CANADIAN INSTITUTE OF MINING,
                            METALLURGY AND PETROLEUM

                                CIM STANDARDS ON
                         MINERAL RESOURCES AND RESERVES

                           DEFINITIONS AND GUIDELINES

                                 Prepared By The

                             CIM Standing Committee

                             On Reserve Definitions


                     Adopted by CIM Council August 20, 2000


                                   John Postle
                                Bernie Haystead
                                  Graham Clow
                                    Dan Hora
                                 Marcel Vallee
                                 Maureen Jensen
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INTRODUCTION

The Committee's proposed standards establish  definitions and guidelines for the
reporting of Exploration Information,  Mineral Resources and Mineral Reserves in
Canada  and are  identified  as the  "CIM  Standards"  and  referred  to as such
hereafter in this document.  To provide  additional  clarification  to Qualified
Persons,  guidelines  have been included with the  respective  definitions.  All
definitions  are  printed in bold text,  whereas the  guidelines  are printed in
italics.  The CIM Standards are applicable to all minerals including  industrial
minerals, diamonds and other gemstones. Reserve definitions for bitumen, natural
gas and oil are not  included  in these  Standards.  The CIM  Standards  are not
intended  to  cover  mineral  inventory  estimates  that  will  be  reported  to
government agencies.

CIM STANDARDS

The CIM Standards  presented herein provide guidelines for the classification of
Mineral  Resource and Mineral  Reserve  estimates into various  categories.  The
category  of an  estimate  implies  confidence  in  the  geological  information
available on the mineral deposit;  the quality and quantity of data available on
the deposit; the level of detail of the technical and economic information which
has been generated  about the deposit,  and the  interpretation  of the data and
information.

HISTORY

The Canadian  Institute of Mining,  Metallurgy  and  Petroleum  (CIM)  published
"Mineral  Resource  Reserve   Classification:   Categories,   Definitions,   and
Guidelines" in September 1996. This report, prepared by the CIM Ad Hoc Committee
on Reserve  Definitions,  is now  widely  used as a  reference  and a system for
classifying  and  reporting   Resources  and  Reserves  in  Canada.   Since  the
publication  of that report  there have been several  meetings  sponsored by the
Council of Mining and Metallurgical  Institutes (CMMI) of which CIM is a member,
to develop a  Resource/Reserve  classification,  definition and reporting system
that would be similar in Australia,  Canada, Great Britain, South Africa and the
United States.

The recent  history of the  development  of Resource and Reserve  definitions in
Canada  was  discussed  in the Ad Hoc  Committee  Report  and is  summarized  as
follows:


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o     The most widely accepted  Canadian reserve  classification  system through
      the  period  1970 to  date  has  been  the one  required  by the  Canadian
      Securities Administrators (CSA) under National Policy 2-A.

o     Geological Circular 831,  Principles of a Resource/Reserve  Classification
      for Minerals,  which was published in 1980 by the U.S. Bureau of Mines and
      the U.S.  Geological  Survey,  introduced  a  classification  system  that
      distinguished between resources and reserves.

o     The Australian Code for Reporting of Identified  Mineral Resources and Ore
      Reserves (the JORC code), first published in 1989, was similar to the U.S.
      system  in  structure   but   included   some   important   modifications,
      particularly  by  including  reference  to the  competence  of the  person
      responsible  for a resource  or  reserve  estimate.  This code  prescribed
      reporting requirements.

o     In 1991,  CIM,  through its Mineral  Economics  Society,  formed a Special
      Committee on Reserve Definitions.  The report of the Special Committee was
      presented  to CIM Council in May 1994 and  published in October  1994.  In
      June 1994,  CIM  established  an Ad Hoc Committee to review and revise the
      Special Committee Report.

o     The Society of Mining  Engineers in the United  States issued "A Guide for
      Reporting Exploration Information, Resources and Reserves" in 1994.

The Ad Hoc Committee  report was accepted by CIM Council in February 1996 and at
that time Council  established a Standing  Committee (the  Committee) on Reserve
Definitions  administered by the Mineral Economics Society. The Ad Hoc Committee
Report was published in the September 1996 CIM Bulletin.

In  1993,   CMMI   sponsored   an   initiative   to  obtain   consensus  on  the
resource/reserve  definitions used in Australia,  Canada,  Great Britain,  South
Africa and the United States. The CMMI reserve definition  committee met in 1994
and again in November 1997 in Denver,  Colorado.  At the Denver meeting in 1997,
the representatives  agreed on definitions for the major Mineral Resource and/or
Reserve  categories.  The proposed CMMI  definitions  were  published in the CIM
Bulletin in February 1998.


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<PAGE>

The Australasian  Institute of Mining and Metallurgy  (AusIMM) and the Joint Ore
Reserves   Committee  (JORC)  of  the  AusIMM,   the  Australian   Institute  of
Geoscientists  and the Minerals  Council of Australia  published a revised draft
JORC Code in July 1998. This document  proposed the use of the CMMI definitions,
with some wording changes. In January 1999, the JORC Code was published, to take
effect in September 1999. The SME published revised  definitions in January 1999
which follows the CMMI definitions. These definitions have have not been adopted
for use in the United States by the Securities and Exchange Commission,  at this
point.

The United Nations Economic  Commission for Europe (UN-ECE)  published a "United
Nations  International  Framework - Classification  for  Reserves/Resources"  in
November 1996. This report is very complex and utilizes ten different categories
for  classifying  resources  and  reserves.  In  October  1998,  CMMI and UN-ECE
representatives  met  and  agreed  to use the  CMMI  definitions  in the  UN-ECE
classification system for the five categories of resources and reserves with the
UN-ECE  definitions for the remaining UN-ECE  categories being retained and used
for reporting national mineral inventories.

In Canada in June 1997, the Ontario Securities  Commission (OSC) and the Toronto
Stock Exchange (TSE)  established  the Mining  Standards Task Force (MSTF).  The
MSTF released a draft report in June 1998 and a final report  entitled  "Setting
New Standards" in January 1999. One of the primary  recommendations  of the MSTF
Report was the "adoption, by the Canadian Securities  Administrators in National
Instrument 43-101, of the CIM guidelines for the estimation,  classification and
reporting of resources and reserves,  as amended from time to time".  On July 3,
1998,  the Canadian  Security  Administrators  (CSA)  published a first draft of
National  Instrument  43-101 (NI 43-101) as the  replacement for National Policy
2-A and National  Policy 22. A second draft was published on March 27, 2000. The
CIM and the CIM Standing Committee have provided  substantial  commentary on the
43-101 drafts,  particularly in the area of Mineral Resource and Mineral Reserve
definitions.

The following proposed CIM standards include many significant changes to the CIM
Ad Hoc Committee Report including the inclusion of modified CMMI definitions for
Resource and Reserve  categories  and the  elimination  of the Possible  Reserve
category. In addition, these


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proposed  standards have used the JORC Code description  material for guidelines
for  reports  that  include  discussion  of  tonnage  and  grades of mine  fill,
stockpiles,  remnants,  pillars and low grade  mineralization  with  appropriate
modifications.  The proposed CIM Standards  also  reference  Paper 88 -21 of the
Geological Survey of Canada for the reporting of coal resources and reserves and
the  report,  Reporting  of  Diamond  Exploration  Results,  Identified  Mineral
Resources  and  Ore  Reserves  published  by  the  Association  of  Professional
Engineers, Geologists and Geophysicists of the Northwest Territories.

