A Report on a Helicopter Borne Time Domain Survey on the Property of

CANADIAN GOLDEN DRAGON RESOURCES LTD

Tilly Group, Shebandowan Belt Thunder Bay Mining Division, Ontario

Province of Ontario

For Canadian Golden Dragon Resources Ltd 20 Maud Street, Suite 500, Toronto, Ontario M5V 2M5

December t h, 2005

Roger J Caven, BASc, P Eng, Consulting Geophysicist 201- 4458 Albert Street, Burnaby, British Columbia, CANADA V5C 2G2 TellFax: (604) 291-8294, e-mail: roger caven@telus.net

Summary Introduction Property - Description and Location Geology of the Claim Group and Area

TABLE OF CONTENTS

Helicopter Time Domain Electromagnetic-Magnetic Survey Discussion of Results

Distribution of Work Performed Conclusions and Recommendations References Certificate of Author

Appendix

Page 3 3 4 5 5 5 5 6 7 8

Specifications for Helicopter-borne Time Domain Electromagnetic Geophysical Survey, Pele block, Thunder Bay Area, Ontario, Canada for East West Resource Corporation from information by Geotech Limited.

Location Map Claim Map Magnetic Contour map with claims for Tilly Lake claims Helicopter EM Profile map with claims for Tilly Lake claims Tilly Magnetic and EM combined Map

IN POCKET

Magnetic Contour map Helicopter EM Profile map

with claims for Tilly Lake claims with claims for Tilly Lake claims

Scale 1:50,000 Reduced Reduced Reduced

Scale 1 :20,000 Scale 1 :20,000

2

3

SUMMARY The Canadian Golden Dragon Resources Ltd holds 22 claims with 151 claim units in Tilly Lake, Moss, and Powell Townships, within the Shebandowan greenstone belt, about 70 miles/ 112 km west of Thunder Bay, Ontario. The claims are held 100%. This report deals with the recent helicopter borne time domain EM and magnetic geophysical survey over part of the claims group to explore for extensions of mineralized showings on surface. The claims covered by this survey form an extension to an earlier survey, which did not cover the whole claim group.

On May 20th to June 7th, 2005, Geotech Ltd flew the Pele area with the helicopter-borne time domain

electromagnetic/magnetic survey system. This survey was intended to outline electromagnetic conductors and to obtain detail magnetic information for the purpose of outlining the subsurface geology. Results of the survey are appended as maps. The survey covered a wider area including the Pele Gold Aberdeen property. The portion of the survey relevant to this report is measured to be 67.42 km.

INTRODUCTION

Canadian Golden Dragon Resources Ltd has been directing its attention to greenstone belts in addition to interest in ultramafic intrusives. The Tilly Lake, Moss Township, and Powell Lake claims are in the Shebandowan greenstone belt in the Wawa subprovince. The Archean age Superior Province includes several greenstone belts with iron formations and sulphide occurrences, many with economic basemetal mineralization. Although the greenstone belts have been subject to exploration for many years, newer geophysical techniques have improved the discrimination of conductive features as well as providing a better depth penetration. Although helicopter borne geophysical surveys have been used for many years, they have been based on frequency domain systems which have limited depth penetration, though generally resolution of near surface features have been good. The move to time domain electromagnetic systems began in the 1960's with the Barringer Research INPUT® system. INPUT® improved depth penetration, although resolution was less. Several time domain systems have been developed since, among them the Fugro (formerly Geoterrex) Megatem® system with high power and very good depth penetration. Recently Geotech Ltd has developed and tested the helicopter borne Time Domain Electromagnetic (TDEM) system. The Company decided to use the TDEM system for a detail look at several areas of the Shebandowan greenstone belt.

® Ontario

USA

Tilly

LEGEND" PHANEROZOIC

MESOZOIC CRETACEOUS

~ Sedimentary rocks

PALEOZOIC

SILURIAN

CAMBRIAN

c=J Sedimentary rocks

PRECAMBRIAN GRENVILLE PROVINCE

PROTEROZOIC NEO- TO MESO PROTEROZOIC

Migmatitic rocks and gneisses

Mafic to ultramafic plutonic rocks.

Felsic plutonic rocks, derived gneisses and mig~atites

f,ij)~1£ ,I Metavolcanic and • ' metasedimentary rocks

GEOLOGY AND PRINCIPAL MINERALS

OF ONTARIO

HUDSON

BAY

JAMES

BAY

Cl ()

Major Mineral Deposits Past and Presenl

• Gold

• Silver '" Iron

" Copper-Nickel

• Zinc-Copper

o Platinum-Palladium

+ Uranium * Industrial Minerals

Se<>le 1 . a 000 000

50 50 100 150 200 Kilometres

50 a 50 100 150 Mile.

SUPERIOR AND SOUTHERN PROVINCES NED-TO MESOPROTEROZOIC

.. Felsic intrusive rocks

~ Mafic intrusive rocks

~ Volcanic and sedimentary rocks

Metasedimentary and metavolcanic rocks

SUPERIOR PROVINCE ARCHEAN

TO MESOARCHEAN Massive to foliated granodiorile to granite

Foliated to gneissic tonalite to granodiorite

Metasedimentary rocks and derived gneisses

MetavolcaniC and metasedimentary rocks

a Phaneroloic units are lithostratigraphic, whereas Precambrian unots are lilhologic .

