KGL Somituri Property Overview

Maps and Photos

Property Description

The KGL Somituri Project consists of 8 Permis de Recherches (Exploration Licences) in the Ngayu greenstone belt about 175 kilometres south of Isiro. The property includes a 123 square kilometre permit that hosts the former Bagbaie-Adumbi, Kitenge, Manzako and Maipinji gold producers.

Location and Area

The property is located in the Oriental Province (Province Orientale) in the northeastern part of the Democratic Republic of Congo. The city of Beni is located about 225 km to the southeast while the provincial capital of Kisangani is approximately 350 km to southwest.

Historic Resources

Gold was exploited from Bagbaie-Adumbi, Kitenge and Manzako from alluvial and primary sources; the source of gold in the Maipinji area was alluvial. A compilation of archived records in the Royal Museum for Central Africa ("RMCA") Tervuren, Belgium, by RMCA (2007) under contract to Kilo, indicates that during the period from 1927 to 1959 approximately 291,290 ounces of gold was produced from the Bagbaie-Adumbi, Kitenge and Maipinji areas as in the table listed below. Gold production for the Manzako area is unknown however it may be included with Kitenge. A historical resource for the Adumbi mine, made subsequent to its closure, is also presented below.

Historic Gold Production 1927-1959

The historical resource estimate stated herein is from property reports by others, is historic in nature, has not been verified by an independent third party, is presented for information purposes only, it is not to be relied upon and it is non-compliant with NI 43-101. Moreover, work required to verify and classify the historical resource estimate in accordance with NI 43-101 has not been carried out by the Company. Furthermore, the Company does not make any representations or warranties on the accuracy of the historical resource estimate. The Company plans to commence an exploration program in Q1-2010 that will focus on obtaining data necessary to verify and classify the historical resource estimate pursuant to the provisions of NI 43-101.

Mineralization

The Adumbi mine is hosted within a hill that rises about 130 metres above the topographic lows. Historical records indicate that the Adumbi mine was exploited from approximately the topographic high to the topographic low. Diamond drilling of 3 holes by the Bureau de Recherches Geologiques et Minieres ("BRGM") in 1980-81 confirmed that the gold bearing zone has depth continuation beneath the area exploited. Historical gold exploitation, by the Belgians prior to 1959, focused on gold bearing quartz veins; the host rocks were not mined and geological maps were not made. Information on gold in the host rocks, obtained by the Company to date, is limited to underground drifts that explored the host rocks in the Kitenge deposit. The historical data indicates that gold occurs over widths of about 50 metres and along strike for at least 1,000 metres. Gold values in excess of 100 g/t were reported to have been exploited from quartz veins from all areas mined.