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REPORT OF WORK ON THE AUDEN PROPERTY PORCUPINE MINING DIVISION ONTARIO for 1518164 ONTARIO INC. Clint Barr, P.Geo. July 25, 2009

1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

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Page 1: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

REPORT OF WORK

ON THE AUDEN PROPERTY PORCUPINE MINING DIVISION ONTARIO for

1518164 ONTARIO INC.

Clint Barr, P.Geo.

July 25, 2009

Page 2: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

i

SUMMARY

During the period July 10-16, 2009, Stares Contracting Corp was contracted by 1518164 Ontario Inc (“151 Ont”) completed a reconnaissance prospecting and soil survey. The field work program covered only a small portion of 151 Ont’s 100% owned Auden Property claim block located north of Hearst, Ontario.

Historical work on the property indicated the presence of gold mineralization in diamond

drill holes along an east-west trending shear zone defined by airborne magnetic surveys. The soil and prospecting surveys were designed to follow-up on the location and nature

of the historical gold mineralization.

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TABLE OF CONTENTS

Summary .................................................................................................................. i Table of Contents.................................................................................................... ii 1.0 Introduction..............................................................................................................12.0 Location and Access ................................................................................................1 3.0 Claim Holdings and Property Disposition ...............................................................1 4.0 Work History ...........................................................................................................2 5.0 Geological Setting....................................................................................................3 5.1 Regional Geology ..............................................................................................3 5.2 Local Geology....................................................................................................3 6.0 Soil Sampling and Prospecting Program .................................................................4 7.0 Conclusions and Recommendations .......................................................................4 8.0 References................................................................................................................6

LIST OF FIGURES

Figure 1 Property Location Map Following Page 1 Figure 2 Claim Location Map Following Page 1

LIST OF TABLES

Table 1 Property Claims Following Figure 2

LIST OF APPENDICES

Appendix I Sample Descriptions 8 Appendix II Assay Certificates 9 Appendix III Daily Logs 10

LIST OF MAPS

Map 1 Sample Locations

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1.0 INTRODUCTION

The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the

“Company”). During mid-July a short reconnaissance prospecting and soil survey was carried out by Stares Contracting Corp of Thunder Bay, Ontario on behalf of 151 Ont. Only one rock sample was submitted for assay along with 14 soil samples. This report describes the results of the work completed.

2.0 LOCATION AND ACCESS (Figure 1)

The centre of the Auden Property is located approximately 20 kilometres north of the TransCanada Highway (Hwy 11) between the towns of Longlac and Hearst, Ontario and within NTS mapsheets 42F-14, -15, and -16.

The property can be accessed via numerous logging roads off of Highway 11 although

given the extent of the claim group a helicopter would best be used.

3.0 CLAIM HOLDINGS AND PROPERTY DISPOSITION (Figure 2, Table 1)

The Auden property consists of 1590 units in 110 unpatented mining claims that make up two non-contiguous claim blocks split by the Nagagami River. The claim group stretches for approximately 78 kilometers in a narrow east-west oriented band across numerous claim maps beginning in the east with (Limestone Rapids Area (G-1004), Auden Township (G-1748), Pitopiko River Area (G-1706), Fintry Township (G-2308), Feagan Lake Area (G-1911), Mulloy Township (G-2337), Rowlandson Township (G-2348), and Shuel Township (M-1345) to the west. All claims are held 100% in the name of 1518164 Ontario Inc. as recorded with the Ministry of Northern Development and Mines (“MNDM”).

4.0 HISTORY

Historical mineral exploration work in the area of the Auden Project include prospecting, stratigraphic mapping, various air and ground geophysical surveys and diamond drilling. Starting with the most recent exploration undertaken in the area the following is a quick summary of the historical work completed by various companies found in the MNDM assessment files.

