EagleRock Quarry

Eagle Rock Materials Ltd. Eagle Rock Quarry Project, British Columbia 43-101 Technical Report and Qualified Persons Review, British Columbia

Prepared for: Eagle Rock Materials Ltd. by: Larry Smith, P.Geo

Effective Date: 18 November 2005 149958

IMPORTANT NOTICE Recognizing that Eagle Rock Materials Ltd. (ERML) has legal and regulatory obligations in a number of global jurisdictions, AMEC Americas Limited (AMEC) consents to the filing of this report with any stock exchange and other regulatory authority and any publication by ERML, including electronic publication on ERML’s website accessible by the public, of this report. This report was prepared as a National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for ERML by AMEC. The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in AMEC’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended to be used by ERML, subject to the terms and conditions of its contract with AMEC. That contract permits ERML to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities laws, any other use of this report by any third party is at that party’s sole risk.

CERTIFICATE OF AUTHOR Larry B. Smith, R. Geo, C. P. Geo 780 Vista Blvd., Suite 100 Sparks, Nevada 89434 Tel: (775) 331-2375 Fax: (775) 331-4153 [email protected] I, Larry B. Smith, R. Geo, C.P. Geo., am a Registered Geologist and Chartered Professional Geologist, and Manager of Mining & Metals Consulting of AMEC Mining & Metals, Inc. of 6575 Stone Valley Drive in the city of Reno in the state of Nevada. I am registered as a Professional Geologist in the state of Wyoming (PG-324), am a Fellow and Chartered Professional Geologist in the Australasian Institute of Mining and Metallurgy (Registration number 209301) and am a Certified Professional Geologist with the American Institute of Professional Geologists (CPG-10313). I graduated from Boise State University with a Bachelor of Science in geology in 1972 and subsequently obtained a Master of Science degree in Economic Geology from the Colorado School of Mines in 1982. I have practiced my profession continuously since 1972 and have been involved in: mineral exploration for uranium, copper, gold, silver, nickel, lead, zinc, and industrial minerals in the United States, Canada, Mexico and Central America; exploration data evaluation, geological modeling and resource modeling of gold, copper, iron, manganese and industrial mineral deposits in the United States, Canada, Colombia, Chile, Bolivia, Brazil, Greenland, Bosnia and Niger. As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43-101. I am currently a Consulting Geologist and have been so since February 1998. I am responsible for the preparation of the technical report titled Technical Report and Qualified Persons Review, Eagle Rock Quarry Project, British Columbia, dated 18 November 2006 (the ‘Technical Report”) relating to the Eagle Rock Quarry Project located on Vancouver Island, British Columbia, Canada. I prepared Sections 1-15, 18 and 20. I prepared Section 16 using the results of a feasibility study of process designs prepared by Terra Nova Technologies (TNT, and AMEC company). I prepared Section 17 with the assistance of Dr. Stephen Juras, P.Geo. and Chief Geologist, AMEC. I prepared Section 19 with the assistance of Mr. Frank Y. Yu in matters pertaining to materials handling and processing, design of marine facilities and infrastructure, with the assistance of Mr. Mark Pearson, P.Eng. and Mr. P. G. Beaudoin, P.Eng. in matters pertaining to quarry designs, and with the assistance of Mr. David A. Holmes, R.Geo (USA) in matters pertaining to aggregate markets. This report was prepared under my direct supervision. AMEC E&C Services Inc. 780 Vista Blvd., Suite 100 Sparks, Nevada 89434 Tel Fax