DEFINITIONS

Throughout the CIM Standards,  where  appropriate,  'quality' may be substituted
for 'grade' and 'volume' may be substituted for 'tonnage'

Qualified Person

Mineral Resource and Mineral Reserve  estimates and resulting  Technical Reports
must be  prepared  by or under the  direction  of,  and dated and  signed  by, a
Qualified Person.

A "Qualified Person" means an individual who is an engineer or geoscientist with
at least five years of  experience  in mineral  exploration,  mine  development,
production  activities  and  project  assessment,  or any  combination  thereof,
including experience relevant to the subject matter of the project or report and
is a member in good standing of a Self-Regulating Organization.

The Qualified  Person(s) should be clearly  satisfied that they could face their
peers and demonstrate competence and relevant experience in the commodity,  type
of deposit and situation under  consideration.  If doubt exists, the person must
either seek or obtain opinions from other  colleagues or demonstrate  that he or
she has  obtained  assistance  from  experts in areas where he or she lacked the
necessary expertise.

Determination  of what constitutes  relevant  experience can be a difficult area
and  common  sense has to be  exercised.  For  example,  in  estimating  Mineral
Resources for vein gold mineralization,  experience in a high-nugget,  vein-type
mineralization  such as tin, uranium etc. should be relevant whereas  experience
in massive base metal deposits may not be. As a second example,


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for a person to  qualify  as a  Qualified  Person in the  estimation  of Mineral
Reserves  for  alluvial  gold  deposits,  he or she would need to have  relevant
experience in the evaluation and  extraction of such deposits.  Experience  with
placer deposits containing minerals other than gold, may not necessarily provide
appropriate relevant experience for gold.

In addition to experience  in the style of  mineralization,  a Qualified  Person
preparing or taking  responsibility  for Mineral  Resource  estimates  must have
sufficient  experience  in the sampling,  assaying,  or other  property  testing
techniques that are relevant to the deposit under  consideration  in order to be
aware  of  problems  that  could  affect  the  reliability  of  the  data.  Some
appreciation of extraction and processing  techniques applicable to that deposit
type might also be important.

Estimation of Mineral Resources is often a team effort,  for example,  involving
one person or team  collecting the data and another person or team preparing the
Mineral  Resource  estimate.  Within this team,  geologists  usually  occupy the
pivotal  role.  Estimation  of Mineral  Reserves is almost  always a team effort
involving  a number of  technical  disciplines,  and  within  this  team  mining
engineers  have an  important  role.  Documentation  for a Mineral  Resource and
Mineral  Reserve  estimate must be compiled by, or under the  supervision  of, a
Qualified Person(s),  whether a geologist,  mining engineer or member of another
discipline.  It  is  recommended  that,  where  there  is a  clear  division  of
responsibilities   within  a  team,   each   Qualified   Person   should  accept
responsibility  for  his  or  her  particular  contribution.  For  example,  one
Qualified  Person  could accept  responsibility  for the  collection  of Mineral
Resource data, another for the Mineral Reserve estimation  process,  another for
the mining study,  and the project  leader could accept  responsibility  for the
overall  document.  It is important that the Qualified Person accepting  overall
responsibility  for a Mineral  Resource  and/or  Mineral  Reserve  estimate  and
supporting documentation, which has been prepared in whole or in part by others,
is satisfied that the other  contributors are Qualified  Persons with respect to
the work for which they are taking  responsibility and such persons are provided
adequate documentation.

Preliminary Feasibility Study

The CIM Standards describe completion of a Preliminary  Feasibility Study as the
minimum  prerequisite  for  the  conversion  of  Mineral  Resources  to  Mineral
Reserves.


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<PAGE>

A Preliminary  Feasibility Study is a comprehensive  study of the viability of a
mineral  project  that has advanced to a stage where the mining  method,  in the
case of underground  mining,  or the pit  configuration,  in the case of an open
pit, has been established,  and where an effective method of mineral  processing
has been  determined.  This Study must  include a  financial  analysis  based on
reasonable  assumptions  of  technical,  engineering,  operating,  and  economic
factors and  evaluation of other  relevant  factors which are  sufficient  for a
Qualified Person acting  reasonably,  to determine if all or part of the Mineral
Resource may be classified as a Mineral Reserve.

Exploration Information

For the  purposes  of this  report,  Exploration  Information  is a term used to
describe  information  derived from initial activities  undertaken to locate and
investigate a prospect or deposit and  resulting  estimates of tonnage and grade
that  cannot be  classified  as a Mineral  Resource or a Mineral  Reserve.  If a
Qualified  Person  reports  Exploration  Information  in the form of tonnage and
grade, it must be clearly stated that these estimates are conceptual or order of
magnitude.

It is  recognized  that in the  review and  compilation  of data on a project or
property, previous or historical estimates of tonnage and grade, not meeting the
minimum  requirement  for  Mineral  Resources,  may  be  encountered.  If  these
estimates are  referenced,  it must be clearly  stated that these  estimates are
order-of-magnitude  and expressed so as not to misrepresent  them as an estimate
of Mineral Resources or Mineral Reserves.

Mineral Resource

Mineral Resources are sub-divided, in order of increasing geological confidence,
into Inferred,  Indicated and Measured categories.  An Inferred Mineral Resource
has a lower  level of  confidence  than that  applied  to an  Indicated  Mineral
Resource. An Indicated Mineral Resource has a higher level of confidence than an
Inferred  Mineral  Resource but has a lower level of confidence  than a Measured
Mineral Resource.


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<PAGE>

A Mineral Resource is a concentration or occurrence of natural, solid, inorganic
or  fossilized  organic  material  in or on the  Earth's  crust in such form and
quantity and of such a grade or quality  that it has  reasonable  prospects  for
economic extraction.  The location,  quantity, grade, geological characteristics
and continuity of a Mineral  Resource are known,  estimated or interpreted  from
specific geological evidence and knowledge.

The  term  Mineral  Resource  covers  mineralization  and  natural  material  of
intrinsic  economic  interest which has been  identified  and estimated  through
exploration and sampling and within which Mineral  Reserves may  subsequently be
defined by the  consideration  and  application of technical,  economic,  legal,
environmental,  socio-economic and governmental  factors. The phrase 'reasonable
prospects for economic  extraction'  implies a judgement by the Qualified Person
in respect  of the  technical  and  economic  factors  likely to  influence  the
prospect  of  economic  extraction.  A  Mineral  Resource  is  an  inventory  of
mineralization  that under realistically  assumed and justifiable  technical and
economic conditions,  might become economically  extractable.  These assumptions
must be presented explicitly in both public and technical reports.

Inferred Mineral Resource

An  'Inferred  Mineral  Resource'  is that part of a Mineral  Resource for which
quantity  and grade or  quality  can be  estimated  on the  basis of  geological
evidence  and  limited  sampling  and  reasonably  assumed,  but  not  verified,
geological and grade  continuity.  The estimate is based on limited  information
and sampling  gathered  through  appropriate  techniques  from locations such as
outcrops, trenches, pits, workings and drill holes.

Due to the uncertainty which may attach to Inferred Mineral Resources, it cannot
be assumed that all or any part of an Inferred Mineral Resource will be upgraded
to  an  Indicated  or  Measured  Mineral  Resource  as  a  result  of  continued
exploration.  Confidence in the estimate is insufficient to allow the meaningful
application  of technical and economic  parameters or to enable an evaluation of
economic viability worthy of public disclosure.  Inferred Mineral Resources must
be excluded from  estimates  forming the basis of  feasibility or other economic
studies.


