Report of Gridding and Magnetic Surveys

On the

Munro Property

Munro and Beatty Townships, Ontario

Larder Lake Mining Division

Claims: 3016569 4241466

For

Big Red Diamond Corporation

October 31, 2010 Matthew Johnston

Timmins, Ontario

1226 Gatineau Blvd.

Timmins, Ont. P4R 1E3

Table of Contents

Page No.

1.0 Introduction 2

2.0 Location and Access 2

3.0 Summary of 2010 Geophysical and Line Cutting Program 2

4.0 Discussion of Results 5

5.0 Conclusions and Recommendations 6

Statement of Qualifications

Appendices

Appendix A Geophysical Instruments and Survey Methods

List of Maps

Maps Scale

Total Field Magnetic Survey - Contours and Posted Data 1:5000

-2-

1.0 Introduction

The Munro property of Big Red Diamond Corporation consists of several

unpatented mining claims, where recent work was performed on mining claims numbered

3016569 and 4241466 located in Munro and Beatty Townships, Larder Lake Mining

Division. During October 2010, a program of gridding and geophysical surveys was

conducted over a portion of this claim group. The geophysical program consisted of total

field magnetic surveying. Hussey Geophysics Inc, from Timmins, Ontario carried out

the magnetometer survey; while Archer Explorer of Edmonton, Alberta completed the

line cutting and chaining. The line cutting and geophysical surveys were completed

between October 6th

and October 28th

, 2010. These surveys were carried out in order to

map any discrete anomalies that may be associated with structural deformation, or

economic concentrations of massive or disseminated sulphide mineralization associated

with gold mineralization.

2.0 Location and Access

The Munro Property is located approximately 16 kilometres east of the Town of

Matheson, Ontario. The claim group straddles the Beatty / Munro Township line in the

Larder Lake mining division. A notable landmark is the old Johns-Mansville waste

tailings pile, behind which the property is located. Access to the property is via highway

101 east from Matheson along highway 101 for approximately 15 kms., then north along

logging roads for approximately 2 km. A trail off of the main logging road served to

access the grid (see figures 1 and 2).

3.0 Summary of 2009 Geophysical and Line Cutting Program

The line-cutting on the Munro Property grid totalled 16.66 kilometres, which

consisted of a 0.75 km. long baseline cut at an azimuth of 90 degrees. Grid lines were cut

and picketed as shown on the grid map and ranged in length from 1100 metres on the east

end of the grid to 1600 metres in the central areas. The grid lines were chained every 25

-5-

metres with pickets chained at 25-meter intervals along all lines. The lines were spaced

and cut at 50 meter intervals.

The geophysical program consisted of total field magnetic surveying. The total

magnetic field survey, using a Gem GSM-19 magnetometer, totaled 16.66 kilometers

with readings collected every 12.5 meters along all lines.

The geophysical data has been presented on plan maps at a scale of 1:5000,

showing the contours and postings of the magnetic data (see maps in pocket).

A description of the instrument and survey method can be found in appendix A.

4.0 Discussion of Results

The magnetic survey on the Munro grid indicates a relatively quiet magnetic

background with magnetic values ranging between 55955 and 56766 nT. The background

magnetic field strength is 56184 nT. The overall magnetic pattern in the grid area

suggest a northwest-southeast strike for the underlying lithology; and is disrupted by

several linear to ellipsoidal shaped anomalous magnetic highs, located between 800S and

600N. These anomalies are clearly evident on the contour map. These four anomalies are

easily identified on the contour map and have been labeled as magnetic anomalies D, E,

F, and G. The anomalies display magnetic amplitudes of up to approximately 600 nT

above background. These magnetic anomalies may reflect underlying mafic lithology

which often gives rise to this type of magnetic anomaly. Anomalies D, E, and F may also

reflect diabase dikes which are prevalent in this area. Magnetic anomaly G displays a

magnetic signature similar to what might be expected from a kimberlite pipe.

In addition to magnetic anomalies D, E, F, and G; several fault zones have been

interpreted within the Munro grid. These anomalies may represent major lithological

contacts or structural anomalies which may be significant in this area. These anomaly

locations are shown on the contour map.

No other significant magnetic anomalies were mapped over the Munro grid.

-6-

5.0 Conclusions and Recommendations

The magnetic survey over the Munro grid was successful in mapping magnetic

anomalies that may be prospective for further mineral exploration. It may be possible to

test these anomalies with a program of trenching or prospecting in order to determine

their source lithology.

