Extensive diamond drill program in progress on the Cline Lake gold mine property near Wawa, Ontario at depths never before drilled there (below 2,000 feet vertical). Zone at 1,400 feet 0.186 opt gold over 25.9 feet including 0.773 opt over 4.3 feet; second zone at 1,460 feet 0.250 opt gold over 6.6 feet; numerous intersections include 0.105 opt gold over 52.2 feet; 0.530 opt over 8.5 feet at a of 700 feet; 2.173 opt gold over 2.3 feet at 1,700 feet. These wide spaced deep intercept’s showing higher grades and core lengths are very encouraging as to increasing commercial potential in depth and strike length. Four mine shafts on the property, deepest to 1165 feet with eight development headings.

The Company is carrying out an extensive diamond drill program on its Cline Lake gold mine property located in the Wawa gold camp in Ontario, Canada. There are four mine shafts on the Cline Lake property, the deepest going to 1165 feet. Phase I of the drill program has been completed; Phase II is in progress.

Assay results from all sixteen holes of Phase I of the drill program have now all been received from Swastika Laboratories Ltd. of Swastika, Ontario. Results for the initial holes up to and including CL 07-9 were reported in previous news releases. A summary of the most important gold intersections encountered in the complete 16 hole Phase I program, including the additional results of the last six holes CL07-10 to CL07-15, is included here.

As a result of a recent technical review by Mr. Hendrick of the full Phase I project assay results, he notes that in hole CL 07-8 on section 2400E, infill sampling has extended a zone at 1,400 feet vertical depth that averages 0.186 opt gold over 25.9 feet (core length) including 0.773 opt over 4.3 feet. At 1,460 feet vertical depth, a second zone assayed 0.250 opt gold over 6.6 feet (core length). Hole CL 07-2 on section 3500E, returned numerous intersections highlighted by 0.105 opt gold over 52.2 feet (core length) including 0.530 opt over 8.5 feet at a vertical depth of 700 feet. A value of 2.173 opt gold over 2.3 feet was returned at a vertical depth of 1,700 feet. These wide spaced deep intercept’s showing higher grades and core lengths are very encouraging as to increasing commercial potential in depth and strike length.

Mr. Hendrick reports that approximately 30,000 feet of BQ sized core has been logged and sampled in the Phase I program. North to south drill fences have been completed from west to east across the property on six sections located at 500, 1500, 2400, 3500, 4600, and 5500 E. The drill program was designed to define the geological, structural and mineralizing environment beneath the old historical shallow mine workings at depths never before drilled on the property (below 2,000 feet vertical).

Four shafts were sunk on the Cline Lake gold property in the early 1930’s and according to information published in the Canadian Mines Handbook the Cline Mine produced 332,670 tons at a recovered grade of 0.215 opt gold, with production coming from mine workings between surface and 500 feet vertical depth. The property is underlain by east-west trending, steeply dipping, mafic volcanics that are interlayered almost conformably with sills or dykes of felsite “quartz-eye” porphyry hosting sulphide and gold mineralized quartz veining. A major regional structural event, the Edwards/Cline Shear, dips 60-70 degrees north and runs west to east across the south of the property, and appears to be one controlling factor that localizes quartzsulphide-gold mineralization within the porphyries and volcanics. A second major structure, a shear/alteration zone, associated with the porphyry appears to dip steeply south and runs east-west across the northern portion of the property. Quartz-sulphide – gold mineralization is localized within the shear structure which appears to have been extended to approximately 3,200 feet on strike during the recent drill program. Visible “free” gold is seen frequently in the mineralized zones that have been intersected in this 16 hole program to vertical depths of 1700 feet.

In view of the results of the Phase I program, Mr. Hendrick, has recommended that the company now carry out additional deep drilling to test the area under holes CL 07-8 and CL 07-2 on sections 2400E and 3500E respectively. This additional drilling would amount to 6,400 feet at an all-in cost of approximately $300,000.00. The Company has commenced this recommended new drilling program.

Mr. Dale Hendrick P.Eng, a Qualified Person for the purpose of Canadian National Instrument 43-101, has reviewed the full Phase I project assay results. He notes that in hole CL 07-8 on section 2400E, infill sampling has extended a zone at 1,400 feet vertical depth that averages 0.186 opt gold over 25.9 feet (core length) including 0.773 opt over 4.3 feet. At 1,460 feet vertical depth, a second zone assayed 0.250 opt gold over 6.6 feet (core length). Hole CL 07-2 on section 3500E, returned numerous intersections highlighted by 0.105 opt gold over 52.2 feet (core length) including 0.530 opt over 8.5 feet at a vertical depth of 700 feet. A value of 2.173 opt gold over 2.3 feet was returned at a vertical depth of 1,700 feet. These wide spaced deep intercept’s showing higher grades and core lengths are very encouraging as to increasing commercial potential in depth and strike length. Mr. Hendrick reports that approximately 30,000 feet of BQ sized core has been logged and sampled in the Phase I program. North to south drill fences have been completed from west to east across the property on six sections located at 500, 1500, 2400, 3500, 4600, and 5500 E. The drill program was designed to define the geological, structural and mineralizing environment beneath the old historical shallow mine workings at depths never before drilled on the property (below 2,000 feet vertical). Four shafts were sunk on the Cline Lake gold property in the early 1930’s and according to information published in the Canadian Mines Handbook the Cline Mine produced 332,670 tons at a recovered grade of 0.215 opt gold, with production coming from mine workings between surface and 500 feet vertical depth.

The Cline Lake gold property is underlain by east-west trending, steeply dipping, mafic volcanics that are interlayered almost conformably with sills or dykes of felsite “quartz-eye” porphyry hosting sulphide and gold mineralized quartz veining. A major regional structural event, the Edwards/Cline Shear, dips 60-70 degrees north and runs west to east across the south of the property, and appears to be one controlling factor that localizes quartz- sulphide-gold mineralization within the porphyries and volcanics. A second major structure, a shear/alteration zone, associated with the porphyry appears to dip steeply south and runs east-west across the northern portion of the property. Quartz-sulphide – gold mineralization islocalized within the shear structure which appears to have been extended to approximately 3,200 feet on strike during the recent drill program. Visible “free” gold is seen frequently in the mineralized zones that have been intersected in this 16 hole program to vertical depths of 1700 feet.

The table which shows a summary of all of the significant holes of the now completed Phase I program, follows.