Beaver Brook Antimony Mine Inc

2009

Assessment Report

For

Beaver Brook Antimony Mine Inc.

Licence 12649M,

NTS 2D/11

Newfoundland and Labrador

Submitted by: James H. Reeves For Beaver Brook Antimony Mine Inc. October, 2009

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Table of Contents

1.0 Summary and Recommendations ............................................................................ 2

1.1 Introduction .......................................................................................................... 21.2 Location ................................................................................................................ 31.3 Previous Work ...................................................................................................... 41.4 Geology ................................................................................................................ 51.5 Mineralization ...................................................................................................... 71.6 Hydrogeology ....................................................................................................... 81.7 Resource Estimates .............................................................................................. 81.8 Proposed Exploration ........................................................................................... 9

1.8.1 Grid Construction.......................................................................................... 91.8.2 IP Survey ..................................................................................................... 10

1.9 Program Results ................................................................................................. 102.0 Conclusions and Recommendations ...................................................................... 113.0 Authors Certificate of Qualification ..................................................................... 13

List of Figures

Figure 1 Property Location, Newfoundland .................................................................... 3Figure 2 Property Claim and Mine Lease Map ................................................................ 4Figure 3 Geology of Property .......................................................................................... 6Figure 4 - Property Mineral Resource Estimates ................................................................ 9

List of Appendices

Appendix 1 Map of Mine Grid Appendix 2 IP Survey Maps Appendix 3 Personnel and Man Days Appendix 4 Statement of Expenses

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1.0 Summary and Recommendations

The Beaver Brook Antimony Mine property was staked in late 1980. Exploration programs conducted during the late 1980s and the early 1990s, identified three zones containing antimony mineralization. Subsequent property exploration programs resulted in the development of an underground mining operation on the Eastern Zone. The resource potential of much of the property, including the Central and Western zones, remained to be evaluated. The reconstruction of the mine grid and an IP survey over the grid area during the winter and summer of 2009 formed the basis for the future evaluation of the mineral resource potential of the property. The geophysical survey was designed to identify geological structures with the potential to host economic antimony mineralization. A total of 70.5 line kilometers of grid was cut and subsequently surveyed during the geophysical program. The IP survey successfully identified an east-west trending chargeability anomaly from the West Zone, through the Central Zone and intersected a second northwest-southeast trending chargeability anomaly immediately to the west of Coopers Brook. The northwest-south east trending chargeability anomaly is thought to be the western extension of the structure that hosts the mineralized zone at the mine and appears to be offset by a northwest-southeast trending fault. Following the 2009 exploration program, the establishment of additional survey grid, the continuation of the IP survey over the new grid area, the undertaking of a detailed soil geochemistry program and drill testing of the favorable geophysical and geochemical target(s) is recommended. 1.1 Introduction The Beaver Brook Antimony Mine property is comprised of two Mine Leases (No. 146 and No. 199) and one Mineral Claim Block (12649M). The property is located 24 kilometers (via the Trans Canada Highway) west of Gander and 43 kilometers by gravel road south west of the town of Glenwood, Newfoundland. Exploration programs conducted in the late 1980s and the early 1990s, identified three zones containing antimony mineralization. Subsequent property exploration programs resulted in the development of an underground mining operation on the Eastern Zone. The reconstruction of the mine grid and the completion of the IP geophysical program were considered to be the first phase of a more though evaluation of the resource potential of the property.

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1.2 Location The property (See Figures 1 & 2) is located 60 km to the southwest of Gander Newfoundland, Canada. Gander is serviced by regular domestic and international air transportation. Access to the property is via paved Highway 1 west for 23 km to Glenwood and then southwest via a gravel forestry road for 43 km to the mine site. The property is bounded by UTM coordinates (NAD 27, Zone 21) 5,394,000N and 5,399,000N and 627,000E and 635,000E

Figure 1 Property Location, Newfoundland

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Claim 12649M Mine Leases 146 & 199

