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1 Nevada Sunrise Gold Corp. Neptune Project Technical Report

TECHNICAL REPORT

on the

NEPTUNE LITHIUM BRINE PROJECT

Clayton Valley, Esmeralda County, Nevada, USA

for

Nevada Sunrise Gold Corp.

and

Resolve Ventures Inc.

By

Robert M. Allender, Jr., CPG, RG, SME

Phoenix, Arizona, USA

TECHNICAL REPORT

R.M. Allender, Jr., CPG, RG, SME

Report No. 16-638-01

Effective Date: February 29, 2016

Signing Date: March 3, 2016


NOTICE

This report was prepared according to the National Instrument 43-101 Technical Report guidance, in

accordance with Form 43-101F1, for Nevada Sunrise Gold Corp. (“ Nevada Sunrise”) and Resolve

Ventures Inc. by Robert M. Allender, Jr. (“Author”). The quality of information, conclusions and

estimates contained herein is consistent with the level of effort described in the agreement between

Nevada Sunrise and Author and based on: i) information available at the time of preparation, ii) data

supplied by Nevada Sunrise and other outside sources, and iii) the assumptions, conditions, and

qualifications set forth in this report.


TECHNICAL REPORT

ON THE

NEPTUNE LITHIUM BRINE PROJECT,

CLAYTON VALLEY, ESMERALDA COUNTY, NEVADA, USA

TABLE OF CONTENTS

CONTENTS PAGE

Title Page 1

Notice 2

Certificate of Qualified Person 5

Table of Contents 3

Item 1: Summary 7

Item 2: Introduction 9

Item 3: Reliance on Other Experts 9

Item 4: Property Description and Location 9

Item 5: Accessibility, Climate, Local Resources, Infrastructure and Physiography 20

Item 6: History 20

Item 7: Geological Setting and Mineralization 21

Item 8: Deposit Types 23

Item 9: Exploration 24

Item 10: Drilling 29

Item 11: Sample Preparation, Analyses and Security 29

Item 12: Data Verification 30

Item 13: Mineral Processing and Metallurgical Testing 30

Item 14: Mineral Resource Estimates 30

Item 23: Adjacent Properties 30

Item 24: Other Relevant Data and Information 32

Item 25: Interpretation and Conclusions 32

Item 26: Recommendations 34

Item 27: References 36


TABLE OF CONTENTS - CONTINUED

FIGURES PAGE

1 General location and physiographic setting, Western US 9

2 Neptune Project Location Map 19

3 Basin and Range Province Map 21

4 Plate Tectonics, Western North America Map 21

5 Clayton Valley Aquifer Hosts 24

6 Neptune Gravity Survey Map 25

7 Neptune CSAMT Map 27

8 Inverted resistivity sections, basin depth model, and geology 28

9 Adjacent Properties in Relation to the Neptune Project 32

10 Proposed drillhole locations 35

TABLES PAGE

1 Neptune Project Claim Information 10

2 Biogeochemical sampling results 29

3 Proposed drillhole location information 35


CERTIFICATE OF QUALIFIED PERSON

Robert M. Allender, Jr. Certified Professional Geologist (07475)

I, Robert M. Allender, CPG, residing at 5730 East Windrose Drive, Scottsdale, Arizona, USA do

hereby certify that:

1. I am a qualified geological consultant contracted by Nevada Sunrise Gold Corp.;

2. I am a graduate of Colorado State University with a Bachelor of Science degree in Geology (1978)

and I am currently a Certified Professional Geologist (CPG #07475) by the American Institute of

Professional Geologists (AIPG);

3. I have worked as a geologist for a total of 37 years since obtaining my B.Sc. degree; I have been

involved in general mineral commodity exploration, property development, and mining operations for

my entire career. I have been involved in exploration for lithium resources for the past 6 years and

have worked on ten lithium brine exploration and property development projects in the United States,

Canada, and Australia during that time. Specifically, I have been the lead geologist on five lithium

brine exploration projects in and adjacent to Clayton Valley, Nevada including the Neptune Project

and its predecessor the Clayton Deep Project for the former operator AmeriLithium Corporation. These

projects have included planning and implementation of geochemical sampling programs, planning and

direction of geophysical surveys, and planning and supervision of exploration drilling programs.

4. I am responsible for all sections of this technical report entitled “Technical Report on the Neptune

Lithium Brine Project, Clayton Valley, Esmeralda County, Nevada, USA for Nevada Sunrise Gold

Corp.” and dated February 29, 2016;

5. I visited the Neptune property on numerous occasions beginning in May, 2010; most recently, I

inspected the property on February 16-18, 2016.

6. I have had prior involvement with the Neptune Project that is the subject of this Technical Report, as

a consultant to the prior operator, AmeriLithium Corporation;

7. As of the date of this certificate, to the best of my knowledge, information and belief, the technical

report contains all scientific and technical information that is required to be disclosed to make the

technical report not misleading;

8. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101)

and certify that by reason of my education and past relevant work experience, I fulfill the requirements

to be a “qualified person” for the purposes of NI 43-101. This report is based on my personal review of

information provided by the Issuer and on discussions with the Issuer’s representatives;

9. I am independent of the issuer applying the test in Section 1.5 of NI 43-101; I am independent of the

Vendor of the Neptune claims and have no connection to or interest in the Neptune property.

10. I have read NI 43-101, Form 43-101F1, and Notice 43-704. This report has been prepared in

compliance therewith;


Effective Date: February 29, 2016

Signing Date: April 6, 2016

_______________________________

Robert M. Allender, Jr.


Item 1. Summary

The Neptune Project is an exploration-stage project located in Clayton Valley, Esmeralda County, Nevada near

the small town of Silver Peak. The Project is under option by Nevada Sunrise of Vancouver, B.C., Canada, and

is located in the southwestern corner of Clayton Valley. Nevada Sunrise can earn a 100% interest in the Neptune

property by making a series of share payments to the vendors of the claim block, Nevada Alaska Mining Co.,

Inc., who have the right to retain a 3% gross overriding royalty (“GOR”) on any future production, which can be

reduced to 2% by a one-time payment of US$1.0 million in September 2018.

In February 2016, Nevada Sunrise signed an agreement with Resolve Ventures Inc. (“Resolve”) of Vancouver,

B.C., Canada for an option earn-in on the Neptune Project. In order to earn a 25% interest in the Neptune

Project, Resolve agreed to pay a total of CDN$100,000 cash to Nevada Sunrise upon signing an interim

agreement and their receipt of this technical report. Upon the signing of a definitive agreement, Resolve will

issue 200,000 of its common shares to Nevada Sunrise, and spend CDN$300,000 on exploration at Neptune in

the first year of the option agreement. Resolve can increase its participating interest in Neptune to 50% by

paying Nevada Sunrise an additional CDN$100,000 cash on or before the 1st anniversary of the agreement, or by

issuing 300,000 shares at Resolve’s option, and by spending an additional CDN$700,000 on exploration by the

2nd

anniversary of the agreement. Nevada Sunrise will act as operator of exploration at Neptune.

The Neptune property is comprised of 316 unpatented 20-acre (8.1 hectares) placer claims totaling 6,640 acres

(2,557 hectares) that were located to encompass a gravity or density low, called the Southwest Gravity Low,

previously identified by a regional United States Geological Survey gravity investigation.

This claim block is evidently underlain by a sequence of sedimentary formations and fault structures similar to

those found in the zone of production at the Albermarle Corp. lithium processing facilities which are located

approximately 10 miles (16 kilometers) north of the Neptune project near the town of Silver Peak, Nevada.

Geophysical investigations conducted by a previous operator were designed to examine the Southwest Gravity

Low and to determine its depth and configuration.

The Neptune Project is initially a groundwater exploration program designed to discover a reservoir of

continental brine within the outlined gravity low that could contain economically viable concentrations of

lithium, magnesium, sodium, potassium, and other alkali metals. If warranted by brine presence and lithium

concentration levels, groundwater investigations will be necessary to determine the hydrogeologic

characteristics of the identified aquifer units.

The geologic setting within Clayton Valley with its thick sequence of clastic sediments and evaporate deposits is

prospective for metal-enriched brines. The geologic formations that compose the surrounding mountain ranges,

specifically certain Tertiary volcanic formations, contain unusually high concentrations of lithium and are

considered one likely source of lithium in brines and sedimentary layers in Clayton Valley.

Clayton Valley is currently the only North American source of lithium. Production by Albemarle Corp. is

facilitated through an extraction system that pumps groundwater enriched in lithium and magnesium to surface

solar evaporation ponds on the property. Evapotranspiration of fluid from the ponds increases the lithium

concentration prior to transfer of the concentrated brine to a processing plant for final product development.

The conceptual deposit model for the Neptune Project is adapted from the known deposits being exploited by

Albemarle Corp. Six different water-bearing formations or aquifer types have been identified (Zampirro 2003).

These are specific sedimentary units within the valley-fill sedimentary sequence that are either saturated in

lithium-enriched brine or contain salt or clay minerals with anomalously high concentrations of lithium.


A former operator, AmeriLithium Corp. of Henderson, Nevada, performed detailed gravity and electromagnetic

investigations in 2011, which have identified a layered sequence of saturated sedimentary formations filling a

deep basin beneath the Neptune property. The geophysics suggests that some of these units may contain

elevated levels of salinity which would further suggest the possible presence of elevated concentrations of

lithium and other alkali metals. The identified elongate basin beneath the property is faceted by faults with

significant displacement that apparently resulted in the development of the basin. A large Basin and Range

related normal fault has displaced Paleozoic sediments and Tertiary volcanics to a depth of greater than 5,000

feet within the basin. These older rocks are present on the surface southwest of the major fault structure.

The geophysical investigations have identified geologic formations and structures that are consistent with the

lithium-bearing brine deposit models that are elsewhere present in Clayton Valley. A deep basin containing a

thick sequence of saturated sedimentary formations is apparently present beneath the Neptune property. The

geophysical signature of these formations and structures suggests that they are similar in nature to those

currently being exploited for lithium brines at the Albemarle Corp. facilities to the north of the Neptune Project.

