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SOLOMON MINING LIMITED

PROSPECTING LICENCE

APPLICATION

Tuesday, June 03, 2014

Year 2014

APPLICATION FOR PROSPECTING

LICENCE OVER MARAU SOUND

NICKELIFEROUS LATERITE, EAST

GUADALCANAL, GUADALCANAL

ISLAND, GUADALCANAL

PROVINCE, SOLOMON ISLANDS

MARAU SOUND PROSPECTING

LICENCE APPLICATION

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APPLICATION FOR MINERAL RIGHT

(Prospecting Licence)

(S.20, Mines and Minerals Act 1990)

Prospecting License Application for Marau Nickeliferous Laterites

Guadalcanal Island, Solomon Islands

Three Year (2014-2017)

Exploration Work Programme

Solomon Mining Limited (March 2014)

(FID #:002173)

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Table of Contents

Page

1. Mineral Right Form(Form1).........................................................................4-6

2. Foreign Investment Board Approval........................................................7-10

3. Applicant........................................................................................................11

4. Experienced Management......................................................................11-14

5. Access Agreements.....................................................................................15

6. Environmental Management........................................................................16

7. Geological Potential of the Prospect Area............................................17-27

8. Proposed Programme by Solomon Mining................................................28

9. Proposed Budget (Minimum).....................................................................29

10. Description of The Prospect Tenement Area........................................30-31

11. Solomon Mining Business Plan.............................................................32-34

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1. The Mineral Right Form

SOLOMON ISLANDS GOVERNMENT

Application for a Mineral Right (Regulation 3, Mining Regulations 1996)

i.e. RECONNAISSANCE PERMIT

PROSPECTING LICENSE

MINING LEASE

SPECIAL SITE RIGHT

To: THE DIRECTOR OF MINES BUILDING MATERIALS PERMIT

HONIARA, SOLOMON ISLANDS ROAD ACCESS LICENSE

(Delete as necessary)

1. Name/s of applicant Residence Signature/s Share/s Authorised or Registered and Seal (If a Issued Capital

Office company) Solomon Mining Ltd. P.O Box 2398 1000

Honiara

2. Name of accredited agent, if any Mrs. Vivianne Hulshoff

3. Address in Solomon Islands at which notices may be served P.O Box 2398

Honiara (MB:7689300 )

FORM 1

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4. Approximate area 116 square kilometre (sqkm2)

5. Mineral/s to be prospected/mined or number of prospecting

License/ Mining Lease in respect of which a Special Site Right or

Road Access License is required (delete if necessary) All Minerals

6. Province Guadalcanal Province

7. Island Guadalcanal Island

8. Security of Compliance: Bankers guarantee None

Cash Cheque

9. Purpose for which Special Site Right is required. Give full detail. (Applicable only

in the case of application for a Special Site Right)

Not applicable

10. Length of Term desired Three (3) Years

Fees paid herewith

Filling fee $ 2,000

Preparation fee $ 250

Compliance Deposit $

Reconnaissance Permit)

Prospecting Licence) fee for years $

First year’s rent for: M.L)

B.M.P) $

S.S.R)

R.A.L)

$ 2,250

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I attached, signed by me-

a) In the case of Reconnaissance Permit/ Prospecting Licence a plan showing the approximate position of all roads, path, fences, dwellings, crops or other improvements within the boundaries, or within one hundred metres of the area applied for.

b) In the case of a Mining Lease/ Building Materials Permits/ Special Site Right / Roads Access Licence, a plan showing the area of surface with

which it is desired to occupy and use for the purpose of mining.

Dated at this day of 20

Signature of Applicant or

Agent

Received at hr. on day of 20

G.T.R No:

Signature of Receiving Officer

(TO BE SUBMITTED IN DUPLICATE)

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2. Foreign Investment Board Approval

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3. Applicant

Solomon Mining Limited is a 100% locally registered owned company based in

Solomon Islands and its original or Mother Company is based in Hong Kong.

Solomon Mining will provide the necessary funds for a three year exploration

programme including surface exploration. To assist with the exploration programme,

Solomon Mining will put in place a logistic base in Honiara, and will contract the

services necessary to determine available prospects for large scale nickel mining

developments.

The activities which the company wishes to conduct are in the area of mining and

quarrying. The company wishes to conduct explorations and mining of gold, silver,

copper, nickel, cobalt and other minerals if available in this prospective area and

other potential prospects of all provinces in the Solomon Islands.