1999-2000: Using an Ontario Prospector’s Assistance Program (OPAP) grant 2 isolated claims were staked in Mulloy and Shuel Townships over circular magnetic features that were interpreted to reflect a mafic to ultramafic intrusive source by R. Duess. Line-cutting and ground magnetic surveys were followed by a single diamond drill hole in each target with the magnetic signature being attributed to magnetite-rich schists or sediments in the core. No assays were reported. 1988-1993: During 1988 and 1990 airborne magnetic and VLF-EM surveys (fixed wing) were completed over D. McKinnon’s claims in the area (Auden Township and Pitopiko River Area).

Page 5: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

0 100 200 300

Kilometres

O N T A R I O

U S A

Q U E B E C

TIMMINS

OTTAWA

MONTREAL

Kirkland Lake

Sudbury

Chapleau

TORONTO

THUNDERBAY

LAKEHURON

LAKEONTARIO

LAKEERIE

LAKESUPERIOR

JAMESBAY

LAKEMICHIGAN

144

101

129

AUDENPROPERTY

1518164 Ontario Inc.

Figure 1.Auden Property

Location Map

Page 6: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

4216848

4228656

4228655

4228666

4228665

4228667

42286614228668

4228664

4228662

4228663 4228660

4228659

42286584228653

4228657 4228652

4228654

4228651

4206144

42169064216913

4216914

4230091

4230079

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4230080

4230084

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42300904230089

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4230025

4230024

42169074216915 4216916

4230095 4225227

42252284225224

422866942300454230043

42300444230042

4230041

4225230

4230092 4230094

42300884230093

4225226

42252294225225

4216975

4230017

422145942300144230012

4230023

4230022

4230021

4230020

4230019

4230018

4230011

4230010

4230013 4230015 4230016

4228639

4216974 4216976

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42422574242255

42422564242253

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4242265 4242267

42422644242269

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42422714242274

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4242276 4242279

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4242280 4242282

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42422624242259

42422634242260

1:100,0000 2 4 6 81

Kilometers

Auden Property1518164 Ontario Inc

1:100 000

Porcupine Mining Division

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Claim Number Township/Area Ownership Recording Date Claim Due Date Units4216848 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2007-Aug-01 2009-Aug-01 154216906 PITOPIKO RIVER 100% 1518164 Ontario Inc 2007-Aug-01 2009-Aug-01 124216907 PITOPIKO RIVER 100% 1518164 Ontario Inc 2007-Aug-01 2009-Aug-01 164216913 PITOPIKO RIVER 100% 1518164 Ontario Inc 2007-Aug-01 2009-Aug-01 164216914 PITOPIKO RIVER 100% 1518164 Ontario Inc 2007-Aug-01 2009-Aug-01 124216915 PITOPIKO RIVER 100% 1518164 Ontario Inc 2007-Aug-01 2009-Aug-01 164216916 PITOPIKO RIVER 100% 1518164 Ontario Inc 2007-Aug-01 2009-Aug-01 164216974 FEAGAN LAKE 100% 1518164 Ontario Inc 2007-Sep-04 2009-Sep-04 164216975 FEAGAN LAKE 100% 1518164 Ontario Inc 2007-Sep-04 2009-Sep-04 164216976 FEAGAN LAKE 100% 1518164 Ontario Inc 2007-Sep-04 2009-Sep-04 164221459 ROWLANDSON 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164225224 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164225225 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164225226 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164225227 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164225228 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164225229 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164225230 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228639 FEAGAN LAKE 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 124228651 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 44228652 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 144228653 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228654 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228655 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228656 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228657 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228658 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228659 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228660 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228661 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 154228662 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228663 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228664 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 124228665 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228666 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164228667 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 154228668 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 174228669 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 154230010 ROWLANDSON 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230011 MULLOY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230012 ROWLANDSON 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230013 MULLOY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230014 ROWLANDSON 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230015 MULLOY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230016 MULLOY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230017 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 124230018 FEAGAN LAKE 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 124230019 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 124230020 FEAGAN LAKE 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230021 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 16