The results of the preliminary exploration geophysics warrant further investigation. Additional geophysical

investigations in the form of seismic surveys could provide additional data for a better understanding of the

sediments, structures, and groundwater in the identified basin. However, the potential benefits of this additional

non-intrusive investigation do not, in the author’s opinion, justify the additional expense. Seismic survey

programs are relative expensive and, in this case, would not add significantly to the identification of potentially

economic lithium deposits.

Drilling and sampling of the sediments and groundwater in the basin are the next logical steps in the process of

exploration for the Neptune project. Physical examination of the drill cuttings and laboratory analysis of water

and sediments is the most cost effective way to determine the presence or absence of economic lithium deposits

beneath the property. An initial drilling program of ten holes has been designed and permitted through United

States Bureau of Land Management (“USBLM”) and the State of Nevada. The first three holes are designed to

test specific structural and stratigraphic targets identified by the geophysical surveys. Given the success of these

preliminary exploratory drillholes in finding brine aquifers and anomalous lithium contents, the additional seven

holes would be place to expand on the information about hydrogeology and lithium mineralization that might be

discovered.

Nevada Sunrise, through its wholly-owned subsidiary company, Intor Resources Corporation, submitted a

Notice of Intent (“NOI”) to conduct an exploration drilling program to the USBLM on November 23 , 2016. The

preliminary three-hole program is estimated to cost US$350,000. The fully permitted ten-hole program is

estimated to cost US$1,600,000. These estimated costs are based upon preliminary quotations received from

drilling contractors during the process of developing the NOI. The Company received approval of its plan from

USBLM on December 31, 2015.


Item 2. Introduction

This technical report has been commissioned by and prepared for Nevada Sunrise Gold Corp. (“Nevada

Sunrise” or the “Company”) is a British Columbia corporation with primary offices at Suite 1100 – 1111

Melville Street, Vancouver, British Columbia, Canada V6E 3V6. The Company is an exploration-stage mineral

explorer who owns an portfolio of prospective lithium-brine and gold exploration properties in Nevada. Nevada

Sunrise is traded publically on the TSX Venture Exchange (“TSXV”) market under the symbol NEV. The

Company is in the process of exploring their current portfolio of lithium properties with the intent of identifying

and developing lithium resources. Currently, the Company has no lithium resources to report.

This report has been prepared for the purpose of summarizing all of the available information on the property

Nevada Sunrise has designated as the Neptune Lithium Brine Prospect (“Neptune”). Additionally, this report is

intended to provide a baseline of scientific, technical and exploration information on which future exploration

and possible development may depend. Neptune has the potential to contain economic lithium resources. The

exploration plan for Neptune is designed to identify the presence, quantity, and quality of any lithium-bearing

groundwater present in the property subsurface.

Detailed technical information specific to the Neptune property is generally scarce. Publically available

information in the form of published reports, maps, company press releases, competitor technical reports and

technical data have been accessed and reviewed in the preparation

of this report. Relevant technical reports have been acquired from

the United States Geological Survey and the Nevada Bureau of

Mines and Geology (“NBMG”). Other information has been

collected from reports and public disclosures of other companies

involved in lithium exploration, development, and production in

and around Clayton Valley. Detailed reports on the exploration

geophysical investigations performed by the company were used

in the preparation of this report. Reports and publications cited in

this report are listed under Item 27 References at the end of this

report.

The Author has personally inspected the property on numerous

occasions since April, 2010. Most recently the Author inspected

the property on February 16-18, 2016. The Author observed the

topography, physiography, vegetation, infrastructure, climate,

geology, placer claim marker placements, and geophysical survey

operations at Neptune property and the surrounding Clayton

Valley district during these visits. The author has been

responsible for the planning and implementation of exploration

activities for the Neptune property and other properties in Clayton Valley as well as projects in the adjacent

closed basins.

Item 3. Reliance on Other Experts

No other experts were relied upon to produce this report.

Item 4. Property Description and Location

Figure 1. General location and physiographic

setting, Western US


The Neptune lithium brine project includes 316 20-acre placer claims totaling 6,320 acres. The claim block

covers the entire so-called Southwest Gravity Low in Clayton Valley (Healey, et al, 1980), near Silver Peak in

Esmeralda County, Nevada. Individual claim identifications and locations are shown in Table 1.

