An Executive Review of the Relief Canyon Mine Project

Pershing County, Nevada U.S.A June 2010

Table of Contents 
1.0  2.0  Executive Summary ............................................................................................................ 3  Property Location and Description ..................................................................................... 4  2.1  Property Location and Claims .......................................................................................... 4  2.1  Adjacent Properties .......................................................................................................... 5  3.0  4.0  Access, climate, local resources, infrastructure .................................................................. 7  History................................................................................................................................. 7  4.1  Historic Mining and Prospects in the Area ...................................................................... 7  4.2  Falconi and Duval ............................................................................................................ 8  4.3  Lacana Mining.................................................................................................................. 8  4.4  Pegasus Mining Corporation ............................................................................................ 8  4.5  Firstgold Corp. 1994-2010 .............................................................................................. 8  5.0  Geology ............................................................................................................................... 9  5.1  Regional Geology ............................................................................................................. 9  5.2  Local Geology ................................................................................................................ 11  5.3  Property Geology .............................................................................................................. 12  5.3.1  Relief Canyon Lithology ........................................................................................ 12  5.3.2  Relief Canyon Structures........................................................................................ 15  5.3.3  Quaternary .............................................................................................................. 16  5.4  Exploration Potential ...................................................................................................... 16  5.4.1  Exposed Benches Target (EBT) ............................................................................. 16  5.4.2  North Target (9723)................................................................................................ 17  5.4.3  North Forty ............................................................................................................. 17  5.4.4  South-West ............................................................................................................. 17  6.0  Processing Facility, Lab and Metallurgical Testing ......................................................... 18  6.1  Relief Canyon – Historical Recovery............................................................................. 18  6.2  Metallurgical Testing - Current ...................................................................................... 18  6.3  Plant design and specification ........................................................................................ 20  6-4  Pad Design and Construction ......................................................................................... 21  6.3  Crusher ........................................................................................................................... 24  6.4  Commercial Lab ............................................................................................................. 24  7.0  8.0  Ore Reserves and Pit design ............................................................................................. 25  Permitting.......................................................................................................................... 25  2

1.0  Executive Summary 
Relief Canyon has been historically mined since the late 1980s by several companies. Pegasus was the most notable producer from this operation. They produced gold/silver using a conventional heap leach operation. They reported gold recoveries in the 65-70% range. Pegasus closed the project in the early 1990s due to low gold prices versus fully mining out the resource. A significant gold resource exists in the claims for the project and in particular close to the existing pits which will allow for a short project development period. Mine Development Associates (MDA) constructed a resource model for the project. Their resource model indicates that 262,000 ounces of gold are present in the model domain. The vast majority of these ounces can be reached from the existing pits through additional laybacks and the deepening of the pits. MDA also has generated a 43101 report for the project that discusses the resource, exploration potential, and land package, and other pertinent information for the project. The project has all the infrastructure that is required to initiate heap leaching operations. A full crushing system originally planned to be used to reprocess heap material. The full leach pad design has been approved and is permitted with the State of Nevada and the BLM. This authorizes the placement of 7,000,000 tons of ore on the pad. An amendment will be required to change this from spent ore to fresh ore from the pit. The liner design is sufficient to allow ore to be stacked much higher significantly increasing the capacity of the leach pad. A portion of the full pad has been constructed along with all the necessary piping, ponds and other ancillary facilities. The facility was fully operational before Firstgold ran into financial troubles attempting to reprocess the existing heap material. In addition an Adsorption/Desorption gold processing plant is also located at the property and was also fully operational. Mine offices and some mobile equipment and warehouse of supplies and other equipment are present on the site. The secured lenders are in control of the assets for Relief Canyon that include everything necessary for the full turn-key operation of the project. Recent developments through the bankruptcy court, Firstgold, and the secured lenders have simplified the situation as it originally related to Firstgold’s bankruptcy filing. The secured lenders are able to freely advance the project and find a buyer that is interested in near term production. Advancement of the permit amendments necessary to allow mining from the pits and leaching of the gold ore has been initiated. This will require amendments to the Water Pollution Control Permit (Nevada), the Reclamation Permit (Nevada), and the Plan of Operations (Bureau of Land Management). It is expected the amendment process can be completed in 9 months.