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<PAGE>

Indicated Mineral Resource

An  'Indicated  Mineral  Resource' is that part of a Mineral  Resource for which
quantity, grade or quality,  densities, shape and physical characteristics,  can
be estimated  with a level of  confidence  sufficient  to allow the  appropriate
application of technical and economic  parameters,  to support mine planning and
evaluation  of the economic  viability of the deposit.  The estimate is based on
detailed and  reliable  exploration  and testing  information  gathered  through
appropriate techniques from locations such as outcrops, trenches, pits, workings
and  drill  holes  that are  spaced  closely  enough  for  geological  and grade
continuity to be reasonably assumed.

Mineralization  may  be  classified  as an  Indicated  Mineral  Resource  by the
Qualified Person when the nature, quality, quantity and distribution of data are
such as to allow  confident  interpretation  of the geological  framework and to
reasonably  assume the continuity of  mineralization.  The Qualified Person must
recognize  the  importance  of the Indicated  Mineral  Resource  category to the
advancement of the  feasibility of the project.  An Indicated  Mineral  Resource
estimate is of  sufficient  quality to support a Preliminary  Feasibility  Study
which can serve as the basis for major development decisions.

Measured Mineral Resource

A  'Measured  Mineral  Resource'  is that part of a Mineral  Resource  for which
quantity,  grade or quality,  densities,  shape, physical characteristics are so
well established that they can be estimated with confidence  sufficient to allow
the  appropriate  application of technical and economic  parameters,  to support
production planning and evaluation of the economic viability of the deposit. The
estimate is based on detailed  and  reliable  exploration,  sampling and testing
information  gathered  through  appropriate  techniques  from  locations such as
outcrops,  trenches,  pits,  workings  and drill  holes that are spaced  closely
enough to confirm both geological and grade continuity.

Mineralization  or other natural material of economic interest may be classified
as a Measured Mineral Resource by the Qualified Person when the nature, quality,
quantity  and  distribution  of data are such that the  tonnage and grade of the
mineralization can be estimated to within close


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limits and that  variation  from the  estimate  would not  significantly  affect
potential economic viability.  This category requires a high level of confidence
in, and understanding of, the geology and controls of the mineral deposit.

Mineral Reserve

Mineral Reserves are sub-divided in order of increasing confidence into Probable
Mineral Reserves and Proven Mineral  Reserves.  A Probable Mineral Reserve has a
lower level of confidence than a Proven Mineral Reserve.

A Mineral Reserve is the  economically  mineable part of a Measured or Indicated
Mineral Resource demonstrated by at least a Preliminary  Feasibility Study. This
Study must include adequate  information on mining,  processing,  metallurgical,
economic and other relevant factors that demonstrate,  at the time of reporting,
that economic  extraction can be justified.  A Mineral Reserve includes diluting
materials and allowances for losses that may occur when the material is mined.

Mineral  Reserves  are  those  parts  of  Mineral  Resources  which,  after  the
application  of all mining  factors,  result in an  estimated  tonnage and grade
which, in the opinion of the Qualified  Person(s)  making the estimates,  is the
basis of an  economically  viable  project after taking  account of all relevant
processing,    metallurgical,    economic,    marketing,   legal,   environment,
socio-economic  and  government  factors.  Mineral  Reserves  are  inclusive  of
diluting  material that will be mined in conjunction  with the Mineral  Reserves
and delivered to the treatment plant or equivalent  facility.  The term 'Mineral
Reserve' need not necessarily signify that extraction facilities are in place or
operative or that all governmental approvals have been received. It does signify
that there are reasonable expectations of such approvals.

Probable Mineral Reserve

A 'Probable Mineral Reserve' is the economically  mineable part of an Indicated,
and in some circumstances a Measured Mineral Resource demonstrated by at least a
Preliminary  Feasibility Study. This Study must include adequate  information on
mining, processing,


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metallurgical,  economic,  and other relevant factors that  demonstrate,  at the
time of

reporting, that economic extraction can be justified.

Proven Mineral Reserve

A 'Proven  Mineral  Reserve'  is the  economically  mineable  part of a Measured
Mineral Resource demonstrated by at least a Preliminary  Feasibility Study. This
Study must include adequate  information on mining,  processing,  metallurgical,
economic, and other relevant factors that demonstrate, at the time of reporting,
that economic extraction is justified.

Application of the Proven Mineral  reserve  category  implies that the Qualified
Person has the highest  degree of confidence in the estimate with the consequent
expectation  in the  minds of the  readers  of the  report.  The term  should be
restricted to that part of the deposit where production planning is taking place
and for which any  variation  in the  estimate  would not  significantly  affect
potential economic viability.

RESOURCE AND RESERVE CLASSIFICATION

Technical  Reports  dealing  with  estimates  of Mineral  Resources  and Mineral
Reserves must use only the terms and the definitions contained herein. Figure 1,
displays  the  relationship  between the Mineral  Resource  and Mineral  Reserve
categories.

The CIM Standards  provide for a direct  relationship  between Indicated Mineral
Resources and Probable Mineral  Reserves and between Measured Mineral  Resources
and  Proven  Mineral  Reserves.  In other  words,  the  level  of  geoscientific
confidence for Probable Mineral Reserves is the same as that required for the in
situ  determination  of  Indicated  Mineral  Resources  and for  Proven  Mineral
Reserves is the same as that required for the in situ  determination of Measured
Mineral Resources.


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                                    Figure 1
          Relationship between Mineral Resources and Mineral Reserves

================================================================================

                     EXPLORATION
                     INFORMATION

                        MINERAL                                 MINERAL
                       RESOURCES                               RESERVES

              |        INFERRED
              |
Increasing    |   -----------------------------------------------------------
level of      |
gelogical     |        INDICATED <---------------------------> PROBABLE
knowledge     |                   [diagonal dashed arrow pointing in both
and           |                   [directions from MEASURED to PROBABLE omitted]
confidence    |        MEASURED  <--------------------------->  PROVEN
              V   -----------------------------------------------------------

            Consideration of mining, metallurgical, economic, marketing, legal,
                  environmental, social and governmental factors
      ---------------------------------------------------------------------->
                                (the "modifying factors")

================================================================================

Figure 1 sets out the framework for  classifying  tonnage and grade estimates so
as to reflect different levels of geological confidence and different degrees of
technical  and  economic  evaluation.  Mineral  Resources  can be estimated by a
Qualified Person, with input from persons in other disciplines, as necessary, on
the basis of geoscientific  information and reasonable  assumptions of technical
and economic  factors  likely to influence the prospect of economic  extraction.
Mineral  Reserves,  which are a modified  sub-set of the  Indicated and Measured
Mineral  Resources  (shown  within  the dashed  outline  in Figure  1),  require
consideration of factors  affecting  profitable  extraction,  including  mining,
processing,   metallurgical,    economic,   marketing,   legal,   environmental,
socio-economic and governmental factors, and should be estimated with input from
a  range  of  disciplines.   Additional  testwork,   e.g.  metallurgy,   mining,
environmental is required to classify a resource as a reserve.

In certain  situations,  Measured  Mineral  Resources  could convert to Probable
Mineral Reserves because of uncertainties  associated with the modifying factors
that are taken into account in the conversion from Mineral  Resources to Mineral
Reserves. This relationship is shown by the


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dashed  arrow in Figure 1  (although  the trend of the dashed  arrow  includes a
vertical  component,  it does not, in this  instance,  imply a reduction  in the
level  of  geological  knowledge  or  confidence).  In  such a  situation  these
modifying  factors  should be fully  explained.  Under no  circumstances  can an
Indicated Resources convert directly to Proven Reserves.