TABLE 1. NEPTUNE CLAIM INFORMATION

Claim Name &

Number BLM Serial No. MERIDIAN TOWNSHIP RANGE SECTION SUBDIVISION

NEPTUNE 2 NMC1113552 21 3S 38E 27 NE

NEPTUNE 3 NMC1113553 21 3S 38E 27 NE

NEPTUNE 4 NMC1113554 21 3S 38E 27 NE

NEPTUNE 5 NMC1113555 21 3S 38E 26 NW

NEPTUNE 6 NMC1113556 21 3S 38E 26 NW

NEPTUNE 7 NMC1113557 21 3S 38E 26 NW

NEPTUNE 8 NMC1113558 21 3S 38E 26 NW

NEPTUNE 9 NMC1113559 21 3S 38E 26 NE

NEPTUNE 10 NMC1113560 21 3S 38E 26 NE

NEPTUNE 11 NMC1113561 21 3S 38E 26 NE

NEPTUNE 12 NMC1113562 21 3S 38E 26 NE

NEPTUNE 13 NMC1113563 21 3S 38E 25 NW

NEPTUNE 14 NMC1113564 21 3S 38E 25 NW

NEPTUNE 15 NMC1113565 21 3S 38E 25 NW

NEPTUNE 16 NMC1113566 21 3S 38E 25 NW

NEPTUNE 17 NMC1113567 21 3S 38E 25 NE

NEPTUNE 18 NMC1113568 21 3S 38E 25 NE

NEPTUNE 19 NMC1113569 21 3S 38E 27 NE

NEPTUNE 20 NMC1113570 21 3S 38E 27 NE

NEPTUNE 21 NMC1113571 21 3S 38E 27 NE

NEPTUNE 22 NMC1113572 21 3S 38E 27 NE

NEPTUNE 23 NMC1113573 21 3S 38E 26 NW

NEPTUNE 24 NMC1113574 21 3S 38E 26 NW

NEPTUNE 25 NMC1113575 21 3S 38E 26 NW

NEPTUNE 26 NMC1113576 21 3S 38E 26 NW

NEPTUNE 27 NMC1113577 21 3S 38E 26 NE

NEPTUNE 28 NMC1113578 21 3S 38E 26 NE

NEPTUNE 29 NMC1113579 21 3S 38E 26 NE

NEPTUNE 30 NMC1113580 21 3S 38E 26 NE

NEPTUNE 31 NMC1113581 21 3S 38E 25 NW

NEPTUNE 32 NMC1113582 21 3S 38E 25 NW

NEPTUNE 33 NMC1113583 21 3S 38E 25 NW

NEPTUNE 34 NMC1113584 21 3S 38E 25 NW

NEPTUNE 35 NMC1113585 21 3S 38E 25 NE

NEPTUNE 36 NMC1113586 21 3S 38E 25 NE

NEPTUNE 37 NMC1113587 21 3S 38E 27 SW

NEPTUNE 38 NMC1113588 21 3S 38E 27 SE


NEPTUNE 39 NMC1113589 21 3S 38E 27 SE

NEPTUNE 40 NMC1113590 21 3S 38E 27 SE

NEPTUNE 41 NMC1113591 21 3S 38E 26 SW

NEPTUNE 42 NMC1113592 21 3S 38E 26 SW

NEPTUNE 43 NMC1113593 21 3S 38E 26 SW

NEPTUNE 44 NMC1113594 21 3S 38E 26 SW

NEPTUNE 45 NMC1113595 21 3S 38E 26 SE

NEPTUNE 46 NMC1113596 21 3S 38E 26 SE

NEPTUNE 47 NMC1113597 21 3S 38E 26 SE

NEPTUNE 48 NMC1113598 21 3S 38E 26 SE

NEPTUNE 49 NMC1113599 21 3S 38E 25 SW

NEPTUNE 50 NMC1113600 21 3S 38E 25 SW

NEPTUNE 51 NMC1113601 21 3S 38E 25 SW

NEPTUNE 52 NMC1113602 21 3S 38E 25 SW

NEPTUNE 53 NMC1113603 21 3S 38E 25 SE

NEPTUNE 54 NMC1113604 21 3S 38E 25 SE

NEPTUNE 55 NMC1113605 21 3S 38E 25 SE

NEPTUNE 56 NMC1113606 21 3S 38E 25 SE

NEPTUNE 57 NMC1113607 21 3S 39E 30 SW

NEPTUNE 58 NMC1113608 21 3S 39E 30 SW

NEPTUNE 59 NMC1113609 21 3S 39E 30 SW

NEPTUNE 60 NMC1113610 21 3S 39E 30 SW

NEPTUNE 61 NMC1113611 21 3S 39E 30 SE

NEPTUNE 62 NMC1113612 21 3S 39E 30 SE

NEPTUNE 63 NMC1113613 21 3S 38E 27 SE

NEPTUNE 64 NMC1113614 21 3S 38E 27 SE

NEPTUNE 65 NMC1113615 21 3S 38E 27 SE

NEPTUNE 66 NMC1113616 21 3S 38E 27 SE

NEPTUNE 67 NMC1113617 21 3S 38E 26 SW

NEPTUNE 68 NMC1113618 21 3S 38E 26 SW

NEPTUNE 69 NMC1113619 21 3S 38E 26 SW

NEPTUNE 70 NMC1113620 21 3S 38E 26 SW

NEPTUNE 71 NMC1113621 21 3S 38E 26 SE

NEPTUNE 72 NMC1113622 21 3S 38E 26 SE

NEPTUNE 73 NMC1113623 21 3S 38E 26 SE

NEPTUNE 74 NMC1113624 21 3S 38E 26 SE

NEPTUNE 75 NMC1113625 21 3S 38E 25 SW

NEPTUNE 76 NMC1113626 21 3S 38E 25 SW

NEPTUNE 77 NMC1113627 21 3S 38E 25 SW

NEPTUNE 78 NMC1113628 21 3S 38E 25 SW

NEPTUNE 79 NMC1113629 21 3S 38E 25 SE

NEPTUNE 80 NMC1113630 21 3S 38E 25 SE

NEPTUNE 81 NMC1113631 21 3S 38E 25 SE

NEPTUNE 82 NMC1113632 21 3S 38E 25 SE


NEPTUNE 83 NMC1113633 21 3S 39E 30 SW

NEPTUNE 84 NMC1113634 21 3S 39E 30 SW

NEPTUNE 85 NMC1113635 21 3S 39E 30 SW

NEPTUNE 86 NMC1113636 21 3S 39E 30 SW

NEPTUNE 87 NMC1113637 21 3S 39E 30 SE

NEPTUNE 88 NMC1113638 21 3S 39E 30 SE

NEPTUNE 89 NMC1113639 21 3S 38E 35 NW

NEPTUNE 90 NMC1113640 21 3S 38E 35 NW

NEPTUNE 91 NMC1113641 21 3S 38E 35 NW

NEPTUNE 92 NMC1113642 21 3S 38E 35 NW

NEPTUNE 93 NMC1113643 21 3S 38E 35 NE

NEPTUNE 94 NMC1113644 21 3S 38E 35 NE

NEPTUNE 95 NMC1113645 21 3S 38E 35 NE

NEPTUNE 96 NMC1113646 21 3S 38E 35 NE

NEPTUNE 97 NMC1113647 21 3S 38E 36 NW

NEPTUNE 98 NMC1113648 21 3S 38E 36 NW

NEPTUNE 99 NMC1113649 21 3S 38E 36 NW

NEPTUNE 100 NMC1113650 21 3S 38E 36 NW

NEPTUNE 101 NMC1113651 21 3S 38E 36 NE

NEPTUNE 102 NMC1113652 21 3S 38E 36 NE

NEPTUNE 103 NMC1113653 21 3S 38E 36 NE

NEPTUNE 104 NMC1113654 21 3S 38E 36 NE

NEPTUNE 105 NMC1113655 21 3S 39E 31 NW

NEPTUNE 106 NMC1113656 21 3S 39E 31 NW

NEPTUNE 107 NMC1113657 21 3S 39E 31 NW

NEPTUNE 108 NMC1113658 21 3S 39E 31 NW

NEPTUNE 109 NMC1113659 21 3S 39E 31 NE

NEPTUNE 110 NMC1113660 21 3S 39E 31 NE

NEPTUNE 111 NMC1113661 21 3S 38E 35 NW

NEPTUNE 112 NMC1113662 21 3S 38E 35 NW

NEPTUNE 113 NMC1113663 21 3S 38E 35 NW

NEPTUNE 114 NMC1113664 21 3S 38E 35 NW

NEPTUNE 115 NMC1113665 21 3S 38E 35 NE

NEPTUNE 116 NMC1113666 21 3S 38E 35 NE

NEPTUNE 117 NMC1113667 21 3S 38E 35 NE

NEPTUNE 118 NMC1113668 21 3S 38E 35 NE

NEPTUNE 119 NMC1113669 21 3S 38E 36 NW

NEPTUNE 120 NMC1113670 21 3S 38E 36 NW

NEPTUNE 121 NMC1113671 21 3S 38E 36 NW

NEPTUNE 122 NMC1113672 21 3S 38E 36 NW

NEPTUNE 123 NMC1113673 21 3S 38E 36 NE

NEPTUNE 124 NMC1113674 21 3S 38E 36 NE

NEPTUNE 125 NMC1113675 21 3S 38E 36 NE

NEPTUNE 126 NMC1113676 21 3S 38E 36 NE


NEPTUNE 127 NMC1113677 21 3S 39E 31 NW

NEPTUNE 128 NMC1113678 21 3S 39E 31 NW

NEPTUNE 129 NMC1113679 21 3S 39E 31 NW

NEPTUNE 130 NMC1113680 21 3S 39E 31 NW

NEPTUNE 131 NMC1113681 21 3S 39E 31 NE

NEPTUNE 132 NMC1113682 21 3S 39E 31 NE

NEPTUNE 133 NMC1113683 21 3S 38E 35 SW

NEPTUNE 134 NMC1113684 21 3S 38E 35 SW

NEPTUNE 135 NMC1113685 21 3S 38E 35 SE

NEPTUNE 136 NMC1113686 21 3S 38E 35 SE

NEPTUNE 137 NMC1113687 21 3S 38E 35 SE

NEPTUNE 138 NMC1113688 21 3S 38E 35 SE

NEPTUNE 139 NMC1113689 21 3S 38E 36 SW

NEPTUNE 140 NMC1113690 21 3S 38E 36 SW

NEPTUNE 141 NMC1113691 21 3S 38E 36 SW

NEPTUNE 142 NMC1113692 21 3S 38E 36 SW

NEPTUNE 143 NMC1113693 21 3S 38E 36 SE

NEPTUNE 144 NMC1113694 21 3S 38E 36 SE

NEPTUNE 145 NMC1113695 21 3S 38E 36 SE

NEPTUNE 146 NMC1113696 21 3S 38E 36 SE

NEPTUNE 147 NMC1113697 21 3S 39E 31 SW

NEPTUNE 148 NMC1113698 21 3S 39E 31 SW

NEPTUNE 149 NMC1113699 21 3S 39E 31 SW

NEPTUNE 150 NMC1113700 21 3S 39E 31 SW

NEPTUNE 151 NMC1113701 21 3S 39E 31 SW

NEPTUNE 152 NMC1113702 21 3S 39E 31 SW

NEPTUNE 153 NMC1113703 21 3S 38E 35 SW

NEPTUNE 154 NMC1113704 21 3S 38E 35 SW

NEPTUNE 155 NMC1113705 21 3S 38E 35 SE

NEPTUNE 156 NMC1113706 21 3S 38E 35 SE

NEPTUNE 157 NMC1113707 21 3S 38E 35 SE

NEPTUNE 158 NMC1113708 21 3S 38E 35 SE

NEPTUNE 159 NMC1113709 21 3S 38E 36 SW

NEPTUNE 160 NMC1113710 21 3S 38E 36 SW

NEPTUNE 161 NMC1113711 21 3S 38E 36 SW

NEPTUNE 162 NMC1113712 21 3S 38E 36 SW

NEPTUNE 163 NMC1113713 21 3S 38E 36 SW

NEPTUNE 164 NMC1113714 21 3S 38E 36 SW

NEPTUNE 165 NMC1113715 21 3S 38E 36 SW

NEPTUNE 166 NMC1113716 21 3S 38E 36 SW

NEPTUNE 167 NMC1113717 21 3S 39E 31 SW

NEPTUNE 168 NMC1113718 21 3S 39E 31 SW

NEPTUNE 169 NMC1113719 21 3S 39E 31 SW

NEPTUNE 170 NMC1113720 21 3S 39E 31 SW


NEPTUNE 171 NMC1113721 21 3S 39E 31 SE

NEPTUNE 172 NMC1113722 21 3S 39E 31 SE

NEPTUNE 173 NMC1113723 21 4S 38E 2 NE

NEPTUNE 174 NMC1113724 21 4S 38E 2 NE

NEPTUNE 175 NMC1113725 21 4S 38E 1 NW

NEPTUNE 176 NMC1113726 21 4S 38E 1 NW

NEPTUNE 177 NMC1113727 21 4S 38E 1 NW

NEPTUNE 178 NMC1113728 21 4S 38E 1 NW

NEPTUNE 179 NMC1113729 21 4S 38E 1 NE

NEPTUNE 180 NMC1113730 21 4S 38E 1 NE

NEPTUNE 181 NMC1113731 21 4S 38E 1 NE

NEPTUNE 182 NMC1113732 21 4S 38E 1 NE

NEPTUNE 183 NMC1113733 21 4S 39E 6 NW

