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NI 43-101 TECHNICAL REPORT on the LYNX LAKE COPPER-COBALT PROPERTY Happy Valley – Goose Bay, Labrador, Canada by Edward Lyons, P.Geo. TEKHNE RESEARCH INC. Victoria, BC for KING’S BAY GOLD CORP. Vancouver, BC Effective Date 21 November 2016 Issue Date 30 November 2016

NI 43-101 TECHNICAL REPORT - King's Bay Gold … · NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR Page 2 of 29 Cautionary Statements Regarding Forward …

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NI 43-101 TECHNICAL REPORT

on the

LYNX LAKE COPPER-COBALT PROPERTY

Happy Valley – Goose Bay, Labrador, Canada

by

Edward Lyons, P.Geo.

TEKHNE RESEARCH INC.

Victoria, BC

for

KING’S BAY GOLD CORP.

Vancouver, BC

Effective Date 21 November 2016

Issue Date 30 November 2016

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

Page 2 of 29

Cautionary Statements Regarding Forward Looking Information

This Technical Report contains "forward-looking information" within the meaning of Canadian securities

legislation. All information contained herein that is not clearly historical in nature may constitute forward-

looking information. Forward-looking information includes, without limitation, statements regarding the

results of the Technical Report, including statements about the estimation of mineral reserve and resources

statements, future exploration on the project, the market and future commodity prices, permitting, and the

ability to finance the project.

Generally, such forward-looking information can be identified by the use of forward-looking terminology such

as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts",

"intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or

state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be

achieved".

Forward-looking information is based on assumptions believed to be reasonable at the time such statements

are made, including but not limited to, continued exploration activities, gold and other metals prices, the

estimation of initial and sustaining capital requirements, the estimation of labor and operating costs, the

estimation of mineral reserves and resources, the assumption with respect to currency fluctuations, the timing

and amount of future exploration and development expenditures, receipt of required regulatory approvals,

the availability of necessary financing for the project, the completion of the permitting process, and such other

assumptions and factors as set out herein.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may

cause the actual results, level of activity, performance or achievements of Logan Resources to be materially

different from those expressed or implied by such forward-looking information, including but not limited to:

volatile stock price; risks related to changes in commodity prices; sources and cost of power facilities; the

estimation of initial and sustaining capital requirements; the estimation of labor and operating costs; the

general global markets and economic conditions; the risk associated with exploration, development and

operations of mineral deposits; the estimation of mineral reserves and resources; the risks associated with

uninsurable risks arising during the course of exploration, development and production; risks associated with

currency fluctuations; environmental risks; competition faced in securing experienced personnel; access to

adequate infrastructure to support mining, processing, development and exploration activities; the risks

associated with changes in the mining regulatory regime; completion of the environmental assessment

process; risks related to regulatory and permitting delays; risks related to potential conflicts of interest; the

reliance on key personnel; financing, capitalization and liquidity risks including the risk that the financing

necessary to fund development and construction of the Project may not be available on satisfactory terms, or

at all; the risk of potential dilution through the issue of common shares; the risk of litigation.

Although Tekhne Research and the Issuer have attempted to identify important factors in this Report that

could cause actual results to differ materially from those contained in the forward-looking information, there

may be other factors that cause results not to be as anticipated, estimated or intended. There can be no

assurance that such forward-looking information will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such forward-looking information. Accordingly, readers should

not place undue reliance on forward-looking information. Forward-looking information is made as of the date

of this technical report, and the Issuer does not undertake to update such forward-looking information except

in accordance with applicable securities laws.

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

Page 3 of 29

CERTIFICATE OF AUTHOR

I, Edward Lyons, P.Geo., as an author of the technical report entitled “NI 43-101 Technical Report: Lynx Lake

Copper-Cobalt Property, Happy Valley – Goose Bay, Labrador, Canada” dated 21 November 2016 with the effective

date of 30 November 2016 and prepared for King’s Bay Gold Corp. (“Issuer”), do hereby certify that:

I am currently employed as a Geological Consultant and Director of Tekhne Research Inc. with offices at 1067

Portage Road, Victoria, BC V8Z 1L1.

1) I graduated with a Bachelor of Science (Honours) degree in Geology from the University of Missouri at Rolla in

1970.

2) I am a Professional Geoscientist enrolled with the Association of Professional Engineers and Geoscientists of

British Columbia (APEGBC) (Member # 122136), the Ordre des géologues du Quebec (OGQ) (Member # 701),

and the Professional Engineers and geoscientist of Newfoundland and Labrador (PEGNL) (Member # 05711.

3) I have worked as a geologist for a total of 44 years since my graduation from university. My experience has

included exploration and technical management on base-metal sulphide deposits in Canada for over 30 years

and base-metal oxide deposits in Chile and Mexico (4 years), precious metal (Au-Ag) in Canada and Mexico (6

years), graphite in Canada (14 years, including Qualified Person for 10 NI 43-101 reports), and iron deposits in

BC, QC, and NL 7 years, including acting as Qualified Person on five NI 43-101 reports). All works were mainly

on site.

4) I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify

that, by reason of my education, affiliation with a professional association as defined in NI 43-101, and past

relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

5) I am responsible for entirety of the technical report entitled “NI 43-101 Technical Report: Lynx Lake Copper-

Cobalt Property, Happy Valley – Goose Bay, Labrador, Canada” dated 13 November 2016.

6) I visited the Lynx Lake Property for one day on 12 November 2016.

7) As of the effective date of the certificate, to the best of my knowledge, information, and belief, the Technical

Report herein contains all scientific and technical information that is required to be disclosed to make the

Technical Report not misleading.

8) I have no personal knowledge, as of the date of this certificate, of any material fact or material change which is

not reflected in this Technical Report.

9) I am independent of the Issuer King’s Bay Gold Corp., and of the Vendor, Crooks Lake Holdings Ltd., applying all

the tests in section 1.5 of the NI 43-101 instrument.

10) I have not had any prior involvement with the Property that is the subject of this Technical Report.

11) I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that

instrument and form.

Dated on 30 November, 2016

<Signed & sealed in the original>

Edward Lyons, P.Geo.

