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Table of Contents. Illustrations Figure 1. Location Map Figure 2. Claim Map 1: 541198 Figure 3. Claim Map 2: 540922 Figure 4. Claim Map 3: 540920 Figure 5. Claim Map 4: 558604 Figure 6. Placer Claim Map: 558911 Figure 7. Sampling sites 1 Figure 8. Sampling sites 2 Figure 9. Sluice, Shovel, Goldpan Figure 10. Metal Detector Report Page 11. Introduction Page 11. Discussion of results Page 11. Property Page 11. Location and Access Page 11. Regional Geology Page 12. Local Geology Page 12. Metal Detection technique Page 12. Gold Panning technique Page 13. Table of Samples by description and weight Page 14. Table of Sample locations by latitude, longitude and altitude Page 15. Statement of qualification Page 16. Statement of expense/Itinerary

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Figure 1: Avellino Mineral Claims, British Columbia Canada NTS 092H, Similkameen Mining District Latitude 49°26'23" Longitude -120°48'08"

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Figure 2 Claim 541198

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Figure 3 Claim 540922

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Figure 4– Claim 540920

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Figure 5 – Claim 558604

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Figure 6 – Placer Claim 558911

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Figure 7 – Sampling Sites

Figure 8 – Sampling Sites, Princeton

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Figure 9 – Gold Pan, Shovel, Sluice

Figure 9 – Metal Detector (actual Model is M-scope 350)

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Introduction: The Avellino mineral claims are located in the Similkameen Mining district, under ownership of David A. Zamida, and were staked and visited to evaluate and record: (1) access, (2) approximate grades of reported gold and platinum in property gravels, mineralized float, chip and grab samples, (3) characteristics of Newton Creek in relation to the property boundaries and (4) location of greenstone dyke outcroppings reported in ARIS report 27009. On June 24th, 2007, the property was located and traversed. Outcroppings consistent with descriptions reported in ARIS 27009 were located. Samples with visual or geophysical indications of mineralization were collected by hand, and gravels were separated via sluicing and goldpanning, 500m downstream from the workings, conducted by Prospector David Zamida and Field Technician Daniela Acerra, both of Toronto, Ontario. Discussion of results: Analyses of 29 grab samples and 1 sample of concentrates, the most favourable gold and platinum results came from Sample 1-b, representative greenstone. At 1.957ppm Au, 0.016ppm Pt and 13.15% Fe, Sample 1-b proves the existence of economic ore. The sample did contain escalated chromium levels. Sample 5-1 was reported lost at crushing station and was omitted from totals in this paragraph. A broader multispectral geochemical grid would be practical with portable X-ray fluorescent (XRF) analyses to analyse for Ba, Cr, Fe, Ni, and Cu, representing indicators minerals with feasible detection limits via present XRF technology. Establishment of drill targets for the purpose of bulk sampling are also proposed for follow up evaluation. Property: The Avellino mineral claims are recorded as tenures 541198, 540920, 540922 and 559604. The placer claim 500 downstream from the workings is 558911. The mineral claims cover an area of 1175.867 hectares. The location map is shown in figure 1, the claims are shown in figures 2, 3, 4, and 5 and the sampling sites are marked in figure 6. The claims were staked to encompass Minfile markers, areas of past work, and cover a portion of the underlylying Tulameen Ultramafic Complex, as outlined by BCGS. Location and access: Access to Coalmont via River Road North which runs East-West from the Town of Princeton 12km to the East. When the Tulameen river is crossed in Coalmont, from the bridge follow Blakeburn road to the junction of granite creek road, and follow S until the junction of Newton Creek FSR, which parallels Newton Creek until its access points are reached, 27 km and 29 km in from Blakeburn Road. Latitude 49°26'51" Longitude 120°46'48". An access road just past the Basin Coal Mine provided access to the upper portion of the property. Regional Geology: Newton Creek’s general characteristics are best compiled in Minfile Reports 092HSE232 and 092HSE230: Newton Creek flows east to northeast, over a distance of about 11 kilometres, into Granite Creek, west of Princeton. The lower half of the creek cuts through a narrow steep-sided valley while the upper half flows over a broader, more open valley floor. The geology of the derivative canyons and hillside vary

