1 Physical Prospecting Report On The: California Nelson Property EVENT #5464467 Nelson Mining Division British Columbia BCGS Map 082F044 NTS Map 082F06W UTM 11U 478671, 5477977 Lat 49.454074 Lon -117.294288 Owners: Werner Streicek John Bakus P.O. Box 466 515 Echo Avenue #3-1572 Lorne Street East Harrison Hot Springs B.C. Kamloops, B.C. V0M-1K0 V2C-1X6 FMC: 125979 FMC: 223385 Operator: Werner Streicek P.O. Box 466 515 Echo Avenue Harrison Hot Springs B.C. V0M-1K0 FMC: 125979 August 07 to August 11, 2013 Report Prepared By: John Bakus August 05 to September 24, 2013

2 California 2013 Photographs (Additional work site photographs available upon request)

View of Nelson from Give-out creek forest road Entrance to Bottom (#3 Level)

Lower #3 Adit Exchequer Adit

Middle #2 Portal (Caved In) Exchequer Portal

3 Table of Contents: California Physical Prospecting Report Overview Event 5461774 1 California Photographs 2 Table of Contents California 2013 3 California Provincial Location Map 1:5,000,000 4

California Tenure List Crown Grant Status and Location Map 1:10,000 5 California Crown Grant Search 6-7

California Google Map Overview Map with Route Google Eye View 10 KM and 20 KM 8

California Location Access History Mineralization and Geology 9-11

California Geological Bedrock Map 1:100,000 12

California Raster Base General Work Area Map Google Eye View 20 KM 13

California Metallic Mineral Potential Minfile Map Google Eye View 20 KM 14

California Hillside Relief with BCGS Faults Map Google Eye View 20 KM 15

California 2013 Work Program 16-17

California 5464467 Event Explorations and Development Work / Expiry Date Change 18

California Minfile Report Schedule A

California 5464467 Physical Work Report Form Attached

4

California Provincial Location Map

1:5,000,000

5

California Tenure List Crown Grant Status and Location Map Yellow Border 1011322 Shaded area reverted crown grants 1:10,000

Tenure Number Type Claim Name Good Until Area (ha)

1013122 Mineral

20181121 63.00

(Good Until Date valid upon acceptance of this report)

6

California Crown Grant Search

California

PIN Report Subdiv RoW Legal Description Area (Ha) Status Confirmed LT Office

8743680 Yes DISTRICT LOT 1677, BEING

CALIFORNIA MINERAL CLAIM,

KOOTENAY DISTRICT

17.7 Active 18-Nov-

1897

Search Criteria: PIN Number: 8743680, Tenure History: Off

PIN

Tantalis

ID

File #

Document

#

Interest

Sur/Und

er

Effective

Date

Location Status

Area

(Ha)

874368

0 203517

Reversio

n

U 15-Feb-2012

Absolut

e 0

874368

0 1068

000000

0 1084/108

Crown

Grant

U 01-Jan-1899 UNKNOW

N Active 17.58

Exchequer

PIN Report Subdiv RoW Legal Description Area (Ha) Status Confirmed LT Office

9574200 Yes DISTRICT LOT 391, BEING

EXCHEQUER MINERAL

CLAIM, KOOTENAY DISTRICT

12.8 Active 31-Dec-

1896

Search Criteria: PIN Number: 9574200, Tenure History: Off

PIN

Tantalis

ID

File #

Document

#

Interest

Sur/Und

er

Effective

Date

Location Status

Area

(Ha)

957420

0 203517

Reversio

n

U 15-Feb-2012

Absolut

e 0

957420

0 29785

Reversio

n

S 27-Sep-1939

Absolut

e 0

957420

0 8279

000000

0 171/79

Crown

Grant

B 01-Jan-1897 UNKNOW

N Active 10.75

7

Hillside

PIN Report Subdiv RoW Legal Description Area (Ha) Status Confirmed LT Office

8777010 Yes DISTRICT LOT 2238, BEING

HILLSIDE MINERAL CLAIM,

KOOTENAY DISTRICT

20.9 Active 02-Dec-

1897

Search Criteria: PIN Number: 8777010, Tenure History: Off

PIN

Tantalis

ID

File #

Document

#

Interest

Sur/Und

er

Effective

Date

Location Status

Area

(Ha)