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2.0  Property Location and Description 
2.1 Property Location and Claims

The Relief Canyon Project is located 15 miles NE of Lovelock Nevada in Pershing County, Nevada.

Figure 2-1

The Relief Canyon Gold Project comprises 51 unpatented Lode mining claims totaling approximately 1,020 acres in Packard Flat, Antelope Springs Mining District, Pershing County, Nevada, U.S.A. These Lode claims cover parts of Sections 3, 4, 16, and 20, in Township 27 North, Range 37 East, Mount Diablo Base and Meridian, Pershing County, Nevada, U.S.A. The claims are in three blocks, contiguous within each section. Unpatented Load Claims Bobcat 1- 30 NMC969360 – NMC969389 R1 – R6 & R8 NMC902710 – NMC902716 RCL46 – RCL50; RCL60 – RCL63 NMC902717 – NMC902725 NGR1 – NGR5 NMC929649 – NMC929653 In addition, the Relief Canyon Gold Project also comprises 120 unpatented millsite claims totaling approximately 640 acres, in Packard Flat, Pershing County, Nevada, U.S.A. These millsite claims are located in Section 18, inclusive, in Township 27 North, Range 37 East, Mount Diablo Base and Meridian, Pershing County, Nevada, U.S.A. (Figure 2-2) 4

Mill Site Claims RC1 – RC57 RM1 – RM63

NMC902731 – NMC902787 NMC929654 – NMC929716

In Section 18, T34N, R34E, approximately 500 of the 640 acres of the Millsite Claims are overstaked on Lode Claims held by Newmont and Victoria Resources. At this time no discrepancies exist. Five heap leach pads, two solution ponds and a cement block constructed AdsorptionDesorption-Recovery (ADR) solution processing circuit are located on the mill site claims. The ADR type process plant consists of four carbon columns, acid wash system, stripping vessel, electrolytic cells, a furnace and a retort for the production of gold doré. The building was originally installed by Pegasus, updated in 1995 and has been completely updated and new equipment installed in 2007-2008. The property is subject to a 4% NSR Royalty held by Royal Gold. There are no residences within the Packard Flats area with the closest residence being 12 miles southeast in the Buena Vista Valley. 2.1 Adjacent Properties

Approximately 30% of the Relief Canyon ore body falls on property immediately adjacent to the current unpatented mining claims held by Relief Canyon Partners, LLC. The adjacent land is private, fee simple land owned by Nevada Lands Corporation, located in Carson City, Nevada. The minerals rights, as well as the right to mine these sections are owned by Newmont Mining Corporation (Newmont). Newmont has subsequently signed a regional exploration agreement with Victoria Resources Corp. for exploration.

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Figure 2-2

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3.0  Access, climate, local resources, infrastructure 
The Relief Canyon Gold Project is located 13 miles (22 km) east-northeast of Lovelock, Nevada, on the southwest flank of the southeast portion of the Humboldt Mountain Range. Access to the Relief Canyon Gold Project is by Interstate Highway 80 to Coal Canyon Road, Exit 112, then approximately 10 miles east on paved county-maintained road, turning north at Packard Flat onto a gravel road for 2 miles to the project site. (Figure 2-1) The topography of the Relief Canyon Gold Project is variably flat to hilly, grass-shrub-covered desert, with a few trees present at higher elevations. Elevations in the Relief Canyon Gold Project area are between 4,600 ft along the western, valley side of the project to 5,500 ft on the eastern portion of the project. The climate in the Relief Canyon Gold Project area is favorable for year-round mining. The temperatures are cool to cold during the winter, with occasional moderate snowfalls and warm during the summer with cool nights. The area is fairly dry, with infrequent rains during the summer. The Relief Canyon Gold Project area is uninhabited. Electricity is supplied by NV Energy via a 13,200 volt line to the Southeast corner of the mill site claim block. Without further upgrades, 500KW of three phase electricity is available. An engineering study has been completed by NV Energy to upgrade the line to 5 MW. Water is from two wells located east of the process plant and adjacent to the historic open pits. Telephone and internet are supplied from Lovelock via a radio relay system with a solar powered relay located 7 miles south of the mine on the crest of the West Humboldt Range. The former Pegasus Process building is present on the Relief Canyon Gold Project site and has been updated with a new processing facility. A small covered shop area, warehouse and office building have been installed. Necessary supplies, equipment and services to carry out full sequence exploration and mining development projects are available in Winnemucca, Reno, and Elko, Nevada. A trained mining-industrial workforce is available in Lovelock and other nearby communities. The overall subdued topography that characterizes much of the Relief Canyon Gold Project’s past Process Facilities area provides ample ground for the sitting of new mine facilities, tailings, waste dumps and heap leach facilities.

