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Information Memorandum

Information Memorandum

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Published by DD2005

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Published by: DD2005 on Oct 24, 2009
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08/10/2012

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Sector: Gold ExplorationCanada
12-Month Share Price Performance
Price: CAD 0.40FD SharesOutstanding:86,009,740Market CapFD:CAD 34.4 MMTicker: EXS-VMarket: TSX-Venture
Exploring for gold and base metals in the Abitibi Greenstone Belt (ABS)
 
Authorised and Regulated by the Financial Services Authority
Date: 15 Oct 2009
INFORMATION MEMORANDUM
HIGHLIGHTS
Timmins Porcupine West Property
Recent acquisition of 1,930 ha Timmins Porcupine West Property immediately to theeast and on strike with the Lakeshore West Timmins properties. This property hasbeen explored since 1927 by Dome Mines, Teck and Cameco but only down to the350 metre level. 111 drill holes defined the presence of a large gold system, similar tothe Lakeshore and West Timmins discoveries, occurring along a major deformationcorridor traced by drilling for more than 2,000 metres along strike, up to 1,500metres wide and more than 600 metres deep.This property overlays a very large porphyry located in a splay fault corridor wheremost of the Timmins mines have been found. This porphyry appears to be muchlarger than that supporting the recent
Lakeshore
and
West Timmins
(Rusk Zone)discoveries (e.g. 83m at 12.75g/t Au). The recent merger of the two companies haveresulted in a combined value of Can$1bn+.Thunder Creek (West Timmins) encountered high grade gold bearing zones at vertical depths greater than 500 metres highlightedby 83m at 12.75 g/t Au from 889.4m to 972m in depth. None of the drilling at Timmins Porcupine West has gone as deep with anaverage hole depth of 300m. The target model is the Hollinger-McIntyre-Coniaurum (HMC) system that produced over 30,000,000ozs gold.
Eastford Lake Gold Property
Location 90 kms east of the Timmins-Porcupine Mining Camp. This3,100 ha property has been previously explored by KenncoExploration and Denison Mines. Recent drill results from the Lynxzone include 16.6 g/t gold over 12m and 142.6g/t over 3m. Afollow up drill programme is planned.
PG-101 Gold Property
2,386 ha property adjacent to the east boundary of St
Andrew Goldfield‟s
Holt McDermott Mine Property. Recentassay results from a 5 hole drill programme (974m) included52g/t over 3m. Highway runs through east side of theproperty.
Other Properties - OntarioKidd Creek Township
Cu-
Zn Property, 1.5 kms south of Xstrata‟s Kidd Creek Mine.
Montrose
. 3,432 ha property 10 kms west of Northgate‟s Young Davidson Mine. Hi
gh grade historic grab samples.
 
 
Authorised and Regulated by the Financial Services Authority
 2Date: 15 Oct 2009
INFORMATION MEMORANDUM
CORPORATE STRATEGY
 
Focused exploration strategy on the Timmins Gold Camp.
 
Test the deeper levels at Timmins Porcupine West.
 
Follow up drilling at PG
101.
 
Establish new drill targets at Eastford Lake.
 
Raise development funding via warrant exercise and private placement.Property Visit Report
Following a recent property visit, I conclude that ExplorResources (EXS-V) has the potential to join the historiclegendary mining companies in the AGB. The gold reservepotential of the recently acquired
Timmins PorcupineWest Gold Project (TPW),
together with
 
the
EastfordLake
and
PG-101
properties comprise a portfolio morecommonly owned by the majors. The company deserves tobe compared to its immediate neighbours to the west,because the TPW property appears to overlay a goldporphyry significantly larger than that being developed byLakeshore Gold and West Timmins Mining.EXS has a dominant land position along the AbitibiGreenstone Belt
(„AGB‟)
, a geologic phenomenon which hasproduced over 180,000,000 ounces of gold since 1910, andcentred around the mining town of Timmins, Ontario. Thereis strong evidence that this extraordinary production historywill continue for many years yet due to the discovery of awhole new gold bearing
 „
camp
‟ 
at depth west of theMattagami River fault (see Map - Appendix 1) by LakeshoreGold and West Timmins Mining. Lakeshore is in the processof commissioning the West Timmins Mine project via theacquisition of Holmer Gold Mines. Reserves are stated as830,000 ozs (probable). This 1,000 tonne/day project hasan IRR of 38% at $600/gold. The mine is due to come onstream in Q1 2010.EXPLOR Resources has a number of 100% owned propertiesalong the AGB. The most prospective in my view, on thebasis of historic work on the property and the potentialindicated by 130 drill holes, is the 100% owned TimminsPorcupine West property. This property immediately adjoinsthe West Timmins Mining claims and runs north easterly toand beyond the influential Mattagami River Fault. This1,900 ha gold property appears to immediately overlay thedeeper discoveries to the west of Lakeshore and WestTimmins.The Timmins Porcupine West claims were extensively drilledby a number of mining companies in the past down to the400 metre level. In 1984, Dome Exploration discovered anddelineated a gold mineralized zone approximately 350metres long, 45 metres wide, and open below 350 metresof vertical depth. This zone strikes east northeast and dipsto the north at 70 to 70 degrees. The gold mineralization todate appears to be associated with a major deep seatedporphyry unit. It is now evident, from the work carried outby Lakeshore and West Timmins that the main target willprobably be found below the 600 metre level. It will be theaim of EXPLOR management, an experienced team of geologists and engineers, to drill for this deeper target inthe upcoming months as a priority. Two large Marcotte drillswith the capacity to drill 2,500m holes have been readiedon site with work due to start imminently.On September 11
th
, the Company put out a news releaseexplaining the geologic model pertaining to the TimminsPorcupine West property
that is generally known as „The
Hollinger-McIntyre-
Coniaurum System‟, a system that has
produced over 30 million ounces of gold to date. Therelease
details aspects of Explor‟s modelling, specifically the
association of gold mineralization with Quartz feldspar (QFP)and syenite porphyry, found at both the Lakeshore andWest Timmins Properties. Because so much is known aboutwhere and how the great discoveries along the AGB havebeen made, Explor is able to state that the initial drill targetwill be the intersections of the major (splay) faults and thecontacts of the favourable high Fe-tholeitic volcanic hostrocks especially near the synclinal fold hinge.As Cameco, that owned the property for seven years, wrotein an internal report in 2005:
 “
The (drill results) althoughnot economic so far, are indicative of a large gold system.The mineralization occurs along a major deformationcorridor traced by drilling for more than two kms alongstrike, up to 1.5 kms wide and more than 600 metresdeep
” 
. Further corroboration of the depth target.
Other Properties
Explor owns a 100% interest in two other properties to theeast of the AGB, Eastford Lake, where hole 7 intercepted
12.2m of 16.6 g/t 
in association with a large porphyrystructure and PG 101 where hole 2 intercepted
3m of 52 g/t 
 located less than 2 kms from the Holt McDermott Minewhich contained 2.01m ounces of gold.Also: The Kidd South Property (a large land positionadjacent to the Kidd Creek Massive Sulphide Cu/Zn/Pb/Agproperty) and a large land position in East Bay, Quebecsurrounding the recent discovery by Clifton Star of a largegold bearing zone including a drill intercept of 11.8m of 12.2 g/t.I conclude that the valuation of Explor, currently trading ina tight range on good volumes, is poised to move stronglyahead on any encouraging news from the upcoming drillprogrammes at PG -101, Eastford Lake and in due course,Timmins Porcupine West.
 