4. Experienced Management

The two company directors outline below have a proven record and extensive

experience in the fields of business assessment and development, law, accounting,

management, resource finance, and associated skills. This means management of

Solomon Mining are experienced in mining, operating businesses and dealing with

people in developing countries and accordingly have the rare ability to engage locals

in an enduring and lasting manner.

From time to time qualified and experienced trainers will be brought in to train up

local personnel, and in all possible positions local personnel will be used.

1. Lee Chi Ming (Martin) – a brief profile

Mobile (Hong Kong): (+852) 90999025 Mobile (Solomon Islands): (+617) 7654127

Email: martin@worldlink-hk.com Professional Experience

1999 - Present Worldlink International Limited Chairman

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Planned and directed all functions of the company - Enforced strong leadership skills to ensure efficient/effective utilization of corporate resources.

Established and integrated the functional strategies of the company utilizing business expertise to reach financial/operational goals and objectives.

Deployed resources to achieve financial forecast and business objectives.

Developed sales and marketing plans and programs for company sales personnel.

Analyzed market trends and statistics to determine potential of growth - monitored sales performance regularly.

2011 - Present Solomon Mining Limited Chairman

A subsidiary of Worldlink International Limited.

Resource and infrastructure management.

Projects and operations in Laos, Myanmar, and other South East Asia countries.

2012 - Present OMEX Resources Limited (Solomon Islands) Chairman

Omex Resources Limited was purchased and taken over by Solomon Mining Limited.

Is now managed and run by Solomon Mining Limited

Skills / Hobbies

Fluent in English, Cantonese, and Mandarin languages

Proficient in Microsoft Windows, and OSX operation systems.

Experienced and knowledgeable in Microsoft Office, and other Internet applications.

Holds Hong Kong, Solomon Islands, and an International Drivers License.

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Enjoys doing volunteer work.

Long time donator and benefactor to many charities and non-profit organizations.

2. Robert Matthew Yuen – a brief profile

Mobile (Hong Kong): (+852) 53203928 Mobile (Ghinalr (+86) 15012948839

Mobife (Solomon lslands): (+677, 7677997 Email: rmy1979@yahoo.com

Experience

2012 -2013 Solomon Mining Limited Hong Kong SAR Deputy Director of Administration / Project Manager

Responsible for implementing and managing project changes and interventions to achieve project outputs

Facilitated the definition of project scopes, goals and deliverables

Managed project budgets

Planned and scheduled project timelines ' Present reports defining project progress, problems and solutions

2OO9 - 2012 Private tutoring

Teaching English (oraland written) to children and adults

Prepared students for SAT and Toeic exams

2OO4 - 2OO8 SRC Group LLC New Jersey President I General Manager

Responsible for acquiring and maintaining contact with clients

Liaising closely with factories to ensure proper production of products

Coordinating shipment schedules with factories and clients

In-country representative responsible for quality control 2004 - 2005 Worldlink International (HK) Co., LTD. Hong Kong SAR

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Coordinated shipment schedules between factories and clients

Quality control of products

Corresponded between factories and clients

2004 - 2005 Shenzhen Yuesi fashion Co. Shenzhen, China

Coordinated shipment schedules between factories and clients

Corresponded between factories and clients

Quality control of products

2001 - 2005 Hillsborough Outdoor Sports Center New Jersey Proprietor / General Manager

Communicated with wholesalers to schedule and ensure on-time merchandise deliveries

Customer service lead with responsibility for training and quality control

.Actively negotiated pricing, contracts and payments with wholesalers and distributors

Managed, trained, and motivated 12 employees

Planned and organized company events and promotions

2001 - 2002 KinderCare Belte Mead. NJ Teacher’s Assistant

Prepared daily lesson plans

Planned and participated in parent-teacher conferences

Initiated new and novel outdoor activities for children 1998 - 2001 United States Marine Corps Communications operator

Charged with installing and providing lines of secure communication

Expertise in satellite phone, radio, and ground to air communications

Education

Shenzhen University (international Students Department) Shenzhen

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Certificate of completion in intermediate Chinese Middlesex College Edison, NJ

Degree in Police Science & Psychology

Skills

Proficient in Microsoft Office, Windows, internet applications

Semi-fluent in spoken, reading, and writing of Chinese (Cantonese and Mandarin)

Working knowledge of Spanish and ltalian

United States, Hong Kong, and Solomon islands auto driver licenses

5. Access Agreements

Solomon Mining Ltd has the verbal and intellectual capability in negotiating and

maintaining land access agreements. The company intends to do prospecting and

mining business ventures and services in Honiara and Solomon Islands at large and

has a proven lasting record to establish and maintain relationships with the local

people and Solomon Islands Government. When access agreements are established

with the local customary landowners and the project communities, the company will

continue to value the mutual and cordially relationship initiated as the pivotal

phenomenon for land access to the prospecting area. Mr. Charles Meke with the

assistance of short-term employed landowners will be heading the landowner

negotiations.