NEPTUNE 184 NMC1113734 21 4S 39E 6 NW

NEPTUNE 185 NMC1113735 21 4S 39E 6 NW

NEPTUNE 186 NMC1113736 21 4S 39E 6 NW

NEPTUNE 187 NMC1113737 21 4S 39E 6 NE

NEPTUNE 188 NMC1113738 21 4S 39E 6 NE

NEPTUNE 189 NMC1113739 21 4S 38E 2 NE

NEPTUNE 190 NMC1113740 21 4S 38E 2 NE

NEPTUNE 191 NMC1113741 21 4S 38E 1 NW

NEPTUNE 192 NMC1113742 21 4S 38E 1 NW

NEPTUNE 193 NMC1113743 21 4S 38E 1 NW

NEPTUNE 194 NMC1113744 21 4S 38E 1 NW

NEPTUNE 195 NMC1113745 21 4S 38E 1 NE

NEPTUNE 196 NMC1113746 21 4S 38E 1 NE

NEPTUNE 197 NMC1113747 21 4S 38E 1 NE

NEPTUNE 198 NMC1113748 21 4S 38E 1 NE

NEPTUNE 199 NMC1113749 21 4S 39E 6 NW

NEPTUNE 200 NMC1113750 21 4S 39E 6 NW

NEPTUNE 201 NMC1113751 21 4S 39E 6 NW

NEPTUNE 202 NMC1113752 21 4S 39E 6 NW

NEPTUNE 203 NMC1113753 21 4S 39E 6 NE

NEPTUNE 204 NMC1113754 21 4S 39E 6 NE

NEPTUNE 205 NMC1113755 21 4S 38E 1 SW

NEPTUNE 206 NMC1113756 21 4S 38E 1 SW

NEPTUNE 207 NMC1113757 21 4S 38E 1 SE

NEPTUNE 208 NMC1113758 21 4S 38E 1 SE

NEPTUNE 209 NMC1113759 21 4S 38E 1 SE

NEPTUNE 210 NMC1113760 21 4S 38E 1 SE

NEPTUNE 211 NMC1113761 21 4S 39E 6 SW

NEPTUNE 212 NMC1113762 21 4S 39E 6 SW

NEPTUNE 213 NMC1113763 21 4S 39E 6 SW

NEPTUNE 214 NMC1113764 21 4S 39E 6 SW


NEPTUNE 215 NMC1113765 21 4S 38E 1 SW

NEPTUNE 216 NMC1113766 21 4S 38E 1 SW

NEPTUNE 217 NMC1113767 21 4S 38E 1 SE

NEPTUNE 218 NMC1113768 21 4S 38E 1 SE

NEPTUNE 219 NMC1113769 21 4S 38E 1 SE

NEPTUNE 220 NMC1113770 21 4S 38E 1 SE

NEPTUNE 221 NMC1113771 21 4S 39E 6 SW

NEPTUNE 222 NMC1113772 21 4S 39E 6 SW

NEPTUNE 223 NMC1113773 21 4S 39E 6 SW

NEPTUNE 224 NMC1113774 21 4S 39E 6 SW

NEPTUNE 225 NMC1113775 21 3S 38E 23 SW

NEPTUNE 226 NMC1113776 21 3S 38E 23 SW

NEPTUNE 227 NMC1113777 21 3S 38E 23 SW

NEPTUNE 228 NMC1113778 21 3S 38E 23 SW

NEPTUNE 229 NMC1113779 21 3S 38E 23 SE

NEPTUNE 230 NMC1113780 21 3S 38E 23 SE

NEPTUNE 231 NMC1113781 21 3S 38E 23 SE

NEPTUNE 232 NMC1113782 21 3S 38E 23 SE

NEPTUNE 233 NMC1113783 21 3S 38E 24 SW

NEPTUNE 234 NMC1113784 21 3S 38E 24 SW

NEPTUNE 235 NMC1113785 21 3S 38E 24 SW

NEPTUNE 236 NMC1113786 21 3S 38E 24 SW

NEPTUNE 237 NMC1113787 21 3S 38E 24 SE

NEPTUNE 238 NMC1113788 21 3S 38E 24 SE

NEPTUNE 239 NMC1113789 21 3S 38E 24 SE

NEPTUNE 240 NMC1113790 21 3S 38E 24 SE

NEPTUNE 241 NMC1113791 21 3S 39E 19 SW

NEPTUNE 242 NMC1113792 21 3S 39E 19 SW

NEPTUNE 243 NMC1113793 21 3S 39E 19 SW

NEPTUNE 244 NMC1113794 21 3S 39E 19 SW

NEPTUNE 245 NMC1113795 21 3S 39E 19 SE

NEPTUNE 246 NMC1113796 21 3S 39E 19 SE

NEPTUNE 247 NMC1113797 21 3S 39E 19 SE

NEPTUNE 248 NMC1113798 21 3S 39E 19 SE

NEPTUNE 249 NMC1113799 21 3S 38E 23 SW

NEPTUNE 250 NMC1113800 21 3S 38E 23 SW

NEPTUNE 251 NMC1113801 21 3S 38E 23 SW

NEPTUNE 252 NMC1113802 21 3S 38E 23 SW

NEPTUNE 253 NMC1113803 21 3S 38E 23 SE

NEPTUNE 254 NMC1113804 21 3S 38E 23 SE

NEPTUNE 255 NMC1113805 21 3S 38E 23 SE

NEPTUNE 256 NMC1113806 21 3S 38E 23 SE

NEPTUNE 257 NMC1113807 21 3S 38E 24 SW

NEPTUNE 258 NMC1113808 21 3S 38E 24 SW


NEPTUNE 259 NMC1113809 21 3S 38E 24 SW

NEPTUNE 260 NMC1113810 21 3S 38E 24 SW

NEPTUNE 261 NMC1113811 21 3S 38E 24 SE

NEPTUNE 262 NMC1113812 21 3S 38E 24 SE

NEPTUNE 263 NMC1113813 21 3S 38E 24 SE

NEPTUNE 264 NMC1113814 21 3S 38E 24 SE

NEPTUNE 265 NMC1113815 21 3S 39E 19 SW

NEPTUNE 266 NMC1113816 21 3S 39E 19 SW

NEPTUNE 267 NMC1113817 21 3S 39E 19 SW

NEPTUNE 268 NMC1113818 21 3S 39E 19 SW

NEPTUNE 269 NMC1113819 21 3S 39E 19 SE

NEPTUNE 270 NMC1113820 21 3S 39E 19 SE

NEPTUNE 271 NMC1113821 21 3S 39E 19 SE

NEPTUNE 272 NMC1113822 21 3S 39E 19 SE

NEPTUNE 273 NMC1113823 21 3S 38E 25 NE

NEPTUNE 274 NMC1113824 21 3S 38E 25 NE

NEPTUNE 275 NMC1113825 21 3S 39E 30 NW

NEPTUNE 276 NMC1113826 21 3S 39E 30 NW

NEPTUNE 277 NMC1113827 21 3S 39E 30 NW

NEPTUNE 278 NMC1113828 21 3S 39E 30 NW

NEPTUNE 279 NMC1113829 21 3S 39E 30 NE

NEPTUNE 280 NMC1113830 21 3S 39E 30 NE

NEPTUNE 281 NMC1113831 21 3S 39E 30 NE

NEPTUNE 282 NMC1113832 21 3S 39E 30 NE

NEPTUNE 283 NMC1113833 21 3S 38E 25 NE

NEPTUNE 284 NMC1113834 21 3S 38E 25 NE

NEPTUNE 285 NMC1113835 21 3S 39E 30 NW

NEPTUNE 286 NMC1113836 21 3S 39E 30 NW

NEPTUNE 287 NMC1113837 21 3S 39E 30 NW

NEPTUNE 288 NMC1113838 21 3S 39E 30 NW

NEPTUNE 289 NMC1113839 21 3S 39E 30 NE

NEPTUNE 290 NMC1113840 21 3S 39E 30 NE

NEPTUNE 291 NMC1113841 21 3S 39E 30 NE

NEPTUNE 292 NMC1113842 21 3S 39E 30 NE

NEPTUNE 293 NMC1113843 21 3S 39E 30 SE

NEPTUNE 294 NMC1113844 21 3S 39E 30 SE

NEPTUNE 295 NMC1113845 21 3S 39E 30 SE

NEPTUNE 296 NMC1113846 21 3S 39E 30 SE

NEPTUNE 297 NMC1113847 21 3S 39E 31 NE

NEPTUNE 298 NMC1113848 21 3S 39E 31 NE

NEPTUNE 299 NMC1113849 21 3S 39E 31 NE

NEPTUNE 300 NMC1113850 21 3S 39E 31 NE

NEPTUNE 301 NMC1113851 21 3S 39E 31 SE

NEPTUNE 302 NMC1113852 21 3S 39E 31 SE


NEPTUNE 303 NMC1113853 21 3S 39E 31 SE

NEPTUNE 304 NMC1113854 21 3S 39E 31 SE

NEPTUNE 305 NMC1113855 21 4S 39E 6 NE

NEPTUNE 306 NMC1113856 21 4S 39E 6 NE

NEPTUNE 307 NMC1113857 21 4S 39E 6 NE

NEPTUNE 308 NMC1113858 21 4S 39E 6 NE

NEPTUNE 309 NMC1113859 21 4S 39E 6 SE

NEPTUNE 310 NMC1113860 21 4S 39E 6 SE

NEPTUNE 311 NMC1113861 21 4S 39E 6 SE

NEPTUNE 312 NMC1113862 21 4S 39E 6 SE

NEPTUNE 313 NMC1113863 21 4S 39E 6 SE

NEPTUNE 314 NMC1113864 21 4S 39E 6 SE

NEPTUNE 315 NMC1113865 21 4S 39E 6 SE

NEPTUNE 316 NMC1113866 21 4S 39E 6 SE

The claims that comprise the Neptune property are unpatented placer mining claims acquired originally through

staking and registration with both the USBLM and Esmeralda County. Nevada Alaska Mining Co., Inc., of

Fernley, Nevada (the “Vendor”) and several related individuals were the original holders of certain 80-acre

association placer claims which were acquired by Nevada Sunrise on September 18, 2015. The original claim

block included 39 association placer mining claims (Claims CD #6-15, CD#30, CD#34-47, CD#52-53, CD#76-

77 and CD#81-81). Nevada Sunrise re-staked the original 80-acre association placer claims and increased the

size of the Neptune property in October 2015 by staking 316, 20-acre placer claims.

Nevada Sunrise paid the Vendor 200,000 of its common shares upon signing of the definitive option agreement

(the “Agreement”), and after further payments of 300,000 common shares on the 1st anniversary, and 500,000

common shares on the 2nd

anniversary of the signing of the Agreement, the Company will earn a 100% interest

in the Neptune property. Nevada Sunrise may accelerate the schedule of shares payments to the Vendor, at its

discretion. Upon exercise of the Company’s option to acquire 100% of the Neptune property, the Vendor would

retain a 3% gross overriding royalty (“GOR”) on any future production from the property, which can be reduced

to 2% by a one-time payment of US$1.0 million in September 2018 on or before the 3rd

anniversary of the

signing of the Agreement. There are no other obligations that must be met to retain the property other than the

annual claim maintenance fees that must be paid to the USBLM in September of each year. These maintenance

fees have been paid in 2015 and the claims are current with USBLM until September, 2016.

In March 2016, Nevada Sunrise announced an agreement with Resolve Ventures Inc. (“Resolve”) of Vancouver,

BC, Canada, for Resolve to earn up to a 50% working interest in the Neptune property.

