FRACTION FRACTION MINERAL CLAIM QUEEN BESS RIDGE AREA, SANDON, B.C SLOCAN MINING DIVISION NTS 82F/14W LATITUDE 49°59'N LONGITUDE 117° 16'W

BC Geological Survey Assessment Report 31098

LOCKE B. GOLDSMITH, P.Eng., P.Geo. CONSULTING GEOLOGIST Owner, Operator SEPTEMBER 21,2009 Event # 430346$

TABLE OF CONTENTS SUMMARY

1

INTRODUCTION

2

GEOLOGY

2

SOIL GEOCHEMISTRY

3

LOCATION MAP, Fig 1

4

CLAIM MAP, Fig 2

5

GEOLOGY AND Ag-Pb SOIL GEOCHEMISTRY, Fig 3

6

CONCLUSIONS

7

RECOMMENDATIONS

7

COST ESTIMATE

7

ENGINEER'S CERTIFICATE

8

REFERENCES

9

COST STATEMENT, 2009 PROGRAM APPENDIX: GEOCHEMICAL ANALYTICAL PROCEDURES GEOCHEMICAL ANALYSES STATEMENT OF WORK

10

1

GEOLOGY AND SOIL GEOCHEMISTRY FRACTION FRACTION MINERAL CLAIM QUEEN BESS RIDGE AREA, SANDON, B.C SLOCAN MINING DIVISION NTS 82F/14W

SUMMARY Outcrop was not observed within the claim. Soil appears to be partly glacial outwash of sand and rounded pebbles. Gray silt with angular argillite fragments may be derived from subcrop. Soil geochemistry identified threshold values of lead near the western boundary of the claim. Soil sampling at 25 m spacing should be completed over the claim at an estimated cost of$2500.

2 INTRODUCTION The Fraction Fr. claim is located on the northeastern-facing slope of Queen Bess Ridge, approximately 6 km east-southeast of New Denver, B.C. Access is via paved Highway 31A east of New Denver for 8 km to Three Forks, thence southeasterly on a gravel road for 5 km to Sandon, and for approximately 9 km on a maintained dirt road which leads to the Idaho Peak Lookout parking lot. At 9 km a dirt road departs northwesterly along the crest of Queen Bess Ridge and passes approximately 80 m southwest of the southern boundary of the Friction Fraction mineral claim. Elevation within the claim ranges from 1660 to 1730 metres. Logging has occurred since the claim was staked; the claim post could not be found. The Queen Bess mine is located 0.7 km to the west. Name Fraction Fr

Record Number 256054

Issue Date Aug 15, 1984

Good To Date Aug 15,2019

No history of exploration or production is known from within the claim.

GEOLOGY The area of the claim is underlain by rocks of the Upper Triassic to Lower Jurassic Slocan Group, a package of argillites, quartzites, shales, and limestones, with subordinate tuffaceous argillite and tuff beds. Northwesterly-trending folds have both southwesterly and northeasterly dipping axial planes. Through-going fault (lode) zones which have provided open spaces for fissure fillings of economic concentrations of silver-lead-zinc mineralization trend northeasterly and dip southeasterly. Transverse fractures and breccia zones between the fault zones also host deposits. Outcrop was not observed within the area of the grid. Geological mapping of soil indicates that horizons or channel fills of sand and rounded exotic pebbles of transported glacial outwash are interspersed within silt and angular argillite fragments that appear to be derived from subcrop. During 1988 dozer trenching on the crest of Queen Bess Ridge approximately 70 m to the west and upslope of the Fraction Fr claim exposed depths of +5 metres of glacial material without reaching bedrock. The Geology and Soil Geochemistry Map (Fig 3) shows the location of soil types.

3 Mineralization was not observed on the claim. A mineralized strand of the Queen Bess - Palmita lode that was detected in 1988 by soil geochemistry crosses the ridge 300 metres to the northwest of the claim.