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

Page 4 of 29

TABLE OF CONTENTS

Title Page

Date and Certificate of Author

Table of Contents

Illustrations

1 Summary ……………………………………………………………………………………………………..…………..6

2 Introduction …………………………………………………………………………………………………………..…7

3 Reliance on Other Experts ………………………………………………………………………………….…....9

4 Property Description and Location …………………………………………………………………….…….9

5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ……………….13

6 History ………………………………………………………………………………………………………….…….….15

7 Geological Setting and Mineralization ……………………………………………………………….......16

8 Deposit Types ………………………………………………………………………………………………….……..24

9 Exploration ……………………………………………………………………………………………….…………...25

10 Drilling ……………………………………………………………………………………………..…………..…….....25

11 Sample Preparation, Analyses and Security ……………………………………………………...…….25

12 Data Verification ……………………………………………………………………………………….………..….25

13 Mineral Processing and Metallurgical Testing ……………………………………………………..….25

14 Mineral Resource Estimates …………………………………………………………………………………...25

15 Mineral Reserve Estimates …………………………………………………………………………..…..….…25

16 Mining Methods ……………………………………………………………………………………………..…...…25

17 Recovery Methods ………………………………………………………………………………………………....25

18 Project Infrastructure ………………………………………………………………………………………........25

19 Market Studies and Contracts …………………………………………………………………………...……25

20 Environmental Studies, Permitting and Social or Community Impact ……………………...25

21 Capital and Operating Costs …………………………………………………………………………….…….25

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

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22 Economic Analysis …………………………………………………………………………………………..….…26

23 Adjacent Properties ………………………………………………………………………………………..….…26

24 Other Relevant Data and Information ……………………………………………………………..……26

25 Interpretation and Conclusions ……………………………………………………………………..........27

26 Recommendations …………………………………………………………………………………………….….27

27 References ………………………………………………………………………………………………………......28

Illustrations

Figure 1 Location of Lynx Lake Property in Labrador Canada ..................................................................... .9

Figure 2 Claims Map: Lynx Lake Property …..………..…………………………………………………………………………….….11

Figure 3 UAV view above CA Pit to WSW with Muskrat Falls hydro line and St. Augustin River……..………14

Figure 4 UAV view above New Pit to ESE………………………………………………………………………………………………..15

Figure 5 CA and New Pits on Hwy 510 . ..................................................................................................... 16

Figure 6 Grenville Province with major terranes……………..…………………………………………………………….…….…17

Figure 7 Grenville thermochron map ......................................................................................................... 18

Figure 8 Time & orogenic history of Grenville Province, eastern Labrador …….……………………………………..20

Figure 9 Residual aeromagnetic map ......................................................................................................... 21

Figure 10 Lynx Lake Property Geology. ...................................................................................................... 23

Figure 11 Lynx Lake Property with adjacent mineral licenses……………………………………………………….….……26

Tables

Table1 Units & Abbreviations....................................................................................................................... 5

Table 2 Claims List for Lynx Lake Property.. ............................................................................................... 10

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

Page 6 of 29

1 SUMMARY

The Lynx Lake Property located approximately 134 km south and east by all-weather highway from Happy

Valley-Goose Bay, the regional centre for Labrador, Canada. Highway 510, the only main year-round road in

southeastern Labrador, passes through the north-central part of the property. The Property consists of 13

Mineral Licenses comprised of 959 on-line staked mineral claims of 25 hectares each for a total area of 23,975

ha (23.975 km2). The mineral rights apply to minerals hosted in the bedrock directly beneath the claim

boundaries.

On 27 October 2016, King’s Bay Gold Corporation (TSXV-KBG) (the "Issuer”) announced that it has entered into

an agreement dated 4 October, 2016 with Crooks Lake Holdings Ltd ("CLHL"), Cameron Martin, and Jeffrey

Martin, jointly the Vendors (“Vendor”), to acquire 100% interest in the Lynx Lake Property (formerly named

Crooks Lake Property) located in southeastern Labrador, Canada .

Under the terms of the Agreement, and subject to the approval of the TSX Venture Exchange, the Issuer will

acquire 100% interest and rights in the property by paying CLHL an aggregate of C$100,000 in cash, $10,000

being payable upon signing with C$30,000 payable on each of the three subsequent anniversaries of the

Agreement.

The Issuer will issue 900,000 common shares payable to CLHL as 200,000 shares upon exchange approval with

a tranche of 300,000 shares on the first year anniversary and 400,000 shares on the second anniversary of the

Agreement.

The Vendor retains a 1.5% Net Smelter Return (NSR) upon commencement of commercial production. The

Issuer can purchase 50% of the NSR from the Vendor at any time during the Agreement for C$1,000,000.

Additional mineral claims associated with the property by either the Issuer or Vendor during the term of the

Agreement will be subject to the same NSR terms.

The property is accessible from Happy Valley-Goose Bay, Labrador, the regional centre of Labrador and nearest

airport, by travelling west on Highway 500 nine km to the junction with Highway 510, the Trans-Labrador

Highway and turning left (south) for 125 km to the road into the New Pit south (right side) of the highway. The

CA Pit is about 1.6 km further ahead on the right (south) side adjacent to the highway. Highways 500 and 510

are all-weather roads paved to about 85 km on Highway 510 from Highway 500 and recently widened gravel

further to the east-southeast.

The area is rolling, forest covered hills with moderate to steep slopes and flatter valleys and tops. It appears to

be a glacial peneplain dissected by glacio-fluvial erosion. Moraine and esker glacial deposits locally shape the

topography as well. Elevations range from 390 m in lakes and valleys to ~500 m on the flat hill tops. The

nearest town is the town of Happy Valley-Goose Bay. Some heavy equipment and operator services are

available there, as well as transportation, food, and accommodation. More complete services, including drilling

and mining contractors, are available 500 km to the west in Labrador City, Labrador, the regional iron mining

centre.

Historically, the Vendor has conducted prospection-level exploration work from late 2009 to early 2016. The

annual assessment reports to the Newfoundland and Labrador government and recent documents provided by

the Vendor permit an evaluation of the Property. Many years of regional geological research, field work, and

studies by Dr. Charlie Gower of the Newfoundland and Labrador Department of Mines and Energy Geological

Survey, his associates, and students have contributed extensively to the understanding of the Grenville

Province development in south-central and eastern Labrador.

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

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The regional and property geology are formed on the accretion of various island arc terranes between 1800

through 1600 Ma that formed the Trans-Labradorian supercrustal assemblage, a Himalayan sized mountain-

building event that increased the southeast margin of the Laurentia Craton. The final pulse of the Laurentia

craton was the collision between Amazonia and Laurentia during the 1085 to 945 Ma period was the Grenville

Orogeny that overprinted the previous events and started the final assembly of Laurentia and the formation of

the supercontinent Rhodinia. Mineralisation on the Lynx Lake Property appears to be associated with the

waning phases of the Grenville Province event.

