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Holes RC-05, RC-06 and RC-07 (Buzz C) were drilled on an approx. 110 metre long east-west section to the west of Key-09. Hole RC-05 intersected two intervals with anomalous silver (Table 1). The hole is anomalous throughout in zinc.

Holes RC-11 and RC-14 (Buzz A), were drilled to test a peak gold-in-soil anomaly of 0.34 g/t gold. RC-14 intersected several intervals of significantly anomalous molybdenum (Table 1) which correlate well with the molybdenum intersections in Key-07(1) approx. 200 metres to the south. RC-11 also intersected anomalous, but lower, molybdenum and copper values.

The multi-element soil anomalies appear to be mapping bedrock mineralization. Important drill targets remain to be drill tested.

(1)News Release of May 9, 2011

SGN Anomaly

The SGN gold-in-soil anomaly extends south from Good News Lake for approximately 2,000 metres. The anomaly ranges in width from approx. 380 metres in the north to approx. 200 metres in the south. Induced polarization survey lines were completed at three locations to position the anomaly for drill testing. Line 1was surveyed at the northern limit of the anomaly at Good News Lake. Lines 2 and 3 were surveyed further south. The data indicates an east dipping structure. The shape of the soil anomaly appears to be a product of a glacial transport direction from the southwest intersecting an east dipping, north to northwest trending structure.

The induced polarization survey on Line 1 indicated a coincident strong chargeability and resistivity anomaly, approximately 550 metres wide, just north of peak gold-in-soil values of 0.42 g/t and 0.14 g/t gold. Holes RC-15 and RC-16 were collared approx. 190 metres apart and drilled westerly to test the anomaly. Hole RC-15 intersected variably bleached and altered andesitic volcanics carrying disseminated pyrite (trace to greater than 5%) and disseminated and net textured magnetite (trace to 2%) from surface to 62.48 metres. The hole cut two intervals of anomalous gold +/- silver (Table 1). Hole RC-16 intersected quartz veining, silicification and haematization in bleached and pyritic (trace to 2%) andesitic volcanics from 9.14 metres to the end of the hole at 70.10 metres. The interval 10.67 to 45.72 metres contains anomalous gold values (Table 1). The interval 22.86 to 45.72 metres also carries anomalous silver values.

The two holes were not drilled in the best part of the anomaly which is between 300 - 400 metres to the south. Here, peak gold-in-soil values are 0.25 to 0.50 g/t, and there is gold (0.22 g/t), silver (14.3 g/t) and tungsten (260 ppm) in a surface sample(2).

Blue Anomaly

The Blue anomaly comprises a trend of gold-in-soils that initially trends to the north and then arcs to the northeast across the East Fault. This orientation approximates the orientation of the Blackwater gold deposit. Currently, no controlling structure is recognized.

Hole RC-01 was drilled to test a coincident chargeability high and a copper- and gold-in-soil anomaly. It intersected 1.34 g/t silver and 0.12% copper over 23.17 metres in hornfelsed and sulphidized felsic to mafic volcanics, locally displaying quartz veinlets and trace disseminated chalcopyrite. RC-02 was collared approx. 500 metres north of RC-01 to test a gold-in-soil anomaly on the East Fault. It intersected a narrow interval of anomalous gold starting at 4.57 metres in pyritic micro-diorite (Table 1).

P1A Anomaly

The P1A VTEM anomaly is located on the GN Fault in an area of rugged topography. Holes RC-12 and RC-13 tested the anomaly. The two holes intersected andesitic volcanics carrying disseminated and veinlet controlled minor magnetite and pyrrhotite as well as trace pyrite. Both holes intersected anomalous zinc but no anomalous gold or silver values (Table 1).