In certain  situations  previously  reported  Mineral  Reserves  could revert to
Mineral  Resources.  It is not  intended  that  re-classification  from  Mineral
Reserves to Mineral  Resources should be applied as a result of changes expected
to be of a short term or temporary nature, or where company  management has made
a  deliberate  decision  to operate in the short term on a  non-economic  basis.
Examples of such  situations  might be a commodity  price drop expected to be of
short duration, mine emergency of a non-permanent nature, transport strike etc.

GUIDANCE FOR REPORTING MINERAL RESOURCE AND MINERAL RESERVE INFORMATION

Qualified  Persons preparing public reports must follow the requirements in Form
43-101F1  of  National  Instrument  43-101,  a  preliminary  draft of which  was
published by the Canadian Securities Administrators on March 24, 2000. A copy of
the  draft  Form  is  available  on  the  following  websites:   www.osc.gov.ca;
www.bcsc.bc.ca;   www.albertasecurities.com  and  www.cvmq.com.   The  following
discussion  is  included  for  additional  guidance  when  preparing a Technical
Report.

For the CIM  Standards a Technical  Report is defined as a report that  contains
the relevant supporting documentation,  estimation procedures and description of
the  Exploration  Information,  or the Mineral  Resources  and  Mineral  Reserve
estimate.  The CIM standards  recognize the  importance of quality  Resource and
Reserve  estimates  to the  profitable  operation of a mine.  The CIM  Standards
encourage  practitioners  to strive for  excellence in the  preparation of these
estimates.

A Technical  Report,  with  documentation  describing  the  estimates of Mineral
Resources  and Mineral  Reserves  must be prepared by or under the direction of,
and dated and signed by, a Qualified  Person(s).  When  undertaking  exploration
programs and generating information


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required to prepare Mineral  Resource and Mineral Reserve  estimates,  Qualified
Persons must comply with the Mineral  Exploration  "Best  Practices"  Guidelines
prepared by the Mineral Industry Best Practices Committee (Table 2).

Qualified Persons are encouraged to provide information that is as comprehensive
as possible  in their  Technical  Reports on  Exploration  Information,  Mineral
Resources and Mineral Reserves.  Table 1 provides,  in a summary form, a list of
the  main  criteria  which  should  be  considered  when  reporting  Exploration
Information,  Mineral  Resources  and Mineral  Reserve  estimates.  All of these
criteria  need not be discussed  unless they  materially  affect  estimation  or
classification  of  the  Mineral   Resources  and  Mineral   Reserves.   Certain
fundamental data such as commodity price used,  cut-off grade (where applicable)
must be disclosed.

Table 1 is a checklist,  and is not prescriptive.  While it may not be necessary
to comment on each item in the table,  the need for  comment on each item should
be  considered.  It is essential  to discuss any matters  that might  materially
affect the reader's  understanding  of the estimates  being  reported.  Problems
encountered  in the  collection of data or with the  sufficiency of data must be
clearly  disclosed  at all times,  particularly  when they affect  directly  the
reliability  of, or confidence in, a statement of Exploration  Information or an
estimate of Mineral  Resources and Mineral  Reserves;  for example,  poor sample
recovery, poor repeatability of assay or laboratory results, limited information
on tonnage factors etc.

Mineral  Resource or Mineral  Reserve  estimates  are sometimes  reported  after
adjustment  by  cutting of high  grades or after the  application  of  modifying
factors  arising  from  reconciliation  with mill  data.  If any of the data are
materially  adjusted or modified  for the  purpose of making the  estimate,  the
nature of the adjustment or modification should be clearly described.

Mineral  Resource and Mineral  Reserve  estimates are not precise  calculations,
being dependent on the  interpretation  of limited  information on the location,
shape and continuity of the occurrence and on the available sampling results. To
emphasize  the  imprecise  nature  of a  Mineral  Resource  or  Mineral  Reserve
estimate,  the final result should  always be referred to as an estimate,  not a
calculation.


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Reporting of tonnage and grade figures  should  reflect the order of accuracy of
the estimate by rounding off to appropriately significant figures. There will be
occasions, however, where rounding to one significant figure may be necessary in
order to convey properly the uncertainties in estimation.  This would usually be
the case with Inferred Mineral Resources.

Technical  Reports  of a  Mineral  Resource  must  specify  one or  more  of the
categories of 'Inferred',  'Indicated'  and 'Measured' and Technical  Reports of
Mineral  Reserves  must  specify one or both of the  categories  of 'Proven' and
'Probable'.  Categories  must not be reported in a combined form unless  details
for the  individual  categories are also provided.  Inferred  Mineral  Resources
cannot be combined with other categories and must always be reported separately.
Mineral  Resources must never be added to Mineral Reserves and reported as total
Resources  and  Reserves.  Mineral  Resources  and Mineral  Reserves must not be
reported in terms of contained  metal or mineral  content  unless  corresponding
tonnages, grades and mining, mineral processing and metallurgical recoveries are
also presented

In situations  where estimates for both Mineral  Resources and Mineral  Reserves
are reported, a clarifying statement must be included in the report that clearly
indicates  whether Mineral  Reserves are part of the Mineral Resource or if they
have been  removed from the Mineral  Resources.  Mineral  Resources  and Mineral
Reserves must be reported on a site by site basis.

The  CIM  Standards  recognize  that  there  are  legitimate  reasons,  in  some
situations,  for reporting Mineral Resources  inclusive of Mineral Reserves (the
Australian  approach) and, in other situations,  for reporting Mineral Resources
additional to Mineral  Reserves (the South African and United States  approach).
The CIM  Standards  do not express a preference  but do require  that  reporting
companies make it clear which form of reporting has been adopted.  A single form
of  reporting  should  be used in a  report.  Appropriate  forms  of  clarifying
statements may be:

'The  Measured and  Indicated  Mineral  Resources are inclusive of those Mineral
Resources modified to produce the Mineral Reserves.'

or

'The Measured and  Indicated  Mineral  Resources  are  additional to the Mineral
Reserves.'


                                       14
<PAGE>

Inferred  Mineral  Resources  are, by definition,  always  additional to Mineral
Reserves.

Mineral  Reserves may incorporate  material  (dilution) which is not part of the
original  Mineral  Resource or exclude material (mining losses) that is included
in the  original  Mineral  Resource.  It is  essential  that  these  fundamental
differences  between Mineral Resources and Mineral Reserves be noted and caution
exercised when attempting to draw conclusions from a comparison of the two.

In preparing a Mineral Reserve report,  the relevant  Mineral Resource report on
which it is based should first be  developed.  This can be  reconciled  with the
Mineral  Resource  report  estimated  for the  previous  comparable  period  and
differences  (due,  for  example,   to  mine  production,   exploration,   etc.)
identified. The application of mining and other criteria to the Mineral Resource
can then be made to  develop  the  Mineral  Reserve  statement  that can also be
reconciled  with  the  previous   comparable   report.  A  detailed  account  of
differences between estimates is not essential, but sufficient comment should be
made  to  enable   significant   variances  to  be  understood  by  the  reader.
Reconciliation of estimates with production whenever possible is required.

Where Mineral  Reserve  estimates are reported,  information on assumed metal or
mineral prices,  operating costs and mineral  processing/metallurgical  recovery
factors is very important, and should always be included in Technical Reports.

Reports must  continue to refer to the  appropriate  category or  categories  of
Mineral Resources until technical  feasibility and economic  viability have been
established.  If re-evaluation indicates that the Mineral Reserves are no longer
viable,  the Mineral  Reserves  may be  reclassified  as Mineral  Resources,  if
appropriate, or removed from Mineral Resource and Mineral Reserve statements.


                                       15
<PAGE>

The  Committee  is  generally  opposed to the  reporting  of metal  equivalence.
However,  if reporting is carried out in this way, the  appropriate  correlation
formulae  including assumed metal prices,  metallurgical  recovery,  comparative
smelter charges, likely losses, payable metals, etc. must be included.