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6. Environmental Management

Solomon Mining Limited is committed to responsible environmental management.

Solomon Mining will achieve that outcome by:-

Requiring all managers, supervisors, employees and contractors to

proactively manage their work areas using sound environmental practices and

procedures;

Applying the principles of hazard identification, risk assessment and risk

control;

Regularly reviewing and setting environmental objectives and targets with the

aim of continually improving its environmental performance, including

prevention of pollution;

Maintaining a thorough level of environmental awareness throughout its

obligation by visible managerial leadership and by training and good two way

communication;

Consulting with its neighbours, local community groups, landowners and all

levels of government;

Managing its operations and activities to comply with applicable

environmental laws, regulations, licences, and other commitments to which

the company subscribes; and

Openly reporting on its environmental performance.

In the unlikely event of environmental incidents Solomon Mining undertakes to

promptly cease any operation or work causing the incident and mitigate impacts by

using best practice rehabilitation procedures.

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7. Geological Potential of the Prospect Area

7.1 Geological Setting

a) Regional Geological Setting

The Solomon Islands and New Guinea are part of a continental island arc system

formed by the collision of the north moving Australia-India plate with the south-west

moving Pacific Plate. Subduction of the Pacific Plate beneath the Australia-India

Plate resulted in partial melting of the Pacific Plate and diapiric rise of magma domes

into the Australia-India Plate. Initial subduction occurred in a south-westerly direction

and this process may have been initiated as early as late Eocene time. A reversal of

the subduction is thought to have occurred near the end of the Miocene when north-

east directed subduction along the south west margin of the archipelago was

initiated. The tectonic setting of the Solomon Islands is presented in Figure 7.1.1.

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Figure 7.1.1. Tectonic setting of the Solomon Islands with Makira Island

Initial work to place the Solomon Islands Group into a regional tectonics framework

was that by P. Coleman in the 1960’s. Coleman came up with the concept of a

“Geological Province Model” (Figure 3-4).

7.2 Geological Province Model

Coleman initially divided the Solomon Islands block into 4 geological provinces

known as (a) Central Geological Province; (b) Volcanic Geological Province; (c)

Pacific Geological Province and (d) Atoll Geological Province.

Marau Sound Nickel Prospect

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Figure 7.2.1 Geological Province Model of P. Coleman (1960)

7.2.1 Fractured Arc Concept

Brian D. Hackman (1980) used the concept of a fractured arc involving rifting and

block- faulting to explain the double en echelon chain nature of the islands in which

Choiseul, Santa Isabel and Malaita occur on the northern chain while Bougainville,

the New Georgia Group, Guadalcanal and San Christobal occur in the southern

chain.

Attempts to incorporate the fractured arc model into a geo-tectonic framework were

taken up by others (Harris of Gualer Resources Limited, 1998) in the late 1990’s.

Their work mentions three major tectonic events involving subduction related events

between the Australian and Pacific tectonic plates.

According to this concept, the Solomon Islands is composed of two sub- parallel

northwest-southeast trending volcanic island arcs situated on the Solomon Plate that

form part of the circum-Pacific volcanic arc. The Solomon Plate lies between the

subducting Pacific and Australia-India Plates. Both the Pacific and Australian plates

subduct beneath the Solomon Plate. The subduction trench stretches from Vanuatu

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right through to eastern most Bougainville Island through to the Lihir Groups of

Islands in the northeast of Papua New Guinea. The geological history and evolution

of the Solomon Islands is ascribed to these three major tectonic events.

First Tectonic Event

The first tectonic event saw the emplacement of submarine oceanic crust extruded

as alkali olivine basaltic lavas during the failure of a geanticlinal welt formed by

converging and subducting Pacific and Australian Plates.

