Technical Report of the Geology and Mineral Resources of the Neita Fiscal Reserve, Dominican Republic.

For:

Unigold Inc. 2115 des Laurentides, Suite 200

Laval, Québec H7M 4M2 Canada

By

Ricardo A. Valls, P. Geo., M. Sc.

March 30th, 2008

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Ricardo A. Valls, P. Geo., M. Sc. Valls Geoconsultant

Technical Report of the Geology and Mineral

Resources of the Neita Fiscal Reserve, Dominican Republic.

Toronto, Ontario March 30th, 2008

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Production: Unigold Inc. Design and layout: Ricardo A. Valls Photos and illustrations: Ricardo A. Valls, Daniel Danis.

Copyright © 2008 Unigold Inc., All rights reserved

No part of this publication may be reproduced or used in any form or by any

means - graphic, electronic, or mechanical, including photocopying, recording,

taping, or information storage and retrieval systems without written

permission of the Client, Unigold Inc., for whom this report was written.

Cette publication est disponible en anglais seulement. Esta publicación está disponible sólo en inglés.

P.O.D.

Picture in the cover. Drilling at Los Candelones, Dominican Republic. Picture in the back. The first picture from October 11th 2002 of what is now known as the south extension of Los Candelones, Dominican Republic.

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Table of Contents Summary ....................................................................................................................................... 13 Introduction................................................................................................................................... 14 Reliance on Other Experts ............................................................................................................ 15 Property Description and Location ............................................................................................... 16 Accessibility, Climate, Vegetation, Local Resources, Infrastructure, and Physiography ............ 18

Accessibility and Physiography................................................................................................ 18 Climate...................................................................................................................................... 19 Infrastructure and Local Resources .......................................................................................... 20 Vegetation ................................................................................................................................. 20

History........................................................................................................................................... 21 Geological Setting......................................................................................................................... 25

Regional Geology ..................................................................................................................... 25 Local Geology........................................................................................................................... 27

Los Candelones Area ............................................................................................................ 27 El Corozo Area ..................................................................................................................... 29 Montazo-Guano Area............................................................................................................ 30

Deposit Types ............................................................................................................................... 31 Hot-Spring Au-Ag .................................................................................................................... 32

Synonyms:............................................................................................................................. 32 Commodities:........................................................................................................................ 32 Geological Characteristics .................................................................................................... 32 Ore mineralogy (Principal and subordinate): ....................................................................... 32 Gangue mineralogy (Principal and subordinate): ................................................................. 33 Alteration mineralogy (Principal and subordinate): ............................................................. 33 Weathering: ........................................................................................................................... 33 Ore controls:.......................................................................................................................... 33 Genetic model: ...................................................................................................................... 33 Associated deposit types:...................................................................................................... 33 Comments: ............................................................................................................................ 33 Exploration Guides ............................................................................................................... 33 Economic Factors.................................................................................................................. 34

Vein Type.................................................................................................................................. 35 Synonyms:............................................................................................................................. 35 Commodities:........................................................................................................................ 35 Geologic characteristics ........................................................................................................ 35 Ore mineralogy (Principal and subordinate): ....................................................................... 36 Gangue mineralogy (Principal and subordinate): ................................................................. 36 Alteration mineralogy: .......................................................................................................... 36 Weathering: ........................................................................................................................... 36 Ore controls:.......................................................................................................................... 36 Genetic model: ...................................................................................................................... 36 Associated deposit types:...................................................................................................... 37 Comments: ............................................................................................................................ 37

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Exploration Guides ............................................................................................................... 37 Economic Factors.................................................................................................................. 37

Copper Porphyde ...................................................................................................................... 38 Form...................................................................................................................................... 38 Petrology of the Host Rocks ................................................................................................. 38 Hydrothermal Alteration....................................................................................................... 38 Hypogene Mineralization...................................................................................................... 39 Vertical Extent of Porphyry Bodies...................................................................................... 40 Genesis.................................................................................................................................. 41

Mineralization ............................................................................................................................... 42 Exploration.................................................................................................................................... 45

Grab sampling........................................................................................................................... 45 Geophysics................................................................................................................................ 45

IP ........................................................................................................................................... 45 Fugro DIGHEM Survey........................................................................................................ 47 Ground magnetics ................................................................................................................. 47

Geochemistry ............................................................................................................................ 48 Soil sampling ........................................................................................................................ 48 Stream sediment sampling .................................................................................................... 49

Trenching .................................................................................................................................. 50 Drilling.......................................................................................................................................... 51

Candelones................................................................................................................................ 51 Juan del Bosque ........................................................................................................................ 58 Corozo....................................................................................................................................... 60

Sampling Method and Approach .................................................................................................. 62 Grab samples............................................................................................................................. 62 Soil sampling ............................................................................................................................ 62 Trenches.................................................................................................................................... 62 Drilling...................................................................................................................................... 63

Sample Preparation, Analyses, and Security ................................................................................ 65 Data Verification........................................................................................................................... 69 Adjacent Properties....................................................................................................................... 70 Mineral Processing and Metallurgical Testing ............................................................................. 72

Cyanidation testwork ................................................................................................................ 73 Mineral Resources and Mineral Reserves Estimates .................................................................... 75 Other Relevant Data and Information........................................................................................... 76

Lineament Analysis of the NFR ............................................................................................... 76 Geomathematical modelling ..................................................................................................... 76

Interpretation......................................................................................................................... 78 Corozo Type Targets................................................................................................................. 91

RCC+1 .................................................................................................................................. 91 RCC+2 .................................................................................................................................. 91

Candelones Type Targets.......................................................................................................... 92 Guano Type Targets.................................................................................................................. 94 “Neita” Type Targets ................................................................................................................ 96 Berro Type Targets ................................................................................................................... 96

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Central Type Target .................................................................................................................. 97 Conclusions and Recommendations from the lineament analysis............................................ 98

Interpretation and Conclusions ..................................................................................................... 99 Recommendations....................................................................................................................... 100

Proposed Budget ..................................................................................................................... 101 For the definition of current resources................................................................................ 101 For the definition of new targets......................................................................................... 103

References................................................................................................................................... 106 Additional Requirements for Technical Reports on Development Properties and Production Properties .................................................................................................................................... 108 Date and Signature Page ............................................................................................................. 109 Appendix 1. Lineament Analysis of the Neita Fiscal Reserves.................................................. 111 Appendix 2. Structural Analysis of the lineaments. ................................................................... 112 Appendix 3. Circular Structures at the Neita Fiscal Reserves. ................................................... 113 Appendix 4. Rose Diagram analysis........................................................................................... 114 Appendix 5. Strain Analysis. ...................................................................................................... 115 Appendix 6. Target zones just by lineaments. ............................................................................ 116 Appendix 7. Certificate IRAM ACME Chile ............................................................................. 117 Appendix 8. Certificate IQNet ACME Chile.............................................................................. 118 List of Figures Figure 1. Location of the Neita Fiscal Reserve............................................................................. 16 Figure 2. Access to the Neita Fiscal reserve from Santiago in Dominican Republic. Shown in blue the route of the author’s last visit during March 2008.......................................................... 18 Figure 3. Regional relief of the NFR. ........................................................................................... 19 Figure 4. Rainfall/Temperature graphic for Santo Domingo in Dominican Republic. ................ 19 Figure 5. Typical vegetation at the NFR in Dominican Republic. ............................................... 20 Figure 6. Soil sampling of a limonitic horizon. ............................................................................ 23 Figure 7. Stream sediment from an active creek........................................................................... 23 Figure 8. Lithogeochemical sample on an outcrop of vacuolar basalts. ....................................... 24 Figure 9. Hydrogeochemical sample from an active river............................................................ 24 Figure 10. Biochemical sampling of ferns. This type of thin and "woody" fern grows exclusively in the vicinity of the alteration zones at Los Candelones target. .................................................. 24 Figure 11. Biogeochemical sampling of ferns. This type of "normal" ferns are located everywhere, except for the areas of visual alteration. The author considered this a definitely geobotanic marker and recommended further studies and sampling............................................ 24 Figure 12. Regional geology of the NFR in Dominican Republic. .............................................. 25 Figure 13. General structural setting of Hispaniola, modified arter Maurrasse et al., 1982......... 26 Figure 14. Local geology and topography of Los Candelones area. ............................................ 27 Figure 15. Typical chlorite-argilitic-siliceous alteration sequence topped by and oxidation cap at los Candelones. ............................................................................................................................. 27 Figure 16. In the more silicified units it is possible to find evidence of the slickenside displacement of the mineralized zone oriented 30° and modifying the older faults..................... 27 Figure 17. Local geology and topography of El Corozo area....................................................... 29

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Figure 18. Local geology of the Montazo-Guano Area. ............................................................... 30 Figure 19. Vertical gradient magnetics at the Montazo-Guano area. ........................................... 30 Figure 20. Schematic cross-section of an epithermal system similar to the one found at the NFR........................................................................................................................................................ 31 Figure 21. Typical hydrothermal alteration zoning patterns in a copper porphyry deposit.......... 38 Figure 22. Principal zones of sulphide mineralization for porphyry copper deposits. ................. 39 Figure 23. Model of the vertical extent of porphyry bodies. ........................................................ 40 Figure 24. Porphyritic andesite with gold-bearing sulphides and chalcopyrite............................ 42 Figure 25. Typical oxidation cap formed on top of the original sulphide mineralization within the NFR in Dominican Republic. ....................................................................................................... 43 Figure 26. Malachite and azurite showing from the northern part of the NFR in Dominican Republic. ....................................................................................................................................... 43 Figure 27. Barite veinlets with abundant manganese at the top of Los Candelones area............. 44 Figure 28. : Los Candelones IP chargeability profiles................................................................. 46 Figure 29. Montazo-Guano IP chargeability profiles on top of regional geology........................ 46 Figure 30. Candelones ground magnetic survey. Red is high magnetic, blue is low magnetic.... 47 Figure 31. Gold in soil anomalies. ................................................................................................ 48 Figure 32. Neita stream sediment. Red stars indicated Au>100ppb............................................. 49 Figure 33. Mapping a trench at the NFR property........................................................................ 50 Figure 34. Versadrill Kmb 4 with an NQ diameter core setup drilling currently at Candelones. 51 Figure 35. Atlas-Copco DIAMEC U6 drill, also using NQ core at Candelones. ......................... 51 Figure 36. Location of the drill holes at Los Candelones. ............................................................ 56 Figure 37. Location of holes at Juan del Bosque. ......................................................................... 59 Figure 38. Location of drill holes at El Corozo. ........................................................................... 61 Figure 39. Plan view of Candelones drill holes showing their gold content and the location of section A-A’.................................................................................................................................. 63 Figure 40. Section A-A’ across the main zone on Candelones..................................................... 64 Figure 41. Preparation facilities at ACME Laboratories in Dominican Republic. ....................... 65 Figure 42. Oven with the capacity to dry 300 samples at no more than 60°C. ............................ 66 Figure 43. Crushing station........................................................................................................... 66 Figure 44. This type of barren quartz is used to clean up the crushers......................................... 66 Figure 45. Homogenization station............................................................................................... 66 Figure 46. Samples prepared to be sent for assaying.................................................................... 66 Figure 47. Granulometric control for March 2008. ...................................................................... 66 Figure 48. LIMS system for code bars in use by ACME Laboratories in Dominican Republic. . 67 Figure 49. The core is brought from the field to the sampling shack by the geologists. .............. 68 Figure 50. Diamond saw to cut the more silicified sections of the core....................................... 68 Figure 51. The sampling personnel have all the bags numbered and prepared before commencing the sampling procedure. ................................................................................................................ 68 Figure 52. Two technicians use the core splitter to split the core and take the sample. ............... 68 Figure 53. The Client also has a very secure core shack for the rejects and sampled cores......... 68 Figure 54. Geologist François Goulet uses an ASD spectrometry to study the core.................... 68 Figure 55. Sampling at the top of Los Candelones. ...................................................................... 69 Figure 56. Sampling at a trench at Los Candelones...................................................................... 69 Figure 57. Corozo type targets...................................................................................................... 79 Figure 58. Candelones type targets............................................................................................... 81

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Figure 59. Guano type targets....................................................................................................... 83 Figure 60. “Neita” type targets. .................................................................................................... 85 Figure 61. Berro type of targets. ................................................................................................... 87 Figure 62. Central type of targets. ................................................................................................ 89 Figure 63. Detail on the morphology of Loma Pozo Negro. ........................................................ 92 Figure 64. Detail of the anomaly in the southeastern flank of Cerro de la Yerba Paez................ 97 List of Tables Table 1. Significant intersections from the trenches at the NFR. ................................................. 50 Table 2. Collar of the holes drilled at Los Candelones................................................................. 52 Table 3. Significant intersections from the holes drilled at Los Candelones................................ 54 Table 4. Collar of the holes drilled at Juan del Bosque. ............................................................... 58 Table 5. Significant intersections at Juan del Bosque................................................................... 58 Table 6. Collar of the holes drilled at El Corozo. ......................................................................... 60 Table 7. Significant intersections at El Corozo. ........................................................................... 60 Table 8. Results of the independent sampling at NFR.................................................................. 69 Table 9. Results of the cyanidation testing by BRGM. ................................................................ 74 Table 10 Geological code for the formations of the Neita Fiscal Reserves area. ......................... 76 Table 11. Correlation matrix for El Corozo.................................................................................. 80 Table 12. Correlation matrix for Candelones. .............................................................................. 82 Table 13. Correlation matrix for Guano. ...................................................................................... 84 Table 14.Correlation matrix for Neita. ......................................................................................... 86 Table 15.Correlation matrix for Berro. ......................................................................................... 88 Table 16. Correlation matrix for Central. ..................................................................................... 90 Table 17. UTM coordinates of the Candelones type targets......................................................... 93 Table 18. UTM coordinates of the Guano type targets................................................................. 95 Table 19. UTM coordinates of the Berro type targets. ................................................................. 96 Table 20. Budget for the definition of current resources during 2008........................................ 101

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Summary The Neita Fiscal Reserve (NFR) is located in the north-western part of the Dominican Republic having its western limit along the border with the Republic of Haiti. The Eastern limit of this reserve is the coordinate UTM E: 229,000 (UTM Zone 19Q) and the North and South borders correspond to UTM N: 2,131,000 and 2,144,000 respectively. It has an area of 252.21 km2 and it covers most of the rugged terrain of the Central Cordillera along the border with Haiti with elevation that range from 460 m. at the valley of Rio Libón to 1,009 m at the top of Cerro del Guano. The main access from Santo Domingo is via the four lane Highway No. 1 to Santiago for 150 kms (2 hrs.) and then to the village of Restauración for an additional 170 kms (3 hrs) on secondary roads.

The Upper Cretaceous volcano sedimentary sequence of the Tireo Fm. covers almost all the NFR area. This sequence is intruded by a range of plutonic rocks that go from felsic units related to the Loma de Cabrera batholith to ultramafic units of probable ophiolitic origin associated to the NE border of the Caribbean Tectonic Plate. Two major structural trends are present. The older (NW-SE) follows the centre of the island. The younger (EW to NS) displaces the older.

Three types of mineral deposits have been identified in the NFR: hot spring type, vein type and pyrite-chalcopyrite disseminations that could be classified as porphyry cooper deposits.

The gold mineralization is related to the sulphides found associated to quartz and barite. Copper mineralization is mainly chalcopyrite, but veins contain bornite and chalcocite. There is also secondary malachite and azurite.

The exploration completed to date in the NFR has identify 12 mineralized zones of which five are high in copper but low in precious metals. A total of 528 stream sediments and 9,538 soil samples have been taken. In addition, 171 trenches have been excavated for a total of 4,837 metres of trenching.

A total of 86 drill holes have been drilled in between Candelones (73 holes for 11,775.5 m), Corozo (5 holes for 541m) and Juan del Bosque (8 holes for 1,016.5 m) for a total of 13,323 m with very good results both for copper and for gold.

Sampling and assaying have been done according to international procedures and its quality has been confirmed by independent assaying.

The 290 km belt of the Tireo Fm. (Mine Fm. in Haiti) host several deposits with mineral inventories in the Dominican Republic and in Haiti both for gold and copper. In the D.R. two gold deposits, Centenario and Candelones have historical mineral inventories of several million tonnes with grades ranging between 1 and 3 g/t. Au. BRGM (acts as the French Geological survey), in a 7 volume Pre-feasibility Report dated 1998, estimated an uneconomic, historical mineral inventory on the Candelones Deposit located on the NFR. The historical resource was estimated to international standards, but is not certified by the author to be to CIM Standards as his mandate did not cover auditing or reviewing the reserves.

It is strongly recommended to persist in carrying out a well thought out exploration program that will integrate traditional “on the ground” prospecting with vanguard technology such as remote sensing and lineament analysis.

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Introduction At the request of Mr. Daniel Danis, COO of Unigold Inc. (The Client), a report has been prepared by P. Geo. Ricardo Valls of Valls Geoconsultant to present an evaluation of this Client’s project in Dominican Republic.

The author explored the property during the first exploration program in 2002 and completed a lineament analysis of the area in 2003. The author visited the NFR again for three days during the second week of March 2008.

The author used data and information from a previous exploration study conducted by Mr. Salvador Brower from Brower & Asociados Geoconsultores, titled “A Report on the exploration of the properties granted to Unigold Resources Inc. by the government of the Dominican Republic”, dated August 30, 2003, and filed on SEDAR on November 21, 2003 (http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00004036), as well as information from the company’s web site, and other technical sources.

All coordinates in this report correspond to the WGS 84 datum.

We have adhered to the metric system and all the costs are expressed in Canadian dollars.

