Document:

Exhibit 10.1

                            ASSET PURCHASE AGREEMENT

THIS AGREEMENT dated the 1st day of June, 2012.

BETWEEN:

          JERVIS EXPLORATIONS INC.

          (the "VENDOR")

                                                               OF THE FIRST PART

AND:

          STONE BOAT MINING CORP.

          (the "PURCHASER")

                                                              OF THE SECOND PART

WHEREAS:

A. The Vendor is the registered and beneficial  owner of various  mineral claims
(hereinafter the "CLAIMS"),  collectively called Red Streak Property. The Claims
of the Vendor are more  particularly  described in Schedule "A" attached  hereto
and forming part of this Agreement;

B. The Vendor has agreed to sell and the Purchaser has agreed to purchase all of
the Claims of the Vendor in accordance with the terms of this Agreement.

NOW THEREFORE THIS AGREEMENT  WITNESSES that in  consideration  of the terms and
covenants  herein and other good and  valuable  consideration,  the  receipt and
sufficiency  of which each  party  acknowledges,  the  parties  hereto  agree as
follows:

1. PURCHASE AND SALE OF ASSETS

1.1 SALE OF ASSETS.  Subject to the terms and conditions of this Agreement,  the
Vendor hereby sells,  assigns and transfers to the Purchaser,  and the Purchaser
hereby purchases the Vendor's Claims.

1.2 PURCHASE  PRICE.  The purchase  price payable by the Purchaser to the Vendor
for the Vendor's  Claims is USD $ 20,000 (the  "PURCHASE  PRICE"),  subject to a
carried 3% Net Smelter Royalty as described in Appendix "A".
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1.3  PAYMENT  OF THE  PURCHASE  PRICE.  The  Purchase  Price will be paid by the
delivery of a cheque.

1.4  DELIVERY OF CLAIMS.  The Vendor  delivers to the  Purchaser,  on  execution
hereof,  all of the  Claims  unconditionally  and free and  clear of all  liens,
charges, or encumbrances, except where disclosed.

2. COVENANTS OF THE PARTIES

2.1 COVENANTS.  The parties  undertake to keep the  information  with respect to
this  Agreement,  the terms  herein,  and any related,  underlying or subsequent
agreements (the  "INFORMATION")  confidential  and not to directly or indirectly
disclose  the  Information  at any  time to any  person  or  persons  or use the
Information for any purpose whatsoever.

3. REPRESENTATIONS OF THE VENDOR

3.1  REPRESENTATIONS.  The Vendor  represents  and warrants to the  Purchaser as
follows,  with the intent that the Purchaser will rely on the representations in
entering  into  this  Agreement,   and  in  concluding  the  purchase  and  sale
contemplated by this Agreement:

     (a)  CAPACITY TO SELL.  The original  Vendor is JERVIS  EXPLORATIONS  INC..
          having the power and  capacity to own and dispose of the Claims and to
          enter into this Agreement and carry out its terms to the full extent;

     (b)  AUTHORITY TO SELL. The execution and delivery of this  Agreement,  and
          the completion of the  transaction  contemplated by this Agreement has
          been duly and validly authorized by all necessary  corporate action on
          the part of the Vendor, and this Agreement  constitutes a legal, valid
          and binding obligation of the Vendor enforceable against the Vendor in
          accordance  with its terms except as may be limited by laws of general
          application affecting the rights of creditors;

     (c)  SALE WILL NOT CAUSE  DEFAULT.  Neither the  execution  and delivery of
          this   Agreement,   nor  the  completion  of  the  purchase  and  sale
          contemplated by this Agreement will:

          (i)  violate  any of  the  terms  and  provisions  of  the  constating
               documents  or bylaws or  articles  of the  Vendor,  or any order,
               decree,  statute,  bylaw,   regulation,   covenant,   restriction
               applicable to the Vendor or the Claims;

          (ii) give any person the right to terminate,  cancel or otherwise deal
               with the Claims; or

                                       2
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          (iii)result in any fees, duties,  taxes,  assessments or other amounts
               relating  to the Claims  becoming  due or payable  other than tax
               payable by the  Purchaser  in  connection  with the  purchase and
               sale;

     (d)  ENCUMBRANCES.  The Vendor owns and possesses and has a good marketable
          title to the  Claims  free and clear of all legal  claims,  mortgages,
          liens,  charges,  pledges,  security  interest,  encumbrances or other
          claims, except where as disclosed;

     (e)  LITIGATION.  There is no litigation or  administrative or governmental
          proceeding  or inquiry  pending  or, to the  knowledge  of the Vendor,
          threatened against or relating to the Claims, nor does the Vendor know
          of or have  reasonable  grounds  that  there is any basis for any such
          action, proceeding or inquiry;

     (f)  NO DEFAULTS. Except as otherwise expressly disclosed in this Agreement
          there has not been any default in any obligation to be performed under
          any of the Claims,  which are in good  standing  and in full force and
          appropriate effect; and

     (g)  GOOD  STANDING.  Prior to closing  this  Agreement,  the  Vendor  will
          maintain, as required, the Claims in good standing.