A thick sequence of basic volcanics, limestone beds and dolerite sills of the Mbirao

Group represents this emplaced oceanic crust.

Second Tectonic Event

A second phase of compressive tectonic event presumably metamorphosed the

Mbirao oceanic basic volcanic and carbonate sequences and produced a series of

ultrabasic and meta-gabbroic bodies in the Eocene to Oligocene times. This tectonic

event is represented by ultrabasic emplacements in central and eastern

Guadalcanal, San Cristobal, Santa Isabel and eastern Choiseul.

Third Tectonic Event

The third tectonic event is described as dominated by block faulting, as a

consequence of extensional faulting due to rifting. This tectonic extensional event

occurred during the late Oligocene to lower Miocene.

First Volcanism associated with the Third Tectonic Event

The resultant uplift from block-faulting led to the erosion of the metabasic rocks and

triggered the extrusion of basaltic to andesitic calc-alkaline volcanism. The Suta

Volcanics of Central Guadalcanal and the Umasani Volcanics of West Guadalcanal

were extruded as part of this third tectonic event.

This period of volcanism produced the pile of basalts, basaltic andesites and

associated pyroclastics and interbeds of limestone beds.

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The extrusive volcanism was then followed by the intrusion of high level igneous

plutons of the Poha Diorite Complex in the Oligocene period. Similar volcanic and

igneous activity was noted in Bougainville, Vanuatu and Fiji during the same period.

Sulphide mineralisation was associated with this period of basaltic-andesitic

volcanism and emplacement of plutonic dioritic intrusions in the Oligocene to early

Miocene times.

The deposition of various volcanic derived sediments occurred as a result of uplift

and erosion of volcanic and plutonic igneous bodies.

A hiatus period

A hiatus occurred during the Miocene. This is represented by deposition of

carbonate platforms in extensive fringing reefs, forming the Mboneghe Limestone.

Overlying unconformably with the Mboneghe limestone are a sequences of tuffs,

siltstones, agglomerates and tuffaceous arenites.

Second Volcanism during the Third Tectonic Event

In the late Miocene, another volcanic event produced the Galled lavas, basalts,

hornblende andesites and related tuff breccias deposited on West Guadalcanal.

These lavas have been K-Ar dated at 6.39 Ma (Hackman, 1980).

High level micro-diorite to hornblende porphyry intrusions were emplaced during the

Oligocene to Pleistocene. Rocks of similar composition also occur in the New

Georgia Group. On West Guadalcanal, the Oligocene intrusions are overlain by the

Lungga Beds.

The topmost Recent calcareous volcanic arenites and terrace forming reefs form the

Honiara Beds of stratigraphic sequence on West Guadalcanal.

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7.3 Geological “Terrain Model”

Recent work by the Geology Department in the Ministry of Mines in Solomon Islands

in collaboration with the British Overseas Geological Institute and various overseas

university researchers have further shed light on the regional tectonics geology of

the Solomon Islands Group. Their work has further improved and somewhat refined

the original “Geological Province Model concept” of Coleman into what they now

refer to as “Geological Terrains Model” (Figure 3.1.3-1).

The “Geological Terrain Model” concept was based on;

(a) Lithological, geochemical, isotopic and geochronology differences or

similarities of the basaltic basement complex comprising the major islands

(b) The development (or lack of) of subsequent arc subduction.

Based on the above parameters, the refined model proposes to group the large

islands of Choiseul, Guadalcanal, Santa Isabel, San Christobal, Malaita and the New

Georgia Group into differing “Geological Terrains” (figure 3.1.3-1)

In the “Geological Terrain Model” Choiseul and Guadalcanal basaltic basement

complexes show similarities with mid-ocean ridge basalts or a MORB type terrain

occurring in an intra-oceanic environment. They are considered as forming within a

“MORB Type Terrain”.

Malaita, Santa Isabel (north of the Kaipito Thrust fault) and Ulawa show affinities of

an oceanic plume type terrain related to the Ontong Java Plateau (OTJP). They are

considered to have formed and part of the “OJP Terrain”.

Makira (or San Christobal) show a hybrid terrain showing mixed features of a MORB-

type and a Plume-type terrain. They are referred to as a “Mixed Terrain”.

Arc related subduction episodes resulting from the coupling of the northwesterly

moving Pacific Tectonic Plate with the northeasterly moving Australian Continental

Tectonic Plate gave rise to alkaline and calc-alkaline volcanism within the Solomon

Block. The volcanism with its associated plutonic intrusions accreted to the basaltic

basements of the MORB-type terrain in the Eocene to the present.

