52H04NW2003 2.18680 TIB LAKE 010

REPORT OF STRIPPING WORK CONDUCTED ON THE

TIB LAKE PROPERTY

FOR HOUSTON LAKE MINING INC.

Armistice and Tib Lake Map Sheets

Thunder Bay Mining Division

2. 1

DUPLICATE

My 18, 1998Andreas Lichtblau

INTRODUCTION

The Tib Lake Property consists of approximately 1632 hectares, located ~10km west of the producing Lac des Iles Palladium Mine, north of Thunder Bay, NW Ontario. The property straddles Map Sheets G-0694 (Armistice Lake) and G-2660 (Tib Lake), within the Thunder Bay Mining Division (Fig. l, Claim Map).

The property covers the southern portion of the Tib Lake Gabbro, and completely surrounds the historic Kuhner Occurrence (Fig. 2), where 0.39 g/t palladium and 0.19 g/t platinum over 2.4m were recovered by government sampling (Smith and Sutcliffe, 1986). Drillhole TL95-09 intersected an estimated true width of 13.06m running l.07 g/t Pd.

ACCESS

The property is reached via Avenor's Dog River/Matawin logging roads, branching off Hwy.# 17, 10km west of Raith. The East Dog River is reached approximately 50km from the highway. A major wash-out precludes driving east of this point.

CURRENT WORK PROGRAM

The work program consisted of backhoe stripping and washing of outcrops on Claim TB 1194687, between July 14 and 15, 1998. The crew comprised:

Andreas Lichtblau, GeologistRR#1, Nolalu, Ontario, POT 2KO (807)473-8172

Conrad Waibel, Prospector1460 Oliver Rd, Thunder Bay (807)344-0443

Andrew Bonham,c/o Clark-Eveleigh Consulting1000 Alloy Dr., Thunder Bay, Ont., P7B 6A5 (807)625-9291

Dale Methotc/o Rene Methot Excavating (1994) Ltd.RR#12, 1420 Dawson Rd., Thunder Bay,P7A 8A4 (807)767-2689

EQUIPMENT

Stripping was accomplished using a wide-track mounted 320B(L) Cat backhoe equipped with a 4' bucket. Washing proceeded with a Honda 5.5HP pump and 2" fire hoses.

GENERAL GEOLOGY

A report on the results of Prospecting the area has been submitted under separate cover. The Tib Lake Gabbro is a late Archean, funnel-shaped gabbroic intrusion. In-situ differentiation of probably two distinct magma pulses has led to the formation of the Lower and Middle Zones, in which pyroxene cumulates near the base grade upward into magnetite-rich gabbro near the top. The Kuhner Occurrence is situated within ~200m of the base of the Lower Zone, on the east side of the East Dog River (Fig. 2).

A dextral strike slip fault has been interpreted (Smith and Sutcliffe, 1986) as running N-S along the East Dog River: the west side is displaced north by -400m. Prospecting discovered the Fireweed Showing on the west side, ~400m North of the interpreted base of the Lower Zone.

FIREWEED SHOWING

The Fireweed Showing (Fig. 3) is located a distance of 250m at a bearing of N1750E from a point on the main E-W access road, 135m due west of the bridge (now washed-out) over the East Dog River (see Fig.l). The exposed area is underlain by the Lower Zone of the Tib Lake Gabbro, comprising very coarse to fine grained, brown to grey weathering, orthopyroxene-biotite- magnetite bearing gabbro. Interest in the area is due to the fracturing and alteration of the host rock. Trace to minor (^I'J'o) sulfide minerals (pyrrhotite^halcopyrite) are commonly found as sub-mm specks. Pyrite was noted on fracture planes. Two grab samples (#555838 Se. #555839, see Fig. 3) were taken of different lithologics. Aluminum tags with the sample numbers were nailed into the rock to identify sample locations.

555838 coarse grained, dark-greenish, band of pyroxene-rich gabbro; very magnetic; band is metre-thick and subparallel (@ N1050E7600E) to inferred primary layering (@ N0900E); nil sulfides; biotite present as medium grained alteration (?) mineral

555839 brownish to amber-coloured weathering on medium grained, feldspar-rich gabbro; very magnetic; no obvious biotite; trace pyrrhotite

Samples were submitted to Chemex Labs., Thunder Bay, Ontario, for analysis for Pt, Pd, Au, Cu, Ni, Co. Results will be forwarded as soon as received.

CONCLUSIONS AND RECOMMENDATIONS

The altered nature of the gabbro is encouraging for exploration for disseminated/cumulate Ni, PGE-bearing sulfides: talc alteration is present to a large degree at the nearby Lac des Iles Mine of North American Palladium. This zone is perhaps too high above the base of the gabbro body to correlate h with the Kuhner Showing, but the presence of more than one, perhaps stacked, zones cannot be precluded.