It is possible that a program of induced polarization surveying would aid in better

defining any mineralized zones, which may have disseminated accumulations of sulphide

or graphitic minerals. These zones are often prospective for gold deposits. A limited

program of either dipole-dipole or pole-dipole IP surveying with an 'a' spacing of 25

meters and reading levels of n=1 to 6 is recommended in order to further evaluate the

Munro property if sufficient other geological evidence exists to support continued

exploration of the Munro claim group.

Any existing geological, diamond drilling or geochemical information that may

exist in the mining recorder assessment files should be investigated and compiled prior to

further exploration of the Munro property in order to accurately assess the area of the

current geophysical survey and to determine the most effective follow-up exploration

method for these anomalies.

Respectively Submitted,

Matthew Johnston

Statement of Qualifications

This is to certify that: MATTHEW JOHNSTON I am a resident of Timmins; province of Ontario since June 1, 1995. I am self-employed as a Consulting Geophysicist, based in Timmins, Ontario. I have received a B.Sc. in geophysics from the University of Saskatchewan; Saskatoon, Saskatchewan in 1986. I have been employed as a professional geophysicist in mining exploration, environmental and other consulting geophysical techniques since 1986.

Signed in Timmins, Ontario, this October 31, 2010

Appendix A

Survey Theory - Total Field Magnetics

Magnetic Survey

Theory:

The magnetic method is based on measuring alteration in the shape and magnitude of the

earth's naturally occurring magnetic field caused by changes in the magnetization of the

rocks in the earth. These changes in magnetization are due mainly to the presence of the

magnetic minerals, of which the most common is magnetite, and to a lesser extent

illuminate, pyrrhotite, and some less common minerals. Magnetic anomalies in the earth's

filed are caused by changes in two types of magnetization: (1) Induced, caused by the

magnetic field being altered and enhanced by increases in the magnetic susceptibility of the

rocks, which is a function of the concentration of the magnetic minerals. (2) Remanent

magnetism is independent of the earth's magnetic field, and is the permanent magnetization

of the magnetic particles (magnetite, etc.) in the rocks. This is created when these

particles orient themselves parallel to the ambient field when cooling. This magnetization

may not be in the same direction as the present earth's field, due to changes in the

orientation of the rock or the field. The unit of measurement (variations in intensity) is

commonly known as the Gamma which is equivalent to the nanotesla (nT).

Method:

The magnetometer, a GEM Systems GSM-19 with an Overhauser sensor measures the

Total Magnetic Field (TFM) perpendicular to the earth's field (horizontal position in the

polar region). The unit has no moving parts, produces an absolute and relatively high

resolution measurement of the field and displays the measurement on a digital lighted

display and is recorded (to memory). Initially, the tuning of the instrument should agree

with the nominal value of the magnetic field for each particular area. The Overhauser

procession magnetometer collected the data with a 0.2 nanoTesla accuracy. The

operator read each and every line at a 12.5 m intervals with the sensor attached to the top

of four (56cm), aluminum tubing sections. The readings were corrected for changes in the

earth's magnetic field (diurnal drift) with a similar GSM-19 magnetometer, acting as a

stationary base station which automatically read and stored the readings at every 15

seconds. The data from both units was then downloaded to PC and base corrected values

were computed.

50 0 50 100 150 200 250

metres

NAD83 / UTM zone 17N

Scale 1:5000

BIG RED DIAMOND CORPORATION

MUNRO PROJECTTOTAL FIELD MAGNETIC SURVEY - CONTOURS

OCOTBER 6- 28 - 2010

MUNRO & BEATTY TOWNSHIPS - LARDER LAKE MINING DIVISIONCLAIM NOS. 3016569 4241466

CONTOUR INTERVAL = 20, 100 nTINSTRUMENT: GEMS SYSTEMS GSM-19 MAGNETOMETER

SURVEYED BY: HUSSEY GEOPHYSICS INC.

56055

56080

56090

56105

56115

56120

56130

56135

56140

56145

56150

56155

56160

56165

56170

56175

56180

56185

56190

56195

56200

56205

56215

56225

56235

56240

56250

56260

56265

56280

56305

56380

Total Field MagneticsnT.