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4230022 FEAGAN LAKE 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230023 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230024 FEAGAN LAKE 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230025 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230041 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230042 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230043 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230044 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230045 LIMESTONE RAPIDS 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230076 FEAGAN LAKE 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230077 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230078 FEAGAN LAKE 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230079 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230080 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230081 FINTRY 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 164230082 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 154230083 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 154230084 AUDEN 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 154230085 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 124230086 AUDEN 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 144230087 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 94230088 AUDEN 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 04230089 AUDEN 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 64230090 AUDEN 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 84230091 AUDEN 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 94230092 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 144230093 AUDEN 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 124230094 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 44230095 PITOPIKO RIVER 100% 1518164 Ontario Inc 2008-Feb-29 2010-Feb-28 44242253 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 124242254 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242255 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 94242256 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242257 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 154242258 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 154242259 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 124242260 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242261 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 84242262 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242263 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242264 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242265 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242266 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 154242267 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242268 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242269 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242270 SHUEL 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242271 ROWLANDSON 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 84242272 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242273 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242274 ROWLANDSON 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 16

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4242283 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 15

4242275 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242276 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 154242277 ROWLANDSON 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242278 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242279 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 154242280 ROWLANDSON 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242281 MULLOY 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 164242282 ROWLANDSON 100% 1518164 Ontario Inc 2008-Jun-16 2010-Jun-16 15

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In 1999 a helicopter-borne aeromagnetic and VLF-EM survey was completed. Several targets detected by the airborne surveys were followed up in 1993 with line-cutting, ground magnetic and electromagnetic (EM) surveys, some induced polarization (IP) and diamond drilling (17 drill holes) of the priority targets. Most of the drill holes intersected pyrrhotite-rich iron formation and lacked ore grade intervals however, many intersected anomalous gold and arsenic values. The best intersection (ddh 7-17-1) reported was 3.33 gram per tonne gold over 1.2 metres within an anomalous 27m wide zone. 1984: Noranda Exploration Company Ltd. completed ground magnetic and horizontal loop EM surveys in Auden Township. Six of the seven conductors detected were considered to be bedrock related. 1981-1984: Mattagami Lake Exploration Ltd. completed ground magnetic and EM surveys over several separate claim groups contained within the Rogers Creek and Limestone Rapids Area. These ground geophysical surveys were followed up with 6 diamond drill holes totaling 1041.5m (3417 feet). The drill logs record iron formation in felsic to mafic volcanics and metasediments and sericite schists. Local zones of arsenopyrite were noted in the core as well as quartz-tourmaline veinlets. One hole reported an intersection of 20-30% sulphide stringer material but assay results were not submitted. 1976-1978: Shell Canada Resources Limited completed 12 drill holes in the area over various targets apparently for the search of base metals. Eight of these drill holes, all testing separate targets, appear to be situated within the current Auden Property claim block. Several of the drill holes intersected arsenopyrite+pyrite+pyrrhotite mineralization. The drill logs also indicate the presence of sericite, silicification, green mica, and tourmaline alteration. 1970-1971: North D’Arcy Explorations Ltd held a block of claims that straddled the Nagagami River in Auden and Fintry Townships. The company completed line-cutting, ground magnetic and EM surveys. Seventeen conductive responses were detected of which the priority anomalies were drill tested with 460.5m in six holes, all close to the Nagagami River. Although the drilling appears to have intersected massive sulphide consisting of pyrite+pyrrhotite+/-chalcopyrite no assays were reported. 1965: In Fintry Township, Silver Place Mines Ltd conducted ground magnetic and EM surveys that outlined a conductor just over 200m long but there is no record of the company having drill tested the anomaly. Martin-Hunt Mining Ltd completed ground magnetic and EM surveys in Auden Township. No record of diamond drilling is available. Colleen Copper Mines Limited held ground in Auden Township north of Martin-Hunt. The company completed ground magnetic and EM surveys before drilling 329m in four holes. As with North D’Arcy Explorations listed above the holes were all located close to the Nagagami River. Assays from hole 4 returned 0.41% copper over 1.5m and 0.1% copper over 1.5m in two separate zones.