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Reliance on Other Experts This technical report represents the professional opinion Ricardo A. Valls, P. Geo. from Valls Geoconsultant for Unigold Inc. The purpose of the current report is to provide an independent Technical Report of the geology and mineral potential of the Neita Fiscal Property, in conformance with the standards required by NI 43-101 and Form 43-101F. The opinions expressed herein are based on data and information supplied by, or gathered from Unigold Inc. and reflects the opinion of the author.

This document has been prepared based on a scope of work agreed with Unigold Inc. and is subject to inherent limitations in light of the scope of work, the methodology, and procedures used. This document is meant to be read as a whole, and portions thereof should not be read or relied upon unless in the context of the whole. This document is written for the sole and exclusive benefit of Unigold Inc.

The author has relied, and believes that he has a reasonable basis to rely, upon the following individuals who have contributed the geological, legal, and environmental information stated in this report, as noted below:

Lic. Linette García, Lawyer from Abogados Campo García.

Daniel Danis, P.Geo. and COO of Unigold Inc.

Stephen Poitras, Project Geologist of Unigold Inc.

François Goulet, Project Geologist of Unigold Inc.

Salvador Brouwer, P. Geo. from Brouwer & Asociados, Geoconsultores.

Lic. Mario Canales Salas from ACME Analytical Laboratories. The author has obtained written evaluations of the land status of the property and is satisfied regarding property status and legal title to the project.

Finally, the reader should notice the signature date of this report, which is basically the cut-off date for the information that is included in the present technical report.

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Property Description and Location The present report cover the The Neita Fiscal Reserve (NFR) is located in the north-western part of the Dominican Republic having its western limit along the border with the Republic of Haiti (Fig. 1). The NFR has an area of 252.21 km2 and it covers most of the rugged terrain of the central cordillera along the border with Haiti with elevation that range 460 m. at the valley of Río Libón to 1,009 m at the top of Cerro del Guano.

Figure 1. Location of the Neita Fiscal Reserve. The Eastern limit of this reserve is the coordinate UTM E: 229,000 (UTM Zone 19Q) and the North and South borders correspond to UTM N: 2,131,000 and 2,144,000 respectively. It is located in the border provinces of Dajabón and Elías Piña. The property boundary is controlled by the legal description of the river, the border with Haiti and the upper mentioned UTM coordinates, but has not been formally surveyed. The NFR along with the nearby Sabaneta Fiscal Reserve (SFR) were granted on July 10, 2002 to Unigold Resources for a period of 3 years with two additional years granted as a justified extensions of the granted period. The Dominican State granted to Unigold the exploration rights for gold, silver, zinc, copper and all associated minerals, as well as a sole and exclusive option for the commercial mining of the mineral deposits. The Contract provided that Unigold had a 6 month period following July 10, 2002 to proceed with prospecting as a preliminary step towards the formalization of the consequent application for a concession. All conditions were met; the

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concessions were applied for and duly granted to Unigold.

The NFR property falls within the definition of a border area as defined by law 28-01. Pursuant to this law the NFR property, as well as the SFR property, is a tax-free and duty-free zone. Furthermore the Dominican State acknowledges that Unigold is entitled to receive whatever more favorable treatment may be granted in the future to another mining company that finds itself in the same technical and geological situation. Accordingly, the Dominican State agreed to grant equal treatment, including the same level of exemptions that may be granted for the Pueblo Viejo mine with regard to import duties on machinery, equipment and production facilities.

Fiscal Reserves are areas put aside by the Government because they consider that this particular area has either proven or potential mineral resources that it is in the country’s interest to study it prior to grant it on a special Contract. The Dominican state, been the constitutional owner of all the subsoil, can reserve these area according to articles 17, 18, 19 and 20 of the mining law of the Dominican Republic.

This area holds more than twelve mineral prospects that are at different stages of exploration. None of these represent any environmental liability to Unigold. All exploration permits have been obtained (those granted by the Mining Law for activities such as trenching, grid cutting, etc as well as special permit that allows access to military controlled border zones) with the exception of the “Declaración de Impacto Ambiental” (DIA) which has been applied for, but it is not necessary to have it for the early stages of any grass roots exploration program. This “Declaration of Environmental Impact” is not a complicated procedure for exploration activities. The D.I.A. is a descriptive inventory of the environmental conditions of the areas to be affected by exploration activities. It requires a listing of plant and animal species present in the area as well as potential damage to soils as well as to the surface and underground aquifers of the zone. Sampling or assaying is generally not required.

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Accessibility, Climate, Vegetation, Local Resources, Infrastructure, and Physiography

Accessibility and Physiography The main access to the NFR from Santo Domingo, capital of the Dominican Republic, is via the four lanes Highway No. 1 to Santiago for 150 kms, which at a normal speed takes around two hours. From Santiago, second largest city in D.R., to Restauración, there are two routes to follow, but both take approximately three hours. The first route is through Monte Cristi on the Atlantic North shore of this island, then turning South to Dajabón and proceeding southward via Santiago de la Cruz and Loma de Cabrera. Up to Dajabón, the road is a good two lane one. Beyond, it is not in good condition but does not require four wheel drive. The second route from Santiago is via Esperanza, Mao and Sabaneta to the village of Santiago de la Cruz and then Southward to Restauración. This route borders the Central Cordillera in a good stretch and takes more three hours to cover its 170 kms.

Figure 2. Access to the Neita Fiscal reserve from Santiago in Dominican Republic. Shown in blue the route of the author’s last visit during March 2008. Within the property, there are a reasonable number of 4 WD tracks that allows reaching within five kilometers in straight line from any place. However due to the ruggedness of the terrain access to some places are difficult and time consuming. The Neita property has a relieve characteristic of volcanic mountain ranges (Fig. 3). Steep slopes, deep valley and sharp crest are common. The elevation range from 460 m (a.s.l.) in the valley of Río Libon (UTM E: 212620E, UTM N:2132400) to 1,009 m (a.s.l.) in the peak of Cerro del Guano (UTM E: 223810E, UTM N:2134690).

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Figure 3. Regional relief of the NFR.

Climate

The Dominican Republic is hot and tropical, with little seasonal variation in temperatures, which average about 25°C. Seasons can, however, be determined by rainfall, with October to April being the rainy season on the north coast, while May to November is the wettest month in the south of the country. The driest area is the west. Cooler temperatures and less humidity are generally experienced between November and April, while the mountainous interior is always cooler than the rest of the country.

Regardless of season, the coolest area of the country is the Cordillera Central mountain region, around Jarabacoa and Constanza, where the average highs can hover around 16°C. The desert regions in the southwest of the country experience the highest average temperatures, at times soaring to over 40°C.

Figure 4. Rainfall/Temperature graphic for Santo Domingo in Dominican Republic.

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Tropical cyclones, such as tropical depressions, tropical storms, and hurricanes, occur on the average of once every two years in the Dominican Republic. The season for cyclones lasts from the beginning of June to the end of November; some cyclones occur in May and December, but most take place in September and October. Hurricanes usually occur from August through October. They may produce winds greater than 200 kilometers per hour and rainfall greater than 50 centimeters in a twenty-four-hour period.

Infrastructure and Local Resources The NFR is one of the least populated areas of the Dominican Republic. The Restauración municipality has a population of 7,800 inhabitants of which 33% is urban and 67% is rural. The main economic activity of the area is cattle ranching and timber cutting.

Transport to Restauración is regular and provided by small busses and cars. Electricity reaches the town of Restauración as part of the national grid. Water is plentiful due to the many rivers and streams in the area such as Artibonito and Neita Rivers.

Vegetation The vegetation is typical of mountain areas with coniferous (many are results of reforestations) dominating the higher part of the forest (Fig. 5). Broad leaves trees are at a lower elevation together with mountain palms and tree ferns. The vegetation close to the ground is composed of grass, lichens, moss, fungi, hepatics, orchids and ferns.

Figure 5. Typical vegetation at the NFR in Dominican Republic.

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History The first record of an organized exploration program in this area dates from the period 1965 to 1969. In December 1965 Mitsubishi International Corp. was granted for two years, an area of 7,700 square kilometers covering most of the Central Cordillera, all the way to the Haitian border, to prospect for porphyry copper deposits similar to those found in the neighboring island of Puerto Rico and Haiti.

During the first year, Mitsubishi took thousands of stream sediment samples to focus on individual anomalous areas. One of the selected areas corresponded to what is now the NFR.

During the second year, Mitsubishi selected an area of 145 km² that was called the Neita Prospect. Here they took 805 additional stream sediment samples, but only assayed for copper and molybdenum (Cu & Mo). Three smaller areas were then selected, Neita A (2.8 km²), Neita B (2.3 km²) and Neita C (2.7 km²), and soil sampling was done completing 587,186 and 220 soil samples respectively for the three selected areas in 100x100 and 50x50 m patterns. At the end of the second year program Mitsubishi dropped the undesired areas and applied for a new 20.5 km² concession under the Mining Law and carry on with its systematic exploration program.

During the third and fourth years, Mitsubishi completed and extensive geophysical program using Induced Polarization (IP) in a Dipole-Dipole array. The IP survey produced better drill targets in Neita B. The IP results in Neita A were not conclusive perhaps due to the extensive argillitization of this area. A drilling decision was made and 27 drill holes were completed (7 in Neita A and 20 in Neita B). No drilling was done in Neita C as the area was discarded.

The drilling found narrow veins carrying chalcopyrite, bornite and chalcosite with copper values ranging from 0.5% to 5.0% Cu in Neita A. In Neita B, copper sulphides and pyrite were found disseminated in andesites, diorites and porphyries and sulphide bearing quartz veins were located along the contact of the diorites with the porphyries.

The next report relates the work done by the D.G.M. in 1983 and was concentrated in the mineralized area of “El Corozo” along the Haitian border and adjacent to the Haitian prospect of “Mont Organisé”. A total of 270 stream sediment samples and 490 soil samples were taken in a 200x100 m. grid. The anomalies found were good for Cu and Zn, but low in precious metals.

In 1985, Rosario Dominicana drilled one stratigraphic hole at Cerro Candelones that intersected a stockwork, but recovery was so poor that no assays were obtained. Surface geology identified four areas (Cerro Candelones, Cerro La Piedra, Cerro Berro and El Corozo) and recommendations were made to continue the work in these prospects.

In 1990, Rosario Dominicana did detailed geological maping, took 1,308 soil samples, and excavated 78 trenches for a total of 2,968 meters of trenching at Cerro Candelones, Guano-Naranjo and El Montazo prospects.

A decision to start drilling Cerro Candelones was made and eight holes were completed for a total of 642 meters drilled. Assaying was done at Rosario Dominicana using fire assay with a detection limits of 50 ppb for gold. Only one hole (SC No. 3) showed an exciting first 16 meters grading 2.39 g/t Au in oxides. The silver values were usually much higher, but not economic at that year’s metal price.

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In September 1997, BRGM of France combined efforts with Rosario Dominicana and Geofitec, S.A. in a thirteen month exploration program sponsored by the European Community that produced a geological evaluation of the area and a pre-feasibility study of the Candelones deposit as well as an Environmental Impact Study for a possible open pit operation.

At the completion of the exploration program of 1997-98, a 6 volume prefeasibility study was done to international standards in 1998, on the Candelones deposit by BRGM of France. The author has not audited or verified the BRGM resource estimate and therefore does not certify that the BRGM resource estimate complies with NI 43-101. However this historical resource estimate as conducted by BRGM is relevant to the content of this report.

The Candelones deposit is located 9 km south of Restauración at an elevation of 600 meters (a.s.l.). It has a mineralized zone with a strike extent of 600 meters and a width of 300 meters (1,200 soil samples analyzed for Au and 30 element ICP within a 5.3 km2 area). The pre-feasibility data came from 14 trenches totaling 969 meters (307 samples analyzed for Au and 30 elements ICP) and 17 drill holes totaling 3000 meters (1,500 samples analyzed for Au and 30 elements ICP). The core from the drill holes was HQ size from surface to 100 meters depth and NQ size below 100 meters.

Sample preparation was undertaken at the Pueblo Viejo Mine and assayed at the BRGM laboratory in France with control samples being analyzed at Pueblo Viejo.

The mineralization is both in the form of oxides for the upper weathered zone near surface and a sulphide zone below the oxides. Two pulses of mineralization occurred but only the second one carries gold. The gold is present as inclusions in sphalerite and chalcopyrite.

The resource inventory was estimated for Candelones West from 11 vertical sections, spaced 30 meters apart, with each section being projected 15 meters on each side of the section and using the proprietorship software GDM of BRGM. Other parameters used were a cut off grade of 0.5 g/t Au and open pit exploitation with a pit depth of 100 meters. The calculated density of the oxide ore, sulphide ore, barren oxide rock and barren sulphide rock was calculated to be 2.23, 2.57, 2.28 and 2.62 respectively.

This defined a historical mineral reserve of probable and possible categories of two million tonnes grading 1.10 g/t ( 0.46 million tonnes grading 1.04 g/t gold and 1.58 million tonnes grading 1.11 g/t gold) and a stripping to ore ratio of 6:1.5 with a planned annual production of 300,000 tonnes. The BRGM group declared in their report that at the gold prices the Candelones deposit was uneconomic.

At the Candelones East deposit, the historical inferred mineral resource was estimated at three million tonnes grading 1 g/t Au.

After doing bench recovery tests (60% recovery) and considering the necessary capital investment and cash flow for the start up period (4 months), as well as considering a gold price below US$300.00 per ounce up to 2005, the Candelones project was not considered to be economically viable.

Also BRGM, in a 7 volume Pre-feasibility Report dated from 1998, considered the Candelones deposit as uneconomic.

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The historical resource was estimated by BRGM to international standards, but is not certified by the author to meet CIM Standards as defined in sections 1.3 and 1.4 of NI 43-101, as his mandate did not cover auditing or reviewing the reserves. The Company is not treating these estimates as current NI 43-101 defined resources and the historical estimate should not be relied upon. The Company also cautions that there is the risk that further exploration work, which the Company and their consultants intend to continue to carry our, will not result in the delineation of a current resource.

The pre-feasibility study showed that at pre 2000 gold prices (average $280 according to http://www.taxfreegold.co.uk/goldpricechart.html), these two deposits were uneconomic. The D.R. government through Rosario Dominicana has certified that their total exploration expenditure on the Neita and Sabaneta properties was the order of US$2,099,163.00. They also certified that the 1997 to 1998 exploration and pre-feasibility study on the Candelones deposit was completed at an expenditure of Can $1.8 million.

In October of 2002 Unigold started an exploration program of the NFR which continues this date. The initial program was conducted by the author and included mapping of the western and north part of the NFR as well as a geochemical survey. A total of 8 soil samples, 23 stream sediments, 11 lithogeochemical, 2 hydrogeochemical and 5 biogeochemical samples were taken (Figs. 6 – 11). Samples were analyzed at ACT Labs in Canada and confirmed the presence of anomalous copper and gold values.

Figure 6. Soil sampling of a limonitic horizon.

Figure 7. Stream sediment from an active creek.

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Figure 8. Lithogeochemical sample on an outcrop of vacuolar basalts.

Figure 9. Hydrogeochemical sample from an active river.

Figure 10. Biochemical sampling of ferns. This type of thin and "woody" fern grows exclusively in the vicinity of the alteration zones at Los Candelones target.

Figure 11. Biogeochemical sampling of ferns. This type of "normal" ferns are located everywhere, except for the areas of visual alteration. The author considered this a definitely geobotanic marker and recommended further studies and sampling.

The next exploration program started in 2003 and included regional and systematic geochemical survey, trenching and drilling. By the end of the same year the author completed a lineament analysis of the NFR. Some of the main results of the study are included in this report.

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Geological Setting

Regional Geology The Upper Cretaceous volcanoclastic Tireo formation essentially covers the entire NFR (Fig. 12). The Tireo belt extends for 290 km in a northwest-southeast direction along the grain of the island. This volcano sedimentary sequence was intruded by plutonic rocks that range from felsic to ultramafics and are thought to be related in the Neita area to the Loma de Cabrera batholith. This batholith is considered by some authors to be a layered intrusive and it is the only known source of platinum on the island. It is found by panning along with gold by the locals that call it white gold.

Figure 12. Regional geology of the NFR in Dominican Republic. The Tireo Fm. is divided in two members, an upper, more felsic member and a lower more mafic member. The upper member is composed of flows, pyroclastics and tuffs of dacitic composition as well as felsic dykes and some agglomerates. It is not uncommon to find andesite flows and dykes as well quartz and hornblende porphyries.

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The more mafic lower member is composed of basalts, andesitic basalts and espilites. The sequence is intruded by plutonic rocks such as tonalites and plagiogranodiorites.

A Cretaceous sedimentary (flysh) sequence is found to the south of the NFR and extends into Haiti in a north-westerly direction.

Two major structural trends are present in the area. The older is part of the grain of the island as a result of the early tectonics. This trend is NW-SE and most of the major faults on the island strike in this direction. Many of these faults are also thrust ones, which indicate a N.E. to S.W. compression of the island by movements along the actual transform faults that constitute the North Atlantic-Caribbean Plates boundary.

The younger trend is NE-SW and displaces the older trend. This younger fault pattern is thought to have conveyed the mineralizing hydrothermal solutions that formed the mineralization and deposits of the Tireo formation (Fig. 13).

Figure 13. General structural setting of Hispaniola, modified arter Maurrasse et al., 1982. Twelve mineralized areas have been identified so far in the NFR. Four of these show good copper values but low precious metals whereas the remaining seven are precious metals mineralization. All of these mineralization targets are elongated and appear to be fault controlled.

The company has concentrated its exploration efforts on the three most prospective targets.