877701

0 203517

Reversio

n

U 15-Feb-2012

Absolut

e 0

877701

0 56261

000000

0 850/105

Crown

Grant

U 01-Jan-1899 UNKNOW

N Active 21.15

Union

PIN Report Subdiv RoW Legal Description Area (Ha) Status Confirmed LT Office

9639420 Yes DISTRICT LOT 8324, BEING

UNION MINERAL CLAIM,

KOOTENAY DISTRICT

9.4 Active 10-Oct-

1907

Search Criteria: PIN Number: 9639420, Tenure History: Off

PIN

Tantalis

ID

File #

Document

#

Interest

Sur/Und

er

Effective

Date

Location Status

Area

(Ha)

963942

0 203517

Reversio

n

U 15-Feb-2012

Absolut

e 0

963942

0 31652

000000

0 4528/213

Crown

Grant

U 27-Jan-1908 UNKNOW

N Active 9.38

8

California Google Map Overview with Route

Google Eye View 10 KM (Above) Google Eye View 20 KM (Below)

9 California Location Access History Mineralization and Geology California Location: The California deposit is located 4 kilometres south of Nelson within the Nelson Mining division in South-Central British Columbia. The property is located approximately 30 kilometers North of Salmo B.C. and 30 Kilometers North-East of Castlegar British. California Access:

The property was accessed from Harrison Hot Springs, British Columbia by way of Harrison Hot Springs Road South to Highway 9 East to Hope, B.C. to Highway 3 East to Castlegar to Highway 3A North East to Nelson to Highway 6 South 5 kilometers to access Rd West to property.

The access road west from Highway 6 was in good condition with regular vehicle access for 2 kilometers then the road splits and access to the property by a rougher 4 by 4 road directly to the California lower Adit site. From there, it was a short hike to the Exchequer, and the third and second levels.

California History: (Prospectus Report Delgrartia Developments 1991)

Since 1897 the property has been variously held and worked under a number of lease and bond arrangements, however most operators have been unable or un willing to undertake a systematic exploration programme of the property. The annual reports of the British Columbia Department of Mines between 1897 - 1947 describe the early operations on the property. In 1934 W1ddendon and Company left a record of underground sampling (refer to figure no. 5; Longitudinal Section of the Callfomla Mine Area) which Indicates an ore block 91 meters long grading 0.85 ounces per ton gold over approximately 1 meter width remaining on the west end of No.3 level. This ore block abuts a claim line (California/exchequer) and local prospectors suggest It wasn't mined because of property and boundary disputes. Jones (1982) calculated a tonnage potential for this zone of roughly 4O,CXX) tons above the NO.3 level. Recent work has provided access to this part of 1he Callfomla Mine and assay data suggests that sampling by W1ddendon and Co. may have been somewhat optimistic. Available data does however confirm that gold mineralization occurs along a strike length of over 100 meters on this level. In 1941 the Provincial government conducted a gold mine leasing experiment on the California which Involved shipping of 75 tons of hand-sorted ore from areas above No. 1 level. Published records Indicate that this shipment averaged 2.10 oz./ton gold. The property was subsequently purchased by Sheep Creek Gold Mines In 1944 who leased the property to various parties, and eventually relinquished title. In 1982 New Tyee Resources can1ed out a programme of surveying, mapping, and sampling on the property. Mr. H Jones recommended that the No.3 Level drift be rehabilitated to provide access for sampling and drilling.

10 In 1987, Christina Explorations optioned the property, sampled accessible parts of existing underground workings and commenced rehabilitation of the NO.3 Level drift of the Callfomla Vein. Results are Included In a report by M. Magrum dated November 20, 1987. During 1988 Christina constructed a new drift to bypass a badly caved stoped section and provide access to the remaining part of the No.3 Level. On completion of this work the Company abandoned the property and no further work was carried out until 1990. During the late 1980's Pacific sentinel Resources and others carried out extensive surface exploration and drilling of various prospects In the area of the Hillside Claim Group. Of particular Interest were soil geochemical results which Identified several Prospective areas within Elise Formation volcanics. One of the most significant of these areas Is the Toughnut Showing. Geochemical data showed co-incident copper - gold geochemical anomalies (gold values of over 40 ppb and copper values greater than 100 ppm were considered anomalous). Later drilling of this anomaly resulted In the discovery of a mineralized zone 26 meters wide averaging 0.044 oz/ton gold.