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These episodes of arc related subduction were not evident in the Plume-type terrain

of the OJPT basement hence Malaita, north Santa Isabel and Ulawa basaltic

basements were unaffected by this arc related magmatism.

Two episodes of arc related plate subductions occurred in the Eocene to the present

within the Solomon Block. The Eocene to early Miocene related subduction occurs to

the north of the Solomon Block along the Vitiaz trench system (figure 3.1.3-1)

This earlier plate subduction phase gave rise to alkaline and calc-alkaline volcanism

associated with the Suta and Gold Ridge Volcanics and their associated plutonic

equivalents of the Koloula, Poha and Lungga Diorites on Guadalcanal and its

Miocene age equivalent Mole formation on Choiseul as well as the volcanic

basement of the Shortland Islands group, the Florida Group and south Santa Isabel.

Choking and cessation of the Vitiaz trench system with its associated volcanism

occurred as a result of the Ontong Java Plateau coupling and abutting onto the

Solomon Block in the Miocene (figure 3.1.3-1)

The above phenomena initiated a reversal in the direction of subduction. Subduction

was now northwards directed and occurs to the south of the Solomon Block (Figure

3.1.3-1)

Volcanism associated with this second subduction tectonic phase gave rise to the

alkaline and calc-alkaline volcanism found within the New Georgia Group, Russell

Island Group, Savo and West Guadalcanal.

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Figure 7.3.1 Geological Terrain Model, Mines Department & Others, 1998

The two periods of volcanism ascribed to the third phase of volcanism described in

the fractured arc concept probably refers to the two periods of arc development

associated with subduction along the Vitiaz Trench to the north of the Solomon Block

(early subduction) and subduction along the New Britain-San Cristobal Trench (later

subduction) associated with arc reversal as a consequence of the jamming of the

Vitiaz Trench by the northwest moving thickened Ontong Java Plate as described in

the “Geological Terrain Model’.

7.4 Local Geology

The rugged southern part of the mainland is founded on a pile of Pre-Miocene

augite-labradorite basalts, the Mbirao Volcanics, which probably exceeds 2,000m in

thickness and dips do not conform to this pattern owning to the intensive faulting.

Pillow lava is commonly developed, with a good deal of interstitial jasper and

recrystalized pelagic biomicrite. Minor dolerite sills intrude the lava pile, particularly in

the Kolovaghamela Valley. The mountains rise to over 800m near the southern

boundary of the sheet.

In an east-west belt to the north of the Mbirao Volcanics, and in subsidiary zone in

the upper part of the Mandonu Valley, the basic rocks have been affected by a low-

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grade regional metamorphism, well-foliated rocks are developed, such as chlorite-

actinolate Cretaceous age, outcrops on the northern side of the Mbirao Metabasics,

and has also been subjected to low-grade metamporphism.

Geological map Marau

The Tetekanji Limestones form to east-west belts of sheared recrystallised

multicoloured limestone, nowhere exceeding 150m in thickness. The limestone belts

can be mapped within both the Mbirao Volcanics and the Metabasics: faulting has

often occurred preferentially along the line of their outcrop.

The Marau Ultrabasics trend E.S.E. from the Mburumburu River through to Beagle

Island. The predominant rock type is a serpentinized harburgite, with subsidiary

dykes of pyroxenitic type. The ultrabasics are believed to have been emplaced

during the Oligocene and thrust higher into the crust in the late Miocene. Small

pockets of metagabbro appear to be slices of hornblende-albite-amphibolite which

were upthrust with the metabasics. The boundary thrust palnes dip steeply north-

west, parallel to the schistosity in the serpentinite and the adjacent metavolcanics.

Recent alluvium fills the lowest sections of the Kolovaghamela and Mandonu

Valleys, and coral fringes part of the northern coast and the islands of Marau Sound.

The pattern of the Marau archipelago is due to Recent subsidence, the majors

channels between the islands representing former drowned river valleys.

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7.5 Local geological structures

The faults in the basement rocks trend N.E., W.N.W. and N.N.W. There is evidence

for sinistral transcurrent movement along W.N.W. trending faults, also for dextral

displacement of the ultrabasic outcrop along N.N.W. trending faults.