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Local Geology

Los Candelones Area The Los Candelones area (Fig. 14) occurs in the southern part of the Neita property located on the western end of the Cretaceous volcanic belt that transects the Dominican Republic. Candelones is the best studied target within the NFR and falls within the NW-SE mineralized trend identified by the previous works in the area. It clearly shows the presence of chloritic-argilitic-siliceous alteration covered by an oxidation cap (not a typical gossan) of mostly hematite and limonite (Fig. 15). Host rocks are silicified andesite-dacites with dikes of more mafic units like basalts. Near to the southeast there is a rhyolitic intrusive that could have been the source of the metasomatic alteration and the mineralization.

Figure 14. Local geology and topography of Los Candelones area.

Figure 15. Typical chlorite-argilitic-siliceous alteration sequence topped by and oxidation cap at los Candelones.

Here the gold mineralization occurs on a hill, and is structurally controlled and occurs within north-northwest trending quartz veins, and kaolinized and silicified Cretaceous age felsic pyroclastic rocks which overly and flank dacite and dacitic porphyry rocks. Recent mapping of the imprint on more silicified units cut by trenches identified the 30° azimuth of some of the slickenside movement of the younger tectonic event (Fig. 16).

Figure 16. In the more silicified units it is possible to find evidence of the slickenside displacement of the mineralized zone oriented 30° and modifying the older faults.

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The gold mineralization at Los Candelones is a moderate sulphidation, epithermal vein system and occurs within a stock work associated with chalcopyrite, sphalerite, pyrite, galena, plus minor silver. The gold mineralization occurs within a 1,200 by 600 meter soil anomaly and coincident IP chargeability high which corresponds to sulphide mineralization.

The close spatial (and probably genetically) association of the gold mineralization to the chlorite-argilitic-siliceous alteration could be used to map similar zones in the area, both directly and through geochemical mapping.

Ferns are widely represented through out the target and they are not constrained to streams and valleys. These make them an excellent target for biogeochemical studies. As we mentioned before (see Figs. 10 – 11), there is a clear difference between the ferns growing over clearly altered zones, and those growing elsewhere. And in general, the vegetation on top of the altered zones in thinner and dryer. Another potentially excellent source for biogeochemical samples will be the thick bark of the trees in the area.

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El Corozo Area In the El Corozo area (Fig. 17), geological mapping and prospecting has outlined a 750 meter long by 75 meter wide, north-south trending topographic ridge formed by silicification and brecciation of the host mafic volcanic rocks situated adjacent to felsic pyroclastic rocks. The host north-south structure is considered to be a splay off a nearby regional north-west trending fault. The volcanic rocks are highly altered and show both copper and gold contents in soil anomalies.

Figure 17. Local geology and topography of El Corozo area. Immediately to the north in Haiti and immediately down slope of the El Corozo hill, a heavy mineral concentrate sample taken by the author while working for another company in Haiti returned a value of 840 g/t gold. Also immediately adjacent to the zone of silicification, in the valley to the east, a 2 km oblong target is interpreted by airborne geophysics to be a large hydrothermal alteration zone. A similar 2.5 km long hydrothermal alteration zone is located immediately to the south of the silicification zone and is centered on the northwest regional structure. A quartz keratophyre intrusive occurs adjacent to the fault and a 0.9 g/t gold grab sample was obtained from the base of the hill.

The elevated copper values obtained in altered and silicifed volcanic rocks and sediments from the core from the 4 drill holes on El Corozo Hill are indications of a large hydrothermal system and might suggest proximity to a porphyry system.

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Montazo-Guano Area The largest silicification and hydrothermal alteration zone occurs in the Montazo-Guano area, within the Neita property. This target trends east-west and has a length of about 3 km and a width of about 1 km (Fig. 18).

Figure 18. Local geology of the Montazo-Guano Area. Two separate northwest trending regional structures cut the target. Alteration may be controlled by two northeast-southwest secondary faults. Strong argillic alteration is enveloping the quartz veining. Low but consistent gold values averaging 0.3 g/t is widespread.

Four N-S trending lines, spaced 400 meters apart and totalling 8.1 line-kilometers of IP have been completed on the western end of the area. Preliminary evaluation of the IPs suggests a strong east-west trending chargeability high occurs just to the north of Guano Hill. This area requires detailed follow-up (Fig. 19).

Figure 19. Vertical gradient magnetics at the Montazo-Guano area.

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Deposit Types Three different types of mineralization and or mineral deposits are recognized in the NFR. These are “hot-spring-type”, vein type and pyrite-chalcopyrite disseminations classified as porphyry copper deposits.

The Hot-Spring type precious metal deposit is represented in the NFR area by the Candelones deposit. The 1998 BRGM-Rosario-Geofitec report considers the Candelones deposit as a typical low sulphidation (adularia-sericite alteration) gold deposit in a volcano-sedimentary sequence (Fig. 20). P. Geo. Daniel Danis from Unigld considers that the system was fractured and then tilted into its current position.

Figure 20. Schematic cross-section of an epithermal system similar to the one found at the NFR.

Vein type mineralization found in the Neita area carry sulphides in quartz. One of the problems encountered with this type of mineralization is that sometimes the surface veins cannot be followed at depth by drilling. This suggests that, in some cases at least, these are “sweats” instead of veins and would therefore be quartz segregations from the host rock due to digenesis or metamorphism. Gold mineralization is found to be associated with sulphides found in quartz and barite. Bornite and chalcocite are also found in the veins.

The third deposit type corresponds to porphyry copper mineralization. The only (partly) documented occurrence of this type is the Neita B mineralization where Mitsubishi drilled 20 holes for 2,887 meters drilled. Mitsubishi found lack of continuity in this mineralization.

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Hot-Spring Au-Ag Synonyms: (Epithermal) hot spring, sub aerial siliceous sinter.

Commodities: Au, (Ag, Hg).

Geological Characteristics Description: Auriferous chalcedonic or opaline silica and fine-grained quartz form veins, stockworks and matrix filling in breccias hosted by volcanic and, less commonly, sedimentary rocks. These are the uppermost parts of epithermal systems which develop mineralized siliceous caps a few metres to hundreds of metres below surface with subaerial siliceous sinter deposits at the water table and explosion breccias above.

Tectonic settings: Continental margin rifting and district-scale fracture systems with associated bimodal or low volume mafic to intermediate volcanism. Commonly in regions of strike-slip faulting with transform faults and transtensional basin margins. Also extensional tectonism with related caldera development and resurgence, flow-dome complexes and high-level subvolcanic intrusive activity.

Depositional environment (geological setting): Shallow parts of fossil geothermal systems. Hot springs deposit silica near the paleo groundwater table and as subaerial, pounded precipitates. Deeper fluids are channelled by permeable stratigraphic units, hydrothermal breccia bodies and faulted/fractured rocks. Subaerial volcanic centres including flow-dome or caldera complexes and related radial and ring fracture systems.

Age of mineralization: Tertiary and Quaternary are most common; some currently active hot springs. Hot spring sinters as old as Late Devonian have been described (Cunneen and Sillitoe, 1989).

Host and associated rock types: Intermediate or bimodal basaltic-rhyolitic volcanic rocks including volcanic flows, flow domes, tuffs and breccias; hydrothermal breccias and siliceous sinters. Any type of permeable or structurally prepared country rock can be mineralized, most commonly ash flow units and caldera-fill sediments. In some cases, serpentinized ultramafic and mafic rocks in major fault zones in areas of post-faulting volcanic activity are mineralized. Sedimentary rocks occur at Cinola and many other deposits.

Deposit morphology: Near-surface, lensoid hot spring deposits and planar lithologic replacement zones. Individual zones are up to hundreds of metres in two dimensions and tens of metres in the third. Underlying these are cone or wedge-like hydrothermal feeder systems with quartz stockworks and veins centred on regional-scale fault and fracture zones, or their splays. Locally phreatic and phreatomagmatic explosion pits formed at the paleosurface.

Texture/Structure: Generally very fine grained disseminated sulphides in silicified (opalized and chalcedonic) country rocks and silica sinter; hydrothermal breccias, quartz stockworks and banded to vuggy, sheeted, multiple-generation quartz- chalcedony veins. Hydrofracturing textures are common.

Ore mineralogy (Principal and subordinate): Pyrite, marcasite, gold, electrum; stibnite, sulphosalt minerals, realgar, cinnabar (cinnibar only near tops of deposits).

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Gangue mineralogy (Principal and subordinate): Quartz, chalcedony; opal, calcite, dolomite, barite. Strong silicification with quartz, chalcedony and opal in crustified, banded veins, sheeted veins and stockworks is characteristic in ores. Silica in some deposits contains abundant hydrocarbons that impart a characteristic brownish colour to the quartz.

Alteration mineralogy (Principal and subordinate): Multiple episodes of silicification to form veins and stockworks, and pervasive silicified host rocks adjacent to them, are typical. Country rocks containing the silicified zones have argillic and, less commonly, advanced argillic assemblages with quartz-kaolinite and rarely alunite. They are flanked, or underlain, by propylitic rocks with chlorite, Fe oxides, zeolites and minor adularia. Selenite, alunite and other sulphate minerals and native sulphur can be abundant locally near surface.

Weathering: Limonite (jarosite, hematite, and goethite) is locally prominent near surface in strongly oxidized deposits.

Ore controls: A key element at the McLaughlin deposit was the superposition of multiple generations of auriferous veinlets each carrying a small amount of gold (Lehrman, 1986).

Genetic model: Hydrothermal breccias and multiple generations of veins with calcite replacement by silica attest to boiling of hydrothermal fluids as an important ore-depositing mechanism. The boiling levels are related to the paleosurface and commonly have a surficial expression as active or paleo-hot springs. The deeper hydrothermal fluid systems, generally within 500 m of surface (paleosurface for older deposits); can be developed along active, regional high-angle faults and other volcanic and subvolcanic intrusion-related structures. The structures commonly cut or flank domes in flow-dome complexes.

Associated deposit types: Hot spring Hg, solfatara sulphur; epithermal Au-Ag, and placer Au.

Comments: Many deposits currently being exploited throughout the world have grades between 1 and 2 g/t Au and range from a few to tens of millions of tonnes in size. They are viable generally because the rocks are commonly strongly oxidized and the gold can be recovered by heap leaching methods. The siliceous sinters formed at or very near to the surface rarely contain economic mineralization. These deposits have a greater depth extent then hot spring mercury deposits. In their deeper parts they may grade into precious metal bearing and base metal epithermal veins.

Exploration Guides Geochemical signature: Au, Sb, As, Hg, Tl near surface, increasing Ag, Ba at depth; locally Ni, B, Li and W. The Ag/Au ratio varies from 1:1 at surface to 30:1 at a depth of a few hundred metres. Mineralized rocks can be strongly leached at surface. Notably absent are: Se, Te, F, Mo, Sn and Mn. Base metal content is relatively low, for example, common amounts are Cu <60 ppm, Pb <5 ppm and Zn <450 ppm.

Geophysical signature: Resistivity, VLF to identify faults.

Other exploration guides: Siliceous sinter can be used to identify the paleosurface; Hg mineralization may overlie deeper gold ores.

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Economic Factors Typical grade and tonnage: Mineralization tends to be low grade. Economically attractive bulk-mineable deposits contain >10 Mt of 1 to 2 g/t Au, or greater. High-grade veins and stockworks within the larger mineralized zones can be exploited by underground methods. The McLaughlin deposit, a superior discovery, contained initial reserves of 17.5 Mt with 5.2 g/t Au and about 16 g/t Ag, including a sheeted vein zone with 2.45 Mt with 9.15 g/t Au. Reserves for Cinola are about 31 Mt with 2.19 g/t Au; the deposit has a feeder zone at depth that contains material containing in excess of 100 g/t Au.

Economic limitations: Refractory primary ore in deposits that lack significant oxidation renders many of the lower grade deposits uneconomic.

Importance: Individual deposits are attractive economically, for example, the McLaughlin mine in California.

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Vein Type Synonyms: Mother Lode veins, greenstone gold, Archean lode gold, mesothermal gold-quartz veins, shear-hosted lode gold, low-sulphide gold-quartz veins, lode gold.

Commodities: Au (Ag, Cu, Sb).

Geologic characteristics Description: Gold-bearing quartz veins and veinlets with minor sulphides crosscut a wide variety of host rocks and are localized along major regional faults and related splays. The wallrock is typically altered to silica, pyrite and muscovite within a broader carbonate alteration halo. Tectonic settings:

Phanerozoic: Contained in moderate to gently dipping fault/suture zones related to continental margin collisional tectonism. Suture zones are major crustal breaks which are characterized by dismembered ophiolitic remnants between diverse assemblages of island arcs, subduction complexes and continental-margin clastic wedges.

Archean: Major transcrustal structural breaks within stable cratonic terranes. They may represent remnant terrane collisional boundaries.

Depositional environment (geological setting): Veins form within fault and joint systems produced by regional compression or transpression (terrane collision), including major listric reverse faults, second and third-order splays. Gold is deposited at crustal levels within and near the brittle-ductile transition zone at depths of 6-12 km, pressures between 1 to 3 kilobars and temperatures from 200° to 400°C. Deposits may have a vertical extent of up to 2 km, and lack pronounced zoning.

Age of mineralization: Mineralization is post-peak metamorphism (i.e. late syncollisional) with gold-quartz veins particularly abundant in the Late Archean and Mesozoic.

Phanerozoic: In the North America Cordillera gold veins are post-Middle Jurassic and appear to form immediately after accretion of oceanic terranes to the continental margin. In British Columbia deposits are mainly Middle Jurassic (~ 165-170 Ma) and Late Cretaceous (~ 95 Ma). In the Mother Lode belt they are Middle Jurassic (~ 150 Ma) and those along the Juneau belt in Alaska are of Early Tertiary (~56-55 Ma).

Archean: Ages of mineralization for Archean deposits are well constrained for both the Superior Province, Canadian Shield (~ 2.68 to 2.67 Ga) and the Yilgarn Province, Western Australia (~ 2.64 to 2.63 Ga).

Host and associated rock types: Lithologically highly varied, usually of greenschist metamorphic grade, ranging from virtually undeformed to totally schistose.

Phanerozoic: Mafic volcanics, serpentinite, peridotite, dunite, gabbro, diorite, trondhjemite/plagiogranites, graywacke, argillite, chert, shale, limestone and quartzite, felsic and intermediate intrusions.

Archean: Granite-greenstone belts - mafic, ultramafic (komaitiitic) and felsic volcanics, intermediate and felsic intrusive rocks, graywacke and shale.

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Deposit morphology: Tabular fissure veins in more competent host lithologies, veinlets and stringers forming stockworks in less competent lithologies. Typically occur as a system of en echelon veins on all scales. Lower grade bulk-tonnage styles of mineralization may develop in areas marginal to veins with gold associated with disseminated sulphides. May also be related to broad areas of fracturing with gold and sulphides associated with quartz veinlet networks.

Texture/Structure: Veins usually have sharp contacts with wallrocks and exhibit a variety of textures, including massive, ribboned or banded and stockworks with anastamosing gashes and dilations. Textures may be modified or destroyed by subsequent deformation.

Ore mineralogy (Principal and subordinate): Native gold, pyrite, arsenopyrite, galena, sphalerite, chalcopyrite, pyrrhotite, tellurides, scheelite, bismuth, cosalite, tetrahedrite, stibnite, molybdenite, gersdorffite (NiAsS), bismuthimite (Bi2S2), tetradymite (Bi2Te2S).

Gangue mineralogy (Principal and subordinate): Quartz, carbonates (ferrodolomite, ankerite ferromagnesite, calcite, siderite), albite, mariposite (fuchsite), sericite, muscovite, chlorite, tourmaline, graphite.

Alteration mineralogy: Silicification, pyritization and potassium metasomatism generally occur adjacent to veins (usually within a metre) within broader zones of carbonate alteration, with or without ferro dolomite veinlets, extending up to tens of metres from the veins. Type of carbonate alteration reflects the ferromagnesian content of the primary host lithology; ultramafics rocks - talc, Fe-magnesite; mafic volcanic rocks - ankerite, chlorite; sediments - graphite and pyrite; felsic to intermediate intrusions - sericite, albite, calcite, siderite, and pyrite. Quartz-carbonate altered rock (listwanite) and pyrite are often the most prominent alteration minerals in the wallrock. Fuchsite, sericite, tourmaline and scheelite are common where veins are associated with felsic to intermediate intrusions.

Weathering: Distinctive orange-brown limonite due to the oxidation of Fe-Mg carbonates cut by white veins and veinlets of quartz and ferro dolomite. Distinctive green Cr-mica may also be present. In the overburden we can find abundant quartz floats.

Ore controls: Gold-quartz veins are found within zones of intense and pervasive carbonate alteration along second order or later faults marginal to transcrustal breaks. They are commonly closely associated with, late syncollisional, structurally controlled intermediate to felsic magmatism. Gold veins are more commonly economic where hosted by relatively large, competent units, such as intrusions or blocks of obducted oceanic crust. Veins are usually at a high angle to the primary collisional fault zone.

Phanerozoic: Secondary structures at a high angle to relatively flat-lying to moderately dipping collisional suture zones.

Archean: Steep, transcrustal breaks; best deposits overall are in areas of greenstone.

Genetic model: Gold quartz veins form in lithologically heterogeneous, deep transcrustal fault zones that develop in response to terrane collision. These faults act as conduits for CO2-H2O-rich (5-30 mol% CO2), low salinity (<3 wt% NaCl) aqueous fluids, with high Au, Ag, As, (±Sb, Te, W, Mo) and low Cu, Pb, Zn metal contents. These fluids are believed to be tectonically or seismically driven by a cycle of pressure build-up that is released by failure and pressure reduction followed by sealing and repetition of the process (Sibson et al., 1988). Gold is

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deposited at crustal levels within and near the brittle- ductile transition zone with deposition caused by sulphidation (the loss of H2S due to pyrite deposition) primarily as a result of fluid-wallrock reactions; other significant factors may involve phase separation and fluid pressure reduction. The origin of the mineralizing fluids remains controversial, with metamorphic, magmatic and mantle sources being suggested as possible candidates. Within an environment of tectonic crustal thickening in response to terrane collision, metamorphic devolitization or partial melting (anatexis) of either the lower crust or subducted slab may generate such fluids.