Results of the prospecting programs returned a number of sulphide samples with values up to 1.39% copper

and 0.94% cobalt in grab samples. The nature of the deposit remains uncertain and doesn’t match several

typical Cu-Co models. The sulphide mineralisation is associated with amphibolite intrusions into granitoid host

rocks. Sulphides occur as disseminations, possibly the original form of mineralisation, which may have been

remobilized into late joint fractures and veins. Mineralisation extends into the country rock near the two

quarry pits. The minerals are mainly pyrite with lesser chalcopyrite and magnetite and minor pyrrhotite,

sphalerite, and molybdenite flakes. Rutile can accompany the larger magnetite lenses. No specific Co-bearing

mineral was identified in thin section or SEM scan; it may be dissolved in the general sulphide minerals. A

possible source of elements may be hydrothermal water derived from the late- to post-Grenville age (~900

Ma) M3 granitoid intrusions nearby. These are undeformed and unmetamorphosed which would coincide with

later fracture development.

Besides the usual geological risks inherent in early-stage exploration, other risks can include (from moderate to

low): establishing a positive relationship and agreements with the First Nations owners of the lands (Labrador

Innu north of Hwy 510 and possibly the NunatuKavut Community to the south and east); access to water rights

for production and processing; permits for surface rights for production, processing and tailings; and access to

adequate power and other infrastructure requirements for development and processing.

The recommended work program consists of two phases. Phase 1 will focus on detailed geological mapping of

the showings and their extensions developed by trenching; detailed sampling of the several types of sulphide

types (dissemination, veins) and petrographic studies to determine the mineralogy; channel sampling to

determine the bulk grades in showings; and design and execution appropriate geophysical surveys to test

extension of the showings as well as determine property-wide prospection methods. The budget is C$ 72.500.

Phase 2 works would focus on drilling to test targets defined in Phase 1. Six diamond drill holes totaling 900 m

would test both Pit zones and extensions. Cost, including technical and analytical support, is estimated at C$

238,000. Applicable taxes are extra and no contingency was included.

2 INTRODUCTION

2.1 Issuer

The Issuer of this report is King’s Bay Gold Corp. which is based at #1450 -789 West Pender St., Vancouver, BC,

Canada, and trades on the TSX- Venture Exchange under the symbol KBG.

2.2 Term of Reference

King’s Bay Gold Corp. (“King’s Bay” or the “Issuer”) engaged the services of the author through Tekhne

Research Inc. of Victoria, BC on 10 November 2016 to write an independent NI 43-101 Technical Report on the

Lynx Lake Copper-Cobalt Property southeast of Happy Valley – Goose Bay, Labrador, Canada as part of its

qualifying documentation for the TSX Venture Exchange.

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

Page 8 of 29

2.3 Sources of Information

The Lynx Lake Property, formerly known as the Crooks Lake Property, has had grass-roots prospecting level

exploration since 2009 by the Vendor. These are documented in the Newfoundland and Labrador (NL) annual

assessment reports.

The author reviewed documents made available by the Vendor to the Issuer and the author in October and

November, 2016, as well as independent data research by the author. The Issuer provided a copy of the

executed Property Agreement dated 4 October and the author summarised to details herein; no independent

legal opinion was requested.

The historical and scientific sources are publications listed under References herein. They include regional

geological and geophysical surveys done by the Newfoundland and Labrador Geological Survey and the

Geological Survey of Canada. Private reports of mineralogical studies were available.

The author visited the property and area for one day on 12 November 2016. The Vendor’s representative,

Cameron Martin of Labrador City, NL, showed the author the locations of the principal rock sampling reported

in chemical analyses. Snow cover hindered a fuller review of the site geology. However, evidence of

mineralisation described in various reports was readily seen on steep outcrops in the blasted quarries. Mr.

Martin has been directly responsible for most of the exploration work and assessment reports to date.

2.4 Units and Abbreviations

Units of measurement in this report are quoted in the metric system. Assay and analytical results are quoted in

parts per million (ppm). Other acronyms and abbreviations are listed below in Table 2.1.

Table 1 Units and abbreviations

AA Atomic Absorption Spectrometry analytical technique

ASL Above Sea level

˚C degrees Centigrade

cm centimeter = 0.3937 inch

Co cobalt

core diamond drill core

CSAMT or MT Controlled Source Audio Magnetotelluric electromagnetic geophysical survey method

Cu copper

GIS Geographic Information System

GPS Global Positioning System satellite-based navigation system

GSC Geological Survey of Canada

GSNL Geological Survey, Mine Branch, Dept. of Natural Resources, Newfoundland and Labrador

ha hectare = 2.471 acres

ICP/MS Inductively Coupled Plasma Mass Spectrometry analytical technique

IP Induced-Polarization geophysical surveying method

kg kilogram = 2.205 pounds

km kilometer = 0.6214 mile

Kv kilovolt = 1000 volts

l liter = 1.057 US quart

Ma million years old

µm micron = one millionth of a meter

m meter = 3.2808 feet (1,000 meters = 1 kilometer)

NL Newfoundland and Labrador Province

oz. troy ounce (1 troy ounce = 34.2857 g)

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

Page 9 of 29

ppm parts per million (1 ppm = 1 g/t)

ppb parts per billion (1,000 ppb = 1 ppm)

SEM Scanning Electron Microscope

t metric ton = 1.1023 short tons

ton short ton (= 2000 lbs or 907.2 kilograms)

VLF Very Low Frequency electromagnetic geophysical survey method

Zn zinc

3 RELIANCE ON OTHER EXPERTS

The author relied on data from the Newfoundland and Labrador Mineral Rights Inquiry online reports

reviewed on 21 November 2016 that includes claims registered as recently as 30 days from the search date.

4 PROPERTY LOCATION AND DESCRIPTION

4.1 Location

The Lynx Lake Property consists of 13 Mineral Licenses located approximately 134 km south and east of Happy

Valley-Goose Bay, the regional centre for Labrador, Canada. Highway 510, the only main year-round road in

southeastern Labrador, passes through the north-central part of the property.

Fig. 1 Location of Lynx Lake Property in Labrador, Canada

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

Page 10 of 29

4.2 Property Description and Ownership

As of 21 November 2016, the Newfoundland and Labrador Mineral Rights Inquiry online documents that the

Lynx Lakes Property has 13 Mineral Licenses composed of 959 on-line staked mineral claims of 25 hectares

each for a total area of 23,975 ha (23.975 km2). The mineral rights apply to minerals hosted in the bedrock

directly beneath the claim boundaries. The on-line staking procedure means that the claim cells are located on

the government UTM grid NAD 27 across the province of Newfoundland and Labrador and thus there is no

chance for overstaking (duplication of title) or fractional unclaimed areas. No monuments are placed in the

field.