Mineralized  stope  fill  and  stockpiles  of  mineralized  material  should  be
considered  to be  similar  to in situ  mineralization  when  reporting  Mineral
Resources and Mineral Reserves.  Consequently the Qualified Person assessing the
fill or  stockpiles  must use the basis of  classification  outlined  in the CIM
Standards. In most cases, the opinion of a mining engineer should be sought when
making judgements about the mineability of fill,  remnants and pillars. If there
are  not  reasonable  prospects  for  the  eventual  economic  extraction  of  a
particular portion of the fill or stockpile,  this material cannot be classified
as either Mineral  Resources or Mineral  Reserves.  If some portion is currently
sub-economic but there is a reasonable expectation that it will become economic,
then this  material may be  classified  as a Mineral  Resource.  Such  stockpile
material may include old dumps and tailings material.  If technical and economic
studies of at least a Preliminary  Feasibility  Study standard have demonstrated
that  economic  extraction  could  reasonably be justified  under  realistically
assumed conditions, the material may be classified as a Mineral Reserve.

The  above  guidelines  apply  equally  to low  grade  in  situ  mineralization,
sometimes referred to as 'mineralized  waste' or 'marginal grade material',  and
often intended for stockpiling  and treatment  towards the end of mine life. For
clarity of understanding,  it is recommended that tonnage and grade estimates of
such material be itemized separately in Technical Reports,  although they may be
aggregated with total Mineral Resource and Mineral Reserve figures.

Stockpiles  are  defined to include  both  surface and  underground  stockpiles,
including broken ore in stopes, and can include ore currently in the ore storage
system.  Mineralized material being processed (including leaching), if reported,
should be reported separately.

Mineralized  remnants,  shaft pillars and mining  pillars which are  potentially
mineable are in situ  mineralization  and  consequently  are included in the CIM
Standards  definitions of Mineral  Resources and Mineral  Reserves.  Mineralized
remnants, shaft pillars and mining pillars which


                                       16
<PAGE>

are not  potentially  mineable  must not be  included  in Mineral  Resource  and
Mineral Reserve statements.

REPORTING OF COAL RESERVES

Coal  resource  and reserve  estimates  should  conform to the  definitions  and
guidelines on Paper 88-21 of the Geological  Survey of Canada:  "A  Standardized
Coal Resource/Reserve Reporting System for Canada".

REPORTING OF INDUSTRIAL MINERALS

When reporting  Mineral  Resource and Mineral Reserve  estimates  relating to an
industrial  mineral site, the Qualified  Person(s) must make the reader aware of
certain special  properties of these  commodities.  An Industrial Mineral is any
rock,  mineral  or  other  naturally  occurring  substance  of  economic  value,
exclusive of metallic  ores,  mineral  fuels and  gemstones;  that is one of the
non-metallic minerals. To assist Qualified Persons, the following guidelines are
presented.

The quality of  industrial  mineral  deposits is typically  measured by physical
and/or chemical  properties.  The properties may be defined by standard industry
specifications  that  must  be  considered  in  the  classification  of  Mineral
Resources and/or Mineral Reserves.

Before a tonnage and quality  and/or value per tonne  estimate of an  industrial
mineral  deposit  can  be  classified  as a  Mineral  Resource,  there  must  be
recognition by the Qualified  Person  preparing the tonnage and quality estimate
that there is a viable market for the product or that a market can be reasonably
developed.

Before any part of an industrial  mineral deposit can be classified as a Mineral
Reserve the Qualified  Person preparing the tonnage and quality and/or value per
tonne  estimate must assure himself or herself that the mineral can be sold at a
profit through review of specific and identifiable markets for the product.

When the quality of any  industrial  minerals  is defined by  standard  industry
specifications  and these  specifications  are used to  estimate  the value of a
tonne of product or products, the industry standard used must be identified. The
methods for estimating the value must be explained.


                                       17
<PAGE>

REPORTING OF DIAMONDS AND GEMSTONES

Mineral Resource and Reserves estimates of diamonds or gemstones must conform to
the  definitions  and  guidelines  found in  "Reporting  of Diamond  Exploration
Results,  Identified  Mineral  Resources  and  Ore  Reserves"  published  by the
Association  of  Professional  Engineers,  Geologists and  Geophysicists  of the
Northwest Territories.

Reports of diamonds or gemstones  recovered from sampling  programs must specify
the number  and total  weight of stones  (in  carats  for  diamonds)  recovered.
Details of the type and size of samples which produced the diamonds must also be
specified  including  the lower cut-off sieve size and type of sieve used in the
recovery.  Of equal or greater  importance  to the total  weight of  diamonds is
diamond value which depends on the colour,  size, and proportion of gem and near
gem quality of stones  recovered.  The weight of diamonds  recovered may only be
omitted  from the report  when the  diamonds  are less than 0.5 mm in size (i.e.
when the diamonds recovered are microdiamonds).

For Technical Reports dealing with diamond or other gemstone mineralization,  it
is also a requirement of the CIM Standards  that, if a valuation(s)  of a parcel
of diamonds or gemstones is reported,  the person(s) or organization valuing the
parcel must be named in the report and their professional  valuation experience,
competency  and  independence  must be  stated.  If a  valuation  of a parcel of
diamonds  is  reported,  the weight in carats  and size  range of the  contained
diamonds  must be stated and the value of the  diamonds  must be estimated in US
dollars per carat. If the valuation(s) is not independent,  this must be clearly
stated.

Diamond valuation is a highly specialized process and value can only be reliably
estimated  for large  parcels (at least 2,000  carats) of diamonds from a single
deposit.  The  reliability  of valuations  of parcels  smaller than 2,000 carats
decreases  as the size of the parcels  decreases  to the point where  valuations
placed on a small number of diamonds from  exploration  samples are likely to be
misleading.


                                       18
<PAGE>

                                     TABLE 1

Table 1 is a  checklist  that  may be used by  Qualified  Persons  may use  when
estimating Mineral Resources and Mineral Reserves. Relevance and materiality are
overriding  principles that determine what information  should be presented with
the  estimates.  It is  important  to report any matters  that might  materially
affect a reader's  understanding or  interpretation  of the results or estimates
being reported