QUEBEC

U.SA

o 1995 Queen's PrirCer foI' Ontaflo

Printed in Ontario, Canada

4

PROPERTY - DESCRIPTION AND LOCATION

Canadian Golden Dragon Resources Ltd has assembled a 151 claim unit property in the Tilly Lake area centred at 48° 31' Nand 90° 51' W, covering also part of the Moss Township, and Powell Lake areas, approximately 112 km west of Thunder Bay, in the Thunder Bay Mining Division. The property is road accessible via Hwy 11 to Kashabowie situated -88 km WNW of Thunder Bay. Local and forestry roads branch off the highway south to the property. The claims are described in the following table:

Canadian Golden Dragon - Tilly/Pele airborne Claim Units Area Recorded Due Date Work Req'd 1246765 16 Tilly 2001-May-24 2007-May 24 3483 1246766 12 Tilly 2001-May-24 2006-May 24 975 1246767 08 Tilly 2001-June-27 2007-June-27 3200 1246769 06 Tilly 2001-June-27 2007-June-27 2400 1246770 09 Tilly 2001-June-27 2006-June-27 3600 1246771 06 Tilly 2001-June-27 2006-June-27 2400 3001511 10 Moss Twp 2002-Jul-31 2006-Jul-31 4000 3001649 05 Tilly 2002-0ct-23 2006-0ct-23 2000 3009583 03 Tilly 2002-Aug-28 2006-Aug-28 1200 3009584 03 Tilly 2002-Aug-28 2007 -Aug-28 1200 3010481 08 Tilly 2003-Sept-10 2006-Sept10 1600 3013427 08 Tilly 2003-Dec-18 2006-Dec-18 3200 3013428 16 Tilly 2003-Dec-18 2006-Dec-18 6400 3013429 16 Tilly 2003-Dec-18 2005-Dec-18 6400 3013430 04 Tilly 2003-Dec-18 2005-Dec-18 1600 3013431 03 Tilly 2003-Dec-18 2005-Dec-18 1200 3013432 03 Powell 2003-Dec-18 2006-Dec-18 1200 3014824 02 Tilly 2004-0ct-05 2006-0ct-05 800 3019965 04 Tilly 2004-Dec-03 2006-Dec-03 1600 3019966 03 Tilly 2004-Dec-03 2006-Dec-03 1200 3019967 04 Tilly 2004-Dec-03 2006-Dec-03 1600 3020000 02 Powell 2004-Nov-17 2006-Nov-17 800 -.... _----_ .. _-------------------- ... _----------------------------_ ... _-------------------------------._-----

151 52058

5 GEOLOGY OF THE CLAIM GROUP AND AREA

The Tilly Lake group of claims in the Kashabowie area are in the Shebandowan greenstone belt of the Wawa Subprovince of the Superior Province. The age is Archean. The Shebandowan greenstone belt is arcuate in shape reflecting the curvature of the Quetico - Shebandowan greenstone belt boundary, approximately WSW - ENE as shown by the magnetic trends. The Shebandowan greenstone belt is subdivided into the Burchell and Greenwater assemblages, with a third suite of rocks, the Shebandowan assemblage, consisting of sedimentary and volcanic rocks which overlie unconformably the Burchell - Greenwater boundary, locally straddling it. The Burchell assemblage is divided into three cycles, with cycle 1 intruded by the Shebandowan Lake intrusion. The lower part of cycle 1 comprises massive basalt flows locally altered to chlorite schist. Pillow lava underlies the dacite and rhyolithic units in the upper parts of the cycle. Near the base of this cycle are tabular, serpentinized, peridotite units that contain copper - nickel mineralization. Cycle 1 contains the most extensive basic intrusions in the greenstone belt. Cycle 2 also contains numerous mafic intrusions, but also distinguished by a thick unit of rhyolite to dacite, which extends along the northern part of the belt. The main mass of this fe/sic unit located in and south of the Burchell area is displaced and separated from the more tuffaceous eastern part by right-handed transcurrent movement on the Crayfish Creek fault. (The geology information has been abstracted from "Geology of Ontario; OGS Special Volume 4, Pt1, 1991.) Further geological information in: Ontario Geological Survey. 1991. Airborne electromagnetic and total intensity magnetic survey, Shebandowan Area; Ontario Geological Survey, Maps 81571, 81572, 81573, 81588, and 81589, scale 1:20,000.

HELICOPTER TIME DOMAIN ELECTROMAGNETIC - MAGNETIC SURVEY

The flight line direction was northwest-southeast with a nominal 100 m separation. The data has been plotted as total field magnetic contours and stacked EM profiles. Claim outlines have been shown on the maps. A synopsis of the Geotech specifications is appended with further details of the operation and equipment.

Discussion of Results The magnetiC and EM conductor trends are nearly SW to NE, following magnetic trends. A very strong magnetic anomaly is present on claim 1246766, with flanking EM conductor which appears to be directly associated with the magnetic high but on the south side of the magnetiC anomaly. Further northeast other conductors are also in a flanking relationship to the magnetics although they have now crossed over the magnetic trend to the north flank. There are also short, discrete EM conductors away from the magnetic anomaly but generally following the same trend. A very sharp EM response on the NE part of claim 3001511 is associated with a local magnetic low coinciding with a small topographic high. The airborne EM results are presented as profiles, with claims at a scale of 1 :20,000, the scale at which the data was delivered by Geotech Ltd. The detail magnetic survey is presented as a contour map for total magnetic intensity at a scale of 1 :20,000. The claims were digitized from Government claim maps. In order to provide a quick view of the data, the maps have also been reduced and appended to the report.

