Western Copper feasibility study

Nevada Star

Resource Corp.

Design CriteriaOK Mine

Western States EngineeringProject No. 98010

2700 E. Executive Drive, Suite 100 Tucson, Arizona 85706Telephone: 520-889-2040 Fax: 520-889-2733

Western States EngineeringTucson, Arizona

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NEVADA STAR – OK MINE PROJECT

FEASIBILITY STUDY

Transmittal LetterExecutive Summary

1.0 Introduction

.............................................................................................1–11.1 General ................................................................................................... 1–11.2 Project Location...................................................................................... 1–11.3 Project History......................................................................................... 1–11.4 Land Tenure............................................................................................ 1–1Figure 1.1 - Map Showing Project Location........................................... 1–2Figure 1.2 - OK Mine Project Location ................................................. 1–31.5 Project Concept....................................................................................... 1–41.6 Data Sources............................................................................................ 1–4

2.0 Geology and Mineral Resources

............................................................... 2–12.1 Introduction............................................................................................. 2–12.2 Regional Geology.................................................................................... 2–1Figure 2.1 - Site Map............................................................................... 2–22.3 Mineral Deposit Description................................................................... 2–32.4 Database.................................................................................................. 2–32.4.1 General...................................................................................... 2–32.4.2 Data Source............................................................................... 2–42.4.3 Survey, Location and Elevation Control................................... 2–72.4.4 MDA Independent Sampling.................................................... 2–82.4.5 Twinned Holes.......................................................................... 2–112.4.6 Specific Gravity........................................................................ 2–132.4.7 Data Used in Modeling............................................................. 2–142.5 Mineral Resources................................................................................... 2–162.5.1 Methodology............................................................................. 2–162.5.2 Hidden Treasure........................................................................ 2–20Figure 2.2 - HT Collar Map...................................................... 2–21Figure 2.3 - HT Cross Section.................................................. 2–22Figure 2.4 - HT Bench Map...................................................... 2–23Figure 2.5 - HT Model Differences.......................................... 2–252.5.3 Maria......................................................................................... 2–26Figure 2.6 - Maria Drill Hole Map........................................... 2–27

Western States EngineeringTucson, Arizona

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Figure 2.7 - Maria Cross Section.............................................. 2–28Figure 2.8 - Maria Level Map................................................... 2–292.5.4 Copper Ranch............................................................................ 2–30Figure 2.9 - Copper Ranch Drill Hole Map.............................. 2–31Figure 2.10 - Copper Ranch Section......................................... 2–32Figure 2.11 - Copper Ranch Level Map................................... 2–332.5.5 OK Mine................................................................................... 2–34Figure 2.12 - OK Mine Drill Hole Collars................................ 2–36Figure 2.13 - OK Section.......................................................... 2–37Figure 2.14 - OK Level Map.................................................... 2–382.5.6 Stockpiles.................................................................................. 2–412.5.7 Past Production and Previous Resource Estimates................... 2–422.6 Qualifications, Risks and Opportunities.................................................. 2–43

3.0 Geotechnical and Hydrology

..................................................................... 3–13.1 General ................................................................................................... 3–13.2 Investigation............................................................................................ 3–13.3 Site Conditions........................................................................................ 3–13.4 Analysis and Recommendations.............................................................. 3–13.5 Water Resources...................................................................................... 3–1

4.0 Mineable Reserves and Mine Plan

........................................................... 4–14.1 Methodology........................................................................................... 4–24.2 Ultimate Pits ........................................................................................... 4–2Figure 4.1 - OK Mine Ultimate Pit Grade - Tonnage Curve................... 4–4Figure 4.2 - Hidden Treasure Ultimate Pit Grade - Tonnage Curve....... 4–4Figure 4.3 - Copper Ranch Ultimate Pit Grade - Tonnage Curve........... 4–5Figure 4.4 - Maria Ultimate Pit Grade - Tonnage Curve........................ 4–54.3 Pit Designs............................................................................................... 4–6Figure 4.5 - Hidden Treasure and Maria Pit and Dump Design.............. 4–7Figure 4.6 - Copper Ranch Pit and Dump Design................................... 4–8Figure 4.7 - OK Pit and Dump Design.................................................... 4–94.4 Dump Designs......................................................................................... 4–104.5 Production Schedule................................................................................ 4–114.6 Mine Equipment and Costs..................................................................... 4–14

5.0 Plant Design Criteria

................................................................................... 5–15.1 Metallurgical Testing.............................................................................. 5–15.2 Design Criteria........................................................................................ 5–35.2.1 Site Conditions.......................................................................... 5–35.2.2 Ore Characteristics.................................................................... 5–3