E & E

Reported that drill hole V06-06 was drilled to a depth of 1,162 feet, where the hole was terminated due to severe caving. The mud rotary portion of the hole was drilled to a depth of 760 feet, and from 760 feet to 1,162 feet was cored. Lower-plate dolomite was encountered at a depth of 650 feet. From 760 feet to the bottom of the hole, decalcified micritic limestones, muddy limestones, black carbonaceous limestones, mudstones, and limestones with significant debris flows and collapse breccias occur, with some intervals containing up to 5% pyrite. The hole contained a 20-foot interval from 110 to 130 feet averaging 356 ppb gold.

Reported that during the fall of 2006, CMQ completed 3 holes totaling 4,248 feet of drilling, including 1,441 feet of coring in the Valmy Hill focus area approximately two miles north of Hot Springs North. CMQ plans to drill four more holes in 2007. Drilling is planned to be completed by Nov. 15/07

Geophysical surveys located an area of apparent strong resistivity in the SE claims. Follow-up trenching showed values of 0.34 - 3.43 g/t Au. Previous work identified another area of strong apparent resistivity across the N part of the property. A drill program to test these anomalies was planned for 1997.