Prospecting Report on the Kate Project

BC Geological Survey Assessment Report 32014

Omineca Mining Division Tenure Number: 654889

NTS: 093E/11W Latitude 55° 36’ N Longitude 127° 22’W UTM Zone: 09 (NAD83) Northing: 5940375 Easting: 607732 Work performed September 18, 2010 By Ken Galambos and Nicole Pinkerton

For Ken Galambos 1535 Westall Ave. Victoria, British Columbia V8T 3G6

Ken Galambos, P.Eng. KDG Exploration Services 1535 Westall Ave. Victoria, British Columbia V8T 3G6

February 9, 2011

1.0 EXECUTIVE SUMMARY On September 18, 2010, Ken Galambos and Nicole Pinkerton flew to the property from the nearby camp at Coles Creek to conduct an appraisal of the property. Access was gained by Astar-B2 helicopter, on hire from Canadian Helicopters from Smithers, BC and based at the Coles Creek camp. The main creek bisecting the property was prospected over approximately 1.6km from the contact between the lower Cretaceous sediments and volcanics below the Price showing to as high up the left fork as was possible during the one day visit. The Price showing was not located during the brief visit to the property but sulphide mineralization hosted by north-easterly trending shear zones to the west was sampled. It is not clear if this mineralization was previously sampled. .

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Table of Contents Page 1.0 Executive Summary................................................................................................ i 2.0 Introduction and Terms of Reference................................................................... 1 2.1 Qualified Person and Participating Personnel.......................................................... 1 2.2 Terms, Definitions and Units..................................................................................... 1 2.3 Source Documents................................................................................................... 1 2.4 Scope........................................................................................................................ 2 3.0 Property Description and Location....................................................................... 2 3.1 Location and Access................................................................................................. 2 3.2 Physiography and Climate........................................................................................ 2 3.3 Land Tenure..............................................................................................................5 4.0 History......................................................................................................................5 5.0 Geological Setting...................................................................................................6 5.1 Regional Geology......................................................................................................6 5.2 Property Geology.....................................................................................................10 6.0 Mineralization.........................................................................................................10 7.0 Previous Exploration.............................................................................................11 7.1 Sampling Method and Approach..............................................................................11 7.2 Sample Preparation, Analysis and Security.............................................................11 7.3 Sample Results........................................................................................................11 8.0 Current Exploration Program...............................................................................12 8.1 Prospecting Survey Method and Approach.............................................................12 8.2 Sample Preparation, Analysis and Security............................................................ 12 8.3 Prospecting Survey Results.................................................................................... 13 9.0 Interpretation and Conclusions........................................................................... 13 10.0 Recommendations and Budget......................................................................... 14 11.0 References.......................................................................................................... 15 12.0 Statement of Costs............................................................................................. 16 13.0 Certification, Date and Signature...................................................................... 17 14.0 Software used in the Program........................................................................... 18 15.0 Appendices..........................................................................................................19 Appendix A – Assay Certificates Appendix B – Analytical Procedures and Detection Limits List of Illustrations Figure 1 Property Location map......................................................................................3 Figure 2 Property Claim map.......................................................................................... 4 Figure 3 Regional Geology map..................................................................................... 6 Figure 4 Property Geology map.................................................................................... 10 List of Tables Table 1 Claim Data......................................................................................................... 5 Table 2 Regional Geology Legend................................................................................. 8 Table 3 Sample Descriptions........................................................................................ 12 List of Photographs Plate 1 View looking up the left fork of creek above the Price showing.......................... 2 Plate 2 Google image looking north showing the approximate claim coverage..............5 Plate 3 Creek bed beneath snow pack above Price showing....................................... 13

