ABITIBI EAST - SHALLOW RIVER

Announced that Wedge GCAE07-16A returned an intercept of 0.41% Zn, .05% Pb and .02% Cu over 23.10 m drilled width from 571 m. Another intersection further downhole returned 0.47% Zn, .03% Pb and .09% Cu over 20.2 m drilled width from 602.8 m. Wedge GCAE07-16B returned an intercept of 0.47% Zn, .07% Pb and .09% Cu over a drilled width of 12.7 m from 568.2 m which included 2.48% Zn and 0.54% Cu over 1.1 m. A second broader intercept further downhole returned 0.33% Zn, .04% Pb and .17% Cu over 48.3 m drilled width from 591 m. Drilling to date suggests that the tenor of mineralization improves with depth and thus the potential for a VMS deposit exists both on strike and at depth.

Announced the discovery of a wide zinc mineralized zone in a geological setting similar to the world class Kidd Creek Deposit. The new discovery was found with the first two holes drilled at depth on one of a number of targets. The results suggest that zinc mineralization is increasing in tenor to depth. The first hole was an extension of an earlier drilled hole, Hole GCAE-07-02. This hole, drilled at azimuth 195° and dip -50°, intersected 1.59% Zn, 0.41% Pb, and 0.02% Cu over 12.10 m of core length from 391.5 to 403.6m. The second hole GCAE-07-16, was drilled on the same section with a collar 100 metres to the north behind hole GCAE-07-02 and with a dip of -70°. This deeper hole intersected 2.00% Zn, 0.55% Pb, and 0.01% Cu over 10.0 m of core length from 668 to 678 m, within a longer intercept of 1.61% Zn, 0.38% Pb, and 0.02% Cu over 20.9 m of core length from 668 to 688.9 m. This larger and more mineralized zone is more than 300 m down dip of the zone in hole GCAE-07-02. In addition, the deeper hole not only intersected stringer and fracture filled zinc mineralization, but also what appears to be replacement style mineralization. This is the first hole where zinc rich bands appear to be replacing bedding. This style of mineralization may be an indicator of increased proximity to a massive sulphide zone.

Announced that drilling on the Abitibi East Property has identified VMS style zinc, lead, copper mineralization over at least 1.5 km of strike length in an altered volcano-sedimentary sequence that locally contains massive sulphide clasts. Widely spaced drilling will continue to define the mineralized zone in the basin on the property.