4. COVENANTS OF THE VENDOR

4.1 PROCURE  CONSENTS.  The Vendor will  diligently and  expeditiously  take all
reasonable steps requested by the Purchaser to obtain all necessary  consents to
effect the transfer of the Claims.

4.2  COVENANT OF  INDEMNITY.  The Vendor will  indemnify  and hold  harmless the
Purchaser from and against:

     (a)  any and all  liabilities,  whether  accrued,  absolute,  contingent or
          otherwise,  existing at closing and which are not agreed to be assumed
          by the Purchaser under this Agreement;

     (b)  any and all losses,  claims, damages and costs incurred or suffered by
          the  Purchaser  arising  out  of  the  breach  or  inaccuracy  of  any
          representation  or warranty of the Vendor contained in this Agreement;
          and

     (c)  any  and  all  actions,  suits,  proceedings,   demands,  assessments,
          judgments,  costs and legal and other expenses  incident to any of the
          foregoing.

4.3 EXECUTION OF ALL NECESSARY DOCUMENTS.  The Vendor will execute all necessary
documents  including such assignments as the Purchaser may require to effect the
transfer of all of the Claims,  including but not limited to, internet contracts
and internet names.

                                       3
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5. REPRESENTATIONS OF THE PURCHASER

5.1  REPRESENTATIONS.  The  Purchaser  represents  and warrants to the Vendor as
follows,  with the intent that the Vendor will rely on these representations and
warranties in entering into this  Agreement,  and in concluding the purchase and
sale contemplated by this Agreement:

     (a)  STATUS OF PURCHASER. The Purchaser is a corporation duly incorporated,
          validly  existing and in good  standing and has the power and capacity
          to enter into this Agreement and carry out its terms; and

     (b)  AUTHORITY TO PURCHASE.  The execution  and delivery of this  Agreement
          and the completion of the  transaction  contemplated by this Agreement
          has been duly and validly authorized by all necessary corporate action
          on the part of the Purchaser,  and this Agreement constitutes a legal,
          valid and binding obligation of the Purchaser  enforceable against the
          Purchaser  in  accordance  with its terms except as limited by laws of
          general application affecting the rights of creditors.

6. COVENANTS OF THE PURCHASER

6.1  CONSENTS.  The  Purchaser  will at the  request of the Vendor  execute  and
deliver  such  applications  for consent  and such  assumption  agreements,  and
provide such information as may be necessary to obtain the consents  referred to
in paragraph 4.1 and will assist and cooperate  with the Vendor in obtaining the
consents.

6.2  EXECUTION  OF ALL  NECESSARY  DOCUMENTS.  The  Purchaser  will  execute all
necessary  documents  as the Vendor may require to effect the transfer of all of
the Claims.

7. SURVIVAL OF REPRESENTATIONS AND COVENANTS

7.1 VENDOR'S REPRESENTATIONS AND COVENANTS.  All representations,  covenants and
agreements  made by the Vendor in this Agreement or under this  Agreement  will,
unless otherwise expressly stated,  survive closing and any investigation at any
time made by or on behalf  of the  Purchaser  will  continue  in full  force and
effect for the benefit of the Purchaser.

7.2 PURCHASER'S  REPRESENTATIONS AND COVENANTS.  All representations,  covenants
and  agreements  made by the Purchaser in this Agreement or under this Agreement
will, unless otherwise  expressly stated,  survive closing and any investigation
at any time made by or on behalf of the Vendor and will  continue  in full force
and effect for the benefit of the Vendor.

                                       4
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8. LIABILITIES NOT ASSUMED

8.1  LIABILITIES  NOT ASSUMED.  The Purchaser will not assume any liabilities of
the Vendor.  The  Purchaser  will not be  responsible  for any  liability of the
Vendor,  past,  present or future,  relating to the Claims,  and the Vendor will
indemnify and save harmless the Purchaser from and against any such claim.

9. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE PURCHASER

9.1  CONDITIONS.  All  obligations  of the  Purchaser  under this  Agreement are
subject to the fulfillment of the following conditions:

     (a)  VENDOR'S  REPRESENTATIONS.  The Vendor's representations  contained in
          this Agreement will be true.

     (b)  VENDOR'S  COVENANTS.  The Vendor will have performed and complied with
          all   agreements,   covenants  and  conditions  as  required  by  this
          Agreement.

     (c)  CONSENTS. The Purchaser will have received duly executed copies of the
          consents or approvals referred to in paragraph 4.1.

9.2 EXCLUSIVE BENEFIT. The foregoing conditions are for the exclusive benefit of
the  Purchaser  and any such  condition may be waived in whole or in part by the
Purchaser delivering to the Vendor a written waiver to that effect signed by the
Purchaser.

10. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE VENDOR

10.1 CONDITIONS.  All obligations of the Vendor under this Agreement are subject
to the fulfillment of the following conditions:

     (a)  PURCHASER'S REPRESENTATIONS. The Purchaser's representations contained
          in this Agreement will be true.

     (b)  PURCHASER'S COVENANTS.  The Purchaser will have performed and complied
          with all  covenants,  agreements  and  conditions  as required by this
          Agreement.

     (c)  CONSENTS OF THIRD  PARTIES.  All consents or approvals  required to be
          obtained  by the  Vendor  for the  purpose of  selling,  assigning  or
          transferring  the  Claims  have  been  obtained,  provided  that  this
          condition  may only be relied  upon by the  Vendor if the  Vendor  has
          diligently  exercised its best efforts to procure all such consents or
          approvals  and the  Purchaser  has not  waived  the  need for all such
          consents or approvals.

                                       5
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10.2 EXCLUSIVE BENEFIT.  The foregoing  conditions are for the exclusive benefit
of the  Vendor and any such  condition  may be waived in whole or in part by the
Vendor delivering to the Purchaser a written waiver to that effect signed by the
Vendor.

11. GENERAL

11.1 GOVERNING LAW. This Agreement and each of the documents  contemplated by or
delivered  under or in connection  with this Agreement are governed  exclusively
by, and are to be enforced,  construed and interpreted exclusively in accordance
with the laws of British  Columbia  which will be deemed to be the proper law of
the Agreement.

11.2 PROFESSIONAL FEES. Each of the parties will bear the fees and disbursements
of  their  respective   lawyers,   advisers  and  consultants  engaged  by  them
respectively in connection with the transactions  contemplated by this Agreement
prior to the closing.

11.3  ASSIGNMENT.  No party  will  assign  this  Agreement,  or any part of this
Agreement,  without the prior written consent of the other party.  Any purported
assignment  without the required  consent is not binding or enforceable  against
any party.

11.4 ENUREMENT.  This Agreement  ensures to the benefit of and binds the parties
and their respective successors and permitted assigns.

11.5 NOTICE.  All notices required or permitted to be given under this Agreement
will be in writing  and  personally  delivered  to the  address of the  intended
recipient  set out on the first page of this  Agreement or at such other address
as may  from  time to time  be  notified  by any of the  parties  in the  manner
provided in this Agreement.

11.6  FURTHER  ASSURANCES.  The  parties  will  execute  and deliver all further
documents and take all further  action  reasonably  necessary or  appropriate to
give effect to the  provisions  and intent of this Agreement and to complete the
transactions contemplated by this Agreement.

11.7  REMEDIES  CUMULATIVE.  The rights and remedies  under this  Agreement  are
cumulative and are in addition to and not in  substitution  for any other rights
and  remedies  available  at law or in  equity or  otherwise.  Any party to this
Agreement  may  terminate  this  Agreement if any other party is in breach of or
defaults  under any material  term or condition of this  Agreement or has made a
material misrepresentation in this Agreement. No single or partial exercise by a
party of any right or remedy precludes or otherwise  affects the exercise of any
other right or remedy to which that party may be entitled.

11.8 ENTIRE AGREEMENT.  This Agreement  constitutes the entire agreement between
the parties and there are no representations,  express or implied,  statutory or
otherwise  and no  collateral  agreements  other  than as  expressly  set out or
referred to in this Agreement.

                                       6
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11.9 HEADINGS. The division of this Agreement into sections and the insertion of
headings are for  convenience  only and do not form part of this  Agreement  and
will not be used to  interpret,  define or limit the scope,  extent or intent of
this Agreement.

11.10  SEVERABILITY.  Each  provision  of this  Agreement is  severable.  If any
provision of this Agreement is or becomes illegal, invalid or unenforceable, the
illegality, invalidity or unenforceability of that provision will not affect the
legality,  validity  or  enforceability  of the  remaining  provisions  of  this
Agreement.

11.11  SCHEDULES.  The Schedules  attached  hereto form an integral part of this
Agreement.

11.12 TIME OF THE ESSENCE. Time will be of the essence of this Agreement.

11.13  COUNTERPARTS.  This  Agreement  and  all  documents  contemplated  by  or
delivered in  connection  with this  Agreement  may be executed and delivered by
facsimile  or  original  and in any number of  counterparts,  and each  executed
counterpart  will be  considered  to be an original.  All executed  counterparts
taken together will constitute one agreement.

IN WITNESS  WHEREOF the parties have duly executed this  Agreement by their duly
authorized officers effective the first day and year written above.