For an option to earn an initial 25% in Neptune, Resolve has agreed to make cash and share payments to Nevada

Sunrise, and fund exploration expenditures on the following schedule (all funds in Canadian dollars except

where otherwise specified):

1) $50,000 cash upon execution of a letter agreement between Nevada Sunrise and Resolve;

2) $50,000 cash upon delivery by Nevada Sunrise of a co-addressed National Instrument 43-101 compliant

Technical Report (the “Report”);

3) 200,000 shares of Resolve upon the execution of TSXV acceptance of a definitive agreement between the

parties;


4) $300,000 payable in advance for exploration expenditures according to the recommendations in the Report.

After completing the cash payments, share issuance, and exploration expenditures listed above, Resolve would

earn a 25% working interest in Neptune. Nevada Sunrise will act as operator and will charge a 10% operatorship

fee on exploration expenditures. All claim payments due by September 1, 2016 would be split 75-25 between

the two parties.

Should Resolve elect not to contribute to any subsequent exploration program they must provide notice to NEV

60 days before the 1st anniversary of TSXV acceptance of the definitive agreement, and a standard dilution

formula will apply to their 25% interest should additional expenditures be incurred.

Upon an election to proceed to Year 2 by Resolve made within 60 days prior to the 1st anniversary of TSXV

acceptance of the definitive agreement, Resolve can earn an additional 25% interest in Neptune by making

additional cash or share payments to Nevada Sunrise, and funding exploration expenditures as follows:

1) A payment to NEV of either $100,000 cash or 300,000 shares of Resolve, at Resolve’s option;

2) $700,000 in exploration expenditures.

After completion of the exploration expenditures for Year 1 and Year 2 totaling $1,000,000 and the payment of

cash and shares as listed above, Resolve would earn a 50% working interest in Neptune, and a joint venture

company would be incorporated and operated by Nevada Sunrise.

The joint venture company would be responsible for administrating all exploration activities, including drilling,

geophysical surveys, geological consulting, and claims fees according to usual business practice for a joint

venture, and for obtaining water rights for any development of a mineral resource present at Neptune at a cost to

be determined by an independent appraisal. In accordance with the agreement between Nevada Sunrise and the

underlying vendor, the optional Gross Overriding Royalty (“GOR”) “buydown” in September 2018 for US$1.0

million cash would be paid by both parties according to their respective participating interests, if a decision is

made by the joint venture to reduce the GOR from 3% to 2%.

The Author is not aware of any environmental liabilities or other significant risk factors that would affect the

Company’s ability to access the property or perform exploration and development activities on the property,

other than exploration guidelines recommended by the USBLM during raptor and migratory bird nesting season

from March 1 to July 31 of a calendar year. Exploration permitting is relatively simple in Nevada and involves

submittal of a Notice of Intent “(NOI”) to conduct drilling operations and an appropriate reclamation bond in an

amount determined by an established formula related to the surface area to be disturbed by the proposed drilling

program. Nevada Sunrise submitted an NOI for a drilling program at Neptune on November 23, 2015 and

approval was received from USBLM on December 31, 2015.


FIGURE 2


Item 5. Accessibility, Climate, Local resources, Infrastructure, and Physiography

The Neptune property is located approximately 15 kilometers southwest of the small settlement of Silver Peak,

Nevada which is home to the Albemarle Corp. Silver Peak Lithium Operations. The closest support center is

Tonopah, approximately 55 km northeast of Silver Peak as the crow flies. Travel to Silver Peak by road from

the north from Tonopah covers approximately 95 kilometers of good paved road. From Goldfields (20

kilometers south of Tonopah) the property is accessible via well-maintain secondary gravel road for about 30

kilometers. The Neptune property is accessible from Silver Peak via State Route 265 (the Oasis Poleline Road),

a well-maintained gravel road that follows a power transmission line from Silver Peak to California. (Figure 2).

Topography over the property is generally flat with a low-angle slope from west to east. Elevations range from

4,800 feet above sea level (asl) to 4,400 feet asl. Topographic relief is very low across the property. Vegetation

is sparse and consists of hardy, low growing grasses and shrubs that are able to survive the arid conditions.

Climate in the Clayton Valley area is characterized by arid conditions. Summers are hot and dry. Winters are

cold and dry. The area receives on average about 4.5 inches of precipitation annually, distributed fairly evenly

throughout the year. The precipitation total includes approximately 13 inches of snow during a typical winter.

There are typically 28 days of precipitation in any given year and 290 sunny days. High summertime

temperatures during July and August range from 95⁰F to 97⁰F with low temperatures in the 60⁰F to 62⁰F range. Winter high temperatures generally fall in the 45⁰F to 47⁰F range and average lows between 17⁰F and 19⁰F.

Clayton Valley climate conditions allow for year-round exploration and production operations. Cold winter

temperatures and attendant reduced evapotranspiration rates can be expected to reduce the yield from solar

evaporation ponds that might be employed in the extraction of lithium and other alkali metals.

The Neptune property is of sufficient size to accommodate any future processing facilities. The USBLM claims

held by Nevada Sunrise include surface rights for any activities related to mineral exploration and production.

Naturally, any production processing and facilities will require permitting prior to construction and operation.

A two-wire power transmission line runs through the property in a northeast-southwest orientation between

Silver Peak and California. Power could be available to eventual operations on the Neptune property. Potable

water is available from the Silver Peak water company that serves that small community. Water can be

purchased from the utility for drilling operations or potable needs.

Tonopah is a regional center for mining and tourist activities and as such can supply nearly all of the needs of an

exploration program or operating facility. The town has numerous motels, hotels and restaurants as well as

grocery stores fueling stations and business-related services. A small civil airport facility lies approximately 8

miles east of town that accommodates small private and limited commercial aircraft.

Item 6. History

Prior ownership or the claims that constitute the Neptune property have been discussed in Item 4 above. The

author is aware of previous ownership of these claims and as a consultant to the previous operator,

AmeriLithium Corporation, is familiar with all of the exploration activities on the property. AmeriLithium

completed a gravity geophysical survey over the Clayton Deep property in April 2011. The survey identified a

structural basin beneath the property and delineated the depth, subsurface topography, and structural boundaries

of the basin. In December 2011, a detailed controlled source audio magneto-telluric (CSAMT) survey was

completed over the property to further define the structure and stratigraphy in and around the basin identified by

the gravity survey as an aid to lithium exploration. The CSAMT survey identified zones of high electrical

conductivity indicative of high-salinity groundwater aquifers and possible brines. The results of both of these


geophysical surveys were employed to identify drilling targets for future intrusive investigations. No mineral

resources or reserves have been reported in publically available literature. No production has occurred on the

property.

Item 7. Geological Setting and Mineralization

Regional Geology Clayton Valley lies within the Basin and Range Physiographic

Province, an extensive geographical and geological region that covers

a large portion of the western United States, nearly all of the State of

Nevada, and parts of northern Mexico (Figure 3). The province is

characterized by north-south oriented structural features that manifest

themselves as mountain ranges and intervening valleys known as Basin

and Range topography. The province also contains the Great Basin

which is the largest area of contiguous endorheic watersheds or closed

drainage basins in North America. The Great Basin is noted for its

arid conditions and Basin and Range topography. The Central Nevada

Desert, in which Clayton Valley lies, is a USGS hydrologic sub region

of 14 watersheds with endorheic drainages that terminate in the Great

Basin.

The topography and geology of the Basin and Range is a result of

crustal extension within this part of the North American Tectonic Plate

(Figure 4). The crust in this province has been stretched to nearly twice

its original width. In fact, the crust beneath the Basin and Range,

especially under the Great Basin, is some of the thinnest in the world.

Geothermal waters are abundant in the Great Basin indicating

magmatic heat sources below much of this thin-crusted region.

Along the roughly north-south-trending faults, mountains were

uplifted and valleys down-dropped during this extension, producing

the distinctive alternating pattern of linear mountain ranges and

valleys of the Basin and Range province.

These tectonic plate movements have resulted in the development

of the unique Basin and Range topography and structure. The rocks

exposed in the mountain ranges consist of sedimentary, igneous,

and metamorphic rocks ranging in age from late Precambrian to

Holocene (Albers and Stewart, 1972). Intervening valley fill

consists of Quaternary sediment accumulations resulting from

erosion and mass wasting of the surrounding mountains. The

Neptune property is situated in the southwest corner of Clayton

Valley with the Silver Peak Mountains immediately to the west, the

Palmetto Mountains to the south, and Clayton Ridge and the

Montezuma Mountains to the east.

The Silver Peak Mountains cover an area of approximately 300

square miles and are composed of two parallel belts of pre-Tertiary

sedimentary rocks intruded by quartz monzonite plutons separated

Figure 4. Plate Tectonics, Western North America. http://www.platetectonics.com/book/images/Transformfaults.gif

Figure 3. Basin and Range Province


by a central core consisting of a thick sequence of Tertiary sedimentary and volcanic rocks (Albers and Stewart,

1972).

The Palmetto Mountains are composed of a large intrusive body called the Palmetto Pluton and the Cambrian-

Ordovician-age sedimentary rocks that it intrudes. Rhyolite and quartz latite dikes intrude all of these rocks. The

entire sequence is extensively deformed by high angle and thrust faults (Albers and Stewart, 1972; Harrop,

2009).

The southwest portion of the Montezuma Range (to the east of Neptune) is composed primary of a thick

sequence of ovethrusted Cambrian-Ordovician sedimentary rocks intruded by numerous rhyolite dikes and

several small quartz latite intrusives masses. The northeast section of the range is composed of a similar

sequence of intruded, deformed, and faulted Cambrian-Ordovician sedimentary rocks overlain by a thick mass

of rhyolitic tuff which in turn is overlain in places by a mass of fused volcanic spatter fragments called

agglutinate. These rock types and associations indicated the presence of a large rhyolite volcano in the

immediate vicinity of Montezuma Peak at some time during the Tertiary period (Albers and Stewart, 1972;

Price, et al, 2000; Kunasz, 1974).