The Vendor, collectively comprising Crook Lake Holdings Ltd., Cameron Martin, and Jeffrey Martin, is the sole

registered claim owner.

Crooks Lake was original property name of the nine mineral licenses (84 claims) as the name of the nearest

named topographical entity. A smaller lake on the St. Augustin River that crosses the property was named Lynx

Lake and that has been adopted by the Issuer and Vendor for the property name. The original license numbers

are correlated with recent license reacquisition and the assignment of the ownership to Crook Lake Holdings

Ltd. These are marked as “same” or the previous license numbers on the table. Subsequent to signing in

October, 2016, an additional four mineral licenses totally 875 claims were mutually included in the Agreement

and are labeled “new” in the table.

The list of mineral licenses and number of claims is shown on Table 2. No legal surveys of the placer claims

have been made on the property.

Table 2 Claims List for Lynx Lake Property

Mineral

License Claims

Issuance

Date Reg. Owner

NTS

Map

NTS

Map

NTS

Map

NTS

Map

pre-Agmt

Min Lic

020271M 14 2012-06-21 Crooks Lake Holdings Ltd 13B/11 Same

020272M 11 2012-06-21 Crooks Lake Holdings Ltd 13B/11 Same

021865M 10 2014-02-20 Crooks Lake Holdings Ltd 13B/11 Same

022238M 5 2014-06-12 Crooks Lake Holdings Ltd 13B/11 Same

022241M 4 2014-06-12 Crooks Lake Holdings Ltd 13B/11 Same

023228M 22 2015-07-30 Crooks Lake Holdings Ltd 13B/11 019380M

023907M 6 2016-05-05 Crooks Lake Holdings Ltd 13B/11 016625M

024065M 6 2016-08-03 Crooks Lake Holdings Ltd 13B/11

016625M

016823M

016824M

024067M 6 2016-08-03 Cameron Martin 13B/12 Same

024424M 242 2016-11-18 Crooks Lake Holdings Ltd 13B/12 13B/05 New

024425M 250 2016-11-18 Crooks Lake Holdings Ltd 13B/11 13B/12 13B/05 13B/06 New

024426M 249 2016-11-18 Crooks Lake Holdings Ltd 13B/11 13B/12 New

024427M 134 2016-11-18 Crooks Lake Holdings Ltd 13B/11 13B/06 New

959 Total Claims

23,975 Area (ha)

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

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Licenses are granted for five-year periods to a maximum of 20 years. Fees paid every fifth year range from $25

to $100 per claim. Annual assessment work is also required on the claims to maintain their validity with

increasing minimum expenditures ranging from $200 to $400 through the first five years then $600, $900, and

$1200 per claim per year through years 5-10, 10-15, and 15-20 year periods. Technical assessment reports

similar to the NI 43-101 style are required within 60 days after the end of the anniversary date. These are kept

under confidentiality for three years by the Newfoundland and Labrador government.

Figure 2 Claims Map: Lynx Lake Property

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

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4.3 Issuer’s Interest

On 27 October 2016, King’s Bay Gold Corporation (TSXV-KBG) (the "Issuer”) announced that it has entered into

an agreement dated 4 October, 2016 with Crooks Lake Holdings Ltd ("CLHL"), Cameron Martin, and Jeffrey

Martin, jointly the Vendors (“Vendor”), to acquire 100% interest in the Lynx Lake Property (formerly named

Crooks Lake Property) located in southeastern Labrador, Canada .

Under the terms of the Agreement, and subject to the approval of the TSX Venture Exchange, the Issuer will

acquire 100% interest and rights in the property by paying CLHL an aggregate of C$100,000 in cash, $10,000

being payable upon signing with C$30,000 payable on each of the three subsequent anniversaries of the

Agreement.

The Issuer will issue 900,000 common shares payable to CLHL as 200,000 shares upon exchange approval with

a tranche of 300,000 shares on the first year anniversary and 400,000 shares on the second anniversary of the

Agreement.

The Vendor retains a 1.5% Net Smelter Return (NSR) upon commencement of commercial production. The

Issuer can purchase 50% of the NSR from the Vendor at any time during the Agreement for C$1,000,000.

Additional mineral claims associated with the property by either the Issuer or Vendor during the term of the

Agreement will be subject to the same NSR terms.

4.4 Environmental Liabilities

No known environmental liabilities exist on property. The rock quarries were operated by the NL Dept. of

Highways and were left in a clean condition to provincial standards.

4.5 Permitting

No exploration permits exist or are under application at the date of this report. The Province of Newfoundland

and Labrador administers the exploration and development permits for this area.

4.6 Social or Community Impacts

No towns or settlements lie within 50 km of the project area.

The only recorded First Nations land claim underlying the property has been made by the Labrador Innu in the

Labrador Innu – Province of Newfoundland and Labrador Agreement in Principle (AiP) dated 2011. The AiP has

not been finalized yet. The person knowledgeable on this file at the Labrador-Aboriginal Affairs Office (LAAO)

advised the QP that the boundaries of areas agreed in the AiP are likely to remain unchanged.

One of the land parcels in the AiP underlies the Property north of the Highway 510 centerline. It is defined as

Labrador Innu Land (LIL) in Sections 5.14, 5.15, and 5.23 in the AiP, which can be downloaded from the LAAO

website and is shown on Map 5-S in the same document. A proponent of any development in First Nation

lands has a legal duty to consult with the relevant First Nation. Any permit applications to the NL government

for exploration or exploitation works must also be submitted to the Labrador Innu. The most southerly part of

the LIL is shown on the claim map and underlies the northern quarter of the property. The known showings are

outside the LIL.

The NunatuKavut Community, formerly known as the Labrador Metis, is the Inuit community claiming

traditional rights in south-central Labrador. It may impact the land use on the Property, but the area under

claim is unknown to the author.

NI 43-101 TECHNICAL REPORT – LYNX LAKE CU-CO PROPERTY, LABRADOR

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The northern boundary of the property now abuts the southern limit of the Mealy Mountains Exempt Mineral

Lands wherein the land is not available for exploration. This does not directly affect the mineral rights on the

property

4.7 Other Risks

There is a moderate risk to development or exploration access north of Hwy 510 since the Labrador Innu need

to agree to any permit application. Their nascent political and administration structures may not be familiar

with mineral exploration.

