WELBAR PROJECT    

The Welbar Project, comprised of the Company's 100% interest in the Myrtle-Proserpine (459 hectares) and the Promise Properties (2,125 hectares) is located near Wells and Barkerville, BC.

The Company's Welbar properties - Myrtle/Proserpine and Promise - are strategically located adjacent to International Wayside Gold Mines Ltd.'s Cariboo Gold Project, within the 30-kilometre long, northwest trending Wells-Barkerville Gold Belt. Historical gold production from the Cariboo Gold Fields since the gold rush of 1860 is over 3.3 million ounces of placer and lode gold, including more than 1.2 million ounces of lode gold produced from the Cariboo Gold Quartz, Island Mountain, and Mosquito Creek mines. The Company's properties are adjacent to or very near these past producers. In March 2000, a new discovery was announced, located within 180 metres of the Company's Myrtle claims.

The Cariboo Gold Fields are located within the extensively folded and faulted BarkervilleTerrane consisting of continental shelf and slope clastic, carbonate and volcanoclastic rocks that exhibit regional chlorite prograde metamorphism. The major gold deposits occur adjacent to north striking faults at or near the contact of Baker (calc-quartzites and carbonates) and Rainbow (argillites and quartzites) rocks, which are characterized by local hydrothermal alteration that has bleached, silicified, chloritized, pyritized and ankeritized the formations. The brittle Rainbow rocks have been crushed and broken by enclosing tectonic forces resulting in favourable preparation for mineralizing fluid penetration and resulting gold bearing veins and stockworks. The plastic Baker rocks tended to yield to enclosing tectonic forces and formed hydrothermal fluid bearers at the Rainbow rock contact, resulting in the formation of replacement style gold deposits within the chemically reactive Baker carbonates.