4.0  History 
4.1 Historic Mining and Prospects in the Area

Located in the southern Humboldt Mountain Range of Pershing County Nevada, gold, silver, mercury, antimony and fluorite have been prospected for and mined since the 1860’s. The first recorded production in the Antelope Springs District was high-grade silver ores from the original Relief mine (originally known as the Batavia and Pacific Mine) in 1869 (Bonham, 1985) and is located about 1.5 miles NE of Relief Canyon. Other nearby, currently dormant prospects and small mines are mostly for mercury. About 5 miles to the North the large open pit Rochester Ag and Au mine is currently winding down operations (Coeur-Rochester Mine, > 1 million Oz Gold, > 100 million ounces Silver). A few miles further north is Midway Gold’s Spring Valley Active Gold Project. 7

Production from the original Relief mine in the late 1800’s was reported between $200,000 and $2,500,000 from high-grade silver ore. To the southeast are located several mercury mines with a total production in excess of 12,500 flasks of Hg. These mines have been inactive since the 1970’s. The Relief Canyon area was initially known as the Bohannon Fluorspar prospect or the Emerald Spar prospect and was mined for fluorite in the 1940’s. Several adits from the Bohannon Fluorspar prospect exist to the south of the Relief Canyon Mine waste dump. 4.2 Falconi and Duval

In 1978 Falcon Cement Company and Associates (Falconi) staked the area for its high purity limestone potential and reportedly only drilled one hole. Duval Corporation (Duval) in a 1979 exploration program noted gold from stream sediments and leased the property from Falconi. Duval initiated a program of drilling that concluded at 44 reverse circulation drill holes, with the identification of a zone measuring about 1800 feet x 2400 feet. 4.3 Lacana Mining

Lacana Mining, Inc. (Lacana) negotiated an option to purchase a 90% interest in the property in October of 1982. By the beginning of 1983, Lacana had exercised the 90% option and purchased the remaining 10% from Falconi. Over the next year and a half, Lacana drilled 204 reverse circulation drill holes and collected two 4000+ ton samples for metallurgical testing. At about the same time, Santa Fe (SPRR) drilled a reported 60 reverse circulation drill holes on railroad fee land. Table 2 illustrates the drilling history on the project. In April of 1984 a final feasibility study led to the decision to develop an open pit, oxide, Run of Mine (ROM) cyanide heap leaching operation on the property. Mining operations began in August of 1984. Lacana Mining is reported to have produced 13,826 ounces (1986-1988 Canadian Mines Handbook). 4.4 Pegasus Mining Corporation

Pegasus Gold Corporation (Pegasus) had a presence in the area in 1985 with their Florida Canyon Gold Mine located approximately 20 miles north-northwest of Relief Canyon. In March of 1986 Pegasus took an option on the property. Subsequently, the property was completely acquired from Lacana in July of 1986. Relief Canyon Gold Mine operated under Pegasus management from November 1986 until September 1990. Ore placement on the heaps ceased in October of 1989. The operation processed approximately 2 million tons per year that averaged 0.03 opt Au (1.028 g/t). Pegasus is reported to have produced over 100,000 ounces gold. 4.5 Firstgold Corp. 1994-2010

In September of 1993 J.D. Welsh and Associates (Welsh) of Reno Nevada purchased the property from Pegasus and continued to rinse the heaps, reportedly producing several thousand ounces according to a WGM report. Firstgold Corp. (Firstgold) purchased the property from Welsh on January 10th, 1995.