Line Kilometeres Surveyed: 16.66

Interpreted Linear Magnetic Anomaly / Anomaly Axis

Interpreted Magnetic Lineament/Fault

5381200N

5381400N

5381600N

5381800N

5382000N

5382200N

5382400N

5382600N

5382800N

5381200N

5381400N

5381600N

5381800N

5382000N

5382200N

5382400N

5382600N

5382800N

552800E 553000E 553200E 553400E 553600E

552800E 553000E 553200E 553400E 553600E

L-1050 E

L-1050 E

L-1000 E

L-1000 E

L-950 E

L-950 E

L-900 E

L-900 E

L-850 E

L-850 E

L-800 E

L-800 E

L-750 E

L-750 E

L-700 E

L-700 E

L-650 E

L-650 E

L-600 E

L-600 E

L-550 E

L-550 E

L-500 E

L-500 E

B0 N

MUNROBEATTY

56040

56060

56060

56080

561 2 0

02165

02165

5 6 1 4 0

561 4 0

5 6 140

56140

04165

5 6140

0 6 1 6 5

5 6 1 6 0

56160

56160

5 6180

0 8 1 6 5

0 8 1 6 5

56220

5 6240

56240

0 4 2 6 5

56240

56260

56260

56280

56340

56 4 4 0

56000

5 6 1 0 0

00165

56100

0 0 1 65

00165

00265

56200

5 6 20 0

56200

56200

56300

5640 0

1190353

3016569

4224280

4241466

D

E

F

G

50 0 50 100 150 200 250

metres

NAD83 / UTM zone 17N

Scale 1:5000

BIG RED DIAMOND CORPORATION

MUNRO PROJECT

TOTAL FIELD MAGNETIC SURVEY - POSTED DATA

OCOTBER 6- 28 - 2010

MUNRO & BEATTY TOWNSHIPS - LARDER LAKE MINING DIVISIONCLAIM NOS. 3016569 4241466

MAGNETIC REFERENCE FIELD: 56000 nT.INSTRUMENT: GEMS SYSTEMS GSM-19 MAGNETOMETER

SURVEYED BY: HUSSEY GEOPHYSICS INC.

Line Kilometeres Surveyed: 16.66

5381200N

5381400N

5381600N

5381800N

5382000N

5382200N

5382400N

5382600N

5382800N

5381200N

5381400N

5381600N

5381800N

5382000N

5382200N

5382400N

5382600N

5382800N

552800E 553000E 553200E 553400E 553600E

552800E 553000E 553200E 553400E 553600E

L-1050 E

L-1050 E

L-1000 E

L-1000 E

L-950 E

L-950 E

L-900 E

L-900 E

L-850 E

L-850 E

L-800 E

L-800 E

L-750 E

L-750 E

L-700 E

L-700 E

L-650 E

L-650 E

L-600 E

L-600 E

L-550 E

L-550 E

L-500 E

L-500 E

B0 N

MUNROBEATTY

1190353

3016569

4224280

4241466

561085608656080561015615056129561005606656075561015650456107560945608256064560885611956107560975609956119561405614956127561855610756126561275612156122561405612956139561145613856148561495614056141561445614356158561105616556152561655617256173561815617656192561805618256220562215621356228562495626756283563285635556447565765610356317562055614956160562065622056227562325623156225562265622256223562175622456201562135622256210562125622056238562365623956246562505625356263562715627856289562785626656263 56314

56306

56289562815626156265562625625856247562505624756241562445621256202561985619556204561745619456204562045620856209561925621456219562185620956201561935620156197561905618856213562315630356361564455635756250562295621756209562135617856195561705618256194561745617156166561615615956145561415615356144561455614456146561545615156179561495612656122561325614556123561365618656118561155612156115560955612556137561145609056120560965608556080560695611256083561215610556113560865610956122561325610656082

56037

56101

561035612256177563285634756164560655606356086561105611256131561525614556131561275613656126561235612956118561115608456116561485613156123561415613856140561355613156139561565613556148561445614156144561625617256158561635616556179561805616556198561965620756216562185622656257562925637356398563365631456276562385621556204561955618056177561765618256214562035619856202561995619356192562125621156218562165622256215562295624056251562525625356260562645627156266562675626756263

56274

56288

56288

56287

5625656266

56268

56264

56262562615625956256562515624856249562585626656263562595623456220

5621456210562105620256192561925618056177561795617956178561825618556188561895619156189561875619656204562235626256390566545675056602564745638856310562545623056193561885618556164561635618256190561875617556156561575615056181561635615856146561525614956152561505615356179561115612456154561365614756091561455608856111561255613456143561645615656134561085611656113561025611556110561255614656174561735617756163561195610956091560895611456111561035608156072560625605956053560555606656079561115616156218562545625656226561935615856140561135609056067560455602156005