Associated deposit types: Gold placers, sulphide manto Au, silica veins, and iron formation Au in the Archean.

Comments: These deposits may be a difficult deposit to evaluate due to "nugget effect", hence the adage, “Drill for structure, drift for grade”. These veins have also been mined in British Columbia as a source of silica for smelter flux.

Exploration Guides Geochemical signature: Elevated values of Au, Ag, As, Sb, K, Li, Bi, W, Te and B ± (Cd, Cu, Pb, Zn and Hg) in rock and soil, Au in stream sediments.

Geophysical signature: Faults indicated by linear magnetic anomalies. Areas of alteration indicated by negative magnetic anomalies due to destruction of magnetite as a result of carbonate alteration.

Other exploration guides: Placer gold or elevated gold in stream sediment samples is an excellent regional and property-scale guide to gold-quartz veins. Investigate broad 'deformation envelopes' adjacent to regional listric faults where associated with carbonate alteration. Alteration and structural analysis can be used to delineate prospective ground. Within carbonate alteration zones, gold is typically only in areas containing quartz, with or without sulphides. Serpentinite bodies, if present, can be used to delineate favourable regional structures. Largest concentrations of free gold are commonly at, or near, the intersection of quartz veins with serpentinized and carbonate-altered ultramafic rocks.

Economic Factors Typical grade and tonnage: Individual deposits average 30 000 t with grades of 16 g/t Au and 2.5 g/t Ag (Berger, 1986) and may be as large as 40 Mt. Many major producers in the Canadian Shield range from 1 to 6 Mt at grades of 7 g/t Au (Thorpe and Franklin, 1984). The largest gold-quartz vein deposit in British Columbia is the Bralorne-Pioneer which produced in excess of 117 800 kilograms of Au from ore with an average grade of 9.3 g/t.

Economic limitations: These veins are usually less than 2m wide and therefore, only amenable to underground mining.

Importance: These deposits are a major source of the world’s gold production and account for approximately a quarter of Canada’s output. They are the most prolific gold source after the ores of the Witwatersrand basin.

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Copper Porphyde Porphyry copper deposits provide more than 50% of the World’s copper from over 100 producing mines.

Form Typical porphyry copper deposits are cylindrical, stock-like composite masses having elongate outcrops, 1.5 x 2 km in diameter, with an outer shell of medium to coarse grained equigranular rock and a core of similar composition that is porphyritic.

Petrology of the Host Rocks The most common ore hosts are felsic plutonic rocks ranging in composition from quartz monzonite to tonalites.

Hydrothermal Alteration Lowell and Guilbert (1970) were the first to document alteration associated with porphyry copper deposits. They suggested that four alteration halos were often present, roughly centered on the porphyry stock (Fig.21):

Figure 21. Typical hydrothermal alteration zoning patterns in a copper porphyry deposit.

Potassic Zone. Always present. Characterized by secondary K-spar, biotite and/or chlorite replacing primary K-spar, plagioclase, and mafics. Minor sericite may be present.

Phyllic Zone. Not always present. Characterized by vein quartz, sericite, pyrite, and minor chlorite, illite and rutile replacing K-spar and biotite.

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Argillic Zone. Not always present. Characterized by the clay minerals kaolinite and montmorillonite with minor disseminated pyrite. Plagioclase is strongly altered, K-spar remains unaffected, and biotite is usually chloritized.

Propylitic Zone. Always present. Characterized by chlorite, calcite, and minor epidote. Mafic minerals are highly altered and plagioclase less so.

At depth all zones are thought to merge into a single quartz-K-spar-sericite-chlorite assemblage.

Hypogene Mineralization Ore is mostly found in three settings:

• totally within the host stock;

• partially in the stock and partially within the country rocks;

• Within the country rocks only.

The ore body itself is usually a steep walled cylinder, but tabular to flat conical deposits are also known. The ore occurs as disseminations or stockwork veins with typical grades of 0.6% Cu and 0.2 % Au with lesser silver, zinc, and molybdenum. Mineralization is strongly zoned. The zones have been characterized as follows (Fig. 22):

Figure 22. Principal zones of sulphide mineralization for porphyry copper deposits. Inner Zone. Coincides with the potassic alteration zone. Generally, it is several hundred meters in diameter. Relatively low sulfide content, but molybdenum is higher than anywhere else in the deposit. Pyrite is 2-5% and py/cp ratio is about 3:1. Mineralization is disseminated rather than stockwork.

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Ore Zone. – The ore zone lies roughly at the potassic-phyllic boundary. Pyrite is 5-10% and py/cp ratio is about 2.5:1. The main ore mineral is chalcopyrite that occurs as stockwork veinlets. Other ore minerals include bornite, enargite, and chalcocite.

Pyrite Zone. It includes much of the phyllic and argillic (if present) zones. Pyrite is quite high (10-15%) and py/cp ratio is about 15:1. Mineralization occurs both as veins and disseminations. Many additional exotic sulfide phases begin to show up.

Outer Zone. It coincides with the propylitic zone. Pyrite is minor and copper mineralization is rare. Sphalerite and galena are common, but usually sub-ore grade. Mineralization approaches true veins.

Breccia Zones. They are often major ore carriers in the porphyry system. The breccia zones have very high grades (2-5% Cu) and can occur both in the porphyry and in the country rock. They may be formed by hydrothermal activity, gravitational collapse, or late explosive volcanism.

Vertical Extent of Porphyry Bodies It has been suggested that porphyry deposits are associated with small, high level stocks and subaerial calc-alkaline volcanism. Thus, the pluton itself is overlain by a stratovolcano (Fig. 23). Propylitic alteration extends upward into the volcano. Other alteration zones close on themselves and die out in the subsurface. In general, this model attempts to show that the porphyry copper deposit is part of a larger system that includes higher-level epithermal precious metal deposits.

Figure 23. Model of the vertical extent of porphyry bodies.

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Genesis The most striking feature of a typical porphyry system is its size. The hydrothermal solutions permeate not only the parent intrusive, but also the country rock. It is thought that the host intrusives are emplaced at shallow depth (0.5-2 km). As crystallization of the intrusive begins, the vapor pressure in the magma chamber rises, as does the streaming of incompatible elements into the vapor phase. When the vapor pressure exceeds the confining pressure of the overlying rocks, retrograde boiling ensues. A rapidly boiling liquid separates from the silicate melt, eventually overcoming the tensile strength of the rock.

This causes the extensive stockwork brecciation. (Example: water at 2 Kb pressure and 5000C would increase in volume by at least 10% due to boiling). Further, boiling is an endothermic reaction requiring heat that is taken up from the magma as the escaping vapor expands, thus rapidly lowering the temperature of the magma chamber and producing the central porphyritic textured intrusive body.

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Mineralization More than ten mineralized areas have been identified within the NFR. At least four mineralized areas (El Corozo, Neita A, Neita B and Cerro Berro) indicated a high copper potential with low precious metal values. Seven other prospects (Candelones West, Candelones East, Montazo, Cerro Naranjo, Cerro La Piedra, Cerro Guano and Mariano Cestero) have been under study at different times with an exploration emphasis in precious metals.

Two types of mineralization are generally recognized in the NFR area for precious metals. The first type shows fine-grained disseminated pyrite with rare pyrrhotite and chalcopyrite but lacks gold. The second type carries sulphides such as chalcopyrite, sphalerite, pyrite and galena with gold and silver contained in the sulphides (Fig. 24).

Figure 24. Porphyritic andesite with gold-bearing sulphides and chalcopyrite. At the Candelones West deposit, the BRGM group recognized two mineralizing events and define them as:

First mineralizing event: Pervasive fine-grained pyrite without gold with rare inclusions of chalcopyrite and pyrrhotite.

Second mineralizing event: Stockwork containing chalcopyrite, sphalerite, pyrite, galena plus gold and silver. Four different mineral assemblages are recognized in the stock- work.

a)- Quartz +/- barite, laumontite

b)- Quartz +/- carbonate + barite

c)- Quartz + opaques

d)- Quartz + opaques + microphyllite

43

As frequently happens in the tropics, an oxide type of mineralization usually forms on top of the original sulphide (Fig. 25). It is usually formed by limonite, hematite and gohetite, among other iron oxide minerals. Sometimes, it develops to form a classic gossan that can contain even VG.

Figure 25. Typical oxidation cap formed on top of the original sulphide mineralization within the NFR in Dominican Republic.

Other secondary minerals found in the area are malachite, azurite and other copper related minerals (Fig. 26).

Figure 26. Malachite and azurite showing from the northern part of the NFR in Dominican Republic.

44

At the top of the epithermal system we can also find barite mineralization, frequently accompanied by manganese crusts (Fig. 27).

Figure 27. Barite veinlets with abundant manganese at the top of Los Candelones area.

45

Exploration In the period covered by this report several exploration campaigns using different exploration methods have been completed. The 252.2 km2 property has been subject to grab sampling, trenching, an extensive soil sampling, stream sediment sampling and airborne and ground geophysics. Each of these items will be described and summarized individually.

Grab sampling Due to its nature, grab sampling always imply a sampling bias, and therefore the reader should understand that many of these samples are taken from outcrops showing interesting alteration patterns or direct mineralization.

A total of 2298 grab samples were collected from dacite and rhyodacite with moderate to strong argilic alteration on the NFR during the period covered by this report. Of these total, 99 graded above 1g/t Au with the highest value being 22 g/t Au. Thirty-six samples greater than 1g/t Au were collected from an outcrop or subcrop and can be reliably classified as gold showings.

Gold bearing rocks are mostly clay altered dacite-rhyodacite but in the western portion of the Neita property, near Corozo, gold was found in a rock described as a felsic intrusive. Additionally gold in quartz veins (3.7g/t Au) were also reported near Corral de los Mangos, 4 km west of the town of Restauración (UTM E: 213005, UTM N: 2137221).

The highest concentration of gold showings occurs in the Juan del Bosque area, 1.7 km east of Cerro del Guano. Here 11 outcrop samples yielded gold values greater than 1g/t and a maximum value of 22g/t within a 7.6 hectares area.

Geophysics

IP An induced polarization (IP) survey was conducted on three areas of the Neita property in 2004-2005. The work was conducted by JVX limited of Richmond Hill, Ontario, Canada under the supervision of Chris Hale. Some 35 lines were surveyed for a total of 44.1 km.

A total of 22 lines for an extension of 21km were surveyed in a north-south direction on the Candelones project. The results confirmed the north-dipping attitude of the mineralized zone and demonstrated a strong correlation between coincident high-chargeability and high-resistivity anomalies to gold mineralization. It is believed that both disseminated sulphides (high chargeability) and silicification (high resistivity) are prime targets for gold mineralization. One or the other of these variables alone does not correlate well with gold mineralization. The IP chargeability profiles for Candelones are shown in Fig. 28.

46

Figure 28. : Los Candelones IP chargeability profiles.

The Montazo-Guano area was subject to 17.25 km (over 9 lines) of IP. Lines were run in a north-south direction and were spaced 400m apart. Results indicate chargeability profiles which trend east-west in the northern portion of the survey area (Fig. 29). The survey provided valuable exploration information which currently being used to design a potential drilling campaign in 2008.

Figure 29. Montazo-Guano IP chargeability profiles on top of regional geology.

47

Finally, 4 lines of IP for 5.85 km were conducted, in an east-west direction on the Corozo project in the northwest portion of the Neita property. The survey indicates a broad area of chargeability at depth

Fugro DIGHEM Survey A DIGHEM airborne geophysical survey was flown over the Neita property form April 30th to June 1st, 2007. The purpose of the survey was to detect zones of conductive mineralization and to provide information that could be used to map the geology and structure of the property. This survey was conducted by Fugro Airborne Surveys using a DIGHEM multi-coil, multi-frequency electromagnetic system, supplemented by a high sensitivity caesium magnetometer. The information from these sensors was processed to produce maps that display the magnetic and conductive properties of the survey area. A GPS electronic navigation system ensured accurate positioning of the geophysical data with respect to the base maps.

No significant EM anomalies were identified on the Neita property but the survey has proved to be a very valuable mapping tool. It has confirmed the NW-SE structural trend of the Neita property and has helped identify or extend important faults. The Total Magnetic Field data and Calculated Vertical Gradient have particularly useful for regional mapping. The survey was also used to identify the magnetic and resistivity signatures of known gold zones, such as Candelones, and then to identify similar areas elsewhere on the property.

As expected the area around Cerro de los Candelones has a low magnetic signature due to demagnetization of propylitic zones by argilic alteration overprint) and the survey has allowed the identification of a much larger area of low Total Magnetic Field surrounding the known mineralized zone. The prospective exploration area surrounding the Candelones deposit can now be extended 2.5km to the west.

Ground magnetics A ground magnetic survey was conducted by Unigold staff on the Los Candelones project in 2006 (Fig. 30). A GEM Systems GSM-19T proton magnetometer was used to cover 211 hectares with 50m line spacing and 12.5m between stations.

The results of the survey indicate a strong correlation between low magnetic areas and gold mineralization. The figure below shows a map of the results of the magnetic survey over the topographic map of the Candelones area.

Figure 30. Candelones ground magnetic survey. Red is high magnetic, blue is low magnetic.

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Geochemistry

Soil sampling An extensive soil sampling campaign was conducted on the Neita property in 2007 (Fig 31). A total of 9,538 samples were collected and analysed for gold and 31 element ICP scan. Sampling was generally conducted with a 200m line space with 50m between samples. However a tighter spacing (100m lines, 50m between samples) was used on the Candelones deposit and on the Noisy and Jimenez showings.

Figure 31. Gold in soil anomalies. Results from the soil sampling project have proven to be a valuable exploration tool and has allowed Unigold Inc. to discover several gold showings. These include the Juan del Bosque showing which graded up to 22g/t Au in rock chip samples, 5g/t Au over 5m and 1g/t Au over 22m in trenches and 1g/t Au over 30m in drill hole JB07.

Other significant showings discovered form gold in soil anomalies include Candelones Sur-Oeste which includes 0.4 g/t Au over 79m and 0.64 g/t Au over 33m in trenches and the Lomita Piña showing where 7 samples above 1g/t Au were collected, including four from outcrops.

49

Stream sediment sampling A total of 528 stream sediments were collected across the Neita property and assayed for gold and 31 elements ICP scan.

The top 10-20cm of stream sediment is discarded to avoid high Fe and Mn in oxide coatings. Coarse sediment is sieved to minus 150µm mesh, coarse fragments are discarded. Samples are stored in Kraft-paper bags which are themselves inserted in plastic bags.

Figure 32 shows all the samples collected on the Neita property. A total of 26 samples assayed above 100ppb Au. These highly anomalous samples are concentrated near the Corozo project and near the Jimenez project.

Figure 32. Neita stream sediment. Red stars indicated Au>100ppb.

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Trenching Trenching was conducted in 5 areas on the Neita property during the period covered by this report (Fig. 32). A total of 171 trenches were dug and 4,837 samples collected.

Figure 33. Mapping a trench at the NFR property. Trenches are dug using a mechanized excavator to a maximum depth of one meter. The trenches are then cleaned by hand using shovels before being sampled. This is done to avoid contamination. Samples are collected along one wall of the trench at 6cm from the bottom of the trench using hand picks. Samples are bagged and tagged on site by Unigold personnel. The trench results are summarized in Table 1. Table 1. Significant intersections from the trenches at the NFR.

Project # of trenches # of samples Significant intersections

TC42 38.4g/t Au over 13mTC17 2.6g/t Au over 19m

TC619B 2.3g/t Au over 47mTC630 1.8g/t Au over 57m

Poso Negro-Jimenez 21 268 NSV

TR-JB-01 6.2g/t Au over 5m TR-JB-02 1g/t Au over 23m

Corozo 44 734 TCO-28 1.6g over 1m

Noisy 2 26 TR01 0.3g/t Au over 18m

Candelones 93 2779

Juan del Bosque 11 1121

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Drilling During the period covered in this report 86 holes were drilled on the Neita property for a total of 13,323 m. Most of the drilling activity took place on the Candelones project (73 holes, 11,775.5m), but 8 holes were also drilled on the Juan del Bosque project in the eastern part of the Neita property near Cerro del Guano and 5 holes (541m) at the Corozo project.

Most of the holes were drilled using a Versadrill Kmb 4 with an NQ diameter core setup (Fig. 34). Since November 2007 an Atlas-Copco DIAMEC U6 drill, also using NQ core, was added (Fig. 35). Drilling is by contract but all equipment is owned by Unigold Inc.

Figure 34. Versadrill Kmb 4 with an NQ diameter core setup drilling currently at Candelones.

Figure 35. Atlas-Copco DIAMEC U6 drill, also using NQ core at Candelones.

Candelones Seventy-three holes for a total of 11,775.5m were drilled on the Candelones project between September 2003 and January 2008 with a one year hiatus in 2005. A complete list of these holes, including collar locations and some significant intersections are available in tables 2 and 3. The location of the holes is shown in Fig. 36.

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Table 2. Collar of the holes drilled at Los Candelones.