 
Authorised and Regulated by the Financial Services Authority
 3Date: 15 Oct 2009
INFORMATION MEMORANDUM
EXECUTIVE SUMMARY
The writer visited the Explor Resources Inc properties, Ontario from 26
th
 
30th August 2009. I was accompanied by ChrisDupont, P.Eng. the CEO of Explor, and Mike Ballanger of Union Securities, Toronto.Explor Resources is a TSX Venture listed junior gold explorer with a dominant 19,900 ha land
position in one of the world‟ 
s most prolific gold camps
the Abitibi Greenstone Belt,Ontario/Quebec (commonly known as the AGB). Explor has a market cap of Can$40m @Can$0.50/share. The company is lead by Chris Dupont as CEO, a mining engineer with morethan 30 years of industry experience. He was chief engineer for Exall Resources, senior miningengineer for Noranda in Timmins, mine manager for Normetal and projects manager forLuzenac. Chris is well supported by a team of seasoned geologists either directly employed oras consultants.It was the discovery, in 1909, of the prospect that became the Dome Mine that started the gold rush to the AGB. The Hollingermine was first discovered in East Timmins in 1910 by Benny Hollinger, a barber by trade. Benny and his geologist partner, AlecGilles, sold their claims later to Noah Timmins who developed the mine. Approximately 65 million ounces of gold, and over 140million tonnes of copper/zinc ore have been produced since then from several local mines, according to government sources.This phenomenal production would not and could not have occurred had it not been underpinned by a rock-solid Canadianmining law. There are variants in this law as they pertain to each province, environmental issues being paramount. HoweverCanadian mining law has withstood the challenges of an almost endless procession of Canadian world class discoveries,diamond, gold, copper, nickel etc and emerged intact.There is an abundance of power, water, paved highway access
to all of Explor‟s AGB properties
and an experienced workforcein Timmins, a mining township of 50,000 people (also home to the singer Shania Twain) lying at the eastern end of the GoldBelt.
West Timmins
Since 2005/6, an important new gold discovery has been made to the west of the Mattagami River Fault, an influential structural feature that hitherto hadbeen thought to be the limit of the historic Destor Porcupine Fault zone, (alsoknown as the Timmins Gold Belt). Deep drilling by Holmer Gold Mines andothers over the past 10 years confirmed the theory that although mostsignificant discoveries along the AGB are associated with porphyry unitsassociated with north trending splay faults (Burrows-Benedict, MattagamiRiver) creating a mineralised corridor, these faults displaced the mineralizationbut did not cut it off.Deep drilling to 800 meters by Lakeshore Gold and West Timmins Mining ontheir jointly owned Rusk and Porphyry Gold Zones intersected some of thethickest and highest grade intersections ever reported from the West Timminsdistrict including 8.86 g/t over 24.35 metres and more conclusively
83.40metres (273.55 feet) grading 12.75 g/t (0.37 oz/t)
from their ThunderCreek/Rusk zone
.
A feature of the West Timmins discoveries is that theirstructure gets wider and richer below the 800 meter level.Lakeshore Gold is in the process of commissioning their new 1,000 tpdunderground Timmins gold mine due to commence production in Q1 2010.Whilst I was in Canada, Lakeshore and West Timmins agreed a merger, valuingthe business combination at
over Can$1bn.
The merger consolidates animportant west Timmins land position as well as giving the Timmins Mine
access to West Timmins‟ 
higher grade ore at depth. Probable reserves of around 850,000 ounces at the Timmins Mine will be substantially increased asLakeshore drifts east into the West Timmins Thunder/Creek Rusk zone, host tothe extraordinary gold intersection highlighted above.

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