DISTRIBUTION OF WORK PERFORMED

Canadian Golden Dragon Tilly Claims The assigned work takes into account turn-arounds and navigational requirements to cover the area. The following work has been determined for the claims:

Canadian Golden Dragon - Tilly/Pele airborne Claim Units Area Recorded 1246765 16 Tilly 2001-May-24 1246766 12 Tilly 2001-May-24 1246767 08 Tilly 2001-June-27 1246769 06 Tilly 2001-June-27 3001511 10 Moss 2002-July-31 3019967 04 Tilly 2004-0ec-03

56

Due Date 2007-May 24 2007-May 24 2007 -June-27 2007 -June-27 2006-July-31 2006-0ec-03

In claims 27.32 km 19.52 2.84 0.84

15.24 1.66

67.42 km

6

CONCLUSIONS AND RECOMMENDATIONS

The geophysical work has been focused on delineating mineralization on the Tilly Lake claims group and extending previously found conductors. A multitude of anomalous responses were found which may indicate mineralization, and a careful analysis is needed of the information gathered in light of other information on the property. Most of the EM responses are best viewed on detail profiles on individual lines where they can be enhanced for better analysis. It may be useful to have VLF-EM or induced polarization to further probe conductors, which appear in the airborne work but have no surface evidence. Pseudosection calculations on the VLF-EM data may separate close conductors not already evident in the helicopter survey as well as depth and depth extent within the range of VLF-EM detectability. This would be followed by induced polarization where deemed useful, prior to drilling.

The airborne geophysical survey using the Geotech helicopter borne TDEM system has produced a number of results in the form of conductors. Some of these conductors may be eliminated through surface mapping, if outcropping, as being either graphitic formations or non-economic sulphides. There will remain a number of features which can only be analyzed by drilling, particularly those at depth. The airborne survey was using a GPS based navigation system with UTM coordinates at NAD 83. The locations are therefore comparable with coordinates obtained by ground surveys, the use of which can thus be much reduced.

Respectfully submitted December ]'h, 2005

/ ,

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REFERENCES Balch, S J et ai, 2003: The AeroTEM airborne electromagnetic system, in The Leading Edge, Society of Exploration Geophysicists, June 2003, pp 562-566. (AeroTEM is a system similar to the DreamCatcher)

Chorlton, L.B. 1987. Geological setting of gold mineralization in the western part of the Shebandowan greenstone belt, District of Thunder Bay, Northwestern Ontario; Ontario Geological Survey, Open File Report 5636,348p.

7

Farrow, C.E.G. 1993. Base metal sulphide mineralization, Shebandowan greenstone belt, District of Thunder Bay; in Summary of Field Work and Other Activities 1994, Ontario Geological Survey, Miscellaneous Paper 162, p. 89-96.

Farrow, C.E.G. 1994. Base metal mineralization, Shebandowan greenstone belt, District of Thunder Bay; in Sqmmary of Field Work and Other Activities 1994, Ontario Geologica! Survey, Miscellaneous Paper 163, p. 97-104.

Geology of Ontario; OGS Special Volume 4, Pt 1, 1991.

Harris, F.R. 1970. Geology of the Moss Lake area; Ontario Geological Survey, Geological Report 85.

Osmani, IA 1997. Geology and mineral potential: Greenwater Lake area, West-Central Shebandowan Greenstone Belt; Ontario Geological Survey, Report 296, 135p.

Pye, E. G., and Fenwick, K G. 1964. Atikokan-Lakehead Sheet, District of Thunder Bay; OntariO Dept. Mines, Geol. Compo Series, Map 2137, scale 1 inch to 4 miles. Geology 1962-1963.

Maps Bajc, AF. 1999. Gold grains in till, western Shebandowan greenstone belt northwestern Ontario; Ontario Geological Survey, Preliminary Map P.3417, scale 1:100,000.

Ministry of Northern Development and Mines. 2002. Mining Land Tenure Map, Moss TownShip, District of Thunder Bay; Nov. 7, Plan G-0676, scale 1 :40,000.

Osmani, IA 1995. Geology and mineral potential of the Upper and Middle Shebandowan Lakes Area, District of Thunder Bay; Ontario Geological Survey, Map P.3312, scale 1:20,000.

Osmani, IA 1997. Precambrian geology, Moss Township; Ontario Geological Survey, Map 2624, scale 1:20,000.

8

CERTIFICATE OF QUALIFICATIONS

I, Roger J Caven, of 201-4458 Albert Street, Burnaby, British Columbia, hereby certify that:

1. I am a graduate of the University of Toronto, Faculty of Applied Science and Engineering, Engineering Science Course, Geophysics Option (1967). I have also studied "Geology of Mineral Deposits" at the graduate level, leading to certificates, at the University of Toronto.

2. I am a registered Professional Engineer in the Provinces of British Columbia and Ontario.

3. I am a Fellow of the Geological Association of Canada, and an Active Member of the Society of Exploration Geophysicists, the Australian Society of Exploration Geophysicists, the European Association of Geoscientists and Engineers, the Society of Economic Geologists, and IEEE.

4. I am presently employed as an independent Consulting Geophysicist, with address in Gibsons, British Columbia.

5. I have been employed in my profession since graduation, by Barringer Research Inc as a Senior Geophysicist, and with UMEX Inc as Chief Geophysicist in charge of exploration from 1974, and as a Consulting Geophysicist since 1983.

