Mountain Lake - 2010 Drilling Highlights

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Valentine Lake - 2010 Highlights

Leprechaun Deposit - Drilling and analytical results through October 19

hole VL-10-165 intersected 38.32 g/t or 1.12 ounces per short ton (oz/ton) Au over a true width of 9 m from a starting depth of 164 m below surface

VL-10-165 returned the highest grade intersection ever recorded at Valentine Lake with 321.05 g/t (9.36 oz/t) Au over a true width of 0.8 m, including 506.15 g/t (14.76 oz/t) Au over a true width of 0.4 m (see core photo lower left)

VL-10-160, 75 m southwest of VL-10-165, returned a broad interval with 6.79 g/t Au over a true width of 25 m from depth of 152 m and includes 19.43 g/t Au over 7 m and two high grade intersections of >105 g/t (3 oz/t) Au both over true widths of 0.5 m

VL-10-205, drilled between VL-10-160 and -165, returned 23.98 g/t Au over 4 m within a broader interval of 3.92 g/t Au over 27.2 m from depth of 162 m

VL-10-206, drilled 25 m northeast of VL-10-205 along strike, returned 2.06 g/t Au over 23 m from depth of 161 m

VL-10-225, drilled in the main zone from the barge on Leprechaun Pond (photos left), returned 6.53 g/t Au over a true width of 19 m from depth of 64 m

VL-10-226 returned 6.94 g/t Au over a true width of 17 m from depth of 78 m

VL-10-211, drilled in the main zone from the barge, returned 2.38 g/t Au over a true width of 38 m from depth of 44 m

VL-10-193 intersected 9.43 g/t Au over 7.8 m from depth of 42 m which represents an extension to the lens of high grade mineralization on strike to the northeast. See Deposit area map (left) showing drill holes and mineralized corridor.

VL-10-164, 50 m southwest of VL-10-160, intersected 9.35 g/t Au over 5.6 m from depth of 126 m

VL-10-223, drilled in the main zone from the barge, returned 7.45 g/t Au over a true width of 7.7 m from depth of 97 m

VL-10-170 intersected 47.19 g/t (1.38 oz/t) Au over 2.5 m from depth of 9.5 m below surface

VL-10-190 intersected 33.54 g/t or 0.98 oz/ton Au over 2.65 m within a 4 m interval of 22.75 g/t from a depth of 77 m

VL-10-186 intesected 9.61 g/t over 2m from depth of 2 m, 2.57 g/t over 6 m from depth of 18 m, and 1.53 g/t over 5 m from depth of 39 m

VL-10-169 intersected 2.27 g/t Au over 10 m from depth of 12 m

VL-10-159 intersected 2.78 g/t Au over 22 m from depth of 32.7 m

VL-10-156 intersected 4.43 g/t Au over 20.8 m from depth of 17.5 m

VL-10-154 intersected 8.67 g/t* Au over 7.4 m from depth of 63.8 m

VL-10-147 intersected 3.57 g/t Au over 12 m starting at a depth of 105m and 8.27 g/t Au over 4.9m starting at a depth of 114.3 m

VL-10-139 intersected 3.94 g/t Au over 9.0 m starting at a depth of 45 m

VL-10-138 intersected 2.97 g/t Au over 9.38 m starting at a depth of 64 m

2010 drilling confirmed the Leprechaun Deposit is open at depth to the SW, and to the NE where historical drilling encountered mineralization over 2 km

Note: Duplicate check assays were done on all assays above 30 g/t; and all core intercepts referenced above are true widths

Metallurgical Work

Metallurgical recovery rates are typically one of the largest risks facing the development of a mining project and addressing these risks early can help establish the economic viability of a mining project. In the case of the Leprechaun Deposit, results from initial metallurgical test work demonstrate gold recoveries exceeding 90% overall with at least 45% recoverable by low cost gravity circuit. These results are very encouraging and will be used in the preliminary economic assessment.

All of the samples were sent to Eastern Analytical Laboratory Ltd. in Springdale, Newfoundland. Samples were assayed using lead collection fire assay with AA (atomic absorption) finish. Results from fire assay are used for drill hole planning only. Duplicate assays were made on all assays above 30 g/t. Assay results for the planned updated resource estimate will be determined by a metallic screening process to be conducted at a later date.

About the Leprechaun Gold Deposit

An updated National Instrument (NI) 43-101 compliant resource estimate for the Leprechaun Deposit was announced on December 16, 2010, which is based on 26 historical holes and an additional 92 holes drilled in 2010. The estimate includes the first Measured and Indicated resource that has been developed within the Property and is a major advance for the project. Approximately 74% (2,400,000 tonnes) of the Measured and Indicated resource, containing 205,000 ounces of gold, is located within 150 meters (m) of the surface and is potential open pit material.

Resource Estimate

The NI 43-101 compliant gold resource on the Leprechaun Deposit includes:

Measured (M) Resource of 2,104,000 tonnes at 2.768 g/t for 187,000 ounces;

Indicated (I) Resource of 1,180,000 tonnes at 2.363 g/t for 90,000 ounces;

M & I combined total of 3,284,000 tonnes at 2.622 g/t for 277,000 ounces

Inferred Resource of 4,409,000 tonnes at 2.007 g/t for 285,000 ozs

The above mineral resource estimate was prepared by Sam Shoemaker, MAusIMM, of Micon International, the independent qualified person (QP) for the mineral resource estimate and is based on a 0.5 g/t gold minimum cut-off. The kriged gold estimate was used to determine the mineral resource and individual assays were cut to 76 g/t gold. For more information visit the Valentine Lake page.