STRICKLAND PROPERTY

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Strickland Prospects

ST129

The Strickland Property, located approximately 30 kilometres to the southwest of the Blue Hills prospect area is 100% owned by the Company and covers the same stratigraphy that is host to uranium mineralization on the Hermitage Property. The Troy's Pond prospect consists of two bedrock uranium occurrences in metasediments with scintillometer counts of 3,000 - 7,000 cps (counts per second). The occurrences are 4 metres and 6 metres wide as measured by scintillometer readings over bedrock and shallow overburden. Two 1.5 kg chip samples were taken from bedrock after digging through 30 centimetres of overburden. These samples assayed 0.19% U3O8 and 0.22% U3O8. Fifty metres to the south in a separate stratigraphic unit, two samples from a small bedrock exposure assayed 0.02% and 0.045% U3O8. Another 16 boulder and bedrock samples with lower scintillation counts are scattered across the southern margin of the Strickland Property; eight had values ranging from 120 ppm to 430 ppm U3O8, while the other eight had background values.

Approximately one (1) kilometre to the east along-strike from the Troy's Pond prospect on the Strickland Property, a new uranium showing area is centered on airborne radiometric anomaly ST-129 where scattered anomalous outcrops extend for a strike length of over 400 metres in a northeast-southwest direction between airborne anomalies ST-128, ST-129 and ST-131. An altered outcrop area situated just to the north of the centre of ST-129 returned highly anomalous scintillation counts over a 65 metre (or 210 foot) wide interval across the strike of the local rock units with counts ranging from 850 to 4,500 CPS over a background of 100 to 150 CPS outside the altered zone. Results from these samples included five that ran over 0.20% U3O8 with two assaying 0.80% and 0.31% U3O8. Two other samples ran between 0.10% and 0.19% U3O8 and a further seven were highly anomalous containing between 0.045% to 0.083% U3O8. Samples were taken from the central, high count radiometric zone which is up to 35 metres wide within the lower count halo of the 65 metre wide alteration zone.

The host rock to the ST-129 showing is intensely bleached and silicified, fine grained and layered with biotite bands and is tentatively identified as a felsic volcanic.

A photo of the anomaly #129 area is below with the approximate boundaries of the alteration zone trending northeasterly across the image. The high count scintillation exposures end in swampy grasslands to the northeast and southwest. The wider envelope of hydrothermal alteration remains open.

Within the Strickland Property, a small claim group called "Quinlan" was optioned from a local prospector. A high count radiometric occurrence was located in the bed of the Cinq Cerf River in the approximate area where a 0.19% U3O8 assay was reported by Shell Minerals in the 1980's. Anomalous radiometric counts ranging from 3,000 to 6,500 CPS were obtained from several exposures above the flowing water of the river and uranium oxides were noted in the exposure. Although the geological setting was difficult to determine due to flowing water, it was established that angular quartz fragments comprise 30-50% of a highly altered and sheared host rock. Strong hydrothermal alteration consisting of silicification and sericite mica alteration is associated with the high radiation count breccia. Prospecting on the south canyon rim discovered a new area of sub-crop of similarly altered breccia about 500 metres west of the Cing Cerf River showing. These sub-crops also have anomalous scintillation counts up to 2,500 CPS and values to 0.13% U3O8. This new showing may be linked to the original discovery but it is too early to confirm.

TROY'S POND 2006 DRILLING

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TROY'S

Results from eight core holes totaling 960 metres, completed in late 2006 on the Hermitage Uranium Project, Newfoundland, five on the ST-129 prospect and three on the Troy's Pond prospect. At Troy's Pond, hole SP-06-06, drilled to test outcropping uranium mineralization, intersected 0.045 percent U₃O₈ or 1.0 pound per tonne U₃O₈ over 4.3 metres between 42.5 to 46.8 metres including 0.065 percent U₃O₈ or 1.4 pounds per tonne over 1.8 metres between 42.5 and 44.3 metres and 0.14 percent U₃O₈ over 0.3 metres. This mineralization occurs within a 15.5 metre wide drill interval containing 0.021 percent U₃O₈ from 39.5 to 55.0 metres at a vertical depth of about 40 metres below the surface mineralization. Several other anomalous zones carrying from 100 ppm to 150 ppm U₃O₈ over 0.5 to 1.5 metres were encountered to the bottom of the hole which was lost at 104 metres.

A second hole on the Troy's Pond prospect, drilled towards hole SP-06-06 and designed to test another bedrock target, intersected anomalous uranium mineralization between 103.0 and 112.5 metres ranging from 65 ppm U₃O₈ to 275 ppm U₃O₈. The hole was terminated at 184 metres due to drilling problems. The hole does not appear to have reached the zone intersected in hole 06. A third hole was drilled 50 metres along apparent strike, west of hole SP-06-06 to a depth of 150 metres. This hole encountered anomalous zones ranging from 50 ppm to 140 ppm U₃O₈ over one to three metres.

The geology of Troy's Pond consists of steeply-dipping biotite-rich metasediments or metavolcanics containing stratabound uranium mineralization. The stronger uranium mineralization is associated with 5 to 10% disseminated pyrite which can be detected using geophysical techniques. This will allow us to detect the stronger uranium mineralization under the extensive overburden cover to guide a follow-up drill program.