There are low to moderate risks associated with executing the technical program recommended in this report.

Water and space for future development are available on and around the property.

No other environmental, social, or community risks are foreseen.

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

5.1 Accessibility

The property is accessible from Happy Valley-Goose Bay, Labrador, the regional centre of Labrador and nearest

airport, by travelling west on Highway 500 nine km to the junction with Highway 510, the Trans-Labrador

Highway and turning left (south) for 125 km to the road into the New Pit south (right/south side) of the

highway. The CA Pit is about 1.6 km further ahead on the right/south side adjacent to the highway. Highways

500 and 510 are all-weather roads paved to about 85 km on Highway 510 from Highway 500 and recently

widened gravel to the east-southeast.

5.2 Climate and Vegetation

The northern boreal forest region receives an extreme range of weather conditions throughout the year.

Summers are short, from June to September with variably dry to wet with local storms, which may give heavy

rainfall. Humidity ranges from very dry to quite humid. Temperatures can reach 30°C with dry winds. Lightning

from thunderstorms is a frequent cause of forest fires, which are a normal hazard in any 20-year period.

Autumn is quite changeable with abrupt shifts from almost summery conditions to frost and back in 48 hours.

As the autumn progresses, colder days are more frequent, and snow may start as early as late September, but

more commonly, snow stays on the ground after mid-Nov. Winter is cold with very short days and

temperatures to -40°C. Snow may come in storms with 50 cm snowfalls. Spring is the opposite of autumn in

the variability of daily temperatures and precipitation. It lasts from April to June. However, frost as well as

above freezing temperatures may occur in any month of the year. Except for the occasional heavy snow fall,

mining operations would not be affected by the climate.

The vegetation is typical boreal to sub-boreal forest. Black spruce and poplars are common larger trees with

willow, tamarack, and alder as shrubs. Understory plants include Labrador tea, a native rhododendron, and

bog laurel. Various mosses and lichens are common especially on sandy glacio-fluvial soils. Valleys are typically

swampy watercourses and string swamps can fill shallow undulations in the topography.

5.3 Local Resources and Infrastructure

The nearest town is the town of Happy Valley-Goose Bay some 134 km by road to the northwest. Some heavy

equipment and operator services are available there, as well as transportation, food, and accommodation.

More complete services, including drilling and mining contractors, are available 500 km to the west in Labrador

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City, Labrador, the regional iron mining centre.

There is no existing power or other facilities, except road access, on the property. The main transmission line

for NALCOR’s Muskrat Falls Hydroelectric Project is under construction across the northern part of the

property about 1.5 km west of the showings and parallels Highway 510.

Figure 3 UAV view above CA Pit to WSW with Muskrat Fall hydro line and St. Augustin River (Photo: UAV May 2016 C. Martin)

Water is available from several lakes near the showings as well as the St. Augustin River that the highway

crosses between the two pits.

5.4 Physiography

The area is generally rolling, forest covered hills with moderate to steep slopes and flatter valleys and tops. It

appears to be a glacial peneplain dissected by glacio-fluvial erosion. Moraine and esker glacial deposits locally

shape the topography as well. Elevations range from 390 m in lakes and valleys to ~500 m on the flat hill tops.

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Figure 4 UAV view above New Pit to ESE

(Photo: UAV May 2016 C. Martin)

6 HISTORY

Prior to October, 2009, no claims were made nor exploration work conducted on the current Lynx Lake

Property. In autumn 2009, after Cameron Martin, who was surveying on the highway crew, found signs of

sulphide mineralisation in the initial road materials quarry, the CA Pit, the initial three mineral licenses

(016625M, 16823M, and 016824M) were acquired by John Martin with his brothers, Cameron and Jeffrey in

late 2009. The property was named Crooks Lake for the nearest named topographic feature about 3 km north.

These are currently held as Licenses 023907M and 024065Mwhich were relocated in summer 2016. Additional

claims were added in 2010-14. The New Pit quarry opened a year later to the west-northwest with similar

mineralisation and the Martin brothers staked two licenses in 2011 (020271M and 020272M) followed by

three more in 2014 (021865M, 022238M, and 022241M) to maintain a contiguous group (see Table 1.) They

conducted prospecting-level exploration works during this period and have filed assessment reports detailing

the results.

Between 2009 and 2014, work on licenses 016625M, 016823M, and 016824M around the original CA Pit

included 45 rock grab samples and seven lines of EM-16 geophysical surveys covering 5,355 ln-m. Eight

samples returned assays with Co ranging 0.2 to 0.57% Co together with Cu ranging from 0.3% (as ppm

analyses) to 1.39% assayed. The EM-16 surveys were mostly oriented Wes-East and returned one strong and

several modest conductor anomalies. Data filtering was done only a few lines, so the strength of possible

conductors in the raw data is difficult to assess for the other lines. In 2014, work was done on license 021865M

east of the CA Pit license; no outcrop was located. Two EM-16 VLF geophysical lines, aligned west-east and

totaling 1,000 m, were surveyed with very weak conductors.

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Figure 5 CA and New Pits on Hwy 510

In 2010-2015, license 020271M where the New Pit is located was the source of 77 samples for Au and 30

element ICP analyses with follow-up assays on higher grade samples of which nine returned Co values 0.125 to

0.4% Co with Cu < 1% by ICP. Additional road material quarrying in 2014 deepened the western half of the

New Pit, exposing abundant sulphide veins and disseminations associated with a “metagabbro” body.

In 20014, two licenses (022238M and 022241M) covering the west and east extensions of the New Pit geology

were tested with two EM-16 VLF geophysics lines for a total of 1,000 m. The license south of the New Pit,

020272M, was prospected without finding any outcrops. Four EM-16 VLF geophysical lines, aligned west-east

and totaling 5,000 m, were surveyed with very weak conductors.

In mid-2015, the brothers formed Crooks Lake Holdings Ltd., and additional licenses were added in 2015 and

2016. Crooks Lake Holdings with Cameron and Jeffrey Martin, jointly named as the vendor, agreed to the sale

of the property, renamed as the Lynx Lake property, to King’s Bay Gold Corp. in October 2016. Subsequent to

the acceptance of the agreement, additional licenses were staked and have been recorded in the NL Mineral

Rights database as of 18 November 2016. No work has been undertaken on the new licenses.

Data on the status of the licenses was verified by the author on 20-21 November 2016 from the NL Minerals

Lands database online.