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Firstgold staff manually entered into a computer the records from a reported 398 drill holes, representing about 22,000 Au assays. Through April 1997 Firstgold drilled a total of 73 6.5”diameter RC drill holes, for a total of 43,220 feet of drilling (Ave Depth 592’ (179.27m)). In 2006 Firstgold, Corp. hired Dyer Engineering to secure permits to reprocess the existing heap leach material. Following Dyer Engineering’s recommendation, it was decided to file an application to modify the 1997 Plan of Operations to include repossessing of the old heaps and to pursue exploration in the pit area. In addition, a new water pollution control Permit application was submitted to allow the reprocessing of the historic heap leach material. Both of these permits were issued in 2009. During 2008 and 2009 an additional 900,000 square feet of pad space was constructed along with a 3000 gpm Carbon Adsorption gold processing facility and crusher. Both the Pregnant and the barren ponds were relined as well. The electrical, water and sewage systems were also reactivated. In order to bring the historic drilling done at the Relief Canyon Mine into compliance with requirements for 43-101 reportablilty, an additional 105 holes were drilled at the mine site. The drilling was designed to twin existing holes and fill in possible voids in the drill coverage. 73 Reverse Circulation (RC) holes were drilled in 2007 and 18 RC holes were drilled in 2008. In 2008, one core hole was drilled as a twin to an existing hole between the North and South Pits. In addition, 10 RC holes as well as 3 core holes were drilled north of the pits.

5.0  Geology 
  5.1  Regional Geology   

The Relief Canyon Gold Project area is situated in northwest Nevada at the southern end of the Humboldt mountain range, a north-oriented basin and range elongate horst block exposed during late Cenozoic time in central Pershing County. The range forms a broad anticline with Cretaceous intrusive rocks exposed locally in the central core. A package of late Paleozoic to early-mid Mesozoic mostly felsic volcanics, followed by calcareous, and siliceous sediments all dip away from the apex of the range. During the Jurassic, southeast-directed deformation occurred resulting in highly deformed and thrust imprecated strata. Folds in sedimentary units are related to the thrust faulting and display a variety of geometries on both map and outcrop scales. Metamorphism during the late Mesozoic time was followed by the emplacement of Cretaceous intrusives now exposed in the central portion of the Humboldt Mountain Range. In late Cenozoic time diabase (gabro) dikes striking generally northwest, intruded along structural weaknesses into the surrounding rocks. A period of active volcanism in the late Cenozoic, probably less than 20 ma old has largely been eroded by uplift, with the result that only isolated patches of basalt are preserved (Ponce 2002).

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Figure 5.2.

Local Geology

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Figure 5.3. Local Stratigraphy A more detailed explanation of the regional geology including references can be found in the NI43-101 Resource Evaluation generated by MDA in June of 2010. 5.2  Local Geology  

The Relief Canyon Gold Project is located on the western flank of the southern Humboldt Range, along the east side of Packard Flat. The northeast-trending range, bound by the Black Ridge Fault to the west, is composed of Late Paleozoic to mid-Triassic felsic and intermediate volcanic flows and tuffs, silty and micritic limestones, mudstones, sandstones and their lower greenschist facies metamorphic equivalents. In addition, several episodes of granite, granodiorite, monzogranite, and diabase (gabbro) composition intrusive rocks are present. Alluvium is made up from the surrounding exposed basement rocks, along with lakebed sediments, and tuffa from Pleistocene lakes. 11

5.3 

Property Geology  

5.3.1  Relief Canyon Lithology   Figure 6 shows the geology of the Relief Canyon Gold Project and the location of the Relief Canyon Mine. The low hills south of the mine are underlain chiefly by weakly metamorphosed sedimentary rocks of the Auld Lang Syne Group, which includes the Grass Valley Formation. Much of this basement has subdued topography and is mantled by 3 ft or more of Quaternary cover. At the mine, just below the Grass Valley Formation shales, sandstones, and argillites is the Star Peak Group Cane Springs Formation, a thick-bedded to massive limestone, with local silty limestone units. North of the mine, silty, fine to medium bedded limestone is strongly deformed, with tight to isoclinal folding preserved. Reports of jasperoid exposures have been noted in past reconnaissance maps. Local, high angle, range front parallel, milky quartz veins with included schorl tourmaline occur mostly in the limestones, but also in some of the intrusives. Farther north, intrusive rocks are exposed along the western margin of the range front. At the mine the topography changes from high relief predominantly limestone to low relief predominantly shale towards the south and southeast. This change in relief coincides with a northwest-oriented chlorite and sericite altered diabase dike that is un-mineralized, but occurs along a regional-scale northwest-trending fault. In contact with the dike(s) are both the overlying tan to olive oxidized shales, siltstones, phylites, and sandstones of the Grass Valley Formation and the locally brecciated, and “karstified” gray and black massive to thick bedded micritic limestone of the Cane Springs Formation. Styolites, often displaying high carbon content cut both the limestone and the shale. Brecciation occurs along the contact between the limestone and the clastic sedimentary package, extending down into the limestone from 10 feet (3.2 m) to over 300 feet (100 m). The matrix of the breccia is generally unconsolidated clay to silt size material with limestone clasts predominant. Jasperoid occurrences appear to follow a northwest orientation with multiple episodes of silica replacement recorded. In some locations large blocks of the overlying clastic unit are included in the breccia. Clay and sandy in-fillings locally display horizontal laminations. Wallace (1984) reports three different episodes of jasperoid formation.