California Geology and Mineralization: MINFILE Number: 082FSW169

The California deposit is located 4 kilometres south of Nelson. The vein has been developed on 3 levels by 650 metres of drifts, producing 1,462 tonnes from 1910 to 1949. The area is underlain by schistose volcanics comprising augite basalt flows and flow breccias of the Lower Jurassic Elise Formation, Rossland Group. These have been intruded by plagioclase porphyry of the Jurassic Silver King Intrusions and granodiorite and quartz monzonite of the Middle to Late Jurassic Nelson Intrusions. The California occurrence comprises the California vein, the Deadwood vein, the Union vein, the Creek showing, the Cabin vein and the Exchequer vein. The California vein is hosted in andesite near the ganodiorite contact in a shear zone which strikes east and dips 45 to 50 degrees south. The shear zone is up to 30 metres wide and hosts two parallel quartz veins with graphitic andesite between them. The vein on the hanging wall, 0.5 to 1.0 metre wide, contains the best sulphide mineralization and the footwall vein, rarely more than 0.3 metre wide, hosts higher gold values. The veins touch or can be separated by up to 2 metres of altered rock. Mineralization consists of quartz gangue containing significant pyrite with some galena, sphalerite, and free gold. The quartz veins are strongly sheared with graphitic material on fracture and shear planes. The contacts with the country rocks are heavily slickensided. Some enrichment of metal values was observed where normal faults crosscut the vein-shear zone. Faulting, with movement of up to 1.2 metres, has been observed in the workings. A channel sample taken (CAFS-2) from level No. 2, in 1987, across parallel well mineralized quartz veins, 5 to 15 centimetres wide, and hosting sphalerite, chalcopyrite and possibly tetrahedrite in narrow bands and as patches or disseminated grains assayed 73.05 grams per tonne gold (Property File - Christina Explorations Ltd., Prospectus, May 12, 1988). An ore block, 91 metres long grading 29.14 grams per tonne gold over a 1 metre width, is believed to exist at the west end of the No. 3 level. A potential tonnage of 36,000 tonnes has been calculated for this zone (Assessment Report 11027).

11

The parallel Deadwood vein, which outcrops to the southeast of the California vein, comprises a zone of numerous quartz stringers and veinlets hosted in a shear zone. The zone is approximately 75 metres wide in pyritized and carbonate altered tuffaceous volcanics. Reports indicate significant but erratic gold values were present. The Union vein, several hundred metres north of California vein, is hosted in granodiorite. The vein dips at 15 degrees toward the volcanic contact and appears to be a tension feature. The vein, 0.3 to 0.8 metre wide, consists of white quartz hosting sparsely disseminated pyrite and sphalerite, similar to the California vein. Samples from the stope area have assayed up to 13 grams per tonne gold and 222.82 grams per tonne silver over a 0.3 metre width (Property File - Christina Explorations Ltd., Prospectus, May 12, 1988). Samples taken in 1987 assayed between 0.41 to 4.5 grams per tonne gold with minor silver values (Property File - Christina Explorations Ltd., Prospectus, May 12, 1988). The Cabin vein, Exchequer vein and Creek showing occur roughly along strike of the California vein. Sampling of the Cabin vein, 300 metres east of the California vein, assayed 8.98 to 26.43 grams per tonne gold across 1 metre (Property File - Christina Explorations Ltd., Prospectus, May 12, 1988). Sampling of the Exchequer vein, 50 metres west of workings, assayed up to 53.58 grams per tonne gold 1988). The Creek showing, 400 metres east of the California vein, assayed 2.88 grams per tonne gold and 375.02 grams per tonne silver across 1.3 metres (Assessment Report 11027).