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2.0 INTRODUCTION AND TERMS OF REFERENCE 2.1 Participating Personnel This report describes the property and is based on historical information and an examination and evaluation of the property by Ken Galambos and Nicole Pinkerton on September 18, 2010. 2.2 Terms, Definitions and Units  All costs contained in this report are denominated in Canadian dollars.  Distances are primarily reported in metres (m) and kilometers (km) and in feet (ft) when reporting historical data.  GPS refers to global positioning system.  Minfile showing refers to documented mineral occurrences on file with the British Columbia Geological Survey.  The term ppm refers to parts per million, equivalent to grams per metric tonne (g/t).  ppb refers to parts per billion.  The abbreviation oz/t refers to troy ounces per imperial short ton.  The symbol % refers to weight percent unless otherwise stated. 1% is equivalent to 10,000ppm.  Elemental and mineral abbreviations used in this report include: arsenic (As), copper (Cu), gold (Au), lead (Pb), molybdenite (Mo), silver (Ag), zinc (Zn), pyrite (Py) chalcopyrite (Cpy) and pyrrhotite (Po). 2.3 Source Documents Sources of information are detailed below and include the available public domain information and private company data.  Research of the Minfile data available for the area at http://www.empr.gov.bc.ca/Mining/Geoscience/MINFILE/Pages/default.as px  Research of mineral titles at https://www.mtonline.gov.bc.ca/mtov/home.do  Review of company reports and annual assessment reports filed with the government at http://www.empr.gov.bc.ca/Mining/Geoscience/ARIS/Pages/default.aspx  Review of geological maps and reports completed by the British Columbia Geological Survey at http://www.empr.gov.bc.ca/Mining/Geoscience/MapPlace/MainMaps/Page s/default.aspx .  Published scientific papers on the geology and mineral deposits of the region and on mineral deposit types.  Work on the property by Ken Galambos and Nicole Pinkerton on September 18, 2010.

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2.4 Scope This report describes the September prospecting program, geology, previous exploration history and mineral potential of the Kate Project, research including a review of the historical work that related to the immediate and surrounding area of the property. Regional geological data and current exploration information have been reviewed to determine the geological setting of the mineralization and to obtain an indication of the level of industry activity in the area. The property was examined and evaluated by Ken Galambos and Nicole Pinkerton and consisted of limited geological mapping, rock and geochemical sampling of the available bedrock. 3.0 PROPERTY DESCRIPTION AND LOCATION 3.1 Location and Access The Kate project area is situated in west-central British Columbia on mapsheet 93E11W approximately 16 km SW of the Huckleberry mine site and 131km south of the community of Smithers, BC. The claims lie immediately west of Mt. Baptiste. The property was accessed using a contract helicopter based in the Coles Creek camp approximately 14km southeast of the property. The claims lie within the Omineca Mining Division and are administered out of Smithers, BC. 3.2 Physiography and Vegetation The general area of the Kate property is located in the Tahtsa Ranges near the north-western edge of the Interior Plateau, on the eastern flank of the Coast Mountains. The property covers the eastern side of a steep mountain peak and an ice field is situated at its extreme western edge. Much of the property lies above timber line which is situated at between 1250m and 1400m. Here, scrub alder, willow and dwarf balsam fir cover the hillside while lower in elevation, balsam fir and spruce dominate. Outcrop is scarce over much of the area beyond what is seen in the creek and along ridges at higher elevations. There is little or no exposure on the lower slopes below approximately 1300 m elevation or in the broad valley bottom to the east. Plate 1: View looking up the left fork of creek above the Price showing.

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Kate Location Map

Kate Location Topographic Layers Lakes 1:6M Rivers 1:6M BC Border Layers BC Border 1:6M

Kate

Map Map Center: Center: 54.4781N 54.4781N 124.7082W 124.7082W N

SCALE 1 : 10,780,312 100

0

100 MILES

200

300

Kate Claim Map

Mineral Titles Layers Kate Tenure All Mineral Tenures Mineral Inventory Layers

093E.063

093E.064

MINFILE name label Developed Prospect Past Producer Producer Prospect Showing All Others

654889 654889 654889 654889 PRICE

Topographic Layers Railways 1:20K 093E.053

093E.054

Roads 1:20K Gravel Road Paved Road Map Center: 53.6020N 127.3703W Map MapCenter: Center:53.6020N 53.6020N 127.3703W 127.3703W Map

N

SCALE 1 : 33,973 2,000

0

2,000 FEET

4,000

6,000

3.3 Land Tenure The Kate claim group consists of one quartz claim consisting of 25 cells and covering an area of 479.69ha. A listing of the tenures covering the Kate project is contained in Table 1 below. Upon acceptance of this report for assessment purposes, the highlighted tenure will have its Expiry date moved to March 10, 2012. The property is situated in the Omineca Mining Division. Table 1 Claim Data Tenure # Claim name 654889