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Figure 5.4.

Relief Canyon Gold Pre-Mining Surface Geology

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Figure5.5.

Relief Canyon Simplified Geology Cross Section

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Figure 5.6. Relief Canyon Gold Grade Thickness Map

5.3.2  Relief Canyon Structures  Rocks underlying the alluvium in the Packard Flat Valley appear to have been down dropped at least 1500’ feet (454m) or more along the northeast-oriented Black Ridge Fault. The north side 15

of the Relief North Pit is bounded by a northwest-trending diabase dike emplaced along a northwest-oriented fault (true offset unknown). This fault has been referred to as the Relief Fault. A possible extension of this structure shows up on the opposite, northwest side of Packard Flat. There are also correlatives with similar orientations to the south. Several north-northwest trending normal and possibly dip-slip normal faults displaying small offsets (30 feet to 60 feet (10m to 20m)) are found in the area of the pits. These faults are occupied by jasperoids and/or fracture breccias. East-west fault structures are also present in the limestone and may have played some role in the localization of the breccia. 5.3.3  Quaternary   Quaternary Sediments The more recent lacustrine and detrital sediments consist of aeolian sand, silt and clay horizons, as well as fine-grained well-sorted sand and coarser gravel channels and range in thickness from 20 feet (6 m) atop the once undisturbed Relief Canyon pit to over 500 feet (151 m) a mile (1.6 km) west of the Relief Canyon pit. Lakeshore terracing can be observed in air photos about 3 miles (4.8 km) to the south of the mine. Aquifers The Packard Flat aquifer generally is found at a depth of 150’ to 500’. Previous RC drilling encountered groundwater at those depths. Currently the pits contain only meteoric water input as reported by Dyer Engineering Consultants. 5.4  Exploration Potential 

The property has been drilled with the highest density of drilling in and near the pit areas. Most of the drilling is relatively shallow and consistent with near surface oxide deposits at that time. As you move away from the existing pit areas, the density of drilling drops off significantly. Over the life of the project, past operating companies have identified four specific targets that provides significant exploration opportunities that could expand the current pits and provides additional near surface oxide gold mineralization. One specific area of great interest is related to a deeper high grade gold mineralization. Deeper driller intercepted new mineralization targets not previously identified by past operators. In looking at the deeper targets, they have also verified the existing geologic sequence found in the pit area is still present above this deeper mineralized zone found to the north of the existing pits. MDA provides some discussion of these exploration targets and Minex Exploration also produced a short report on the exploration targets and their potential to expand resources in current geology and the discovery of this new deep mineralization at the property. 5.4.1  Exposed Benches Target (EBT)  This area has had past historical estimates performed on the remaining gold-bearing material. With completion of the input of the past drilling’s drill hole logs and assays into Surpac software, zones for confirmation drilling with QAQC to reportable standards will be prioritized. Past 16

