was practiced. The prepared samples were transported manually into the base camp at Barangay E. Morgado. These were then checked and inspected for completeness of sample tags and for any damage to the sample bags. Sample tags were then provided by Mcphar. For the samples sent to Intertek, MRL prepared its own sample tags. The samples were placed in a rice sack and then in a box within a wooden crate to ensure the security of the samples during transport. For all of the 2007 cores and batch 2008 AGL 10, the prepared samples were sent to the McPhar laboratory in Makati City, Metro Manila via a local courier (LBC Express). The samples were carefully packed in craters with proper labels. This was accompanied by an official Submission Form and a Courier Transmittal Form. The crates were transported to Butuan City where LBC Express branches are present. The transportation of the crates containing the samples is always accompanied by designated MRL staff. The courier received the package and provided MRL with receipts indicating contents. For batches 2008 AGL 1, 3 and 6, the samples were delivered by MRL personnel to McPhar’s sample preparation facility in General Santos City. The assaying was performed in their laboratory in Makati City. Counting and cross-checking of samples vis-à-vis the McPhar Submission Form were performed by McPhar supervisors. Notice is given to MRL if there are discrepancies, otherwise it is understood that sample preparation and analysis will be carried out as requested. A sample tracking, quality control, and reporting system was maintained between MRL and McPhar. For batches 2008 AGL-13, 16, 18 and onwards, the core samples were delivered to Intertek’s sample preparation facility in Surigao City. Likewise, checking of samples against the list was done upon submission. Once prepared, Intertek-Surigao sent the samples to their assay laboratory in Muntinlupa City, Metro Manila. The core sampling and logging facility was under the supervision of MRL geologist or mining engineer at all times. This facility is within the drill area and is about 300-1000 m from the drill pads. The activities in the other core storage facility at Bgy. E. Morgado base camp was likewise supervised by either a geologist or mining engineer at all times. A civilian guard secured the base camp premises during the night. The ANLP drilling was directly under the supervision of James A. Climie, P. Geol., a geologist and CEO of Mindoro.


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15.1.2 Rechecking of Laboratory Results In addition to stringent sampling protocols, QA/QC procedures were also employed following Dr. B. Rohrlach’s and F.R. Billington’s (MRL independent consultants) guidelines. Standard reference materials, field duplicates, coarse rejects and pulp rejects were analyzed to check the validity/accuracy of the laboratory results. A total of 809 analyses of check samples were collected. The details are shown in Table 10. Selection of check samples are spread throughout all holes and in various laterite horizons. The field duplicates totaled 223 or 3.37% of the 6613 mainstream core samples of MRL. Normally, 1 in every 20 core samples is duplicated. The duplicate sample is selected to ascertain that the full range of different laterite horizons is systematically covered. The samples were selected to cover the full range of Ni grades at Agata, and to extensively cover the different stages and spatial distribution of the drill program, so as to provide a representative check on the reliability of the original sample splitting process undertaken by MRL at the drill site. Its distribution for each laterite horizon is shown in Table 11. Originally, the splitting method is the same as for obtaining duplicates for storage but 1/4 part of the prepared sample represents the field duplicate while the 3/4 part is the regular sample. For the half-core sampling, the field duplicates were taken by cutting the remaining ½ core into 2. These samples were sent to the laboratory in the same batch and were treated in the same way as the mainstream core samples. A set of 69 coarse reject samples, comprising 1.04 % of the 6613 core samples, were submitted to the laboratory where the original samples were analyzed for resampling and assaying. Resampling was done by taking a duplicate split from the coarse rejects and then placing it back into the assay stream for analysis. Again, as in all duplicates, the submitted samples were chosen to cover the natural range of assays. The reanalysis of the coarse reject samples was undertaken as an internal check on the crushing and sub-sampling procedures of the laboratory to ensure that the samples taken for analysis were representative of the bulk sample. There were two sets of pulp rejects sent for re-assaying. One was sent to the laboratory where it was originally analyzed. A total of 152 pulp rejects were sent under this category. The other set was sent to an umpire laboratory wherein a total of 163 pulp rejects were analyzed. This is to establish reproducibility of analysis and determine the presence or absence of bias between laboratories. Samples were taken on all of the different laterite horizons. Originally, pulp rejects were collected and sent in separate batches. Starting on June 2008, pulps were inserted together with the mainstream samples (1 in each set of 40 samples). The pulp rejects for inter-laboratory checking were sent at a later date. The umpire laboratory for the 2007 drilling program was Intertek in Jakarta. Selected pulp samples were sent by MRL to Intertek’s Manila office, after which they forward the samples to Jakarta in Intertek Cilandak Commercial Estate 103E, JI Cilandak KKO, Jakarta 12560. Intertek (Jakarta) has acquired an ISO 17025 2005 accreditation from KAN (National Accreditation Body of Indonesia) denominated as LP 130_IDN. This is valid until 2010. With the change of primary laboratory to Intertek Phils., Mcphar becomes the umpire laboratory. In 2008, Mcphar samples/assays were checked by Intertek Phils. and vice-versa. Nickel standards or certified reference materials (CRM) are routinely inserted to the batches of core samples sent for assaying. This is done as a double check on the precision of the analytical procedures of Mcphar and Intertek on a batch by batch basis. The standards, which have known assay values for Ni, were provided by Geostats Pty Ltd of Australia in pulverized (pulp) form weighing about 5 grams contained in 7.5cm X 10cm heavy duty plastic bags. Originally, one (1) standard sample is inserted for every batch of 40 to 45 samples. However, there were some standards


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inserted in smaller intervals of 25-35 samples. Starting with Batch 2008 AGL-18, one standard sample was included in every set of 40 samples. In all, 202 standards equivalent to 3.05 % of the core samples were used. Twelve types of standards were used with grade ranging from 0.11% to 2 % nickel. Each one comes with a certificate that shows the accepted mean value and standard deviation, which are available in the website of Geostats (www.geostats.com.au). The specific nickel standards and the frequency of using each one are listed in Table 12.

Table 10: Numbers of Core, Reference and Recheck Samples Analyzed

DISPATCH NO Drill hole #

ASSAYED CORE (#)

LAB RECHECK

(#)

LAB SPLIT

(#) GBM (#)

FIELD DUP (#)

PULP DUP (#)

PULP DUP (#)

(Interlab)

COARSE REJECT

(#)

Total (Check

Spl) 2007 AGL-01 6 134 14 3 6 1 3 1 28 2007 AGL-02 6 178 17 4 9 3 1 2 36 2007 AGL-03 6 183 18 4 9 1 4 2 38 2007 AGL-04 6 185 18 4 9 2 2 2 37 2007 AGL-05 7 220 23 5 11 1 4 2 46 2007 AGL-06 7 189 19 4 10 2 3 2 40 2007 AGL-07 6 117 13 3 6 2 1 2 27 2007 AGL-08 7 141 15 3 7 1 5 1 32 2007 AGL-09 5 109 11 4 6 1 2 2 26 2007 AGL-10 7 129 11 3 7 2 5 1 29 2007 AGL-11 7 150 16 3 8 1 5 1 34 2007 AGL-12 6 109 11 2 7 1 4 2 27 2007 AGL-13 9 127 12 3 7 2 5 1 30 2007 AGL-14 4 46 5 1 3 1 4 1 15 2007 AGL-15 11 204 20 4 12 3 6 2 47 2008 AGL-01 4 81 8 2 2 2 1 0 15 2008 AGL-03 7 127 13 5 3 2 0 3 26 2008 AGL-06 8 143 15 5 3 0 4 2 29 2008 AGL-10 7 117 13 4 3 2 1 0 23 2008 AGL-13 6 104 5 7 4 2 0 0 1 19 2008 AGL-18 16 215 8 14 12 6 12 14 2 68 2008 AGL-19 5 124 6 8 3 3 4 2 2 28 2008 AGL-20 8 139 7 8 4 3 4 7 2 35 2008 AGL-21 9 174 10 11 4 5 4 5 4 43 2008 AGL-22 5 77 6 6 2 2 2 1 1 20 2008 AGL-23 4 86 6 5 2 2 2 3 0 20 2008 AGL-24 7 115 12 8 3 3 3 5 1 35 2008 AGL-25 7 157 8 11 4 4 4 4 1 36 2008 AGL-26 10 228 19 17 6 6 6 6 1 61 2008 AGL-28 5 132 7 9 5 5 4 3 1 34 2008 AGL-29 6 156 9 10 3 3 4 2 0 31 2008 AGL-30 8 143 8 10 4 4 3 8 3 40 2008 AGL-31 6 116 7 8 3 3 4 4 1 30 2008 AGL-32 7 103 5 8 3 3 2 5 2 28 2008 AGL-33 9 149 8 10 4 4 4 6 0 36 2008 AGL-34 7 121 6 8 3 3 3 3 2 28 2008 AGL-35 16 274 15 18 8 7 8 5 1 62 2008 AGL-36 1 21 1 1 1 1 1 5 2008 AGL-37 15 261 14 17 8 5 6 2 3 55 2008 AGL-38 24 295 14 20 9 5 7 0 1 56 2008 AGL-39 20 217 18 15 13 5 10 0 1 62 2008 AGL-40 23 243 18 18 13 6 12 3 7 77 2008 AGL-42 23 274 15 20 16 6 13 14 2 86 QNPH Holes 35 658 61 61


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Table 11: Frequency of Check Sampling per Laterite Zone

Laterite Horizons Field Duplicates

Pulps (External)

Pulps (Internal)

Coarse Rejects

Ferruginous Laterite 32 24 18 19 Limonite 64 33 27 15 Saprolite 78 48 51 11 Saprolitic Rock 31 39 38 20 Bedrock 18 19 18 4

TOTAL 223 163 152 69

Table 12: Frequency of Using Nickel Reference Materials Type of Standard Mean Ni Value (%) Stdev No. of Times Used GBM 305-9 0.25 0.014 21 GBM 307-13 2.00 0.090 16 GBM 901-1 0.80 0.050 38 GBM 903-2 0.11 0.005 25 GBM 905-13 1.51 0.070 23 GBM 906-8 0.55 0.030 44 GBM 398-4 0.41 0.020 5 GBM 900-9 1.16 0.070 5 GBM 901-2 0.88 0.060 8 GBM 906-7 0.56 0.030 6 GBM 996-1 1.27 0.070 5 GBM 302-8 1.08 0.070 6

TOTAL 202 15.2 Laboratory Protocols 15.2.1 McPhar Geoservices (Phil.), Inc. McPhar carries out high quality sample preparation and analytical procedures. It is an ISO 9001-2000-accredited laboratory and has been providing assay laboratory services to both local and foreign exploration and mining companies for more than 35 years. It served as the primary laboratory for the ANLP drilling. Its address is 1869 P. Domingo St., Makati City, Metro Manila. Mcphar’s sample preparation procedures and analytical processing are illustrated in the flowcharts below. (Figures 19 and 20) Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al), silica (SiO2) and some samples for phosphorous (P). The Ni, Co, Fe, Mg and Al are assayed by dissolving a 25g charge with a two acid digest using hot hydrochloric (HCl) and nitric acid (HNO3) and reading the results by Atomic Absorption Spectroscopy (AAS). The SiO2 and P are analyzed by gravimetric process. McPhar has its own Quality Assurance / Quality Control (QA/QC) program incorporated in their sample preparation and analyses procedures. Every tenth sample and samples with "anomalous" results, i.e., samples having abnormally high or low results within a sample batch, are routinely checked. This is done by preparing a solution different from the solution on the regular sample taken on the same pulp of a particular sample.


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Figure 19: Flowchart of Mcphar’s Sample Preparation for Laterite

Figure 20: McPhar’s Laterite Analysis Procedure Flowsheet


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15.2.2 Intertek Testing Services Phils., Inc. Intertek Testing Services Phils., Inc. is among Intertek’s global network of mineral testing laboratories. It provides quality assay analysis of mineral samples for nickel deposit exploration projects. Measures are taken by Intertek mineral testing laboratories to ensure that correct method development and quality protocols are in place to produce good quality results. Their sample preparation procedure is illustrated in the following flowchart. (Figure 21) Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al), silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock analyses are done using X-ray Fluorescence. The samples are fused using lithium metaborate. XRF analysis determines total element concentrations that are reported as oxides. For its internal QAQC, Intertek performs repeat analyses plus split sample analyses in every 15-20 samples. Furthermore, on the average, one standard reference material is inserted in every 40 samples, and one blank in every 60 samples. Figure 21: Intertek’s Sample Preparation Procedure for Laterite


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15.3 Results of Internal Check Assays (McPhar and Intertek) The laboratories of Mcphar and Intertek in Manila have a Quality Assurance/Quality Control programs incorporated in their sample preparation and analyses procedures. The three laboratories regularly conduct duplicate analysis of Ni and other elements as a check on analytical reproducibility. Repeats are routinely conducted on all elements being analyzed and are typically on every 10th sample for McPhar and on every 20th sample for Intertek. All in all there are 504 (7.62%) repeat analyses that are spread evenly throughout the entire database. Figure 22 shows excellent correlation for all of the elements analyzed with R² = 0.99, and Ni-1 , Ni-2 correlation being 0.999. The Relative Percentage Errors (RPE) are all below 1% as shown in Table 13, with consistent and high precision repeatability. Negative values indicate that the repeat analysis is higher.

Table 13: Relationship of Original and Repeat Analyses Ni % Co % Fe % Al % Mg % SiO2 %

McPhar RE % 0.05 -0.26 -0.15 -0.08 -0.28 0.03

Orig = Recheck 98 204 4 98 23 16 Orig < Recheck 84 38 146 94 137 120 Orig > Recheck 90 30 122 80 112 136

Intertek RE % -0.06 0.36 0.09 -0.04 0.33 0.01


Figure 22: Graphs of Laboratory Internal Recheck Assays


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Plots of rechecks done by McPhar and Intertek laboratories showing excellent correlation, R² = 0.99 on Ni, Co, Fe, Mg, Al and SiO2. McPhar reanalyzes every 10th sample while Intertek reanalyzes every 20th. Both laboratories run rechecks on samples with anomalous nickel values. Another internal control of Intertek Laboratory is the analyses of 267 split sample representing 6.8% of the 3,924 mainstream samples. The plotted original values versus split sample assay values in Figure 23 show excellent correlation for all element tested with R² = 0.99. Figure 23: Graphs of Laboratory Internal Split Sample Analysis


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Plots of split sample analyses carried out by Intertek laboratory show excellent correlation, R² = 0.99 on all the elements tested. 15.4 Results of External Check Assays (MRL) MRL has also set up its own QA/QC protocols vis-à-vis the laboratories’ sample preparation and analytical procedures, which the author has observed in the field. 15.4.1 Nickel Standards As a double check on the precision of the analytical procedures of both Mcphar and Intertek laboratories, nickel standards are being inserted by MRL for every 45 samples on the average. A total of 202 nickel standards, representing 3.06 % of the 6613 core samples were sent. These standards were purchased from Geostats Pty. Ltd of Australia. Twelve types of standards were used for the whole drilling course to date, with grade ranging from 0.11 to 2.00 % nickel. Figure 24 shows graphical representations of the standards for nickel. The acceptable limits of each standard is shown in red shaded area with the red line indicating the mean value and the top and bottom of the shaded area as the 2 standard deviation upper and lower limits. Generally, the external standards submitted by MRL fell within two (2) standard deviations from the accepted mean. Only 13 out of 202 standards plotted outside the acceptable range, seven of which are the standard GBM 903-2. Both laboratories gave results outside the acceptable range for this particular standard. The source of error may be the laboratory analysis or the type of standard. In summary, the external standards suggest that the analyses in both laboratories are suitably precise.


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Figure 24: Graphs of Nickel Standards Assays.


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Plots of the assays of the inserted nickel standards vis-à-vis the acceptable limits. In addition to inserting nickel standards, a check on the sample preparation and analysis procedures of Mcphar and Intertek was done by MRL by sending check samples for assaying, to both Mcphar and Intertek. These samples include field duplicates, coarse rejects and pulp rejects. 15.4.2 Field Duplicates The analytical reproducibility of field duplicate samples is a measure of the representativity of the original split of the sample, a check on the reliability of the sample reduction procedure (splitting) undertaken by MRL at the drill rig site. The field duplicates were sent together with the regular core samples for assaying except for 5 samples that were dispatched separately (Batch 2008 AGL-16). A total of 223 core field duplicates (3.37%) were analyzed. Of these, 134 were analyzed by Mcphar (1 in 20 cores) while 89 duplicates were by Intertek (1 in every 40 samples). In analyzing the correlation between the original and duplicate sample, the relative difference (RD) was computed as follows: (a – b) RD = ________ x 100

a Where: a - is the original sample analyzed at McPhar;

B - is the duplicate sample analyzed at McPhar; and RD - is the percentage relative difference.


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Table 14: Relationship of Field Duplicate and Original Assays McPhar

Ni % Co% Fe% Al% Mg% SiO2,% RD % -1.72 1.14 0.16 -0.72 -0.84 -1.54 Orig = Recheck 18 66 0 58 9 1 Orig < Recheck 77 36 70 26 62 79 Orig > Recheck 39 32 64 50 63 54

Intertek RD % 0.62 -0.04 -0.94 -0.70 0.75 1.54 Orig = Recheck 13 18 0 2 0 0 Orig < Recheck 38 34 41 41 45 50 Orig > Recheck 38 37 48 46 44 39

Table 14 presents the results. A value of zero means the two values are equal, a negative value means the recheck is higher, while a positive value means the original is higher. Another measure of correlation is the R2, shown in each graph. All RDs are within highly acceptable limits, with values ranging from 0.16% to 1.72% (absolute) for Mcphar and 0.04% to 1.54% for Intertek. A slight bias was observed for Al wherein more of the original assays are lower than the assays for field duplicates.

High correlation can be observed in Figure 25, the graphical representation of the procedure, with R² ranging from 0.956 to 0.997 for the six different elements. These plots indicate that the splitting procedure of MRL was acceptable. Figure 25: Graphs of Field Duplicate Assays


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Plots of the field duplicate samples analyzed show good correlation, with R² ranging from 0.956 to 0.997 for the six different elements. 15.4.3 Coarse Rejects The reanalysis of the coarse reject samples was undertaken as an internal check on the crushing and sub-sampling procedures of McPhar to ensure that the samples taken for analysis were representative of the bulk sample.


