Report on a Seismic Survey Carried out on

Mineral License 10069M St. Georges Area, Western Newfoundland

(The Quarry Property) NTS: 12B/7

1st Year Work Assessment

By

Vulcan Minerals Inc. 333 Duckworth Street

St. John’s, NF A1C 1G9

Prepared by:

Patrick J. Laracy P.Geo August 2005

TABLE OF CONTENTS

INTRODUCTION…….…….…………………………………………………………………..…..…1

LOCATION AND ACCESS……...………………………...……...……………………………….…..1

HISTORY OF LAND TENURE……………………………..………………………………………....1

GEOLOGY……………………………………………..…………………………….……………...1

GEOPHYSICAL EXPLORATION PROGRAM……………….…………………….………………..4

EXPENDITURES …………………………….………………………………………..……………..4

CONCLUSIONS AND RECOMMENDATIONS………………………………………………………….7

REFERENCES …………………………………………………………..………………………. 8

List of Figures

FIGURE 1. PROPERTY LOCATION MAP………………………………………………2 FIGURE 2. MINERAL CLAIMS / SEISMIC LINES LOCATION MAP………………...…..3 FIGURE 3. BAY ST. GEORGE BASIN, REGIONAL SETTING …………………..…….…5 FIGURE 4. BAY ST. GEORGE BASIN – GEOLOGY …………………..………………..6

LIST OF APPENDICES APPENDIX I (POCKET) SEISMIC SECTION VM-H-015-04

APPENDIX II KINETEX – SEISMIC SURVEY OVERVIEW

CD ROM (POCKET) DIGITAL SEISMIC DATA

1

Introduction License 10069M consists of 45 contiguous mineral claims 100% owned by Vulcan Minerals Inc. of St. John’s, NL. The mineral license is located in western Newfoundland and covers a portion of the Bay St. George Basin, a Carboniferous-aged basin known to host halite and potash prospects (Figure 1). Vulcan Minerals Inc. carried out a seismic program covering 57.5 kilometres from November 19, 2004 to December 9, 2004 over parts of the Bay St. George Basin of which 1.48 kilometres was acquired on license 10069M (Line VM-H-015-04). The regional seismic survey identified anomalous features that likely represent halite deposits. Consistent with the seismic data are the results of two recent drill holes in the basin by Vulcan Minerals Inc. (Captain Cook #1 and Flat Bay #2), both of which intersected thick sections of halite as well as thinner beds of potash mineralization (see Assessment Report on License 6107M, 2002). The seismic data portrays radial extension of the evaporite beds for several kilometres surrounding the drill holes both within mineral license 6107M, originally staked by Vulcan, in addition to, the expanded claims – license 8838M. Preliminary assessments by Vulcan and government sponsored research (see innova Quest et al report – Appendix II, Assessment Report on License 8838M-November 2002-Vulcan Minerals Inc.) indicates that a salt deposit in the Flat Bay area could have significant commercial potential. Location and Access License 10069M (the Quarry Property) is contained within the Bay St. George Basin on N.T.S. Map Sheet 12B/7 covering a portion of the old Domtar gypsum quarry (Figure 2). Access to the property can be gained via highway 403 (Flat Bay Road). Trails provide excellent avenues for the collection of the seismic data throughout the property. History of Land Tenure An excellent review of the history of salt exploration including previous operators in the Bay St. George Basin is set out in a report prepared for the Department of Mines & Energy entitled “Potential for Mining Salt in Western Newfoundland” by innova Quest, HyGrade Geoscience and Peter Dimmell (Appendix II, Assessment Report on License 8838M-November 2002). That report concluded that salt mining in Western Newfoundland has commercial potential and should be pursued further; particularly in respect of a deposit that could be developed at a lower cost than the Fischell’s Brook salt discovery. Geology The St. George’s area is situated in the Bay St. George Basin, a Carboniferous aged strike-slip successor basin overlying the Humber Zone of the Appalachian Orogen. The Bay St. George Basin is part of a much larger Carboniferous basin, the Maritimes Basin, which underlies the Gulf of St. Lawrence and adjacent land areas (Figure 3). Rocks of

4

the Flat Bay area of the Bay St. George Basin are developed in a 22 km wide zone between St. George’s Bay and the Long Range Mountains. Historically, rocks of the Bay St.George Basin have been divided into three groups, the Anguille, Codroy, and Barachois Groups. The Anguille Group is a sequence of non marine siliclastic rocks defining the oldest strata in the basin, overlain by a series of carbonates, evaporites and clastic lithologies of the Codroy Group, which are in turn capped by a variable interbedded sequence of sandstone, siltstone and shale making up the Barachois Group (Knight, 1983 Figure 4). Geophysical Exploration Program The geophysical exploration program on License 10069M consisted of the acquisition and processing of 1.48 kilometres of seismic along the eastern quarry road in the south pit of the old Domtar gypsum quarry. The survey was conducted between November 19, 2004 and December 9, 2004 by Kinetex Inc., a Calgary based seismic surveying company. A brief report outlining the logistics and survey parameters involved with the seismic program are included in Appendix II. The seismic data was processed by ARCIS Geophysical of Calgary, a copy of which is attached in digital form (see pocket for CD ROM). Note that recording and processing parameters are contained on the margin of the seismic section. The seismic data proved to be of poor quality with a lack of coherent reflectors indicating either poor energy penetration due to ground conditions or the near surface presence of basement rocks. Conclusions and Recommendations Preliminary results of the geophysical exploration program on seismic line VM-H-015-04 are inconclusive at this stage because of poor data quality. Additional data in the area may assist interpretation. Reprocessing of the line will also have to be considered.

8

References Knight, I., 1983. Geology of the Carboniferous Bay St. George Subbasin, Western

Newfoundland, Menoir I Mineral Development Division, Department of Mines and Energy, Government of Newfoundland and Labrador.

APPENDIX II