VENDOR: JERVIS EXPLORATIONS INC.

per:
    --------------------------------------------
    Authorized Signatory

PURCHASER: STONE BOAT MINING CORP.

per:
    --------------------------------------------
    Authorized Signatory
    ADAM WHYTE

                                       7
<PAGE>
                                  SCHEDULE "A"

THIS IS SCHEDULE "A" to the Asset Purchase Agreement.

                               MINERAL CLAIM TITLE

TO:   STONE BOAT MINING CORP.
      ADAM WHYTE

FROM: JERVIS EXPLORATIONS INC.

Re:   RED STREAK PROPERTY PAYMENT

Property: The Property consists of the following Claims:

     NAME               NUMBER          HECTARES          EXPIRY DATE
     ----               ------          --------          -----------

  RED STREAK           #928870           412.51          Nov. 10, 2012

Terms:  $20,000 USD, due upon  receipt of Property  Report,  plus 3% Net Smelter
Return as described in Appendix "A"

                                             ------------------------------
                                             VENDOR

                                       8
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APPENDIX "A" - ROYALTY

                             3% NET SMELTER RETURNS

1. In this  Agreement,  "3% NET SMELTER  RETURNS"  means 3% of the net amount of
money received by the Purchaser for its own account from the sale of ore, or ore
concentrates  or other  mineral  products  from the Claims to a smelter or other
mineral products buyer after deduction of smelter and/or refining  charges,  ore
treatment  charges,  penalties  and any and all charges made by the purchaser of
ore,  concentrates,  or other mineral products,  less any and all transportation
costs which may be  incurred in  connection  with the  transportation  of ore or
concentrates,  less all umpire  charges  which the  purchaser may be required to
pay.

2. Payment of Net Smelter  Returns by the  Purchaser to the Vendor shall be made
semi-annually  within  60 days  after  the end of each  fiscal  half year of the
Purchaser and shall be accompanied by unaudited financial statements  pertaining
to the  operations  carried out by the  Purchaser on the Claims.  Within 90 days
after the end of each fiscal year of the Purchaser in which Net Smelter  Returns
are  payable to the  Vendor,  the records  relating  to the  calculation  of Net
Smelter Returns for such year shall be audited and any resulting  adjustments in
the  payment  of Net  Smelter  Returns  payable  to the  Vendor  shall  be  made
forthwith.  A copy of the said audit shall be delivered to the Vendor  within 30
days of the end of such 90-day period.

3. Each annual  audit shall be final and not  subject to  adjustment  unless the
Vendor delivers to the Purchaser written  exceptions in reasonable detail within
six  months  after  the  Vendor  receives  the  report.   The  Vendor,   or  its
representative duly authorized in writing, at its expense,  shall have the right
to audit the books and records of the Purchaser  related to Net Smelter  Returns
to determine the accuracy of the report,  but shall not have access to any other
books and records of the Purchaser.  The audit shall be conducted by a chartered
or certified public accountant of recognized standing.  The Purchaser shall have
the right to condition access to its books and records on execution of a written
agreement by the auditor that all  information  will be held in  confidence  and
used solely for purposes of audit and resolution of any disputes  related to the
report.  A copy of the Vendor's  report shall be delivered to the Purchaser upon
completion,  and  any  discrepancy  between  the  amount  actually  paid  by the
Purchaser  and the amount which should have been paid  according to the Vendor's
report shall be paid  forthwith,  one party to the other.  In the event that the
said  discrepancy is to the detriment of the Vendor and exceeds 5% of the amount
actually paid by the Purchaser,  then the Purchaser shall pay the entire cost of
the audit.

4. Any dispute arising out of or related to any report, payment,  calculation or
audit shall be resolved  solely by arbitration as provided in the Agreement.  No
error in accounting or in interpretation of the Agreement shall be the basis for
a claim of breach of fiduciary  duty,  or the like,  or give rise to a claim for
exemplary or punitive  damages or for termination or rescission of the Agreement
or the estate and rights  acquired and held by the Purchaser  under the terms of
the Agreement.

                                       9Exhibit 10.2

                                                                   NOVEMBER 2011

SUMMARY REPORT

RED STREAK PROPERTY
NIMPKISH LAKE, BC
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                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

