Report

On a 3D Magnetic Inversion

For

Cadillac Ventures Ltd

And

Newcastle Minerals Ltd.

Pickle Lake Project

Ontario, Canada

SCOTT HOGG & ASSOCIATES LTD

October 2010

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TABLE OF CONTENTS

1 INTRODUCTION ............................................................................................ 2

2 PROPERTY LOCATION ................................................................................ 2

3 MINERAL CLAIMS ......................................................................................... 3

4 MAG 3D INVERSION ..................................................................................... 3

4.1 Process .................................................................................................... 3

4.2 Mag3D Input ............................................................................................ 4

4.3 Mag3D Output ......................................................................................... 4

5 INTERPRETATION AND RECOMMENDATIONS ......................................... 5

APPENDIX I – IMAGES OF MAPS ACCOMPANYING THIS REPORT .............. 6

APPENDIX II – SUSCEPTIBILITY PLAN SECTIONS ....................................... 10 Magnetic Susceptibility Horizontal Section Maps Included With This Report At 1: 20000 Scale

Susceptibility Section Depth = 20m

Susceptibility Section Depth = 100m

Susceptibility Section Depth = 200m

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1 INTRODUCTION Cadillac Ventures Ltd. and Newcastle Minerals Ltd. are exploring for gold and base metals in the Pickle Lake Area of Northern Ontairo. In early 1986, Geoterrex flew a magnetic and electromagnetic survey over the Pickle Lake area, using their GeoTEM fixed wing system. In October 2010, Cadillac and Newcastle contracted Scott Hogg & Associates Ltd. to complete a 3D magnetic inversion of a subset of data over a small group of claims owned by the group. This report summarizes the inversion procedure and presents the results.

2 PROPERTY LOCATION The property is located approximately 7km east of Pickle Lake, Ontario. See Figure 1 below.

Figure 1 – Property Location Map

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3 MINERAL CLAIMS

The magnetic inversion was completed over the following mineral claims:

1234495, 1234496, 1244526, 1244527, 3002048, 4241793, 4241794, 4241795 and 4254823

Figure two below shows the claim group.

Figure 2 – Claim Group

4 MAG 3D INVERSION

4.1 Process

The MAG3D program was developed by the UBC–Geophysical Inversion Facility of the Department of Geophysics and Astronomy at the University of British Columbia. The forward model component calculates the magnetic value at a point XYZ due to a regular 3 dimensional array of cells of varying magnetic susceptibility. The 3-D cell array is defaulted to zero susceptibility above the ground surface and below ground the susceptibility values varies to reflect the geology. The inversion process identifies a susceptibility value for each subsurface cell that together would produce a magnetic value at each XYZ location that best approximates the measured magnetic value. It is important to recognise that the solution provided is not unique, it is one of an infinite number of possible distributions of magnetic susceptibility that could reproduce the magnetic measurements. Nevertheless, it is a solution that might reasonably reflect the

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true underlying geology. It is also important to note that shallower cells have a far greater influence on the solution than those at depth and thus the resolution, sensitivity and accuracy of the result will diminish with depth.

4.2 Mag3D Input

A regional magnetic component was removed from the total field profile data and the residual component was used as input to the Mag3D inversion process. Figure 3 below shows a grid of the residual magnetic data over the claim group.

Figure 3 – Residual Magnetic Field

A three-dimensional mesh was defined for the area. The cells of the mesh measured 25m in both the 'north' and 'east' direction and varied from 20 m to 50m in the vertical direction. Additional 'padding' cells were added outside the area of interest to accommodate boundary issues. These extra cells were stripped for the final presentation.

4.3 Mag3D Output

The Mag3D inversion process returns magnetic susceptibility values (SI Units) for each cell in the mesh described above. A viewing tool, Meshtools3D (that accompanies this report), allows one to view the distribution of susceptibility cells in a colour-coded 3D array. Vertical and plan sections may be exported, as well as animated AVI files ‘stepping’ through the model. Horizontal plan sections at each depth ‘slice’ of the 3D model have been provided as an appendix to this report. Susceptibility is given in SI

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units. All coordinates are UTM Zone 15n, NAD 83. Jpeg map images of selected depth plans, with claims, are also included with the report.

5 INTERPRETATION AND RECOMMENDATIONS

Figure 4 – Susceptibility map at 100m depth

The inversion model has revealed three strongly magnetic features (A, B and C above) shallower than 20m and continuing to depths beyond 300m. It is important to remember that the inversion process is sensitive to a shallow solution and it is possible the bodies continue to a greater depth extent. Anomaly C lies along an east-west striking feature and may represent a wide section of the linear body. The modelled magnetic susceptibility of the three features is quite high (> 0.1 emu SI) and could be indicative of sulphides. It is recommended that the EM data be interpreted for indications of conductivity. Lower level airborne or ground magnetic and EM surveying is recommended as follow-up to better map the features.

Respectfully submitted, Steve Munro Scott Hogg & Associates Ltd. Toronto, Canada October 6, 2010

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APPENDIX I – IMAGES OF MAPS ACCOMPANYING THIS REPORT

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APPENDIX II – SUSCEPTIBILITY PLAN SECTIONS