SOIL GEOCHEMISTRY Grid lines were oriented parallel to the southern boundary of the claim at Az 125°. Fourteen samples were collected at 50 m intervals with a narrow elongate spade from depths of 30 - 45 cm below organic debris. Multiple ICP analyses were completed by Acme Labs Ltd. of Vancouver, B.C. The following table displays geostatistics concerning metal abundance derived from lognormal probability plots. Many years of soil sampling results over Slocan Group rocks have been compiled into this information. Ag

Pb

ppm

ppm

150

Zn ppm Possibly two populations >980

Threshold values of Pb (53.9 & 48.5 ppm) are present at 0+00 on both L-0+00 and L 0+25E. It is possible that the response is related to the Black Colt lode on which AgPb-Zn mineralization has been explored and mined approximately 500 m to the northeast. Otherwise metal values are at background levels.

4

Fraction Fr Mineral Claim Queen Bess Ridge, B.C. SLOGAN MINING DIVISION NTS82F/14W

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To accompany report by LB. Goldsmith, P.Eng., P.Geo

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82F.094

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Figure 3 Scale: 1:2,000 center: 49° 59' 8.4" N, 117° 16' 15.3" W This map is a user generated static output from an Internet mapping site and is for general reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION.

Notes: Soil Geochemistry July 2009

7

CONCLUSIONS Soil geochemistry indicates that a lode structure may be concealed in the western portion of the claim. RECOMMENDATIONS Soil geochemical sampling on 25 m spacing should be completed. COST ESTIMATE A budget of $2500 should be available for field work and analyses.

Locke B. Goldsmith, P.Eng., P.Geo. Consulting Geologist Vancouver, B.C., September 21, 2009

8

ENGINEER'S AND GEOLOGIST'S CERTIFICATE LOCKE B. GOLDSMITH, P.GEO., P.ENG.

1.1, Locke B. Goldsmith, am a Registered Professional Engineer in the Provinces of Ontario and British Columbia, and a Registered Professional Geologist in the Province of British Columbia and the States of Oregon, Minnesota, and Wisconsin. My address is 401-545 Clyde Ave., W. Vancouver, B.C. My occupation is that of Consulting Geologist. 2.1 have a B.Sc.(Honours) degree in Geology from Michigan Technological University, a M.Sc. degree in Geology from the University of British Columbia, and have done postgraduate study at Michigan Technological University and the University of Nevada. I am a member of the Society of Economic Geologists and the AIME. 3.1 have been engaged in mining exploration for the past 51 years. 4.1 have written the report entitled "Geology and Soil Geochemistry, Fraction Fraction Mineral Claim, Queen Bess Ridge Area, Sandon, B.C", dated September 21,2009. The report is based on field work and research performed by the author. 5.1 own 100% of the property.

Locke B. Goldsmith, P.Eng., P.Geo. Consulting Geologist Vancouver, B.C. September 21,2009

9

REFERENCES Cairnes, C.E., 1935. Descriptions of Properties, Slocan Mining Camp, B.C. G.S.C. Memoir 184. Hedley, M.S., 1952. Geology and Ore Deposits of the Sandon Area, Slocan Mining Camp, British Columbia. B.C. Department of Mines, Bulletin No. 29.

10

COST STATEMENT, 2009 PROGRAM Personnel L.B. Goldsmith, lA July 14, July 23, total 1 Vi days @ $924/day

$1386.00

C. de Jong, V2 July 14 @ $236.25/day

118.13 1504.13

$1504.13

Food, Accommodation Total cost of $131.60 + 1 man day

131.60

= $131.60/man/day Transportation 4x4 vehicle, >/2 vehicle day @ $ 134.90/day

67.45

Supplies Sample bags, flagging

9.53

Analyses 14 soil samples @ $16.80/sample

235.20

Report Drafting, word processing, photocopies, scans, prints Total

422.91 $2370.82

APPENDIX

)

AcmeLabs

Acme Analytical Laboratories (Vancouver) Ltd.

