Annual exploration report ERL 89 for period ending 18 September 2010 Big Howley, Burnside Project

Abstract

ERL 89 is located in a close proximity to the Howley project and having significant high grade gold resource, which can increase substantially with further exploration. During the reporting period, a drilling program was undertaken. It involved drilling of 3 RC holes for a total of 342 meters to test additional resource in the project area. In addition, 342 chip samples retrieved during drilling were assayed for gold. Drilling program intersected some significant intercepts of gold mineralisation which show the potential of ERL 89. Additional drilling can increase the resource base which will add to resource base already determined for the Howley Project area. An exceptional intercept of 1 m at 3-4 m depth was recorded with a grade of 6.15 g/t in BHRC025. In the same drill hole another intercept of 1 m at 49-50 metres depth was intercepted which has gold grade of 3.13 g/t. BHRC025 also contains a number of other intercepts at various stratigraphic horizons. BHRC027 also recorded some significant intercepts particularly at a depth of 44-45 meters which has a grade of 2.95 g/t. Other activities included: a reconnaissance visit, technical review of the tenement, planning for up-coming field season and report writing and tenement management activities.