Ann: High-Grade Rock Chip Results on Niou Project, page-4

Appendix 1A. Describes how the samples where taken and how.

I briefly, repeat briefly worked at ALS Canada in Vancouver and saw hundreds of bags of samples come in. They are crushed, melted and samples in ppm recorded for the customer. Comprehensive drilling program takes a little while. I would assume in this case rock sampling will give them a priority for drilling. Two good rock sampling results in the north look good and would be encouraging BUT the off the chart southern 34g/t hit looks fantastics and probably will be revisited in depth. From fault lines that run north-east to south-west it maybe that there are two separate locations or one larger deposit as both results are north south generally of each other.

I am happy either way and awaiting further positive results.