Local Geology The geology of the southern end of Clayton Valley is characterized by rocks and sediments typical of Basin and

Range terrain. The surface of Clayton Valley in this area is composed of Quaternary alluvial deposits derived

from rocks in the surrounding ranges by erosion and mass wasting. The Silver Peak Range to the west, the

Palmetto Mountains to the South, and the Montezuma Range to the east are composed of Paleozoic sedimentary

rocks, Tertiary volcanic deposits and granitic intrusive bodies. The Paleozoic rocks are highly deformed and

faulted with high-angle normal faults and thrust faults prevalent in rocks throughout the area around Clayton

Valley.

The Clayton Valley playa is characterized as an immature clastic salar or salt flat. The valley fill is dominated

by a thick sequence of clastic sedimentary deposits derived from the surrounding highlands with lesser amounts

of chemical precipitates. Zampirro (2004) describes the limited, shallow nature of the Salt Aquifer system in the

central Clayton Valley area which is composed primarily of halite with minor clay and gypsum interbeds.

While the geophysical investigations conducted by AmeriLithium Corp. suggest a similar set of aquifer

characteristics in the Neptune Project area, further investigations and drilling will be necessary to define the

aquifer characteristics of the basin underlying the property.

A large scale United States Geological Survey (USGS) gravity survey (Healey, et. al., 1980) found two gravity

lows (-210 milligals) in the south end of Clayton Valley (Figure 2); the South Central Low underlies property

controlled by Pure Energy Minerals Ltd. (“Pure Energy”) and Lithium-X Corporation (“Lithium-X”) among

other junior mineral exploration companies, while the Southwest Low underlies ground that is controlled by

Nevada Sunrise through the Neptune project (to the immediate west of Lithium-X and Pure Energy).

These gravity lows at the south end of Clayton Valley are filled by a thick sequence of clastic alluvial sediments

that accumulated over about the past 20 million years during the erosion of the surrounding mountain ranges and

the tectonic events that resulted in the formation of the closed basins characteristic of the Great Basin. Sources

of lithium in basin brines could be certain lithium-rich lithologic units within the sedimentary sequence as

described by Kunasz (1974). The source of this lithium could be, as suggested by Price, et. al. (2000), the

devitrification of rhyolitic vitrophyres of the adjacent Montezuma and Silver Peak Ranges that are some of the

most lithium-rich rocks in the world. Deposition of lithium into Clayton Valley may have been the result of

direct mass wasting of these volcanic rocks into the valley or by dissolution and transport of lithium by surface

and groundwater or some combination of these processes.


These two gravity anomalies may be associated with the paleostructure of Clayton Valley. The structures may

be buried Basin and Range faults that are evident in mountain fronts along the east flank of the Silver Peak

Range. The area around Clayton Valley is marked by a structural complexity that is as yet not well understood.

Bedrock in the surrounding ridges and mountain ranges reveal evidence of thrust faults, high-angle strike slip

faults, and high-angle dip slip faults (Albers and Stewart, 1972). Many of these fractures are largely or entirely

concealed by the post-fault sedimentary formations of Clayton Valley.

Evidence in the form of fault traces mapped on the surface (Albers and Stewart, 1972) and hot springs in the

vicinity of the town of Silver Peak (Garside and Schilling, 1979; NBMG, 2006) indicate possible upwelling of

lithium-bearing hydrothermal waters or migration of lithium enriched meteoric waters as possible sources of

lithium in the Clayton Valley area. The Silver Peak Hot Springs, which no longer flows due to drawdown

resulting from years of groundwater extraction by Albemarle Corp. and its predecessors, are said to have

contained anomalous concentrations of lithium and uranium.

Local Hydrology and Hydrogeology The structural and stratigraphic history of the Clayton Valley area has resulted in the development of a complex

hydrologic system. The interbedded sequence of sediments includes alluvial formations, bedded volcanic tuffs,

and welded tuffs that have been identified as aquifers. The chemical character of the groundwater contained in

these aquifers varies widely across the basin. Three basic groundwater types have been identified in the Clayton

Valley area (Davis, et al, 1986):

1. Cold, dilute groundwater in aquifers of the bedrock highlands; 2. Thermal, saline groundwater in sediments at the playa margins; 3. Cold, saline brines in the playa

All or any of these three groundwater types could be present in the subsurface of the Neptune property.

Therefore, exploration plans and methods are designed to identify the three types.

Zampirro (2003) has described the aquifer systems that contain the lithium-bearing brine deposits that have been

exploited by Chemetall in the central Clayton Valley. Understanding the hydrogeology of the Neptune property

area is critical to developing any resources present in that area and to any future production that might occur.

Currently, no lithium mineralized zones have been identified or encountered on the Neptune property.

Item 8. Deposit Types

A clear understanding of the environment in which lithium brines develop and the conditions under which

lithium deposits form is critical to identifying the indicators related to lithium-brine deposits and the discovery

of economic concentrations of lithium and other metals. Lithium deposits underlying the Neptune property have

yet to be identified and delineated. Host rocks or aquifers that may contain lithium in economically attractive

concentrations have yet to identified as well.

There are several deposit models that could account for the comparatively high lithium content in Clayton

Valley and specifically underlying the Neptune property:

1. Brine deposit derived from dissolution of lithium and other salts from basin sediments 2. Brine deposit derived from groundwater enrichment by transport of lithium- enriched groundwater to

basin traps from devitrified volcanic rocks in the Montezuma Range.

3. Continuing re-enrichment of lithium in basin sediments and groundwater via upwelling of hydrothermal fluids from a lithium- enriched magma beneath Clayton Valley.

4. A combination of all of these deposit models for lithium deposit genesis.


Albemarle Corp.’s predecessor companies,

including Rockwood Lithium and

Chemetall-Foote, conducted significant

exploration and lithium deposit studies in

Clayton Valley. The six conceptual deposit

models for lithium-enriched aquifer deposits

are shown in Figure 5 (Zampirro 2003). The

Chemetall-Foote investigations have

included drilling and analysis of the entire

stratigraphic column from the surface to a

depth of approximately 1,200 meters.

The conceptual deposit model generally

drives decisions regarding selection of

exploration techniques and the overall

exploration program. The early phases of

the Neptune Project exploration program

have employed nonintrusive techniques that

allow Nevada Sunrise to investigate multiple

concepts simultaneously.

Item 9. Exploration

The first phase of exploration on the Neptune Project involved non-intrusive geophysical methods and

geochemical testing. Geochemical sampling and analysis of native vegetation on the property was conducted in

order to evaluate the effectiveness of this technique for identifying subsurface lithium sources. The geophysics

was conducted with the intent to delineate subsurface geological formations and structural features. The

conceptual deposit models discussed earlier describe mineral deposits that, regardless of source, could

accumulate in stratigraphic traps or bedrock surface lows. These traps represent barriers to groundwater flow

and lithium migration in the subsurface. Geophysical techniques were selected that would identify these traps.

Gravity - Gravity surveys are used in the delineation of bedrock surface, geologic structure and

formation differences. This method involves the measurement of the gravitational field at a series of

different locations over an area of interest. The primary goal of studying detailed gravity data is to

provide a better understanding of the subsurface geology. The gravity method is a relatively

inexpensive, non-invasive, non-destructive remote sensing method that has been used extensively in

mineral exploration. Measurements of gravity provide information about densities of rocks

underground. There is a wide range in density among rock types, and therefore inferences can be made

about the distribution of strata through the analysis of gravity data. Structural features are also apparent

in gravity data. Since faults commonly juxtapose rocks of differing densities, the gravity method is an

excellent technique for mapping subsurface faults.

A gravity survey of the Neptune property was conducted by Magee Geophysical Services, LLC of

Reno, Nevada from April 15 to April 17, 2011. Magee collected gravity data from 162 gravity stations

which had been located prior to surveying and cover an area of approximately 85 square kilometers.

Data for 144 of these stations was acquired during this survey and 18 were reprocessed from archival

US Geological Survey data stations. Stations were surveyed at two intervals: 500 meters by 1,000

meters in the central grid portion and approximately 1,000 meters on the surrounding roads. Relative

gravity measurements were made with a LaCoste & Romberg Model-G gravity meter. Model-G gravity

Figure 5: Clayton Valley Aquifer Hosts (Zampirro 2003, Figure 4)


meters measure relative gravity changes with a resolution of 0.01 mGal. The gravity survey is tied to a

US Department of Defense gravity base in Tonopah (#0455-2). Topographic surveying was performed

with Trimble Real-Time Kinematic (RTK) and Fast-Static GPS. Magee provided the raw gravity data to

J.L. Wright Geophysics of Sparks, Nevada who analyzed the data and interpreted the results. As shown

in Figure 6, the survey described a fault-bounded basin, elongate in a northwest-southeast direction.

Electromagnetics- Electromagnetic (EM) profiling is a surface geophysical technique used to measure

terrain conductivity, a term which refers to the bulk electrical conductivity of subsurface materials. EM

conductivity surveying is primarily a tool for rapid lateral mapping of variations in sediment and

groundwater conductivity. It is used for mapping lateral transitions in soil type, saline groundwater,

sand and gravel deposits, clay aquitards, and shallow bedrock. The electrical conductivity of the earth

depends on several soil or geologic parameters including:

• groundwater conductivity,

• clay content,

• soil or formation porosity, and

• degree of water saturation.

EM techniques will respond to changes in any of these parameters. EM techniques are widely used for:

• mapping changes in soil type,

• mapping saturated zones,

• mapping alluvial paleo-channels,

• mapping aquitards,

• mapping geologic features.

Figure 6. Gravity Survey Map (from Wright 2011, Figure 10)

Coordinate system NAD 83/ UTM Zone 11N


Controlled source audio-frequency magnetotellurics - Controlled source audio-frequency

magnetotellurics (CSAMT) is a broadband, high-resolution, frequency-domain, electromagnetic

sounding, and profiling system. CSAMT is used for mapping subsurface geology and structure, and in

exploration for massive sulfides, geothermal sources, hydrocarbons, and groundwater. Broadband EM

systems are used extensively in mineral prospecting and are used regularly in Nevada to delineate

sedimentary basins like Clayton Valley. Earth resistivity values obtained with electromagnetic systems

are influenced by water salinity, mineralization content, porosity, and changes in structure. Various rock

types have a corresponding difference in resistivity, allowing electromagnetic methods to accurately

map subsurface geology.