Hole_ID UTM E UTM N Atl. (m) Azimuth Dip (deg) Total Depth (m) SC26 216618 2131697 595 225 -60 97.5

SC27 216576 2131697 600 225 -60 95.0

SC28 216549 2131684 600 225 -60 120.0

SC29 216566 2131747 583 225 -60 111.0

SC30 216528 2131792 571 225 -60 120.0

SC31 216442 2131875 550 225 -60 119.5

SC32 217059 2131440 497 270 -60 109.0

SC33 217078 2131366 498 270 -60 100.0

SC34 217081 2131329 494 270 -60 77.0

SC35 217045 2131422 503 225 -60 63.0

SC36 216603 2131790 555 225 -60 150.0

SC37 216639 2131746 576 225 -60 153.0

SC38 216530 2131726 594 225 -60 53.5

SC39 216585 2131733 582 225 -60 150.0

SC40 216653 2131699 590 225 -60 158.0

SC41 216541 2131775 575 225 -60 154.0

SC42 216671 2131672 593 225 -50 140.0

SC43 216681 2131730 575 225 -50 147.0

SC44 216672 2131767 560 225 -50 161.0

DC45 216698 2131633 603 225 -58 80.5

DC46 216754 2131630 585 225 -64 127.0

DC47 216804 2131607 570 225 -66 118.8

DC48 216855 2131591 558 225 -62 161.0

DC49 216899 2131587 544 225 -64 142.9

DC50 216926 2131618 528 225 -63 160.0

DC51 216877 2131634 529 225 -63 181.0

DC52 216836 2131646 549 225 -61 141.5

DC53 216730 2131664 579 225 -63 190.0

DC54 216717 2131710 573 225 -62 188.5

DC55 216761 2131688 567 225 -63 170.6

DC56 216793 2131667 567 225 -62 187.0

DC57 216842 2131696 547 225 -62 184.0

DC58 216809 2131730 548 225 -60 187.0

DC59 216780 2131769 537 225 -60 70.5

DC60 216858 2131543 571 225 -60 204.0

DC61 216880 2131524 562 225 -60 202.5

DC62 216926 2131553 549 225 -60 201.5

DC63 216957 2131584 525 225 -60 201.0

DC64 216958 2131642 513 225 -60 220.5

DC65 216904 2131660 523 225 -60 217.5

DC66 216865 2131683 535 225 -60 214.5

DC67 216872 2131717 533 225 -60 244.5

DC68 216423 2131704 583 225 -60 173.5

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Hole_ID UTM E UTM N Atl. (m) Azimuth Dip (deg) Total Depth (m)

DC69 216392 2131676 583 225 -60 223.0

DC70 216452 2131678 602 225 -60 205.0

DC71 216392 2131676 583 45 -60 50.5

DC72 216392 2131676 583 120 -50 92.0

DC73 216300 2131719 547 120 -50 47.5

DC74 216300 2131719 547 120 -50 203.5

DC75 216363 2131648 588 270 -60 89.5

DC76 216267 2131694 550 120 -50 158.5

DC77 216340 2131676 574 270 -60 91.0

DC78 216363 2131648 588 225 -60 190.2

DC79 216340 2131676 574 225 -60 143.5

DC80 216424 2131647 601 270 -60 156.0

DC81 216424 2131647 601 225 -60 56.0

DC82 216383 2131613 602 225 -60 203.5

DC83 216329 2131608 580 225 -60 78.0

DC84 216329 2131608 580 225 -60 188.5

DC85 216298 2131647 561 225 -60 173.5

DC86 216293 2131593 559 225 -60 196.0

DC87 216258 2131607 555 225 -60 12.0

DC88 216472 2131630 622 225 -60 107.7

DC89 216615 2131618 618 225 -60 214.0

DC90 216783 2131561 602 225 -60 255.5

DC91 216812 2131530 597 225 -60 201.0

DC92 216853 2131505 567 225 -60 205.5

DC93 216754 2131415 551 225 -60 198.0

DC94 216712 2131459 567 225 -60 210.0

DC95B 216838 2131745 533 225 -60 115.5

DC96 216746 2131719 550 225 -60 232.0

DC97 216716 2131748 553 225 -60 447.0

DC98 216746 2131791 539 225 -60 280.5

DC99 216779 2131766 538 225 -60 265.5

DC100 216707 2131804 542 225 -60 303.0

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Table 3. Significant intersections from the holes drilled at Los Candelones.

Hole_ID Significant assays

Au ppb over from-to including over from-to

SC26 712 65m 24-89m

SC27 1701 67m 0-67m 4878 19m 44-63

SC29 2091 61m 39-100m

6899 10m 78-88m

SC32 518 34 0-34m

SC34 551 9m 0-9m

SC35 1509 48m 0-48m 1924 19m 0-19

SC36 1563 26m 88-114 8545 2m 96-98m

SC37 1227 107m 38-145m

4043 25m 54-79m

SC39 1119 36m 21-57m

524 32m 82-114m

1951 5m 98-103m

SC40 1080 82m 38-120m

1595 27m

SC41 690 10m 0-10m

SC42 818 20m 0-20m

823 57m 30-87m 1526 6m 65-71m

SC43 723 79m 56-135m

1354 28m 101-129

SC44 598 70m 82-152m

2923 4m 106-110m

DC45 510 22 0-22m

860 48.5m 32-80.5 2129 5m 56-61m

DC46 1775 63m 12-75m 3699 18m 19-37

DC47 606 28m 0-28m

DC48 635 16m 32-48m

DC49 1261 16m 37-53m

DC50 787 6m 49-55m

DC51 553 20m 52-72m

DC52 842 33m 54-87m 10000 1m 80-81m

DC53 415 34m 0-34m

DC54 808 55m 62-117m

1270 22m 88-110m

DC55 410 68m 35-103m

DC56 262 69m 23-92m

DC57 712 33m 90-123m

DC58 728 37m 114-151m

1501 12m 120-132

DC59 349 35m 0-35m

DC61 288 35m 0-35m

562 7m 195-202m

DC62 479 26m 0-26m

DC65 1381 15m 60-75m

DC66 928 19m 90-109m

330 17m 123-150m

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Hole_ID Significant assays

Au ppb over from-to including over from-to

DC67 377 55m 135-190m

2814 3m 160-163

DC69 244 16m 0-16m

DC70 710 13m 40-53m 4470 1m 49-50m

DC71 399 16m 0-16m

DC72 454 20m 27-47m

DC78 1280 14m 10-34m 2372 8m 25-33m

DC80 877 63m 0-63m 16600 0.5m 44-44.5m

12600 1m 61-62m

DC81 489 51m 0-51m

DC82 1288 25 0-25m 18700 1m 16-17m

DC88 698 27m 0-27m

DC89 825 41 0-41m 4259 1m 7-8m

1764 5m 36-41m

DC90 723 35m 18-53 1375 5m 20-25m

DC91 805 29m 0-28.5m

DC94 740 38m 0-38m

DC95B

DC96 660 75m 68-143m

1273 8m 93-101m

1147 9m 128-137m

DC97 848 78m 99-171 3777 7m 118-125

DC98 802 103m 125-228m

1211 39m 180-219m

1198 19m 135-154m

24000 1m 213-214m

DC99 462 34m 117-151m

DC100 891 88m 118-206m

4249 6m 128-134m

1071 61m 128-189m

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Figure 36. Location of the drill holes at Los Candelones. Gold mineralization at Candelones can be divided into an upper oxide zone, 15-35m thick and an underlying sulphide zone which varies in thickness from a few meters up to 100m.

Thorough drilling of the oxide zone has not been undertaken therefore the available gold grades for this zone comes from NQ core drilling that was intended to intercept the deeper sulphide mineralization. Recuperation in the oxide zone using NQ core is generally poor, especially in the top 10m.

The sulphide mineralized zone at Candelones is assumed to be planar with a northwest trend and a 40-50 deg. dip towards the northeast. In order to intercept the mineralized zone as close as possible to the true width the drill holes on Candelones are systematically oriented towards the southeast (225 deg.) with a dip of -60 deg. It is estimated that true thickness of the mineralized zone is 90-95% of drilled thickness. Holes drilled in a different direction than the one stated above were either completed prior to the period covered in this report or were short exploratory holes testing specific hypotheses.

Gold mineralization at Candelones is characterized by wide intervals of low grade rock with punctual high grade intersections. The low grade background (100-800ppb Au) is associated with fine disseminated pyrite and pervasive illite +/- silica alteration. The high grade gold values (>2 g/t Au, up to 46g/t Au) occur in quartz-rich veins with sphalerite-chalcopyrite-enargite.

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The angle of the veins to the core axis are variable but generally greater than 70 deg. indicating that drilling direction is close to optimal.

The highest grades encountered in drilling occur along the northern slope of Cerro de los Candelones where mineralization is continuous for at least 300m along strike and to a depth of 175m. Drilling is now proceeding to test the zone at depth. This zone, referred to as Candelones West in the BRGM resource calculation, is open to the NW and at depth. Drilling along strike towards the SW did not return significant results and it assumed that a NE trending dextral fault offsets this mineralized zone.

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Juan del Bosque The Juan del Bosque showing is part of the Guano-Montazo project, located 9 km ESE of the town of Restauración. Eight holes for 1016.5m were drilled in the area from November, 2007 to the end of January, 2008 and the drilling campaign is ongoing at the time this report is being written. Holes were completed using a Versadrill Kmb 4 drill using an NQ diameter core setup. A complete list of these holes, including collar locations and some significant intersections are available in tables 4 and 5. The location of the holes is shown in Fig. 37. Table 4. Collar of the holes drilled at Juan del Bosque. Hole_ID

UTM E UTM N Atl. (m) Azimuth Dip (deg)

Total Depth

(m) JB01 225215 2134160 650 135 -50 166.5 JB02 225390 2134128 670 315 -50 147 JB03 225512 2134326 631 315 -50 141 JB04 225538 2134414 626 315 -50 87 JB05 225609 2134481 612 315 -50 168 JB06 225619 2134553 610 315 -50 111 JB07 225274 2134105 711 330 -50 100 JB08 225299 2134070 647 330 -50 96

Table 5. Significant intersections at Juan del Bosque. Hole_ID

Significant assays

Au ppb over from-to incl. (ppm)

over from-to

JB01 JB02 408 24m 108-138m 1551 1m 109-110m JB03 NSV JB04 384 31m 15-17m 2407 2m 15-17m JB05 721 26m 10-36m 1060 10m 21-31m JB06 344 25m 2-27m 1343 1m 26-27m JB07 1022 29.3m 19.7-49m 1802 7m 20.7-

27.7m 2513 4m 39-43m

JB08 NSV

The primary objective of the exploration campaign was to intercept stratabound, epithermal gold mineralization at the base of a sedimentary sequence, directly underneath an assumed caprock of silicified limestone. In the area of interest the limestone strikes NE and dips 50 deg towards the SE. Drilling was therefore directed towards the NW (315 deg and 330 deg.) with a 50 dip.

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225300 225400 225500 225600

2134100

2134150

2134200

2134250

2134300

2134350

2134400

2134450

2134500

2134550

0 100 200 300 400 Figure 37. Location of holes at Juan del Bosque.

Gold mineralization was encountered beneath the caprock in holes JB02 and JB07 and is interpreted as a stratabound mineralized layer, 10 to 30m thick, parallel to the limestone.

Low grade gold mineralization was encountered in Hole JB05 (300ppb Au over 106m from 10m downhole, including 1 g/t Au over 13m) and JB06 (228 ppb Au over 67m from surface) but these were not collared in the limestone caprock and are interpreted as feeders. The true width of these zones is not known.

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Corozo In 2004 five holes, for a total of 541m, were drilled at the Corozo project at the western boundary of the Neita property, 9.5 km WNW of the town of Restauración.

Corozo is a copper-gold porphyry target, similar to the nearby Mont Organisé project in Haiti, and the drilling campaign was initiated after encouraging trenching, soil sampling and geophysics work.

Four holes were drilled on the main Corozo hill and a fifth one south of the military barracks. A complete list of these holes, including collar locations and some significant intersections are available in tables 6 and 7. The location of the holes is shown in Fig. 38. Table 6. Collar of the holes drilled at El Corozo.

Hole_ID

UTM E UTM N Atl. (m) Azimuth Dip (deg)

Total Depth (m)

SCO-01

208,725

2,140,000

670 270 -50 120

SCO-02

208,777

2,140,177

718 270 -50 117

SCO-03

208,735

2,140,105

671 270 -60 115

SCO-04

208,780

2,140,052

621 270 -50 119.7

SCO-05

208,645

2,139,000

600 270 -50 69

Table 7. Significant intersections at El Corozo.

Hole_ID

Significant assays

Cu (%) over from-to incl. (ppm) over from-to SCO-

01 0.11% 114m 0-114m 0.18% 34m 43-77m

SCO-02

0.05% 86m 30-116m

SCO-03

0.10% 36m 52-88m

SCO-04

0.06% 109m 2-111m

SCO-05

NSV

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208650 2087502139000

2139100

2139200

2139300

2139400

2139500

2139600

2139700

2139800

2139900

2140000

2140100

0 100 200 300 400

Figure 38. Location of drill holes at El Corozo. Fine laminated sediments, crosscut by intrusive or sub-volcanic rocks were intersected in these holes. Intense pyrite and magnetite and minor chalcopyrite mineralisation in fine quartz veinlets is present in the sediments. The mineralized zones are associated with a strong epidote-chlorite alteration and as well as pervasive silicification. The presence of abundant epidote and chlorite in strongly silicified rock suggests a higher mineralization temperature than that which is typical of epithermal deposits. The porphyry model is therefore favoured for this project.

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Sampling Method and Approach

Grab samples A total of 2,298 grab samples were collected on the Neita Property during the period covered by this report. Grab sampling is an exploration tool on local, promising areas. As such the distribution of samples is not considered representative for the entire property.

Samples are collected by field geologists from outcrops or boulders using simple rock hammers. The size of the sample is minimum 150gr and a maximum of 500gr. Samples are bagged, tagged and tapped shut on site by the geologist before being collected at Unigold Inc’s facility in Loma de Cabrera. Once a sufficient quantity of samples is collected they are sent to the ACME preparation laboratory in Maimon, Dominican Republic.

Soil sampling A total of 9,538 soil samples were collected over an area of 70 km2. Sampling was generally conducted with a 200m line space with 50m between samples. However a tighter spacing (100m lines, 50m between samples) was used on the Candelones deposit and on the Noisy and Jimenez showings. A Magellan Thales differential GPS was used to accurately collect the samples according to a pre-determined grid. The samples are considered as representative as soil samples can be. All samples were assayed for gold and 31 element ICP scan.

All soil samples were taken from a standard depth of 10 cm using a shovel. The instrument was cleaned between samples. Samples weighting up to 500 grams were placed in properly marked plastic bags and delivered by truck to ACME Laboratories in Maimon, Dominican Republic, for standard preparation and analysis.

Trenches Trenches are dug for exploration purposes and follow mineralized zones or structures at the discretion of the field geologists. They are considered representative only for the immediate area being studied.

Trenching was conducted in 5 areas on the Neita property during the period covered by this report. A total of 171 trenches were dug and 4,837 samples collected.

Trenches are dug using a mechanized excavator to a maximum depth of one meter and a width of 50cm. The trenches are then cleaned by hand using shovels before being sampled. This is done to avoid contamination. Samples are collected along one wall of the trench at 6cm from the bottom of the trench using hand picks.

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Drilling The entire drill core length is sampled and assayed for gold and 31 element ICP analysis. Half of the core is sent to the laboratory and half is kept and stored at a Unigold facility in Loma de Cabrera in the Dominican Republic.

On the main zone at Candelones (referred to as Candelones West in the BRGM report) holes are drilled towards the SW (230º) with a -60º dip. Holes are drilled along lines with 50m spacing and are separated by 50m along these lines.

The main mineralized zone at Candelones is characterized by wide (approx. 100m) sections of low to moderate gold grades crosscut by centimetric high grade veins of quartz-chalcopyrite-enstatite-sphalerite. This zone grades between 0.7g/t Au to 1.3g/t Au over 70 to 122m. The zone dips 60º towards the NE. Drilled intersections are very close (95%) to true widths. Samples are representative, but it must be acknowledged that high grade veins do provide an erratic behavior to the assay results. However the mineralized envelope has a consistent width regardless of the quantity of high grade veins as shown in figures 39 and 40.

The mineralization is related to a hydrothermal event which brecciates and alters (silicification, illite ± kaolinite ± nacrite ± dickite) a dacitic rock. Gold mineralization in the western portion of the main zone ends abruptly and appears faulted. Mineralization in the eastern portion of the main zone decreases gradually, but further drilling is necessary to determine whether or not the zone is open. The zone is open at depth.

Recovery is greater than 95% except for oxide zones, from surface to approximately 25m. In this zone recovery averages 80% and can be as low as 50%.

Figure 39. Plan view of Candelones drill holes showing their gold content and the location of section A-A’.

64

Figure 40. Section A-A’ across the main zone on Candelones.

65

Sample Preparation, Analyses, and Security Samples from this project are prepared at ACME Laboratories in Dominican Republic, a lab with all the necessary certifications1 (see also appendices 7 and 8) and the necessary equipment for this task (Fig 41).

Figure 41. Preparation facilities at ACME Laboratories in Dominican Republic. Stream and soil samples are air dried at no more than 60°C in batches of no more than 300 samples and then sieved to 80 Mesh. From the fine fraction, a sample of approximated 100 g is taken as the pulp and is sent for analysis. The coarser fraction and rejects are kept for 60 days at the lab and then returned to the client.

Samples from trenches, drilling and other grab samples are also air dried at no more than 60°C in batches of no more than 300 samples (Fig 42). Then samples are crushed so 70% will pass the #10 Tyler (Fig. 43). The crushers are cleaned with air between samples and with a barren quartz material every 10 samples within similar lithologies and more frequently (up to every sample) for clayish, oxidized and mineralized material (Fig. 44).