reports suggest that the area between the north and south pits, but below the current pit level, could show promise for firming up mineable ounces. In addition, the jasperoid on the southeast side of the north pit continues in a southeasterly fashion. This area warrants follow up drilling. The area to the immediate northwest of the north pit, though previously drilled, would benefit from confirmation. 5.4.2  North Target (9723)  Drill hole 9723, drilled in mid March of 1997 as a twin hole of PRC-88-4, was a very exciting discovery with notable grades of gold mineralization and rock types previously not reported in the area of the past mined pits. The 1080’ RC vertical hole (unsurveyed) returned a high of 0.344 opt (11.795 g/t) Au at 365’-370’ (110.5-112 m) in thin to medium bedded silty limestone at the bottom of a silicified zone. Subsequent check-assay returned 0.292 opt (10.011 g/t) gold. The interval ran 60 feet (18.17m) at 0.1125 OPT (3.858 g Au /t), with a 0.5 g/t cutoff and a maximum 5 foot (1.52m) internal dilution. Other intervals better than 0.034 OPT Au, (1 g Au /t) were encountered. Pegasus RC drill hole PRC-88-4, collared 15 feet to the south returned 30 feet (9.08m) at 0.087 OPT Au (3.005 g Au/t) from 320’-350’ (96.9 -105.98 m) in shaley limestone, also just below a zone of silicification. Drill hole 9723’s log, as well as, PRC-88-4’s log lists several dikes, with long intervals of thin-bedded silty (shaley) limestones. Projections of known faults suggest that the hole does intersect structurally-controlled mineralization. Therefore, it is recommended that oriented HQ core holes, in addition to RC holes, be used to follow up in this area. 5.4.3  North Forty  North Forty Target is located on the northwest margin of the Relief Canyon pit along the Black Ridge NE trending range front normal fault that is probably of late Cenozoic age. In the exposed hills zones of jasperoid mineralization have been found in rock chips. Local zones of intense silicic alteration, sericitic alteration, and quartz veins with tourmaline have been found in the hills. The range front fault and off-board parallel faults comprise the target. 5.4.4  South­West  This area is occurs under the past mining operations waste dump and low grade stock pile. It is approximately 1500 feet (454 m) in a north-south direction and 3000 feet (908m) in an east-west direction, with the eastern edge along the east side of Section 20. Pit geology models suggest an asymmetrical anticlinal form plunging to the southwest. This puts the same lithology observed in the pit at a deeper depth in this area. Previous drilling would suggest that there are also elevated gold grades in the same stratigraphic position as found in the pit area. This target should test if the gold continues along the lithologic contact recognized in the pits and to see if the location of a feeder zone (or zones) can be discerned.

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6.0
6.1 

Processing Facility, Lab and Metallurgical Testing 
Relief Canyon – Historical Recovery 

The first mineral processing and metallurgical test work on the Relief Canyon Gold Project was conducted by Lacana in 1983 with two 4000 lb (1818 kg) bulk samples. In addition, Lacana performed extensive, bench-scale metallurgical investigations. The tests indicated that highergrade, oxidized gold mineralization could expect >75% recovery when agglomerated and that lower grade material could expect 65% recovery as ROM material. Based on work done by Kappes, Cassiday and Associates (KCA) in 1982 and 1983, Dawson Metallurgical Laboratories, Inc. (Dawson) in 1982 and 1983, by Mine and Mill Engineering Inc. in1983 and in a letter from Robert Shoemaker of San Francisco Mining Associates, expectations were that up to 80% recovery rates could be achieved with agglomeration in the crushing plant equipment and that additional tests were needed to determine the ideal crush size. A pilot heap leach study stacked run-of-mine (ROM) material (apparently un-agglomerated with cement or lime) onto a 100,000 ton, 400’x300’x13’ mini pad, which apparently resulted in a 65% recovery rate. However, Lacana encountered problems in full operation when they were not able to achieve the expected heap leach gold recovery rates (48% during operation, 65% during pilot study). Recovery rates were not as expected, possibly due to a high clay content, a lack of agglomeration, problems with the contract miner and/or continued use of ROM on the heaps. 6.2  Metallurgical Testing ­ Current  

Bulk sampling of the Relief Canyon pit was conducted in December of 2008. The purpose of this sampling was to provide representative samples of the two types of ores that are contained in the Relief Canyon pit. It is important to note nomenclature used to define the two types of ore bodies. • The clay-matrix limestone breccia ore type is noted as o ore type-2 in the map that shows sampling locations. o BCT-2 in the column test data compiled by KCA • The jasperoid-hosted ore type is noted as o ore type-1 in the map showing sample locations. o JBC-1 in the column test data compiled by KCA On December 11, 2008, bulk sampling of the 5265’ bench east of the North Pit of Relief Canyon Mine was conducted. Three short backhoe trenches were dug in the floor of the bench in order to sample the clay-matrix limestone breccia ore type. This material was deposited into three 55 gallon metal drums (see Photo 1).