6. The information contained in this report was obtained through a study of information listed in the references, airborne surveys over the property, as well as having worked extensively in the Canadian Shield, particularly in northwestern Ontario on the Thierry Ni-Cu-PGE deposit near Pickle Lake, on exploration for nickel sulphides and other mineralization in that region.

Dated at Burnaby, British Columbia, this th day of December, 2005.

/ l ,

Roger J Caven, P Eng, FGAC Consulting Geophysicist f

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REPORT ON A HELICOPTER-BORNE TIME DOMAIN ELECTROMAGNETIC

GEOPHYSICAL SURVEY

Pele and Burchell-2 blocks

Ontario, Canada

for

East West Resource Corporation

By

Geotech Limited

30 Industrial Parkway South

Aurora, Ontario L4G 3W2

Tel: 905841 5004

Fax: 905841 0611

www.geotechairborne.com

Email: info@geotechairborne.com

Survey flown in May - June 2005

Project 532

July. 2005

REPORT ON A HELICOPTER-BORNE TIME DOMAIN ELECTROMAGNETIC SURVEY

Pele and Burchell-2 blocks, Ontario, Canada

Executive Summary

lit lh

During the period of May 20 to June 7 ,2005, Geotech Limited carried out a helicopter-borne geophysical survey for East West Resource Corporation over two (2) blocks near Kashabowie, Ontario, Canada.

Principal geophysical sensors included a time domain electromagnetic system (VTEM) and a cesium magnetometer. Ancillary equipment included a GPS navigation system and a radar altimeter. A total of 16761ine-km were flown.

In-field data processing involved quality control and compilation of data collected during the acquisition stage, using the in-field processing centre established at Kashabowie, Ontario.

Preliminary and final data processing, including generation of final digital data products were done at the office of Geotech Limited in Aurora, Ontario.

The processed survey results are presented as total magnetic field, electromagnetic stacked profiles and resistivity - depth sections, for each survey block

Digital data includes all electromagnetic and magnetic products plus positional, altitude and raw data.

2

1. INTRODUCTION

1.1 General Considerations

,~

These services are the result of the Agreement made on April 28 ,2005 between Geotech Limited and East West Resource Corporation, to perform a helicopter­borne geophysical survey over two (2) blocks near Kashabowie, Ontario, Canada.

1676 line-krn of geophysical data were acquired during the survey.

Mr. Robert Middleton acted on behalf of East West Resource Corporation during data acquisition and processing phases of this project.

Survey blocks are as shown in Appendix A. The crew was based in Kashabowie, Ontario for the acquisition phase of the survey, as shown in Section 2 of this report.

The helicopter was based at the Hotel parking lot in Kashabowie for the duration ,h

of the survey. Survey flying was completed by June 7 , 2005. Preliminary data processing was carried out daily during the acquisition phase of the project. Final data presentation and data archiving was completed in the Aurora office of Geotech Limited by July, 2005.

1.2. Survey and System Specifications

Survey blocks were flown at nominal traverse line spacing of 100 metres and 200 metres. Tie lines were flown perpendicular to traverse lines.

Where possible, the helicopter maintained a mean terrain clearance of 85 metres, which translated into an average height of 30 meters above ground for the bird­mounted VTEM system and 70 meters above ground for the magnetic sensor.

The two survey blocks were flown using an Astar B+ helicopter, registration C­GCYE, operated by Expedition Helicopters Inc. Details of the survey specifications are found in Section 2 of this report.

1.3. Data Processing and Final Products

Data compilation and processing were carried out by the application of Geosoft OASIS Montaj and programs proprietary to Geotech Limited. Maps, grids and databases of final products were presented to East West Resource Corporation.

The survey report describes the procedures for data acquisition, processing, final image presentation and the specifications for the digital data set.

3

,....

r

1.4. Topographic Relief

The survey blocks are located approximately IS kilometres south-west of Kashabowie.

Topographically, the blocks exhibit a complex relief, with elevation range from 400 metres to 550 metres above sea level. The blocks intersect several rivers and lakes. Wetlands are also observed. Due to building areas surrounding Burchell Lake, the fli ght path was not properly cover as planned. The properties have road access.

2. DATA ACQUISITION

2.1. Survey Area

Survey blocks and general flight specifications are as follows:

, :;"..rl\ . ~-:lifu lff'-r.'i'i'irft·, "YUj~ ~I·r·(','.. ~.,-,]Ill~k~l,1;fillIl,~~ Line-km

115.0 1183.4 89.3

Pele 1001500

Burchell-2 2002800 73.0 373.1 30.9

Table I - Survey blocks

2.2. Survey Operations

N1

Line number L4010 ·6230 T6900·6960

L7000·7480 T7900·7930

Survey operations were based in Kashabowie, Ontario for the acquisition phase of the survey. The crew was housed at Kashab owie Lodging for the survey period.

2.3. Flight Specifications

The nominal EM sensor terrain clearance was 30 m (EM bird height above ground, i.e. helicopter is maintained 85 m above ground). Nominal survey speed was 80 kmlhour. The data recording rates of the data acquisition was 0.1 second for electromagnetics and magnetometer, 0.2 second for altimeter and GPS. This translates to a geophysical reading about every 2 metres along flight track. Navigation was assisted by a GPS receiver and data acquisition system, which reports GPS co-ordinates as latitude/longitude and directs the pilot over a pre· programmed survey grid.

