Mountain of Gold Project

Mountian of Gold Phase II Underway

• Extensive ground geophysics completed in Dabolava East and adjoining areas.
• Extensive Geochemical studies, mapping and sampling programs at Dabolava East and along the MOGS trend.
• Targeting and drill pad preparation completed in Dabolava East and along MOGS trend for Phase II diamond drilling. 8 distinct zones targeted.
• A minimum of 3000 Metres of Diamond Drilling Planned, with initial focus on Dabolava East, utilizing our newly acquired Christensen CS 14 Core Drill manufactured by Atlas Copco in Sweden

The project is located in the Dabolava region of the Central-West Plateau of Madagascar. The Company’s license in this region encompasses approximately 1825 sq. km. situated 125 air miles west-southwest of the capital city of Antananarivo, in the provinces of Toliary and Antananarivo.

The Phase 2 Program is designed as a follow-up to its recent discovery of a permissive zone of dilation hosting high-grade gold mineralization along the 10km. Mountain of Gold shear system. The current program is intended to generate focused drill targets to expand the zone of initial discovery at Dabolava East and to identify other similarly permissive zones along the trend. Phase 1 diamond drilling at that site yielded significant "discovery" intercepts, including 4.3 m @10.52 g/t Au and 17.2 m @ 4.04 g/t in holes DE-D-004 and DE-D-006 respectively, approximately 110 meters apart.

The significant drill results from Phase 1 confirm a permissive structural environment along with a strong gold-sulphide association. Accordingly, further geochemical and magnetic studies are now being undertaken along the Mountain of Gold shear system to define additional drill targets for the Phase 2 diamond drilling program. The present work program is being overseen by Andre J. Audet, P.Eng.

The Company has identified a strong relationship between gold-sulphide mineralization and disseminated magnetite at the Dabolava East zone. Magnetite appears to be related to the metamorphic transformation of earlier carbonate alteration generated by a substantial center of hydrothermal activity. Accordingly, the Company has now commenced a detailed ground magnetometer survey and a limited IP (induced polarization) survey that will test the key 2 km by 3km zone of known gold mineralization. Magnetic patterns associated with gold mineralization will be investigated on a 50 by 12.5 meter grid with a survey totalling approximately 50 line kilometres. Within this area, a minimum of 20 line km of IP survey will also be conducted on selected targets to investigate the distribution of disseminated sulphides and magnetite related to the shear-hosted gold mineralization. The program will be extended to prospective ground beyond the boundaries of this initial discovery zone in Dabolava East as deemed warranted.

In addition to the detailed ground magnetic and induced polarization studies being conducted in the Dabolava East zone, the Phase 2 Program will also include exploration of the entire prospect area along the Mountain of Gold shear system by means of stream sediment geochemistry and where applicable, by shallow mechanized auger drilling. The Company also plans to conduct a broad-based exploration program on the remainder of its 40 km by 60 km Dabolava tenement to identify other potentially productive zones for drilling. A combination of geochemical techniques and traditional prospecting methods will be utilised as conditions warrant. Limited geophysical surveys may be conducted on targets generated by this phase of exploration. The Company anticipates commencing its Phase 2 diamond drilling program comprising approximately 3000 metres of drilling upon completion of the targeting work.