Mineral Assessment Report 20080013

North Heart River Area Peace River Diamond Play (NTS 84C)

Authors: Hawkins, P.

Executive Summary

The Peace River Diamond Play is 350 km north of Edmonton, Alberta. UUC/SUV JV lands are 70 km southwest of the Diamondex/Shore Gold JV holdings, which hosts the K252 kimberlite pipe and an additional 37 pipes, of which 25 are diamondiferous. The UUC/SUV exploration program has principally been a collection of heavy-mineral sampling for kimberlitic and diamond indicators, supplemented by analysis of airborne geophysics.

One additional stream sediment and 12 till samples were collected for this report. Three overburden drillholes were also completed, which confirmed the overburden thickness on the property was in the range of 30 to 60 metres.

This report defines seven areas of interest with anomalous concentrations of G-9 garnets and kimberlitic olivine-indicator mineral grains. The indicator-mineral suite found is similar in composition to that found on the Diamondex/Shore Gold property, which is not comparable to the classical model for diamondiferous kimberlite with the associated G-I0 garnets. Other mantle-derived indicators from within the diamond-stability field dominate the kimberlitic indicator suite. The craton, which underlies the Peace River area, is obviously not the same as other more conventional plays, but still hosts 25 diamondiferous kimberlitic pipes. The next planned stage of exploration is additional follow-up overburden drilling on kimberlitic indicators found in overburden near circular geophysical targets. Several of the drill targets are accessible from new, all-weather roads.