Elephant Lake

The company has been granted an option to acquire 100-percent interest in the 15 claim-unit Elephant Lake property in the Tilly Lake and Powell Lake Areas of; Ontario. The property is south of and contiguous with the Company's Tilly Lake Property. Previous grab samples taken on the on the property have produced values as high as 14.4% Copper, .89 oz./ tonne Gold and .31% Molybdenum (MDMN Resident Geologist Report 1993).

Consideration for acquisition of the property consists of one option payment of $5,000 cash and the issuance of 80,000 common shares upon regulatory approval, payable in four tranches of 20,000 common shares, in stages over an 18-month period. A 2-per-cent net smelter return is retained by the optionor, 1 per cent of which may be purchased by the company at any time for $1-million, with the remaining 1 per cent being subject to a right of first refusal. Sufficient exploration expenditures must be incurred to maintain the property in good standing

Two diamond drill holes were completed on the Elephant Lake property in the fiscal year 2006. Hole EL-06-1 was drilled southward 250.0m that intersected several porphyry zones containing disseminated pyrite, minor chalcopyrite and numerous quartz veins containing molybdenite. One 0.2m vein assayed 2700ppm Mo (0.27% Mo or approximately 6.0 lbs/ton Mo) and another 0.2m vein assayed 1065ppm Mo (0.11% Mo or approximately 2.4 lbs/ton Mo). Numerous other veins assayed 166ppm, 235ppm, and 357ppm Mo. These veins are scattered over an 80.0m section of the hole. The disseminated pyrite contained anomalous copper values that ranged from 783ppm - 4010ppm Cu (0.47% Cu) in 5.0m - 10.0m wide porphyry zones. Hole EL-06-2 located 400.0m east of hole EL-06-1, cut 25.0m wide porphyry with disseminated pyrite with anomalous copper ranging from 891ppm - 1415ppm Cu. The porphyry and quartz veins contain high tungsten values of 20ppm - 400ppm which is reflected in the chemistry of some other vein systems in the area.