EXECUTIVE SUMMARY                                                             4

1.0   INTRODUCTION                                                            5

      1.1      TERMS OF REFERENCE                                             5

      1.2      LOCATION AND ACCESS                                            5

      1.3      TOPOGRAPHY, CLIMATE, VEGETATION                                6

      1.4      PROPERTY STATUS                                                7

      1.5      PREVIOUS WORK                                                  8

2.0   GEOLOGICAL OVERVIEW                                                     8

      2.1      REGIONAL GEOLOGY AND MINERALIZATION                           10

      2.2      RED STREAK PROPERTY GEOLOGY AND MINERALIZATION                12

3.0   CONCLUSIONS AND RECOMMENDATIONS                                        15

4.0   REFERENCES                                                             16

                                       2
<PAGE>

FIGURES

1. RED STREAK PROPERTY BC LOCATION MAP                                        5

2. RED STREAK PROPERTY REGIONAL LOCATION MAP                                  6

3. RED STREAK PROPERTY LOCATION MAP                                           7

4. REGIONAL GEOLOGY MAP OF THE NIMPKISH AREA                                  9

5. RED STREAK AREA STRATIGRAPHIC COLUMN                                      11

6. RED STREAK PROPERTY MAP                                                   12

7. RED STREAK JASPER PHOTO                                                   13

8. LOWER KINMAN CREEK VALLEY PHOTO                                           14

                                       3
<PAGE>
EXECUTIVE SUMMARY

1.   The Red Streak Property is located near Nimpkish Lake,  Northern  Vancouver
     Island,  about 300  kilometers  northwest of Vancouver,  BC. The Red Streak
     Property  comprises  one MTO cell  claim  totaling  412.508  hectares.  The
     original Red Streak claim was staked on August 14, 2002.

2.   The Red Streak Property was staked to cover a  lapidary-quality  red jasper
     occurrence.  The claims were  recently  expanded to cover a large area with
     skarn and  porphyry  copper-molybdenum  deposit  potential,  similar to the
     Merry Widow Mine, the Nimpkish Iron Mine, and the Island Copper Mine.

3.   The  Nimpkish  Map-Area  is  underlain  by a 5 to 7 km thick  stratigraphic
     sequence of Upper Triassic to Lower Jurassic  Vancouver  Group  sedimentary
     and volcanic  rocks.  The sequence is composed of Upper Triassic  Karmutsen
     Formation marine mafic volcanics,  overlain by Quatsino Formation limestone
     and  marble,  Upper  Triassic  to lower  Jurassic  Parson's  Bay  Formation
     calcareous sediments and tuffs, succeeded by the dominantly andesitic Lower
     Jurassic Bonanza Group Volcanics. All of these units have been intruded and
     metamorphosed by a large Jurassic  granodiorite  pluton called the Nimpkish
     Batholith.

     Skarn-type  mineralization  in the Nimpkish  area is most often found along
     the contact of limestone and intrusive rocks, in limestone-hosted sulphide-
     rich mantos and replacements, and at the "triple point" contact between the
     Karmutsen and Quatsino  formations and intrusives.  Gem-lapidary  grade red
     jasper  occurs in  shear-veins  within  calcareous  sediments and overlying
     Bonanza Volcanics.  There is geological potential for the area to contain a
     porphyry  copper/molybdenum deposit similar in characteristics to the large
     Island Copper Mine located near Port Hardy.

4.   A proposed  work  program  includes  prospecting,  geological  mapping  and
     sampling,   construction  of  a  control  grid,  soil  and  silt  sampling,
     magnetometer  and VLF-EM  geophysical  surveys,  and trenching.  Based on a
     compilation of these  results,  a diamond drill program will be designed to
     explore and define the potential resources.

                                       4
<PAGE>
1.0  INTRODUCTION

1.1  TERMS OF REFERENCE

     This summary report is a compilation of geological data currently available
     regarding the Red Streak  Property  located near Nimpkish  Lake,  Vancouver
     Island,  BC. Historical  information from Laird Exploration Ltd. files, the
     BC Department of Mines, the Geological Survey of Canada,  and other sources
     has been reviewed and used where pertinent.

                     [MAP SHOWING PROPERTY BC LOCATION]

                   FIG. 1 RED STREAK PROPERTY BC LOCATION MAP

                                       5
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1.2  LOCATION AND ACCESS

     The Red Streak Property is located near Nimpkish Lake, BC; about 35 minutes
     drive south of the town of Port McNeill on northern  Vancouver Island.  The
     property covers a recently logged area in the vicinity of

     Kinman Creek,  which flows  westward into  Nimpkish  Lake.  The property is
     accessible to 4 wheel drive  vehicles from the Island  Highway via Canfor's
     Kinman  Creek  logging  road and by recent  spurs  which  cross most of the
     claims.  The property  contains  strong  attributes  toward  cost-effective
     property  development,  including easy access to road, rail, and deep-water
     transportation facilities.

                    [MAP SHOWING PROPERTY REGIONAL LOCATION]

                FIG. 2 RED STREAK PROPERTY REGIONAL LOCATION MAP

1.3  TOPOGRAPHY, CLIMATE, VEGETATION

     The  climate  of the  Nimpkish  area is mild and wet,  with about 400 cm of
     precipitation falling annually,  mostly as rain. Snowfall covers the higher
     areas from November to April,  but seldom persists at lower  elevations for
     more than a few weeks in mid-winter.  First-growth  conifer forest formerly
     covered all of the claims,  but recent  clear-cut  logging has exposed more
     than half the  ground  covered by the  claims.  Karst  topography  and cave
     systems are commonly developed in the limestone near watercourses.