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1961-1964: Over the period of several years, Algoma Ore Properties targeted potential alkalic intrusive complexes with magnetic surveys in Fintry Township. Diamond drilling intersected syenitic to gabbroic intrusive rocks and subsequent thin section work identified the rocks as a mixture of pyroxenite, olivine pyroxenite, and nepheline syenite. No significant assays were reported. 1956-1958: Fatima Mining Company Limited held claims in Shuel and Rowlandson Townships on which they completed magnetic and EM surveys that detected a variety of conductive responses. Diamond drilling followed and 19 drill holes tested magnetic responses and one tested an EM anomaly. This latter drill hole intersected numerous zones of massive pyrite (replacing quartzite) over intervals up to 4m thick. Although the drill logs describe alteration (sericite, carbonate, quartz veining), mineralization, porphyritic intrusions, and shearing amenable to gold deposition there is no record of gold assays. 1954-1967: Prospector James McGale staked some claims in Auden Township and was visited by the resident geologist of the time, A. Ferguson, who described two sulphide showings mineralized with heavy (20% to massive) pyrite and pyrrhotite up to 10m wide, with one showing on each side of the Nagagami River. No assays were reported. In 1967 the showing on the west side of the river was visited by a representative of Algoma Steel Corporation and reported poor copper amounts. 1953: Two drill holes (306m) were completed by Preston East Dome Mines Ltd in Shuel Township. Tuffs and magnetite bands were intersected but no assays reported. 5.0 GEOLOGICAL SETTING 5.1 Regional Geology On a regional scale the Auden Property is situated near the boundary of between the Wabigoon and Quetico Subprovinces of the Superior Province of the Canadian Shield. The Wabigoon Subprovince is dominated to the north by mafic to intermediate volcanics while sediments predominate to the south. Iron formation (iron-, sulphide-, and silica-facies) occurs throughout the region and hosted gold mines in the Beardmore-Geraldton-Longlac area located to the west of the Auden Property. The most recent government publication titled Geology of Ontario (Thurston et al, 1992) indicates a regional deformation zone oriented east to north east and cutting through the Auden Property area with the rocks to the south likely being part of the Quetico Subprovince dominated by metamorphosed turbiditic sequences. The volcanic and sedimentary rocks have been intruded by granitic blocks. Younger Proterozoic dykes cut across the east-west trending volcanics and metasediments in northwest to northeast directions. To the northeast are flat lying carbonate-rich Paleozoic sediments of the James Bay Lowlands An airborne magnetic map published by the provincial government suggests that the Auden Property may cover stratigraphy representing the eastern extension of the Geraldton Greenstone Belt. 5.2 Local Geology

Unfortunately much of the Auden Property is relatively flat and covered by overburden with little to no outcrop exposure. Much of the geology has been interpreted by geophysical surveys and drill logs from diamond drill campaigns. Magnetic data indicates most of the

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underlying stratigraphy is oriented in an east west direction and consists of Archean-aged turbidite sequences, conglomerate, iron formation, intermediate to mafic volcanics, quartz feldspar porphyry, syenitic intrusive bodies. Proterozoic-aged diabase dykes crosscut the stratigraphy in northwest and northeast orientations. South of the property the stratigraphy appears to be predominantly migmatite and diatexite of the Quetico Subprovince and exhibit relatively flat magnetics. The more detailed 1991 airborne magnetic survey conducted for D. McKinnon confirms the interpretation from the regional, coarser aeromagnetic provincial government maps of dextral offsetting to the northwest and northeast oriented diabase dykes along a linear easterly trending feature. A circular magnetic high feature located in Fintry Township has been identified as an alkali syenite intrusive body.