55973

55955

5610256112561145612356131561495617056202562135619256160561345613056110560855607756072560805608356094560955609256102561075611156123561275615256147561425614456151561605616756163561495612156119560975611156134561365616456153561285614056137561485655156102561915612956128561395612856139561435613956132561615615656159560665615856166561585616856166561575616756182561665617256169561885620856207562275624256286563695646056496565235652256407562825621056183561785617756181561855619056190561945618956186561845617856180561755617456175562105623156222562245622556230562415624556249562445624756246562455625856265562585626256265

562655625456272562835628056281

5627656260562665626456259

562555625156259562485624656247562575625156231562335623856221562355620756185561965619156197562045619256184561905620156189561855618756192561935619156203562035617856161561645617556182561675613956153562235600156114561855616556196561685618656174561965619056202561815618656177561705616056152561695616756169561415614256175561515618456166561375613756138561285611356112561265616756164561665615556172561635615956122561155611856134561295613756149561385614256160561665616056158561355613056124560795612656120561235611956116561125609856090560885608356089560885608756086561105612556144561555617156200562505623556193

56123

5605056113

561265612156108560885606256053560335604556059560665608856129561465617256214562185623356250562275619956172561555615756162561765617056168561535614756134561165613356143561605613856123561765618756206562005619856170561565615356140561845614556117561325613656155561355613156146561535616756139561505615656169561385615756168561545616256179561915624256156561865618056146561995616256172560655613256184561685616556174561885619056180561695615556159561825618556197561685620156185561895618156181561805618256171561835617456172561925619456203562305623456233562405623556236

562445626056251562435623456221562085620456208562105621256195561905619256188561855618956196561945618756185561715616756159561775618056194562015618156168561765617356176561815618056174561245622656198561655617056170561945610556148561295616056159561435615256150561635613756145561355613356140561245613656129561355637356127561525619756192561835614356145561725618556195561935616256144561385612856122561185610356135561445615856150561505613456134561315615656212563255645956560565585647456348562725620456174561655611556068560715607056050560435601956030

56066

56097

5612956166

5627256383565625670456767566205636956231561445611956111561115611456129561315615456145561425614356143561385613656117561385613256139561455619956314561685617856238562225620256158561465613856124561355614056137561255614356139561335614356142561795616356148561585616156143561615616256147561505618356099561515615256196561845614556160561625614356162561615614756184561865618456182561695618356179561925619556204562085620956205562025619956195561885618256194562145620556241

56242

56252

56255

562525624556234

56251

56257

56270

56260

56266

56270

56271

56272

562565624656227561945620756196561925618456195561975618556172561765616656180561705617756146561835617956182561655618456181561615616756181561815617556157561585615056227561625612956175561855615056136561595612856125561685616456162561625614956146561465615956134561405614356156561355615956202561805624356248562145625356184561695620156194561585613756134561235613356147561765617156183561645614656122561025608356058560545606556093

56087

5607956122561365614856141

5616156183561955618956178

56262562415617856179561935629156324563155638056349561285615356157561485614756119561285616656201561775617156173561695618556167561635616156178561865614156138561455615356170561825618256168561645616356175561725617156177561655618856177561885619056168561945619456196561955621756201562065623756228562345625156270562895629056285562825627856279

56278

56264

56277

56301

56296

56268

56259562585624956240

56235

5622656238562425625056259563045633756267562145621156214562815643956647566675651756434564295638956321563125628556260562325622056206562155621156187561855618556179561845617756164561635617656178561815619956206562045623456179561555614356131561395616756185561955617856152561595616756172561465621756291562815661256252561435615656135561915623456191561625619156240563195636956293562535618656159561515613856136561305611656101561085610456092

56093

56114

56263

56179

56211

56192

56172

56245

56322

56277

56178

56173

56162

56165

56140

56160

56171

56156

56166

56179

56178

56174

56135

56126

56162

56160

56162

56161

56144

56141

56154

56141

56140

56144

56142

56156

56164

56141

56174

56150

56114

56146

56150

56150

56148

56156

56148

56144

56132

56113

56136

56140

56159

56160

56145

56160

56148

56145

56134