Issue date 19-Oct-09

Expiry date 10-March-12

Registered Owner Galambos, Kenneth D

Plate 2: Google image, looking north, showing approximate claim coverage. 4.0 HISTORY The first documented work in the area was a geochemical bulk silting program by Union Carbide. The first claims in the area were staked on behalf of Union Carbide Canada Limited in late 1982 and transferred to Canamax Resources Inc. the following spring. Canamax discovered a small massive sulphide lens in volcanic rocks on a creek that hosted a bulk silt anomaly as well as elevated values from a heavy mineral concentrate sampling program. The company

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conducted prospecting and soil geochemical surveys over various parts of the property but did not follow up on any of the anomalies produced. The ground lapsed and was acquired by Equity Silver Mines Ltd. in 1987. Equity completed programs of prospecting and soil geochemical sampling in 1987 which expanded the area around anomalies previously discovered. The company drilled the property in 1989 with four BQTW core holes totaling 457.4m. Equity held the ground until 2000 when the claims were allowed to lapse. The property has been held by various individuals up until October 2009 when it was acquired by the author. 5.0 GEOLOGICAL SETTING 5.1 Regional Geology The Kate project area lies within the Stikinia Terrane, immediately east of the main granitic and metamorphic rocks of the Coast Plutonic Complex. Lower Jurassic Hazelton Group-Telkwa Formation calc-alkaline volcanic rocks and middle Jurassic Smithers Formation undivided sedimentary rocks are the oldest rock units in the area. Overlying the Hazelton Group in the claim region and to the north are sediments of the Lower Cretaceous Skeena Group and a thick sequence of subaerial andesitic volcanic rocks of the Kasalka Group. Intimately related to Cretaceous volcanism are various quartz diorite and granodiorite intrusions grouped as Bulkley or Kasalka type. MLJG

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Figure 3 Regional Geology map

Page 6

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ICE

Prospecting Report on the Kate Project

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TROITSA (LAKE)

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9/2/2011

Block faulting, ring and radial faults, and subsequent intrusion by dykes and/or hydrothermal fluids may have affected a large part of the area between Tahtsa and Troitsa lakes where a large caldera, 22 km in diameter, is believe to have formed during Cretaceous volcanism. A large body of Eocene Coast Plutonic Complex (?) intrusive rocks core this collapse feature. The Kate property (Price showing) lies immediately east of this large pluton.

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Geology Legend Eocene EBo

Boundary Stock: granodioritic intrusive rocks

Eqp

high level quartz phyric, felsitic intrusive rocks

Coast Plutonic Complex(?) Eg

intrusive rocks, undivided

Ootsa Lake Group EO

rhyolite, felsic volcanic rocks

Cretaceous Kasalka Group uKK

andesitic volcanic rocks

Late Cretaceous LKgd

granodioritic intrusive rocks

Bulkley Plutonic Suite LKBdr

dioritic intrusive rocks

LKBfp

feldspar porphyritic intrusive rocks

LKBgd

granodioritic intrusive rocks

LKBqp

high level quartz phyric, felsitic intrusive rocks

LKBqd

quartz dioritic intrusive rocks

Kasalka Plutonic Suite LKKP

granodioritic intrusive rocks

Lower Cretaceous Skeena Group lKS

undivided sedimentary rocks

lKSN

Mt. Ney Volcanics: undivided volcanic rocks

Upper Jurassic Bowser Lake Group

uJBAm

Ashman Formation: mudstone, siltstone, shale fine clastic sedimentary rocks

Middle Jurassic to Late Jurassic Gamsby Complex MLJG

quartz dioritic intrusive rocks

Middle Jurassic MJMc

Mount Choquette Pluton: dioritic intrusive rocks

Hazelton Group mJHSms

Smithers Formation: undivided sedimentary rocks

mJHSmvc Smithers Formation: volcaniclastic rocks Trapper Plutonic Suite MJTqd

quartz dioritic intrusive rocks

Lower Jurassic Hazelton Group lJHT

Telkwa Formation: calc-alkaline volcanic rocks

Upper Triassic Stuhini Group uTrSsv

marine sedimentary and volcanic rocks

Upper Paleozoic to Middle Jurassic Gamsby Complex uPzJGgs

greenstone, greenschist metamorphic rocks

Devonian to Permian Stikine Assemblage DPSsv

marine sedimentary and volcanic rocks

Ministry of Forests, Mines and Lands BC Geological Survey

5.2 Property Geology The Kate property is underlain, in large part, by lower-Cretaceous Skeena Group Mt. Ney undivided volcanic rocks and undivided sedimentary rocks; and upperCretaceous Kasalka Group andesitic volcanic rocks. Intruding into these rocks is a large Eocene intrusive stock of the Coast Plutonic Complex(?). The younger intrusive has domed the overlying rocks and created a fabric of ENE and NNW faults. Some of the NE structures appear to have been pre-existing as evidenced by the late-Cretaceous Kasalka Plutonic Suite, granodioritic intrusive rocks present immediately east and south of the property.