www.amec.com

2

I was the Qualified Person responsible for the preparation of the previous technical report on the Eagle Rock property, titled “Technical Report, Preliminary Assessment, Alberni Aggregates Project, British Columbia, dated 4 April 2002”. I have had no other prior involvement with the property that is the subject of the Technical Report. On January 23 and 24, 2002, I visited the Eagle Rock Quarry project on Vancouver Island for the purposes of reviewing pertinent geological data in detail sufficient to support the estimate of crushed-rock resources on the project. A site visit was not necessary as part of this update to the Technical Report because no exploration or site development activities have been undertaken since March 2002. Work undertaken between March 2002 and the present has focussed on engineering designs and environmental studies. I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report and that the omission to disclose would make this report misleading. I am independent of Polaris Minerals Corporation in accordance with the application of Section 1.5 of National Instrument 43-101. I have read National Instrument 43-101 and certify that the Technical Report has been prepared in compliance with that Instrument. I further certify that, as of the date of this certificate, the Technical Report contains all of the information required under Form 43101F1 in respect of the property that is the subject of the report. Dated at Reno, Nevada, this 18th day of November, 2005.

Larry B. Smith

Larry B. Smith, R. Geo, C. P. Geo 780 Vista Blvd., Suite 100 Sparks, Nevada 89434 Tel: (775) 331-2375 Fax: (775) 331-4153 [email protected] CONSENT of AUTHOR TO:

British Columbia Securities Commission Alberta Securities Commission Saskatchewan Securities Commission Manitoba Securities Commission Ontario Securities Commission Commission des valeurs mobilieres du Quebec Nunavut Legal Registry Officer of the Administrator, New Brunswick Nova Scotia Securities Commission Registrar of Securities, Prince Edward Island Securities Commission of Newfoundland Registrar of Securities, Government of the Yukon Territories Securities Registry, Government of the Northwest Territories

AND TO:

Eagle Rock Materials Ltd.

I, Larry B. Smith, do hereby consent to the filing of the technical report prepared for Eagle Rock Materiasl Ltd. titled Technical Report and Qualified Persons Review, Eagle Rock Quarry Project, British Columbia and dated 18 November 2005 (the "Technical Report") with the securities regulatory authorities referred to above. I further consent (a) to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication of the Technical Report by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, and (b) to the publication of the Technical Report and/or excerpts thereof and/or information therein by Eagle Rock Materials Ltd. on its company website or otherwise, and (c) to the use of my name as a Qualified Person in connection with the Technical Report in any continuous disclosure documents or other regulatory documents or filings of Eagle Rock Materials Ltd., in all applicable jurisdictions. I certify that I am not aware of any material fact or material change with respect to the subject matter of the Technical Report, which is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading. th

Dated this 18 day of November 2005.

Larry B. Smith

AMEC E&C Services Inc. 780 Vista Blvd., Suite 100 Sparks, Nevada 89434 Tel Fax

www.amec.com

TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

CONTENTS 1.0

SUMMARY ................................................................................................................................... 1-1 1.1 Introduction ...................................................................................................................... 1-1 1.2 Property Description and Tenure .................................................................................... 1-2 1.3 Geology ........................................................................................................................... 1-3 1.4 Exploration Program and Test Results............................................................................ 1-3 1.5 Mineral Resource ............................................................................................................ 1-4 1.6 Mining .............................................................................................................................. 1-5 1.7 Process............................................................................................................................ 1-6 1.8 Marine Facility and Shipping ........................................................................................... 1-6 1.9 Infrastructure ................................................................................................................... 1-7 1.10 Environmental.................................................................................................................. 1-7 1.11 Markets ............................................................................................................................ 1-8 1.12 Capital Cost ..................................................................................................................... 1-9 1.13 Financial Analysis .......................................................................................................... 1-10 1.14 Conclusions and Recommendations ............................................................................. 1-11

2.0

INTRODUCTION AND TERMS OF REFERENCE ...................................................................... 2-1 2.1 Introduction ...................................................................................................................... 2-1 2.2 Terms of Reference......................................................................................................... 2-3 2.2.1 Aggregate ........................................................................................................... 2-3 2.2.2 Chemical Properties of Aggregate ..................................................................... 2-3 2.2.3 Physical Properties of Aggregate ....................................................................... 2-4 2.2.4 Aggregate Specifications and Testing................................................................ 2-4 2.2.5 Units of Measure ................................................................................................ 2-6