Picket line grids in the area were destroyed during logging; a program of linecutting (NS lines) through the clear-cut of the present claim should be initiated followed by geological mapping and geophysical surveying (IP and Mag).

REFERENCES

MacDonald, JA., 1986, "The Platinum Group of Elements in Ontario", OGS Open File Report 5681

Smith, AR and RH Sutcliffe, 1986, "Geology of the Tib Gabbro, Lac des Iles Area, District of Thunder Bay, in Summary of Field Work and other Activities, 1986, ed. PC Thurston et al.

Respectfully submitted,

Andreas Lichtblau

STATEMENT OF COSTS

STRIPPING

Charges from R. Methot: 6Q^o of total Invoice(S957hr stripping; STS/hr float)

WASHING

Andrew BonhammileagePump and hose rentalFuel

@ 5210/day l day@ S0.357km 300km@ S2007day l day

1,220.00

210.00105.00200.00

30.00

SUPERVISION A SAMPLING

Andreas Lichtblau Conrad Waibel mileage (one day) Assays

REPORT

Andreas Lichtblau Drafting/photocopies/supplies

@ S3507day l day@ S200;day l day@ S0.357km 300km@ S30 each 2

@S3507day 1.5 day

350.00200.00105.0060.00

525.0050.00

TOTAL S 3,055.00

^m^m^M

I232I2O

HOUSTON LAKE MINING INC.

TIB LAKE PROJECT

Trenching Program

IIIIhnnM*. IS

KUHNER OCCURRENCE

j- BUCK LAKE!HfTRUfi

PROTEROZOIC

fcififfiff diabase

ARCHEAN

Late GranitoidaL"** 4 biotite granodiorite to tonaMe H555-3 btottte-nomWende tonalite

Late Mafic to Ultramafic Rocks|^j"et*| mafic dikesJHHki ultr*jn*flcl***'**1 gabbro to gabbronorite

jp hornblende gabbro, hornblenditegg hornblende dioriteEarly OranttoW Rocks"3 foliated to gneissic biotite tonaliteSupracrustal Rocks

mafic metavotcantcsmetaaedknenta

faottP6E occurrencecontact

breccia zoneroad

FIG. 2 . Location Map of the Tib Lake Area

(from OGS Open File Report 5681)

ofO

r**'

\, "m i M 11111111" i u y iZ! i

0L

HOUSTON LAKE MINING INC.

TIB LAKE PROJECT

Trenching Program

Scale: j Date:1:200 l July 1998

Fig.-

Chemex Labs Ltd.Annual Crtemutt * G*ochsmW9- flcgMwid Aaatyeis

5*75 Timbertea Blvd.. Mississauga Ontario. Canada L4W 2S3 PHONE: 90S 624-38C6 FAX: 905-624-6163

To: HOUSTON LAKE MIMING INC.

2692 WHITE ST VAL CARON. OH P3M 182

Proisct.Coremwrts: ATTN: GRAYME ANTHONY

ToMPagw :1

Invoice No. : 19625:P.O Hunter :Account :QHJ

CERTIFICATE OF ANALYSIS

SAMPLE

555838 555839 555840 555841 555842

555843 555844 555845 555B46 555847

5558-48 555849 555BSO 555851 5558S2

555853

PREP CODE

20 S 20S 20S 205 20 S

J 22 6 22* 23C

r! 22 C

226

20Sj 226 205; 224 205: 22 C 20 S1 22 C 205 22C

20S 205 20S 20S 20S

2O5

22*"

226 224 226 22C

226

Au ppb AFS

24 2

* 42

< 2 2

16 8

le6 4 2 fi B

e

Pt ppb AFS

< 5< 5 < 5

< 1O < 5

< S S

10 15

< 5

20< 5 < S 15 20

10

Pd ppb AFS

< 2 < 2 < 2 i 4 < 2

< 2 < 2 10 84

40 < 2 < 2 26 2*

14

CUppm

67ae3B 73 88

39 153 180 370 46

56 130 (6

130 126

73

Nippm

82 B

47 71 10

11 1S1 1S3 520 186

195 128 91

250 225

ISO

Co ppm

25 44 18 20 30

36 29 34 46 30

27 IB 15 33 15

22

A9825333

v

CERTIFICATION:

Ontario and k***Deration of Awestment Work Performed on Mining LandMining Act, Subsection 66(2) and 66(3), R.S.0. 1990

Transaction Number (office use)

Assessment Files Research Imaging

52H04NW2003 2.18680 TIB LAKE 900

iubsectlons 65(2) and 66(3) of the Mining Act. Under section 8 of the Mining Act, ssesment work and correspond with the mining land holder. Questions about this Drthem Development and Mines, 3rd Floor, 933 Ramsey Lake Road, Sudbury,