Submitted By:

Locke Goldsmith

1020 Cordova St. East Vancouver BC V6A 4A3 Canada

Receiving Lab:

Canada-Vancouver

Phone (604) 253-3158 Fax (604) 253-1716

Received:

July 20. 2009

Report Date:

July 28. 2009

www.acmelab.com

1 of 2

VAN09003002.1

CERTIFICATE OF ANALYSIS CLIENT JOB INFORMATION Project:

Fractic

Shipment ID: P.O. Number Number of Samples:

14

SAMPLE PREPARATION AND ANALYTICAL PROCEDURES Method

Number of

Code

Samples

Code Description

SS80

14

Dry at 60C sieve 10Og to -80 mesh

Dry at 60C

14

Dryat60C

1DX

14

1:1:1 Aqua Regia digestion ICP-MS analysis

Test

Report

Wgt (g)

Status VAN VAN

0.5

SAMPLE DISPOSAL ADDITIONAL COMMENTS STOR-PLP

Store After 90 days Invoice for Storage

DISP-RJT

Dispose of Reject After 90 days

Lab

Acme does not accept responsibility for samples left at the laboratory after 90 days without prior written instructions for sample storage or return.

This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only. All results are considered the confidential property of the client. Acme assumes the liabilities for actual cost of analysis only. " " asterisk indicates that an analytical result could not be provided due to unusually high levels of interference from other elements.

Completed

VAN

AcmeLabs

Acme Analytical Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada Phone (604) 253-3158 Fax (604) 253-1716 www.acmelab.com

Project:

Fractic

Report Date:

July 28, 2009

Page:

2 of 2

Part

CERTIFICATE OF ANALYSIS Method Analyte Unit MDL

WGHT Wgt kg 0.01

1DX Mo ppm 0.1

0.2

8.8

3.0

0.2

28.2

8.4

0.7

9.5

3.3

380

53.9 11.9 29.1 —28.1

37

2.2

137

17.5

22.0

52

FR L0+0O-1+00S

Soil

1.1

—

1DX Co ppm 0.1

Ag ppm 0.1

1.1 - —

1DX Ni ppm 0.1

1DX Zn ppm 1

Soil Soil

VAN09003002.1 10X Pb ppm 0.1

1 FRLO+00-0+00 LERXa+0Q«0+50S

1

1DX Cu ppm 0.1

1DX

1DX Mn ppm 1

0.01

171

1.17

14.1

0.2

2.3

1.2

4

0.4

0.9

0.6

21

262

3.17

6.0

0.4

8.3

5.4

4

0.4

1.0

0.4

18

o.oa

3.57

3.9

0.7

-■ "'-';

1DX Mo

Part

1DX Ni

1DX Co

ppm 0.1

ppm 0.1

1DX Mn ppm 1

1DX Fe

1DX As

%

1DX Au

1DX Th

0.01

ppm 0.5

1DX U ppm 0.1

ppb 0.5

ppm 0.1

1DX Sr ppm 1

1DX Cd

1DX Sb

1DX Bi

1DX V

1DX Ca

ppm 0.1

ppm 0.1

ppm 0.1

ppm 2

% 0.01

0.001

1DX{

•/JH

I Reference Materials STDDS7

Standard

21.2

107.1

65.9

383

1.0

56.5

9.4

651

2.41

48.3

4.6

49.0

4.0

73

6.4

4.5

4.4

84

0.96

0.07^

STDDS7

Standard

21.7

104.5

69.0

400

1.0

58.2

9.5

652

2.47

52.2

4.7

61.4

4.0

73

6.3

5.6

4.2

80

0.91

0.079

20.5

109

70.6

411

0.9

56

9.7

627

2.39

48.2

4.9

70

4.4

69

6.4

4.6

4.5

84

0.93

o.od