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Table 15: Relationship of Coarse Rejects and Original Assays McPhar

Ni % Co % Fe % Al % Mg % SiO2 % RE % 0.69 -0.38 2.20 -3.23 -1.44 -0.68


Intertek RE % -0.10 0.87 -0.07 0.07 0.13 -0.08


(a – b) RE% = _____________________ x 100

0.5 * (a + b) Where: a - is the original sample analyzed;

b - is the duplicate sample analyzed The Relative Percentage Error (RE%) for Ni, Co and SiO2 is well below 1% showing consistent and high precision repeatability (Table 15). RPEs for, Fe, Al and Mg are below 5% showing relatively high repeatability. Negative values indicate that the repeat analysis is higher. This relationship is further illustrated in Figure 26. Figure 26: Graphs of Coarse Duplicate Assays


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Graphs showing the excellent correlation between original assay values and reanalysis of the coarse reject samples for all elements analyzed by Intertek (R² = 0.99), and Co shows good correlation (R² = 0.98). There is also excellent correlation in samples from Mcphar where Fe, Mg and SiO2 have R² = 0.99, while good correlation was observed for Ni, Co and Al (R² = 0.98). 15.4.4 Pulp Rejects Analyzed by Primary Laboratory A total of 30 of the McPhar pulp rejects during the first and second drilling phases were re-sampled and analyzed. This represents 1.07% of the 2,793 core samples. These were selected from previously


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submitted batches and were selected to cover a range of sample grades, a range of horizons and a range of holes from the core drilling programs, so as to be representative of all the samples. The method of pulp reject sampling for Intertek Laboratory was modified in June 2008. Starting with batch 2008 AGL-18, pulp rejects were randomly selected one in every set of 40 and were pre-numbered. These pulps were inserted to its assigned numbers right after sample preparation and were analyzed in the same batch as its source. A total of 122 pulp rejects (3.11 %) were inserted out of 3,924 samples analyzed in Intertek. The duplicate pulp analyses were conducted to test for homogeneity of the pulps generated by the two laboratories. Insufficiently milled samples will lead to multiple assaying of pulps with poor precision (i.e. poor repeatability). Inversely, agreement between assays of duplicates of the pulp would indicate that the milling procedure in the laboratory was efficient and generated a suitably homogeneous pulp. As shown in Figure 27, there is good correlation between the assays of pulp rejects and the original values. R² ranges from 0.974 -0.999, which means that pulps generated are consistent. Figure 27: Graphs of Pulp Rejects analyzed by Primary Laboratory


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The graphs of duplicate pulps analyzed by both McPhar and Intertek show good correlation with R² ranging from 0.974 -0.999 . This procedure proves that pulps generated by the two laboratories are homogenous. 15.4.5 Pulp Rejects Analyzed by Umpire Laboratory A total of 54 pulp rejects generated by Mcphar in 2007 were sent by MRL to Australian-owned Intertek Testing Services [ITS], an internationally reputed laboratory in Jakarta, Indonesia for assay. Intertek-Jakarta is the only ISO 17025-accredited mineral laboratory in Indonesia. The analytical procedure conducted by Intertek was by the use of XRF. The results show a high correlation between McPhar’s original assay and that of Intertek for the pulps. For 2008, six pulp rejects generated by McPhar were sent to Intertek Phils. for cross analysis, while 103 pulp rejects representing 2.62 % of pulps from Intertek were sent to Mcphar. Figure 28 shows the graphs of the inter-laboratory duplicate analyses.


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Figure 28: Graphs of Pulp Rejects Analyzed by Umpire Laboratory

McPhar original results plotted against Intertek rechecks. The inter-laboratory agreement on the pulp sample is high (R² = 0.994 for Ni). Intertek original results has a good correlation with Mcphar rechecks with R2 ranging from 0.93 – 0.98.


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In the writer’s opinion the sampling methods performed by MRL, and their implementation are of acceptable standards. Assays performed at the McPhar and Intertek in Metro Manila, are also of acceptable standards. Variations encountered by the McPhar and Intertek QA/QC program on the Agata samples were within acceptable limits. 16.0 DATA VERIFICATION The writer, in his visits to the field, drill sites and Manila Office of Mindoro carried out data verification. The actual drilling, core handling and sampling activities were observed during the first two visits in July 2007 and January 2008. During these observations, the author observed how the MRL staff use/complete the Drilling Activity, Borehole Recovery and Sample Preparation sheets. The author also evaluated the security of the cores/core boxes in the storage facility at Bgy. E. Morgado MRL Camp during and after the drilling activities. On all three field visits, drill hole collars were viewed and the locations of selected holes were verified by use of a Magellan GPS. The location and general topography of the area were likewise examined during the visits. Furthermore, a comparison was made between the generated topographic map and a Google Earth image of the site. Both checks confirm the MRL data. Three of the NAMRIA tie/reference points mentioned in Table 6 were sighted along the National Highway. The datasets provided by Mindoro were also checked and verified by comparing a random portion against original field sheets and official Certificates of Analytical Results. Selected core trays were visually inspected against the logs. In addition, the core photos were viewed and compared with the cross sections showing laterite horizons generated by MRL. The lithology was checked in the field and in the drill cores. The digital file was checked for logical errors or data entry errors. There were a few but very minor errors found. The random checks made in the field corroborate the acceptable quality of the data. As a further test, the author collected twelve field duplicate samples and sent them to the same laboratory where they were originally assayed. Five samples come from the limonite horizon, six are from the saprolite and one from the saprolitic rock horizon. The following table and figure show the results and the correlation vis-à-vis original MRL assay values.

Table 16: Results of Independent Check on Drill Core Assays

HOLE ID FROM TO RUN MRL Ni %

DMC Ni %

MRL Co %

DMC Co %

MRL Fe %

DMC Fe %

MRL Al %

DMC Al %

MRL Mg %

DMC Mg %

AGL 2008-281 1.00 2.00 1.00 1.46 1.43 0.09 0.09 38.94 39.75 2.45 2.64 1.07 1.13 AGL 2008-355 2.00 3.00 1.00 1.02 0.91 0.07 0.07 30.47 31.55 2.57 2.61 2.28 1.44 AGL 2008-175 2.60 3.45 0.85 1.59 1.58 0.05 0.05 23.32 23.60 0.74 0.66 10.51 10.32 AGL 2008-194 6.00 7.25 1.25 0.92 0.95 0.03 0.03 15.22 15.89 0.71 0.69 12.93 12.64 AGL 2008-174 3.40 4.20 0.80 1.31 1.35 0.03 0.03 14.45 15.25 0.46 0.45 15.57 15.63 AGL 2008-297 8.00 9.00 1.00 1.27 1.25 0.14 0.13 52.05 50.62 3.88 3.36 0.36 0.42 AGL 2008-299 1.00 2.00 1.00 1.20 1.32 0.14 0.13 47.57 44.50 1.82 1.69 2.75 3.89 AGL 2008-355 2.00 3.00 1.00 0.87 0.92 0.03 0.03 14.24 14.64 0.52 0.55 15.89 15.65 AGL 2007-17 27.00 28.00 1.00 1.33 1.31 0.02 0.02 6.38 8.14 0.11 0.21 15.02 17.24 AGL 2008-135 5.55 6.45 0.90 1.03 1.12 0.12 0.11 50.10 50.73 2.46 2.12 0.71 0.77 AGL 2008-74A 17.40 18.40 1.00 0.46 0.51 0.01 0.01 5.40 6.07 0.15 0.16 14.66 15.43 AGL 2008-14A 13.55 14.85 1.30 0.80 0.97 0.02 0.02 8.48 10.20 0.16 0.19 14.53 15.15

* DMC - Dallas M. Cox


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Figure 29: Comparison of Independent Checks and MRL Assays

The graphs show good correlation between the MRL assays and that of the author’s samples. This is attested by the values of the coefficient of determination R2, which range from 0.947 for nickel to 0.996 for iron. The MRL QA/QC sampling and results were analyzed to enhance the degree of confidence on the assay dataset. The details of the laboratory QA/QC programs and check assaying procedures and results are presented in Item 15. The writer has verified drill hole locations, sampling and assay procedures, examined mineralized material in the field and in drill core, as well as the geological and assay databases during his various site visits in the Agata Project and meetings with MRL staff. With these factors, as well as the evaluation of the results of assay rechecking, the writer is satisfied that all data can be relied upon. 17.0 ADJACENT PROPERTIES The Tapian-San Francisco and Tapian Main properties have high potential for the discovery of both porphyry Cu-Au style mineralization at depth and epithermal style mineralization at shallower levels.


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17.1 Tapian-San Francisco Property: The Tapian-San Francisco property comprises claim blocks under one MPSA, two Exploration Permits and two EP Applications (MPSA-033-95-X, EP No. 016-XIII, EP-022-XIII, EPA-106-XIII, and EPA-088-XIII). It has very high potential for the presence of a porphyry Cu-Au system on the property associated with extensive IP chargeability anomalies that underlie surficial zones of high-resistivity, widespread Cu and Au anomalism, surface artisanal workings, widespread hydrothermal alteration, and mineralization. This is located in extremely favorable structural location near the Philippine Fault, cut by cross-faults extending from Boyongan and Bayugo porphyry Cu-Au deposits 8km to NE. (Figure 30) 17.1.1 Gold Hill [C5] Gold Hill Target demonstrates a crude circular-shaped strong chargeability anomaly covering 600m by 500m that is probably part of a much more extensive chargeability anomaly [sulphides] at depth. It is capped by resistivity anomaly. It is underlain by andesitic volcanics with limestone and intrusive dikes and is proximal to a large intrusive complex. Prevailing alteration is pervasive high temperature propylitic alteration with areas of strong argillic alteration [and phyllic?]. This is an area of historic artisanal gold mining that contains abundant epithermal Au-Cu showings and high-grade, massive sulphide/precious metal prospect and has coincident strong Cu-Au-arsenic (As)-Pb-Zn soil anomalies. 17.1.2 Cantikoy (C6) Cantikoy Target exhibits a crude “pear-shaped” strong chargeability anomaly over 600m by 500m that is probably part of a much more extensive chargeability anomaly [sulphides] at depth. Further, it is capped by resistivity anomaly. It is underlain by andesitic volcanics with multi-phase intrusive stocks and dikes. High temperature propylitic alteration with structurally-controlled zones of intense phyllic alteration and localized potassic alteration are prevalent. It contains overprinting epithermal mineralization as well as porphyry-related Cu-Au mineralization. The latter was located in several areas including a trench of 25m at 1% Cu and 0.5 g/t Au. This is supported by extensive strong coincident soil Cu-Au-Zn soil anomalies. 17.1.3 Canaga (C9) An arcuate-shaped strong chargeability anomaly over 400m by 300m, that is probably part of a much more extensive chargeability anomaly [sulphides] at depth and flanked by resistivity anomalies, characterizes the Canaga Prospect. Its rock suite includes dominantly recrystallised limestone and andesitic volcanics with high-temperature propylitic alteration. Multi-phase intrusive stocks and dikes nearby exhibit phyllic and potassic alteration. Porphyry-related Cu-Au mineralization is associated with volcanics and intrusives, including a trench assaying 15m at 1% Cu. This is likewise supported by coincident soil Cu-Au soil anomalies. In 2006, a reconnaissance drilling program was carried out at C6 and C9 and 3 drill holes for a total of 1,176m completed. The drilling intersected a series of narrow monzonite, monzonite porphyry, diorite porphyry, porphyritic dacite, and porphyritic andesite intrusive sills/dikes, with potassic alteration and chalcopyrite / magnetite mineralization in places; the sills dip east. This is interpreted as a porphyry Cu-Au system that lies several hundred meters to the east.


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Figure 30: Tapian-San Francisco Compilation 17.1.4 Waterfalls (C1) Waterfalls Prospect is characterized by coincident strong chargeability and resistivity anomaly over 800m by 600m, further supported by coincident stream sediment Au-Cu-As-Zn anomalies. The area is underlain by dominantly recrystallised and silicified limestone and ultramafics and strongly propylitized andesite with localized argillic and phyllic areas. Old adits were observed to follow gold and base metal veins. 17.2 Tapian Main Property The Tapian Main property comprises mining claim blocks that collectively form part of the same tenement (EP No. 016-XIII) as that of the Tapian-San Francisco property plus EP No. 018-XIII, known as the Tapian-Torino claims. It has potential for definition of a shallow epithermal resource along the Rosario and Samson zones and their possible extensions. A newly-defined porphyry target at Tapian Main adjoins and lies at depth to the west and southwest of the Mt. Tapian prospect, and may be linked by a feeder structure to the zones of surficial Cu and Au geochemical anomalism that lie at shallow levels along its eastern margin at the Mt. Tapian prospect. It is located in a favorable structural setting near the Philippine Fault and cross-faults. (Figure 31)


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This prospect is characterized by a partially-defined chargeability anomaly covering 1km by 1km with flanking resistivity anomaly. Dominantly andesitic volcanics with limestone, ultramafics and multi-phase intrusive comprise the underlying rock units. These rocks are affected by extensive propylitic alteration with scattered narrow argillic zones. A porphyry Cu-Au target is interpreted at depth. Extensive historic mining of epithermal gold is prese1nt in the area. A pre-WW2 gold mine with extensive underground workings where grade production is recorded as 8.3 g/t Au. Extensive Au soil anomalies were defined in the area. 17.3 Tapian Extension 17.3.1 Bolobolo Reconnaissance work located extensive porphyry-related alteration [phyllic] in andesitic volcanics, as well as widely distributed calc-silicate boulders grading in the 1% Cu range in the Bolobolo Target. Bolobolo catchment is underlain by schists. At the prospect area, the mineralization is hosted by talc chlorite schist overlying a thick calc-schist. The talc chlorite schist contains dark colored serpentinite rich layers whose fragments are flattened along the primary foliation. The primary foliation hosting the mineralization trends 75˚ and dips about 10˚ to the south. A possible secondary foliation (S2) trends 275˚ azimuth, and dips 20˚ northwards. (Buenavista, A.G., 2008) The mineralization on the schist is typically fine grained and appears to be smeared along the foliation plane. Primary sulfides are chalcopyrite and bornite, and associated with hematite and some magnetite. The mineralization can be traced for about 100 meters along the schist layer. (Buenavista, A.G., 2008) 17.4 Other Nickel Laterite Prospects: Recent reconnaissance geological mapping has expanded the global nickel laterite resource potential of Mindoro. Results of the regional mapping program indicate potential for additional nickel laterite mineralization on the adjacent Tapian Main, Tapian SF and Mat-I tenements (Figure 7). The presence of lateritic soils is manifested by the development of thick, purple-colored clayey soils over favorable ultramafic rocks. Based on the mapping alone, there is no guarantee that nickel grades and thickness will be of commercial interest. Accordingly, a program of reconnaissance auger drilling was carried out to give a preliminary indication of nickel content and laterite thickness. This indicated several areas warrant follow-up drilling to establish potential mineral resource. Also found within the Surigao District are producing nickel laterite mines such as Hinatuan, Taganito and the SRMI Mines, which lies a few kilometers south of the Agata Projects of Mindoro. These mines are providing direct shipping grade ore to markets and processing plants in China, Japan, Korea and Australia. There are also plans to put the large Nonoc nickel laterite deposit back into production. This is located in an island just to the north of Surigao City.


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Figure 31: Tapian Main Compilation Map 18.0 MINERAL PROCESSING AND METALLURGICAL TESTING Initial metallurgical testing was carried out in between March 2008 and August 2008. A batch of six samples weighing 25 kilos each taken from test pits in ANLP was dispatched to En Lin Steel Phils. Corp. in the Cavite Economic Zone, Cavite, Philippines for initial pressure acid leach tests. En-Lin is a commercial facility producing high quality stainless steel products. It is the only nickel steel mill in the Philippines. En Lin, while it has a proficient hydrometallurgical laboratory, is a non-accredited laboratory with respect to NI 43-101 compliant standards, and hence are not reported herein. It is not considered that these results are material under current market conditions. 19.0 MINERAL RESOURCE ESTIMATE

19.1 Data Set: The data set used as a basis for the resource interpretation, statistical analysis, grade estimation and resource classification was sourced from a Microsoft Excel ® spreadsheet (ANLP_ASSAYS_DATABASE_RAW.xls and AGL_AGT_DHCollar_Nov08.xls date stamped 7 November 2008) provided by MRL in November 2008. The spreadsheets contained collar, survey, assay and lithology data. The data set comprised 408 holes for which assays were available for all 408 holes.


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The data set was reformatted into data tables for import into MineSight ® software and file data and fields are summarized in Table 17.

Table 17: Data Set Table File Record Fields

Collar aglcol.csv 408 DHID,EAST,NORTH,ELEV,LEN Survey aglsrv.csv 408 DHID,FROM,TO,AZI,DIP Assays & Lithology aglass.csv 7,292 DHID,FROM,<ASSAYS>, LITH, ZONE

The Assay elements <ASSAYS> imported from the data set were Ni, Co, Fe, Al, Mg, P, SiO2, P2O5, CaO, Cr2O3, K2O, LOI, MnO, Na2O and TiO2 expressed as %. All holes were drilled vertically. No downhole surveys were carried out. This is acceptable due to relatively short length of the drillholes. Table 18 tabulates drillhole statistics.

Table 18: Drillhole Summary

# Drilled m

Minimum M

Maximum M

Mean m

Median m

408 7,300.83 4.4 46.6 17.9 17.0 19.2 Raw Assay Statistics: Preliminary statistical analysis on raw assays was carried out on 408 drillholes. The large variance in Iron grades is a function of the grouping of Limonite and Saprolite assays. Further analysis on assays was carried out after the resource was domained and composited assays coded into geochemical Limonite and Saprolite domains.


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Table 19: Raw Assay Statistics

Cutoff Ni%

Assays #

Above Cutoff %

Grade Item

Grade

Std Dev Item Grade

% 0.5 4598 100 Ni % 1.04 0.38 Co % 0.055 0.056 Fe % 24 17

0.6 4165 91 Ni % 1.09 0.36 Co % 0.058 0.058 Fe % 24 17

0.7 3723 81 Ni % 1.14 0.34 Co % 0.06 0.06 Fe % 24 17

0.8 3191 69 Ni % 1.21 0.33 Co % 0.061 0.063 Fe % 24 17

0.9 2696 59 Ni % 1.28 0.31 Co % 0.062 0.065 Fe % 23 16

1.0 2192 48 Ni % 1.35 0.30 Co % 0.061 0.067 Fe % 22 15

1.1 1754 38 Ni % 1.43 0.28 Co % 0.06 0.069 Fe % 20 14

1.2 1390 30 Ni % 1.51 0.27 Co % 0.059 0.07 Fe % 19 13

1.3 1076 23 Ni % 1.58 0.26 Co % 0.059 0.071 Fe % 19 12

1.4 785 17 Ni % 1.67 0.25 Co % 0.057 0.071 Fe % 19 12

1.5 598 13 Ni % 1.74 0.24 Co % 0.055 0.067 Fe % 18 11

1.6 420 9 Ni % 1.83 0.24 Co % 0.05 0.06 Fe % 18 10

19.3 Compositing: On reviewing the assaying intervals of the raw assay data, the data set was composited into 1 metre downhole composites, with small interval merging constraints.


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Table 20: Compositing Data

The composite assay file was coded with a ZONE code to honour the domain solids that are described in Section 19.2. Surfaces and Domains. Statistical analysis was carried out on data above the geochemical limonite/Saprolite (Limonite: ZONE 2) and between the geochemical Saprolite/Bedrock contact surfaces (Saprolite: ZONE 4). The results are summarized in Table 23 and Table 24, respectively. Following a review of Frequency Distribution and Cumulative Probability Plots for Nickel composites, it was decided not to apply any top cuts to the composite data set prior to grade estimation, as there were no outliers warranting top cutting. Further evaluation would also involve differentiating geochemical Limonite and Transitional populations, which is indicated to some degree by the skewness in the currently modelled Limonite subset.