Figure 2 Property Claim and Mine Lease Map 1.3 Previous Work Recorded mineral exploration in the area surrounding the Beaver Brook Antimony Mine site was very limited prior to the Noranda Exploration program undertaken in 1988. This work appears to be one of the first systematic property evaluations to be undertaken. Although gold was the focus of the early phases of the program, the identification of anomalous antimony values in soil samples by the Noranda/Noront Gubline Syndicate in June of 1989 lead to the outlining of three areas containing significant antimony mineralization. The West, The Central and the East zones were subsequently drill tested during drill programs conducted between 1990 and 1995. In 1995, a ramp was driven into the Eastern Zone to explore and test the resource identified through the previous drill programs. An underground sampling program confirmed the drill results. Kilborn Tecsult was contracted in February 1996 by Roycefield Resources to prepare an independent Mineral Resource and Mineable Reserve Study. The study was completed under the guidelines defined by the CIM&M and identified Probable Reserves of 898,400 metric tonnes grading 3.70% Sb. During 1997, the additional drilling of 36 holes and the deepening of one other hole was completed. The results of this drilling indicated antimony mineralization to a depth of 300m. A decision to construct a mill was confirmed and the facility was completed during the year. The 450-tpd mill was commissioned with 23000 tonnes of muck that was stockpiled during development work. In 1998, the processing of the stockpiled muck was completed and the operation was put on a care and maintenance basis with the falling price of antimony. The mine workings were subsequently allowed to flood.

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Beaver Brook Resources purchased the assets of Roycefield through the Government of Newfoundland and Labrador (the appointed receiver) in 2002. In 2003, VVC Exploration Corporation entered into an agreement with Beaver Brook Resources to acquire all of the assets of the Beaver Brook Antimony Mine. The following year, 2004, VVC Exploration Corporation completed 12,963 m of drilling in 73 holes to verify the presence of mineralization that was previously indicated by Roycefield in the early 1990s. On August 4, 2005, VVC Exploration Corporation finalized an agreement with the former owners, Beaver Brook Resources that released VVC Exploration Corporation from previous commitments. The resulting agreement gave VVC Exploration Corporation 27.5% and Beaver Brook Resources Ltd 72.5% interest in the Beaver Brook Antimony Mine. During November of 2005, MRB & Associates were requested to review the results of the 2004 drill program and a completed a technical report was submitted in February of 2006. The report identified a combined resource including the East and Central zones of 1,691,380 tonnes of Sb with a grade of 5.16%. In the summer of 2007, the Beaver Brook Antimony Mine was dewatered in preparation of bringing the mine back into production. GeoStat International Inc was also contracted in 2007 to complete a 43-101 compliant technical report for the property. The report identified a total indicated resource of 1,062,600 tonnes and an inferred resource of 861,070 tonnes. Mill start up was undertaken in the summer of 2007 and the mill was commissioned in January of 2008, with the first ore processed during that month. Mine production continued during 2008 and ramp development work was initiated to access deeper areas of the resource. 1.4 Geology The regional geology (Figure 3) of the area surrounding the immediate mine is comprised of three main components: Mount Peyton Intrusive Suite, the Indian Islands Group and the Davidsville Group.

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Figure 3 Geology of Property

The Davidsville group is comprised of black graphitic shale, sandstone, and conglomerate containing a large proportion of mafic clasts. Locally, the shale unit contains graptolite fossils that have been classed as Caradoc in age. This unit is overturned and thrust to the west. The Indian Islands Group is composed of shallow marine sediments that are considered to overlay the Davidsville Group. The sequence is comprised of shale, siltstone, and limestone. The limestone is the dominant lithology in the basal sequences. The unit grades upward into shale and into interbedded red siltstone with minor limestone. Fossils of the bivalve Cuneamya arata in the upper sediments indicate an age of Pridoli (late Silurian) to Gedinnian (early Devonian). The Mount Peyton Intrusive Suite, located to the north west of the mine site underlies an area of approximately 1400 km2. The intrusive complex can be inferred to be a laccolith suggesting that the intrusion is comprised of four phases (from oldest to youngest) pyroxene-hornblende gabbro, quartz diorite-granodiorite, biotite granite, and biotite-hornblende granite. Only the biotite granite phase is found to the west of the mine site. Age dating of the complex suggests an age of 424 +/- 2Ma for the gabbroic phase and 419 +/-2Ma for the granitic phase. Additional geochemical data from Mitchinson (2001) indicated that the southern gabbro in part of the Caribou Hills Intrusion was intruded by the Mount Peyton Intrusive Suite. The type of contact between the Indian Islands group and the Mount Peyton Intrusive Suite (MPIS) is not well established because of limited bedrock exposure. Williams (1993) considered the MPIS to have intruded the Indian Islands Group despite the lack of