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Photo 1: Loading trench sample into 55 gallon drums The jasperoid-hosted ore type was sampled from the pit wall west of the limestone breccia trenches. A portion of the sample was collected by cleaning off the re-cemented sand and clay from the face and scraping the exposed rock. The remainder of the sample was collected by hand from the fractured jasperoid exposure located just above and west of the exposed face. The final sample was loaded into 3 - 55 gallon drums. All of the sampled material was transported to the Firstgold warehouse in Lovelock, NV. The sample processing protocol was as follows: 1) 2) 3) 4) 5) Screen all material to –3/4” Crush all +3/4’ material to –3/4” Combine and blend all of the material Collect 20 – 25 1kg samples from blended material Load material back into drums for shipping to KCA

The two ore types were treated separately throughout the process. All of the processing took place at the Firstgold warehouse and lab facility. Two bulk samples were sent to KCA’s lab in Reno, Nevada, one each of the Jasperoid and the breccias. KCA ran standard column tests on each of the samples. The results are as follows:

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Relief Canyon Project Summary of Column Test Logs

KCA Sample No.

KCA Test No.

Description

Crush Size, inche s

Avg. Head Assay, oz Au/st

Extracted , oz Au/st

Extracted , % Au

Days of Leac h

Consumptio n NaCN, lbs/st

Addition Ca(OH)2 , lbs/st

Additio n Cement, lbs/st

4117 5 4117 6

4146 8 4147 1

BCT-2 JBC-1 O'all Avg.:

1.00 1.00

0.01 7 0.01 7 0.01 7

0.014 0.017 0.016

83% 99% 91%

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0.29 0.22 0.26

0.00 0.00 0.00

3.00 3.00 3.00

  6.3  Plant design and specification 

During 2007 it was decided by Firstgold to build a processing facility that was capable of handling both the ore from the pit and the reprocessing of the historic heap leaches. Geoff Allard and Associates was hired to design the plant and assist in procurement. After looking at the amount of to be processed and the timing it was decided that a 3000 gpm plant would be able to handle both the current reserves and any future ore that might be available. Mr. Allard designed a plant with four 8 tons columns and an 8 ton strip circuit. The plant was designed with sealed columns and uses tanks for both the pregnant and barren solutions instead of ponds and recovery pumps. This was done to allow the plant to be built within the current building footprint. It also allows for a system that minimizes carbon handling and at the same time minimizing pumping of solutions, since the system can be run at slow speeds with only a barren pump. No other pumps are required. This also has the positive effect of not inventorying solutions that contain gold, since the solution from the pad is piped directly to the carbon columns and then back to the heap with no retention time. As flow rates pick up, a low head pregnant pump automatically kicks in and maintains flow to the columns.

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The plant itself was constructed using all Firstgold employees with the exception of the wiring and the foundation. The strip circuit was never installed because of the lack of an air quality permit. 6­4  Pad Design and Construction 

In 2007, Dyer and Associates designed a new pad for the Relief Canyon Mine. The permit was issued in 2008. The pad was designed to be 72 aces in size and at 200’ stacking height to have a capacity of 21,000,000 tons. The Reclamation Permit was issued for the 72 acre pad but stacking to only 60’ in height, which gives the pad a permitted capacity of 7,000,000 tons. A minor modification will need to be submitted to extend the height to the final design capacity. The pad is designed as double layer containment. The primary layer is comprised of compacted soil and clay that has a very low permeability. The secondary layer is comprised of 80 mil HDPE plastic laid directly on the compacted clay layer. A grid of perforated pipe is installed on top of the HDPE plastic and covered by 2.5’ of over drain material. The over drain material is crushed and screened rock from the old heap. Initially only one quarter of the designed pad was constructed. This pad is 900,000 sqft and has a capacity of 1,900,000 tons.

