GREENWOOD PROJECT     Lexington

The Lexington and Lone Star properties straddle the Canadian/US border.

The geological setting of the Lexington and Lone Star properties is dominated by a major 600 metre wide tectonic shear zone, the No. 7 Fault. The No 7 Fault is bounded by footwall and hanging wall sheets of serpentinite separated by a "dacitic" package of altered sediments, volcaniclastics and porphyries. This package of rocks is continuous for over 5 kilometres and hosts eleven known gold-copper mineralized zones shown as red ovals in the next figure; the Lexington-Grenoble Deposit in shown in yellow.

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The copper-gold mineralization at the Lexington-Grenoble Deposit occurs as multiple stacked zones (typically 2-6m thick) of massive pyrite with lesser chalcopyrite (copper) veins, veinlets and disseminations that carry free gold. To date the deposit falls within an area 525 metres long, 20 to 75 metres wide and 2 to 25 metres thick.

The deposit has received a total of five drill campaigns since 2003 including 14,765m of diamond drill core in 84 drill holes. These campaigns represented systematic infill and step out programs that have essentially quadrupled the size of the deposit. The deposit is now defined by diamond drill holes at 15m drill centers. The results from the 2007 drilling campaign are pending. The extent of the deposit is still not been fully defined. Further exploration drilling is warranted in an effoprt to expand its resource.

The 2003, 2004, 2005 and 2007 drill programs were planned and supervised by Paul Cowley, P.Geo. and Bruce Laird, P.Geo. Qualified Persons for the Company. Quality control measures including Company inserted standards, re-runs, and selected metallic screen assays were implemented in the program. All core is HQ in size, with half-core samples analyzed by standard fire assay at Eco Tech Laboratory Ltd. in Kamloops, BC.

P&E Mining Consultants Inc. completed (October 2006) an updated resource estimate including the 2005 drilling based on the same cut-off of 6 g/t gold equivalent. The Measured and Indicated Resource is 297,000 tonnes grading 8.36 g/t gold and 1.35% copper or 12.17 g/t gold equivalent or 113,000 ounces of gold equivalent. The Inferred Resource is 45,000 tonnes grading 6.58 g/t gold and 1.03% copper or 9.5 g/t gold equivalent, at the same cut-off. The gold equivalent is based on a gold price of US$494/oz and copper price of US$2.04/lb, based on a 24 month trailing average at August 31, 2006., to obtain a conversion factor of % copper x 2.832 + gold g/t = Au Eq. A summary table of the resources attributed to the Greenwood Gold Project can be found under Projects/Greenwood Project.

Mining of a 10,000 bulk sample was completed during the second quarter, with the Mine Operating Permit for operating at 72,000 tonnes per annum received from the Province of British Columbia on May 8, 2008.