The fine material is then homogenized (Fig. 45) and a 300g sample is further pulverized down to #150 Tyler, so at least 90% will pass the screen limit (Fig. 46). Granulometric control is done for 3% of the samples. The author checked that for the last three months all samples checked were above the minimum limit (Fig. 47). 1 You can download their ISO Certificate at http://www.acmelab.com/temp/200831442202/BSI_Certificate.pdf.

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Figure 42. Oven with the capacity to dry 300 samples at no more than 60°C.

Figure 43. Crushing station.

Figure 44. This type of barren quartz is used to clean up the crushers.

Figure 45. Homogenization station.

Figure 46. Samples prepared to be sent for assaying.

Figure 47. Granulometric control for March 2008.

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ACME uses two internal not-certified standards (STD45 for low grades and STD46 for high grades) and they also add blanks at every batch of samples that are sent to Chile for analysis. The Client uses duplicates and also add some blanks for samples coming from the drilling program, but he is not using standards either. The author suggested a more complete program of QA&QC that will include all types of samples, not only drilling.

Until September 2007, samples were shipped to SGS Mineral Services in Toronto, Ontario, Canada. Since September 2007 samples are transported by Unigold personnel to Acme Labs in Maimon, Dominican Republic, where samples are crushed and blended before being sent for analysis to Acme Labs in Santiago, Chile. Fire assay of a 50g matrix for gold as well as 35 elements using a combination of a strong 4-acid digestion that dissolves most minerals with an ICP-ES (Code 1E) are requested for every sample. The author did not visit, for obvious reasons, that facility in Chile.

The laboratory uses the LIMS system for the control of samples using code bars (Fig. 48). LIMS or "Laboratory Information Management System" is computer software that is used in the laboratory for the management of samples, laboratory users, instruments, standards and other laboratory functions such as invoicing, plate management, and work flow automation.

Figure 48. LIMS system for code bars in use by ACME Laboratories in Dominican Republic. Normal measures for the labeling, transportation, and handling of the samples are conducted by technical personnel with many years of experience on these activities. Samples are handled in the field by the technical staff and the author could see the whole chain of custody from the field to the base where the core is logged and sampled, to the lab were a system to control the samples is in place that involves both the lab and the field personnel (Figs 49 – 54).

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Figure 49. The core is brought from the field to the sampling shack by the geologists.

Figure 50. Diamond saw to cut the more silicified sections of the core.

Figure 51. The sampling personnel have all the bags numbered and prepared before commencing the sampling procedure.

Figure 52. Two technicians use the core splitter to split the core and take the sample.

Figure 53. The Client also has a very secure core shack for the rejects and sampled cores.

Figure 54. Geologist François Goulet uses an ASD spectrometry to study the core.

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Data Verification The author had the opportunity to test the presence of mineralization at several targets of the NFR area during his initial work at the property. During this last trip, the author took a sample of the quartz material that is currently use by ACME as a blank, as well as two samples from Los Candelones from areas reported as mineralized targets from the top of the hill, and from a trench (Figs. 55 – 56).

Table 8 shows the obtained results

Table 8. Results of the independent sampling at NFR. Sample Au, ppm Observation

As expected for a blank, the gold content of this sample is negligible.

This result confirms the presence of mineralization in the wall previously sampled.

This result confirms the presence of mineralization in the section of the trench.

As expected, the blank sample did not carry any significant values and the two samples taken from the mineralized zones show significant gold and copper values, similar to the original assays.

Figure 55. Sampling at the top of Los Candelones.

Figure 56. Sampling at a trench at Los Candelones.

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Adjacent Properties In the Tireo Fm. (called Mine Fm. in Haiti) we can find several prospects that have similar characteristics to the ones found on the NFR. All these mineral deposits are found in the upper and more felsic member of the Tireo Fm., and exhibit similarities in deposit type, range of metal content, lithologies, alteration, etc.

In the Dominican Republic, on ground outside the Unigold property, only one gold deposit has been found and explored in the Tireo Formation. This is the Centenario deposit which is in the Rio Blanco area near the city of Bonao, 130 kilometers to the southeast of the Candelones deposit, approximately 77 km from Santo Domingo, covering an area 2.33 km2. The Centenario deposit was discovered by grassroots prospecting by Battle Mountain/Canyon in 19912.

In Haiti, the stratigraphic equivalent of the Tireo Fm. is the Mine Fm. This formation has been better studied by international institutions such as the United Nation and the BRGM of France. The formation corresponds to a volcanic arc of Meso-Cenozoic Age that can be traced from Central Cuba, through the Dominican Republic and forms part of the mountains of the Massif du Nord group oriented NW-SE. This group is composed mainly by volcanic tuffs and lavas from the volcanic belt, ranging in composition from felsic, through intermediate, to mafic and ultramafic rocks. The belt is composed of numerous lenticular bodies of lavas and pyroclastic material of felsic composition, varying from dacite to rhyolite, embedded in a thick series of predominant mafic volcanoclastic rocks, mainly andesite with lesser amounts of basalts, with numerous intercalations of diverse sedimentary rocks, like radiolaries cherts, carbonate rocks, and tuffs.

Copper and gold are the two main ore types in the area. Copper is usually found associated with the porphyritic facies, in the apophyses microtonalitics, and in the silicified zones, filling fissures and fractures, as well as disseminated. Within the quartz vein systems, the copper is contained in the chalcopyrite, while the gold appears both as native gold and as a very fine disseminated gold in the sulphide zone. It can also form spectacular concentrations on the oxidized cap.

The author had the opportunity of working in this area for almost 18 months for St. Genevieve Resources Ltd. There are several gold and gold-copper deposits and showings, of which Blondin, Douvrey and Faille B are the best studied.

Among the historical estimates, the United Nations estimated the presence of 60 MT grading 0.56% copper for Blondin and 180 MT grading 0.59% copper for Douvray (Krason et al., 1992). BRGM tested the Douvray prospect with 24 drill holes and carried out a feasibility study between 1977 and 1980. Based on a re-estimated resource of 92 MT grading 0.44% copper, BRGM considered the deposit uneconomical due to limited reserves and low grades.

At Faille B, the UN team initially drilled 31 exploration holes to identify the geological control and the centers of gold mineralization. A zone of complex veining was identified and tested in detail. Historical estimations of the area indicate a potential of 523,000 tonnes grading 14 grams of gold to 150 metres or 1.07 MT at 2.27 grams of gold to 50 metres (Krason et al., 1992).

2 For further reference see http://www.energold.com/s/ElCentenario.asp.

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A more recent resource estimation completed by the author over Douvray, indicated that the volume of the ore body was 3.3 km3. Using a dry density of 2.65 g/cm3 that gives us 8.75 MT grading 0.03% Cu and 0.005 g/t Au of measured resources3.

Other deposit in Haiti in close proximity to the NFR is La Miel. EMX's La Miel project is covered by four exploration permits totaling 324.5 km2 and is located along a segment of prospective geologic terrain similar to, and on trend with, the world-class Pueblo Viejo gold-silver deposit in the neighboring Dominican Republic4. Regional geology consists of flysch sequences, felsic volcanics and intrusive rocks that lie within a 35 kilometer long trend of epithermal alteration. A 15 km2 area with strong epithermal alteration and anomalous gold-silver-copper mineralization has been outlined around the Savane La Place ("SLP") prospect.

The author feels that mentioning the available information on these deposits is relevant to this report because it gives the reader an indication of the extrapolated potential of the NFR based on known mineralization along strike of the property. However, the reader must be clear that the existence of such mineralization in nearby locations is not necessarily indicative of the mineralization of the NFR.

3 See SEDAR: http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00002303.

4 http://www.eurasianminerals.com/s/Haiti-LaMiel.asp

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Mineral Processing and Metallurgical Testing Two samples from the Candelones deposit mineralization were prepared at the Rosario Dominicana laboratories and sent for metallurgical testing to the BRGM technical center in Orleans, France.

The first sample represents the oxidized mineralization of the first 20 meters below the surface. The second sample represents the fresh sulphide mineralization below the oxides. Both samples came from the core of six drill holes (SC-12 to SC-17). The oxide sample assayed 1.75 g/t Au and the sulphide sample assayed 1.4 g/t Au.

Cyanidation testing showed a gold recovery of 92% for the oxidized sample and 64% for the sulphide mineral. These results indicate that the sulphides show some partial refractory conditions which may be attributed to gold particles enclosed in pyrite and in quartz.

Flotation produced excellent results for the sulphide sample and mediocre results for the oxides. The poor flotation behavior of the oxide hinted at the need for a “Carbon in pulp” (CIP) circuit for the oxides but the small reserves of oxides do not justify the additional capital investment.

The metallurgical testing determined the following flow diagram for the oxide and sulfide (combined) minerals of the Candelones deposit: Crushing, milling, flotation, cyanidation in pulp (CIP), electrolysis, dore.

In 2007 additional metallurgical testing was performed by SGS Minerals Services (Lakefield). Two composite samples from the Candelones deposit were provided by Unigold Inc. One composite sample represented medium gold grade oxide material from drill core and the other sample represented medium gold grade sulphide material, also from drill core.

The objective of metallurgical testing was to determine the occurrence of gold and silver and to identify and evaluate the mineralogical factors that may affect recoveries

A comprehensive mineralogical and analytical approach including stage crush, fire assay, heavy liquid separation, super panning, ore microscopy and x-ray diffraction was used to carry out the study. The sum of the two samples weighed 779 kg.

The mineralogy for the oxide component is described as follows:

(i) Gold mainly occurred as native gold. Gold grains ranged from 1 to 20µm in size. Under the current grind fineness (80% passing 150µm), approximately 48% of gold in the composite sample was carried in the sink fraction and considered to be mainly liberated or attached. The balance of gold was considered to be locked in non-opaque minerals (i.e. silicate) and iron-oxide/hydroxide. Locking in non-opaque minerals is considered to be the major factor that may affect gold recoveries.

(ii) No microscopic silver mineral particles were found, and most (about 92%) silver occurred as sub-microscopic inclusion in iron-oxide/hydroxide and sulphide. Locking in iron-oxide hydroxide and sulphide and silicate is considered to be the major factor that may affect silver recoveries.

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(iii) S content is extremely low (<0.05%) and chalcopyrite, covellite, bornite, pyrite, pyrrhotite are the major sulphide minerals. Clearly pyrrhotite is an issue.

(iv) Overall, Fe-oxide hydroxide (mainly goethite and limonite, magnetite and hematite) are the major iron minerals in this composite and considered to be the source of the soluble iron that came into solution during cyanidation testing.

The mineralogy for the sulphide component is described as follows:

(i) Gold mainly occurred as native gold. Gold grains ranged from 2 to 42 µm in size. Under the current grind fineness (80% passing 150µm), approximately 54% of gold in the composite sample was carried in sink fraction and considered to be mainly liberated or attached. The balance of gold was considered to be locked in non-opaque minerals (i.e. silicate) and iron-oxide/hydroxide. Locking in non-opaque minerals is considered to be the major factor that may affect gold recoveries.

(ii) No microscopic silver mineral particles were found, and most (about 58%) silver occurred as sub-microscopic inclusion in sulphide. Locking in non-opaque minerals is considered to be the major factor that may affect silver recoveries.

(iii) S content is 4.86% and pyrite, chalcopyrite, galena, sphalerite, bornite and covellite, pyrrhotite, marcasite and stibnite are the major sulphide minerals. Clearly, attention should be paid to pyrrhotite.

(iv) Fe-oxide/hydroxide (mainly magnetite, goethite and limonite) are the major iron minerals in this composite and considered to be the source of the soluble iron that came into the solution during cyanidation.

Cyanidation testwork A series of four tests was completed in order to evaluate the potential for, and variability in, gold and silver extraction by direct cyanidation of each whole ore sample. Each test used 500g of feed. The cyanidation test conditions were as follows:

Pulp Density = 40% solids

Pulp pH = 10.5-11 (maintained with lime)

Cyanide Concentration = 0.5 g/L NaCN (maintained)

Retention Time = 48h

Pregnant solution sub-samples were removed intermittently and assayed for gold content in order to monitor extraction rates. All leach residues were washed, dried, weighed and duplicate 25-30g cuts were riffled out and analyzed for gold content.

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Table 9. Results of the cyanidation testing by BRGM.

Comp Test Feed Size Residue Grade

P80, µm NaCN CaO 7h 24h 48h Au, g/t Calc. Direct

0.03 0.88

0.03 0.880.76

CN-04 32 0.15 8.73 69 99 96.6

8.96 68 90 96.6Med

Grade Ox Comp

CN-03 69 0.03

60 65 59.2 0.3CN-02 37 0.9 3.21

56.5 0.32 0.720.66

0.72

Reagen Conumption kg/t of Leach Feed Extraction, % Head Grade, Au, g/t

Med Grade S=

comp

CN-01 180 0.27 3.05 58 58

Gold recovery from the Medium Grade S= Composite was <60% after 48 hours, regardless of grind fineness in the 180µm to 37µm size range evaluated. The finer grind (37µm) did yield a slightly higher gold extraction (59.2%) than the coarser (180µm) grind test (56.5%).

Gold extraction from the Medium Grade Oxide Comp was essentially the same (96.6%) at both grinds tested.

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Mineral Resources and Mineral Reserves Estimates The CIM Definition Standards5 provide standards for the classification of Mineral Resource and Mineral Reserve estimates into various categories. The category to which a resource or reserve estimate is assigned depends on the level of confidence in the geological information available on the mineral deposit; the quality and quantity of data available on the deposit; the level of detail of the technical and economic information which has been generated about the deposit, and the interpretation of the data and information.

According to the CIM Definition Standards of November 22, 2005, the following categories are to be used when defining mineral resources.

Measured Mineral Resource

A “Measured Mineral Resource” is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings.

Indicated Mineral Resource

An “Indicated Mineral Resource” is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

Inferred Mineral Resource

An “Inferred Mineral Resource” is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

According to this classification, the Client does not currently have mineral resources or reserves to report. All the historical estimations related to the NFR have being disclosed on the History section of this report. The Company reminds the reader that the historical estimate should not be relied upon.

5 http://www.cim.org/committees/cimdefstds_dec11_05.pdf

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Other Relevant Data and Information

Lineament Analysis of the NFR This study was requested by the Client in 2003. The first stage of this study included the lineament, strain, and rose diagram analysis of the NFR based on the existing topographic maps. On the basis of the study, the author determined eight zones and three sub-zones for more detailed studies. Among these zones where the three ones used as target-modeling (Corozo, Candelones, Guano).

A further study was then requested by the Client to include the geological and geophysical data in the analysis. The objective was to obtain more “credible” target zones from a geological point of view, as well as to delineate smaller targets within the area.

The author will present here the main results of the second stage of this study.

Geomathematical modelling The geophysical data was prepared by the Client to correspond to the original grid of the lineament study (1 by 1 km). Using the same grid, the author digitized the geological data of the area using a geological map provided by the Client.

The geology of each point was defined by a combination of two factors: the acidity (silica content) of the rock and its texture. Silica content varied from 90 for quartz keratophyres to 0 for limestones. The texture was defined as a function of permeability, varying from 0 for massive rocks to 10 for brecciated rocks. Table 10 shows this code.

Using SURFER software (version 8) we started by producing a 250 x 250 m grid of the original data for every parameter (geology, geophysics, lineament, etc.) for a total of 8,990 events. Then using Excel the data was put together in a single table (original data1.xls, folder TOTAL, in the attached CD).

Next, we separated the data for the six independent targets selected after discussions with the Client. The data is presented in the folders Corozo, Candelones, Guano, Neyta, Berro, and Central in the before mentioned Excel file (original data1.xls).

The fist step in the geomathematical modeling of each target zone was to determine the presence of hurricane values (statistical outliers). For this we used the Kazhdan equation:

(1) Xhur > Mx ± 3σ

Where,

Xhur – hurricane value or statistical outlier

Mx - mean of the sample

σ - standard deviation

The hurricane values detected were substituted by the limit value determined by equation (1) and then the data was retested for new hurricane values, which were not found. Table 10 Geological code for the formations of the Neita Fiscal Reserves area.

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Geology SiO2 Texture Geology SiO2 Texture

Sedimentary flysch 0 0 Basaltic and/or andesitic tuffs

40 5

Reddish limestone 0 0 Calcareous mudstone in green tuffs

40 10

Quartz keratophyre 100 1 Basaltic flow 20 5

Rhyolite 80 5 Basalt 40 1

Hornblende dacite 70 5 Porphyritic andesite 60 1

Dacite 70 5 Tonalite 80 1

Pyroclastic dacite 70 10 Hornblende tonalite 80 1

Fine grained andesitic tuff 60 10 Diorite 70 1

Limestone intercalated with andesite

60 1 Peridotite 70 1

Fragmental andesite 60 10 Sub-intrusive qtz-fsp porphyry

90 1

Red tuffs 40 10 Mafic, sub-intrusive rock 20 1

The next step was to determine the statistical characteristics of the modified data, specifically, to determine the distribution law by the asymmetry and excess of the distribution curves. Parameters with asymmetry or excess values bigger than 3 were considered lognormal and the data was transformed to their natural logarithms. A new test showed that by this procedure the data were normalized.

After that, the anomaly thresholds for every parameter to be used in the interpretation of single anomalies were determined.

The final step was to complete a correlation analysis of the corrected data (without hurricane values and corrected for their distribution). A second correlation table was created with only those correlations that were “sensitive” according to Student’s t parameter. The calculations are included under the folder Student Test Correlation in the original data1.xls file in the attached CD.

