Crown's Red Lake property consists of six patented claims (100 hectares) on McKenzie Island, approximately 4 km southwest of the former McKenzie Red Lake Mine, which produced more than 651,000 ounces of gold at an average grade of 9.5 g/t (0.277 oz/t) from veins in the McKenzie Stock, a comparable geological setting. Crown's property is situated within and near the northern edge of the Dome Stock, the same age as the McKenzie Stock. Channel sampling and 3 drill programs were completed between July 2010 and November 2012 and were primarily focused on the “Bishops Break” vein found at surface.

Best drill intercepts were (see table below for details):

Deep drilling established continuity of the Bishop’s Break shear to over 1000 meters below surface and confirmed the existence of a parallel shear zone with similar lithology sub-cropping approximately 300 meters to the north east of Bishop’s Break.

Regional Geology

The property lies in the Red Lake greenstone belt which is located in the Uchi Subprovince of the Archean age Superior Province, (Figure 7. Regional Geology - (source: Cargill Technical Report 2010, map after Stott & Corfu 1991)). As per Stott and Corfu 1991;

Figure 7. Regional Geology - (source: Cargill Technical Report 2010, map after Stott & Corfu 1991)

Local Geology

The property is underlain by the felsic intrusive rocks of the Dome Stock which contains inclusions of felsic meta-volcanic rocks and intermediate to felsic, intrusive rocks, (Figure 8. McKenzie Area Geology and Figure 9. Legend to Red Lake Geology OGS Open File 4594).

The perimeter of the Dome Stock has proven to be highly prospective as evidenced by the amount of producing mines and gold showings located around it. Dykes ranging from gabbroic to granodiorite in composition dated at 2800-2600 Ma have filled shrinkage cracksand structural weakness associated with the Dome Stock emplacement. Quartz veining, often auriferous, has in many instances channeled along these pathways prior to the dyke emplacement.

The auriferous quartz vein focused on in the project area occurs in a shear zone that is exposed on Kings Island south of the property in Red Lake. The Author contends that this shear zone extends across the Dome Stock to the southern shore of Red Lake where published MDI data from Red Lake Gold Shores Mines veins 1,2 & 3 bears similarity in both strike and lithology, (Figure 10. Projection of Bishop’s Break across Red Lake). Recent drilling, MK-12-36, intersected a parallel auriferous quartz chlorite vein system approximately 300 meters east of the Bishops Break outcrop which the Author contends is possibly an extension of Red Lake Gold Shores shafts 1 & 2 vein.

Figure 8. McKenzie Area Geology Extracted from Red Lake Geology OGS Open File 4594

2010 Drilling

Best results of the program were from MK-10-01 with 6.2 g/t Au over 88 centimeters, MK-10-08 with 41.5 g/t Au over 76 centimeters and MK-10-09 with 4.4 g/t Au over 80 centimeters, all widths are uncorrected intercepts.

2011 Drilling

Results from 10 holes totalling 890 meters of drilling on the “A” zone have proven auriferous quartz 175 meters below surface and defined the plunge of the mineralization to over 70 meters below surface, (Figure 29. SW-NE Section Best Results Drill Holes 2010/2011) and (Figure 33. Long Section with 2010-2012 intersects contoured). The best results of this program were 60 g/t Au over 69 centimeters corrected full vein width. The mineralized zone appears to plunge at 80-85 degrees north west and narrows from 25 meters at surface to 15 meters at 70 meters below surface.

Figure 30. Perfect Storm Target

2012 Drilling

MK12-37 intersected 17 g/t Au over 150 centimeters including 25 g/t Au over 100 centimeters and 43 g/t Au over 35 centimeters. MK-12-38 intersected 28 g/t Au over 125 centimeters including 53 g/t Au over 65 centimeters.

Primary channel sampling results

Drill results considered as significant for the 3 drilling programs are displayed, (Table 7. Significant drill results).

Table 7. Significant drill results

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