Temagami North Diamond Property

The 100% owned Temagami North Property is comprised of 122 non-contiguous mining claim units in the New Liskeard / Cobalt kimberlite field in northeastern Ontario. It is underlain by the same Archean basement rocks that host the Victor Pipe, where De Beers is carrying out feasibility studies for a diamond mine to the North, near Attawapiskat, Ontario. De Beers has reported a 36 million tonne inferred resource grading 0.43 carats per tonne and is undergoing feasibility studies with a view to mining commencing in 2008. The Victor Pipe lies at the northern extension of the Lake Timiskaming Structural Zone (“LTSZ”), a broad northwesterly trending zone along which a number of kimberlite clusters occur. Following the LTSZ clusters south and east from Attiwapiskat to Kirkland Lake and the New Liskeard/Cobalt area, more than 30 kimberlite pipes have been located, some of which are diamond bearing.

Contact Diamond Corp. have recently reported 67 carats of commercial quality diamonds (1,449 diamonds) from their 650 tonne (dry) mini bulk sample of their 95-2 Pipe, including four +1 carat stones and the discovery of another diamond bearing pipe, KL -22, thought to be similar to 95-2, 20 kilometers to the southwest. A number of the Company’s targets lie around and within this discovery area.

In addition to the diamond potential, there is excellent potential for gold and base metal discoveries.