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Figure 4: Property Geology

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6.0 MINERALIZATION Alteration and mineralization seen from previous exploration programs included small zones of sulphide mineralization occurring in the volcanic rocks exposed in the main creek. These podiform and fracture filling mineralization is comprised primarily of pyrite and pyrrhotite with minor chalcopyrite and sphalerite. The main Price showing consists of a 2m x 0.5m pod of massive sulphides containing a weighted average from three chip samples of 14.6% Zn, 1.9% Cu, 0.33% Pb, 55gm/t Ag, 0.70gm/t Au and 5.42% As with values up to 905gm/t Ag and 24.7gm/t gold reported in earlier programs. Best results from the limited 1989 drilling program included one intercept of 10.8m assaying 0.188% Cu, 37.5gm/t Ag and 0.925gm/t Au from a weakly altered and fractured ash tuff believed to be in the roof zone of an underlying porphyry system. A 1.1m section of this intercept assayed 0.16% Cu, 21.0gm/t Ag and 3.82gm/t Au. Prospecting Report on the Kate Project

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7.0 PREVIOUS EXPLORATION 7.1 Sampling Method and Approach Two soil geochemical surveys were completed over the property. Canamax collected 212 soil samples in six lines flanking the known sulphide mineralization in 1983. Attempts were made to collect these samples from the BF horizon, however above tree line the company noted that there was no noticeable soil profile and these samples probably should be broken out of the dataset as talus fine samples. Equity Silver Mines collected 148 samples both to the NE and SW of the Canamax grid. Both surveys were completed using a mattock and samples collected from a depth of 10-30cm. Sixteen stream sediment samples were collected by Canamax from gullies in the area of the claim group. Numerous chip and grab samples were collected from both float and outcrop in the area by both companies. 7.2 Sample Preparation, Analysis and Security Samples for the Canamax program were submitted to Rossbacher Laboratory Ltd. of Vancouver for Mo, Cu, Ag, Zn, Pb and Au analyses by Atomic Absorption Spectroscopy. Equity Silver soil and rock samples were submitted to the Placer Development laboratory facilities in Vancouver. Analysis for Cu, Zn, Pb, Ag, Au, F, As and Sb was by Atomic Absorption Spectroscopy. There is no discussion of any security measures taken or chain of possession procedures used in previous exploration programs. 7.3 Sample Results Previous exploration programs located massive sulphide mineralization in volcanic rocks. The main Price showing consists of a 2m x 0.5m pod of massive sulphides with a weighted average from three chip samples of 14.6% Zn, 1.9% Cu, 0.33% Pb, 55gm/t Ag, 0.7 gm/t Au and 5.42% As. Values up to 135ppm Mo, 2.48% Pb, 905gm/t Ag and 24.7gm/t Au were reported in earlier programs over a 300m distance near the Price showing. Silt geochemical surveys identified additional anomalous drainages, 300m west (112ppm Pb, 740ppm Zn, 0.8ppm Ag) and 1000m west (64ppm Pb, 176ppm Zn) of the Price showing. The main creek draining known mineralization returned 62ppm Pb and 188ppm Zn. Soil surveys outlined a number of anomalies in both base and precious metals. Initial surveys outlined three anomalies, a weak Pb-Zn anomaly over an area 200 x 100m west of the showing, a weak Ag (+/- Cu, Zn) over a 200 x 500m area to the north and a weak Ag-Zn-Mo anomaly to the south. A single sample Au anomaly of 230ppb was located approximately 200m north of the Ag (Cu, Zn)