--------------------------------------------------------------------------------
               CHECKLIST FOR THE ESTIMATION OF MINERAL RESOURCES
--------------------------------------------------------------------------------
Database integrity              Measures  taken  to  ensure  that  data has not
                                been  corrupted by, for example,  transcription
                                or   keying   errors,   between   its   initial
                                collection  and its use  for  Mineral  Resource
                                estimation  purposes.  Data  validation and due
                                diligence procedures used.
--------------------------------------------------------------------------------
Geological interpretation       Nature of the data used and of any  assumptions
                                made.  The  effect,   if  any,  of  alternative
                                interpretations     on     Mineral     Resource
                                estimation.  The use of geology in guiding  and
                                controlling  Mineral Resource  estimation.  The
                                factors affecting  continuity both of grade and
                                geology.
--------------------------------------------------------------------------------
Estimation and modelling        The    estimation    technique(s)    and    key
techniques                      assumptions,  including  treatment  of  extreme
                                grade   values,    interpolation    parameters,
                                maximum  distance  of  extrapolation  from data
                                points,  must  be  appropriate  and  consistent
                                with  best   mineral   industry   practice  The
                                availability  of  check   estimates,   previous
                                estimates  and/or mine  production  records and
                                whether  the  Mineral  Resource  estimate  must
                                take  appropriate  account  of such  data.  The
                                assumptions   made   regarding    recovery   of
                                by-products.   In  the  case  of  block   model
                                interpolation,  the block size in  relation  to
                                the  average  sample  spacing  and  the  search
                                employed.  Any assumptions  behind modelling of
                                selective   mining   units   (eg.    non-linear
                                kriging).   The  process  of  validation,   the
                                checking  process used, the comparison of model
                                data   to   drillhole    data,   and   use   of
                                reconciliation data if available.  The software
                                and  version   used  for   computer   generated
                                estimates  should be identified.  When computer
                                techniques  are  used in  Mineral  Resource  or
                                Mineral  Reserve  estimation,  verification  by
                                other techniques is required
--------------------------------------------------------------------------------
Cut-off grades or parameters,   The basis of the  cut-off  grade(s)  or quality
and cutting of high assays      parameters  applied.  If high  values have been
                                cut,  the level of  cutting  must be  explained
                                and  justified.  The  effect  of  cutting  high
                                grades on the Mineral  Resource  estimate  must
                                be discussed.
--------------------------------------------------------------------------------
Mining factors or assumptions   Assumptions  made  regarding   possible  mining
                                methods, minimum mining dimensions
                                and  internal  (or,  if  applicable,  external)
                                mining dilution.
--------------------------------------------------------------------------------
Metallurgical factors or        The  basis  for   assumptions   or  predictions
assumptions                     regarding metallurgical amenability.
--------------------------------------------------------------------------------
Tonnage factors (in situ bulk   The  determination  method used,  the frequency
densities)                      of  the  measurements,  the  nature,  size  and
                                representativeness   of  the  samples  must  be
                                stated.
--------------------------------------------------------------------------------
Classification                  The  basis  for  the   classification   of  the
                                Mineral   Resources  into  varying   confidence
                                categories.  Appropriate  account must be taken
                                of  all   relevant   factors.   i.e.   relative
                                confidence   in   tonnage/grade    estimations,
                                confidence   in   continuity   of  geology  and
                                recoverable mineral and metal values,  quality,
                                quantity  and  distribution  of the  data.  All
                                Qualified   Persons   involved   in  a  Mineral
                                Resource estimate must sign off.
--------------------------------------------------------------------------------
Audits or reviews               The   results  of  any  audits  or  reviews  of
                                Mineral Resource estimates.
--------------------------------------------------------------------------------


                                       a
<PAGE>

Table 1 cont'd

--------------------------------------------------------------------------------
                         ESTIMATION OF MINERAL RESERVES
--------------------------------------------------------------------------------
Mineral Resource   Description  of the  Mineral  Resource  estimate  used  as a
estimate for       basis  for  the  conversion  to an  Mineral  Reserve.  Clear
conversion to      statement as to whether the Mineral  Resources  are reported
Mineral Reserves   additional to, or inclusive of, the Mineral Reserves.
--------------------------------------------------------------------------------
Cut-off grades or  The basis of the  cut-off  grade(s)  or  quality  parameters
parameters         applied,  including  the basis,  appropriate,  of equivalent
                   metal formulae.  The cut-off grade parameter may be economic
                   value per block rather than mineral or metal grade.
--------------------------------------------------------------------------------
Mining factors or  The  method and  assumptions  used to  convert  the  Mineral
assumptions        Resource  to an Mineral  Reserve.  The choice of, the nature
                   and the  appropriateness  of the selected  mining  method(s)
                   and other  mining  parameters  including  associated  design
                   issues such as pre-strip,  access, etc. The assumptions made
                   regarding  geotechnical  parameters  (eg pit  slopes,  stope
                   sizes,  etc.),  grade control and  pre-production  drilling.
                   The major  assumptions  made and Mineral Resource model used
                   for pit optimisation (if  appropriate).  The mining dilution
                   factors,  mining recovery factors, and minimum mining widths
                   used and the  infrastructure  requirements  of the  selected
                   mining methods  Results of bulk sampling  and/or test mining
                   must be reported.
--------------------------------------------------------------------------------
Metallurgical and  The  metallurgical  process proposed and the confirmation of
processing factors the   applicability   of  that   process  to  the  style  of
or assumptions     mineralization.   Whether  the   metallurgical   process  is
                   well-tested  and  "commercialized"  technology.  The nature,
                   amount  and  representativeness  of  metallurgical  testwork
                   undertaken and the  metallurgical  recovery factors applied.
                   Any   assumptions   or  allowances   made  for   deleterious
                   elements.  The  existence  of any bulk sample or pilot scale
                   testwork   and  the  degree  to  which  such   samples   are
                   representative of the Mineral Reserve as a whole.
--------------------------------------------------------------------------------
Cost and revenue   The derivation of, or assumptions made,  regarding projected
factors            capital and operating  costs. The assumptions made regarding
                   revenue including head grade,  metal or commodity  price(s),
                   exchange  rates,   transportation   and  treatment  charges,
                   penalties,  etc The allowances  made for royalties  payable,
                   both  Government and private and,  material,  taxes or sales
                   restrictions.  Comparisons  of operating  and capital  costs
                   with other similar operations should be made if appropriate.
--------------------------------------------------------------------------------
Market assessment  The demand,  supply and stock  situation for the  particular
                   commodity,  consumption  trends and factors likely to affect
                   supply  and  demand   into  the  future.   A  customer   and
                   competitor  analysis along with the identification of likely
                   market windows for the product.  Price and volume  forecasts
                   and the basis for these forecasts.  For industrial  minerals
                   the   customer   specification,   testing   and   acceptance
                   requirements prior to supply contract.
--------------------------------------------------------------------------------
Others             The  effect,  if  any,  of  natural  risk,   infrastructure,
                   environmental,  legal,  marketing,  social  or  governmental
                   factors on the likely  viability of a project  and/or on the
                   estimation and  classification of the Mineral Reserves.  The
                   status of titles and approvals  critical to the viability of
                   the  project,  such as  mining  leases,  discharge  permits,
                   government and statutory approvals.
--------------------------------------------------------------------------------
Classification     The basis for the  classification  of the  Mineral  Reserves
                   into  varying  confidence  categories.   The  proportion  of
                   Probable  Mineral  Reserves  which  have been  derived  from
                   Measured Mineral  Resources (if any).  Appropriate  sign-off
                   by all  Qualified  Persons  involved  in a  Mineral  Reserve
                   estimate is required.
--------------------------------------------------------------------------------
Audits or reviews  The  results of any  audits or  reviews  of Mineral  Reserve
                   estimates.
--------------------------------------------------------------------------------