The operator was responsible for monitoring of the system integrity. He also maintained a detailed flight log during the survey, tracking the times of the flight as well as any unusual geophysical or topographic feature .

4

On return of the aircrew to the base camp the survey data was transferred from a compact flash card (PCMCIA) to the data processing computer.

2.4. Aircraft and Equipment

2.4.1. SurveyAircraft

An Astar B+ helicopter, registration C-GCYE - owned and operated by Expedition Helicopters Inc. was used for the survey. Installation of the geophysical and ancillary equipment was carried out by Geotech Ltd.

2.4.2. Electromagnetic System

The electromagnetic system was a Geotech Time Domain EM (VTEM) system. The layout is as indicated in Figure I below.

VeBaTEM 30 Hz Bas:e Frequency SampJeTImes

I I I I 1.5 'f.T 7 ..... U U

Tx Pulse

LocdOfl of dKI >'wIodOMI tt-- p<ll'1Ill

• fl.. • I I I I I • , • I I •

a S if 5 6 8 1'1 10 11 12 t3 14 15 1'8 7 mseo

TIl PUls~

~ Half-Wavefotm)::::::>-

Figure 1 Figure 2

5

Receiver and transmitter coils were concentric and Z-direction oriented. The EM bird was towed 45 m below the helicopter. Transmitter coil diameter was 26 metres, the number ofturns was 4. Transmitter pulse repetition rate was 30 Hz. Peak current was 200 Amp. Receiver coil diameter was 1.1 metre, the number of turns was 100. Duty cycle was 40%. Peak dipole moment was 424,800 NIA. Wave form - trapezoid. Twenty-five measurement gates were used in the range from 130 J-lS to 6340 J-lS. The transmitter wave form and the receiver decay recording scheme is shown diagrammatically in Figure 2. Recording sampling rate was 10 samples per second.

2.4.3. Airborne magnetometer

The magnetic sensor utilized for the survey was a Geometrics optically pumped cesium vapor magnetic field sensor, mounted in a separate bird towed 15 m below the helicopter. The sensitivity of the magnetic sensor is 0.02 nanoTesla (nT) at a sampling interval of

0.1 seconds. The magnetometer sends the measured magnetic field strength as nanoTeslas to the data acquisition system via the RS-232 port.

2.4.4. AnciliarySystems

2.4.4.1. Radar Altimeter

A Terra TRA 3000ITRI 30 radar altimeter was used to record terrain clearance. The antenna was mounted beneath the bubble of the helicopter cockpit.

2.4.4.2. GPS Navigation System

The navigation system used was a Geotech PC based navigation system utilizing a NovAtel's W AAS enable OEM4-G2-3l51 W GPS receiver, Geotech navigate software, a full screen display with controls in front of the pilot to direct the flight and an NovAtel GPS antenna mounted on the helicopter tail.

The co-ordinates of the block were set-up prior to the survey and the information was fed into the airborne navigation system.

6

2.4.4.3. Digital Acquisition System

A Geotech data acquisition system recorded the digital survey data on an internal compact flash card. Data is displayed on an LCD screen as traces to allow the operator to monitor the integrity of the system. Contents and update rates were as follows:

DATA TYPE SAMPLING

TDEM 0.1 sec

Magnetometer 0.1 sec

GPS Position 0.2 sec

Radar Altimeter 0.2 sec

Table 3 - Sampling Rates

2.4.5. Base Station

A combine magnetometer/GPS base station was utilized on this project. A Geometrics Cesium vapour magnetometer was used as a magnetic sensor with a sensitivity of 0.001 nT. The base station was recording the magnetic field together with the GPS time at 1 Hz on a base station computer.

The base station magnetometer sensor was installed in the motel where the crew was housed in Kashabowie, away from electric transmission lines and moving ferrous objects such as motor vehicles.

The magnetometer base station's data was backed-up to the data processing computer at the end of each survey day.

4. DATA PROCESSING AND PRESENTATION

4.1. Flight Path

The flight path, recorded by the acquisition program as WGS 84 latitude/longitude, was converted into the UTM coordinate system in Oasis Montaj.

The flight path was drawn using linear interpolation between x,y positions from the navigation system. Positions are updated every second and expressed as UTM eastings (x) and UTM northings (y).

7

4.2. Electromagnetic Data

A three stage digital filtering process was used to reject major sferic events and to reduce system noise. Local sferic activity can produce sharp, large amplitude events that cannot be removed by conventional filtering procedures. Smoothing or stacking will reduce their amplitude but leave a broader residual response that can be confused with geological phenomena. To avoid this possibility, a computer algorithm searches out and rejects the major sferic events. The filter used was a 16 point non-linear filter.

The signal to noise ratio was further improved by the application of a low pass linear digital filter. This filter has zero phase shift which prevents any lag or peak displacement from occurring, and it suppresses only variations with a wavelength less than about 1 second or 20 metres. This filter is a symmetrical 1 sec linear filter.

The results are presented as stacked profiles of EM voltages for the gate times, in logarithmic scale.

4.2.1 Resistivity - Depth sections

Lines were subjected to Resistivity - Depth calculation using Geotech proprietary software. Time domain geophysical data from 0.13 milisecond to 6.34 milisecond were used in the calculation.

Two hundred fifty six (256) traverse lines were presented as Resistivity -Depth sections.