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Table 21: Frequency Distribution Plots Ni%


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Table 22: Cumulative Probability Plots Ni%


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Table 23: Limonite Composite Statistics

Cutoff Ni%

Assays #

Above Cutoff %

Grade Item

Grade

Std Dev Item Grade

% 0.5 1686 100 Ni % 0.96 0.30 Co % 0.105 0.062 Fe % 45 6

0.6 1573 93 Ni % 0.99 0.28 Co % 0.108 0.063 Fe % 45 6

0.7 1370 81 Ni % 1.04 0.27 Co % 0.113 0.065 Fe % 45 7

0.8 1129 67 Ni % 1.10 0.26 Co % 0.119 0.068 Fe % 44 7

0.9 909 54 Ni % 1.16 0.25 Co % 0.125 0.071 Fe % 44 7

1.0 647 38 Ni % 1.25 0.24 Co % 0.135 0.077 Fe % 43 7

1.1 433 26 Ni % 1.36 0.23 Co % 0.149 0.084 Fe % 42 8

1.2 307 18 Ni % 1.45 0.22 Co % 0.155 0.091 Fe % 41 8

1.3 210 12 Ni % 1.54 0.21 Co % 0.161 0.097 Fe % 39 8

1.4 149 9 Ni % 1.62 0.20 Co % 0.162 0.104 Fe % 38 9

1.5 108 6 Ni % 1.69 0.19 Co % 0.151 0.109 Fe % 37 9

1.6 64 4 Ni % 1.79 0.19 Co % 0.140 0.111 Fe % 36 9


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Table 24: Saprolite Composite Statistics

Cutoff Ni%

Assays #

Above Cutoff %

Grade Item

Grade

Std Dev Item Grade

% 0.5 1804 100 Ni % 1.26 0.35 Co % 0.029 0.020 Fe % 12 6

0.6 1761 98 Ni % 1.28 0.33 Co % 0.029 0.020 Fe % 12 6

0.7 1727 96 Ni % 1.29 0.32 Co % 0.030 0.020 Fe % 12 6

0.8 1653 92 Ni % 1.32 0.31 Co % 0.030 0.020 Fe % 12 6

0.9 1554 86 Ni % 1.35 0.30 Co % 0.030 0.020 Fe % 12 5

1.0 1465 81 Ni % 1.37 0.29 Co % 0.030 0.020 Fe % 12 5

1.1 1236 69 Ni % 1.43 0.27 Co % 0.031 0.020 Fe % 13 5

1.2 1005 56 Ni % 1.50 0.26 Co % 0.031 0.021 Fe % 13 5

1.3 778 43 Ni % 1.57 0.25 Co % 0.033 0.021 Fe % 13 6

1.4 560 31 Ni % 1.66 0.23 Co % 0.033 0.022 Fe % 14 6

1.5 421 23 Ni % 1.74 0.23 Co % 0.034 0.022 Fe % 14 5

1.6 304 17 Ni % 1.81 0.22 Co % 0.034 0.020 Fe % 14 5

19.4 Surfaces and Domains: The composited data set was interrogated visually and statistically to determine a geochemical Iron (Fe) cutoff grade in order to determine a geochemical limonite/saprolite contact. There exists a very dramatic change in Fe grades within 1m below the occurrence of 30 Fe% in the downhole profile. The points generator tool within MineSight ® DH View was used to establish points at the bottom-of-sequence occurrence of 30 Fe%. The limonite contact points were set at the hole collar where no downhole assays of above 30 Fe% were encountered. Points were used to generate a geochemical limonite/saprolite contact surface.


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The geochemical technique to determine limonite was chosen, to be consistent with proposed sub-domaining of Limonite ore in future resource studies in respect to generating Transitional ore domains using downhole multi-element geochemical criteria. The points generator tool within MineSight ® DH View was also used to determine top-of-sequence occurrences of 0.5 Ni% and 0.8 Ni % above the limonite/saprolite contact, and bottom-of-sequence occurrence of 0.8 Ni% in each drillhole. There is an abrupt change (drop) in Nickel grades below 1.2 Ni% at the base of the laterite profile. The 0.8 Ni % (bottom-of-sequence occurrence) bedrock cut-off grade for the Saprolite domain was chosen to account for the influence of footwall wall dilution given the block size selected for resource estimation discussed in Section 19.7. Block Modelling and Grade Estimation. The Limonite/Saprolite surface and the 0.5 Ni% top and 0.8 Ni% bottom surfaces were used to generate four domains. These surfaces were subsequently used to generate domain solids. Saprolitic rock composites above 0.8 Ni % were excluded from surface domaining, statistical analysis and mineral resource estimation pending future variographic studies.

Table 25: Domain Coding Geochemical Fe% & Ni% cutoff domains

Domain Code ZONE Fe% Ni%

Overburden 1 >= 30 < 0.5 Limonite 2 >= 30 >= 0.5 Saprolite 4 <30 >= 0.5 Bedrock 5 <30 < 0.8

The domain solids were subsequently used to code the block model and to restrict grade estimation by using only composites that lay in the respective domains. For the purpose of this study, no distinction was made between upper and lower limonite. Figure 32: Domain Surfaces and Composite Coding


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19.5 Data Manipulation: The Limonite/Saprolite contact surface was subsequently used to generate relative elevation items in both the composite file and the block model. The MineSight ® Assign Relative Elevation/Distance procedure was used to “unfold” the data by using the Limonite/Saprolite contact surface as the reference surface. In general terms, Nickel grades in the Limonite horizon, generally increase and peak at a point about the base of the Limonite. Nickel grades remain respectively high and thereafter diminish as the ore grades into basement/bedrock. Unfolding to this surface ensures that Nickel grades in both Limonite and Saprolite are preferentially honoured in the mid section of the laterite profile which represents a greater proportion (50+%) of the deposit. 19.6 Specific Gravity, Bulk Density and Moisture Content: The Specific Gravity for Limonite and Saprolite has been set at 1.24 and 1.52 respectively, for the mineral resource estimates.

Table 26: Specific Gravity Parameters

Domain Name Domain Code ZONE

Specific Gravity Dry Density

Ferruginous Laterite 1 1.24 Limonite 2 1.24 Saprolite 4 1.52 Bedrock 5 1.80

In situ bulk density is vital in evaluating the resource tonnage. Two methodologies were undertaken by Mindoro for the determination of Bulk Density (BD). For the ferruginous laterite and limonite horizons, bulk samples were collected from test pits and measured on site. The same procedure was done for the saprolite zone but was supplemented with another method, i.e., the collection and measurement of drill core samples. For BD measurements done on site, large samples ranging in volume from 0.005 m3 to 0.08 m3 were collected from twenty test pits. The locations of these test pits are distributed around the drilling area (Figure 33). The bulk samples were measured for volume, wet weight, and dry weight. The description of the methodology is detailed in the ANLP QA/QC Procedures (Appendix 4) The BD and moisture content were computed with the following formulas.

Weight (kg) Bulk Density = _______________ ÷ 1000 (kg/ton) Volume (m3)

Weight wet – Weight dry % Moisture Content = __________________ x 100

Weight wet

For the drill cores, relatively solid/uncrumpled portions of 10cm-20cm lengths were selected from drill holes and coated in paraffin wax to preserve the moisture. These were then dispatched to McPhar Laboratories wherein the samples were measured using the water displacement method. It is standard practice for Mcphar to check the wax coating and perform re-waxing if needed.


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Figure 33: Agata North Test Pit Location Map

19.7 Block Modelling and Grade Estimation: The lateral block dimensions were originally selected at 12.5m or ¼ of the drillhole spacing of the greater part of the drilling program. This was reduced to 10m laterally to be relative to the proposed grade control drilling program/sampling program (5m x 5m) when the project moves into production phase. Vertical block dimension was set at 1.5m, which is the minimum anticipated mining selective mining bench height. Figure 34: Block Model Configuration


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The MineSight ® IDW Interpolation procedure was used to interpolate Nickel, Cobalt, Iron and Phosphor grades. Inverse Distance Weighting (IDW) Power 2 was used for grade estimation. This method was considered acceptable given the tight constraints applied to limonite and saprolite domaining. Grades were interpolated in Limonite and Saprolite domains only. The transformed composited data set was used for grade estimation in order to generate block grade estimates that would honour the undulating lateral spatial position of composited assays within the laterite profile. Block grade estimation was constrained by coded composites in the respective domains. Figure 35: Block Model Cross Section (N1027590)

Blocks were coded as Measured, Indicated and Inferred (else undefined) according to the distance to the nearest sample in the grade estimation process. Distances used for mineral resource classification are considered conservative and may be expanded following a future variographic study.


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Figure 36: Block Model Classification

A cursory variographic review of Nickel, Cobalt and Iron composite data from the September 2008 data set showed a low nugget effect for all elements, which supports not top cutting the dataset. The variograms used spherical models and two structures and were generally robust on a combined composite dataset. Variograms on limonite and saprock datasets showed acceptable variograms. The Nickel variograms showed a slight anisotropy with better correlation N-S than E-W. A conservative approach was taken in respect to the use of short and long range structures as method for resource estimation confidence. Resource classification methodology for Limonite was based on the spacing as denoted in Table 27. Planar and elevation search ellipses for Saprolite were reduced by 1/2 to 1/3 of the limonite search ellipse parameters given the undulating sparolite/bedrock contact and laterally erratic nature of metal grades in the saprolite domain. There is upside potential to increase indicated and inferred ore category tonnages following favourable outcome from a future variographic study, in conjunction with the analysis of the results of twinning diamond holes and test pits, to increase search ellipse parameters and domain extents.

Table 27: Mineral Resource Classification

Classification Code

Search Ellipse (Planar, Elevation) Minimum

Samples Maximum Samples Spacing

LIMONITE SAPROLITE m m # # m

AREA A Measured 1 <30,<30,<3 <20,<20,<3 3 15 50x50 Indicated 2 <100,<52,<3 <52,<52<3 3 15 100x50 Inferred 3 <150,<104,<4 <100,<52,<4 3 15 100x100

AREA B Measured 1 - - - - - Indicated 2 <100,<52<4 <52,<52<3 3 15 100x100 Inferred 3 <150,<104,<4 <100,<52,<4 3 15 200x200


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Table 28: Mineral Resource Estimation by Classification Classification Laterite Horizon Mil DMT Mil WMT Ni % Co % Fe %

Measured LIMONITE 1.25 1.92 1.00 0.107 43.80 SAPROLITE 0.30 0.37 1.26 0.023 10.00

Subtotal 1.54 2.29 1.05 0.091 37.32

Indicated LIMONITE 4.27 6.57 1.02 0.117 44.70 SAPROLITE 3.45 4.31 1.29 0.025 11.00

Subtotal 7.72 10.88 1.14 0.076 29.65 Measured & Indicated

LIMONITE 5.52 8.49 1.02 0.115 44.50 SAPROLITE 3.74 4.68 1.29 0.024 10.92

Total 9.26 13.17 1.13 0.078 30.93

Inferred LIMONITE 7.71 11.87 1.02 0.121 44.40 SAPROLITE 4.99 6.23 1.32 0.025 11.40

Total 12.70 18.10 1.13 0.083 31.44 20.0 OTHER RELEVANT DATA AND INFORMATION There are no other pertinent data. 21.0 INTERPRETATION AND CONCLUSIONS Widespread occurrence of serpentinized harzburgite, serpentinized peridotite, serpentinites and localized lenses of dunite comprise the lithology in the Agata Projects area. Nickeliferrous laterite mineralization is present over a broad region in both the ANLP and the ASLP areas. The former has an area of approximately 286 ha while the latter comprises about 235 ha. There are two distinct geomorphic features that have influenced laterite formation and consequent nickel enrichment in the Agata Project. The Eastern part of the delineated body has a moderate relief whose bedrocks are exposed in ridgetops and in the nearby creeks. The Western laterite occurs on a low relief terrain and with no exposures of bedrock on its hillcrests. In the Western area, the laterite is well developed and contains thick and highly mineralized limonite/saprolite and transition rocks. The Eastern Laterite Zones contain some boulders within the laterite profile. Its limonite zone is usually thinner. The laterite profile in the ANLP consists of the ferruginous laterite, limonite and saprolite zones or horizons, and the saprolitic rock, from surface to increasing depth. The limonite zone is characteristically iron oxide-rich, where the predominant minerals are hematite, goethite and clays, and with moderate nickel content (over 1%), while the saprolite zone has much less iron-oxide, is magnesium-rich, and has a slightly higher nickel content than the limonite horizon. This report is based on the data that were produced and compiled by MRL. Data verification performed by the author found no discrepancies. Hence the database is considered adequate to meet industry standards to estimate mineral resources. Work on mineral resource estimation yielded the following:

• Preliminary statistical analysis on raw assays was carried out on 408 drillholes. The large variance in iron grades is a function of the grouping of Limonite and Saprolite assays.


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Further analysis on assays was carried out after the resource was domained and composited assays coded into geochemical Limonite and Saprolite domains.

• Raw Assay data was analyzed above a cut-off grade of 0.5 Ni% for the limonite 0.8 Ni% for the saprolite.

• The MineSight ® IDW Interpolation procedure was used to interpolate Nickel, Cobalt, Iron

and Phosphor grades. Inverse Distance Weighting (IDW) Power 2 was used for grade estimation. This method was considered acceptable given the tight constraints applied to limonite and saprolite domaining. Grades were interpolated in Limonite and Saprolite domains only.

• In general terms, nickel grades in the Limonite horizon, generally increase and peak at a

point about the base of the Limonite. Nickel grades remain respectively high and thereafter diminish as the ore grades into basement/bedrock. Unfolding to this surface ensures that nickel grades in both Limonite and Saprolite are preferentially honored in the mid-section of the laterite profile which represents a greater proportion (50+%) of the deposit.

• The Bulk Density for Limonite and Saprolite were measured in places and has been set at

1.24 and 1.52 respectively, for the mineral resource estimates.

• A cursory variographic review of nickel, cobalt and iron composite data from the September, 2008 data set showed a low nugget effect for all elements, which supports not top cutting the dataset. The variograms used spherical models and two structures and were generally robust on a combined composite dataset. Variograms on limonite and saprock datasets showed acceptable variograms. The nickel variograms showed a slight anisotropy with better correlation N-S than E-W. A conservative approach was taken in respect to the use of short and long range structures as method for resource estimation confidence.

• Resource classification methodology for Limonite was based on the spacing as denoted in

Table 27. Planar and elevation search ellipses for Saprolite were reduced by 1/2 to 1/3 of the limonite search ellipse parameters given the undulating sparolite/bedrock contact and laterally erratic nature of metal grades in the saprolite domain.

The summary of results is presented in the following table:

Table 29: Summary of Resource: Combined Limonite and Saprolite

@ 0.5% Ni cutoff grade (Limonite) and 0.8% Ni cutoff grade (Saprolite) Classification Mil. WMT Mil. DMT Ni% Co% Fe%

Measured 2.29 1.54 1.05 0.091 37.32 Indicated 10.88 7.72 1.14 0.076 29.65 Total Meas. + Ind. 13.17 9.26 1.13 0.078 30.93 Inferred 18.10 12.70 1.13 0.083 31.44

• Mineral resources which are not mineral reserves do not have demonstrated economic viability. • The tonnage and nickel grades above have been rounded to the nearest 2nd or 3rd decimal, which may

have resulted in minor discrepancies. • The estimate of mineral resources may be materially affected by environmental, permitting, legal,

title, taxation, socio-political, marketing, or other relevant issues. • It is uncertain if further exploration will result in upgrading the Inferred mineral resource to an

Indicated or Measured mineral resource or the Indicated mineral resource to a Measured Resource category.


86

This program was aimed to drill out the greater part of Agata North resource potential. The resulting resource estimate covers approximately 80 per cent of Agata North and is within the current Exploration Target range of 30 to 40 million WMT at a grade of 0.9 to 1.5 percent nickel and 18 to 28 percent iron. 22.0 RECOMMENDATIONS The author recommends the conduct of metallurgical batch testwork to confirm the optimal applicable technology for processing the nickel laterite resource. Cost would be approximately $80,000. Further variographic studies are recommended. A favorable outcome would allow an increase in search ellipse parameters and domain extents, with the potential to increase indicated and inferred ore category tonnages. Estimate cost is $6,000. A preliminary scoping study is recommended for ANLP, including continuous pilot leach testing to prove the processing concept and to derive the optimal processing flowsheet, and sufficient engineering to obtain operating and capital costs to plus or minus 35%. The scoping study will require from 500 to 2,000 engineering man hours (cost range $150,000 to $600,000.)


87

23.0 REFERENCES Abrasaldo, E.M. 1999. Exploration Report Agata Project June 1997-April 1998. MRL Gold Phils.,

Inc., Internal Company Report (unpubl) Ambagan, D. 2007. Notes on Resource Estimation of Agata Nickel Laterite Project of MRL Gold

Phils., Inc., Internal Report., (unpubl). January 2007. Aurelio, M.A. and Peña R.E. 2002. Geology and Mineral Resources of the Philippines, Volume 1:

Geology. (eds) Aurelio, M.A. and Peña, R.E., Department of Environment and Natural Resources, Mines and Geosciences Bureau, Philippines.

Bailey, D.G. 2003. Surigao Property Group, Northeastern Mindanao, Geology and Exploration

Potential. Bailey Geological Consultants (Canada), Technical Report for Panoro Minerals Ltd. Buenavista, A.G. 2008. Notes on the Geology and Mineralization in the Surigao Western Range.

MRL Gold Phils., Inc. Internal Report, February 2008. Buenavista, A.G. 2008. Geochemistry of the Agata Nickeliferrous Laterite Deposit. MRL Gold

Phils., Inc. Internal Report, May 2008. Cox, D.M. 2008. Independent Geologic Report on the Nickel Laterite Resource at Agata North

Laterite Project Area, Agata Project, Agusan del Norte Province, Northern Mindanao, Phillipines. MRL Gold Phils., Inc., September 2008, rev. Oct 2008.

Climie, J.A., et,al. 2000. Accomplishment Report for the Period: June to December 1999. MRL

Gold Phils., Inc., Internal Company Report (unpubl). January 2000. Climie, J.A., et,al. 2005. Interim Exploration Program Report, Surigao Joint Venture Projects:

March 1 to June 20, 2005. MRL Gold Phils., Inc., Internal Company Report (unpubl). July 2005.

De Luna, R., et.al., 2004. Report on the Reconnaissance Geologic Survey of the Nickeliferrous

Laterite Deposits at Barangay Tapian, Mainit, Surigao del Norte and Barangay E. Morgado, Santiago, Agusan del Norte. Taganito Mining Corp. Report, July 2004.

Elliott, P.J. 2005. Report on IP and Magnetic Surveys Over the: Agata Prospect, San Francisco

Project, Philippines. MRL Gold Phils., Inc. and Panoro Minerals Ltd,, Company Report, June 2005

Fang, E.F.E and C.A. Matilac. 2006. Evaluation of Preliminary Exploration on Agata Nickel Laterite

Prospect of MRL Gold Phils., Inc., QNPH Report, June 2006 Fetiza, I.A. Jr. 1999. Exploration Report: Tapian-San Francisco Project, May 1997 - May 1998.

MRL Gold Philippines Inc. Internal Company Report (unpubl.). Marshall, N.J. 1997. Geological Report on the Agata, Mat-I, Nabago and Tapian Gold Prospects,

Northern Mindanao, Republic of the Philippines. Marshall Geoscience Services Pty. Ltd., Australia.

Mitchell, A.H.G. and Leach, T.M. 1991. Epithermal gold in the Philippines: Island arc

metallogenesis, geothermal systems and geology. Academic Press Geology Series.


88

Rangin, C. 1991. The Philippine Mobile Belt: A complex plate boundary. Journal of Southeast Asian

Earth Sciences, 6 (3/4), pp. 209-220. Rohrlach, B.D. 2005. Independent Geological Report on the Surigao Property Group, Northern

Mindanao, Philippines. MRL Gold Phils., Inc. and Panoro Minerals Ltd., Company Report, April 2005

Sajona, F.G., et.al., 1994. Magmatic response to abrupt changes in geodynamic settings: Pliocene-

Quaternary calc-alkaline and Nb-enriched lavas from Mindanao (Philippines). Tectonophysics, 237(1-2), pp. 47-72.

Sillitoe, R.H. 1988. Geotectonic setting of western Pacific gold deposits. In: M.J. Bartholomew.

D.W. Hyndman, D.W. Mogk, and R. Mason, (eds), 8th International Conference on Basement Tectonics, 8, pp. 665-678. Kluwer Publishers, Butte, Montana.