                                       b
<PAGE>

                                    Table 1a

--------------------------------------------------------------------------------
     ADDITIONAL GUIDANCE FOR THE REPORTING OF SAMPLING TECHNIQUES AND DATA
--------------------------------------------------------------------------------
   CRITERIA                               EXPLANATION
--------------------------------------------------------------------------------
Drilling        Drill type (eg. core,  reverse  circulation,  cable tool rotary
techniques      air blast, auger, etc.) and details (eg. core diameter,  triple
                or  standard  tube,  face-sampling  bit or other  type,  etc.).
                Measures  taken  to  maximize  sample  recovery  and  establish
                representative nature of the samples.
--------------------------------------------------------------------------------
Logging         Core and chip  samples  must be  logged to a level of detail to
                support   appropriate  Mineral  Resource   estimation,   mining
                studies and  processing/metallurgical  studies. Logging must be
                quantitative  in  nature.  Core (or  trenching,  channel  etc.)
                photography.   Logging   must   include   where   possible  the
                collection of structural  data (core samples,  rock quality and
                description).
--------------------------------------------------------------------------------
Drill sample    Core and chip sample  recoveries must be properly  recorded and
recovery        results  assessed.  Establish  whether  a  relationship  exists
                between  sample  recovery and grade and whether sample bias may
                have  occurred due to  preferential  loss/gain  of  fine/coarse
                material.
--------------------------------------------------------------------------------
Other           Nature and  quality of sampling  (eg.  channel,  random,  chips
sampling        etc.) and measures taken to establish sample representivity.
techniques
--------------------------------------------------------------------------------
Sub-sampling    If core,  whether cut or sawn and whether quarter,  half or all
techniques      core taken. If non-core,  whether riffled, tube sampled, rotary
and sample      split  etc.  and  whether  sampled  wet or dry.  For all sample
preparation     types, the nature,  quality and  appropriateness  of the sample
                preparation  technique.  Quality control procedures adopted for
                all sub-sampling stages to maximise  representivity of samples.
                Measures    taken   to   establish   that   the   sampling   is
                representative of the in situ material collected.  Confirmation
                that  sample  sizes are  appropriate  to the grain  size of the
                material being sampled.
--------------------------------------------------------------------------------
Quality of      The nature,  quality and  appropriateness  of the  assaying and
assay data      laboratory   procedures  used  and  whether  the  technique  is
and             considered  partial  or  total.  Nature  of  quality  assurance
laboratory      procedures   adopted  (eg.   Standards,   blanks,   duplicates,
tests           external  laboratory  checks) and whether  acceptable levels of
                accuracy   (i.e.   lack  of  bias)  and  precision   have  been
                established.
--------------------------------------------------------------------------------
Verification    The   verification  of  significant   intersections  by  either
of sampling     independent  or  alternative  company  personnel.  The  use  of
and assaying    twinned holes.
--------------------------------------------------------------------------------
Location of     Accuracy  and  quality of surveys  used to locate  drill  holes
data points     (collar and  down-hole  surveys),  trenches,  mine workings and
                other locations used in Mineral  Resource  estimation.  Quality
                and adequacy of topographic control.
--------------------------------------------------------------------------------
Data density    The  data  density  and  distribution  must  be  sufficient  to
and             establish  the  degree  of  geological  and  grade   continuity
distribution    appropriate  for  the  Mineral  Resource  and  Mineral  Reserve
                estimation  procedure(s) and classifications  applied.  Whether
                sample compositing has been applied.
--------------------------------------------------------------------------------


                                       c
<PAGE>

                                    Table 1b

--------------------------------------------------------------------------------
          ADDITIONAL GUIDANCE FOR THE REPORTING OF EXPLORATION RESULTS
--------------------------------------------------------------------------------
Mineral title and   Type,   reference   name/number,   location  and  ownership
land tenure status  including  agreements or material issues with third parties
                    such   as   joint   ventures,   partnerships,    overriding
                    royalties,   native  title  interests,   historical  sites,
                    wilderness or national park and environmental  settings. In
                    particular  the  security of the tenure held at the time of
                    reporting  along with any known  impediments to obtaining a
                    licence to operate in the area.
--------------------------------------------------------------------------------
Exploration work    Acknowledgment  and  appraisal of previous  exploration  by
done by other       other  parties,  previous  audits,  reviews  and  valuation
parties             reports.
--------------------------------------------------------------------------------
Geology             Deposit   type,    geological    setting   and   style   of
                    mineralization.
--------------------------------------------------------------------------------
Data aggregation    Weighting averaging  techniques,  maximum and minimum grade
methods             truncations  (ie.  cutting  of  high  grades)  and  cut-off
                    grades are  material  and must be stated.  Where  aggregate
                    intercepts  incorporate short lengths of high grade results
                    and longer  lengths  of low grade  results,  the  procedure
                    used for such  aggregation  must be stated and some typical
                    examples  of such  aggregations  should be shown in detail.
                    Assumptions  used for any use of metal  equivalency and the
                    date of the metal  equivalency  calculation must be clearly
                    stated.
--------------------------------------------------------------------------------
Diagrams            Where  possible,   maps  and  sections  (with  scales)  and
                    tabulations  of  intercepts  should  be  included  for  any
                    material discovery.
--------------------------------------------------------------------------------
Other substantive   Other data, if meaningful and material,  should be reported
exploration data    including  (but not limited to):  geological  observations;
                    geophysical  survey  results;  geochemical  survey results;
                    bulk samples - size and method of treatment;  metallurgical
                    test results; bulk density,  groundwater,  geotechnical and
                    rock    characteristics;     potential    deleterious    or
                    contaminating substances.
--------------------------------------------------------------------------------


                                       a
<PAGE>

                                     Table 2

--------------------------------------------------------------------------------
                      Exploration Best Practices Guidelines