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anomaly. Follow up geochemical surveys outlined an additional four anomalies. A weak As anomaly, which remains open to the north and east, lies approximately 750m south of the main showing. A high Zn-As with moderate CuSb (+/- Ag, Pb) remains open to the east is situated 500m NE of this mineralization. Moderate and weak Zn anomalies were located approximately 1000m south of the main zone. Best results from the 1989 drilling program included one intercept of 10.8m assaying 0.188% Cu, 37.5g/t Ag and 0.925g/t Au from a weakly altered and fractured ash tuff believed to be in the roof zone of an underlying porphyry system. A 1.1m section of this intercept assayed 0.16% Cu, 21.0gm/t Ag and 3.82gm/t Au. 8.0 CURRENT EXPLORATION PROGRAM 8.1 Prospecting Survey Method and Approach A brief one day visit was made to the Kate claims. The main Price showing was not located but the creek was prospected and sampled over a distance of approximately 1.6km from the contact between the lower Cretaceous sediments and volcanics below the Price showing to as high up the left fork as was possible during the time available. Sulphide mineralization hosted by north-easterly trending shear zones to the west was discovered and sampled. It is not clear if this mineralization was sampled in previous programs. Two samples were collected during the visit and are summarized in the table below. GPS coordinates are relative to UTM Zone 09 (NAD 83) Table 3 Sample descriptions Sample # UTM UTM northing easting 42451 5940338 0607711 42452

5940370

0607450

Sample description 3.5m chip - silicified amygdaloidal volcanic w Po, (Py, CPy?) OC grab – rusty siliceous andesite w 2-3% Py (Cpy?)

8.2 Sample Preparation, Analysis and Security Prospecting samples were collected, placed in plastic sample bags, sealed and shipped to ACME Analytical facilities in Smithers, B.C. for crushing and then to the ACME laboratory in Vancouver for ultra trace multi-element chemistry by ICP and ICP-MS methods (1F05). Gold analyses were determined by fire assay (G601) using a 30g sample. A description of analytical techniques and detection limits can be found in Appendix B.

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Plate 3 Creek bed beneath snow pack above Price showing. 8.3 Prospecting Survey Results Two samples were collected during the evaluation trip. Sample 042451 contained background levels for most elements while sample 042452 returned 0.204gm/t Au and 666ppm As from a rusty and silicified andesite with several percent sulphide mineralization. A full accounting of the results can be found in Appendix A. 9.0 INTERPRETATION AND CONCLUSIONS Data from the one day visit was insufficient to make an accurate determination of the potential of the property. Historical information suggests that the property could host a mineralized porphyry system that contains significant precious metal Prospecting Report on the Kate Project

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credits. This hypothesis put forward by previous operators is still valid and the author believes that the Kate claims is a property of merit and warrants additional exploration. 10.0 RECOMMENDATIONS AND BUDGET A systematic program of mapping and prospecting should be completed over the area suspected to overlie the mineralized porphyry system. A cut grid followed by geochemical (Ah) and geophysical programs of a magnetic survey to outline the pyrrhotite mineralization and possibly identify hidden structures followed by an IP survey to measure the abundance of sulphide material present should be completed prior to conducting any physical work in the area. Any mineralized rock located should be sampled for base and precious metals. Project Geologist (7 days @ 600/day) Prospector/sampler x 2 (7 days @ $400/day) Line-cutting (10km @$1500/km) Geochemical Ah surveys (300 samples @ $50/sample) Geophysical surveys mag/IP (10km @ $2500/km) Mob/demob Helicopter (10 hrs @ $2000 wet) Camp costs (65 person days @ $100/day) Reporting Contingency (15%)

$4200 5600 15000 15000 25000 5000 20000 6500 10000 15950 $122250

Contingent on the results obtained from these surveys, surface trenching or diamond drilling should target favorable anomalies. Respectfully submitted,