3.0

DISCLAIMER................................................................................................................................ 3-1

4.0

PROPERTY DESCRIPTION AND LOCATION ............................................................................ 4-1 4.1 Location ........................................................................................................................... 4-1 4.2 Mineral Tenure ................................................................................................................ 4-1 4.3 Permits and Agreements ................................................................................................. 4-5

5.0

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ......................................................................................................................... 5-1

6.0

HISTORY...................................................................................................................................... 6-1

7.0

GEOLOGICAL SETTING ............................................................................................................. 7-1 7.1 Regional Geology ............................................................................................................ 7-1 7.2 Local Geology.................................................................................................................. 7-1 7.2.1 General ............................................................................................................... 7-1 7.2.2 Karmutsen Formation ......................................................................................... 7-4 7.2.3 Corrigan Pluton – Granodiorite........................................................................... 7-4 7.2.4 Petrography of Granodiorite ............................................................................... 7-5 7.2.5 Sand and Gravel Deposits ................................................................................. 7-9

8.0

DEPOSIT TYPES ......................................................................................................................... 8-1

9.0

MINERALIZATION ....................................................................................................................... 9-1

10.0

EXPLORATION .......................................................................................................................... 10-1 10.1 Introduction .................................................................................................................... 10-1 10.2 Geological Mapping....................................................................................................... 10-1

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10.2.1 Methods ............................................................................................................ 10-1 10.2.2 Joint Mapping ................................................................................................... 10-2 11.0

DRILLING ................................................................................................................................... 11-1 11.1 Drilling Program ............................................................................................................. 11-1 11.2 Core Logging ................................................................................................................. 11-3 11.3 Core Inspection ............................................................................................................. 11-3 11.4 Data Entry...................................................................................................................... 11-7

12.0

SAMPLING METHOD AND APPROACH .................................................................................. 12-1 12.1 Roadcut and Outcrop Sampling .................................................................................... 12-1 12.2 Drill Core Sampling........................................................................................................ 12-2

13.0

SAMPLE PREPARATION, ANALYSES AND SECURITY ......................................................... 13-1 13.1 Introduction .................................................................................................................... 13-1 13.2 Los Angeles Abrasion Test Protocol ............................................................................. 13-1 13.3 Magnesium Sulphate Soundness Test Protocol ........................................................... 13-2 13.4 Absorption and Bulk Specific Gravity Protocol .............................................................. 13-2 13.5 Point Load Measurements............................................................................................. 13-3 13.6 Geochemical Analyses .................................................................................................. 13-3 13.7 Results – Surface Samples ........................................................................................... 13-4 13.8 Results – Drill Core........................................................................................................ 13-5 13.9 Geochemistry of Surface Samples and Drill Core......................................................... 13-6 13.10 Assay Quality Assurance and Quality Control............................................................... 13-7 13.11 Check Samples ............................................................................................................. 13-7

14.0

DATA VERIFICATION................................................................................................................ 14-1

15.0

ADJACENT PROPERTIES ........................................................................................................ 15-1

16.0

MINERAL PROCESSING AND METALLURGICAL TESTING .................................................. 16-1

17.0

MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES............................................. 17-1 17.1 Mineral Resource Quality .............................................................................................. 17-1 17.2 Mineral Resource Quantity ............................................................................................ 17-2 17.3 Mineral Resource Marketability ..................................................................................... 17-2 17.4 Mineral Resource Classification .................................................................................... 17-3

18.0

OTHER DATA AND INFORMATION ......................................................................................... 18-1