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including (Minfile 092HSE159, 092HSE129 & 092HSE039) syenite and syenogabbro of the Early Jurassic Tulameen Ultramafic Complex, near the eastern contact with metavolcanics of the Upper Triassic Nicola Group, exhibiting extensive epidote alteration of feldspar and minor chloritization of hornblende. The richest documented lode occurrences of platinum in the area (8 gpt from the hop showing) are hosted by intruding greenstone dykes. Local Geology: The placer gold is similar to that found in Granite Creek (092HSE230), being coarse and rough. Some of the larger nuggets contained quartz (Minister of Mines Annual Reports 1890, 1933). The holly mountain fern was noted, and is regarded as a significant biological indicator of platinum group metals. Creek bed gravels were extensive, the soil and gravels of this area are gold and platinum bearing. Concerning lode mineralization, black, coarsely trachytic veins of horneblende clinopyroxenite (HC) were primary EM conductors, located by metal detector, using a sweeping motion over a width of 20m to cover the road and outcrops on either side. The HC veins protruded in a radiating and crosscutting pattern under and on both sides of the road. The conductivity of these veins are thought to account for recent aeromagnetic readings (ARIS 27009) and resultant EM hotspots outlined in the area. The high presence of ferrous lode and placer material proved difficult for the location of other non ferrous metals by EM location, which limited sample collection to visual identification. Greenstone float ranged from light and whitish pale green, to bright apple green, and occurred with more regularity as dark bluish/green and even black. Evidence of past work based on observation of recent fractures on outcroppings and geologist tape of previous operators marking sampling sites. Metal Detection technique: Make and model of the Metal Detector used was a 2005 (?) Fischer M-Scope 350, which featured an external speaker and is durable, lightweight, collapsible, practical for extended use and quick location of metal and gold. In a South direction starting at the roadcut indicated on figure 6, a length of approximately 1.5 km was swept at widths of 10m (20m total) on either side of the road from the road’s centre. The sweeping motion was vital in the location of numerous EM conductors, and sampling sites described herein. Goldpanning and sluicing techniques: Make and model of goldpan used for sampling was a 15” GPAA green plastic goldpan which features 4 1/4"-deep riffles. Make and model of Sluice used was a 2 piece, 72” Long Tom from Angus MacKirk. Only 1 section of the Long Tom was used (36”) This model was selected due to its light carry weight resultant in a quicker recovery time of precious metals versus using heavier metal versions. Soil and gravel were shoveled in the Sluice, and creek water served to agitate the and free lighter materials from the riffles of the sluice. The resultant heavier materials were collected and upgraded in the gold pan. This was performed on placer claim 558911 held by the owner in an effort to determine the host rock characteristics of the Avellino mineral claims just upstream.

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Table of samples COLLECTING SITE 1: 1-1 <30g. each. 3 samples

Representative of extensive weathered dunite (GREENSTONE) float that makes up about 2% of all dry till material including hillsides:

a. Serpentinized dunite float, black b. Serpentinized dunite float, light green c. Serpentinized dunite float, dark green 1-2 <30g. sample Finely disseminated chalcopyrite, fresh fracture. 1-3 <30g. sample Micaceous altered/weathered limestone host rock, fresh fracture. 1-4 >30g. sample Micaceous altered/weathered limestone host rock, visually homogenous with sample 1-3, collected 2’ apart at site. 1-5 <30g. sample Chip sample from Boulder. COLLECTING SITE 2 2-1 40g. +/- sample Chip sample from altered wallrock, similar to 1-3 and 1-4 2-2 60g. +/- sample Dense, mafic rock. 2-3 115g. +/- sample Lodestone float. COLLECTING SITE 3 3-1 30g sample Chip sample from altered wallrock, similar to 1-3 and 1-4 3-2 70g sample Representative sample of magnetic vein material likely hornblende clinopyroxenite 3-3 145g sample Representative sample of magnetic vein material 3-4 30g sample 2 Chip samples of wallrock host near fracture filled magnetic vein, reduced from a single 214g. sample 3-5 25g sample Representative chip sample of magnetic vein material