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Picture 6-1 Pad Under Construction

Picture 6-2 – Pad During Stacking

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6.3 

Crusher 

In 2008 a crusher was purchased for the operation. The original design for the crusher called for a production rate of 750 tons per hour. The crusher bid went to AMI (Aggregate Machinery, Inc.) out of Portland, Oregon. The crusher was purchased and delivered in 2008 and is comprised of all new components. Vibrating Grizzly Feeder Jaw Crusher Cedar Rapids 3042 (30” x 42”) Vibrating Screen Cedar Rapids 6203 Cone Crusher Cedar Rapids MVP450 Stack Out Conveyor Reclaim Tunnel Cement Silo w/ screw feeder 4 – Transfer conveyors 6 – Truss Conveyors 100’ Superior grasshoppers Telescoping Stacker Superior TeleStacker 36150TSSA (150’ extended 36” belt) Electrical Control System The crusher is a semi portable crusher requiring minimal footers and slabs for set up. Because the crusher was originally designed to process the old heap leach material, the crusher was built with a 60 mil HDPE liner under the entire crusher to prevent ground water contamination. See Picture 6.2. 6.4  Commercial Lab 

A new assay laboratory was constructed several years ago and is operational, providing commercial assay services to the mining industry. The laboratory is located in Lovelock, Nevada and uses state-of-the-art assay equipment originally constructed to support exploration/operational activities at Relief Canyon. The facility is staffed with experienced laboratory personnel with all appropriate protocols and procedures in place to meet the most stringent quality control/quality assurance program. Additional equipment was recently ordered to expand our services to meet client needs. Our clients depend on timely and accurate results to support their exploration and mine production activities. 24

7.0  Ore Reserves and Pit design 
MDA has completed a resource model for the project and has identified approximately 262,000 ounces of gold at a cut-off grade of 0.005 ounces per ton. The details of their resource modeling efforts, geology, and other pertinent information can be found in their NI-43101 completed in June 2010. They thoroughly reviewed all geologic sections, drill logs, assays, and other pertinent information on the project prior to developing the resource model. A thorough auditing was completed and MDA developed some recommendations that could results in continued improvement in the resource for the project. No formal pit designs have been completed on this resource as it was just recently completed as part of the NI-43101 report. Future preliminary design work is underway to support the ongoing environmental permitting effort.

8.0  Permitting 
The project is fully permitted for the mine facilities and re-processing of the spent heap leach generated by past operators. In order to allow mining resource found below the existing pits, certain permits currently held will have to be amended. The following is a current list of permits held for the project: • • • • • • • • • • • • • • • • • • • • • BLM - Environmental Review & EA BLM - Plan of Operations BLM - Right Of Way Grant - Communications Site FCC Radio License NDEP - Reclamation Permit NDEP - Water Pollution Control Permit NDEP - Air Quality Permit NDEP - Temporary Closure Plan NDEP - BWPC Large System Septic Permit NDEP - Class III Landfill Permit NDEP - RCRA EPA ID Number (resource Conservation and Recovery Act) NDEP - Storm Water Pollution Prevention Plan NDOW - Industrial Artificial Pond Permit NDOWR - Water Rights Filling Nevada Department of Business & Industry - Notification of Commencement County - Special Use Permit County – Business License County – Building Permit City Business License State of Nevada Business License State of Nevada Consumer Use Tax License

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In order to advance the mining operation, three major permits will have to be amended prior to the initiation of any activities. The Water Pollution Control Permit authorizes process facilities and the material that will be processed. The permit must be modified that identifies the new material that will be mined from the pit. The Reclamation Permit also needs to be modified to permit the new disturbance and projected reclamation plan and bonding amount for the new proposal. The other major permit is the BLM’s Plan of Operation. An amendment will be required to account for the new material processed, pit disturbance, waste rock, and other similar items. Previous work completed for the project in the past will assist in advancing this stage of the permit. It is envisioned that only a small incremental amount of new disturbance will be required for this amendment. Therefore, the public resources that will be affected by the proposed action have been documented in previous agency analyses. As part of the agencies review, an environmental assessment will be required. This should take approximately 3 months to complete and it is expected that no new resource information will be required. It is estimated that between 9-11 months should be allocated to complete both State and Federal permitting activities. An air quality permit will also need to be amended if a refinery is added to the leach process. This can be completed within the time estimate above.

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