6.0 PROSPECTING AND SOIL SURVEY PROGRAM (Map 1) Reconnaissance prospecting and a soil survey were conducted over part of the Auden Property with the hope of locating gold mineralized outcrop or boulders and anomalous soil geochemistry that may suggest a buried mineralized horizon. Unfortunately the overburden cover and swampy ground proved to be more difficult than anticipated and hampered both the prospecting and soil survey efforts. The prospecting resulting in the collection of only one promising rock containing numerous quartz-carbonate stringers with 1% pyrite sulphide content for which the assay returned no significant gold. The soil survey did not fair much better with much of the area either being swampy or having relatively thick (up to 1m) accumulations of litter and humus. The soil samples were collected using a handheld GPS with the location coordinates saved in the unit. An attempt was made to collect a soil sample every 250m on east-west oriented lines however the swampy surface conditions and nature of the overburden dictated where it was possible to recover a soil sample. A total of 14 soil samples were collected but they appeared to be either a poor “B-horizon” or possibly “C-Horizon” material with a dominantly brown to pale orange colour. Although most of the soil assays returned less than the detection limit of 5ppb gold there were 2 that returned 7ppb and one 6ppb gold. Two of these occur 200m apart on the southern line close to the southern boundary of claim 4216914 and the third is situated approximately 300m to the northwest. There were no soil samples collected to the north or west of this latter sample and none to the south or east of the former two. All samples were submitted for fire assay to Accurassay Laboratories of Thunder Bay, Ontario. Sample descriptions and location coordinates are located in Appendix I and Assay Certificates in Appendix II. 7.0 CONCLUSIONS AND RECOMMENDATIONS

During the period July 10-16, 2009 Stares Contracting Corp personnel, on behalf of 1518164 Ontario Inc, conducted a reconnaissance soil survey and prospecting program over a small portion of the Auden Property located north of the TransCanada Highway (Hwy 11) between Hearst and Longlac. Thick humus and swampy terrain hindered the program as did poor access. Although the soil survey did not delineate any concrete anomalous gold trends in the geochemical results there were a few weak anomalous gold values that should be followed up. Thick overburden also hampered the prospecting such that very little outcropping bedrock was found and the only altered sample that was submitted did not return anomalous gold.

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Since the property is host to numerous historical gold values determined by previous work programs further exploration efforts is warranted. Given the poor outcrop exposure and thick overburden some recommendations for future exploration efforts should include a wide-spaced till sampling program, preferably basal till if possible. It may be that a small track mounted drill apparatus would work best for this although surface till samples collected by hand could also prove useful. A basal till survey would not only potentially produce gold grains that would be relatively close to the source but it would also provide important information about the nature and thickness of the overburden. Any gold grains found in the heavy mineral concentrates produced from the till samples should be followed up with a closer spaced sampling program. Based on the nature of the overburden different geochemical surveys (humus) may be pursued as well as determining whether any ground geophysical surveys would be useful. Submitted by:

Clint Barr, P.Geo

Thunder Bay, Ontario July 25, 2009

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8.0 REFERENCES

CAMPBELL, R.A. 1990: Report on an Airborne Magnetic and VLF-EM Surveys on the Property of McKinnon

Prospecting, Auden and Fintry Townships and Pitopiko and Feagan Areas, Porcupine Mining Division, Assessment Report T-3179

DURHAM, R. BRUCE 1991: Summary Report, Auden Gold Project, Porcupine Mining Division, DURHAM, R. BRUCE 1993: Summary Report, Auden Gold Project, Porcupine Mining Division ELLIOT, W.J. 1965: Report on Geophysical Survey, Silver Plate Mines Ltd., Sault Ste. Marie Mining Division

Assessment Report T-356 ELLIOT, W.J. 1965: Report on Property of Martin-Hunt Mining Limited, Auden Township, Sault Ste. Marie Mining

Division, Assessment Report T-352 GEISLER, W.J. 1957: Fatima Mining Company Limited, Savoff Claim Group, Shuel, Burrell, Rowlandson and Mulloy

Twps., Sault Ste. Marie Mining Division, Electromagnetic Survey Report, Assessment Report T-4273

GUPTA, V.K. 1991: Shaded image of total magnetic field of Ontario, east-central sheet; Ontario Geological Survey,

Map 2586, scale 1:1 000,000 JOHNSON, I. 1991: Report on a Combined Helicopter-Borne Electromagnetic and VLF-EM Survey Auden Project,