A CSAMT survey of the Neptune property was designed and supervised by J.L. Wright Geophysics

based on the results and interpretation of the previously completed gravity survey. The CSAMT survey

was conducted by Zonge International, Inc. of Tucson, Arizona from November 29 to December 4,

2011. Wright then analyzed the data, interpreted the results, and presented the findings in a technical

report to AMEL (Wright 2012). The survey report constitutes a complete Geographic Information

System (GIS) database for the property including the gravity data, topography, geology, and the

CSAMT data. The Zonge report includes the following details regarding survey procedures and

instrumentation:

“The CSAMT data were acquired in the scalar mode along the two survey lines using a station spacing

(electric-field dipole) of 50 meters. Each line was 6,000 meters long, and the location of the CSAMT

transmitter relative to the survey lines is to the southeast. The data were acquired in spreads, reading

five or six electric field dipoles simultaneously with the perpendicular magnetic field in the center of the

spread. All data were acquired with Zonge model GDP-32II multiple purpose receivers (serial numbers

32284 and 3292). The Zonge GDP32II instrument is a commercially-available, backpack-portable, 16

bit, microprocessor-controlled receiver that can gather data on as many as 16 channels simultaneously.

The electric-field signals were sensed using non-polarizable porous pot electrodes, connected to the

receiver with 16-gauge insulated wire. The CSAMT magnetic-field signal was sensed with Zonge Ant/6

magnetic field antennas (SNs 586 and 2156). The transmitter used for this survey was a Zonge GGT-30

transmitter (SN 2017), with a 30-kilowatt Zonge ZMG-30D motor-generator set (SN 003).”

Wright compiled and interpreted the data collected by Zonge with the objective of further defining

structures and stratigraphy in the basin as an aid to the identification of possible brine target areas and

development of a lithium brine test drilling program. Delineation of possible aquifers and inter-basin

structures is critical to the exploration effort. The previously accomplished gravity survey preceded the

CSAMT work and was used to place the CSAMT survey lines over two deep zones in the central

portions of the Neptune basin.

Figure 7 shows the layout of the CSAMT survey lines on the gravity-derived basin model and

topography. The lines were “anchored” to bedrock on the southwest end and oriented to cut the basin

axis at right angles and to cut the two deepest portions of the basin as described by the gravity survey.


Figure 8 shows the interpretation of the results of the CSAMT survey. The figure shows the cross

section of the two survey lines atop the basin topography and geology. The presence of a low-resistivity

layer approximately 150 meters thick lying between 100 and 250 meters below the surface is a

significant finding of the survey. This layer dips slightly to the northeast at the southern end of survey

Line 1 but is nearly flat-lying across the extent of the identified Neptune basin.

Figure 7. Neptune CSAMT map (from Wright 2012, Figure 9)


Figure 8. Inverted Resistivity Sections, Basin Depth Model and Geology

Biogeochemical Sampling- In October 2015, Nevada Sunrise carried out geochemical sampling on the

Neptune property. A professional geologist contracted by the Company collected 16 vegetation samples

from a plant known as Spiny Menodora growing near three of the recommended drill sites, known as

P1, P2 and P3. Five samples were taken at each of the three sites (designated P1, P2 and P3). Samples

were collected at the designated site and at four locations 100 meters along the four compass points

from each designated site.

Approximately 20 cm of branch tips and leaves were cut and bagged, totaling 15 samples. A single

control sample was taken approximately 6 kilometers south of Goldfield, Nevada, 45 kilometers east of

the Neptune property. The samples were clipped and bagged and sent to Bureau Veritas Mineral

Laboratories Canada for analysis.

The geochemical results showed lithium values in the plant tissues ranging from 10.57 ppm to 35.39

ppm. A review of published reports (Cannon, et al, 1975; Dunn, 2007) on biogeochemical sampling and

background levels of lithium in desert plants suggests that the results are anomalous and that lithium

enrichment is present in vegetation in the area of the proposed Neptune drillholes. However, while these

comparisons suggest that the results at Neptune are anomalous, further testing will be necessary to

confirm the effectiveness of plant tissue analysis as an indicator of lithium enrichment in the subsurface.

Results are presented Table 2 below.


Table 2. Biogeochemical Sampling Results, October 2015

Nevada Sunrise - Neptune Vegetation

Sampling, Oct. 2015 (NAD 27 - 11N)

Sample

Site UTM E UTM N

Date of

Sampling Notes Subject of Sample Li (ppm)

P1 435110 4166190 18-Oct-15 Staked, proposed well site spiney menodora (SM) 32.09

P1 north 435110 4166290 18-Oct-15 100 m north from staked site spiney menodora 23.82

P1 south 435110 4166090 18-Oct-15 100 m south from staked site spiney menodora 18.03

P1 east 435210 4166190 18-Oct-15 100 m east from staked site spiney menodora 34.02

P1 west 435010 4166190 18-Oct-15 100 m west from staked site spiney menodora 33.63

P2 436595 4164295 18-Oct-15 Staked, proposed well site spiney menodora, raining 14.35





P3 437555 4165090 18-Oct-15 Staked, proposed well site spiney menodora, raining 13.12





Item 10. Drilling

No drilling has been completed on this property although a limited exploration drilling program has been

planned and permitted. Nevada Sunrise has received approval from USBLM for a 10-hole drilling program on

the Neptune property.

The exploration program will consist of drilling a maximum of 10 reverse circulation drill holes to maximum

depth of 2,000 feet (610 meters). Average drillhole depth is anticipated to be approximately 1,400 feet (427

meters). All drill holes will be vertical in orientation. Nevada Sunrise may not drill all of the proposed holes, if

initial results do not meet company expectations.

Item 11. Sample Preparation, Analysis and Security

Biogeochemical sampling, discussed in Section 9, Exploration, at present constitutes the extent of physical

sampling at Neptune. This reconnaissance-level sampling was conducted to evaluate the effectiveness of the

method for identification of subsurface lithium sources.

Samples were collected, packaged and sealed in the field and delivered to Bureau Veritas Mineral Laboratories

Canada (“Bureau Veritas”) in Reno, Nevada. All samples were delivered to the Reno laboratory by hand under


chain of custody procedures. The samples were in the possession of the sample collector from collection until

they were surrendered in person to Bureau Veritas.

Preparation and analysis of the vegetation samples was completed by Bureau Veritas. The laboratory dried and

macerated the sample material. The laboratory employed an aqua regia digestion procedure as preparation for

analysis and then utilized the Inductively Coupled Plasma – Mass Spectrometry (ICP-MS) analysis method to

test for lithium and 52 other elements.

The laboratory is an independent contractor of the issuer. No other relationship exists between the two. Bureau

Veritas operates under several international accreditations and is regularly independently tested to confirm that it

meets the standards of the accreditation organization.

The laboratory has an extensive Quality Management System (QMS) that includes duplicates, blanks, spikes,

and spike recoveries. A Quality Assurance and Quality Control (QA/QC) was provided with the analytical

results report and showed no problems with the analyses.

It is the Author’s opinion that the data provided by the independent and accredited Bureau Veritas laboratory,

the sample preparation and analysis, and sample security are sufficient for the purposes of this report.

Item 12. Data Verification

Because of the limited, reconnaissance-level nature of the biogeochemical sampling program at Neptune, no

field-level QA/QC program was conducted. However, laboratory testing of the samples was the subject of

quality control procedures. Bureau Veritas laboratories have an extensive Quality Management System (QMS),

which involves standard reference materials, duplicates, blanks, spikes and spike recoveries. The lab provided

a Quality Assurance and Quality Control (QA/QC) summary with the report of analytical results for the Neptune

biogeochemical sampling. Analyses and QC data demonstrated that there were no reported problems with the

analyses provided by the Bureau Veritas.

Item 13. Mineral Processing and Metallurgical testing

No testing of this nature has been conducted for this project.

Item 14. Mineral Resource Estimates

No mineral resource estimates are available or yet warranted for this project.

Item 23. Adjacent Properties

Albemarle Corp.’s Silver Peak Lithium operation is located within Clayton Valley about 10 miles north of the

Neptune Project. Construction of production wells, a lithium carbonate production facility, and an evaporation

pond system began in 1964. Production commenced in 1967 and has continued essentially uninterrupted to

present day. Lithium concentration and total production data for this facility is not well known, as proprietary

production figures are not available publically. According to Zampirro (2003), pumping tests and continuous

production pumping records show brine salinity in production wells ranges from 40,000 to 170,000 milligrams

per liter of Total Dissolved Solids (TDS). Lithium concentrations exceeding 400 parts per million (ppm) have


been extracted from the basin (Papke, 1976; Vine, 1980). Economic grades ranging between 230 ppm and 300

ppm have been reported (Kunasz, 1970; Davis et al, 1986).

Pure Energy controls a large block of placer claims to the east of the Neptune claim block. The Pure Energy

property was owned until 2012 by Rodinia Lithium, Inc. (“Rodinia”). Pure Energy has been in the process of

exploring the block of claims formerly owned by Rodinia over the past several years. According to the Rodinia

website, the company “commenced its initial exploration work in 2009. By the summer of 2010, the Company

had completed a detailed gravity survey over its entire land holding and had drilled 6 reverse circulation drill

holes strategically across the deposit, collecting data that included lithology, specific gravity, reverse

circulation return flow rates, temperature and other field measurements. Additionally, downhole geophysical

logging (porosity and density), sediment and brine sampling was conducted at regular intervals where possible.