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a well formed metamorphic aureole similar to the one in the western margin of the intrusion. Barbour (2003) suggested that the intrusion was in part structural in nature, based on outcrop exposure in the brooks to the north of the mine site. Mapping conducted by J.W.L Lake and D.H.C. Wilton in 2006, concluded that the contacts are intrusive. This conclusion concurs with the findings of Dickson (1991) and G. Squires (unpublished data). 1.5 Mineralization The stibnite mineralization has been identified in three areas on the property. These areas are from west to east: the West Zone, the Central Zone and the East Zone. Mineralization is primarily restricted to within fault zones in the sedimentary sequence and form a boudinage, or pinch and swell, type of structure. West Zone This zone was originally called the Xingchang Showing and was identified by boulders in the overburden and anomalous antimony in the soil geochemistry survey. This zone is the least well known of the three and has been tested by only six diamond-drill holes. Stibnite mineralization was observed in the core with assay values up to 33% Sb over 0.5 metres. Trenching was undertaken to expose the mineralization. Central Zone The Central Zone or Hunan Prospect has the best exposure of the three zones and is visible in a trench that was dug across the zone. The vein system exposed in the trench is comprised of a series of discontinuous lenses that trend at 050o and vary from 1 to 10 cm in thickness. The silicification and brecciation features at this site are similar to those observed in the western zone. In addition, there appears to be a correlation between the degree of brecciation and the antimony content. The increased brecciation corresponds with increased Sb content. Accessory minerals identified in the vein system included quartz, barite, calcite and occasionally pyrite. The pyrite is commonly associated with chlorite and is not related to the stibnite mineralization. The host rocks in the Central zone vary slightly from those in the West Zone as they are comprised of greywackes interbedded with minor black shales. The greywackes contain minor amounts of sericite. The source of the sericite has not been determined and could be related to either an earlier metamorphic event affecting the greywacke or may have formed during the emplacement of the stibnite veins.

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East Zone The East Zone, previously known as the Szechwan Prospect, hosts the mineralized structure that contains the active mine workings for the Beaver Brook Antimony Mine. The anomalous soil geochemistry samples had identified the area of potential mineralization, which was subsequently drill tested in 1994. The East Zone was initially identified as containing the higher grade material and was thus chosen as the site for the development of a ramp, designed to access the mineralized zone for additional evaluation. The mineralization in the East Zone is similar to that of the other two zones, with the stibnite being the only significant mineral present. Massive stibnite veins of up to a meter in thickness occur in the less disturbed sections of the zone, where they tend to follow a single fracture. Stibnite, in the form of small elliptical lenses and thin fracture fillings occurs in the adjacent footwall fault gouge. These mineralized fractures generally trend ENE WSW and dip to the south at -65o to -75o. The vein structures pinch and swell both along strike and down dip. A wider interval of mineralization has been identified on levels between 9930 and 9895 with a -65o to -75o dip to the south and a rake of 50o to 60o to the west. Trace amounts of pyrite along with dolomite and quartz are also present in the vein system. Little or no alteration is present. The host rocks correlate to the Indian Islands Group and consist of green-grey siltstones that grade into sandstones. Assemblages of fossils have been identified in the sandstones that are similar to those identified in Coopers Brook. Flame structures suggest that the stratigraphy is overturned. 1.6 Hydrogeology The area of the mine property is underlain by glacial till. The topography of the mine area consists of gently rolling hills sloping south to the Northwest Gander River. Vegetation consists of stunted spruce and scrub and fir brush with numerous marshes and peat bogs. Drainage is poor to moderate with occasional small brooks draining to the south into the Southwest Gander River, which empties into Southwest Gander Lake. 1.7 Resource Estimates The resource estimates (Figure 4) for the property were prepared by MRB & Associates of Val dOr, Quebec in February, 2006 and by Geostat International Inc. of Blainville, Quebec in February 2008. The following table summarizes the results of the two estimates.