Hearst Ontario for McKinnon Prospecting, Assessment Report T-3179 ONTARIO GEOLOGICAL SURVEY 1991: Bedrock geology of Ontario, east central sheet; Ontario Geological Survey, Map 2543, scale 1:1 000,000 ONTARIO DEPARTMENT OF MINES 1969: Ontario Department of Mines, Preliminary Geological Map No. P.552, Pagwa River – Calstock

Sheet, Districts of Cochrane and Algoma, Geological Compilation Series. ONTARIO DEPARTMENT OF MINES 1970: Ontario Department of Mines, Geological Map No. P. 2202, Pagwa River – Calstock Sheet,

Geological Compilation Series, Districts of Cochrane and Algoma. ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES Timmins Assessment Files (Authors unknown): Colleen Copper Mines Limited T-354 Duess T-4541 Duess T-4543 Fatima Mining Co. Limited. T-366 Fatima Mining Co. Limited. T-367 Fatima Mining Co. Limited. T-368 Fatima Mining Co. Limited. T-370 Mattagami Lake Exploration Limited T-2507 Noranda Explorations Co. Ltd. T -2653 Noranda Explorations Co. Ltd. T-2644 Preston East Dome Mines Ltd. T-371 Shell Canada Resources Limited T-1860

Page 15: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

7

Shell Canada Resources Limited T-1859 Shell Canada Resources Limited T-3102 McGale, J T-4615 McKinnon Prospecting T-3179 SUTHERLAND, H. 1970: A Report on Property of North Darcy Explorations Ltd. Auden Township, Assessment Report T-

385 1971: A Report on Geophysical Surveys Conducted Over the Property of North Darcy Explorations

Ltd., Assessment Report T-385 VENN, V.R. 1967: McGale Copper Prospect, Nagagami River Area for Algoma Steel, Assessment Report T-351 Websites visited http://www.mndm.gov.on.ca/

Page 16: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

8

APPENDIX I

SAMPLE DESCRIPTIONS AND LOCATIONS

Page 17: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

Sample No. Northing Easting UTM Zone Sample Type Sample Description Sampler Property Au (ppb)627951 5538740 687238 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627952 5537826 687273 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627953 5538069 687217 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627954 5528268 687133 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627955 5538469 687249 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627956 5538055 686763 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627957 5537974 686501 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627958 5537835 686563 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627959 5537982 686211 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627960 5537947 685986 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627961 5537949 685778 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden 7627962 5537777 685809 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden <5627963 5537720 685998 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden 6627964 5537697 686207 NAD83 16 Soil Poor B-horizon, brownish-red R.Dyer, B.Dyer Auden 7627501 5539027 687158 NAD83 16 Rock Qtz-carb stringers in felsic rock, rusty, 1% small pyrite stringers R.Lyght, R.Mallory Auden <5

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9

APPENDIX II

ASSAY CERTIFICATES

Page 19: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

1046 Gorham StreetThunder Bay, ON Canada P7B 5X5

Tel: (807) 626-1630Fax: (807) 622-7571

[email protected]

Certificate of Analysis

Wednesday, July 22, 2009

Caldera Resources Inc611 Montreal StreetThunder Bay, ON, CANP7E 3P2Ph#: (807) 472-7200Email#: [email protected]

Date Received: Jul 17, 2009

Date Completed: Jul 22, 2009

Job #: 200941608

Reference:

Sample #: 14 Soil

Acc # Client ID Au

ppb

Auoz/t

Au

g/t (ppm)

118575 627951 <5 <0.001 <0.005

118576 627952 <5 <0.001 <0.005

118577 627953 <5 <0.001 <0.005

118578 627954 <5 <0.001 <0.005

118579 627955 <5 <0.001 <0.005

118580 627956 <5 <0.001 <0.005

118581 627957 <5 <0.001 <0.005

118582 627958 <5 <0.001 <0.005

118583 627959 <5 <0.001 <0.005

118584 627960 <5 <0.001 <0.005

118585 Dup 627960 <5 <0.001 <0.005

118586 627961 7 <0.001 0.007

118587 627962 <5 <0.001 <0.005

118588 627963 6 <0.001 0.006

118589 627964 7 <0.001 0.007

PROCEDURE CODES: ALFA1, ALICPAR

Certified By:

The results included on this report relate only to theitems testedThe Certificate of Analysis should not be reproducedexcept in full, without the writtenapproval of the laboratory

AL903-0959-07/22/2009 3:57 PM

Page 1

of!o - -ACCURASSAY ............