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Interpretation Based on the results of the correlation analysis for each target zone, the author defined the following Range Correlation Coefficient (R.C.C.):

1.- Corozo (Fig. 57, Table 11)

RCC+1 = (Texture+Pole+IGRF+RES+D2+D3+Strain+D1)/ (D5+d4+1VD+K+Th+Tc+U=TMI+Geology+Complexity+MS+S+SS+Ts+Ti+T+MT+SC)

RCC+2 = (Ts+Geology+Tc+TC+T+RES+U+C+MC+MT+ST+S+TT+D4+D5+Complexity+CC+MS+

Th+TMI+1VD+Strain)/(Ti+POLE+MM+K+M+SC+SS+Texture+D2+IGRF+D1)

2.- Candelones (Fig. 58, Table 12)

RCC+3 = (D1+IGRF+ST+T+MT+M+D4+MS+Ts+Geology+Ti+S+SS+ID+TMI)/

(D2+Th+K+POLE+RES+Texture+D3+Complexity+Strain+U)

3.- Guano (Fig. 59, Table 13)

RCC+4 = (K+Th+U+1VD+D5+TC+MC+D4+Tc+Ti+MS+POLE+SC+Strain+

Complexity+ST+ID)/(D3+Texture+TMI+S+SS+IGRF+MM)

4. - Neita (Fig. 60, Table 14)

RCC+5 = (ST+D4+Geology+S+K+Ti+SS+Complexity+1VD+M+U+TMI+Th+T+

Ts+MM+ST+Strain)/(D5+D1+Pole+IGRF+RES+D3+ID+MC+

Texture+MT+SC)

5. - Berro (Fig. 61, Table 15)

RCC+6 = (Texture+Strain+D1+MT+MS+Ti+M+Complexity+RES+MM+D4+TT+

ST+T+U+Ts+ID)/ (K+TC+SC+SS+Th+Tc+POLE+1VD+D5+TMI+S+

Geology+D3+D2+IGRF+MC)

6. - Central (Fig. 62, Table 16)

RCC+7 = (C+MC+M+CC+1VD+TMI+RES+MS+SS+S+Texture+IGRF+Ti+Ts+T+ID+

Tc+ST+D2+D5+TC+Complexity)/

(Th+U+POLE+Strain+Geology+K+MM+SC+D4)

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Figure 57. Corozo type targets.

.

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Table 11. Correlation matrix for El Corozo.

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Figure 58. Candelones type targets.

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Table 12. Correlation matrix for Candelones.

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Figure 59. Guano type targets.

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Table 13. Correlation matrix for Guano.

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Figure 60. “Neita” type targets.

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Table 14.Correlation matrix for Neita.

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Figure 61. Berro type of targets.

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Table 15.Correlation matrix for Berro.

89

Figure 62. Central type of targets.

90

Table 16. Correlation matrix for Central.

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Corozo Type Targets Both RCCs determined for the Corozo type of mineralization give their best results next to the Corozo deposit.

RCC+1 RCC+1 best anomaly is located on top of the mineralized zone discovered by the author in Haiti (Valls, 1997), in a contact between a tonalite intrusive and basalt-andesite tuffs. Another interesting zone is located at the south border of the Neita Fiscal Reserves area, between UTM E 218000 and 222000. R.C.C.+1 shows a wide anomaly opening to the south. It represents a zone of development of dacites and pyroclastic dacites in tectonic contact with sedimentary flysch. This dacite and pyroclastic dacite formation is the same association of rocks for the nearby Montazo-Guano deposit The western part of this anomaly coincides with the Target Zone 1 (Candelones East) defined by lineaments alone (Appendix 6).

A new area previously not identified by the lineament study is located around the town of Restauración. The area consists of three targets. The eastern target is located on the north flank of Cerro de Jimenez (UTM E 220107.966, UTM N 2137820.342). It represents the contact between a tonalite intrusive and basalt-andesite tuffs in the context of three tectonic systems: the main one is oriented NW-SE and the two secondary systems are oriented NE-SW which delimit the target. The western target is located at the NE flank of the Valle de Simón (UTM E 215014.044, UTM N 2137983.116) near the village Candi. It represents a contact between dacites, and limestones intercalated with andesites. The southern portion of the anomaly is the largest and is associated with several creeks draining along north – south direction within dacites. This target includes the Neita deposit near Restauración. Here the area overlaps with the north-eastern corner of the Target Zone 6 (La Pocilga) which was identified earlier by the lineament study.

Following the northwest trend we have delineated another anomaly zone associated with the Cerro de Mongrené (UTM E 212026.371, UTM N 2139013.922) in porphyritic andesites. This zone corresponds to the south-western corner of the Target Zone 2 (Cerro Trinifaria) and in a more broader sense to the south-western corner of the Sub Target Zone B (Vara de Vaca) identified earlier by the lineament study.

A new target was identified to the north of the studied area, between UTM E 223000 and 226000, to the north of Loma de Perico. It is a contact between dacites and basalt-andesite tuffs. This target remains open to the north. Another smaller target was identified in the southern flank of Loma de Periquete (UTM E 226990.08, UTM N 2137004.336) in the same geologic environment (contact between dacites and basalt-andesite tuffs). Finally, there is an open anomaly to the southeast of Río Vallecito (UTM E 228730.383, UTM N 2130320.447), developing over rhyolites.

RCC+2 The RCC+2 defined two target anomalies. The northern target completely coincides with the Sub-Target Zone A (El Corozo) in a contact between the tonalitic intrusive and porphyritic andesites. It extends into Haiti.

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The southern target coincides with the Target Zone 8 (Wacacou) within the tonalitic intrusive in Haiti, as it was previously identified by the lineament analysis.

Candelones Type Targets Most of the targets identified by the RCC+3 are new and only partially coincide with previously identified target zones. There are two main targets and several secondary ones.

The most eastern target remains open to the east, with its epicentre located between UTM N 2142000 and 2143000, south of the village Los Mosquitos (UTM E 228927.3584, UTM N 2142992.11282) inside a diorite formation.

The second main target is located at the north-eastern flank of Loma Pozo Negro, just 500 metres north of Cerro de Jimenez (UTM E 220008.44685, UTM N 2138978.60167) in a tonalite intrusive and basalt-andesite tuffs in the context of three tectonic systems. The main tectonic system is oriented NW-SE and two secondary tectonic systems are oriented NE-SW, which delimits the target. It is interesting to notice the change of the orientation of this hill as shown in Fig. 63.

Figure 63. Detail on the morphology of Loma Pozo Negro.

In between these two target zones there is an anomaly that partially corresponds to Target Zone 3 (Carrizal). It represents a series of peridotitic intrusives in a basalt-andesite tuff, strongly controlled by NW-SE faults. To the southwest, there is an irregular anomaly developing towards the Republic of Haiti; it partially corresponds to the western limit of Target Zone 6 (La Pocilga). It represents the contact between the tonalite intrusive and basalt-andesite tuffs, with other minor formations (e.g. rhyolites, quartz keratophyres, diorites, etc.), and it includes quartz veining zones of Cerro Berro-Loma Montazo, and other targets.

Table 17 shows the UTM coordinates of the centre of several smaller targets, including those located in Haiti (Nos. 1-8).

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Table 17. UTM coordinates of the Candelones type targets.

Point UTM E UTM N Geology

1 214062.5 2131056 Tonalite (?)

2 208975 2133875 Tonalite

3 208975 2134975 Tonalite

4 210968.8 2144050 Fine grained andesitic tuffs

5 213993.8 2143981 Limestone intercalated with andesite

6 212962.5 2145012 Limestone intercalated with andesite

7 216056.3 2143087 Porphyritic andesite in contact with basalt-andesite tuff at the intersection of faults.

8 210075 2132844 Tonalite

9 214818.8 2136006 Basalt-andesite tuffs

10 213031.3 2139031 Basalt-andesite tuffs in contact with porphyritic andesites

11 211037.5 2141025 Porphyritic andesites

12 215025 2139994 Basalts

13 217018.8 2142056 Basalt-andesite tuffs in a parallel fault system

14 217018.8 2144944 Basalt-andesite tuffs in a parallel fault system

15 217981.3 2143981 Basalt-andesite tuffs in a parallel fault system

16 219012.5 2143981 Basalt-andesite tuffs

17 220043.8 2143019 Diorite (Vara de Vaca deposit)

18 221075 2142881 Diorite in contact with basalt-andesite tuffs

19 220937.5 2143913 Basalt-andesite tuffs

20 223962.5 2143913 Basalt-andesite tuffs

21 224031.3 2143087 Diorite in contact with basalt-andesite tuffs

22 223068.8 2142950 Basalt-andesite tuffs

23 224993.8 2142125 Diorite in contact with basalt-andesite tuffs

24 223000 2134975 Diorite in contact with pyroclastic dacite in a fault environment

25 223412.5 2139925 Peridotite intruding basalt-andesite tuffs within a parallel fault system, near diorites.

26 224718.8 2138962 Peridotite intruding basalt-andesite tuffs within a parallel fault system.

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Point UTM E UTM N Geology

27 225750 2138137 Peridotite intruding basalt-andesite tuffs within a parallel fault system, near diorites.

28 228018.8 2134012 Basalt-andesite tuffs

29 217018.8 2145906 Basalt-andesite tuffs

30 221968.8 2145906 Basalt-andesite tuffs

Guano Type Targets The RCC+4 identified most of the anomalies of the Candelones type, the differences in the coefficients notwithstanding.

The most impressive anomaly is again found in Haiti to the northeast of Morne Piton Mingo (UTM E 214986.042, UTM N 2145113.279). It is associated with porphyritic andesites. The eastern extension of this target is located in the Dominican Republic, south of Cerro de La Gata (UTM E 216991.332, UTM N 2145005.135) within basalt-andesite tuffs (?). It forms part of the Sub-Target Zone B (Vara de Vaca).

The most eastern target remains open to the east. Its epicentre located between UTM N 2142000 and 2143000, south of the village Los Mosquitos (UTM E 228927.3584, UTM N 2142992.11282) in tonalites.

The third target corresponds to the previously described one, located at the north-eastern flank of Loma Pozo Negro, just 500 metres north of Cerro de Jimenez (UTM E 220008.44685, UTM N 2138978.60167).

Table 18 shows the UTM coordinates of the centre of several smaller targets, including those located in Haiti (Nos. 31-34).

95

Table 18. UTM coordinates of the Guano type targets.

Point UTM E UTM N Geology

31 213946.7 2130887 Tonalite

32 210049 2132966 Tonalite

33 208879.7 2133940 Tonalite

34 209074.6 2134914 Tonalite

35 212062.8 2133031 Tonalite

36 212972.3 2135044 Basalt-andesite tuffs near a NW-SE fault system and quartz veining from Cerro Berro-Loma Montazo)

37 215051 2135109 Basalt-andesite tuffs in contact with a mafic, sub-intrusive body.

38 211023.4 2141021 Porphyritic andesite

39 213037.2 2142060 Fine grained andesite tuffs

40 221027.4 2144074 Basalt-andesite tuffs associated to a NW-SE fault

41 221027.4 2141995 Basalt-andesite tuffs associated to a NW-SE fault, near a zone of silicification

42 222001.8 2141995 Basalt-andesite tuffs associated to a NW-SE fault, near a zone of silicification

43 223106.1 2142970 Diorite in contact with basalt-andesite tuffs

44 222976.2 2144009 Basalt-andesite tuffs

45 226029.3 2144983 Diorite

46 225054.9 2142060 Diorite in contact with basalt-andesite tuffs

47 223041.2 2139981 Diorite in contact with basalt-andesite tuffs, near zone of silicification and a gold anomaly

48 225054.9 2139072 Peridotite intrusive in basalt-andesite tuffs controlled by a parallel fault system

49 225964.4 2138098 Basalt-andesite tuffs near to a NW-SE fault system

50 226938.8 2137968 Basalt-andesite tuffs near to a NW-SE fault system

51 229017.5 2140046 Basalt-andesite tuffs near to a NW-SE fault system

96

“Neita” Type Targets The RCC+5 defines the same Corozo type targets as identified in the Sub-target Zone A (El Corozo) and identifies another large anomaly oriented SW-NE in Haiti, both associated with the tonalite intrusive. The upper part of this anomaly corresponds to the Target Zone 8 (Wacacou) previously identified by the lineament analysis.

It is clear that the small area used to model this type of mineralization wasn’t sufficient to obtain a good discriminator. A more detailed study at scale 1:10 000 or 1:5000 is needed.

Berro Type Targets It is the opinion of the author that the RCC+6 obtained for this type has limited predictive power due to the size of the sample. The main anomalies identified by this coefficient correspond to the anomalies previously described as the Guano type (the anomaly at the eastern limit of the studied area and the anomaly on the flank of Pozo Negro). Also known is the strong anomaly in Haiti associated to Morne Piton Mingo (UTM E 214015.434, UTM N 2143999.88).

Table 19 shows the coordinates of the epicentre of the targets defined by this coefficient, including two targets (Nos. 52 and 53) in Haiti.

Table 19. UTM coordinates of the Berro type targets.

Point UTM E UTM N Geology

52 212972.3 2131991 Tonalite

53 211023.4 2143035 Tonalite

54 213881.7 2133940 Quartz veining in basalt-andesite tuff (Berro deposit)

55 214011.6 2136993 Fragmental andesite

56 216999.8 2138942 Basalt, near a NW-SE main fault

57 216999.8 2144009 Basalt, near a NW-SE main fault

58 221027.4 2142970 Tonalite in contact with basalt-andesitic tuffs (near Vara de Vaca)

59 227913.2 2145958 Tonalite

60 221027.4 2131991 Dacite in contact with reddish limestones

61 222976.2 2131991 Dacite in contact with reddish limestones

97

Central Type Target The main anomalies identified by the RCC+7 coefficient correspond to the ones previously described by the Guano type (the anomaly at the eastern limit of the studied area and the anomaly on the flank of Pozo Negro). Also previously described is the strong anomaly in Haiti associated with Morne Piton Mingo (UTM E 214015.434, UTM N 2143999.88).

The coefficient also detected a small anomaly associated with basalt-andesite tuffs on a NW-SE fault system in the south-eastern flank of Cerro de la Yerba Paez (UTM E 213008.187, UTM N 2134984.958, and Fig. 64).

Figure 64. Detail of the anomaly in the southeastern flank of Cerro de la Yerba Paez.

98

Conclusions and Recommendations from the lineament analysis The addition of geology, texture, and several geophysical parameters to the lineament, rose diagram, and strain analysis produced highly effective and strong correlation coefficients for the Candelones and the Corozo-Guano types of mineralization in the studied area. Many of the previously identified target zones (identified by the first stage of the lineament-strain analysis) were confirmed by the new database, and their limits became smaller in general. It is clear that more detailed studies are needed for the other three types of mineralization (Berro, Neyta, and Central) in order to create a larger database to identify the proper RCCs.

A series of targets have been identified, and their UTM coordinates are reflected in Tables 17 -19. The most interesting targets within the Dominican territory are the anomalies related to El Corozo (UTM E 207901.461, UTM N 2139061.07) in tonalities; the target at the eastern border of the property with the epicentre located between UTM N 2142000 and 2143000 in diorites, south of the village Los Mosquitos (UTM E 228927.3584, UTM N 2142992.11282); and the previously described target located at the north-eastern flank of Loma Pozo Negro, just 500 metres north of Cerro de Jimenez (UTM E 220008.44685, UTM N 2138978.60167) in a contact between basalt-andesite tuffs and tonalities in a complex tectonic environment. Due to the peculiarities of the geomorphology of the last target (Fig. 63) the author strongly recommend this target for immediate field verification.

There are other smaller, yet interesting, targets like points 7, 13-15, 17-18, and 25-27 from Table 17; points 40-42 and 49-51 of Table18; and points 54 and 58 of Table 19 which also merit immediate field verification.

The author also recommends the application of the lineament analysis to the SFR. Creation of a more detailed lineament, geological, and geophysical database using a grid of 250 by 250 metres is strongly recommended. Due to the proximity of this new area to the NFR, it should be possible to use the defined RCCs, if there are no known deposit types in SFR.

The identified targets should be field checked and stream sediments, soil samples, and lithogeochemical samples should be taken to verify the presence of mineralization. The author also recommends the use of ferns in the sampling and identification of mineralized zones (Valls, 2002).

99

Interpretation and Conclusions

The island of Hispaniola host one of the largest gold deposits in the world, The Pueblo Viejo Deposit. This world class mega deposit is in Los Ranchos formation, a volcano sedimentary belt that extends east-west in the Eastern part of Hispaniola. It is dated Lower Cretaceous.

The other similar formation found in Hispaniola is the Tireo Fm. Its age is Upper Cretaceous.

These two gold bearing volcano sedimentary formations are considered by authors such as Mann et al (1991), as accreted fragments of the Cretaceous volcanic arc and they are both prime ground for finding gold deposits. Using the old prospector’s jargon one can say that “The best place for look for a mine is next to a mine”.

Even thought there is still no world class gold deposit in the Tireo Fm. in Dominican Republic or in Mine Fm. in Haiti, the mineral deposits found there and the rugged relief and relatively little exploration work done in this area, justifies additional exploration work and prospecting both for epithermal precious metal deposits and for porphyry copper deposits.

A final conclusion is that only 8% the area has been explored to soil sampling stage and only 12% has been prospected up to reconnaissance stage which leaves a great deal of this ground still unexplored for precious and base metals.