4.3. Magnetic Data

The processing of the magnetic data involved the correction for diurnal variations by using the digitally recorded ground base station magnetic values. The base station magnetometer data was edited and merged into the Geosoft GDB database on a daily basis. The aero magnetic data was corrected for diurnal variations by subtracting the observed magnetic base station deviations.

Tie line levelling was carried out by adjusting intersection points along the traverse lines. A micro-levelling procedure is then applied. This technique is designed to remove persistent low-amplitude components of flight-line noise remaining after tie line levelling.

8

The corrected magnetic line data from the survey was interpolated between survey lines using a random point gridding method to yield x-y grid values for a standard grid cell size of approximately 0.2 cm at the mapping scale. The Minimum Curvature algorithm was used to interpolate values onto a rectangular regular spaced grid.

5. GEOPHYSICAL INTERPRETATION

5.1. Pe/e block

The Pele block is composed of numerous tabular, "plate-like" conductors with moderate to strong conductance. The conductors are grouped in conductive trends but individually appear as numerous interrupted segments with varying strike lengths (200 to 600 metres in length).

The conductive trend is associated with the northwest side of a mafic complex that trends north east through the map area. The EM anomalies are coincident with or flank the second derivative magnetic anomalies.

The conductive trend to the north does not have any coincident magnetic response. The EM anomaly to the south lies on the south flank of the second derivative magnetic anomaly.

6.1. Survey Report

The survey report describes the data acquisition, processing, and final presentation of the survey results.

6.2. Maps

Final maps were produced at a scale of I :20,000. The coordinate/projection system used was WGS84, UTM zone 15 north. For reference the latitude and longitude are also noted on the maps. All maps show the flight path trace and topographic base data.

The following maps are presented to East West Resource Corporation on paper as results of the helicopter-borne geophysical survey carried out over the two blocks.

• Total Magnetic Field contours and colour image • Logarithmic scale Time Gates 0.22 - 6.34 profiles

9

7. CONCLUSIONS

A time domain electromagnetic helicopter-borne geophysical survey has been completed over two survey blocks near Kashabowie, Ontario, Canada.

The total area coverage is 188 km'. Total survey line coverage is 1676 line kilometres. The principal sensors included a Time Domain EM system and a magnetometer. Results have been presented as colour contour maps and stacked profiles at a scale of 1 :20,000.

Final data processing at the office of Geotech Limited in Aurora, Ontario was carried out under the supervision of Andrei Bagrianski, Data Processing Manager.

Geophysical interpretation was made by Roger Barlow, Geophysicist.

A number of EM anomaly groupings were identified. Ground follow-up of those anomalies should be carried out if favourably supported by other geoscientific data.

Respectfully submitted,

Marta Orta, Geotech Limited

10

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Mining land Tenure Map

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lam! Tonurc

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"i-':~~:::2 [I] '¥""' .... .. <> ~ II! -:-.~ . E9 l .......... ..,

~ ,' .. ~ "'~ .. ,..., ........... .. EJ ..... - ,,- ... --~

LAND TENURE WITHDRAWALS

l ii~~~:il .......... - ..... .... -~ . ..... , ...... , .. _ ' •.. ---~.-....... -- ~.:::~:.-.::::

::~ =:;~=~ w'~ ..... . .... __ ....

3111 3

li i.~~~~i:iy l IMPORTANT NOTICES

Scale 1:50,000

LAND TENURE WITHDRAWAL DESCRIPTIONS

§ -"' U> I

5378500-

5378000-

5377500 -

5377000-

5376500 -

5376000-

5375500-

5375000 -

5374500-

5374000-

i ~ I I

3013427

30)3428

3013429

5373500- _"t..-------- - --e::

5373000-

5372500-

~ U>

I

3009584

1246771

3013430

3019965

~ ID

I

3009583

3001649

124677 0

3013431

i I

3010481

1246767

1246769

14824 3019966 3019967

3020000

3013432

SCALE 1 : 20 000

"'& E3 d :.to (mcl,'l) 1000 .Qoo

~ i i I I I

- 5378500

- 5378000

- 5377000

- 5376500

- 5378000

-5375500

- 5375000

- 5374500

- 5374000

ROGER J CAVEN, P ENG for

CANADIAN GOLDEN DRAGON RES LTD TOTAL FIELD MAGNETIC SURVEY

TILLY TOWNSHIP CLAIMS Thunder Bay Mining Division

Th under Bay, Ontario

Dote: Dec 7 ,2005 MAP: NTS Drown by: R J Coven Map: NAD 83

-~ I

5378500-

5378000-

5377500- 3013427

5377000-

5376500-

5376000-

5375500-

5375000-

5374500-

5374000-

5373500-

5373000 -

5372500 -

I ~ I I

3009584

3013428

1246771

3013430

3013429

30199 65

EM Profiles , pV/A/mo4 O.22ma, 0.5 pV/A/m04/em log10 O. 3Oma, 0.5 pY/A/m04/em log10 0.41ma, 0 .5 pV/A/m04/em log10 0.57ma, 0.5 pY/A/mo4/em log10 0 . 81ma, 1.0 pv/A/m04/em 1.13ma, 1.0 pV/A/mo4/em 1.6Oma, 1.0 pV/A/m04/em 2.24mB, 1.0 pv/A/mo4/em 3.18ma, 1. 0 pV/A/m04/em 4.46ma, 1.0 pV/Aim04/em 6.34ms, 1.0 pV/A/m04/em