7 GEOLOLOGICAL SETTING & MINERALISATION

7.1 Regional Geological Setting

Dr. Charles F. Gower of the NL Geological Survey Branch and his associates have been the principal mappers

and researchers in the eastern Labrador sector of the Grenville Province since 1984. The Grenville Province

extends from the Atlantic coast west and southwest for over 2,000 km and has affected the terranes that

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assembled the southeasterly margin of the pre-Rhodinia Laurentian craton. The Grenville orogeny was the last

of four major orogenies that occurred from about 1,100 to 950 Ma and affected the older terranes. The

Grenville Orogeny formed a long mountain chain likened to the modern Himalaya Mountains. The exhumed

deep orogenic roots are expressed in highly metamorphosed sedimentary and volcanic rocks as well as older

intrusive granite and gabbro type rocks. Interpretation of the pre-Grenville history is complicated by the

intense metamorphism and structures generated in part by the Grenville compressional events. The

recrystallisation and partial melting of sedimentary rocks mimics metamorphosed plutonic intrusions, leading

to a range of petrographic descriptions and interpretations. Gower (1999, 2001) discusses these issues.

In the eastern Labrador region, the Grenville is divided into Autochthonous Belt adjacent to the Superior

Craton was derived from marginal sedimentary and volcanic basins. This group of terranes (Gagnon, part of

Churchill Falls (?)) hosts the major iron formation deposits in Canada and several of the larger graphite

deposits as well. The Allochthonous Belt crosses southern Labrador and eastern Quebec with the southern

limit at the Logan Fault under the St. Lawrence River. It is composed of an outer and an inner magmatic belt,

each composed of a number of terranes. The inner belt hosts Labradorian and Pinwarian aged orogenic

intrusive, sedimentary, and volcanic rocks, all highly metamorphosed. Gower (2002) summarised the regions in

Figure 6. The Lynx lake Property straddles the Exterior and Interior Magmatic Belts, which locally separates the

older Pinware orogenic suite from the Mesoproterozoic Mealy Mountains Terrane.

Figure 6 Grenville Province with major terranes (star = Lynx Lake Property)

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The peak of the Grenville metamorphic event over time is shown the Figure 7. The thermochrons are lines of

equal age and temperature. The core of the energy lies in deep-seated magmatism which progressed from

south to north. The heat affected rocks above and laterally on both sides with a shorter distance ahead of the

advancing magmatic front. The U-Pb dates in the intrusions provide a window on the heat at depth. The most

intense heat which set the metamorphism and was captured in mafic minerals and muscovite lies to the north

with waning temperatures to the south over time. Late- to post-Grenville unmetamorphosed and undeformed

granitic plutons intruded mainly within the Pinware Terrane, but straddled the cryptic terrane boundary into

the southernmost part of the Mealy Mountains Terrane. The intrusions are associated with resurgent crustal

melting in the exhumed deep orogenic Pinware rocks (Gower, 2003). The Lynx Lake property lies near the most

northerly point of the intrusive area.

Figure 7 Grenville thermochron map

The assembly of the Grenville Terrane over time represents several accretionary arcs over about 800 million

years. The pre-Labradorian Makkovik Orogeny, which arose from the collision of the continental Makkovik arc

(north) with the Cartwright island arc (south), formed the accreted Cartwright arc (1800-1740 Ma). The

Pinware arc collided with this earlier accreted block. The Labradorian Orogeny (1680-1600 Ma) started with

the Labrador arc docking on the Pinware arc. The accreted supracrustal rocks ramped onto the older terranes

with sediments deposited in the fore-arc basin. As the basin closed, the Trans-Labradorian magmatism

intruded into the sedimentary pile. Subduction stopped and the now-static Labradorian mountains recycled

subducted mafic-anorthosite-monzongranite magmas into the core of the mountains. Isostatic uplift and

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erosion exhumed the Labradorian mountains by about 1600 Ma. Hewitson (2010) hypothesized that the Trans-

Labradorian zone comprises one supracrustal block based on Nd isotope data.

After a 500 Ma hiatus, the Grenville Orogeny started with the collision of the Amazonia and Laurentia cratons.

Grenville orogenesis started about 1085 Ma and ended around 945 Ma. The suturing of the two cratons was

part of the formation of the supercontinent Rhodinia. Late granitic and mafic intrusions occurred in the cool-

down phase of the orogeny. Figure 8 illustrates these relations.

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Figure 8 Time & orogenic history of Grenville Province, eastern Labrador

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The regional residual aeromagnetic map (Figure 9) shows the general contrast between the Mealy Mountains

and Pinware Terranes. In detail, there is local variability due to the presence of more mafic intrusives and

plutons in both terranes. Interestingly, the late M3 granite and syenite intrusions have pronounced magnetic

signatures. Possibly the Fe content, while generally low in these rocks, could be all converted to magnetite in a

reducing environment. Even with an natural 1-2.5% Fe component in granite, the magnetics would show a

moderate to strong contrast. An example of this process is the magnetic Archean Kam-Kotia rhyolite, near

Timmins, Ontario, that has normal calc-alkaline chemistry, including ~1.5% total Fe. The rock is magnetic to a

hand-held pencil magnet and the hill was used as a magnetic calibration point for airborne mag surveys in the

1970s. Interestingly, the M1 amphibolite unit mapped north of the MMIS-Pinware terrane boundary shows

lower magnetic contrast than do the late granitic plutons.

Figure 9 Residual Aeromagnetic map

MMIS = Mealy Mountain Intrusive Suite PINWARE = Pinware Terrane

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7.2 Property Geology

7.2.1 Stratigraphy

Gower (1999, 2001) noted that the area on NTS sheets 13B/11, 12 and the northern parts of 05 and 06 around

the property have very little outcrop exposure. The few units tough enough to resist glacial erosion, such as

pegmatite and meta-quartzite, likely form only a small portion of actual lithologic volume.

The general geology around the property is illustrated in Figure 10. It straddles the cryptic Mealy Mountains –

Pinware boundary. Gower (1999, 2003) used the term “cryptic” since the rocks on both terranes looks quite

similar. However, the radiometric ages show the Pinware as somewhat older, consistent with the accretionary

model in Figure C. Subtle petrographic characteristics can help distinguish the two terranes. But the

coalescence of the two into one supracrustal entity, demonstrated by Hewitson (2010) makes field distinctions

difficult.

The distinction of potential economic merit is between the pre- and post-Grenville units. Gower (1999, 2001,

2010) suggests that “gabbro” was emplaced in late or even post-Grenville time (< 900 Ma). No age-dating

confirms this, but the very limited outcrop data suggests the possibility, at least for a few places, including the

Lynx Lake pits. The property area includes late Grenville undeformed and unmetamorphosed granite bodies

and possibly equivalent gabbro dykes.