Thunder Bay Mining Division

Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. J U L 2 O 1998^ -P^peorprtnunin, 2.18680 RECEIVED

1. Recorded holder(s) (Attach a list if necessary)Name

r -rC,fentNun*er

Addrew Telephone. N

Fax Number

Name Client Number

Address Telephone Number

Fax Number

2. Type of work performed: Check K) and report on only ONE of the following groups for this declaration. ^ t u-: i. t: ~..-.~.~ ./Physical: drilling stripping,Geotechnical: prospecting, surveys, assays and work under section 18 (regs) trenching and associated assays

Rehabilitation

Dates Work From

Perfofmed

Global Positioning System Data (if available)

Resident Geologist District

Please remember to: - obtain a work permit from the Ministry of Natural Resources as required;- provide proper notice to surface rights holders before starting work;- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are linked for assigning work;- include two copies of your technical report.

3. Person or companies who prepared the technical report (Attach a list if necessary)Name Telephone Numbet

CSoSAddress

3.VCQFax Number

Name Telephone Number

Address Fax Number

Name Telephone Number

Address Fax Number

4. Certification by Recorded Holder or Agentl, CL pyrvr*vC ^s/CX.!^ a^ \______, do hereby certify that l have personal knowledge of the facts set forth in

(Print Name)

this Declaration of Assessment Work having caused the work to be performed or witnessed the same during or after its completion and, to the best of my knowledge, the annexed report is true.

0241 (03/97)

8. WOtk to b* MOonUd and distributed. Work can only be assigned to claims that ara contiguous (adjoining) to the r-lning land where work was performed, at the time work was performed. A map showing the contiguous link must accompany thia form.

Mining Clala Maher. Or it work was done on other eligible mining land, show in this column the location number indicated on the claim map.

eg

eg

eg

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

TB 7827

1234567

1234568

j (^465?-12 15250

Coltnm Totals

i/ C. OY\raA VJceligible under

(Print nusubsection 7 (1) of the Ass application to the claim

where the work was done.

Mabee of Clade Oftita. For other doing land, Hat hectares .

16 ha

12

2

Ife

IZ

Vain* of work performed onthis claim or other mining land.

926,825

0

$ 8,892

3.055

3/055"li \

X.tbe*4 , do

Value of work applied tothis claim.

2.1N/A

924,000

$ 4,000

~

3,055"

5,055

Vain* of work assigned to other mining claims.

868i524,000

0

0

3,OSS-

3,05-5

Beak. Value of work to be distributed at a future date

S2,825

0

$4,892

-

-

here!: r fte\fe49^B4l\^R wofe work credits are

1 Battw) l

essment Work Regulation 6/96 for as ignmcHjlfj:^ aoifflOfluous fclaims or for

f SCIENCE ASSESSMENT 1

Signal of Holder^r Agefit Aut^o*izsd-in Date

Instraotion* for eattlng back credits that are not approved.

Some of the credits claimed in this declaration may be cut back. Please check (/) in the boxes below to show how you wish to prioritize the deletion of credits:

O l. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated.

O 2. Credits are to be cut back starting with the claims listed last, working backwards; or

D 3. Credits are to be cut back equally over all claims listed in this declaration; or

-i 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe):

Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first,

followed by option number 2 if necessary.

For Office Ose Only Thunder DBJ Mining Division

JUL 2 O 1998^

RECEIVED

Received Stamp Deemed Approved Date Date Notification Sent

OntarioMinistry of Ministers du Northern Development Developpement du Nordand Mines et des Mines _ - _ _

GeoscleiiCe Assessment Office933 Ramsey Lake Road

December 1, 1998 6th FloorSudbury, Ontario

Conrad Waibel P3E 6B5 OBONGO PRECIOUS METALS INC.#4, 409 EGAN STREET Telephone: (888) 415-9846 THUNDER BAY, Ontario Fax: (877) 670-1555 P7A-2Z2

Visit our website at:www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2.18680

Status Subject: Transaction Number(s): W9840.00541 Approval After Notice

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact Lucille Jerome by e-mail at lucille.jerome@ndm.gov.on.ca or by telephone at (705) 670-5858.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 13140

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.18680

Date Correspondence Sent: December 01,1998 Assessor:Lucille Jerome

Transaction First ClaimNumber Number Township(s) l Area(s) Status Approval Date

W9840.00541 1194687 TIB LAKE Approval After Notice December 01,1998

Section:10 Physical PSTRIP

Assessment work credit has been approved as outlined on the Declaration of Assessment Work Form that accompanied this submission.

Correspondence to: Recorded Holder(s) and/or Agent(s):Resident Geologist Conrad WaibelThunder Bay, ON OBONGO PRECIOUS METALS INC.