Tagura, F. et. al. 2006. Comprehensive Report, MPSA-134-99-XIII, Agata Tenement Blocks. MRL

Gold Phils., Inc. Internal Company Report (unpubl.), 2006 Tagura, F. et. al. 2006. Report on the Preliminary Drill Evaluation on Canaga (MPSA-33-95-X),

Malimono, Surigao del Norte. MRL Gold Phils., Inc. Internal Company Report (unpubl.), September 2006

Tagura, F. et. al. 2007. Report on Agata Drilling Program, Agusan del Norte, Philippines (Phase 1

Year 2 Expenditure Period 2005-2006), MRL Gold Phils., Inc. Internal Company Report (unpubl.), January 2007

UNDP. 1984. Geology of Northern Agusan, Mindanao, United Nations Technical Report No. 2,

DP/UN/PHI-79-004/6, New York. UNDP. 1987. Geology and Gold Mineralization of Surigao del Norte, United Nations Technical

Report No. 4, DP/UN/PHI-85-001/4, New York.


89

24.0 DATE AND SIGNATURES

CERTIFICATE OF QUALIFICATION

I, Dallas M. Cox of 52 Somerville Street Bendigo Victoria, Australia 3350, hereby certify that:

1. I am a Professional Mining Engineer employed as a private consultant under a sole trader business registered under Crystal Sun Consulting, with Australian Business Number ABN 28 818 090 933.

2. I am responsible for the preparation of the technical report titled “43-101 Technical Report on the Mineral Resource Estimate for the Agata North Nickel Laterite Project of Mindoro Resources Ltd." and dated January 22, 2009.

3. I am a member in good standing of the Australian Institute of Mining and Metallurgy with membership number 201098.

4. I am a graduate of the University of New South Wales, Kensington with a degree in Mining Engineering.

5. I have practiced my profession for 28 years including 22 years as a degree qualified Mining Engineer. I have been operating as an Independent Consulting Mining Engineer since July 2004.

7. I certify that by reason of my education, affiliation with a professional association (as defined by NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am an independent qualified person as defined by NI 43-101 and by the companion policy 43-101CP to National Instrument 43-101.

8. This technical report is based on my review of available published data and company reports, and personal visits to the property. I have spent in excess of 20 days working on the property and various off-site meetings/consultations with geologists and mining engineers on the property. My visits were on the July 2007, January and November 2008. It is my professional opinion that the Agata Property shows strong development potential and that further exploration of this property is warranted.

10. I have read N.I. 43-101 and Form 101F1. The technical report has been prepared in compliance with both of these documents.

11. I, Dallas Cox, do not expect to receive any interest (direct, indirect or contingent) in the properties described herein, nor in the securities of Mindoro Resources or any of their affiliates. I am independent of the issuer under all criteria of Section 1.5 of National Instrument 43-101.

12. I am not aware of any material fact or material change with respect to the subject matter of this technical report which is not reflected in this report, the omission to disclose which would make this report misleading.

13. I consent to the filing of the Technical report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes. I consent to the filing of extracts


90

from the technical report in the written disclosure which was filed on December 16th, 2008 (the press release). I also consent to the inclusion of parts of the Technical Report as electronic publication on the companies’ websites that are accessible to the public.

14. I have read the written disclosure filed on December 16th, 2008, and do not believe that there area any misinterpretations.

Signed in Manila, Philippines. Dated 22 January 2009

__________________________ Signature of Qualified Person

Dallas M. Cox, BE (Min). AusIMM __________________________ Name of Qualified Person


91

25.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES & PRODUCTION PROPERTIES The Agata Property (MPSA 134-99-XIII) is not a development property as defined by NI 43-101(F1), nor is it a property which is under mineral production. Hence, no further information is needed. 26.0 ILLUSTRATIONS Relevant maps, figures, photos or graphs were inserted in the appropriate sections of this report.

Appendix 1

Notice of Relinquishment of Portion of MPSA 134-99-XIII

Appendix 2

Certified Technical Descriptions for NAMRIA Control Stations

Appendix 3

Agata Project Nickel-Iron Laterite Cross Sections

1.43 /42.18

5.601.30 /8.55

3.20

7.20

1.14 /50.58

1.71 /8.93

0.75 /49.32

0.90

0.701.29 /41.79

7.001.62 /15.37

0.57 /49.87

2.00

4.000.80 /47.63

5.001.41 /11.15

0.53 /46.92

1.00

3.001.02 /49.73

4.001.63 /12.80

0.60 /46.93

2.00

3.00

6.001.41 /11.38

0.53 /44.30

6.00

7.001.24 /51.03Limonite

4.001.31 /15.21

Ferruginous Laterite

Saprolite

Nickel - Iron LateriteCross Section Line 9600N

Approved By:

AGATA PROJECT

MRL GOLD PHILS., INC.

Plan No.:

FIGDate: Nov '08

0

50m

Checked By: JSR

Drafted By: JBM,PDV

Compiled By:

AGL 205

AGL 212AGL 220

AGL 225

12.45m20.95m10m

25.6m21.95m

10700E10600E 10800E 10900E 11000E 11100E

50m

19m

29.3m20.3m 26m

17m

AGL 297AGL 305

AGL 352 AGL 198AGT 44

AGT 43

Ni%

Thickness of intercept

Fe%

200

150

10500E10400E10300E10200E10100E

Saprolite

Limonite

2.001.38 /42.47

AGL 2007-48

Ferruginous laterite

250

Saprolitic rockBedrock

Drillhole number

28m End of hole

Boulder

300m ASL

1.08 /50.63

0.51 /47.15

2.50

1.55 /11.859.95

2.75

0.96 /45.17

0.91 /12.801.15

1.10

0.601.10 /18.80

1.02 /34.864.00

0.65 45.81

1.12 /47.286.85

1.14 /9.879.15

1.60

11.001.45 /19.49

0.83 /53.43 1.33 /42.483.00

4.801.47 /10.40

1.80


0.69 /51.322.90

1.83 /10.7810.00

Limonite

Saprolite

10100E 10200E

50m

50m0

9700E 9800E 9900E 10000E

Plan No.:


Fig.Approved By:

AGATA PROJECT


13.4m

19.3m

AGL-167

18.5m

26.8m

AGL-164

AGL-323

AGL-161

Checked By:

Compiled By:

Drafted By: JBM, PDV Date: Nov '08

21.85m

Ni%

26.95m18.3m 16.5m

15.6mAGL-333AGL-147

AGL-139AGL-303

AGL-154

1.38 /42.472.00


Limonite


Fe%

28m

Drillhole numberAGL 2007-48

End of hole

BoulderSaprolite

Bedrock

Saprolitic rock

150

300m ASL

250

200

9200E 9400E 9600E9500E9300E9100E

0.98 /20.142.008.90

1.33 /44.79

1.09 /8.43

2.151.03 /51.16

1.30 /13.206.50

0.62 /47.20

4.60

2.45

1.16/48.98

12.61

0.70/47.21

1.72/11.00

6.39

2.90

1.22/48.59

0.75/46.88

1.95 /11.442.50

1.50

0.90

1.16/48.86

12.75

0.69/49.20

1.86/13.39

5.10

1.45

1.61 /34.24

0.64/48.37

1.76/16.975.45 16.00

4.95

4.500.68/41.88

1.53/10.19

6.55

7.60

1.33/47.23

0.69/48.09

1.34 /14.13

6.55

2.85

0.95 /49.39

2.50

0.69 /49.00

3.90

4.00

Saprolite 1.13/14.55


Limonite

10500E 10600E10300E 10400E

300m ASL

200

10700E 10800E 10900E 11000E10200E10100E10000E

250

150

19m

AGL-230AGL-230AGL-230AGL-230AGL-230AGL-230AGL-230AGL-230AGL-230AGL-235AGL-235AGL-235AGL-235AGL-235AGL-235AGL-235AGL-235AGL-235

11.1m

23.25m


24.1m21.9m


Date: Nov '08

Checked By:

Compiled By:

Drafted By: JBM,PDV


Plan No.:

Fig.Approved By:

AGATA PROJECT

50m

50m

01.38 /42.47

2.00

AGL 2007-48


Limonite


Fe%

Ni%


AGL-178AGL-178AGL-178AGL-178AGL-178AGL-178AGL-178AGL-178AGL-178

8.2m

24.35m


28.0m

Drillhole number

AGL-136AGL-136AGL-136AGL-136AGL-136AGL-136AGL-136AGL-136AGL-136AGL-133AGL-133AGL-133AGL-133AGL-133AGL-133AGL-133AGL-133AGL-133 AGL-134AGL-134AGL-134AGL-134AGL-134AGL-134AGL-134AGL-134AGL-134

11.65m19.4m 16.0m

28m End of hole

BoulderSaprolite

Bedrock

Saprolitic rock

Plan No.:

AGATA PROJECT



Fig.Approved By: Checked By:

Compiled By:

Drafted By: JBM, PDV Date: Nov '08

50m

50m

0

9900E9800E 10000E 10100E9700E

21.05m

13.15m

AGL-128

AGL-132AGL-130AGL-135

AGL-127

AGL-160 12m

15.5m12.55m

13.25m 18.95m

12m

17.1m

18.5m22m

AGL-156

AGL-143

AGL-137AGL-148

AGL-151

Fe%

Ni%

2.001.38 /42.47

10200E9000E 9600E9100E 9500E9400E9300E9200E

150

300m ASL

250

200


Limonite

Drillhole number

End of hole

BoulderSaprolite

Bedrock

Saprolitic rock

AGL 2007-48


28m

0.97/49.37

0.68/47.30

9.351.59/14.89

2.051.12/47.90

4.40

8.45

0.65/50.57

1.23/11.21

3.60

3.50

7.80

0.70/49.98

1.25/15.76

1.45

2.300.69/50.66

2.901.12/17.23

3.65

1.45

1.10/11.245.55

0.73/49.87

1.55

1.35

2.000.92/47.390.88/48.290.83/32.131.00/48.240.99/48.57

3.701.47/14.01

8.100.95/11.11

1.20

1.00

1.04/42.15

4.501.24/11.41

0.50

0.63/47.010.70/46.19

1.01/48.09

4.801.40/8.98

4.35

0.40

1.02/45.75

0.75/49.20

7.85

1.35

1.23/12.52

4.201.06/46.25

0.63/50.10

5.20

4.30

2.06/13.74

2.80Limonite


Saprolite

26.6m

AGT 38AGT 39

14.9m

AGT 40

14m

AGT 41

32m

AGL-179

20.5m

AGT 36

16m

AGL-171

AGL-126AGL-125

28.1m

AGT 35

11.1m19m

8.55m13m

AGT 34

10500E 10600E 10700E10400E10300E10200E


Date: Nov '08

Approved By:

AGATA PROJECT


Plan No.:

FIG

50m

50m

0

Checked By: JSR

Drafted By: JBM,PDV

Compiled By:

Ni%

Fe%

Bedrock

Drillhole number

28m End of hole

Boulder

Thickness of intercept2.001.38 /42.47

AGL 2007-48

Saprolitic rock


Limonite

Saprolite

10000E 10100E9900E9800E9700E

300m ASL

250

200

15014.00

1.36/8.647.00

0.78/10.144.82

1.04/11.421.04/10.5610.96

0.95/46.61

0.66/46.26

2.00

4.00

0.88/45.77

0.64/44.22

4.00

2.00

1.02/43.492.18

1.02/47.02

0.66/43.18

7.25

2.00

1.04/49.77

0.77/47.73

1.80

0.40

11.601.05/9.26

0.94/45.84

0.71/46.65

18.101.69/10.67

3.75

1.25

0.84/51.28

0.67/49.76

3.451.12/18.07

1.00

1.00

0.92/50.01

0.99/14.515.55

1.351.11/50.30

1.10/13.145.004.60

0.71/8.50

2.000.71/49.44 0.66/50.05

4.000.98/49.30

1.95

1.80

1.03/43.61

1.12/10.23

5.00

3.00

1.00Ferruginous Laterite 0.71/45.38

Limonite

Saprolite

10100E

50m

50m

0

9800E9600E 9700E 9900E 10000E

Approved By:

Plan No.:

AGATA PROJECT


Date: Nov '08Fig.


Checked By:

Compiled By:

Drafted By: JBM, PDV

300m ASL

150

250

200

7.75m

8.4m

9.3m7.2m

AGL-1218.85m

AGL-122

AGL-159

AGL-117AGL-124

AGL-189 27.85m26.55m 28.15m

22.1m

17.07m

25m

AGL-138 AGL-150AGL-194

AGL-141AGL-145

9500E9400E9000E 9200E 9300E9100E

Ni%

2.001.38 /42.47

Ferruginous lateriteLimonite

28m

Drillhole numberAGL

2007-48

End of hole

BoulderSaprolite

Bedrock

Saprolitic rock

Fe%


0.86/46.25

0.76/48.46

1.00

1.30

1.16/12.60

1.40

0.94/38.77

0.78/45.88

1.45

1.50

1.00

1.05 /8.36

1.03 /42.451.40

2.301.00/7.19

0.93 /38.803.05

1.11 /43.97

1.09 /16.292.95

1.350.88 /30.99

0.501.20 /39.18

2.251.33 /11.03

1.451.28/48.63

17.101.05 /8.66

9.001.13/47.81

0.70/48.59

0.98 /12.019.10

5.30

3.15

0.96 /50.98

0.74 /47.72

5.551.11/12.66

1.20

0.50

1.12 /28.53

0.501.13 /20.73

0.40


Limonite

Saprolite


10200E 10300E 10400E 10500E 10600E 10700E 10800E10100E

Checked By: Fig.Approved By:

AGATA PROJECT

Plan No.:


Date: Nov '08

Compiled By:

Drafted By: JBM, PDV50m

50m

0


8.7m8.7m8.7m8.7m8.7m8.7m8.7m8.7m8.7m

14.65m14.65m14.65m14.65m14.65m14.65m14.65m14.65m14.65m 18.4m18.4m18.4m18.4m18.4m18.4m18.4m18.4m18.4m

13.1m13.1m13.1m13.1m13.1m13.1m13.1m13.1m13.1m

AGL-191AGL-191AGL-191AGL-191AGL-191AGL-191AGL-191AGL-191AGL-19116.65m16.65m16.65m16.65m16.65m16.65m16.65m16.65m16.65m

24.8m24.8m24.8m24.8m24.8m24.8m24.8m24.8m24.8m

15m15m15m15m15m15m15m15m15m

AGL-200AGL-200AGL-200AGL-200AGL-200AGL-200AGL-200AGL-200AGL-200 AGL-206AGL-206AGL-206AGL-206AGL-206AGL-206AGL-206AGL-206AGL-206AGL-196AGL-196AGL-196AGL-196AGL-196AGL-196AGL-196AGL-196AGL-196 AGL-203AGL-203AGL-203AGL-203AGL-203AGL-203AGL-203AGL-203AGL-203






25.5m25.5m25.5m25.5m25.5m25.5m25.5m25.5m25.5m19.7m19.7m19.7m19.7m19.7m19.7m19.7m19.7m19.7m

15.1m15.1m15.1m15.1m15.1m15.1m15.1m15.1m15.1m 19.1m19.1m19.1m19.1m19.1m19.1m19.1m19.1m19.1m11.6m11.6m11.6m11.6m11.6m11.6m11.6m11.6m11.6m

16m16m16m16m16m16m16m16m16m

9300E 9600E 9700E 9800E 9900E 10000E9500E9400E

200

150

300m ASL

250


Boulder


Fe%

Ni%

2.001.38 /42.47

AGL 2007-48

Saprolitic rock

Bedrock

Drillhole number

28m End of hole

Saprolite

Limonite

2.206.900.95 /40.66

1.151.08 /44.75

3.250.94 /18.07

2.801.39 /15.24

6.901.36 /17.33

5.451.60 /12.93

6.251.07 /10.88

3.551.26 /10.19

12.301.08 /9.63

0.608.006.804.000.82 /17.67

1.001.57 /20.271.14 /10.58

10.50Saprolite

1.34 /34.021.34 /47.74

0.67 /48.73

5.55

1.40

1.24 /49.81

0.67 /45.43 0.71 /46.91

5.05

1.20

1.16 /48.71

0.80

1.11 /49.544.20

0.70 /45.760.66 /46.58

6.301.17 /43.89

1.701.000.67 /48.72

1.45

2.200.88 /44.38

1.000.62 /45.100.61 /41.19

1.04 / 43.111.24 / 43.33

1.00 2.00Ferruginous Laterite

0.69 /41.08

Limonite

0.95 /8.08

3.30

0.98 /11.231.09 /8.62

0.88 /48.192.0011.009.00

1.25 /46.24

0.75 /48.04

1.55 /19.364.00

2.00

1.00

1.05 /49.74

0.73 /50.15

1.04 /10.8219.00

4.00

2.00

1.07 /44.75

0.72 /45.37

3.30

1.00

0.98 /50.060.98 /33.443.85

0.66 /44.25

1.12 /14.89 1.27 /19.863.00 6.35

8.00

2.00

1.33 /44.531.60

1.13 /11.446.15

1.04 /44.645.80

0.76 /44.49

1.41 /42.99

1.18 /8.555.25

4.000.97 /49.58

1.00

18.251.42 /10.20

0.68 /44.61

4.65

7.25 2.351.21 /12.96 1.54 /21.64

1.17 /42.69

2.00

2.000.91 /44.321.07 /46.41

0.66 /45.27

1.17 /16.683.95

2.00

3.75

0.73 /46.56

3.00

1.00

0.86 /41.16

0.70 /44.21

2.00

2.000.63 /46.01

1.20 /45.85

0.67 /44.823.00

1.27 /46.65 9.00

1.04 /46.07

1.00

3.00

0.67 /42.42

1.23 /50.85

4.00

8.00

0.68 /46.31

2.001.06 /13.29

15.001.07 /9.60

5.001.33 /14.52

6.601.02 /12.24

9.45

9.05

4.00

1.06 /41.84

0.68 /42.08

1.02 /9.56

2.00

5.75

0.59 /41.02

1.12 /45.95

1.31 /13.3411.00

3.00

9.00Limonite


Saprolite

24.35m

13.5m

22m

28.55m

16.35m

16.5m27.3m

27.75m

30.9m

46m

20.8m

14.35m14.35m

35m

46m

26.2m

24m

40m

35.1m

10800E 10900E 11000E 11100E10700E10500E 10600E10400E10300E10200E

Date: Nov '08

FIG

50m

50m

0

Approved By:

AGATA PROJECT


Plan No.:

AGT-30 AGT-31

AGT-32

AGL-199AGL-195

AGL - 247 AGL - 238

Drafted By: JBM,PDV


Checked By: JSR

Compiled By:


AGL 2007-48

Saprolitic rock

Bedrock

Drillhole number

28m End of hole

BoulderSaprolite

Limonite

AGL-109

9600E 9700E 9800E 9900E 10000E9500E9400E

200

10100E9300E

300m ASL

250

150

AGL-108

AGT-27AGT-25 AGL-14AGL-20

AGT- 45AGT - 28

AGT - 29AGL-106AGT-26AGL-06

Fe%

Thickness of intercept1.38 /42.47

Ni%

2.00

50m

50m

0

Approved By:

Plan No.:

FIG


Date: Nov. 08

Checked By:


AGATA PROJECT

AGL-101AAGL-101AAGL-101AAGL-101AAGL-101AAGL-101AAGL-101AAGL-101AAGL-101A

AGL-104AGL-104AGL-104AGL-104AGL-104AGL-104AGL-104AGL-104AGL-104 AGL-107AGL-107AGL-107AGL-107AGL-107AGL-107AGL-107AGL-107AGL-107 AGL-113AGL-113AGL-113AGL-113AGL-113AGL-113AGL-113AGL-113AGL-113

Drafted By: JBM,PDV

Compiled By:

23.8m 21.7m 20.5m

26.3m

17.68m15.31m4.65m

AGL-103AGL-103AGL-103AGL-103AGL-103AGL-103AGL-103AGL-103AGL-103AGL-98AGL-98AGL-98AGL-98AGL-98AGL-98AGL-98AGL-98AGL-98AGL-100AGL-100AGL-100AGL-100AGL-100AGL-100AGL-100AGL-100AGL-100



9700E 9800E 9900E 10000E 10100E

20.05m24.33m

32.39m

13.65m

10.8m

25.16m

10.9m8.87m

24.17m25.25m

Saprolite


AGL 2007-48

Limonite

AGL-15AGL-15AGL-15AGL-15AGL-15AGL-15AGL-15AGL-15AGL-15AGL-05AGL-05AGL-05AGL-05AGL-05AGL-05AGL-05AGL-05AGL-05 AGL-12AGL-12AGL-12AGL-12AGL-12AGL-12AGL-12AGL-12AGL-12





9300E9200E

250

300m ASL

Ni%

Fe%


9400E

200

9600E9500E

Saprolitic rock

Bedrock

Drillhole number

28m End of hole

Boulder

2.00

1.12 /47.96

10.30

0.66 /45.74

1.04 /12.25

6.05

0.75

1.12 /46.44

10.05

0.68 /46.02

1.30 /11.58

8.00

2.00

0.86 /47.85

0.73 /45.85

3.001.35 /19.16

2.95

1.00

1.11 /39.60

0.62 /39.95

5.251.02 /10.54

1.65

5.00

0.83 /48.53

0.67 /47.19

3.000.82 /17.39

4.00

2.00

0.89 /42.60

1.01 /16.93

2.00

0.65 /48.63

2.44

2.00

1.19 /12.35

0.76 /33.22

5.00

2.00

0.90 /36.521.65

0.70 /38.803.00

1.22 /43.34

0.75 /46.64

11.29

4.89

1.11 /13.50

1.57

1.21 /47.65

0.67 /43.73

9.00

2.00

0.84 /10.195.00

1.13 /41.97

0.61 /43.02

4.00

1.00

1.24 /43.95

1.05 /8.787.00

0.62 /43.23

9.00

2.001.09 /7.56

2.00

1.02 /43.28

0.69 /39.70

8.20

3.00

9.051.17 /6.41

1.15 /43.20

0.68 /39.23

6.00

7.001.16 /7.72

1.08 /41.66

3.00

8.40

3.00

1.23 /40.65

0.80

5.550.89 /7.73

1.02 /31.67

0.61 /39.62Ferruginous Laterite

0.71 /23.27

0.91 /20.221.20

1.20

0.65

Saprolite

Limonite

0.98 /50.88

0.78 /49.11

1.09 /47.84

0.69 /47.40 0.63 /46.87 0.65 /48.99

0.93 /49.88

2.70

5.25

4.80 1.00

0.97 /50.654.65 2.30

0.950.69 /47.58

1.29 /40.07

0.77 /34.70

3.55

2.300.50

1.16 /49.634.55 1.80

1.06 /48.15

0.73 /47.590.50

0.68 /43.400.66 /50.570.76 /48.31

1.03 /50.236.95 1.50

2.00

1.21 /46.717.70

0.90 /44.77 1.38 /40.32

3.150.72 /46.34

3.00

2.000.80

0.96 /42.513.20

2.00

1.00

0.65 /44.920.65 /43.96

1.03 /38.13

1.00

3.00

0.70 /43.25

0.99 /41.738.00

3.00

1.07 /46.71 1.00 /44.362.00

0.58 /40.44

1.15 /44.8114.00

2.85

7.30

2.00

5.001.13 /44.67

0.62 /41.66Ferruginous Laterite

Limonite

1.32 /13.83 1.05 /9.7811.55 9.70

1.33 /10.9212.40

0.97 /12.721.254.30

0.90 /18.88 0.85 /19.900.35

1.28 /16.09 1.48 /17.781.00 7.755.65

1.23 /12.668.40

1.12 /12.271.06 /18.039.62

1.37 /10.015.4011.05

0.90 /8.94 1.41 /13.156.9010.25

1.17 /9.260.94 /18.534.0015.00

1.30 /9.9415.85

0.82 /6.75Saprolite

Checked By: JSR

AGATA PROJECT


Plan No.:

FIG


Approved By:

19.75m

11200E

50m

50m

0

AGL-222AGL-232

27m

11.55m

AGL-201

12.9mAGL-210

18.2m

AGL-216

24m

10400E 10500E 10600E10300E

AGL-20726.45m

10700E 10800E 10900E 11000E

AGL-193

Compiled By:

Date: Nov '08Drafted By: JBM,PDV

9600E

AGL-105AGL-129 AGL-116

AGL 2007-48

28m

24.45m

10200E

14.94m

34.7m

AGL-04AGL-11 AGL-18

AGL-24 AGL-30

AGL-91

9700E 9800E 9900E 10000E

AGL-190

10100E9300E 9500E9400E

18.3m

AGL-95AGL-102

20.75m 23.52m34.15m

19.35m27m

32.4m 18.55m32.6m

150

Boulder

Bedrock2.00

1.38 /42.47

Ni%

Fe%


200

250

End of hole


Limonite

Saprolite

Saprolitic rock

300m ASL

Drillhole number

1.17 /44.52

0.63 /45.52

8.601.49 /42.07

2.050.68 /46.81

10.650.93 /49.24

1.500.70 /49.14

16.351.21 /10.44

14.751.00 /7.86

3.001.34 /10.40

8.151.26 /12.01

2.55

3.05

1.00 /45.48

0.66 /47.60

3.00

2.00

0.91 /40.75

0.63 /41.67

2.05

0.90

4.051.12 /9.70

0.90 /45.66

0.60 /40.80

2.95

2.80

5.00

1.01 /20.18

0.79 /42.891.20

11.001.16 /11.67

0.91 /43.222.00

0.98 /38.421.80

0.69 /42.941.10

1.11 /44.05

0.66 /41.66

9.00

3.00

1.01 /43.33

0.61 /43.48

7.00

3.00

3.001.25 /12.91

18.001.03 /7.67

7.001.02 /10.29

15.000.96 /9.22

4.501.43 /11.95

9.151.04 /7.39

0.97 /42.35

0.65 /41.24

2.00

2.00

0.97 /45.23

0.67 /42.34

4.00

2.00

1.36 /39.4512.00

0.66 /43.172.00

1.40 /42.977.60

0.61 /43.893.00

1.14 /35.12

3.90

0.60

1.06 /15.09

1.23 /35.083.00


Limonite

Saprolite

Approved By:


AGATA PROJECTNickel - Iron Laterite

Cross Section Line 10150N

24.7m

AGL-131AGL-131AGL-131AGL-131AGL-131AGL-131AGL-131AGL-131AGL-131 AGL-123AGL-123AGL-123AGL-123AGL-123AGL-123AGL-123AGL-123AGL-123

22.9m28.5m

11.15m24.8m

AGL-90AGL-90AGL-90AGL-90AGL-90AGL-90AGL-90AGL-90AGL-90AGL-93AGL-93AGL-93AGL-93AGL-93AGL-93AGL-93AGL-93AGL-93 AGL-94AGL-94AGL-94AGL-94AGL-94AGL-94AGL-94AGL-94AGL-94AGL-97AGL-97AGL-97AGL-97AGL-97AGL-97AGL-97AGL-97AGL-97AGL-99AGL-99AGL-99AGL-99AGL-99AGL-99AGL-99AGL-99AGL-99AGL-96AGL-96AGL-96AGL-96AGL-96AGL-96AGL-96AGL-96AGL-96 AGL-111AGL-111AGL-111AGL-111AGL-111AGL-111AGL-111AGL-111AGL-111

15.75m23.65m

17m20m

10100E 10200E9700E 9800E 9900E 10000E

Drafted By: JBM,PDV

Plan No.:

FIGDate: Nov '08

Checked By:

Compiled By:

50m

50m

0

150

300m ASL

250

200

9500E9400E 9600E9200E 9300E9100E


Fe%

Ni%

2.001.38 /42.47

15.4m

11.3m

33.5m7.6m33.1m


AGL-02AGL-02AGL-02AGL-02AGL-02AGL-02AGL-02AGL-02AGL-02 AGL-03AGL-03AGL-03AGL-03AGL-03AGL-03AGL-03AGL-03AGL-03AGL-08AGL-08AGL-08AGL-08AGL-08AGL-08AGL-08AGL-08AGL-08





22.5m25m

34.15m18.6m

Limonite

Bedrock

Saprolitic rock

AGL 2007-48


Saprolite

Drillhole number

28m End of hole

Boulder

0.67 /48.31 0.69 /47.59 0.65 /48.65 0.73 /50.880.72 /46.34 0.66 /45.030.67 /47.550.68 /49.55 0.76 /44.770.71 /33.500.62 /44.70 0.77 /42.16 0.68 /47.100.66 /43.290.61 /43.050.67 /43.02 0.60 /47.021.00

1.05 /35.341.05 /35.341.05 /35.341.05 /35.341.05 /35.341.05 /35.341.05 /35.341.05 /35.341.05 /35.34 0.91 /52.680.91 /52.680.91 /52.680.91 /52.680.91 /52.680.91 /52.680.91 /52.680.91 /52.680.91 /52.68

6.150.82 /8.29

1.001.001.001.001.001.001.001.001.00 1.201.201.201.201.201.201.201.201.20

1.75 2.00

1.15 /49.911.15 /49.911.15 /49.911.15 /49.911.15 /49.911.15 /49.911.15 /49.911.15 /49.911.15 /49.916.006.006.006.006.006.006.006.006.00

0.95 /51.790.95 /51.790.95 /51.790.95 /51.790.95 /51.790.95 /51.790.95 /51.790.95 /51.790.95 /51.793.003.003.003.003.003.003.003.003.00

1.10 /15.349.25 7.90

1.41 /10.916.00

1.10

0.94 /46.200.94 /46.200.94 /46.200.94 /46.200.94 /46.200.94 /46.200.94 /46.200.94 /46.200.94 /46.20 0.95 /51.370.95 /51.370.95 /51.370.95 /51.370.95 /51.370.95 /51.370.95 /51.370.95 /51.370.95 /51.373.903.903.903.903.903.903.903.903.90

0.92 /10.1810.45

1.04 /14.654.50

1.36 /13.49

1.25

6.706.706.706.706.706.706.706.706.70

1.01 /46.301.01 /46.301.01 /46.301.01 /46.301.01 /46.301.01 /46.301.01 /46.301.01 /46.301.01 /46.305.505.505.505.505.505.505.505.505.503.003.003.003.003.003.003.003.003.00

1.13 /46.201.13 /46.201.13 /46.201.13 /46.201.13 /46.201.13 /46.201.13 /46.201.13 /46.201.13 /46.20

1.00

0.82 /47.410.82 /47.410.82 /47.410.82 /47.410.82 /47.410.82 /47.410.82 /47.410.82 /47.410.82 /47.41 0.94 /40.770.94 /40.770.94 /40.770.94 /40.770.94 /40.770.94 /40.770.94 /40.770.94 /40.770.94 /40.77

0.84 /7.4511.00

1.12/11.582.00

3.003.003.003.003.003.003.003.003.00

2.00

0.99 /49.800.99 /49.800.99 /49.800.99 /49.800.99 /49.800.99 /49.800.99 /49.800.99 /49.800.99 /49.80 0.96 /37.860.96 /37.860.96 /37.860.96 /37.860.96 /37.860.96 /37.860.96 /37.860.96 /37.860.96 /37.86 1.01 /34.801.01 /34.801.01 /34.801.01 /34.801.01 /34.801.01 /34.801.01 /34.801.01 /34.801.01 /34.801.001.001.001.001.001.001.001.001.00

0.65

1.001.001.001.001.001.001.001.001.00

6.002.251.03 /9.03

1.851.18 /14.59 1.07 /20.19

2.00

1.101.101.101.101.101.101.101.101.10 1.001.001.001.001.001.001.001.001.00

0.84 /29.490.84 /29.490.84 /29.490.84 /29.490.84 /29.490.84 /29.490.84 /29.490.84 /29.490.84 /29.490.850.850.850.850.850.850.850.850.85

1.15

0.80 /48.320.80 /48.320.80 /48.320.80 /48.320.80 /48.320.80 /48.320.80 /48.320.80 /48.320.80 /48.32

1.30 /12.849.80 6.90

1.14 /8.211.90

1.00

0.600.600.600.600.600.600.600.600.60

5.00

1.21 /44.951.21 /44.951.21 /44.951.21 /44.951.21 /44.951.21 /44.951.21 /44.951.21 /44.951.21 /44.95 1.09 /42.911.09 /42.911.09 /42.911.09 /42.911.09 /42.911.09 /42.911.09 /42.911.09 /42.911.09 /42.91

0.95 /10.609.00

0.95 /10.284.79

1.05 /8.829.75

1.07 /14.237.25

0.81 /8.64

0.99 /49.420.99 /49.420.99 /49.420.99 /49.420.99 /49.420.99 /49.420.99 /49.420.99 /49.420.99 /49.42

4.30 2.70

2.202.202.202.202.202.202.202.202.20 4.904.904.904.904.904.904.904.904.903.213.213.213.213.213.213.213.213.21 7.007.007.007.007.007.007.007.007.00 6.606.606.606.606.606.606.606.606.60

3.00 1.60

1.02 /44.331.02 /44.331.02 /44.331.02 /44.331.02 /44.331.02 /44.331.02 /44.331.02 /44.331.02 /44.33 1.11 /42.681.11 /42.681.11 /42.681.11 /42.681.11 /42.681.11 /42.681.11 /42.681.11 /42.681.11 /42.68 1.00 /43.451.00 /43.451.00 /43.451.00 /43.451.00 /43.451.00 /43.451.00 /43.451.00 /43.451.00 /43.45

2.000.61 /41.39

3.003.003.003.003.003.003.003.003.00

2.00

1.07 /11.455.52

1.21 /7.897.79 8.80

1.24 /10.78

1.19 /45.451.19 /45.451.19 /45.451.19 /45.451.19 /45.451.19 /45.451.19 /45.451.19 /45.451.19 /45.451.23 /43.461.23 /43.461.23 /43.461.23 /43.461.23 /43.461.23 /43.461.23 /43.461.23 /43.461.23 /43.467.927.927.927.927.927.927.927.927.92 8.138.138.138.138.138.138.138.138.13

0.74 /43.65 0.57 /45.201.00 1.28

1.46 /53.081.46 /53.081.46 /53.081.46 /53.081.46 /53.081.46 /53.081.46 /53.081.46 /53.081.46 /53.085.005.005.005.005.005.005.005.005.00

Saprolite4.27

1.19 /11.933.60

1.61 /20.29

Limonite


2.001.38 /42.47

Ni%

Fe%


300m ASL

250

200

150

Drillhole number

Boulder

End of hole28m

AGL 2007-48


Limonite

Saprolite

Saprolitic rock

Bedrock FIGApproved By:


Date: Nov '08

AGATA PROJECT

Plan No.:Compiled By:

Checked By: JSRDrafted By: JBM,PDV

MRL GOLD PHILS., INC.50m

050m


18.7m


7.4m

15.1m



25.2m


18.6m



28.2m

32.15m

27m

AGT - 18AGT - 18AGT - 18AGT - 18AGT - 18AGT - 18AGT - 18AGT - 18AGT - 18

10900E 11000E 11100E10600E 10700E 10800E10500E10400E


10m

10100E 10200E 10300E

AGT - 17AGT - 17AGT - 17AGT - 17AGT - 17AGT - 17AGT - 17AGT - 17AGT - 17 AGL-77AGL-77AGL-77

AGL-77AGL-77AGL-77AGL-77AGL-77AGL-77

17.17m

6.5m


4.35m

AGL-88AGL-88AGL-88AGL-88AGL-88AGL-88AGL-88AGL-88AGL-88 AGT - 16AGT - 16AGT - 16

AGT - 16AGT - 16AGT - 16AGT - 16AGT - 16AGT - 16

9900E

AGT - 15AGT - 15AGT - 15AGT - 15AGT - 15AGT - 15AGT - 15AGT - 15AGT - 15

13.35m

18m21m

16.75m17.1m

9700E 9800E

25m



10000E9500E9400E


AGT-14AGT-14AGT-14AGT-14AGT-14AGT-14AGT-14AGT-14AGT-14AGL-38AGL-38AGL-38


20.95m17.95m36.05m

18m

9600E

AGT - 46AGT - 46AGT - 46AGT - 46AGT - 46AGT - 46AGT - 46AGT - 46AGT - 46 AGL-09AGL-09AGL-09



16.15m

AGL-01AGL-01AGL-01AGL-01AGL-01AGL-01AGL-01AGL-01AGL-01 AGT-13AGT-13AGT-13

AGT-13AGT-13AGT-13AGT-13AGT-13AGT-13

15.02m 14.55m

0.58 /50.120.68 /48.85

1.15 /43.65

1.20

3.10

0.70 /43.661.50

0.99 /41.110.91 /40.49

0.90

1.10

0.75 /41.750.72 /48.57

1.30 /9.786.70

1.29 /11.085.75

1.25 /10.166.90

2.10

1.03 /17.352.00

0.90

1.150.84 /46.55 1.08 /39.53

0.90

1.01 /9.116.00

0.65 /45.55 0.60 /47.430.90

0.97 /44.353.10

1.27 /13.649.10

4.00

5.00

1.06 /47.82

0.67 /47.330.62 /43.801.15

0.88 /43.352.85

1.09 /7.565.85

1.02 /14.645.15 2.15

0.82 /12.15

2.00

1.08 /45.114.00

0.68 /43.134.00

0.97 /44.781.12 /49.42

1.01 /7.982.055.00

7.00

0.67 /42.030.65 /46.911.00

1.38 /40.374.00

0.64 /42.15

1.02 /12.371.42 /16.37

3.05

1.26 /43.056.05

8.154.50

3.000.63 /41.10

9.25

1.12 /8.101.00

5.70

1.14 /46.551.12 /45.55

0.62 /42.86

5.3010.00

0.94 /17.28

3.00

1.00

0.53 /45.70

0.95 /8.2516.00

1.18 /19.71

6.558.00

2.00 1.45

1.25 /42.49

0.60 /42.90FerruginousLaterite

Limonite

Saprolite

Checked By: JSR


Plan No.:

FIG


Date: Nov. 08

AGATA PROJECT

Approved By:

50m

50m

0Compiled By:

Drafted By: JBM, PDV

200

250

300m ASL

150

11.40m

10100E 10200E


20.9m


13.35m


11.3m13.6m

10000E


15m

9900E

AGL-78AGL-78AGL-78AGL-78AGL-78AGL-78AGL-78AGL-78AGL-78 AGL-84AGL-84AGL-84AGL-84AGL-84AGL-84AGL-84AGL-84AGL-84

17.15m 15m


17.2m

9700E 9800E


7.1m


16m



20.85m

2.001.38 /42.47

Ni%

Fe%


21.9m

9600E

AGL-16AAGL-16AAGL-16AAGL-16AAGL-16AAGL-16AAGL-16AAGL-16AAGL-16AAGL-16AGL-16AGL-16AGL-16AGL-16AGL-16AGL-16AGL-16AGL-16

31m19.30m


36.1m

12.80m

9500E



Drillhole number

Saprolitic rock

Boulder


46.6m

End of hole

Bedrock

Saprolite

Limonite

9400E

AGL 2007-48

28m

Checked By: JSR

AGATA PROJECT


Plan No.:

FIG


Compiled By:


Approved By:

050m

50m

28m End of hole

200

300m ASL

250

150





10700E 10800E 10900E 11000E

7m7m7m7m7m7m7m7m7m

8.3m8.3m8.3m8.3m8.3m8.3m8.3m8.3m8.3m

19.25m19.25m19.25m19.25m19.25m19.25m19.25m19.25m19.25m

15.7m15.7m15.7m15.7m15.7m15.7m15.7m15.7m15.7m26.3m26.3m26.3m

26.3m26.3m26.3m26.3m26.3m26.3m

19.8m19.8m19.8m19.8m19.8m19.8m19.8m19.8m19.8m

12.35m12.35m12.35m12.35m12.35m12.35m12.35m12.35m12.35m

10500E 10600E10400E10300E

AGL-66AAGL-66AAGL-66AAGL-66AAGL-66AAGL-66AAGL-66AAGL-66AAGL-66AAGL-42AGL-42AGL-42AGL-42AGL-42AGL-42AGL-42AGL-42AGL-42AGL-69AGL-69AGL-69AGL-69AGL-69AGL-69AGL-69AGL-69AGL-69

AGL-42BAGL-42BAGL-42BAGL-42BAGL-42BAGL-42BAGL-42BAGL-42BAGL-42BAGL-66AGL-66AGL-66AGL-66AGL-66AGL-66AGL-66AGL-66AGL-66

AGL-87AGL-87AGL-87AGL-87AGL-87AGL-87AGL-87AGL-87AGL-87AGL-74AAGL-74AAGL-74AAGL-74AAGL-74AAGL-74AAGL-74AAGL-74AAGL-74A






6.7m6.7m6.7m6.7m6.7m6.7m6.7m6.7m6.7m

10.25m10.25m10.25m10.25m10.25m10.25m10.25m10.25m10.25m

9.65m9.65m9.65m9.65m9.65m9.65m9.65m9.65m9.65m

15.75m15.75m15.75m15.75m15.75m15.75m15.75m15.75m15.75m

22.4m22.4m22.4m22.4m22.4m22.4m22.4m22.4m22.4m

24m24m24m24m24m24m24m24m24m

44.45m44.45m44.45m44.45m44.45m44.45m44.45m44.45m44.45m

16.2m16.2m16.2m16.2m16.2m16.2m16.2m16.2m16.2m

15m15m15m15m15m15m15m15m15m

10.25m10.25m10.25m10.25m10.25m10.25m10.25m10.25m10.25m

16.95m16.95m16.95m16.95m16.95m16.95m16.95m16.95m16.95m

23m23m23m23m23m23m23m23m23m

22m22m22m22m22m22m22m22m22m

34.5m34.5m34.5m34.5m34.5m34.5m34.5m34.5m34.5m

24.55m24.55m24.55m24.55m24.55m24.55m24.55m24.55m24.55m

10200E10100E9800E9600E 9700E 9900E 10000E9500E

Ni%


Fe%

2.001.38 /42.47

36m36m36m36m36m36m36m36m36m

25.5m25.5m25.5m25.5m25.5m25.5m25.5m25.5m25.5m

AGL 2007-48


Limonite

SaproliteSaprolitic rock

Bedrock

Drillhole number

Boulder

0.82 /49.521.20

1.18 /21.882.80

1.08 /50.83

0.68 /48.39

5.00

1.11 /8.877.00

2.00

0.94 /46.22

0.68 /47.72

2.00

2.00

1.12 /49.63

0.67 /46.06

3.00

2.00

1.30 /45.04

0.71 /47.07

13.00

1.00

1.22 /16.263.00

0.96 /12.973.00

1.01 /39.49

1.17 /20.511.60

0.801.13 45.24

3.00

1.03 /11.062.00

0.80 /46.86

2.10

0.91 /47.64

0.97 /29.35

0.700.80

0.74 /47.461.902.00

0.82 /47.50

2.90

1.06

7.609.300.97 /7.830.83 /8.79

1.150.99 /14.03

5.041.18 /12.01

5.151.56 /11.82

1.20

4.80

1.15 /24.018.05

0.61 /12.021.0512.00

0.70 /43.301.10

0.60 /46.540.66 /47.76

1.03 /46.170.90 /40.92

0.66 /43.60

1.25 /30.59

0.65 /42.33

1.12 /38.63

0.65 /40.64

1.21 /42.54

0.70 /44.85

1.11 /46.61

0.67 /41.69

1.11 /43.47

0.72 /44.46

0.97 /43.690.83 /45.870.99 /48.69

0.59 /44.19 0.67 /45.280.65 /45.30

0.94 /44.322.005.00

3.50

5.956.00

1.04 /8.7915.30 2.00 2.10

0.80 /9.290.91 /17.701.31 /11.05

3.002.00

6.706.00

2.00

1.29 /9.2622.003.25

1.55 /10.16

2.00

4.75

11.001.03 /10.86

1.00

1.00

12.551.39 /8.05 1.49 /14.12

3.75

5.205.00

5.00

14.00Saprolite

FerruginousLaterite

Limonite

10100E 10200E10000E9900E9700E 9800E

AGL-56AGL-56AGL-56AGL-56AGL-56AGL-56AGL-56AGL-56AGL-56AGL-54AGL-54AGL-54AGL-54AGL-54AGL-54AGL-54AGL-54AGL-54 AGL-57AGL-57AGL-57AGL-57AGL-57AGL-57AGL-57AGL-57AGL-57 AGL-58AGL-58AGL-58AGL-58AGL-58AGL-58AGL-58AGL-58AGL-58AGL-64AGL-64AGL-64AGL-64AGL-64AGL-64AGL-64AGL-64AGL-64 AGL-70AGL-70AGL-70AGL-70AGL-70AGL-70AGL-70AGL-70AGL-70

AGL-361AGL-361AGL-361AGL-361AGL-361AGL-361AGL-361AGL-361AGL-3617.7m

23.3m16.3m 11.3m

26.4m24m

24.65m 9.3m



14m

24.7m


Plan No.:

FIGDate: Nov '08

Checked By:

Drafted By: JBM,PDV

Compiled By: 50m

50m

0

Approved By:



AGATA PROJECT

2.001.38 /42.47

Ni%

Fe%

AGL 2007-48




Drillhole number

28m End of hole

BoulderSaprolite

BedrockSaprolitic rock

12m 10.98m

25.35m 17m15m


AGL-34AGL-34AGL-34AGL-34AGL-34AGL-34AGL-34AGL-34AGL-34 AGL-45AGL-45AGL-45AGL-45AGL-45AGL-45AGL-45AGL-45AGL-45AGL-49AGL-49AGL-49AGL-49AGL-49AGL-49AGL-49AGL-49AGL-49

150

300m ASL

250

200

9300E 9400E 9600E9500E9200E9100E

1.06 /39.111.00

0.65 /45.56

0.99 /41.830.94 /41.76

1.90

2.10

0.65 /41.55

2.001.00 /8.93

6.001.31 /11.95

1.00 5.450.95 /21.930.81 /21.59

3.101.35 /20.20

0.99 /46.14

6.301.48 /22.43

1.000.82 /42.18

1.00

1.01 /49.06

0.58 /45.31

1.00

4.00

2.00

0.61 /40.942.00

7.00

0.63 /42.40

0.98 /46.61

7.001.47 /17.36

4.00

3.00

1.90

1.05 /32.45

1.06 /5.53

0.68 /42.20

1.10

3.00

1.000.92 /21.24

1.07 /42.71

0.62 /41.20

16.00

2.00

1.44 /25.811.00

1.05 /40.41

0.71 /43.99

3.00

1.00

6.001.11 /8.350.95 /7.16

0.73 /40.07

5.00

3.00

0.99 /45.75

1.44 /10.22

4.00

10.00

4.000.60 /42.96

1.07 /28.701.60

0.92 /21.556.20


Limonite

Saprolite

17.4m17.4m17.4m17.4m17.4m17.4m17.4m17.4m17.4m

9.55m9.55m9.55m9.55m9.55m9.55m9.55m9.55m9.55m

9.0m9.0m9.0m9.0m9.0m9.0m9.0m9.0m9.0m

16.8m16.8m16.8m16.8m16.8m16.8m16.8m16.8m16.8m

10600E10400E10300E 10700E 10800E 10900E 11000E10500E

Checked By: JSR

AGATA PROJECT


Plan No.:

FIG


Approved By:

AGL- 359AGL- 359AGL- 359AGL- 359AGL- 359AGL- 359AGL- 359AGL- 359AGL- 359

AGL- 213AGL- 213AGL- 213AGL- 213AGL- 213AGL- 213AGL- 213AGL- 213AGL- 213AGL- 221AGL- 221AGL- 221AGL- 221AGL- 221AGL- 221AGL- 221AGL- 221AGL- 221

50m

50m

0Compiled By:


AGL- 256AGL- 256AGL- 256AGL- 256AGL- 256AGL- 256AGL- 256AGL- 256AGL- 256

AGL- 51AGL- 51AGL- 51AGL- 51AGL- 51AGL- 51AGL- 51AGL- 51AGL- 51AGL- 59AGL- 59AGL- 59AGL- 59AGL- 59AGL- 59AGL- 59AGL- 59AGL- 59 AGL- 63AGL- 63AGL- 63AGL- 63AGL- 63AGL- 63AGL- 63AGL- 63AGL- 63 AGL- 67AGL- 67AGL- 67AGL- 67AGL- 67AGL- 67AGL- 67AGL- 67AGL- 67 AGL- 73AGL- 73AGL- 73AGL- 73AGL- 73AGL- 73AGL- 73AGL- 73AGL- 73

AGL- 208AGL- 208AGL- 208AGL- 208AGL- 208AGL- 208AGL- 208AGL- 208AGL- 208AGL- 48AGL- 48AGL- 48AGL- 48AGL- 48AGL- 48AGL- 48AGL- 48AGL- 48

AGT-12AGT-12AGT-12AGT-12AGT-12AGT-12AGT-12AGT-12AGT-12AGT- 10AGT- 10AGT- 10AGT- 10AGT- 10AGT- 10AGT- 10AGT- 10AGT- 10AGT- 09AGT- 09AGT- 09AGT- 09AGT- 09AGT- 09AGT- 09AGT- 09AGT- 09

AGT- 11AGT- 11AGT- 11AGT- 11AGT- 11AGT- 11AGT- 11AGT- 11AGT- 11AGT- 08AGT- 08AGT- 08AGT- 08AGT- 08AGT- 08AGT- 08AGT- 08AGT- 08

14.6m14.6m14.6m14.6m14.6m14.6m14.6m14.6m14.6m

17.2m17.2m17.2m17.2m17.2m17.2m17.2m17.2m17.2m22.2m22.2m22.2m22.2m22.2m22.2m22.2m22.2m22.2m

18.75m18.75m18.75m18.75m18.75m18.75m18.75m18.75m18.75m

41.5m41.5m41.5m41.5m41.5m41.5m41.5m41.5m41.5m

11.6m11.6m11.6m11.6m11.6m11.6m11.6m11.6m11.6m 15m15m15m15m15m15m15m15m15m6m6m6m6m6m6m6m6m6m 11.2m11.2m11.2m11.2m11.2m11.2m11.2m11.2m11.2m27.7m27.7m27.7m27.7m27.7m27.7m27.7m27.7m27.7m

250

200

Ni%


Fe%

2.001.38 /42.47

28m28m28m28m28m28m28m28m28m

End of hole

Drillhole numberFerruginous lateriteLimonite

SaproliteSaprolitic rockBedrock

28m

300m ASL

Boulder

AGL 2007-48

150

10200E9800E9600E 9700E 9900E 10000E9500E 10100E

1.08 /37.461.30

1.95

1.00

0.71 /48.00

0.96 /41.73

0.91 /28.320.60

0.69 /46.463.05

0.95 /40.942.85

9.051.15 /11.26

0.64 /40.221.18

1.51 /10.267.80

0.400.98 /45.84

4.650.63 /46.85

0.89 /46.972.00

0.71 /42.19

1.00 /9.446.873.15

1.43 /9.50

2.002.75

1.08 /9.63

0.62 /42.78

11.00

2.00

1.63 /12.111.80

4.151.19 /39.44

6.001.11 /33.44

1.850.94 /32.31

0.66 /37.19

1.41 /9.206.75

1.38 /40.946.00

1.17 /14.645.00

0.87 /44.77

1.53 /11.33

3.00

17.00


3.00

0.61 /46.15 0.70 /46.57

1.22 /44.57

15.001.20 /8.47

3.00

2.00

Limonite

Saprolite

1.54 /36.58

0.78 /51.75

4.551.18 /11.10

1.95

1.00

0.93 /48.49

0.71 /47.56

3.100.89 /12.31

1.15

2.95

0.92 /45.59

3.00

0.68 /46.73

1.21 /9.89

4.00

2.00

3.000.95 /7.78

0.58 /41.960.79 /39.351.00

1.00

5.001.48 /10.80

1.08 /30.660.90 /44.82 0.98 /46.712.00

3.504.00

8.001.39 /13.62

0.67 /46.68

1.33 /11.235.00

2.001.17 /38.69

0.67 /38.88

5.00

2.00

1.08 /12.10

6.00

18.001.30 /8.51

3.000.64 /43.810.64 /43.01

1.14 /43.423.00

1.34 /9.847.00

2.00

1.20 /34.10

4.950.94 /14.20

0.75 /27.64

0.60

0.75

1.01 /27.2917.30

1.22 /13.761.55

Limonite


1.25 /41.883.25

Saprolite

Date: Nov '08


Approved By:

AGATA PROJECT


Plan No.:

FIG

0

50m

Checked By:

Drafted By: JBM,PDV

Compiled By: 50m

AGL-53 AGL-60 AGL-62 AGL-65 AGL-68 AGL-72AGL-182AGL-50AGL-46AGL-44

10100E 10200E9800E 9900E 10000E9700E

17.5m22.85m19.7m18.45m 19.5m

10.35m15.05m 17.15m

25.9m16.5m 28.2m

17.9m

11.05m17.8m14.9m

16.8m

150

300m ASL

250

200

2.00

Drillhole number

1.38 /42.47Thickness of intercept

Fe%

Ni%

28m End of hole

BoulderSaprolite

Bedrock

Saprolitic rock


AGL 2007-48

AGL-41

AGL-153AGL-166

AGL-211

AGL-39

AGL-157

9500E9400E 9600E9100E 9300E9200E

10500E 10600E 10700E 10800E 10900E 11000E

Approved By:

AGATA PROJECT


Plan No.:

FIG


Date: Nov. 08Checked By: JSRDrafted By: JBM,PDV

Compiled By:

050m

50m

12000E

27.1m

AGL-255

AGL-259AGL-251

AGL-240

12100E

AGL-249

AGL-268 AGL-263AGL-257

AGL-254AGL-226

AGL-22720m23.25m

13.5m20m

17.7m16m18.85m

AGL 2007-48

Ni%

Fe%


2.00



Bedrock

Drillhole number

End of hole

Boulder

300m ASL

250

200

150

100

10300E10100E 10200E9800E 9900E 10000E 10400E

28m

0.98 /48.741.00

1.05 /16.293.00

0.74 /49.05

0.85 /50.051.00

1.00

9.001.07 /10.47

1.25 /42.061.00

1.001.36 /17.56

0.97 /45.13

7.00

3.00

1.00

7.00

1.06 /45.81

1.05 /10.91 1.21 /9.65

2.00

3.00

4.70

0.83 /52.59

1.27 /9.25

0.75

0.750.68 /52.560.53 /52.20 0.71 /51.86 0.60 /51.77 0.61 /50.81 0.66 /49.49 0.78 /49.24

3.201.06 /10.18

1.14 /40.67

2.90

2.00

9.00

0.96 /47.21

3.708.00

3.00

3.00

1.20 /13.20 1.00 /8.11

2.30

1.07 /12.82

1.000.62 /50.65

1.05 /49.82

1.61 /15.868.00

4.00

2.00

FerruginousLaterite

Saprolite

Limonite

9800E 9900E 10000E

FIGApproved By:

AGATA PROJECT


Plan No.:


Nov. 08Checked By: JSRDrafted By: JBM, PDV

Compiled By:

050m

50m

9.2m

AGL-162

15.7m

AGL-175

11.6m

Fe%

Ni%


2.00

AGL-204BAGL-173

22.8m

9600E 9700E

Bedrock

Boulder

Drillhole number

End of hole28m

AGL 2007-48


Limonite

Saprolite

Saprolitic rock

9500E9400E

300m ASL

250

200

150

1.10 /31.09

0.50 /37.35

1.41 /20.343.10

0.80

0.401.10 /51.76

0.68 /48.80

3.20

1.60

3.05

1.57 /8.72

0.68 /49.10

1.09 /8.618.70

2.45

Limonite


Saprolite

300m ASL

250

200

150

20.8m

10400E 10500E

19.6m

10300E

17.55m

10200E

15m

Compiled By:


Date: Nov 08Checked By: JSR

FIG

050m

50m

Approved By:

AGATA PROJECT


Plan No.:

Drafted By: JBM,PDV

AGL - 260AGL - 260AGL - 260AGL - 260AGL - 260AGL - 260AGL - 260AGL - 260AGL - 260

AGT - 06AGT - 06AGT - 06AGT - 06AGT - 06AGT - 06AGT - 06AGT - 06AGT - 06 AGL - 241AGL - 241AGL - 241AGL - 241AGL - 241AGL - 241AGL - 241AGL - 241AGL - 241

AGL - 266AGL - 266AGL - 266AGL - 266AGL - 266AGL - 266AGL - 266AGL - 266AGL - 266

AGT - 05AGT - 05AGT - 05AGT - 05AGT - 05AGT - 05AGT - 05AGT - 05AGT - 05 AGL - 237AGL - 237AGL - 237AGL - 237AGL - 237AGL - 237AGL - 237AGL - 237AGL - 237AGT - 47AGT - 47AGT - 47AGT - 47AGT - 47AGT - 47AGT - 47AGT - 47AGT - 47AGT - 04AGT - 04AGT - 04AGT - 04AGT - 04AGT - 04AGT - 04AGT - 04AGT - 04

Ni%

Fe%


2.00


AGL 2007-48

Limonite


Bedrock

Drillhole number

28m End of hole

Boulder

10100E

12.1m11m

9900E 10000E

7m

9700E 9800E

16m

0.91 /45.15

16.00

0.73 /48.93

1.09 /6.38

2.00

1.00

1.04 /50.78

0.64 /50.45

3.00

3.00

13.601.04 /8.23

0.81 /54.14

0.61 /51.12

1.00

6.000.98 /9.04

1.00

0.98 /33.33

0.69 /47.83

1.00

2.00

7.001.14 /9.27

1.000.88 /51.08

1.17 /10.954.50

0.67 /49.74

3.050.98 /9.51

3.13

1.15 /31.05

0.31 /50.00

1.00

1.001.06 /9.10

2.00

0.86 /51.08

0.54 /47.274.00

1.00

7.301.73 /9.07


Limonite

Saprolite

2.00


1.38 /42.47Thickness of intercept 50m

50m

0

Ni%

Fe%

16m

Approved By:

AGL-174

9800E 9900E 10000E

AGL-165

FIGChecked By: JSRDrafted By: JBM, PDV

AGATA PROJECT


Plan No.:Compiled By:

9400E

Date: Nov. 08

300m ASL

Bedrock

28m End of hole

9600E 9700E

Boulder

AGL 2007-48


Limonite

Saprolite

Saprolitic rock

Drillhole number

9500E

150

250

19m

AGL-219

AGL-275

14.5m

18.9m

200

Limonite

Saprolite


1.25 /43.74

0.74 /51.15

2.601.17 /11.40

2.20

1.20

0.82 /36.20

0.59 /43.73

6.101.25 /17.28

1.20

1.20

0.89 /42.669.90

300m ASL

250

200

Saprolite

Saprolitic rock

Bedrock

28m Approved By:

Plan No.:

FIGDate: Nov. '08Drafted By: JBM,PDV

Compiled By:

Checked By: JSR

50m

AGL - 29625m

AGL - 281

14.4m AGL - 283

8.1m

AGL - 287

20.65m

AGL - 291

10600E10200E 10300E 10400E 10500E 10700E 10800E 10900E

13.5m

12m


22m 10.35m

AGL - 273

AGL - 278


AGATA PROJECT50m

0

AGL - 243 AGL - 234AGL - 248

14.65m

AGL - 229

9700E 9800E 9900E 10000E 10100E

1.38 /42.47

21.2m23.65m

End of hole

Thickness of intercept2.00

100

Limonite

Drillhole number

Boulder

Ni%

Fe%


150

AGL 2007-48

0.89 /47.741.00

1.23 /11.968.00

1.0 /47.38

6.00

2.00

1.04 /10.28

1.19 /41.44

1.20 /17.838.00

9.001.35 /39.82

1.05 /16.342.00

1.001.27 /40.66

1.51 /13.607.00

2.00

1.25

0.90 /39.87

0.80 /11.95

1.000.93 /35.34

2.00

0.55 /47.15

0.84 /16.43

2.00

1.00

9.70

0.66 /52.36

1.25 /12.23

2.801.17 /41.33

0.69 /52.04

1.40 /8.647.00

1.00

3.00

8.00

1.02 /44.72

1.34 /11.46

0.63 /52.50

2.00

2.00Ferruginous Laterite

Limonite

Saprolite


Drafted By: JBM,PDV50m

Approved By: FIGDate: Nov. '08

Checked By: JSR

1.38 /42.472.00

Ni%


Fe%

Bedrock

Drillhole number

28m End of hole

Boulder

Saprolitic rock

AGL 2007-48


Limonite

Saprolite

Compiled By:

50m

0

AGATA PROJECT


Plan No.:

AGL - 279

22.45m

AGL - 271

AGL - 27410.5m

20.3m

AGL - 253

16m

19.4m

18m

10900E

AGL - 258

AGL - 264

AGL - 267

10600E 10700E 10800E

4.6m

24.75m

AGL - 282 AGT - 02

AGL - 239

10500E10400E10300E 11000E 11100E 11200E10000E

10m

AGL - 286

8.55m

AGL - 289

11.2m

23m

10200E10100E

50

150

250

200

100

0.87 /51.61

0.70 /49.69

16.00

4.00

2.00

1.10 /10.59

0.94 /48.90

0.75 /51.18

2.00

1.00

1.37 /10.5413.00

0.68 /49.85

0.94 /50.832.00

3.00

1.52 /9.7312.00

0.74 /49.891.00

1.37 /15.286.00

0.72 /46.20

0.91 /50.491.00

1.10 /15.978.00

1.00

1.00

1.31 /15.018.00

0.82 /53.92 0.96 /48.193.00

1.40 /11.0711.00

1.00

1.00

1.63 /12.305.00

0.92 /37.171.00

0.73 /48.130.66 /51.92Ferruginous Laterite 0.74 /34.581.00

Limonite

Saprolite

FIGApproved By:

AGATA PROJECT

Plan No.:


Date: 11 Nov '08

Checked By: JSR

Drafted By: JBM,PDV

Compiled By: 50m

50m

0

11100E11000E 11300E11200E 114200E10700E 10800E 10900E

1.38 /42.472.00

Ni%


Fe%Limonite


Bedrock28m End of hole

BoulderSaprolite

Saprolitic rock

10600E


24.85m

13.4m AGL 265

10.0m11.8m

AGL 272

24.2m

100

11.15m

AGL 246

250m ASL

200

150AGL 261

10.0m

AGL 250

9.0m

Drillhole numberAGL

2007-48

AGL 270

AGL 276

AGL 285

50

0.99 /43.11

0.72 /50.30

1.00

5.00

1.00

1.08 /7.22

1.40 /43.41

0.77 /51.40

8.00

4.00

1.47 /12.1310.00

0.64 /49.38

4.30

1.70

1.18 /47.87 1.00 /45.91

1.43 /13.579.00

1.31 /9.393.00

4.00

0.92 /15.662.00

1.00 /30.75

0.73 /47.28

0.90

1.10

0.94 /10.982.00

0.94 /32.22

0.60 /43.32

0.75

1.00

1.16 /15.491.60

0.800.85 /41.78Limonite

0.86 /8.612.20

Saprolite


Appendix 4

ANLP QA/QC Procedures

1

MNDORO RESOURCES LIMITED [MRL GOLD PHILS., INC.]

AGATA NICKEL LATERITE PROJECT

QUALITY ASSURANCE AND QUALITY CONTROL PROCEDURES

MRL Gold Phils., Inc. Agata Project Exploration Staff

2

Table of Contents 1. INTRODUCTION .................................................................................................................................... 3 2. GEOLOGIC MAPPING ........................................................................................................................... 3 3. TRENCHING ........................................................................................................................................... 3 4. SURVEYING ........................................................................................................................................... 3

4.1 Grid Lines Survey ............................................................................................................................... 3 4.2 Topographic Surveying ....................................................................................................................... 4

5. DRILLING ............................................................................................................................................... 4 6. CORE SECURITY ................................................................................................................................... 5 7. CORE LOGGING .................................................................................................................................... 5

7.1 Logging Codes.................................................................................................................................... 5 7.2 Weathering Scale ................................................................................................................................ 6 7.3 Boulder Size ....................................................................................................................................... 6 7.4 Color Code ......................................................................................................................................... 6

8. CORE SAMPLING .................................................................................................................................. 7 9. TRANSPORT OF SAMPLES .................................................................................................................. 7 10. ASSAYING............................................................................................................................................ 8 11. ASSAY DATA QUALITY ANALYSIS ................................................................................................. 8

11.1 Duplicate Samples......................................................................................................................... 8 11.2 Standard Samples .......................................................................................................................... 8 11.3 Check Samples .............................................................................................................................. 9

12. Bulk Density and Moisture Content Determination ................................................................................. 9 13. Documentation ..................................................................................................................................... 10 14. Data Management ................................................................................................................................. 10

3

1. INTRODUCTION MRL as any other exploration company ensures that sampling procedures and sample quality is up to standard. It is not only a “must” but also guarantees that the sanctity of the samples is maintained all-throughout from its collection to its transport into the laboratory for analysis. As SOP of the company, a site geologist or mining engineer is assigned on the drill site to make sure that QA/QC procedures and protocol is consistently followed. The QA/QC measures being implemented in Agata Nickel-Iron Laterite Project were adapted from the QC/QA practiced from other MRL Projects and mostly from BHP QC/QA protocol that was used during BHP preliminary drilling evaluation study of Agata Laterite Prospect conducted on January – April, 2006. This paper document details protocols being implemented. The project area straddles over Bgy, Lawigan, Tubay, and Bgy. E. Morgado, Santiago in the province of Agusan Del Norte. The field office and main camp is located at Barangay E. Morgado.

2. GEOLOGIC MAPPING Geologic map is essential and foremost in any geological studies. As such geologic mapping is done by geologists. There was previous mapping conducted in the area. However, detailed mapping has to continue to progressively updating the geologic map on a regular basis as there are new exposures seen on the newly brushed/cut grid lines, roadcuts, creeks, trenches and test pits as the drilling program advances. The purpose of this activity is:

2.1. To identify and delineate different lithologic units in the area. 2.2. To determine the surficial characteristics and contact of the different laterite horizons as well

as bedrock geology. 3. TRENCHING Trenching activities are being undertaken at the western and southern periphery of the current drilling area. The purpose is to expose the laterite profile and determine contacts and thickness of the different laterite horizons and the bedrock. Determining the different laterite horizons at the periphery of the deposit is useful in the correlation and projection to the surface profile at the edge of the deposit when doing cross section maps for each grid line. This is very important in ore estimation and formulation of the site development plan where mine pit limit will be based on the contoured contacts. 4. SURVEYING Prior to the implementation of the proposed drilling program survey team was sent to the area to conduct the following;

4.1 Grid Lines Survey Grid lines were laid in the area using an EDM survey instrument. The grid lines were established every twenty five (25) meters interval with control stakes marked by flagging tape and aluminum plates for easy reference and location by drill site preparation team. The proposed drill holes are located on a 50 x 50 meters interval along the established gridlines. Gridlines are controlled using the local gridlines designated as 10,000N/10,000E as baseline grid.

4

4.2 Topographic Surveying Simultaneous with the laying out of the gridlines a detailed topographic survey was likewise done in the area. Control points are shot at five (5) meters interval to generate a relatively accurate topographic contour. Drill-hole collar elevation is shot before the start of the drilling activity and after the completion of the drill hole. Reference points BLM, and other government monument established by the concerned government agency (DENR land management) in the area are likewise located on the ground and verified as to geographical coordinates and the elevation of these established monuments. To avoid data overloading and instrument error, data collected by the EDM machine are regularly downloaded into the company computers and regularly processed by the chief GIS. Back-up files are kept in the Surigao office to avoid data losses in case the computer crashes or bugs down due to virus infestation that may destroy the stored files. 5. DRILLING After the drill holes have been located, the site preparation team prepares the site for drilling. Drill sites are leveled manually usually by four (4) laborers, thence, a water sump is manually dug with dimensions of 1.5m x 1.5m x 1.5m for water storage and as container for the return water. Drilling was carried out by Construction and Drilling Specialists, Inc. using five (5) man-portable or lightweight rigs during the initial resource delineation. These rigs are Toho DS-Js, YBM-01, GM-50 and twoTS-50. NW drill rods and tungsten carbide bits will be used except for very dense hard rocks where diamond bits and NQ drill rods are used. Dry blocking or drilling with no water is usually done in the limonitic soil. When penetrating into dense bedrocks, wet is employed. In December 2007, TCD Drilling Consultancy Services was contracted to commence the infill drilling. It drilled 48 holes with an aggregate of 773.12 meters. Four man-portable drill rigs were brought in namely: 1.) TONE 1, 2) TOHO 1, 3) TOHO 2, and 4) TOHO 3. These rigs are similar to those of the previous contractor but with single tube using conventional dry drilling techniques. Due to sluggishness of the drilling, the services of TCD were terminated. On June 18, 2008, JCP Geo-Ex Services, Inc. continued the drilling. It drilled 45 holes up to July 18, 2008 with an aggregate of 811.45 m. JCP is currently continuing the drilling operations at ANLP with its four (4) rigs. These rigs are: 1.) KOKEN, 2) YBM, 3) JCP 3, and 4) JCP 11. JCP is employing similar drilling techniques as that of TCD but is accomplishing it at a substantially faster rate. The drilling activities are constantly monitored by the site geologist. The purpose is to avoid over-drilling and ensure that the bedrock has been penetrated at least three (3) meters as standard operating procedure. There were instances that more than two (2) meters of boulders were encountered at the current drilling activity. It is also a standard procedure that core checkers who is under the supervision of MRL technical staff are present in every drill rig during drilling operation. This is to record drilling activities from core recovery, core run, pull-out and put-back, casing and reaming (Appendix 1 – Drilling Activity Report) and most important is to watch out if the retrieval of core from the core tube is done properly and see to it that the recovered cores are properly placed in the core box and appropriately labeled. Core blocks are placed at the bottom of each run indicating drillhole number, core run, core recovered and current bottom. Core recovery is checked after each run and recorded in the core recovery sheet (Appendix 2 – Borehole Recovery).

5

Before the start of the drilling program the core checkers were properly oriented and trained on the nature and routine of their job. A daily briefing before the start of their work is being done to remind them to keep the core always in good quality. The core checkers sees to it that the drill site is clean and also safe to work. The Safety Engineer assigned in the area as well as company environmental officers regularly inspects the drill site. The completed drill holes are immediately rehabilitated and concrete markers are installed with markings such as drill hole number, local coordinates and depth of the drill holes. 6. CORE SECURITY The core box is at all times covered by plywood after each retrieved core was placed in the core box to prevent any accidental spillage or contamination. Once a core box is filled up, it is sealed with a plywood board and nailed to the core box then tightly tied with rubber packing band. Since this is manually transported to the core house some 300 - 500 meters from the drill area, the core box is placed inside a sack and carried by two persons accompanied by MRL supervisor/personnel. The core storage and core house is strictly under the supervision of the site geologist. Only authorized personnel are allowed to enter the core house premise. The filled-up core boxes which are not yet log are stored on an elevated rack and are kept dry and shielded from rain and excessive sunlight. The empty core boxes are likewise kept in a dry place, cleaned and ready for re use.

7. CORE LOGGING Core logging is absolutely done by the site geologist so that he can gain intimate knowledge of the geological aspects of the deposit. Appendix 3 (Drill hole log sheet) shows the logging sheet being used.

7.1 Logging Codes Code Laterite Horizon

LF Red-brown limonite (ferruginous or overburden)

LA Yellow limonite (without Mn staining or veining)

LB Yellow limonite (with Mn staining or veining) TM Transition Material (mixed zone of limonite and saprolite SAP Saprolite (gritty clay with <10% boulders of weathered bedrock

R_SAP Rocky saprolite (with 10% -50% boulders of weathered bedrock) S_ROCK Saprolitic rock (with 50% - 90% bedrock)

D Dunite SD Serpentinized Dunite SS Serpentinite HZ Harzburgite

SHZ Serpentinized Dunite

6

7.2 Weathering Scale

Laterite Horizon Classification Characteristic Fresh Rock 0 Black/green/light grey, unweathered, dense and hard Saprolite 1 Black/brown, slightly weathered, discolored, still hard

2 Brown/gray 3 Pink / brown/ green 4 Pink/brown/green, friable, relatively low density with

some remnant textures 5 Brown, yellow/red, pink/green-grey, very soft, original

texture still visible Limonite 5F Yellow-red, very soft “soil like” very low density to

compact, mud-like texture Ferricrete 6 Red-black, hard include pisolite

Combinations of the various weathering “stages” could be used i.e.; 2/3, 3/4, 2-5 or 0-3. The first number in double-digit references indicates the predominant weathering stage, but the numbers separated by a hyphen include all intermediate weathering stages.

7.3 Boulder Size The size of the boulders is also recorded to help in the analysis of rock distribution and to determine whether screening of these rocks during mining operation is necessary.

Code Description 1 < 20 cm (will be acceptable for shipping) 2 20 -50 cm (will be screened at the grizzly) 3 > 50 cm (will be left at the pit)

7.4 Color Code Code Color

Bl Black Br Brown R Red

Bu Blue

P Pink

O Orange

Y Yellow Gn Green Gy Grey

W White Combination of colors or color codes could be used i.e. YO – yellow orange, RBr – red brown, etc.

7

8. CORE SAMPLING Whole core sampling is applied in most of the first 148 holes except for 17 holes wherein the cores were split for possible checking of the sampling process, performance of the laboratory and their analytical process at a later time. This is equivalent to a frequency of about 1 in every 5 holes. The purpose of the procedure is to avoid any bias that could occur during splitting and quartering of the core. Splitting of the above-mentioned cores was manually done. The core was laid on a canvass sheet, pounded and crushed by use of a pick, thoroughly mixed, quartered, then the split sample is taken from 2 opposite quarter portions. The other 2 quarters are combined and kept as a duplicate in a properly-sealed and labeled plastic bag and arranged in core boxes according to depth. The duplicates are stored in the core house at the Agata core storage located at Barangay E. Morgado, Santiago, Agusan Del Norte. The next holes (AGL 2008-138 to 361, except for 45 holes in Batch Nos. 2008 AGL 31 to 36) were split-sampled to ensure the availability of reference samples in the future. The cores were cut in half using a core saw(rocky portions) or spatula. The remaining half is stored in properly-labeled core boxes. Core sampling is done as much as possible at one (1) meter interval down the hole except at laterite horizon boundaries. The sample length across the boundaries should only be in the range of 1.0 ± 0.30m to avoid excessively short and long samples. The sampling interval is marked in the core box by means of masking tape and written on it is the sampling depth. The sample collected is placed on a plastic bag with dimension of 35cm X 25cm tied with a “magic twister” tie wire. Outside of the plastic bag is written the hole number and sample interval. After the samples are collected it is weighed then sun-dried for about 5 hours and weighed again (Appendix 4 – Sample Preparation Sheet) before finally packing for delivery to the laboratory. In cases where there is continuous rain the samples are pan dried for 5-6 hours using the constructed drying facility or wood-fired oven. Starting with batch 2008 AGL 18, only the sun-drying was practiced. This simple process aims to determine moisture content of the samples. 9. TRANSPORT OF SAMPLES From the core house at the drilling area, the samples are manually carried down to the Agata camp for final checking and packing before delivery to the laboratory. Six to eight samples are placed in a rice sack depending on the weight that should have maximum of 12 kilos sufficient enough for one person to carry it carefully. The sample haulers are convoyed by MRL personnel. Once at the Agata camp, the samples are checked and inspected for completeness of samples and sample tags and check any damage to the sample bags. Sample tags are provided by Mcphar. These samples are placed in a rice sack and then in a box within a wooden crate to ensure the safety of the samples during transport. For all of the 2007 cores and batch 2008 AGL 10, the samples are delivered to Mcphar Laboratory through LBC-Butuan City or LBC-Surigao City with a transmittal receipt. The transportation of the crates containing the samples is always accompanied by designated MRL staff. The LBC personnel acknowledge the receipt that they have received the samples with corresponding receipt of the weight and payment of samples (Appendix 5 – Transmittal letter). For batches 2008 AGL 1, 3 and 6, the samples were delivered by MRL personnel to McPhar’s sample preparation facility in General Santos City. The assaying was still done in their laboratory in Makati City. For batches 2008 AGL 13, 16, 18 and onwards, the core samples were delivered to Intertek’s sample preparation facility in Surigao City. Once prepared, Intertek-Surigao sends the samples to their assay laboratory in Muntinlupa City, Metro Manila.

8

A sample submission form to both McPhar and Intertek Assay Laboratory is included in the package of samples (Appendix 6 – Sample Submission Form). Only when there is a discrepancy, McPhar or Intertek will e-mail MRL, otherwise, the results of the analysis will just come in 3 weeks thereafter by e-mail and delivery of the hard copies to MRL’s Main Office. 10. ASSAYING In McPhar, each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesia (MgO), alumina (Al2O3), silica (SiO2) and some samples for phosphorous (P). The Ni, Co, Fe, MgO and Al2O3 are assayed by dissolving a 25g charge with a three acid digest using hydrochloric and nitric acid and reading the results by Atomic Absorption Spectroscopy (AAS).The SiO2 and P are analyzed by gravimetric process. McPhar conducts regular rechecks on their analysis. This is done by preparing a solution different from the solution on the regular sample taken on the same pulp of a particular sample. In June 2008, Mindoro changed their primary laboratory for the ANLP Drilling Program to Intertek Testing Services Philippines, Inc. as recommended by consultant F. Roger Billington. Intertek uses X-Ray Fluorescence (XRF) for nickel laterite assaying. In whole rock analysis, samples are fused using lithium metaborate and analyzed by XRF. This scheme determines total element concentrations that are then reported as oxides. The elements analyzed include Ni, Co, Fe, Al2O3, MgO, SiO2, P2O4, CaO, Cr2O3, K2O, MnO, Na2O, TiO2. The loss in ignition (LOI) is also reported.