Figure 10 shows the grosser units. However, the host for mineralisation appears to be associated with local-

scale intrusions.

7.2.2 Structure

No proper geological mapping of the property or even the two pit showings has been done to date. The

author’s noted on the one-day site visit that there were some trends readily visible. These were essentially E-

W trends of the mafic dyke (?) contacts and associated foliation of adjacent granitoid rocks. Young

micropegmatite “injection” veins in the granitoid and gabbro appeared to be oriented roughly N-S with

shallow east and west dips and anastomosing “vein” relationships. The gabbro hosted sheeted joints with one

principal direction parallel to the contacts and dipping steeply to the south (dominant) and north (less

frequently). Other directions may be present but the snow cover precluded a more detailed assessment. It is

interesting to note that the intrusive contacts, based on limited information, are oriented about 30° east of the

general unit alignment as shown on Gower’s 2010 map.

7.2.3 Metamorphism

The metamorphic grade around the property is middle to upper amphibolite facies for the MMIS and Pinware

lithologies. The late- to post-Grenville granitoids show no deformation or metamorphism (Gower, 1999, 2001).

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Figure 10 Lynx Lake Property Geology (after Gower, 2001 & 2010)

MMIS = Mealy Mountains Intrusive Suite ; M3 units are late to post-Grenville undeformed granitoid intrusives;

Dash contact is cryptic boundary between Pinware and MMIS terranes.

7.2.4 Alteration & Mineralization

Sulphide mineralisation is similar in the two showings. Medium to coarsely crystallised sulfides occurs with

quartz, orthoclase/plagioclase, and minor muscovite in planar veins occupying straight joint sets in the gabbro

and less so in the adjacent granitoid host rocks. Sulphides are also disseminated in the gabbro and appear in

hand lens to be interstitial to the silicate minerals, suggesting a co-development; disseminations are less

common in the flanking granitoids, but how extensive they continue is uncertain. Locally, segregations of

magnetite and sulphides occur in the gabbro. The two observed by the author were close to contacts with

granitoid host. Cameron Martin says several high-magnetite samples were informally analyzed at the Iron Ore

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of Canada mine laboratory in Labrador City, NL, where he works, and they returned around 45% Fe, which

translates to ~30% magnetite, assuming all the analysed Fe was in magnetite. The extent of this mineralisation

is unknown, but the regional aeromagnetic map shows a mag low at the New Pit and average at the CA Pit; the

late intrusives show stronger magnetic signatures.

The one petrographic samples sent by Altius (2013) for scanning electron microscope (SEM) analysis by Dr.

Derek Wilton of Memorial University of Newfoundland (MUN) and three polished thin section sent by Callinan

Royalties (2014) to Jean-Luc Pilote, MSc at MUN yielded similar information regarding the sulphide minerals.

The SEM sample location was unknown to Wilton. It was massive sulphides with >90% pyrite and lesser

amount of chalcopyrite and magnetite inclusions. Tiny blebs of pyrrhotite were in the pyrite and magnetite

grains, while minor tiny inclusions of sphalerite were in chalcopyrite. No cobalt-bearing mineral phases were

detected. The form of the grains suggested that there was some post-deposition deformation with minor

chalcopyrite + sphalerite remobilization. No silicate gangue minerals were in the sample.

The three petrographic sections were from samples taken by Cameron Martin in the CA Pit. The host rock

appears to be hornblendite. Minor sericite veinlets were noted, but the primary minerals appear fresh. The

sulphides occurred in veins and disseminations. The interlocking textures showed the primary sulphide was

pyrite with blebby chalcopyrite and magnetite. Blobs over 0.6 mm of magnetite had inclusions of chalcopyrite

and pyrite with less pyrrhotite blebs and prismatic rutile grains. The sense was that the opaque minerals were

deposited at the same time. The sulphide mineralisation does not extend into the sericite veinlets.

The location of the cobalt in the minerals remains unclear. It probably is dissolved in pyrite or chalcopyrite. The

samples with 0.2 to 0.94% Co do not correlate directly with Cu grades, although that sample set is small. More

selective sampling needs to be done to ascertain whether Co is preferentially associated with early

disseminations or later vein sulphides.

Alteration is localized around the later veins. The two petrographic sections (CAPiT-1 and -2) with host rocks

show discrete small sericite veinlets with minor epidote, but no calcite. The joint-related sulphide veins in the

New Pit show alteration rinds 1-3 mm wide with pinkish very fine grained minerals. Otherwise the host rocks in

both areas appear unaltered.

8 DEPOSIT TYPE

The Lynx Lake sulphide deposits do not appear to be related to major models of sulphide deposits. These have

formed in amphibolite host intrusions into granitoids.The sulphides may have formed fine-grained

disseminations in the mafic magma or were deposited into the intrusions at high temperatures during the

waning Grenville thermochron around 900 Ma. They appear to have been deposited contemporaneously

rather than as overprints. The fluids may have arisen from the nearby young M3 granitoids. Remobilisation and

associated weak sericite alteration formed coarser veinlets and veins localised along post-cooling joint

fractures. The late sulphide mineralisation extends into the host granitoids, likely as a halo, that affects late

micropegmatite veins that often carry coarse sulphides as well. The magnetite-sulphide-rutile lenses appear to

be small-scale.

The minor minerals in the magnetite-rutile lenses include pyrrhotite and chalcopyrite, which suggests a lower

oxygen environment, while the pyrite-chalcopyrite-sphalerite (and occasional molybdenite flakes) form in a

more oxygenic context.

The location of cobalt in the system may be a function of the age (primary or secondary) of the deposition. The

current data does not permit an analysis of the different sulphide loci.

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9 EXPLORATION

No exploration has been done by the Issuer. All information by the Vendor is discussed in Section 6 -

History.

10. DRILLING

As of the report date, neither the Vendor nor the Issuer has undertaken any drilling on the Lynx Lake Property.

11 SAMPLE PREPARATION, ANALYSES AND SECURITY

No samples have been taken by the Issuer as of the date of this report.

12 DATA VERIFICATION

Per Section 11, not applicable

13 MINERAL PROCESSING & METALLURGICAL TESTING

Not applicable

14 MINERAL RESOURCE ESTIMATES

Not applicable

15 MINERAL RESERVE ESTIMATES

Not applicable

16 MINING METHODS

Not applicable

17 RECOVERY METHODS

Not applicable

18 PROJECT INFRASTRUCTURE

Not applicable.