THUNDER BAY, Ontario Assessment Files Library Sudbury, ON

Page: 1Correspondence ID: 13140

V' -as

REFERENCES

FLOODING

FLOODING OF THE DOG RIVER AND BUCK LAKE TO CONTOUR ELEVATION 107.0 , SURVEYED BY R. S. KIRKUP O.L.S- 1948. PLAN N9. R.25-25. CONTROLLED BY THE DEPARTMENT OF LANDS AND FORESTS. 20 FEB. 1962. FILE; 139099.

FLOODING ON DOG RIVER AND GALL LAKE TO AN ELEVATION OF M.O ft. ABOVE THE NATURAL HIGH WATER MARK, SURVEYED BY J.C. KIRKUP O.L.S. 1952. PLAN N?. S. 8-16.-GRANTED TO THE GREAT LAKES PAPER CO. LTD. LO. 6977. FILE' 14 6074.

SURFACE RIGHTS WITHDRAWN FROM STAKING ORDER # WNCR 09/83

NOTICE:The information lhat appears on this map has been compiled from various sources, and accuracy is not guaranteed. Those wishing lo stake mining claims should consult with the MINING RECORDER, Ministry of Northern Development and Mines, for additional informaiion on the status of the lands shown tiereon.

900 OO'OO"ARMISTICE LAKE AREA-o-ew G-694

)* ' 1232122(itr*sooUt5ii*4*~ — — i — -L-v

I232J201232444

232741 i

890 45'00"

49 0 07'30"

59 58 5756'

55 5490000'00"

53 52

SENGA LAKE AREA

51

G-758

50 49 4847' 46'

-490 I5'OO"

14

13'

12

10

09

O8

O

amCO

mCO

m

o i-s]GO (S)

DEC

——49 007'30'

890 45'00"

REFERENCES

TOPOG RAPHY

LAKES, RIVERS, ETC., FROM FOREST RESOURCES INVENTORY SHEET NE, 492 894.

SURVEYS

TRAVERSE OF DOG RIVER , BUCK CREEK AND BUCK LAKE^BY R.S. KIRKUP O.L.S. 1948. PLAN N2. R, 25-25.

2nd. BASE LINE AND MERIDIAN LINE (SOUTH OF 2nd. BASE LINE) BY PHILLIPS AND BENNER O.L.S. 1921. FIELD NOTE BOOK N.2. 2476.

MERIDIAN LINE NORTH OF 2nd. BASE LINE BY PHILLIPS AND BENNER O.L.S. 1922 FIELD NOTE BOOK NS. 2481.

LEGENDHIGHWAY AND ROUTE No OTHER ROADS TRAILS SURVEYED LINES:

TOWNSHIPS, BASE LINES, ETC.LOTS, MINING CLAIMS, PARCELS, ETC

UNSURVEYED LINES:LOT LINESPARCEL BOUNDARYMINING CLAIMS ETC.

RAILWAY AND RIGHT OF WAY -* UTILITY LINES NON-PERENNIAL STREAM FLOODING OR FLOODING RIGHTS SUBDIVISION OR COMPOSITE PLAN RESERVATIONS ORIGINAL SHORELINE MARSH OR MUSKEG MINES TRAVERSE MONUMENT

Cf 7 "l l:

DISPOSITION OF CROWN LANDS

TYPE OF DOCUMENT SYMBOL

PATENT, SURFACE ft MINING RIGHTS ................... 0.SURFACE RIGHTS ONLY.—,^..............m O, MINING RIGHTS ONLY .....,................... Q

LEASE, SURFACE St MINING RIGHTS-..-..-.—....—- M" .SURFACE RIGHTS ONLY.———................... H" .MINING RIGHTS ONLY. -.-——.-.—.......,— y

LICENCE OF OCCUPATION .._......_..............— TORDER-IN-COUNCIL .,..-...,,,.-,-..-.,,,,^.,,.....,.— OCRESERVATION ___,..................................... ©CANCELLED __..,................................,— ®SAND ft GRAVEL ._......._........................— (J)

NOTE: MINING RIGHTS IN PARCELS PATENTED PRIOR TO MAY 6. 1913, VESTED IN ORIGINAL PATENTEE BY THE PUBLIC LANDS ACT. R.S.O. 1970. CHAP. 3*0, SEC. 63. SUSSEC 1.

SCALE: 1 INCH * 40 CHAINS

1000 2OOO 4000 60OO 8000

06* O 200ETRES

10OO(l KM)

2000(2 KM)

TIB LAKEM.N.R. ADMINISTRATIVE DISTRICT

THUNDER BAYMINING DIVISION

THUNDER BAYLAND TITLES/ REGISTRY DIVISION

Ministry of Ministry ofNatural Northern DevelopmentResources and Mines

Ontario

DiU OCTOBER, 1986. ( r

G-2660

52H04NW2003 2.18680 TIB LAKE 200