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COLLECTING SITE 4 4-1 15g sample Variant of vein material 4-2 15g sample Representative chip sample of vein 50% at host rock 50% (approx) 4-3 20g sample Representative chip sample of vein material 4-4 145g sample Representative sample of vein material 4-5 40g sample Representative chip sample of vein 60% at host rock 40% (approx) 4-6 310g sample Representative vein sample, unusually dense brown ore. Whole rock analysis requested 4-7 215g sample Representative vein sample, visible oxidation zones. Whole rock analysis requested COLLECTING SITE 5 5-1 30g sample Chip sample from oxidation zone 5-2 51g sample Chip sample from oxidation zone 5-3 25g sample Chip sample of wall rock near oxidation zone 5-4 90g sample Representative chip sample 5-5 15g sample Chip sample from oxidation zone 5-6 40g sample Representative Sample of vein material 5-7 340g sample Representative Sample of wallrock 92% and vein material 8% (approx) PLACER CONCENTRATES 6-1 490g sample Representative sample reduced from 11.5kg of alluvial concentrates in Newton Creek via sluice combined with magnetic separation 6-2 80g of total sample Representative rocks that comprise 8-15% of total alluvium in Newton creek

Page 15 Table of sample site locations NTS Map 092H SHOWING LATITUDE LONGITUDE ALTITUDE Av1 – 49° 27' 03.33" 120° 47' 53.66" 5343ft Av2 – 49° 26' 51.36" 120° 48' 02.91" 5321ft Av3 – 49° 26' 44.83" 120° 48' 04.88" 5344ft Av4 – 49° 26' 38.36" 120° 48' 07.18" 5318ft Av5 – 49° 26' 55.55" 120° 48' 06.56" 5425ft Newton C – 49° 26' 52.80" 120° 47' 44.90" 5023ft

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Statement of qualification For David Anthony Zamida, FMC Client 202028 Present Occupations/Engagements (include): (1990-present) Prospector. Ontario and British Columbia, Canada. (1998-present) President, Royal Okanagan Mining. Toronto, Ontario, Canada. (2006-present) Director, Absolute Mining LLC. Cheyenne Wyoming USA. (2006-August 2007) VP of Strategic Operations, Drake Gold. Las Vegas Nevada USA. Experience: (1990-present) Experience has been gained vastly through exploration, acquisition and development of mineral deposits of the Canadian Cordilleran region and Abitibi Greenstone belt in Canada. Over the last 16 years I have physically evaluated and sampled from over 200 mine sites to various degrees, including (Ontario’s) Kirkland Lake and Larder Lake, Sudbury, Temagami, Bancroft and Renfrew areas as well as (British Columbia’s) New Westminster, Similkameen, Victoria and Port Alberni mining districts, for commodities varying from precious and base metals, to uranium, gemstone and lapidary deposits. I currently manage a portfolio of placer and mineral exploration or development targets with gold, platinum, copper and nickel properties spanning over 30,000 acres. Royal Okanagan’s clientele includes public and private mining companies. Qualifications (related to this report): I am currently a licensed prospector in Ontario, British Columbia and Quebec and operate in both compliance and good faith to the acts of each respective mining jurisdiction of each province. Related competencies include gas drill operator, metal detectorist/tuner, gold panner, use of sluice, rocker, trommel, separation equipment, crushers, power equipment, hand tools such as picks, hammers, winnows, etc., and electronics such as geiger counters, ultraviolet lights, various magnetic equipment and handheld XRF with sound knowledge of radioactive source electronics and related risks and safety. Co-ordinate safety equipment and measures relevant to exploration performed. Valid Ontario driver license.

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Statement of Expense, June 24-June 26, 2007 Total overall expenses $6950.68 1. Travel expenses $720.18 Truck Rental, GMC Explorer, from Budget $720.18 for days used. 2. Hours and value of work $3745 -Dave Zamida, Field and Sampling Technician – 14 hours x 4.0 days x $45/hour = $2520 and 35 total hours (coordination, fieldwork, sample preparation, report preparation) -Daniela Acerra, Assistant 14 hours x 2.5 days x $35/ hour = $1225 and 35 total hours (fieldwork) 3. Laboratory Fees $1664.50 -30 sample analyses sent to Gault Group, Colorado contracting ALS Chemex of Nevada, performing analysis of samples, contracting ALS Chemex of Vancouver for analysis of platinum group elements. 4. Equipment, purchased or depreciated $276 -gold pan/classifier/ $27 purchased -sluice $125 usage ($250 div by 2 years) -camera $40 usage -gps $10 usage -maps/books $22 purchased (BC Backroads Mapbook, Mussio Ventures 2006, Okanagan) -protective eyewear $12 purchased -Fischer M-Scope 350 metal detector $40 usage (Val. incl accessories = $400 div 10 years) 5. Food and lodging expenses $545 June 24th to June 26th Sandman Inn, Princeton BC = $320 Food: $225.00 (2 people x 7.5 meals x $15/meal = $225)