100

Recommendations The work completed to date by Unigold in the NFR has proved its potential for hosting precious metals deposits and porphyry copper deposits. It can be almost said that the Client presently has more targets to explore then they are able to handle, which is not a bad situation to be in. The Client then has two main options for the future: (i) to convert into “tonnes” the best of his current targets; and (ii) to design an exploration model that will allow him to discriminate its current and future targets. For this the author recommends the following program:

1. Intensify the drilling program at Candelones to be able to complete a NI 43-101 compliant resource estimation.

2. Complete metallurgical studies of the ore.

3. Complete a feasibility study of its main target.

4. The lineament analysis gave near 61 targets within six areas, three of which (Vara de Vaca, Pozo Negro y Berro) has already be proven to contain interesting geochemical anomalies and/or mineral showings. The author strongly recommends that further geochemical exploration be concentrated around the targets suggested by the lineament analysis.

5. The author also recommends that a complete lineament analysis will be conducted over the SFR, previous to any other geochemical survey or mapping as a tool to concentrate the exploration efforts of the client in this new vast territory that Unigold Inc. has in Dominican Republic.

6. The author would like the client to consider the application of biogeochemical techniques in the new areas, as well as SGH method as additional tools for the quick definition of targets.

7. Acquisition of satellite images and interpreted satellite images for both the NFR and the SFR.

101

Proposed Budget A two phase exploration program and budget for 2008 is proposed. Both phases can be conducted parallel or sequentially by the Client. In the opinion of the author, the character of the property is of more than sufficient merit to justify the work program recommended.

For the definition of current resources Table 20 shows the proposed budget for the exploration of the current resources. Table 20. Budget for the definition of current resources during 2008.

Dominican Republic Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

CONTRACTS

Legal Services 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Logistics Support Staff 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000

Structural geology 0 0 0 4,500 0 4,500 0 4,500 0 0 4,500 0 18,000

Economic geology 8,000 8,000 8,000 8,000 8,000 8,000 0 8,000 0 8,000 8,000 72,000

Ore body modelling 13,000 2,000 13,000 2,000 13,000 2,000 13,000 2,000 13,000 2,000 13,000 2,000 90,000

Air Travel 4,000 4,000 4,000 6,000 2,000 6,000 2,000 6,000 4,000 4,000 2,000 4,000 48,000

AIF Reports 43-101 & Ressources Calculation 0 0 8,000 25,000 50,000 0 0 0 0 0 0 83,000

MetaLlurgy phase 2 Lakefield Contract 0 0 0 0 17,000 17,000 0 0 0 0 0 0 34,000

ACME Sample Analysis(29$/SampleX20,000Samples)

40,000 45,000 45,000 45,000 45,000 45,000 60,000 60,000 60,000 45,000 50,000 45,000 585,000

Drilling(125$/m) 15000m 110,000 120,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,530,000

Soil ans stream Sampling Contract(7$/Sample) 0 0 0 0 0 7,000 7,000 7,000 0 5,000 5,000 0 31,000

Sub-Total 2,569,000

STAFF CONTRACTS

VP Exploration 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000

Project Geologist 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 19,500 9,500 9,500 9,500 124,000

Senior Geologist 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 19,000 9,000 9,000 9,000 118,000

Senior Geologist 0 0 0 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 72,000

2 Juniors Geologist 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 21,000 142,000

Technician 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 11,000 5,000 5,000 66,000

Air Travel 8,000 6,000 8,000 8,000 8,000 6,000 8,000 6,000 8,000 6,000 8,000 6,000 86,000

Local Drilling Helpers(up to 30 Persons) 4,000 6,000 6,000 6,000 6,000 9,000 9,000 9,000 6,000 9,000 9,000 6,000 85,000

Sub-Total 765,000

TRANSPORTATION and Rentals

Nissan Pick-UP, Double Cabin 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Nissan Pick-UP, Double Cabin 2,000 2,000 2,000 2,000 2,000 2,000 2,000 1,000 1,000 1,000 1,000 1,000 19,000

Nissan Pick-UP, Double Cabin 0 2,000 2,000 2,000 0 2,000 2,000 2,000 0 2,000 2,000 0 16,000

Shipping and clearing 5,000 10,000 10,000 25,000

Sub-Total 84,000

102

CAPITAL EQUIPMENTS Purchase

2 Nissan Pick-UP, Double Cabin 0 0 0 0 0 40,000 0 0 0 0 0 20,000

Loma office electronic equipments 0 0 0 0 0 25,000 0 0 0 0 0 30,000

Short wave field spectro-analyser 0 0 0 0 0 35,000 0 0 0 0 0 50,000

Drill Rig Spare Head 0 0 0 0 0 25,000 0 0 0 0 0 60,000

Drill Rods(200m of HQ) 0 0 0 0 0 21,000 0 0 0 0 0 21,000

Drill Rods(600m of NQ) 0 0 0 0 0 40,000 0 0 0 0 0 65,000

Tools and supplies 0 0 0 0 0 8,000 0 0 0 0 0 8,000

Spares for equipments 30,000 30,000

Sub-Total 284,000

FIELD OFFICE

Rent & Utilities 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400

Food Supplies 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000

Office Supplies 300 300 300 300 300 300 300 300 300 300 300 300 3,600

Telephone & Internet 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Insurance 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Sub-Total 150,000

Vehicles&Equipments Maintenance

Excavators 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Versadrill Drilling Rig 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Atlas Copco Drilling Rig 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Nissan Pick-UP, Double Cabin(5 Units) 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000

Fuel 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 132,000

Sub-Total 222,000

FIELD EXPLORATION

SABANETA,Neita & Los Candelones

IP 0 0 0 0 0 20,000 20,000 20,000 20,000 0 0 0 80,000

Detailed MAG(in house) 0 0 0 0 0 0 0 0 0 0 0 0 0

PIMA Technician 7,000 2,000 2,000 0 2,000 0 2,000 0 0 2,000 2,000 2,000 21,000

Sub-Total 101,000

TOTAL 4,175,000

Contingencie 5%

208,750

GRAND TOTAL

4,383,750

Say Can $ 4.500,000.

103

For the definition of new targets Most of the proposed work here is aimed at the detection of new targets at the SFR, as well as the verification of known targets at the NFR. The total estimated cost of these works is Can $213,510.50.

Lineament analysis of the SFR

Assuming a studied area of 600 km2 at a scale of 1:50,000, it is estimated that the cost of a full lineament analysis will be: Lineament analysis: $11,500.00 Additional layers: $150.00 3D Stress analysis: $7,200.00 Color-image analysis: $2,500.00 Estimated expenses: $3,200.00 GST: $1,473.00 Total cost: $26,023.00

The goal is to define target areas within the SFR to be verified by geochemistry and mapping at an early stage of the project.

Stream sediments program

Goals: To take infilling and supplementary active sediment samples in both Neita and Sabaneta properties. Samples of gossan / alteration will be taken also if found in the streams. a) Estimated time required: 2 month (1.5 month + 25% contingency) b) Work hours: (6 day week, 10 hour / day for 6 weeks) = 360 hours c) Estimated cost: US$ 62,000.00 1) Geologist (1) US$ 5,000.00 2) Samplers (3) US$ 3,000.006 3) Local guides / packer (3) US$ 1,500.00 4) Cook – Camp Keeper (1) US$ 250.00 5) Vehicle / fuel / maintenance US$ 3,000.00 6) Camp – office rent + furniture US$ 550.00 7) Food / water / beverages US$ 1,000.00 8) Field equipment: US$ 2,000.00 9) Sampling bags: US$ 160.00 10) Consulting: US$ 5,000.00 11) Laboratory assaying + sample preparation US$ 8,000.00 12) Others (15% contingency) US$ 8,000.00

6 Salaries include fringe benefits such as social security

104

Gossan/Alteration search and sampling program

Goals: To walk, examine and sample (as required) predetermined traverses along stream valley and silicification resulting crests to find areas of gossan and / or alterations. The areas with gossan / alteration found will be examined in detail in order to prioritize them. Additional laboratory and field studies should be done with the gossan / alteration samples in order to determine trends that will help to find additional gold mineralization in the Neita and Sabaneta properties. a) Estimated time required: 4 months (minimum) b) Work hours: (17 week for 6 days / week, 10 hours / day) 1,020 hours* c) Estimated cost: US$ 45,360.00 1) Geologist (1) US$ 5,000.00 2) Sampler (technicians) (3) US$ 3,000.00 3) Local guides / packers (3) US$ 1,500.00 4) Cook – camp keeper US$ 250.00 5) Vehicle / field / maintenance US$ 3,000.00 6) Camp – office rent / furniture US$ 550.00 7) Food / water / beverages US$ 1,000.00 8) Field equipment US$ 2,000.00 9) Samples bags US$ 160.00 10) Sample preparation and assaying US$ 15,000.00 11) Consulting US$5,000.00 12) Others (15% contingency) US$ 5,900.00

Soil survey of selected areas

Goals: To establish sampling grids, in which controlled soil samples will be taken, prepared, analyzed and properly register producing anomaly maps for the different key elements. a) Time required: 2 month b) Work hours: 480 hours (8 weeks for 6 days, 10 hour / day) c) Estimated cost: US$ 64,882.00 1) Geologist (1) US$ 5,000.00 2) Sampler (technicians) (3) US$ 3,000.00 3) Local line cutter (6) US$ 315.00 4) Cook – camp keeper US$ 250.00 5) Vehicle / field / maintenance US$ 3,000.00 6) Camp – office rent / furniture US$ 550.00 7) Food / water / beverages US$ 1,000.00 8) Field equipment US$ 2,000.00 9) Sample bags US$ 350.00 10) Sample preparation and assaying US$15,000.00 11) Consulting US$5,000.00 12) Others (15% contingency) US$ 8,500.00

105

R&D of geochemical methods in the area

The author recommends that a modest budget of an additional US$15,000 will be included for methodological and testing work for SGH, biogeochemical and other geochemical surveys to be tested within the limits of the projects.

Say in total Can $ 215,000.00 for the definition of new targets and Can $ 4,700,000 in general for the next year.

106

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Berger, B. R. (1986): Descriptive Model of Low-sulphide Au-Quartz Veins; in Mineral Deposit Models, Cox, D.P. and Singer, D.A., Editors, U.S. Geological Survey, Bulletin 1693, pages 239-243.

Bohlke, J.K. and Kistler, R.W. (1986): Rb-Sr, K-Ar and Stable Isotope Evidence for the Ages and Sources of Fluid Components of Gold-bearing Quartz Veins in the Northern Sierra Nevada Foothills Metamorphic Belt; Economic Geology, Volume 81, pages 296- 422.

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Gebre-Mariam, M., Hagemann, S.G. and Groves D.G. (1995): A Classification Scheme for Epigenetic Archean Lode-gold Deposits; Mineralium Deposita, Volume 30, pages 408- 410.

Groves D.I. (1993): The Crustal Continuum Model for Late Archean Lode-gold Deposits of the Yilgarn Block, Western Australia; Mineralium Deposita, Volume 28, pages 366- 374.

Hodgson, C.J. (1993): Mesothermal Lode-gold Deposits; in Mineral Deposit Modeling, Kirkham, R.V., Sinclair, W.D., Thorpe, R.I. and Duke, J.M., Editors, Geological Association of Canada, Special Paper 40, pages 635-678.

Hodgson, C.J. and Hamilton, J.V. (1989): Gold Mineralization in the Abitibi Greenstone Belt: End Stage of Archean Collisional Tectonics; in The Geology of Gold Deposits: The Perspective in 1988, Economic Geology, Monograph, pages 86-100.

Kerrich, R.W. (1990): Mesothermal Gold Deposits: A Critique of Genetic Hypotheses; in Greenstone Gold and Crustal Evolution, Rober, F., Sheahan, P.A. and Green, S.B., Editors, Geological Association of Canada, NUNA Conference Volume, pages 13-31.

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Leitch, C.H.B. (1990): Bralorne; a Mesothermal, Shield-type Vein Gold Deposit of Cretaceous Age in South-western British Columbia; Canadian Institute of Mining and Metallurgy, Bulletin, Volume 83, Number 941, pages 53-80.

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Lowell, J.D. and Guilbert, J.M. (1970) “Lateral and Vertical Alteration -- Mineralization Zoning in Porphyry Ore Deposits.” Econ. Geology 65.4 : 373-408. Republished in its entirety in Hutchison and Ross Benchmark Volumes edited by W.C. Lacy on Exploration Geology (1982).

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Ministry of Energy, Mines and Petroleum Resources of British Columbia, Canada, 2007, Deposit Types/Mineral Deposit Profiles, Sedimented-hosted Cu deposits, http://www.em.gov.bc.ca/Mining/Geolsurv/MetallicMinerals/MineralDepositProfiles/profiles/e04.htm

Panteleyev, A. (1991): Gold in the Canadian Cordillera - a Focus on Epithermal and Deeper Environments, in Ore Deposits, Tectonics and Metallogeny in the Canadian Cordillera, B.C. Ministry of Energy, Mines and Petroleum Resources; Paper 1991-4, pages 163-212.

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Valls Alvarez, R.A., 1997, Evaluation of the HMC from Vallieres and Morne Organise in Northern Haiti with a Proposal for Verification Sites, private report for KWG Resources Inc.

Valls Alvarez, R.A., 2002, The Neita Fiscal Reserves. Preliminary sampling program. Private report for Unigold Resources Inc.

Valls Alvarez, R.A., 2003. Neita Lineament Study, Valls Geoconsultant. Internal report for Unigold Inc.

Valls Alvarez, R.A., 2006. Technical Report of the Geology and Mineral Resources of the Douvray – Blondin – Faille B Copper and Gold Prospects in Haiti. http://www.sedar.com/ DisplayCompany Documents.do?lang=EN&issuerNo=00002303.

108

Additional Requirements for Technical Reports on Development Properties and Production Properties This section is not applicable.

109

Date and Signature Page

To Accompany the Report titled “Technical Report of the Geology and Mineral Resources of the Neita Fiscal Reserve,

Dominican Republic.” for Unigold Inc. March 30th, 2008

I, Ricardo A. Valls, P. Geo, do hereby certify that:

1. I am currently employed as a consultant by:

Valls Geoconsultant.

1008-299 Glenlake Ave,

Toronto, Ontario, Canada

M6P 4A6

2. I am a Professional Geologist in the Provinces of Quebec and Ontario, member of the Ordre des Géologues du Québec under the category of Geologist (416), as well as a member of the Association of Professional Geoscientists of Ontario (0160), the Geological Association of Canada (A6129), the Mineralogical Association of Canada, the Association of Exploration Geochemistry, the International Association of Applied Geochemistry, the Prospectors and Developers Association of Canada, the Canadian Institute of Mining, Metallurgy, and Petroleum, the Prospectors and Developers Association of Canada, the Society of Economic Geologists, and the Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México.

3. I graduated 1983 from the Moscow Institute of Mineral Prospecting in Moscow, Russia, with a degree in Mining Engineer and Geologist, and in the same year I obtained the degree of M.Sc. in Economic Geology, and I have practiced my profession continuously for 25 years.

4. Since 1983 I have been involved in various projects world-wide (Canada, United States, Africa, Russia, Argentina, Haiti, Dominican Republic, Cuba, and Central America.). Projects included regional reconnaissance to local mapping, diamond drilling and RC-drilling programs, open pit and underground mapping, geochemical sampling and other exploration techniques pertaining to the study of base and precious metals, nickel-cobalt laterite deposits, and the search for diamonds, P.G.M., R.E.E., silver, industrial minerals, oil & gas, and other magmatic, hydrothermal, porphyritic, VMS and SEDEX ore deposits.

5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101") and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past work experience, I fulfill the requirements to be a “qualified person” for the purpose of NI 43-101.

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6. I am presently a Consulting Geologist and have been so since September, 1983.

7. Since 2002, I have visited the area described in this report in two separated occasions for the purpose of geological mapping, geochemical survey, and lineament analysis, verification of the base and precious metal potential, and to review and collect necessary information to complete this report.

8. I am responsible for the preparation of the technical report titled Technical Report of the Geology and Mineral Resources of the Neita Fiscal Reserve, Dominican Republic and dated on March 30th, 2008 (the “Technical Report”) relating to the studied area.

9. I have had prior involvement with the licenses that are the subject of the Technical Report.

10. In the disclosure of information relating to permitting, legal, title and related issues I have relied, and believe that I have a reasonable basis to rely, on information provided to me by personnel from the lawyer’s offices of Abogados García Campo with respect to the ownership of the license by the Client.

11. In the disclosure of environmental and related issues I have relied, and believes that he has a reasonable basis to rely, on information provided to me by personnel from Unigold Dominicana, S.A.

12. I am not aware of any material fact or material change with respect to the subject matter of this technical report which is not reflected in the report, the omission to disclose which would have made this technical report misleading.

13. I am a Qualified Person for Unigold Inc. in accordance with the application of Section 1.5 of NI 43-101.

14. I have read NI 43-101, the CIM definitions and guidelines for Mineral Resources Estimation and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument, guidelines, and form.

15. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on its web site accessible to the public of the Technical Report.

Dated this 30 Day of March, 2008. _________________________________ Signature of Qualified Person (s) Ricardo A. Valls Name of Qualified Person

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Appendix 1. Lineament Analysis of the Neita Fiscal Reserves

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Appendix 2. Structural Analysis of the lineaments.

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Main Lineaments

Secondary Lineaments

Circular Structures

Tertiary Lineaments

Total Amount of Intersections

Strain Analysis

ID

Complexity

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Appendix 3. Circular Structures at the Neita Fiscal Reserves.

Appendix 4. Rose Diagram analysis

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Appendix 5. Strain Analysis.

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Appendix 6. Target zones just by lineaments.

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Appendix 7. Certificate IRAM ACME Chile

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Appendix 8. Certificate IQNet ACME Chile

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Technical Report of the Geology and Mineral Resources of the Neita Fiscal Reserve, Dominican Republic.

Unigold Inc.

2115 des Laurentides, Suite 200 Laval, Québec H7M 4M2

Canada