                                       6
<PAGE>
                        [MAP SHOWING PROPERTY LOCATION]

                     FIG. 3 RED STREAK PROPERTY LOCATION MAP

1.4 PROPERTY STATUS

     The Red Streak  Property  currently  consists of 412.51 hectares of mineral
     title,  in good  standing  until August 7, 2007.  The  original  2-post Red
     Streak claim was staked on August 14, 2002.

     BC Tenure #        Work Due Date        Staking Date        Total Area (Ha)
     -----------        -------------        ------------        ---------------

       928870            Nov. 10, 2012      Nov. 10, 2011            412.51

                                       7
<PAGE>
1.5  PREVIOUS WORK

     The Nimpkish  Lake area has been  explored for mineral  deposits  since the
     early 1800's.  The Nimpkish Iron Mine on the Nimpkish  River was discovered
     in the late 1800's, followed by the Kinman Creek Copper and Storey Creek or
     Smith Copper deposits in the 1920's. After an initial flurry of development
     including  short  underground  workings,  numerous  surface  trenches,  and
     diamond drilling in the late 1920's and early 1930's,  activity in the area
     slowed greatly.  Exploration for magnetite in the 1950's and 1960's brought
     about a resurgence  of  exploration.  The  Nimpkish  Iron Mine was put into
     production  from 1959 to 1963,  producing 1.275 million tonnes of iron from
     2.17 million tonnes of ore.

     Exploration  in the  1980's  and  1990's  concentrated  on copper  and gold
     skarns. Prospecting by James Laird in 1988 - 1990 located several promising
     skarn deposits and a large  resource of high-grade  white marble on what is
     now the CBL  Property.  Initial  prospecting  was also done over  parts the
     ground covered by the Red Streak  Property.  A large area of highly altered
     rusty sediments intruded by granitic rocks in the lower Kinman Creek valley
     was found to contain  widespread  small  deposits of pyrite,  chalcopyrite,
     sphalerite and galena (BC AR#20092, 1990).

     The Red Streak  Jasper  occurrence  was located and staked in the summer of
     2002  and  has  produced  a  limited   amount  (<1  tonne)  of   commercial
     lapidary-grade  red jasper for test  marketing.  The Nimpkish area has more
     recently been the subject of several  geological  assessment  reports and a
     2005 BC GSB mapping project.

2.0  NIMPKISH AREA GEOLOGICAL OVERVIEW

     The  Nimpkish  map-area  is  underlain  by a 5 to 7 km thick  stratigraphic
     sequence of Upper Triassic to Lower Jurassic  Vancouver  Group  sedimentary
     and volcanic rocks. Mineralization in this stratigraphy generally occurs as
     skarn-type  metal  deposits  forming in  limestone or marble at or near the
     contact with younger intrusive granitic bodies.

     Historically,   skarn-type   deposits   on   Vancouver   Island  have  been
     economically  important  producers of base and precious metals, and several
     past mines have been in the multi-million  tonne class.  Marble deposits of
     good colour and purity are also presently being mined at several  locations
     on Vancouver and Texada Islands.

                                       8
<PAGE>
              [MAP SHOWING REGIONAL GEOLOGY OF THE NIMPKISH AREA]

                       FIG. 4 NIMPKISH AREA GEOLOGICAL MAP

                                       9
<PAGE>
2.1  REGIONAL GEOLOGY AND MINERALIZATION

     The  Nimpkish  map area is  underlain  by a 5 to 7 km  thick  stratigraphic
     sequence of Upper Triassic to Lower Jurassic  Vancouver  Group  sedimentary
     and volcanic  rocks.  The sequence is composed of Upper Triassic  Karmutsen
     Formation   marine  mafic   volcanics,   overlain  by  Quatsino   Formation
     limestone/marble,  and  Parson's Bay  Formation  calcareous  sediments  and
     tuffs,  succeeded by the dominantly  andesitic Lower Jurassic Bonanza Group
     Volcanics.  All of these units have been  intruded and  metamorphosed  by a
     large Jurassic  granodiorite  pluton called the Nimpkish  Batholith.  Major
     uplift,  folding and faulting  preceded and accompanied  emplacement of the
     multi-phase  granitic  rocks  and  related  skarn  mineralization.   Marble
     development is common in the Quatsino limestone proximal to intrusions.

     Skarn-hosted  mineralization in the Nimpkish area is most often found along
     the   contact   of   limestone   and   intrusive   rocks   (exoskarn);   in
     limestone-hosted  sulphide-rich mantos and replacements; and at the "triple
     point"   contact   between  the  Karmutsen  and  Quatsino   formations  and
     intrusives.  Numerous greenstone dikes and small intrusive stocks are found
     in the limestone  adjacent to the major contact zones,  and commonly have a
     "rind" or contact metasomatic zone of skarn minerals and sulphides.