Pliocene conglomerates and calcareous arenites overly the Guadalcanal Gabbro on

the northern flank of the Marau Ultra-basics. These “Longgu Beds” are poorly

exposed, but are approximately 200m thick, dipping at 10-20° to the north.

Figure 7.5.1 Geological Provinces in the Solomon Islands

7.6 Mineralisation

Nickeliferous laterites have developed over the weathered serpentinized ultrabasics

rock outcrops of the Marau Sound. The laterites are covered in part by fern and light

scrub vegetation, and in part by a characteristic forest vegetation. Gently rounded hill

crests, distinctive drainage patterns and a fine grained texture of the forest areas are

clear indications of an ultrabasic country rock when viewed on aerial photos. The

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extent of the laterite areas which are not fern-covered may be estimated from the

aerial photos by considering the gradient of the mountain slopes. Experience has

shown that all the rounded ridges in ultrabasic country are capped with laterite and it

is generally true that the broader the ridge the deeper the laterite on it.

The Marau Sound ultrabasics outcrop as a ribbon up to a mile and eleven miles long.

Physiographically they are comprise a single ridge with some southerly spurs,

extending westwards from Savikau Village. A small laterite-covered ultrabasic

outcrop also occurs on beagle Island. The northerly-flowing Mandonu and the Kau

Kau rivers have cut valleys right through the east-west ultrabasic ridge. East of the

Mandonu river the forest laterite-covered ridge crest is not more than 60 yards wide.

The flanks are too steep for laterite development. Between the Mandonu River and

the Kau Kau River the single ridge divides causing lower relief and there are some

larger laterite patches with the laterite extending a short way down the ridge sides.

To the west of the Kau Kau River forest laterite has developed along the broader

parts of the ridge crest. On two of the southern spurs adjoining the main ridge is a

fern-covered laterite, which thins downhill to bare rocky hillside.

Figure 7.6.1Bauksit laterite areas of the eastern Guadalcanl Island

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8. Proposed Programme by Solomon Mining

The tenement is prospective for nickeliferous laterites which have been thought to be

developed over the weathered serpentinized ultrabasics rocks. Inland of Marau Bay

the laterites are covered in part by fern and light scrub vegetation, and in part by a

characteristic forest vegetation. The programme over Marau will involve detailed infill

mapping and sampling of all identified targets along with reconnaissance surveys

throughout remainder of the tenement.

Soil and rock chip sampling will be undertaken within the tenement along with pitting

and augering and trenching. Anomalous areas will be further sampled in more detail

along with areas of known mineralisation.

Once an area of nickel mineralisation has been satisfactorily located, extensive hand

auger sampling survey programmes are envisaged with the aim of better

understanding the underlying styles of nickel mineralisation zones such as for

occurrences of limonite and saprolite ores.

Geophysics surveys and hand feed drilling programme are expected to be

completed over this area following detail thorough mapping and sampling.

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9. Proposed Budget 3 years

Three year indicative budget Marau ($SBD)

Access Negotiations with community&

community projects

$2,200,000

Compensation for damaged sacred

sites/ areas

$200,000

Geologists/Management $2,000,000

Geophysics $1,000,000

Field Hands and Labour $1,200,000

Exploration and access roads $2,500,000

Assaying $1,200,000

Flights & Accommodation $1000,000

Helicopter support $1,000,000

Camp and field Management $500,000

Solomon Office Costs $1,000,000

Total $12,600,000

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10. Description of Marau Nickel Prospect Tenement Area

MARAU NICKEL PROSPECTING LICENCE APPLICATION (GUADALCANAL

PROVINCE)

AREA DESCRIPTION

The PL area applied for here is to be known as Marau Prospect and is locate on the

island of Guadalcanal and Province of Guadalcanal. The description of this parcel of

land, in UTM Coordinates is as follows:

Marau PL Application, Eastern Guadalcanal Island, Guadalcanal Province

The approximately rectangular shaped UTM boundary co-ordinates of Marau

Prospect are as follows: UTM coordinates given are Mercator, Spheroid

International, and Zone 57 Southern Hemisphere.