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Figure 4 - Property Mineral Resource Estimates

1.8 Proposed Exploration 1.8.1 Grid Construction The original mine grid was designed to cover the area underlain by the West, Central and East zones. A baseline was run on a bearing of 050 (230) degrees for a distance of 5.5 kilometers and profile lines were established at 100 meter intervals along the baseline. The profile lines varied in length to the north and south of the baseline to provide coverage over the mineralized zones. The grid lines were chained and picketed at a 25 meter interval. A total of 70.5 line kilometers of grid were established in the original grid. The 2009 field work involved the reconstruction of the original mine grid. Surveyors established a start point and ran check surveys during the line cutting program to maintain control. Andrews Exploration from Kings Point, NL were contracted to complete the reconstruction of the grid. A total of 70.5 line kilometers of grid were constructed during the program. The grid was cut during the winter and the eastern area

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of the grid required a re-cut after the snow melted in the spring to permit the completion of the IP survey. A total of 47.575 line kilometers of grid were re-cut. 1.8.2 IP Survey A review of the exploration programs that had been conducted over the past twenty years indicated that several currently acceptable methods that could have been used to evaluate resource potential of the property had not been employed. Apart from the early phases of property assessment that included prospecting, grid construction, soil geochemistry surveys and diamond drilling, no consideration had been placed on the value of geophysical information in the process of identification of geological structures. These fault-related structures have the potential to host Sb mineralization similar to the system presently being mined. Such geophysical surveys have the potential to identify the east-west extension of the known vein system at the mine and also to delineate any parallel structures that may contain significant stibnite mineralization. The completion of an IP geophysical survey was proposed to cover the area from the western limits of the mine workings on the East Zone to the western extreme of the West Zone. The survey has the capability of identifying chargeability highs such as faults and massive stibnite. A total of 45.5 line kilometers of IP geophysics were originally planned to cover the grid area to the west of the mine site. Eastern Geophysics Ltd of Corner Brook, NL were contracted to complete the IP survey over the grid area. The first Phase of the survey was completed during the late winter/early spring of 2009. The success of Phase I of the geophysics program led to the extension of the Eastern Geophysics contract for the completion of 23 line kilometers of IP survey over the remainder of the grid area (excluding the mine site proper due to sub-surface interference generated by mine operations). Phase II of the survey was completed in August and September of 2009. 1.9 Program Results

Eastern Geophysics from Corner Brook were contracted to complete the IP geophysical program over the grid area. The IP survey was conducted using a BRGM Elrec-6, six-channel programmable IP receiver, a Phoenix IPT-1, 3 kW IP transmitter and a Phoenix MG-2, 2.5 kW Motor Generator. Two cables, a 100-metre long transmitter cable and a 150-metre long receiving cable were laid out along the grid profile lines and systematically moved along the grid during the survey. The receiving cable was fitted with grounding rods every 25 metres. Current was transmitted through 2 dipoles on the transmitter cable at an interval of 2 sec on/2sec off and received through 6 dipoles on the receiver cable. Six readings were recorded at a time from N-1 to N-6 with a depth penetration of 12.5 to 75 metres. The operating principle of the IP system is to measure the capacitance effect or the chargeability exhibited by electrically conductive materials. Measurement of IP is done by pulsating an electric current into the earth at two second intervals through metal electrodes. Disseminated conductive materials in the ground will discharge the stored energy during the pause cycle. The decay rate of the discharge is measured by the non-polarizable materials present. Both IP and resistivity measurements

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are taken simultaneously during the survey. Survey depth is determined by electrode spacing.

The survey data was subsequently sent to Gerard Lambert, a professional geophysicist in St Andre-Avellin, PQ, for the interpretation. The final interpretation identified 18 strong and 70 weaker individual anomalies. The majority of these individual anomalies are included in three significant anomalous trends that were identified crossing the property. Two converging anomalous trends, one beginning on L4500E and a more northerly trend on L4900E, trend southwest-northeast to merge at Line 6800E and continues as one anomaly to L7500E. The more southerly of these two anomalous trends crosses and is coincident with the West and the Central zones. The third anomalous trend begins at the western end of the mine workings at L8500E and trends to the West where it goes off the existing grid between L7200E and L7300E. The second phase of the IP survey identified the continuation of this trend to the east of the mine workings. A northwest-southeast break in the anomalous trends appears between L7200E and L7700E and may represent a fault zone resulting in a horizontal displacement of the anomalous chargeability trends. Additional IP survey data to the northwest is required in order to help determine the possible displacement of this assumed fault zone. 2.0 Conclusions and Recommendations The 2009 exploration program involved the re-establishment of the original mine grid followed by the completion of an IP survey. The work successfully identified chargeability anomalies that appear to be associated with the known Sb mineralization on the property. Soil geochemistry sampling of the property in the past did not provide complete coverage. However, in areas where soil geochemistry results are available, a number of the chargeability anomalies underlie above background Sb soil values. In order to continue a proper mineral resource evaluation of the property, the following work is recommended:

1. Continue the present mine grid east to the mine lease boundary to provide coverage of the area of the eastward extension of the chargeability high that crosses through the mine workings. Profile lines should be established at 100 meter intervals along the baseline. Lines are to be chained and picketed at 25 meter intervals. A total of 16.5 line kilometers of grid construction are required.

2. Continue the construction of the mine grid to the north and east from L4500E to L8000E to cover the westward extension of the chargeability high that crosses through the mine. Existing profile lines are to be extended to the north and a tie line is to be constructed at the north end of the profile lines. A total of 34.5 line kilometers of grid construction is required.

3. Complete a soil geochemistry survey over the entire grid with the exception of the area of disturbed soil in the immediate area of the mine site. Approximately 5000 soil samples are required to be collected during the survey.

4. Complete an IP survey over the area of new grid construction. Approximately 51 line kilometers of survey is required.

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The completion of the above outlined work will provide data that can be used to design a drill program to test areas identified as contain anomalous Sb values and IP chargeability highs. A successful drill program has the potential to extend the Sb resource of the current mine and to identify potential new economic Sb resources.

Appendix I - Map of Mine Property

Appendix II - IP Survey Results

Appendix III - Personnel and Man Days

Appendix III - Personnal and Man Days

Company Personal

Jim Reeves Geologist ------------------------------15 days

Ryan Newman Geologist------------------------- -12 days

Jon Small Surveyor --------------------------------- 5 days

Russ Lambert Surveyor -------------------------- ---5days

Contractors

Andrews Exploration - Line Cutting Crew (February - April,2009)

Art Andrews

Lee Saunders

Justin Austin

Jeramy Cave

Liner Cutters Private Contractors (June, 2009)

Kirk Walsh

Owen Chaulk

Eastern Geophysics Crew (March May, August, 2009)

Mike Tatlock

Eldon Norman

Nolan Nippard

Alexander Goodyear

Maurice Parent

Alfred Sheppard

Ken Sheppard

Kirk Walsh

Gerard Lambert Geophysical Consultant (July, 2009)

Gerard Lambert

Appendix IV - Statement of Expenses

Appendix IV Statement of Expenditures

Company Personal Jim Reeves Geologist - (15 days @ $426.56/day) $6398.40 Ryan Newman Geologist (12 days @ $297.60/day) $3571.20 Jon Small Surveyor (5 days @ $338.52/day) $1692.60 Russ Lambert Surveyor (5days@ $297.60/day) $1488.00

Contractors Andrews Exploration - Line Cutting Crew (February - April, 2009)

70.5 line kilometers at $400/line kilometer = $28,200.00 25 kilometers re-cut @ $325/line kilometer= $8125.00

Liner Cutters Private Contractors (June, 2009)

22.575 kilometers of re-cut at 4200/line kilometer = $4515.00 Eastern Geophysics Crew (March May, August, 2009)

59.125 line kilometers of IP = $73906.25 Mob/demob plus weather days = $15000.00

Gerard Lambert Geophysical Consultant (July, 2009)

IP Data interpretation and report = $3955.00 Sub-total $146851.45 Administration Costs $22077.18 Total $168,928.63 3.08% of the Total Costs are applicable to Claim 12649M = $5203.00

Title PageTable of Contents1.0 Summary and Recommendations2.0 Conclusions and Recommendations3.0 Authors Certificate of QualificationList of FiguresFigure 1 Property Location, NewfoundlandFigure 2 Property Claim and Mine Lease MapFigure 3 Geology of PropertyFigure 4 - Property Mineral Resource Estimates

List of AppendicesAppendix 1 Map of Mine GridAppendix 2 IP Survey MapsAppendix 3 Personnel and Man DaysAppendix 4 Statement of Expenses