**Progress      Report**

**Lucky      Strike M. C.# 530018**

**Similkameen      Region**

**Jura,      B.C Project Area**

**Prepared      by:                       **
**James      W. McLeod, P. Geo. (BC)**

**For:                                           **
**Nilam      Resources Inc.**

**Suite      503,42 Camden Street **

**Toronto,      Ontario MSV 1V1**

| **Content:                              ****Text** | **Page                2** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
| **Figure                1**                                                                                                                                                                              | **Page                5** |
| **Figure                2**                                                                                                                                                                              | **Page                6** |
| **Figure                3**                                                                                                                                                                              | **Page                7** |
| **ICP                Analyses**                                                                                                                                                                          | **Page                8** |
| **Geochemical                Analyses**                                                                                                                                                                  | **Page                9** |

**Dated:        May 1, 2006**

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**Introduction:**

**The      following progress report describes the Phase 1 exploration program**
**conducted      on the Lucky **
**Strike**
**      mineral claim No. 530018, Similkameen Region, Jura, B.C. Project Area during      April, 2006.**

**Overview:**

**The      Lucky Strike mineral claim, tenure # 530018 consists of 6 mineral cells**
**in      one contiguous group covering an area of 310 acres. The mineral claim      is**
**      100% owned by the Company who commissioned the Phase 1 exploration program      described in this report. The author previously recommended that the Phase      1-3      work programs be conduced on the property in his report to **
**the      Company dated, April 10, 2006. The recommendation outlined a      possible**
** **
**mineral      exploration scenario of three phases of preliminary exploration      work**
**      with successive stages being contingent on the results obtained by the preceding      one.**

**The      mineral property was accessed by traveling north-northeast of      Princeton,**
**      British Columbia, along the Osprey Lake road for 6 miles. At the Jura, B.C.      **
**cut-off**
** **
**the      **
**first      dirt road traveling south of the paved road offers access to the**
**mineral      claim.**

**Current      **
**Work      **
**Program**

**The      current exploration work program was carried-out over the Lucky      Strike**
** **
**mineral      claim. The work consisted of reconnaissance prospecting,**
*** ***
**hand      **
**trenching      and sampling of the mineralized material encountered during      the**
** **
**program.      The work program was conducted by New Zone Resources Ltd.      of**
**      Vancouver, B.C. during the period April 18-25, 2006.**

**Results:**

**The      rock exposures encountered at the four sample locations, Lucky Strike      l**
**-4      (see Figure 3) are of **
**alter**
**ed**
** **
**and      oxidized crystalline volcanic and/or tuffaceous clastic units thought to be      members of the upper Triassic age Nicola Group:**

----

| **Sample**** ****Number**** **               | **T****ype****.**             | **Remarks**                                                       | **Description**                                                                       |
|--------------------------------------------------------|-------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                   |                          |                                                              |                                                                                  |
| **Lucky                Strike 1**                      | **Grab-chip**                 | **Dump,                possibly****an                old trench** | **Fine                grained,****brown,                rusty tuff.**                 |
|                                                   |                          |                                                              |                                                                                  |
| **Lucky** **Strike                2***** *** | **Grab-chip**                 | **Small                shaft? or trench**                         | **Clastic,                fragmental****flow,                rusty color.**** ** |
|                                                   |                          |                                                              |                                                                                  |
| **Lucky                Strike 3**                      | **Gr                ab-chip** | **Trench**                                                        | **Rusty                flow rock.**                                                   |
|                                                   |                          |                                                              |                                                                                  |
| **Lucky                Strike 4**                      | **Grab-chip**                 | **Trench**                                                        | **Rusty                crystal tuff.**                                                |

**The      attached induction coupled plasma (ICP) and geochemical analyses for the above      listed samples reveal a number of anomalous results. All four of the samples      are      anomalous in copper where the threshold value for the Nicola volcanic rocks      in      this area is likely in the range of 150 ppm - 400 ppm (parts per million).      Two      samples LS 2 & 3 are >1% copper and gold values of 131 ppb and 60 ppb      (parts per billion), respectively are also anomalous. Sample LS 2 is also higher      in molybdenum and tungsten, 251 ppm and 140 ppm,      respectively.**

**Conclusions:**

**A      zone(s) of anomalous copper and minor gold values has been revealed during      the      current reconnaissance prospecting trenching and sampling program conducted      over      the Lucky Strike mineral claim. On the basis of a confirmation of historical      reports of copper (gold) mineralization, the author presents, for the Company's      consideration fire following recommendations.**

**Recommendations:**

**The      following Phase 2 program was previously presented to the Company by the author,      April 10, 2006 and may be undertaken by the Company when and if they are in      a      position to do so.**

----

**Phase      2**

**Magnetometer      and VLF electromagnetic, grid controlled surveys over the **
**areas      of interest determined by the Phase 1 survey. Included in this      estimated**
**      cost are transportation, accommodation,**
** **
**board,      grid **
**installation,**
**      both of the surveys, maps and report.**

**Total**
**$12,500**

**Respectfully      submitted;**

**/s/      James W. McLeod, P. Geo.**

**James      W. McLeod, P. Geo.**

**Qualified      Person**

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| **ASSAYERS****CANADA**   | **Assayers              Canada**8282                Sherbrooke St.Vancouver,                B.C.V5X                4R6Tel:                (604) 327-3436Fax:                (604) 327-3423 |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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***Geochemical      Analysis Certificate***
**6V-0562-RG1**

**New      Zone Resources      Ltd.                                                                             **

*We      hereby certify *

| **Sample**                  |   | **Au**  | **Cu** |   |
|-----------------------------|--------|---------|--------|--------|
| **Name**                    |   | **ppb** | **%**  |   |
| Lucky                Strike | 1      | 36      |   |   |
| Lucky                Strike | 2      | 131     | 1.38   |   |
| Lucky                Strike | 3      | 60      | 1.02   |   |
| Lucky                Strike | 4      | 52      |   |   |
| *Au5                        |   | 1394    |   |   |
| *BLANK                      |   | <1   |   |   |

*Certified      by       *