Bibliography

EMPR AR 1897-531; 1899-843; 1910-104; 1911-158,284; 1913-130,419; 1914-326,510; 1915-134; 1916-203,517; 1917-172,194; 1918-173, 197; 1919-133,157; 1920-132,148; 1921-143,173; 1922-209; 1928-319; 1930-230,267; 1933-199,218; 1934-A26,E2; 1935-A27; 1936-E44; 1937-A38,E45; 1938-A35,E36; 1939-38,80; 1940-25,65; 1941- 26,45,64; 1942-27,61; 1943-64; 1944-60; 1947-159 EMPR ASS RPT 5074, *11027 EMPR BC METAL MM00972 EMPR BULL 1, p. 96; 41; 109 EMPR FIELDWORK 1980, pp. 149-158; 1981, pp. 28-32, pp. 176-186; 1987, pp. 19-30; 1988, pp. 33-43; 1989, pp. 247-249; 1990, pp. 291-300 EMPR GEM 1974-72 EMPR MAP 7685G; RGS 1977; 8480G EMPR OF 1988-1; *1989-11; 1991-16 EMPR PF (Starr, C.C. (1928): Report on the Property of the California Mines; Map of the California Mine, No. 2 and No. 3 Levels, 1918; *Maconachie, R.J.: Gold Mine Leasing Experiment, California Operation, 1941; Christina Explorations Ltd., Prospectus, May 12, 1988) GSC MAP 52-13A; 1090A; 1091A; 1571A GSC MEM 191; 308, p. 172 GSC OF 1195 GSC P 49-22; 52-13 GSC SUM RPT *1911, pp. 146, 150 GCNL #133, 1988 Andrew, K.P.E. and Hoy, T. (1990): Structural Models for Precious Metal Deposits in Jurassic Arc Volcanic rocks of the Rossland Group, southeastern B.C.; abstract with program, G.A.C. - M.A.C. Annual Meeting, Vancouver, B.C., p. A3 Hoy, T. and Andrew, K.P.E. (1988): Geology, geochemistry and mineral deposits of the Lower Jurassic Rossland Group, southeastern British Columbia; abstract in Twelfth District 6 Meeting, Canadian Institute of Mining and Metallurgy, Fernie, B.C., pp. 11-12 Placer Dome File.

12

California Geological Bedrock Map 1:200,000

California Geological Bedrock Map 1:100,000

Nelson

PeESTgr

uMPMCPm

Peqm

MJNgd

CmDLI

MJgr

uPrCmH

uPrWT

CPKa

Kgd

TrSlc

MJgr

TrJY

lJRE

Kgd

TrJY

TrJY

EJE

TrJYlJRE

TrJY

uPrWT

uPrWT

MJgruMPMECsy

lJRE

EJSK

uPrWM

uPrCmH

PeESTgr

TrJY

PeESTgr

PeESTgr

MJBo

uPrWTS

uPrWTMI

EJSK

lJRA

MJgr

lJRH

uPrWM

CPog

uPrWTS

EJSK

Pzs

EJSK

EJSK

CmL

PeESTgr

EJSKMJgr

MJgrMJBo lJRACPog

Nelson

MJNgd

lJRETrJY

EJE

TrJYlJRE

TrJY

MJgrECsy

lJRE

TrJYEJSK

lJRAMJgr

lJRH

EJSK

13

California Raster Base ARIS General Work Area Map Google Eye View 20 KM

General work area shown

14

California Metallic Mineral Potential Minfile Map Google Eye View 20 KM

15

California Hillside Relief with BCGS Faults Map Google Eye View 20 KM

16

California 2013 Work Program

The purpose of the 2013 California exploration program was to validate and define the mineralization occurrences within the property. Additional work was done to define accessibility of and to the property. Prior to the field work, an investigation of information in the public domain relating to previous work and mineral occurrences was carried out and a prospecting plan was developed. Assessment and Minfile Review: A preliminary interpretation of the available information was completed by reviewing the BC Department of Energy Mines and Petroleum Resources web site of known showings (Minfile) and files of assessment work, additional research through the review of documentation available through B.C. property files, and other resources were used to access and plan the 2013 work program. There are many known occurrences in the area and it was determined that the California and Exchequer occurrences would be the first sites visited.

Field Investigation: The 2013 California field investigation constitutes a preliminary survey of the Nelson

California property and area and involved sampling and assessment of workings and deposits referenced

in minfile accounts relating to the property in addition to evaluating the accessibility to the property by

roads and trails and by obtaining samples of hard rock (In situ) float boulder, and heavy minerals for

future geological survey work.