The SW corner is the starting point (1) at UTM co-ordinate

Total area is 116 square kilometres

point x y

1 664,998.09 8,940,486.53

2 676,905.82 8,940,480.16

3 676,866.84 8,939,505.80

4 679,283.25 8,939,505.80

5 679,283.25 8,937,167.34

6 680,920.18 8,937,206.31

7 680,900.69 8,935,666.82

8 682,381.72 8,935,647.34

9 682,381.72 8,927,618.60

10 688,402.11 8,927,662.83

11 688,402.04 8,926,801.84

12 690,168.90 8,926,801.83

13 690,159.89 8,925,465.56

14 701,224.76 8,925,435.49

15 701,000.00 8,908,000.00

16 698,000.00 8,908,000.00

17 698,000.00 8,907,100.00

18 695,100.00 8,907,100.00

19 695,100.00 8,905,900.00

20 690,800.00 8,905,900.00

21 690,800.00 8,904,500.00

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22 682,730.00 8,904,500.00

23 682,730.00 8,903,400.00

24 680,600.00 8,903,400.00

25 680,600.00 8,902,000.00

26 674,300.00 8,902,000.00

27 674,300.00 8,902,800.00

28 670,250.00 8,902,800.00

29 670,250.00 8,903,800.00

30 668,000.00 8,903,800.00

31 668,000.00 8,905,000.00

32 665,000.00 8,905,000.00

33 665,000.00 8,906,500.00

34 662,000.00 8,906,500.00

35 662,000.00 8,910,000.00

36 682,000.00 8,910,000.00

37 681,947.65 8,919,215.07

38 676,999.98 8,919,000.04

39 676,957.66 8,926,866.35

40 665,000.00 8,927,000.00

The location of the prospect area is as shown in Figure 10.1;

Topografi Consecion

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11. Business Plan

Solomon Mining Limited

1.0 Introduction

Solomon Mining Ltd is a 100% locally owned company based in Solomon

Islands and its original or Mother Company is based in Hong Kong.

2.0 Shareholders

The shareholders are as follows:

Chi Ming Lee British 70%

Robert Matthew Yuen USA 30%

3.0 Business Activities

The activities which the company wishes to conduct are in the area of mining

and quarrying. The company wishes to conduct explorations and mining of

gold, silver, copper, nickel and cobalt in all provinces in the Solomon Islands.

4.0 Management

The company is planning to employ locals in so far as possible and foreign

nationals only as required with capability and respective qualifications on

which locals that have broad background and experiences are eligible to be

employed. The company will also conduct capacity building as their focal goal

to rural advancement and development.

4.0 Capital Investment

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The company will invest as per the budget above in the mineral sector to get

the operation under way. This will be used to operate the current running of

the company and its prospecting activities.

The provision of this fund will be provided by the shareholders as their equity

share as well as income generated when operations begin.

5.0 Operational Plan

The operational plan of the company will be performed in respect to the laws

of Solomon Island and in accordance to the Surface Access Rights signed

with the landowners. The company will also assist landowners in their future

endeavours as stipulated in the Surface Access Agreements. The landowners

will sign the Surface Access and shall allow the company to do their

respective operations and activities in accordance to the agreements that

would be sign respectively.

6.0 Development Plan

The development plan is given on the table below which will be followed

thoroughly and making sure that all procedures are relevantly followed;

Item Department Ministry

1. Registration of

company with

Foreign Investment

Board

Foreign Investment

Board

Ministry of Commerce,

Industries, Labour &

Immigration

2. Incorporation of

company

Company House Ministry of Commerce,

Industries, Labour &

Immigration

3. Lodge of Mineral right

application

Mines Division/Minerals

Board

Ministry of Mines, Energy

& Rural Electrification

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4. Letter of Intent Mines Division/Minerals

Board

Ministry of Mines, Energy

& Rural Electrification

5. Prospecting Licence

and surface access

Mines Division/Minerals

Board

Ministry of Mines, Energy

& Rural Electrification

6. Renewal of

prospecting licence

Mines Division/Minerals

Board

Ministry of Mines, Energy

& Rural Electrification

7. Mining Lease Mines Division/Minerals

Board

Ministry of Mines, Energy

& Rural Electrification

7.0 Marketing Process

Solomon Mining Ltd also has connections with nickel supplier/ buyer

company based in Hong Kong. The market outlet will be exported to Hong

Kong on current industry market price. The export plan will be done in

accordance to the mines and minerals act and customs levy from the ministry

of finance.

8.0 Conclusion

The company agrees to allocate shares to landowners if they do legally

incorporate themselves. This would be achieved and could be negotiated in

the mining lease period. The company will monitor the Land owners for this

important under taking from time to time.

They will adhere to what the landowners wish to achieve and it must be

stipulated under a legal agreement with the company.