MOUNT SKINNER                      J/V PROPOSAL

This  property, situated less than 40 miles from the largest gold deposit in B.C. along the same controlling fault, is held by Ottarasko Mines Ltd., a  private company which plans to mine a small bonanza outcrop zone in 2012 and 2013. This zone is part of a much larger gold system which has not been drilled or tested so far. A joint venture for financial/operational enhancement of this project is considered, with the ultimate goal of going public with a profitable operating gold mine.

PAST EXPLORATION   (narrative and photos)

SOURCE DOCUMENTS (due diligence documentation)

CONTACT Louis Berniolles   514-285-8550        louis@mountskinner.com

SUMMARY

The first showings on the 720 ha. Mount Skinner property were discovered in 1990 by Ottarako Mines Ltd. during a regional geochemical survey of the northern section of the Yalakom fault, a major northwest trending structural break in west-central British Columbia. This fault, and its associated splays and subsidiary faults, is the main structural control of  the most important gold camp in B.C., stretching from the Goldbridge area to the southeast, to the Tatla Lake area to  the northwest, over a distance of 170 km. or so. This camp includes the Bralorne mine, the most prolific past gold producer in B.C. to date, which along with the nearby King and Pioneer mines produced over 4,000,000 ounces of gold between 1932 and 1971, and the Fish Lake (Prosperity) deposit, which currently holds the largest gold reserve in B.C., over 13,000,000 ounces of gold.

Structurally, the Mount Skinner mineralization is similar to the Bralorne area deposits: steeply dipping gold-quartz veins located in the extensional breaks flanking a major fault. This type of deposit can extend to great depth, and some of the Bralorne mine veins have been exploited down to 1800 metres below surface. On the Mount Skinner property the surface showings indicate a one mile long fault-controlled system of en-echelon veins  almost perpendicular to the nearby Yalakom fault. The westernmost vein in this system was tested by shallow diamond drilling (939 m in 15 holes, over a strike length of 85 m and to a maximum depth of 65 m) and by underground development between 1991 and 1994. This work outlined a near-surface bonanza resource of approximately 5000 oz/Au, and underground bulk sampling in 1995-96 confirmed the continuity of grades at depth, and the suitability of the ore for the cyanidation process, with recoveries exceeding 98%. Twenty bulk samples were taken, grading between 1 and 3.5 ounces of gold per tonne, yielding a total of 1295 oz/Au  in 701 metric tonnes (57.46 gr/tonne). A further 2300 tonnes to be extracted from the near-surface bonanza zone are expected to yield 3700 oz/Au, worth approximately C$6.6 M at the current price for gold, for an expected gross profit of  over C$3 M . A Discounted Cash Flow Valuation dated February 2010, based on a gold price of $1250 per ounce, gives a total  value of C$1.4 M for the only vein developped so far on this project, after taking income tax, mining tax and time discount factors in account. This valuation does not factor in the exploration value on the major part of the property. Less than 10% of the total system strike length has been tested by drilling or underground development, and the down-dip potential is considerable if the Bralorne precedent holds, so the possibility of finding several hundred thousand ounces of gold in the entire system is realistic.

Ottarasko is seeking a  joint venture partner for further development of this project. A first stage of mining of the established "bonanza" resource will  give visibility to the venture, and the profits generated will be in part reinvested in a drilling program to enlarge the resource base. This may be followed by a public listing  so that an exit stategy is provided to the original investors. Ottarasko is also open to discussing an option deal on the property for exploration purposes. No mining would be allowed under this scenario until Ottarasko relinquishes control under the terms of the deal.