Ken Galambos P.Eng. KDG Exploration Services Victoria, BC. February 09, 2010

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11.0 REFERENCES Cawthorn N.G. (1983): Geochemical and Geological Surveys Assessment Report – Kasalka Property, Omineca Mining Division. Canamax Resources Inc. Assessment report 11507. Hanson D.J. (1988): 1987 Soil Geochemistry and Prospecting of the Kate Mineral Property, Equity Silver Mines Limited Assessment report 17311. Hanson D.J. (1990): 1989 Diamond Drilling of the Kate Mineral Property, Equity Silver Mines Limited Assessment report 17311. Hodder. R.W. and MacIntyre. D.G. (1979): Place and Time of Porphyry Type Copper-Molybdenum Mineralization in Upper Cretaceous Caldera Development. Tahtsa Lake, B.C. In: Papers on Mineral Deposits of Western North America. Nevada Bureau of Mines and Geology. Report 37, pp. 175-184. MacIntyre. D.G. (1976): Evolution of Upper Cretaceous Volcanic and Plutonic Centres and Associated Porphyry Copper Occurrences. Tahtsa Lake Area. B.C. Ph.D. Thesis, Univ. of British Columbia. MacIntyre, D.G. (1985) Geology and Mineral Deposits of the Tahtsa Lake District, West Central British Columbia. B.C. Ministry of Energy, Mines and Petroleum Resources. Bulletin 75. van der Heyden. P. (1982): Geology of the West-Central Whitesail Lake Area, B.C. M.Sc. Thesis, Univ. of British Columbia. Panteleyev, A. (1995): Porphyry Cu-Au: Alkalic, in Selected British Columbia Mineral Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E., Editors, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pages 83-86. Panteleyev, A. (1995): Porphyry Cu+/-Mo+/-Au, in Selected British Columbia Mineral Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E., Editors, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pages 87-92.

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12.0 STATEMENT OF COSTS Personnel Ken Galambos 1 day @ $550/day Nicole Pinkerton 1 day @ $140/day

$550.00 $140.00

Transportation Astar B2 helicopter 0.8 hr @ $1600/hr. (based at Coles Creek camp)

$1280.00

Analyses 2 Rock samples @ $52.42/sample

$104.84

Report 1.5 days @ $550/day

$825.00

TOTAL

=

Prospecting Report on the Kate Project

$2899.84

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14.0 Software used in support of this exploration program Microsoft Windows XP-Pro Version 2002 Microsoft Office 2004 Adobe Reader 8.1.3 Adobe Acrobat 9 Internet Explorer Google Earth Bootcamp

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15.0 Appendices

Appendix A

Assay Certificates

Client:

Callinan Mines Limited Suite 1100 - 736 Granville Street Vancouver BC V6Z 1G3 Canada

Acme Analytical Laboratories (Vancouver) Ltd. 1020 Cordova St. East Vancouver BC V6A 4A3 Canada www.acmelab.com

Submitted By:

Narissa Saretsky

Receiving Lab:

Canada-Smithers

Received:

October 01, 2010

Report Date:

October 27, 2010

Page:

1 of 3

CERTIFICATE OF ANALYSIS CLIENT JOB INFORMATION

SMI10000644.1 SAMPLE PREPARATION AND ANALYTICAL PROCEDURES Method

Number of

Shipment ID:

Code

Samples

P.O. Number

R200-250

33

Crush, split and pulverize 250 g rock to 200 mesh

Number of Samples:

G601

33

1F05

33

Troitsa

Project:

33

Test

Report

Wgt (g)

Status

Fire Assay fusion Au by ICP-ES

30

Completed

VAN

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

15

Completed

VAN

Code Description

SMI

SAMPLE DISPOSAL ADDITIONAL COMMENTS STOR-PLP

Store After 90 days Invoice for Storage

DISP-RJT

Dispose of Reject After 90 days

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

Invoice To:

Callinan Mines Limited Suite 1100 - 736 Granville Street Vancouver BC V6Z 1G3 Canada

CC:

Ken Galambos

Lab

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.

Callinan Mines Limited

Client:

Suite 1100 - 736 Granville Street Vancouver BC V6Z 1G3 Canada Project:

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

Troitsa

Report Date:

October 27, 2010

Page:

1 of 1

www.acmelab.com Part

QUALITY CONTROL REPORT

1

SMI10000644.1

QU

Method

WGHT

G6

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

1F15

Analyte

Wgt

Au

Mo

Cu

Pb

Zn

Ag

Ni

Co

Mn

Fe

As

U

Au

Th

Sr

Cd

Sb

Bi

V

Unit

kg

gm/t

ppm

%

%

%

gm/t

ppm

ppm

%

%

ppm

ppm

gm/t

ppm

ppm

ppm

ppm

ppm

ppm

MDL

0.01

0.005

0.01

1e-006

1e-006

1e-005

0.002

0.1

0.1

0.0001

0.01

0.1

0.1

0.0002

0.1

0.5

0.01

0.02

0.02

2

0.12 0.0002 0.0001 0.0069

0.011

44.3

15.5 0.1819

2.84

0.9

0.1