19 MARKET STUDIES AND CONTRACTS

Not applicable

20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACTS

Not applicable.

21 CAPITAL AND OPERATING COSTS

Not applicable

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22 ECONOMIC ANALYSIS

Not applicable

23 ADJACENT PROPERTIES

On NTS sheets 13/B 11 & 12, five separate small mineral licenses with a total of 30 claims (750 ha) abut the

Lynx Lake Property. These are held by Ricky Edmunds of Postville, Labrador and were recorded on 15

November 2016. The small mineral license 024067M in the centre of license 024424M is part of the Lynx lake

Property.

Figure 11 Lynx Lake Property and adjacent mineral licenses

24 OTHER RELEVANT DATA AND INFORMATION

There are no additional data or material information known to the author about the subject property as of the

date of this report.

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25 INTERPRETATION AND CONCLUSIONS

25.1 Interpretation

The Lynx Lake Property has two substantial showings of disseminated and vein sulphides with Cu and Co values

to 1.39% Cu and 0.94% Co. The work by the Vendor from 2009 to 2016 has been at the prospection level. The

results are promising and future work needs to resolve some key questions. What is known of the deposits

does not fit any broad model of Cu-Co deposits.

One issue is documenting the geological details in and around the existing pits. This requires detailed mapping

with structural measurements by a senior field geologist. Prospection by the Vendor did not find any other

outcrop, so use of an excavator should be useful.

Another is determination of the age of sulphide deposition that contains the Cu and Co. This can be done by

detailed sampling of the various sulphide types both in the amphibolite and the adjacent rocks. If the better

sulphides are in the disseminated sulphides, geophysical techniques, such as induced polarization (IP), would

be the preferred method. If the veins are more prospective, they would form conductors and electromagnetic

survey (EM) methods would be better. Past geophysical surveys by the Vendor were for conductors but done

on lines aligned east-west, which appears to be the principal direction of the veins.

25.2 Conclusions

The Cu-Co potential of the Lynx Lake showings has shown potential which can only be developed by focused

technical geological and geophysical works in order to justify a drilling program.

25.3 Risks

The Lynx Lake Property is a green-fields project with prospection-level development to date. There is a risk

that future exploration may not locate a viable Cu or Co deposit. The risks are the normal geological ones

including: the presence of repeatable grades of Cu and Co in the rock, their continuity and connections to

establish a deposit of sufficient size and grade, and the technical processing methods to produce a marketable

product.

Other risks can include (from moderate to low): establishing a positive relationship and agreements with the

First Nations owners of the lands (Labrador Innu and possibly the NunatuKavut Community), access to water

rights for production and processing; permits for surface rights for production, processing and tailings, access

to adequate power and other infrastructure requirements for development and processing.

26 RECOMMENDATIONS

The author recommends a two-phase work program with further works dependent on results. Phase 1 would

focus on developing the geological and mineralogical knowledge to design appropriate geophysical surveys to

guide Phase 2 drilling. The proposed work includes:

(1) detailed geological mapping of the showings and their extensions developed by trenching;

(2) detailed sampling of the several types of sulphide types (dissemination, veins) and petrographic studies to

determine the mineralogy

(3) channel sampling to determine the bulk grades in showings

(4) design and execute appropriate geophysical surveys to test extension of the showings as well as determine

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property-wide prospection methods.

The Phase 1 program as laid out would provide a sound knowledge platform for selecting drill holes in Phase 2.

Phase 1 ($ 72,500)

1 Geological mapping, trenching, $ 12,500

2 Detailed sampling & petrography $ 16,000

3 Channel sampling $ 14,000

4 Geophysical surveys (type TBD) $ 30,000

Total $ 72,500

Proposed Phase 2 works would focus on drilling to test targets defined in Phase 1. Three pairs of inclined

diamond drill holes on three sections on each showing would test to a depth 50 m with 75-m long holes. The

cost includes technical and analytical support.

Phase 2 ($ 236,000)

1. Drill 6 holes on CA Pit (total 450 m) $ 118,000

2. Drill 6 holes on CA Pit (total 450 m) $ 118,000

Total $ 236,000

Currency is CAD plus applicable taxes. No contingency allowance was used, although it is prudent to do so.

27 REFERENCES

Gower, C.F., 1999.Geology of the Crooks Lake map region, Grenville Province, eastern Labrador. NL Dept.

Mines & Energy, Geol Surv, current research 1999, rept 99-1, pp 41-58

Gower, C.F., 2001. Geology of the Upper St. Augustin River map area, Grenville Province, eastern Labrador. NL

Dept. Mines & Energy, Geol Surv, current research rept 2001-1, pp 23-43

Gower, C.F., 2003. Implications of re-assessed 40Ar/39Ar and K/Ar geochronological data for Grenvillian

orogenesis in the eastern Grenville Province. NL Dept. Mines & Energy, Geol Surv, current research 2003, rept

2003-1, pp 15-33

Gower, C.F., 2010. Geology of the Crooks Lake area (NTS sheets 13B/11, 12, 13, and 14), southeastern

Labrador. NL Dept. Mines & Energy, Geol Surv, Open File 013B/0027, Map 2010-17, 1 poster-map.

Gower, C.F., S.L. Kamo, K.Kwok, T.E. Krogh, 2008. Proterozoic southward accretion and Grenville orogenesis in

the interior Grenville Province in eastern Labrador: Evidence from U-Pb geochronological investigations.

Precambrian Res, v 165, iss 1-2, pp 61-95

Gower, CF, and T.E. Krogh, 2003. A U-Pb geochronological review of the Proterozoic history of the eastern

Grenville Province. CJES, v 39, no 5, pp 795-829

Heaman, L.M., C.F. Gower, S. Perrault, 2004. The timing of Proterozoic magmatism in the Pinware Terrane of

southeast Labrador, easternmost Quebec, and northwest Labrador. CJES, v 41, no 4, pp 127-150

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Hewitson, M.R., 2010. Nd-isotope mapping of the Grenville Province on southern Labrador. McMaster Univ,

Dept. of Earth Sciences, M.Sc. thesis, 107p

Wasteneys, H.A., S.L. Kamo, D. Moser, T.E. Krogh, C.F. Gower, J.V. Owen, 1997. U-Pb geochronological

constraints on the geological evolution of the Pinware Terrane and adjacent areas, Grenville Province,

southeast Labrador, Canada. Precambrian Res, v 81, iss 1-2, pp 101-128