Werner Streicek a Prospector/ equipment operator, and logger with over 40 years prospecting

experience was assisted by his associate Rayanna Anderson who has worked with Werner on many

other related mining projects, an engineer from Nelson, and his Son in Law and grandchildren from

Alberta.

The physical work program took place from August 06 to August 13 2013. Additional technical, mapping

and report preparation was performed by John Bakus from August 05 to September 24 2013. August 06

and August 13 was spent mobilizing and travelling to and from the property from Harrison Hot Springs,

British Columbia by way of Highway 3 East to Nelson.

A vehicle was used to travel from Harrison Hot Springs B.C. to Nelson B.C. and then to and from the

California property as far as possible, then hiking on foot with equipment carried where needed. Roads

and trails were had drawn with general notes. Other development work was noted with rock samples

taken as appropriate. Notes were taken on terrain, watercourses, overburden etc with future

prospecting, geological mapping, geochemical and geophysical work in mind. Marking of sample sites

occurred with multiple photos taken of samples and areas of interest available upon request. General

GPS coordinates were taken, and all samples were recorded and logged. Mapping of the property was

done by way of Google, IMAP and Exploration assistant, and all data was compiled and sorted by use of

Excel. This data formed the template for this report.

17

Assay results from laboratory tests may be provided upon submission of a future technical report, and

geologist descriptions of Hard rock and Float boulders are pending. Sample information included in situ

hard rock (Adit), float boulders (Dump) and additional points of interest.

Equipment List:

Vehicle, chain saw, field tools , laptop, compass, clinometer, VHF radios, Spot GPS emergency locator,

bear spray, air horn, bags, tags, assorted markers, Etc.

Prospecting trip to California Mine 4.5 KM south of Nelson BC.

(General Notes from Werner Streicek)

Arrived in Nelson August 07th ,2013 Assisted by Rayanna Anderson (Harrison Hot Springs)

Stayed at the Riverside Inn, for 3 days.

Travelled to” Giveout creek forestry road” West, which is the main access road to subject property and

reviewed entry and exit into property.

On August 08th Assisted by retired engineer (Nelson) and Rayanna Anderson (Harrison Hot Springs)

visited the property with a retired engineer, who is familiar with the area and also with the well known

California vein.

Located level 3, 2 and 1 Portals. Collected samples from all Levels near Portal entrance.

August 09th , 2013 Assisted by Son and Grandchildren (Alberta)

visited property with three helpers. Revisited Level three, two, and one for more samples.

Then hiked on a fairly steep incline , North Westerly to the Exchequer Portal.

We then entered the drift for 220 feet and collected samples from the face of the old workings.

A three foot quartz vein crushed and micro fractured and well mineralized with sulphites

of iron, silver, lead and zinc.

August 10th Assisted by Rayanna Anderson (Harrison Hot Springs)

explored the Gold Creek Forestry Road to find access from the south side to the Exchequer Portal, and a

parallel vein structure to the California vein.

18

Event 5464467 California 2013 Event Confirmation

Event Number: 5464467

Work Type: Physical Work

Physical Items: Labour, Machinery and equipment, Preparatory Surveys, Supply costs,

Transportation / travel expenses

Work Start Date: 2013/AUG/07

Work Stop Date: 2013/AUG/11

Total Value of Work: $ 3588.00

Mine Permit No:

Summary of the work value:

Tenure

Number

Claim

Name/Property

Issue

Date

Good

To

Date

New

Good

To

Date

# of

Days

For-

ward

Area

in

Ha

Applied

Work

Value

Sub-

mission

Fee

1013122 CALIFORNIA

NELSON B.C. 2012/sep/23 2013/aug/25 2018/oct/21 1883 63.00 $ 3586.74 $ 0.00

Financial Summary:

Total applied work value: $ 3586.74

PAC name:

Debited PAC amount: $ 0.0

Credited PAC amount: $ 0.0

Total Submission Fees: $ 0.0

Total Paid: $ 0.0

SCHEDULE A

California Minfile Report

Production Detail

Inventory Detail