Preamble:  These guidelines have been prepared to assist the Qualified Person(s)
in the planning and  supervision of exploration  programs which will be reported
under National  Instrument 43-101.  Such exploration  programs must be under the
supervision of the Qualified  Person who will be responsible and accountable for
the planning,  execution and interpretation of all exploration  activity as well
as the  implementation  of  quality  assurance  programs  and  reporting.  These
guidelines  are  also  recommended  for use in the  planning  and  execution  of
exploration  programs  which will not be reported  under NI 43-101.  This set of
broad  guidelines or "best practices" has been drawn up to ensure a consistently
high quality of work that will maintain public  confidence and assist securities
regulators.  The guidelines are not intended to inhibit the original thinking or
application  of new  approaches,  that are  fundamental  to  successful  mineral
exploration.
Results  should  be  summarized  and  reported  in a  Technical  Report  of good
professional  quality in accordance with the National Instrument 43-101 and Form
1 contained in that instrument.
All exploration work from which public reporting will ensue must be designed and
carried out under the supervision of a Qualified  Person ("QP"). A QP is defined
in  National   Instrument  43-101  as  an  individual  who  is  an  engineer  or
geoscientist  with at least five (5) years'  experience in mineral  exploration,
mine development,  mine operation or project assessment, has experience relevant
to the subject  matter of the project or report and is a member in good standing
of a recognized professional association.
--------------------------------------------------------------------------------
1. Qualified       The  Qualified  Person may base the  exploration  program on
Person             such  geological  premises  and  interpretation  of existing
                   information   as  the  QP(s)  may  decide  and  select  such
                   exploration  methods  and tools as the QP(s) may judge to be
                   appropriate.  In planning,  implementing and supervising any
                   exploration  work,  the Qualified  Person should ensure that
                   the  practices  followed  are  based  on  criteria  that are
                   generally  accepted in the  industry or that can  reasonably
                   be justified on scientific or technical grounds.
--------------------------------------------------------------------------------
2. Geological      The  geological  premise  on which the  exploration  work is
Concept            conducted  including  the deposit type,  geological  setting
                   and style of mineralization  sought,  should be supported by
                   relevant field data and a reasoned scientific approach.
--------------------------------------------------------------------------------
3. Quality         Throughout  the  process of mineral  exploration,  the QP(s)
Assurance and      should ensure that a quality  assurance  program is in place
Control            and  that  any  required   quality   control   measures  are
                   implemented.    Quality   assurance   programs   should   be
                   systematic  and  apply  to all  types  of data  acquisition,
                   across the full range of values  measured  and not only high
                   or unusual results.
--------------------------------------------------------------------------------
4. Exploration     Field  work  is to be  planned  and  implemented  under  the
Methods & Data     direct  supervision  of a QP(s).  Data  should  be  properly
Collection         recorded and  documented  at  appropriate  scales.  All data
                   points  should be  accurately  located with respect to known
                   reference  points.  The QP(s)  supervising  this work should
                   ensure   that  any  work  by   employees,   contractors   or
                   consultants   is  done  by  competent   personnel  and  that
                   appropriate   quality   assurance   programs   and  security
                   procedures are  practised.  Whenever  several  persons carry
                   out similar  duties or when the data has been collected over
                   a period  of time,  care  should  be  taken  to  ensure  the
                   quality and consistency of the data being used.
--------------------------------------------------------------------------------
5. Records and     The  exploration   process  including   planning,   mapping,
Data Verification  sampling,  sample preparation,  sample security and analysis
                   or testing should be accompanied by detailed  record keeping
                   setting out the procedures  followed,  the results  obtained
                   and the  abbreviations  used. In addition to paper  records,
                   digital  storage is  encouraged  in a  standard  format on a
                   reliable  medium. A program of data  verification  should be
                   in place to confirm the  validity of  exploration  data that
                   are entered into the database.  A summary of records  should
                   be  included in a periodic  technical  report  produced  and
                   signed  by  the  QP(s).   Practices   used  should  be  well
                   documented and justified.
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6. Sampling        The practices and procedures  used in each sampling  program
                   should be  appropriate  for the  objectives  of the program.
                   All  sampling  programs  should be carried  out in a careful
                   and  diligent   manner  using   scientifically   established
                   sampling  practices  designed  and tested to ensure that the
                   results are representative  and reliable.  Samples should be
                   collected under the supervision of a QP(s).  Quality control
                   programs   appropriate   to  the  type  of  sample  and  the
                   mineralization  should be  planned  and  implemented.  These
                   programs  should  include such measures as external  blanks,
                   standards  and  duplicate  samples.   Where  the  volume  of
                   individual  samples  is  reduced  prior  to  shipping  to  a
                   laboratory for analysis,  appropriate  reduction  procedures
                   to obtain  representative  subsamples  should be applied and
                   verified.
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7. Drilling        The  drilling  method will be selected by a QP(s) and should
                   be  appropriate  to the  material  being  investigated,  the
                   objective of the program and local drilling conditions.  The
                   drill  hole  size   selected   should   provide   sufficient
                   representative  sample  material for analysis and reference.
                   Surface   and   downhole   locational   surveys   should  be
                   undertaken using  techniques  appropriate for the hole size,
                   angle and length of holes. A representative  fraction of the
                   drill  sample  material  should  be  retained,   however  if
                   material  is not  retained,  the  QP(s)  should  report  and
                   explain the reason for this decision.
                   Drill  logs,  forms or software  specifically  suited to the
                   type of drilling,  the particular geological situation,  and
                   the  minerals  being  sought,  should  be used for  detailed
                   geological  logging  of core or  cuttings.  Logs  should  be
                   appropriately  detailed  for  the  type  of  drilling  being
                   conducted,  the geological setting,  type of mineralization,
                   and  geotechnical  conditions.  Core  or  sample  recoveries
                   should be noted on the logs. Cross sections  depicting basic
                   geology and hole data,  including  correlation  with surface
                   geology  and  any  nearby  holes  should  be  developed  and
                   updated  as  drilling  proceeds.  Any  downhole  geophysical
                   information  or other such surveys  should also be kept with
                   the  drill  log.  A  photographic  record  of  the  core  is
                   recommended, where appropriate.
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8. Sample          The security of samples from sample  acquisition to analysis
Security           is a vital  component  of the sampling  process.  Procedures
                   should  include  the use of secure core  logging,  sampling,
                   storage and preparation facilities, as appropriate,  and the
                   prompt,  secure  and  direct  shipping  of  samples  to  the
                   laboratories.  The QP(s)  should  endeavour  to put in place
                   the  best   security   procedures   practical,   given   the
                   geographic  and  topographic  conditions  and the  logistics
                   created by the site location.
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9. Sample          The  selection of sample  preparation  procedures  should be
Preparation        approved  by  the  QP  and  should  be  appropriate  to  the
                   material  being  tested,  the  elements  being  analyzed and
                   should be subject to the security  measures as stated above.
                   All samples  that are reduced or split  should be  processed
                   in a manner such that the fraction  analyzed or tested is as
                   representative    of   the   whole   sample   as   possible.
                   Representative  fractions  of the material to be analyzed or
                   tested  should  be  retained  for an  appropriate  period of
                   time, as decided by the QP.  Quality  control  checks should
                   be undertaken as determined by the QP.
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10. Analysis and   Analysis  and  testing  of  samples  should  be  done  by  a
Testing            reputable and  preferably  accredited  laboratory  qualified
                   for the  particular  material to be analyzed or tested.  The
                   selection  of a  laboratory,  testing or mineral  processing
                   facility  and  the  analytical  methods  used  will  be  the
                   responsibility  of the QP.  The  analytical  methods  chosen
                   must be documented  and  justified.  All  analytical or test
                   results should be supported by duly signed  certificates  or
                   technical  reports  issued  by  the  laboratory  or  testing
                   facility  and should be  accompanied  by a statement  of the
                   methods used. The  reliability of the analytical and testing
                   results  should be measured using the results of the quality
                   control   samples   inserted  in  the  process  by  the  QP.
                   Duplicate   analyses   at  other   laboratories   should  be
                   undertaken.
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11.                A  comprehensive  and  ongoing  interpretation  of  all  the
Interpretation     exploration  data is an essential  activity at all stages of
                   the project and should be  undertaken  to assess the results
                   of the work.
                   This   interpretation   should   be  based  on  all  of  the
                   information  collected to date, be systematic  and thorough,
                   describe  and document  the  interpretation  and discuss any
                   information  that  appears  at  variance  with the  selected
                   interpretation.  The density of the exploration  data should
                   be  critically  assessed  as to its  ability to support  the
                   qualitative and quantitative conclusions.
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12. Mineral        Estimation of a mineral  resource and a mineral  reserve are
Resource and       both   fundamental   steps  in  project   development.   The
Reserve            classification  and  categorization  of these estimates must
Estimation         be done in accordance  with National  Instrument  43-101 and
                   be prepared by a QP(s).  The methods and parameters  used in
                   making  these  estimates  should be in  accordance  with the
                   principles  generally  accepted  in  Canada  and  should  be
                   presented  and   justified   with  the  estimate  A  mineral
                   resource can be estimated for material  where the geological
                   characteristics  and the  continuity are known or reasonably
                   assumed and where there is the potential  for  production at
                   a profit.  Reserves  can be estimated  when a positive  pre-
                   feasibility  or  feasibility  study as  defined by NI 43-101
                   has established  the technical,  economic and other relevant
                   factors that indicate  that these  resources can be produced
                   at a profit.  Reserve estimates should be based on input and
                   information   from  a   multidisciplinary   team  under  the
                   direction of QP(s).
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13. Environment,   All field work should be conducted  in a safe,  professional
Safety and         manner with due regard for the environment,  the concerns of
Community          local  communities  and  with  regulatory  requirements.  An
Relations          environmental    program,    including   baseline   studies,
                   appropriate  to the stage of the  project  should be carried
                   out.
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14.                The  interpretation and assessment of the program results at
Recommendations    the  end of  each  phase  should  determine  if the  program
                   objectives  have been met and if further work is  justified.
                   Any  plan  for  further  work  should  identify  exploration
                   targets,  recommend  an  exploration  program  and present a
                   budget and schedule.  Any changes in working  hypotheses and
                   objectives should be recorded.
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15. Technical      A comprehensive  technical report signed by the QP(s) should
Reporting          be prepared on completion of a particular  phase or stage of
                   work  following  the  format  presented  in  Form  1 of  the
                   National Instrument 43-101.
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