3010481

3009583

1246767

3001649

1246770

1246769

3013431

4824 3019966 3019967

3020000

30 13432

SCALE 1 : 20 000

5%-J E3 d 500 fm.!,U) 1000 ",pn

wcs 84, Zone 15

2000

i I

-5378500

-5378000

- 5376500

-5376000

-5375500

-5375000

-5374500

ROGER J CAVEN, P ENG fo r

CANADIAN GOLDEN DRAGON RES LTD EM SURVEY PROFILES MAP

TILLY TOWNSHIP CLAIMS Thunder Bay Mining Division

Thunder Bay, Ontario

Dote: Dec 7,2005 MAP: NTS Drown by: R J Caven Mop : WGS 84 , Z 15

5378500-

5378000 -

5377500-

5377000-

5376500-

5376000-

5375500-

5375000-

5374500-

5374000-

5373500-

5373000-

5372500-

3013427

30 13428

3013429

~ to

I

Combined Magnetics and EM

~ I

3010481

3009583

3009584 1246767

3001649

124677 1 1246770

1246769

3013430 1H--------tIJ

3013431

30 19965 14824 30 19966 3019967

3020000

SCAlE 1 : 20 000 ~oo (me"") 1300 '000

~ ~ I I

-5378500

-5378000

-5376500

-5378000

-5375500

-5375000

-5374500

ROGER J CAVEN. P ENG for

CANADIAN GOLDEN DRAGON RES LTD TOTAL FIELD MAGNETIC SURVEY

TILLY TOWNSHIP CLAIMS Thunder Bay Mining Division

Thunder Bay. Ontario

Da te: Oec "1,2005 Drown by: R J Coven

MAP: NTS Mop: ~JAD 83

M8000E

5378000N

5377000N

5376000N

5375000N

5374000N

5373000N

5372000N

5371000N ,

6480aOE

UTM Zone 15 1000m grid

649000E

649000E

650000E 651000E 652000E 65300liE

-3009584

£50000E 651000E 652000E 653000E

Those wishing te stt! ka mming clalrrs shol!ld consull with the Provlne;I£l1 Min ng RaCOrd8ffi< Office of the rJllnlstry of Northern Deve loprranl £I nd Mines for aCld ltlona I I,jorrrotion on the ~t1ilus 01 the 18 nds !Shown hereon.

Th is rmp Is not Inlended for navigational, survey, cr Iflnd title dehnmination purposes as the micrrralion shown on th is rn:!p Is comp iled from VIl riOUS sources Gorl'llieleness and accuracy am not 9 uEiranteed . Addl110na I

mfo rlTliil lon m:lY also be obt~Hned through the local Land TIII~5 or Re!:lIstry Off ice, or the Mlnls;ryof Nalura l Resources,

T he Inlo rrrlil tion shown 13 dcrrved from dig ItlJl d:3t 9 a"'3llablo In ' hIS Provinel:a l Mining Rec:::ome J"O ' Oflhl:'ll t hE! tirm 01 download Inc lrom Ihe Mlnlslry 01 Norlh8fn Ds\lftloprranl and Mines \'I(8b Site ,

I ! I

~\ I - - ..

657000E

£54000E 655000E £56000E 657000E £58000E

General Informat ion and Limitations

Contac t I nforrrWlnn

Provlr,c lal Mining Rec::HtJers' DUlco

WlIl6t Groen MU'cr Center 933 Rarrssy Lake Road

Sudbury ON P3E 685

Te ll Free Ma p Datum: NAD B 3 Te l' 1 {BB9) 41 5-!¥l45 exl 5742PmjAntnn· IITM (:i degree)

Fox'l (877}67Q.1444 Topcgr.1phlc D~la Source. Land InfofITliltlor; e n-II rio Min ing land Tenure Source Provincial MlnlnQ R8corder's OffICe

Home Page . \WIW.mndmgovon.cafMNDMfMlr'llESfLANDS/mrsmnpge.hlm

659000E

5374000N

············f .. ·f]Wc···c .... 5373000N

"T-';-----\,--- 5371000N

6600aOE 661000E

T his TI!lp mEly not show unreg Iste rad 1:3 nd te n ure ~ nd Inte rests In la nd Irc ludlng cerb ln ps tents, IBaeae,

BEl3crnonti3. right of \OJiJy:3, f leod ing r ig hi s, IlcomBs, o r olhe r fo rrT"B of d lsposltton of nghb ilnd Intemst from th"

Grown , Also c~rti!::ln I03mJ l(!Inu re ilnd lilnd uses thi:lt rill'i!iirK;t or proh ltli l ffl'Je iIl'nfry to ~t!lkt!. minin g Clil lrn> may not 018 Illustrated ,

'I

ONTA~IO CANADA

MINISTRY OF NORTHERN OEYEL~PM ENT AN D MINES

PROVINC IA L MINING RECORDER'S OFFiCe

Mining Land Tenure Map

Date I Time of Issue: Mon Oct 24 19:03:35 EDT 2005

TOWNSHIP I AREA PLAN TILLY LAKE AREA

ADMINISTRATIVE DISTRICTS I DIVISIONS

Mining Division Land Titles/Registry Division Ministry of Natural Resources District

Thunder Bay THUNDER BAY TH UNDER BAY

TOPOGRAPHIC

o [J L_~J

f~'

