Raleigh Lake

The Raleigh Lake Property is located in Osaquan Township in the Kenora Mining Division of north-western Ontario. The Raleigh Lake Area is located near the town of Ignace, Ontario. The property can be reached along timber roads south of Highway 17 approximately 20 kilometres west of Ignace and via two different overland routes located another 10 to 15 kilometres south of the highway.

11 unpatented mining claims for approximately 114 claim units for approximately 4,560 acres.

Rare Earth Elements and Gold

The original three claims (4229779, 4229780, and 4229781) were staked in 2009 and optioned from Perry English for stock and monetary considerations. The next four claims were staked in 2009 by King’s Bay Gold (4248674, 4248675, 4251315, and 4251316 – 48 claim units). The last four claims (4224142 to 4224145) were acquired on June 14th, 2010 in a Property Interests Exchange Agreement with Mainstream Minerals Corporation (TSX.V: MJO) when King’s Bay Gold gave up its remaining 40 % joint-venture interest in the Bobjo Mine Project located in Birch-Uchi area near Confederation Lake, Ontario. The Property Interests Exchange Agreement provided that King’s Bay Gold would be responsible for the remainder of the original stock and monetary considerations under an option agreement with Perry English.

Four of the un-patented mineral claims that were staked in 2009 (4251315, 4251316, 4228674 and 4248675) are owned 100 % by King’s Bay Gold Corporation. The other 7 claims (4224142 to 4224145 and 4229779 to 4229781) are optioned through Perry English and require annual property payments of cash and stock and work commitments to keep them in good standing.

King’s Bay Gold Corporation

Russell Crosby M.Sc., P.Geo

Regional geology for the Raleigh Lake Property is characterized by a series of granitic intrusives within a package of Archean greenstone volcanics and mafic to ultramafic intrusives within the Uchi Belt of Ontario. Recent discoveries by Avalon Ventures and Abbadon Resources of rare earths (Lithium, Tantalum, Cesium, Rubidium etc.) in peraluminous pegmatites have added interest to the area. The corporation wishes to capitalize on the high prices that rare earth’s are bringing to the electronics and cell phone industries and the potential for this area to bring a producer in these elements.

The Raleigh Lake claims are subject to annual work commitments and assessment filings with the Ontario Ministry of Northern Development & Mines. For this number of claim units, the annual assessment work commitments are estimated to be approximately $45,600.

Work Update for 2010

- Carried out ground geochemical sampling (soils) in the south end of the property over two trench areas (#2 and #3).
- Sent the soil samples into Accurassay Labs in Thunder Bay, Ontario for Rare Earth Elements (REEs) and multi-element whole-rock geochemical.
- Located and sampled all of the trenches and sent samples into Accurassay Labs for Gold (Au), Nickel-Copper (Ni-Cu), Platinum Group Elements (PGEs), Rare Earth Elements (REEs) and multi-elements.
- Cut roads and lines over portions of the claims to allow better access / location of the trenches, reviewed the core of the previous work done on the property and selected representative samples for REE analysis.

Work for 2011

- Future work will be determined by the results from last year’s sampling of the trenches, outcrops, core analysis and the geochemical soil survey.
- It is contemplated that the new work will consist of prospecting, sampling, mapping and linecutting in various select areas.