     The common skarn minerals  present  include;  green  grossularite  and red-
     brown   andradite   garnet,   epidote,   diopside,   manganese   alteration
     (bustamite), calcite and quartz; with magnetite, chalcopyrite,  sphalerite,
     pyrite, pyrrhotite, limonite and occasionally marcasite, hematite, bornite,
     covellite,  tetrahedrite,  galena,  molybdenite,  malachite,  azurite,  and
     greenockite.  Other minerals noted in the altered zones include;  sericite,
     biotite,  k-feldspar and chlorite and occasionally  red jasper,  jade-green
     serpentine,  blue to lavender dumortierite,  lemon-yellow vesuvianite,  and
     green to black tourmaline.

     The Kinman and Smith  properties have  drill-inferred  (non 43-101) mineral
     resources  containing  copper,  zinc, lead,  silver and gold. On the Kinman
     property,  several small (~5000 tonnes) ore-grade massive sulphide deposits
     have  been  found in  limestone-hosted  skarns  and  mantos  near  granitic
     intrusions.  Production  from the Hazel open-pit on the Kinman  property in
     the 1970's amounted to about 3000 tonnes of high-grade copper-zinc ore with
     some gold and silver credits.

     The  adjoining   Smith  Copper   Property   hosts   inferred   reserves  of
     approximately  85,000  tonnes of 12.5% zinc with copper,  lead,  silver and
     minor   gold   values.   The  Smith   deposit   occurs   as  a   stratiform
     skarn/replacement of a regional volcanic/limestone formational contact

                                      10
<PAGE>
     proximal to a large granodiorite  intrusion,  the Noomas Pluton.  Along the
     Nimpkish  River south of Nimpkish  Lake,  the Nimpkish Iron Mine  magnetite
     skarn produced 1.275 million tonnes of iron from 2.17 million tonnes of ore
     in the 1950's and 1960's in a similar geological environment.

     The recent  discovery  on the  adjoining  CBL property of several new well-
     mineralized Zn, Cu, Fe skarns,  and a large area of pure white marble shows
     that significant surface exploration potential still exists in the Nimpkish
     area.

               [MAP OF THE RED STREAK AREA STRATIGRAPHIC COLUMN]

                  FIG. 5 RED STREAK AREA STRATIGRAPHIC COLUMN

                                       11
<PAGE>
                        [MAP SHOWING RED STREAK PROPERTY]

                         FIG. 6 RED STREAK PROPERTY MAP

2.2  RED STREAK PROPERTY GEOLOGY AND MINERALIZATION

     The main rock units  exposed on the Red Streak  Property  are  Parson's Bay
     Formation  sediments  and  volcaniclastics,   granodiorite  of  the  Island
     Intrusions Plutonic Suite, and a limited area of Karmutsen Formation Basalt
     along the eastern edge of the property.

     The  Parson's  Bay  Formation  is a complex  limestone  and  volcaniclastic
     sediment  package with rapid vertical and lateral  changes in facies.  Rock
     types include black limestone,  thin-bedded  cherty  tuffaceous  limestone,
     agglomeratic  limestone,   grey  coralline  limestone  reefs,   thin-bedded
     calcareous  argillite,  and  quartzite.  Marine  fossils are common in some
     units and are usually well preserved.  Andesite flows, sills,  breccias and
     dikes representing the earliest stages of the Bonanza Volcanics are locally
     present. The Parson's Bay Formation is generally fractured and faulted

                                       12
<PAGE>
     near the numerous  intrusives of the Island  Intrusions,  and is very rusty
     due to abundant  pyritization.  Minor mineral deposits  containing  pyrite,
     chalcopyrite, sphalerite, galena and tetrahedrite are common in shear zones
     near the intrusives.

     The intrusive  plutonic  suite  regionally  known as the Island  Intrusions
     includes  stocks,  sills,  and dikes of  granodiorite,  with some  diorite,
     quartz  diorite,  greenstone,  hornblende-feldspar  porphyry,  felsite  and
     quartz-  feldspar  porphyry.  The  contact-altered  granitic rocks can host
     minor  occurrences  of pyrite,  chalcopyrite  and  molybdenite in endoskarn
     zones, vein systems, shears, breccias and disseminations.

     The limited area of Karmutsen  basalt on the eastern  boundary was found to
     contain minor amounts of pyrite, magnetite and chalcopyrite.

                        [PHOTO SHOWING RED STREAK JASPER]

                            FIG. 7 RED STREAK JASPER

     The  original  mineral  deposit  located  on the Red Streak  Property  is a
     lapidary-quality  red jasper deposit located close to a major logging road.
     Three separate jasper-bearing shear zones cross an andesite flow or sill.