::~~-1";:~·

i " \''''''''-

Administrative 80lJndaries

Coooesshm, Let

Provincial Pari<

Indien ~e,serve

C liff, Pit & Pile

CClotoUf

II.1lne Shaits

Min;: Headframe

RaHway

Roa d

Tmii

Nalul ,al Gas Pipeline

Ulilil!!:!S

T<lwer

100m orn S C1!l ic.J 1 ;2QOOO

I : £5 DOD i

Land Tenure

Freehold Patent

Surface And Mmmil Rigll lS

Surface Rights Onty

~1lnlng Rights a,ly

Lea5ehold P.t:rlenl

~ Surface And Mln111<;1 Rights

~ Surface Rights Only

~ 1I.~lning Rights O,ly

Licence of Occupatlon

Uoo!> Not Spcdlled

Surface And Mining R19hts

Surface Rights Onl)'

,vlining Right!; Only

:Jt'der In Couflci l {Not open for staking,

flPUi I Nater Power Leas-a Agreemeilt

1--- -- - I I 1234567 J L _____ ...l

1 '7~~'::-- -;::,/ t t;";-:123456i« t t:::~ ... ~,_ '::'<':: ~

Mmir:~ CUiini

Flied Only /vl nlllg Cl~lrtl5

LAND TENURE WITHDRAWALS ~'­I. 1234 Area51Ju'l thdrS'Nn ffOm Dh,posifloo

Min ing A:IS Wltl1,arllW.ui ' fypes

Surfaar k1C1 Minlf1g Rlg;,ls lffllJ1.drawrr

SuriOirn ffigl1O;;Only WilMfil ,1'J1

l'Wn1l1l] Ri-Jhti. OnlyWihdm'MI

W"sm W", W"rn

Order In Cmmdl W1 'hdrllwal Typ€s Str1aur h nd :r.4i;)fI'Ig ~t1!s VlilMrOlwn

S ... 1;l:C" R'1l!"t1!-r. 'In?j WiU1(!T.:Iwn

'Mllnll Ri~h\t. Ont)(\''frh.;Jr;,'M1

r ' .. .. "1 ~ Ns ~ l.",~" .. ~ .. ,,:.... i

IMPORTANT NOTICES

;Z,1km

LAND TENURE WITHDRAWAL DESCRIPTIONS !dentlfl(H Type Det. 003cnptlcn

W,rn Jan 1,2001 400FE ET 6 110Rt: LlNE RES::::RVED FROM DIGPOS IT I ON FI LE 160700+

.-10 co

I

5378500 -

5378000 -

5377500 -

5377000 -

5376500 -

5376000-

5375500 -

5375000 -

5374500 -

5374000 -

5373500 -

5373000 -

5372500 -

301 3427

~ co I

3013428

3013429

~ I

~ 10 CO

I

3009584

"\24677 1

30 13430

3019965

~ 10 CO

I

~ 10 CO

I

3009583

3001649

124677 0

3013431

~ I

3010481

1246767

1246769

14824 3019966 30 19967

3020000

3013432

SCALE 1 : 20 000 500 0 500 (met res) 1000 E3 E3 E3 I I

1500 I

i I

2000 I

~ I

~ CO 10 CO

I

8 ~

I

203111 3

ROGER J CAVEN, P ENG for

- 5378500

- 5378000

- 5377000

- 5376500

- 5376000

- 5375500

- 5375000

- 5374500

- 5374000

CANADIAN GOLDEN DRAGON RES LTD TOTAL FIELD MAGNETIC SURVEY

TILLY TOWNSHIP CLAIMS Thunder Bay Mining Division

Thunder Bay, Ontario

Date : Dec 7,2005 I'vIAP : NTS Dra wn by: R J Caven Ma p: NAD 83

8 o .-10 co

I

5378500 -

5378000-

5377500 -

5377000 -

5376500 -

5376000-

5375500 -

5375000 -

5374500 -

5374000 -

5373500 -

5373000 -

5372500 -

o ~ .-~

I

3013427

8 ~ co

I i

I

~ co I

~ co I

3009584

3013428

124677 1

3013430

3013429

3019965

EM Profiles, pV/A/m*4 . 0.22ms, 0.5 pV/A!m*4/cm log10 0.30ms, 0.5 pV!A/m*4!cm log10 0.41ms, 0.5 pV!A/m*4!cm log10 0.57ms, 0.5 pV!A/m*4!cm log10 0.81ms, 1.0 pV!A/m*4!cm 1. 13ms, 1.0 pV!A/m*4!cm 1.60ms, 1.0 pV!A/m*4!cm 2.24ms, 1.0 pV!A/m*4!cm 3.18ms, 1.0 pV!A/m*4!cm 4.46ms, 1.0 pV!A/m*4!cm 6.34ms, 1.0 pV/A!m*4!cm

3009583

3001649

1246770

3013431

8 ~ co

I i

I

3010481

124 6767

1246769

~ 10 co

I

014824 3019966 3019967

3020000

3013432

SCALE 1 : 20 000 500 0 500 (metres) 1000 E3 E3 E3 ! I

WGS 84. Zone 15

1500 I

8

~ I

2000 I

8 10

~ I

8 ~ co

I

~ co I

- 5378500

- 5378000

- 5376500

- 5376000

- 5375500

- 5375000

Q 31113 ~o

- 5374500

ROGER J CAVEN, P ENG for

CANADIAN GOLDEN DRAGON RES LTD EM SURVEY PROFILES MAP

TILLY TOWNSHI P CLAIMS Thunder Bay Mining Division

Thunder Bay, Onta rio

Dote: Dec 7,2005 MAP : NTS Drown by: R J Coven Mo p WGS 84. Z 15