= -.-

Page 20: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

1046 Gorham StreetThunder Bay, ON Canada P7B 5X5

Tel: (807) 626-1630Fax: (807) 622-7571

[email protected]

Certificate of Analysis

Wednesday, July 22, 2009

Caldera Resources Inc611 Montreal StreetThunder Bay, ON, CANP7E 3P2Ph#: (807) 472-7200Email#: [email protected]

Date Received: Jul 17, 2009

Date Completed: Jul 22, 2009

Job #: 200941609

Reference:

Sample #: 1 Rock

Acc # Client ID Au

ppb

Auoz/t

Au

g/t (ppm)

118590 627501 10 <0.001 0.010

118591 Dup 627501 <5 <0.001 <0.005

PROCEDURE CODES: ALFA1

Certified By:

The results included on this report relate only to theitems testedThe Certificate of Analysis should not be reproducedexcept in full, without the writtenapproval of the laboratory

AL903-0959-07/22/2009 4:01 PM

Page 1

of!o - -ACCURASSAY ............

dt>d:l:::;;"" ~=:::.., "";:~H.&oo..' _._

Page 21: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

10

APPENDIX III

DAILY LOGS

Page 22: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

DAILY LOGS JULY 9,2009 Personel involved: Rob Dyer

Work Completed: Mobilization JULY 10,2009

Personal Involved: Rob Dyer, Rob Lyght, Robert Mallory, Brett Dyer Work Completed: Soils and Prospecting

July 11,2009

Personal Involved: Rob Dyer, Rob Lyght, Robert Mallory, Brett Dyer Work Completed: Soils and Prospecting

July 12,2009

Personal Involved: Rob Dyer, Rob Lyght, Robert Mallory, Brett Dyer Work Completed: Soils and Prospecting

July 13,2009

Personal Involved: Rob Dyer, Rob Lyght, Robert Mallory, Brett Dyer Work Completed: Soils and Prospecting

July 14,2009

Personal Involved: Rob Dyer, Robert Mallory, Brett Dyer Work completed: Soils and Prospecting

Personal Involved: Rob Lyght Work Completed: Demobilization

July 15,2009

Personal Involved: Rob Dyer, Robert Mallory, Brett Dyer Work Completed: Soils and Prospecting

July 16,2009

Personal Involved: Rob Dyer, Robert Mallory, Brett Dyer Work Completed: Demobilization

Page 23: 1518164 ONTARIO INC....The Auden Property is owned 100% by 1518164 Ontario Inc (“151 Ont” or the “Company”). During mid-July a short reconnaissance prospecting and soil survey

4216906

4216913

4216914

4230091

4230090

4230089

4230087

4216907

4216915 4216916

4230095

42300924230094

4230088

4230093

6279

52(<5 ppb Au)

6279

53(<5 ppb Au)

6279

55(<5 ppb Au)

6279

56(<5 ppb Au)

6279

57(<5 ppb Au)

6279

58(<5 ppb Au)

6279

51(<5 ppb Au)

6279

61(7

ppb Au)

6279

62(<5 ppb Au)

6279

63(6

ppb Au)

6279

64(7

ppb Au)

6275

01(<5 ppb Au)

6279

59(<5 ppb Au)

130

150

130

160

150

150

150

140140

150

160

140

130

150

140

140

150

160

160

150

150

150

160

140

150

150

160

130

150

150

150

150

683000

683000

684000

684000

685000

685000

686000

686000

687000

687000

688000

688000

689000

689000

690000

690000

691000

691000

5536

000

5536

000

5537

000

5537

000

5538

000

5538

000

5539

000

5539

000

5540

000

5540

000

LegendSamplesType

Grab Sample

Soil Sample

Traverses

Roads

Rivers

10m Contours

Lakes

Claims