                                       13
<PAGE>
     The jasper has been  hand-trenched  and test  sampled,  removing  about one
     tonne of material for  test-marketing.  The jasper is a striking bright red
     colour with patches of pyrite and green epidote.  It has been  successfully
     fashioned  into  cabochons,  polished  slabs and tumbled  stones by various
     lapidary  shops and mineral clubs.  An  approximate  price the raw material
     sold for in <1 kg.-sized  pieces was $5.00/kg.  Given the visible  trenched
     length of the known  deposits  and assuming a similar  depth and width,  in
     excess of ten tonnes of jasper is approximated to be present.

     On the north side of Kinman Creek along the access  road, a one-metre  wide
     shear-hosted  deposit  containing  sphalerite,   galena,  chalcopyrite  and
     tetrahedrite  has been located.  Assays from this zone give values up to 38
     ppm silver,  9.74% zinc, 4.34% lead, 3.51% copper, 388 ppm molybdenum,  and
     811 ppm cadmium.

     The rock units  present in the lower Kinman  Creek area are highly  altered
     and  pyritized  by  stocks  and  dikes  of   granodiorite.   The  style  of
     mineralization  present is possibly  related to a porphyritic  phase of the
     Nimpkish  intrusion,  which is  similar  to the  geological  setting of the
     Island Copper Mine located near Port Hardy. The Island Copper Mine produced
     approximately 345 million tonnes of ore from 1971 to 1994 having an average
     head-grade of 0.41% copper,  0.017%  molybdenum,  0.19 g/t gold and 1.4 g/t
     silver.

                    [PHOTO SHOWING LOWER KINMAN CREEK VALLEY]

                         FIG 8 LOWER KINMAN CREEK VALLEY

                                       14
<PAGE>
3.0  CONCLUSIONS AND RECOMMENDATIONS

     A proposed work program  includes  reconnaissance  prospecting,  geological
     mapping  and  rock  sampling,  construction  of  a  control  grid,  EM  and
     magnetometer  geophysical  surveys,  and  soil  geochemical  sampling.  The
     anticipated  costs of this  development  are  presented  in three  results-
     contingent stages.

PHASE 1 COST ESTIMATE

 Consultant/Project Manager - 7 days @ $450/day                     $  3,150.00
 Geologist - 7 days @ $450/day                                      $  3,150.00
 Sampler/Geological Assistant - 7 days @ $250/day                   $  1,750.00
 Truck rental - 1500 km @ 0.75/km inclusive                         $  1,125.00
 Rock assay samples - 50 @ $50.00 per sample                        $  2,500.00
 Soil and silt samples - 150 @ $25.00 per sample                    $  3,750.00
 BC Ferries                                                         $    250.00
 Per diem - 21 man-days @ $125.00 m/day                             $  2,625.00
 Misc. sampling and field supplies                                  $    500.00
 Report and reproduction costs                                      $  1,500.00
                                                                    -----------
 SUBTOTAL                                                           $ 14,000.00

 Management Fee @ 15%                                               $  2,100.00
 Contingency @ 10%                                                  $  1,400.00
                                                                    -----------

 TOTAL                                                              $ 17,500.00
 GST@ 6%                                                            $  1,050.00
                                                                    -----------
 NET TOTAL                                                          $ 18,550.00
                                                                    ===========

PHASE 2

Detailed geological mapping and rock sampling,
grid construction, soil and silt geochemical survey,
IP and magnetometer surveys, establish drill and trenching
targets, four-man crew with supplies, transportation, report;
est.14 day program.                                                 $ 90,000.00

PHASE 3

1000 metres of diamond drilling @ $100.00 per metre, plus
geological supervision, assistant, supplies, transportation,
assays, report and other ancillary costs; est. 21 day program.      $170,000.00
                                                                    -----------

TOTAL                                                               $278,550.00
                                                                    ===========

                                       15
<PAGE>
4.0  REFERENCES

     Gunning,  H.C.,  (1930);  Geology  and Mineral  Deposits  of the  Quatsino-
     Nimpkish Area,  Vancouver  Island,  BC. Geological Survey of Canada Summary
     Report 1929 Part A, P. 94-107.

     Laird, J.W., (1990); Geological Report on the Nimpkish Group. BC Assessment
     Report #20,092.  Laird Explorations Ltd.  Prospector and Mining Exploration
     Contractor  provided  prospecting  notes on the  geology  of the Red Streak
     Property area and Nimpkish Lake mining camp.

     Nixon, G.T., Kelman,  M.C.,  Stevenson,  D., Stokes,  L.A., Johnson,  K.A.,
     (2006);  Preliminary  Geology of the Nimpkish Map Area,  Northern Vancouver
     Island, BC. Geological Fieldwork 2005, Paper 2006-1 p.135- 152.

     Thomson,  Gregory  R.,  Geoscientist  &  Consulting  Geologist  of 25 years
     Provided  notes and personal  experience of mineral  exploration  and local
     geology  gained while  employed as a  consulting  geologist in the Nimpkish
     Lake region of BC.

                                       16

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