11. ASSAY DATA QUALITY ANALYSIS The objective of the quality control of assays is to check the precision of sample preparation, consistency of performance and accuracy of the laboratory’s analytical results. These objectives are attained through:

11.1 Duplicate Samples To ensure the repeatability or consistency of samples, a duplicate sample is taken one (1) in a batch of every twenty (20) samples or about 5% of total samples. The duplicate sample is selected subjectively to ascertain that the full range of different laterite horizons is systematically covered. This duplicate sample is taken by crushing to smaller size fragments the sample then quartered after thoroughly mixing. One-fourth part of the prepared sample represents the field duplicate sample and the three-fourth part as regular sample. These samples are sent to the laboratory in the same batch. This on-site procedure of taking duplicate samples was modified in 2008. With split-core sampling, one duplicate sample in every set of forty (40) is directly obtained, by taking half of the remaining core after splitting. Simply put, the field duplicate is just the one-fourth of the whole core. These samples are also sent to the laboratory in the same batch as the mainstream samples. Each subset of 40 samples in a batch contains 37 mainstream cores, 1 nickel standard, and 1 field duplicate.

11.2 Standard Samples The samples are provided by GEOSTATS of Australia. Standard samples are sent to monitor accuracy of the assay process on a batch by batch basis. These standard samples, which have known assay values for Ni are already pulverized (pulp) weighing about 5 grams contained in 7.5cm X 10cm heavy duty plastic bags, which are tightly sealed in packs. As more standards were later needed, pulverized samples contained in 250-gram bottles were purchased. Repacking into 5-grams was done in the MRL corehouse facility. One (1) standard sample is inserted for every batch of forty five (45) samples or 2% of total samples. Recently, the frequency of inserting standards was changed to 1 in every set of 40 samples, as discussed in Section 11.1.

9

11.3 Check Samples Selected pulp rejects from previously analyzed samples from Mcphar weree sent to one independent and internationally accredited laboratory (Intertek of Jakarta, Indonesia). This is to establish reproducibility of analysis and determine the presence or absence of bias between laboratories. Two percent (2) or about one in every 50 samples will be sent at a regular basis to have a constant check on Mcphar analysis. Samples are taken on all of the different laterite horizons.

An additional check sampling procedure was introduced in 2008. Sample intervals for future pulp rejects were randomly selected, approximately one in every 40 samples and were pre-numbered. As agreed in the sample preparation protocol, splits of all pulps are prepared by Intertek in its Surigao facility. MRL then collects all of these split pulps and discreetly inserts pre-selected ones into their pre-assigned numbers before the whole batch is sent to Intertek laboratory in Manila. These pulp rejects are therefore analyzed in the same batch as its source. A total of 122 pulp rejects (3.11 %) were inserted out of 3,924 samples analyzed in Intertek. 12. Bulk Density and Moisture Content Determination The bulk density and moisture content is essential in ore reserves estimation. There are several alternatives of measuring density, ranging from laboratory test on small scale sampling and estimation based on bulk sampling. Two methodologies are to be undertaken by Mindoro for the determination of Bulk Density (BD). For the ferruginous laterite and limonite horizons, bulk samples are collected from test pits and measured on site. The same procedure will be done for the saprolite zone but to be supplemented with another method, i.e., the collection and measurement of drill core samples. The test pits are designed with an optimal dimension of 0.9m x 1.4m with the wider section oriented in the north-south direction. Old test pits, on the other hand, have dimensions of 0.7m x 1.2m. The narrower side is extended by0.5m extension to expose a fresh wall for the sampling. For BD measurements to be done on site, large samples ranging in volume from 0.005 m3 to 0.08 m3 will be collected from test pits. The locations of these test pits must be distributed around the drilling area. To secure representative samples for the BD tests, small pits or “boxes” and channels will be excavated or chiseled into test pit walls. Pre-fabricated plywood with square holes measuring 0.40m x 0.40m and 0.20m x 0.20m are used as guides in excavating and chiseling of the pit faces to ensure volume accuracy. The plywood guides are then nailed to the pit walls to be sampled. Once nailed, chiseling of the area outlined by the plywood guide begins from the center of the “boxes” chipping towards the “boxes’” boundaries. To ensure consistency of the volume excavated, knife putties are used to smoothen the edges of the “box”. Level bars and square boxes are regularly utilized to achieve a more or less perfect sampling dimension desired. The chipped samples chiseled from the box falls freely onto a clean canvass placed at the bottom of the pit. There were instances that the final dimension of the excavation in the pit walls became irregular due to the presence of boulders or rocks that were hard to chisel. In such cases, the final dimension was determined by carefully measuring the height, width and breadth. These were done by MRL geologists themselves in conjunction with their test pit logging. The bulk samples will be measured for volume, wet weight, and dry weight. The samples are to be contained in plastic bags and weighed using a 16-kg capacity, Korean made (“Choongang” brand), “Ohaus”-type single beam field weighing balances equipped with a 5-gram graduation beam. The weighing scales are placed in tables exclusively used for this purpose. The weighing instruments are cleaned and calibrated regularly. The

10

weight of the plastic bags are to be subtracted from the weighed samples to arrive at the actual weight of the samples. After determining the wet weight, the samples will be spread evenly in a canvass and sun-dried for initial drying. Thence, these samples will undergo heating in constructed fire wood/charcoal-fired heating facilities for four to six hours. The samples should be regularly “stirred” to ensure even drying. The dried samples are cooled naturally for about 20 minutes, after which they are collected onto plastic bags for final weighing. The BD and moisture content are computed with the following formulas.

Weight (kg) Bulk Density = _______________ ÷ 1000 (kg/ton) Volume (m3)

Weight wet – Weight dry % Moisture Content = __________________ x 100

Weight wet

For the drill cores, relatively unbroken portions of 10cm-20cm lengths are selected from drill holes that are spatially well-distributed. The samples are to be coated in paraffin wax to preserve the moisture. These are then dispatched to McPhar Laboratories wherein the samples will be measured using the water displacement method. It is standard practice for Mcphar to check the wax coating and perform re-waxing if needed. At Mcphar, the volume of the core is measured by displacement in a graduated cylinder or by water displacement. The wax is then removed, and the core is weighed (wet). Thence, the sample is oven-dried and then re-weighed (dry) to be able to calculated the free moisture content. 13. Documentation Before the cores are logged the undisturbed core are photographed first to show visual presentation of the core samples. Three (3) core boxes at a time are placed on the core stand. The header of this core stand shows the drill hole number and core box numbers. Significant intercepts and other relevant activities deemed necessary for documentation are also photographed. 14. Data Management The data entry is done in the field camp and MRL Surigao office but database maintenance and safekeeping is done at Surigao City office. Mindoro’s office has since been transferred to Butuan City (March 2008). To ensure the security of the data, both digital and hard copies of datasets and field sheets are likewise maintained in Mindoro’s main office in Makati City. Since errors are introduced through incorrect transcription of physical field data, all entries of data into the computer are done by geologists especially the core logging and sampling data and by our GIS, Arnold Joyno. Assay results are entered electronically from digital Excel files e-mailed by the laboratories. Once the datasets are with the Data Management Unit in Makati City, the entries are again re-checked for consistency vis-à-vis the hard copies. These are also checked for possible logical errors.

11

MRL GOLD PHILIPPINES, INC.


DRILLING ACTIVITY

Drill Hole No. Location Rig Rig Type

AGL 2007-29 9950N/9550E YBM-01

Date Started Date Completed Core Checker

4/14/2007 4/22/2007 Alfie P. Agda

Date Time Activity

From To 4/14/2007 6:56 8:44 start pull out MW casing rod/ set-up 4/14/2007 8:44 9:50 dismantle engine & tripod / set-up 4/14/2007 9:50 11:05 hauling rig and accessories/ set-up 4/14/2007 11:05 1:20 Lunch break 4/14/2007 1:20 4:58 assemble engine and side pump & tripod/ set-up 4/14/2007 4:58 7:00 End of shift 4/15/2007 7:00 7:20 continue set-up 4/15/2007 7:20 7:45 maintenance check up 4/15/2007 7:45 7:55 start drilling run from 0 to 45m 4/15/2007 7:55 8:00 continue from 0.45m to 0.50 total bottom 0.95m 4/15/2007 8:00 10:46 continue drilling/back to normal operation 4/15/2007 10:46 2:00 Lunch break 4/15/2007 2:00 4:00 continue drilling 4/15/2007 4:00 End of shift 4/16/2007 7:00 11:00 casing 4/16/2007 11:00 3:00 continue drilling 4/16/2007 3:00 End of shift 4/17/2007 7:00 10:26 maintenance/ drilling 4/17/2007 10:26 10:40 drilling 4/17/2007 10:40 11:10 drilling 4/17/2007 11:10 1:15 lunch break 4/17/2007 1:15 1:20 drilling/ retrieve 4/17/2007 1:20 1:35 assemble wireline 4/17/2007 1:35 1:45 pull out NQ rods with core barrel 4/17/2007 1:45 3:00 drilling and retrieving of core 4/17/2007 3:00 casing 4/18/2007 7:40 8:04 start drilling run 0.30 rc 0.28 from 19.9m to 20.20m 4/18/2007 8:04 8:12 retrieve 4/18/2007 8:12 8:20 put down inner tube 4/18/2007 8:20 9:38 continue drilling 4/18/2007 9:38 9:43 retrieve 4/18/2007 9:43 9:50 put down inner tube put down inner tube 4/18/2007 9:50 10:44 drilling 4/18/2007 10:44 10:50 retrieve 4/18/2007 10:50 10:58 put down inner tube 4/18/2007 10:58 11:36 drilling 4/18/2007 11:36 11:50 retrieve 4/18/2007 11:50 11:55 put down inner tube 4/18/2007 11:55 1:25 lunch break

12

MRL GOLD PHILIPPINES, INC. AGATA NICKEL LATERITE PROJECT

BOREHOLE RECOVERY SHEET Drill Hole No. AGL 2007-29 Location 9950N/9550E Date Started April 14, 2007 Total Depth 34.0m Total Rec. 20.11 Date Completed April 22, 2007 Rig No. YBM-01 Core Checker Alfie P. Agda

Date Time Interval Core Run (m)

Core Rec (m) Core Rec % Lithology Comments From To

4/15/2007 7:55 0 0.45 0.45 0.34 75.55 OV

4/15/2007 8:05 0.45 0.95 0.5 0.34 68 OV

4/15/2007 8:35 0.95 1.95 1 0.73 73 OV

4/15/2007 8:45 1.95 2.95 1 1 100 OV

4/15/2007 9:05 2.95 4.05 1.1 1.1 100 OV/Lim

4/15/2007 9:30 4.05 5.55 1.5 1.5 100 OV/Lim

4/15/2007 9:50 5.55 6.85 1.3 1.3 100 Lim

4/15/2007 10:05 6.85 7.85 1 1 100 Lim

4/15/2007 10:30 7.85 9.35 1.5 1.4 93.33 Lim

4/15/2007 10:46 9.35 10.55 1.2 1.2 100 Lim

4/15/2007 2:00 10 55 11 75 1.2 1.06 88 33

4/15/2007 2:40 11.75 12.75 1 0.9 90

4/15/2007 3:10 12.75 13.45 0.7 0.33 47

4/15/2007 13.45 13.6 0.15 0.12 80

4/16/2007 10:00 13.6 13.8 0.2 0.15 75 Sap rock

4/16/2007 11:30 Lunch break

4/16/2007 1:00 13.8 14.8 1 0.43 43 Sap rock

4/16/2007 2:35 14.8 15.6 0.8 0.7 87.5

4/17/2007 7:00 15.6 16.5 0.9 0.63 70 Lim

4/17/2007 16.5 17.4 0.9 0.33 36.66 Lim

4/17/2007 8:00 12.4 10.2 0.8 0.73 91.25 Lim/sap

4/17/2007 9:25 18.2 18.3 0.1 0.1 100 Lim/sap

4/17/2007 10:30 18.3 18.8 0.5 0.5 100 Sap rock

4/17/2007 11:01 18.8 18.85 0.05 0.05 100 Shz

4/17/2007 18.85 19.45 0.55 0.55 91.66 Shz

4/17/2007 19.45 19.9 0.41 0.41 91.1 Sap rock

4/18/2007 8:12 19.9 20.2 0.3 0.28 93.3 Sap rock

4/18/2007 9:43 20.2 20.85 0.65 0.45 69.23 Sap rock

4/18/2007 10:50 20.85 21.5 0.65 0.62 95.38 Sap rock

4/18/2007 11:50 21.5 22 0.5 0.5 100 Sap rock

4/18/2007 1:43 22 22.1 0.1 0.1 100 Sap

4/18/2007 3:35 22.1 22.6 0.1 0.5 100 Sap rock

4/18/2007 4:35 22.6 23.2 0.6 0.54 90 Sap rock

4/18/2007 5:55 23.2 23.85 0.65 0.65 100 Sap rock

4/19/2007 9:05 23.85 24.55 0.7 0.64 91.42 Sap rock

4/19/2007 9:45 24.55 24.75 0.2 0.17 85 Sap

4/19/2007 11:05 24.75 25.3 0.55 0.47 85.45 Sap rock

13


AGATA NICKEL LATERITE PROJECT DRILL HOLE LOG SHEET

Drillhole No: AGL-2007-01 Date started: 2/22/2007 Location: Lawigan, Tubay, Agusan del Norte Date completed: 2/27/2007

Co-ordinate E: 9400 Remarks; HOLE TERMINATED Co-ordinate N: 10200 Drilling Co.: CDSI

Collar elevation: 293.2m Logged by: RTV

Final Depth: 15.02m Date logged: 2/27/2007

Hole_ID Sample _ID From To Litho Colour Wth %

Rock Rock Size

% Rec Comments

AGL 2007-01 1 0 1 LF DBr,Br 6 57 w/ organics

AGL 2007-01 2 1 2 LF DBr,Br 6 71

AGL 2007-01 3 2 3 LF/LA Br,LBr 6.5F 72 32% LF

AGL 2007-01 4 3 4 LA Br,LBr 5F 67

AGL 2007-01 5 4 5 LB Obr,Yor 5F 68 Mn traces

AGL 2007-01 6 5 6 TM Obr,Yor 5,4 47 Limonite

AGL 2007-01 7 6 7.25 TM Obr,Yor 5,4 68 Saprolite

AGL 2007-01 8 7.25 8 TM YG,Obr,GY 5,4,3,2 6 55 80% Saprolite, 10% Saprolitic Rock

AGL 2007-01 9 8 9.27 S_ROCK YG,Obr,GY 5,4,3,2 78 55 Saprolite @8.50-8.77M

AGL 2007-01 10 9.27 10.2 SAP Br,Ybr,YG,Obr 5,4,3 2 68

AGL 2007-01 11 10.2 11.2 S_ROCK Br,Ybr,YG,Obr 5,4,3 3 38

AGL 2007-01 12 11.2 12.2 SAP Br,Ybr,YG,Obr 5,4,3 1 54

AGL 2007-01 13 12.2 13.2 SHz Bl,Gy,Yor 0,1 82 80 Vuggy silicified fragments @12.82-13.02

AGL 2007-01 14 13.2 14.2 SHz Bl,GY 0,1 100 100 Bedrock

AGL 2007-01 15 14.2 15.02 SHz Bl,GY 0,1 100 100

14



SAMPLE PREPARATION SHEET

Hole ID Sample No.

Depth (m) Sample

Weight Lithology Remarks

From To wet dry AGL 2007-01 1 0 1 17751 1.5 1.3 LF AGL 2007-01 2 1 2 17752 2.1 1.75 LF AGL 2007-01 3 2 3 17753 1.9 1.5 LF/LA AGL 2007-01 4 3 4 17754 1.6 1.3 LA

AGL 2007-01 5 4 5 17755 1.35 0.95 LB AGL 2007-01 6 5 6 17756 0.7 0.6 TM_LIM AGL 2007-01 7 6 7 17757 1 0.8 TM_SAP AGL 2007-01 8 7 8 17758 1.6 14 R_SAP AGL 2007-01 9 8 9.25 17759 1.6 1.5 S_ROCK AGL 2007-01 10 9.25 10.27 17760 2.1 1.8 SAP AGL 2007-01 11 10.27 11.27 17761 0.6 0.5 S_ROCK AGL 2007-01 12 11.27 12.27 17762 1.3 1.25 SAP AGL 2007-01 13 12.27 13.27 17763 3.75 3.7 SHZ AGL 2007-01 14 13.27 14.27 17764 4.9 4.8 SHZ

AGL 2007-01 15 14.27 15.02 17765 3.95 3.9 SHZ

15

M R L G O L D P H I L S . , I N C .

TRANSMITTAL RECEIPT FOR COURIER

DATE : March 29, 2007

ATTENTION: LBC Express, P. Burgos St., Butuan City Please acknowledge

receipt of the following (in duplicate copies):

1 Crate #1 (28 bags) 55 kg. Tracking no. 6019694795 2 Crate #2 (25 bags) 62 kg. Tracking no. 6019694617 3 Crate #3 (27 bags) 66 kg. Tracking no. 6019694637 4 Crate #4 (26 bags) 74 kg. Tracking no. 6019694735 5 Crate #5 (22 bags) 44 kg. Tracking no. 6019695586 6 Crate #6 (15 bags) 35 kg. Tracking no. 6019694775 Dispatched by: Danilo F. Odtojan Date and time: 3/29/07 5:40 pm

Delivered by: Danilo F. Odtojan Date and time: 3/29/07 5:40 pm

Received by: (LBC personnel) Rico A. Orjansa Date and time received: 3/29/07 5:40 pm

Please use separate sheet when necessary.

D:\MRL-SURIGAO PROJECT\DOCUMENTS\FORMS\LBC_BXU_TR_24Mar07.doc

Eledia Apt., Tuazon Village, Barangay Luna, Surigao City Telefax No.: (6386)826-2658 • www.mindoro.com

16

Form No. SMP - 001

SAMPLE SUBMISSION FORM TO : McPhar Assay Laboratory BJS Compound 1869 P. Domingo Street Makati, Metro Manila

Tel. No. 896-1656 / 896-1681 / 896-7973 Fax No. 890-0290 email [email protected]

FROM : MRL Gold Phils., Inc. Unit 17b, Pearl of the Orient Bldg. 1318 Roxas Blvd. corner P. Faura, Ermita Manila Elidia Apt., Tuazon Vill., KM.3, Surigao City

Tel. No. 02 5258869 / 086 8262658 Fax No. email No. of Samples: 195 CORE DISPATCH No. 2007 AGL 02

SAMPLE DESCRIPTION NO. SAMPLE TYPE

PREPARATION INSTRUCTIONS

SEE McPHAR REF. DOC NO. SMP-003 SECTIONS

SP1 TO SP9

ELEMENTS REQUIRED

ASSAY METHOD(S) SEE McPHAR REF. DOC NO. SMP-003

OTHER INSTRUCTION

Box # 1

17894 - 17910 17 core

Ni, Co, Fe, Mg and Al,

Dissolving a 25g: charge with a two acid digest. (using hydrochloric and nitric acid) and reading the results by atomic absorption spectroscopy (AAS)

Box # 2

17911 - 17937 27 core

Box # 3

17938 - 17960 23 core

Box # 4 17961 - 17988 28 core

Si Si Analysis by a gravimeter process.

Box # 5

17989 - 17800 12 core

17501 - 17519 19 core

For Density Analysis : After Density Analysis return to tag no. From : 17585 back to 17563 17586 back to 17565 17587 back to 17570 17588 back to 17581

Box # 6 17520 - 17545 26 core

Box # 7

17546 - 17562 17 core

Box # 8 Note : All samples must be analyzed for the 6 elements as indicated 17563 - 17588 26 core

Reporting Send results and invoice to person indicated below Send results and invoice to : Fax results to :

E-mail : [email protected]/[email protected]

Submitted by Ferland Tagura Date 14-Apr-07

TEL: 896-1656; 896-1681; 896-7973 FAX: (63-2) 815-8195; (63-2) 761-2080 FAX: (63-2) 890-0290 e-mail: [email protected] email: [email protected]

Economy & Finance

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