Rusty Ridge (Rare Earth Elements) Property Summary

The Rusty Ridge Property near Bunyan's Cove in East-Central Newfoundland consisted of diamond drilling in two holes totaling 1093.3 meters. This Phase 1 drilling tested two areas of the existing grid based on historic exploration including geological mapping, ground prospecting and geochemical surveys, and ground geophysical surveys.

Drill hole RR10-01 was drilled vertically to 719.3 meters and tested an historic coincident magnetics and gravity anomaly in the southern part of the grid at 8150N and 9950E. Historicinterpretation of the gravity anomaly indicated a large, tabular-shaped and steeply-dippingdensity anomaly occurring from 75 meters to at least 500 meters vertical depth.

The tabular shaped body also correlated with a high-magnetic susceptibility zone at 150 and 300 meters vertical depth. The drill hole intersected a thick repetitive package of subaerial mafic flows and interflow sediments underlain by a thick hematitic, cobble to boulder conglomerate and lesser siltstone, which is in turn underlain by another thick sequence of mafic volcanic rocks.

The entire volcano-sedimentary sequence appears to be conformable and is intruded by two significant magnetic, mafic intrusions. The upper mafic intrusion (243.3-300.72 meters) correlates well with the upper margin of the gravity anomaly and coincident magnetics anomaly. The lower mafic intrusion occurs between 480.83-490.25 meters and is approximately coincident with the central part of the gravity anomaly.

Rusty Ridge IP Project Report