The results were deemed positive, having interested 370 mg/L lithium over 30 metres on the southern trend in

Drill Hole SPD-09. It is believed that this intersection coincides with the aquifer that Chemetall is currently

producing from on the neighboring property. Rodinia is currently in the process of permitting its third

exploration drill program for Clayton Valley. The program calls for up to seventy-two reverse circulation drill

holes targeting extensions of the known Silver Peak aquifers.”(Rodinia, 2013).

Pure Energy has since staked and consolidated a group of 182 contiguous placer claims totaling approximately

8,004 acres (3,240 ha.) essentially covering a linear north-south gravity low defined by Rodinia. In late 2014

and early 2015 Pure Energy drilled two wells, CV-1 and CV-2. Combined with the results of Rodinia’s

historical wells SPD-08 and SPD-09, the results of various geophysical surveys, and a seismic survey carried in

2015, an inferred resource estimate was calculated in July 2015 and filed on SEDAR.

The independent technical report, titled "Inferred Resource Estimate For Lithium, Clayton Valley South Project,

Clayton Valley, Esmeralda County, Nevada, United States," dated July 17, 2015, was prepared by Raymond P.

Spanjers, PG, of North Carolina, United States (Spanjers, 2015). The technical report outlines an inferred

resource estimate for the Clayton Valley South Project of 816,000 metric tonnes of lithium carbonate equivalent

(LCE), present as extractible brine in two aquifers (Main Ash aquifer and Lower Aquifer system).

The inferred resource estimate was based on the two main identified aquifer units, the Main Ash aquifer (which

was fully penetrated by all four boreholes) and the Lower Aquifer system (none of the boreholes found the base

of this lithium-brine-bearing aquifer. Full details of the resource calculation are provided in the publicly

available report (Spanjer 2015). Lithium concentrations and the saturated thickness of the brine-bearing zones

were based solely on data from the boreholes, and the lateral extent of the aquifers was based on geophysical

data.

Pure Energy continues to actively explore the Clayton Valley South property and was engaged in drilling new

wells in late 2015 and early 2016 to potentially increase the size and quality of the inferred lithium resource.

Lithium-X Energy Corp. (“Lithium-X”) has acquired 471 placer claims totaling approximately 9,540 acres

(3,861 hectares) of which the southern portion is contiguous to the Neptune property. In February 2015, Lithium

–X announced plans for exploration on the property.

The Author has been unable to verify the information reported by Pure Energy in its technical reports. The

information contained in those reports describing the mineralization and resource potential for the Pure Energy

property is not necessarily indicative of the mineralization on the Neptune property that is the subject of this

technical report.

Adjacent properties are shown in Figure 9 in relation to the Neptune Project.


Figure 9. Adjacent properties in relation to the Neptune Project.

Item 24. Other Relevant Data and Information

No other information pertinent to the property is available at this time.

Item 25. Interpretation and Conclusions

The results of the early exploration phase work on the Neptune property are encouraging. Additional more

detailed and invasive exploration techniques are warranted given the results of the two geophysical surveys at

Neptune. Drilling of identified targets is the next logical step in the exploration process and has reasonable

potential to identify mineralized brine aquifer units under the Neptune property and may identify brine deposits

with economic potential.

The gravity survey data shows a structural depression underlying the Neptune claim block (Figure 3). The

resolution of the data is such that geologic structures bordering the basin and paleo-stream channels are clearly

evident in the data analysis. The basin measures approximately 3.1 miles (5,000 meters) in the northeast-

southwest direction and 3.7 miles (6,000 meters) in the northwest-southeast direction, encompassing a surface


area of about 7,400 acres (2,960 hectares). Basin depth exceeds 4,265 feet (1,300 meters) in two locations

within the basin.

The Wright (2011) report states: “The gravity survey agrees well with regional USGS data and reveals a basin

with two distinct portions. A strong elliptical low, elongate in the northwest-southeast direction, is bounded to

the southwest by a major structure. Depth of Quaternary basin fill in this portion is on the order of 1300m. The

remainder of the basin to the north and east is dominated by moderate depth variations with an average of

approximately 300m. Several structures with normal movement facet the basin and likely accommodated

displacement during basin formation. In addition to the structures are a number of paleo-channels which

appear to have incised channels into the volcanic rocks and later filled with low density material.”

The major fault structure on the southwest edge of the basin appears to have a significant vertical displacement

on the order of 1,100 to 1,200 feet (334 to 365 meters). Paleozoic basement rocks are thus in contact with much

younger Quaternary basin sediments at the surface on the southwest boundary of the basin. Faults of as yet

unknown displacement are evident from the gravity data on the eastern and northern boundaries of the basin.

Paleo-channels are also evident entering the basin from the north, east, and west of the basin. These incised

channels indicate drainage of fluids and transport of sediments into the basin from Clayton Valley to the north

and east and from the Silver Peak Range on the west.

The presence of the well-formed basin, evidently filled with Quaternary sediments, is highly prospective for

lithium-bearing sediments groundwater. Basin sediments are expected to be similar in nature to those from

which Clayton Valley lithium production has historically been confined. The presence of drainage patterns

showing evidence of fluid migration from Clayton Valley proper and Silver Peak Range rocks suggests

hydraulic connection with several potential sources of lithium-rich groundwater.

The stratigraphic and structural detail shown in the CSAMT survey data for both survey lines indicates the

presence of highly conductive layers that are indicators of possible brines below the surface within the Neptune

claim block. Conductive sedimentary units are evident in the interpreted data along both survey lines. Distinct

low-resistivity layers stand out on both survey profiles as separate from high-resistivity beds above and below.

Of note is the presence of a low-resistivity layer approximately 150 meters thick lying between 100 and 250

meters below the surface. This layer dips slightly to the northeast at the southern end of survey Line 1 but is

nearly flat-lying across the extent of the identified Neptune basin. The layer is persistent horizontally to the

northeast for nearly 4.5 kilometers.

According to Wright (2012), “the CSAMT reveals a layered sediment package with components of dip to the

northeast and southeast. Layer resistivities generally decrease with depth with a prominent low resistive

(conductive) layer noted as a possible host to brines. The water table is also interpreted at the base of the

surface high resistivity layer”. The report also states that “Increased permeability and brine content should

lower the resistivity of the rocks. Thus conductive layers (i.e. low resistivity) proximal to interpreted structures

are considered target characteristics”.

Volcanic ash, sand, and gravel layers are the host units for groundwater aquifers in Clayton Valley from which

Albermarle Corp. and its predecessors have produced lithium since the 1960s. These units appear as low-

resistivity formations in the CSAMT profiles. Additional evidence of brine accumulation may be indicated by

the clearly identifiable faults on the southwest edge of the property that were first evident in the previous gravity

survey. The presence of highly conductive (low resistivity) sedimentary units in proximity to basin-bounding

faults is an important indicator of the presence of brines in Clayton Valley (Zampirro 2003).

While the presence of low resistivity in sedimentary layers within the Neptune basin and their proximity to

basin-edge faults is highly suggestive of brine aquifers, it does not guarantee the presence of economic lithium-


bearing brine concentrations. The only true test for economic concentrations of lithium is drilling, groundwater

sampling, and laboratory analysis. This is the next step in the Company’s exploration process.

Three drillhole locations have been identified based on the CSAMT results. Drilling depths are anticipated to be

between 400 and 500 meters. Drillholes will be designed to penetrate into the low-resistivity unit and collect

water samples for analysis. An additional target will be the base of the conductive layer in order to confirm the

stratigraphy in the basin.

This is an early stage exploration target. The risks of pursuing this type of project are high. Exploration

programs could lead to the conclusion that no mineral resource or reserve exists on the site. The discovery of

anomalous concentrations of lithium in groundwater and sediments in the basin underlying the Neptune property

do not necessarily mean that there will be economic mineral deposits. Further investigations will be necessary to

understand the hydrogeology of the property and the nature of the brines. Determination of aquifer

characteristics will be critical to determining the economic feasibility of the development of lithium production

from saturated units underlying the Neptune Project.

Item 26. Recommendations Drilling is the next step in the exploration process. The permitted 10-hole program, if completed in its entirety,

is estimated to cost approximately US$1,600,000 including drilling services, laboratory analysis, and

supervision. An initial 3-hole program would target the three zones identified by the geophysical survey

programs and would have estimated completion cost of US$340,000 including drilling services, supervision, and

laboratory analysis.

The initial three drillholes should be drilled in the locations and to the depths shown in Table 3 and on Figure

10. Site conditions and permit guidelines may require modification of initial drillhole location. Any

modifications however should include consideration of the conceptual deposit model and target zones identified

by the geophysical surveys.


Figure 10. Proposed drillhole location on inverted CSAMT survey line cross sections

Showing geology and basin model

Table 3. Proposed drillhole location information.

PROPOSED

DRILLHOLE

Depth

(feet/meters) UTM_E _27 UTM_N_27 SPW_E_83 SPW_N_83

P1 1312/400 435110 4166190 2869871 14177295

P2 1312/400 436595 4164295 2874849 14171159

P3 1640/500 437555 4165090 2877955 14173821

(Shown in coordinate systems NAD27, UTM zone 11N and Nevada State Plane West 83)

Holes P1 and P2 test the conductive layer near the major basin bounding structures with a target concept similar

to the Marginal Gravel Aquifer shown in Figure 5. The target would be brines contained in coarse clastic

sediments ponded by the basin bounding structures. Hole P2 tests an area in proximity to another structure to the

northeast, which could serve as an additional barrier to brine movement. Hole P3 is located over a deeper part of

the basin on a lower-resistivity portion of the conductive layer with a bounding structure immediately to the

northeast. Again this could represent ponding of brines by a structure. The target concept would be similar to the

Lower Aquifer System shown in Figure 5.


Sampling and analysis of sedimentary units and encountered groundwater should be accomplished during the

drilling. Drill cuttings should be collected for each 5-foot (1.7-meter) interval drilled. Samples should be

packaged and labeled according to a predetermined sample labeling plan. Discreet samples of water from each

water-bearing unit should be collected, packaged, and labeled. The pl

nevada sunrise gold corpauthor chip created date 4/6/2016 5:50:45 pm

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