19.0

REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT AND PRODUCTION............................................................................................................................ 19-1 19.1 Open Pit......................................................................................................................... 19-1 19.2 Materials Handling and Processing............................................................................... 19-3 19.3 Marine Facility and Shipping ......................................................................................... 19-4 19.3.1 Shipping Estimates......................................................................................... 19-11 19.4 Infrastructure and Site Layout ..................................................................................... 19-12 19.4.1 Site Location................................................................................................... 19-12 19.4.2 Access Road .................................................................................................. 19-12 19.4.3 Accommodation.............................................................................................. 19-14 19.4.4 Site Preparation, Offices and Other Buildings................................................ 19-14 19.4.5 Surface Water and Drainage.......................................................................... 19-15 19.4.6 Electrical Power Supply.................................................................................. 19-16 19.4.7 ANFO and Explosives .................................................................................... 19-16 19.4.8 Fuel Storage ................................................................................................... 19-16 19.4.9 Processing Plant............................................................................................. 19-16

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TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

19.5

19.6

19.7 19.8

19.4.10 Dock Facilities ................................................................................................ 19-16 Environmental Considerations..................................................................................... 19-17 19.5.1 Introduction ..................................................................................................... 19-17 19.5.2 Biophysical Environment ................................................................................ 19-17 19.5.3 First Nations Consultation .............................................................................. 19-20 19.5.4 Environmental Monitoring............................................................................... 19-21 Marketing ..................................................................................................................... 19-21 19.6.1 Introduction ..................................................................................................... 19-21 19.6.2 Supply-Demand Balance, Major California Markets ...................................... 19-22 19.6.3 Distribution System – Major California Markets ............................................. 19-23 19.6.4 Aggregate Prices – Major California Markets................................................. 19-24 Capital Cost ................................................................................................................. 19-25 Financial Analysis ........................................................................................................ 19-25

20.0

CONCLUSIONS AND RECOMMENDATIONS .......................................................................... 20-1

21.0

REFERENCES ........................................................................................................................... 21-1

TABLES Table 1-1: Table 1-2: Table 1-3: Table 1-4: Table 1-5: Table 4-1: Table 11-1: Table 13-1: Table 13-2: Table 13-3: Table 13-4: Table 13-5: Table 13-6: Table 16-1: Table 17-1: Table 17-2: Table 19-1: Table 19-2: Table 19-3: Table 19-4: Table 19-5: Table 19-6: Table 19-7:

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Materials Quality – Corrigan Granodiorite .......................................................................... 1-3 Eagle Rock Quarry Project – Mineral Resource Summary, 4 April 2002 2005.................. 1-5 Eagle Rock Quarry Project Scheduled Tonnages .............................................................. 1-6 Product Sizes and Percentage of Production..................................................................... 1-6 Summary of Results of Financial Analysis ....................................................................... 1-10 Land Tenure........................................................................................................................ 4-1 Core Holes – Eagle Rock Quarry ..................................................................................... 11-1 Grading of Sample for Los Angeles Abrasion Test .......................................................... 13-1 Sample Grading for Sulphate Soundness Test ................................................................ 13-2 Materials Quality Tests for Quarry Samples..................................................................... 13-4 Material Quality Tests – Corrigan Granodiorite Drill Core ................................................ 13-5 Point Load Values for Drill Core ....................................................................................... 13-6 Geochemistry of Surface Samples ................................................................................... 13-6 Product Sizes and Production Rates ................................................................................ 16-1 Mean and Coefficient of Variation (CV – mean/standard deviation) of Quality Values – Corrigan Granodiorite ....................................................................................................... 17-2 Eagle Rock Quarry Project – Mineral Resource Summary, 4 April 2002 ......................... 17-4 Eagle Rock Quarry Project Scheduled Tonnages (Measured and Indicated Resources)19-2 Mine Equipment Requirements ........................................................................................ 19-2 Product Sizes and Production Rates ................................................................................ 19-3 Rate and Throughput Analysis – Shiploading .................................................................. 19-4 Supply-Demand Balance (1999 to 2020) ....................................................................... 19-22 Summary of Results of Financial Analyses (2002 Preliminary Assessment) ................. 19-26 Results of Sensitivity Analysis (2002 Preliminary Assessment)..................................... 19-27

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TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

FIGURES Figure 4-1: Figure 4-2: Figure 4-3: Figure 5-1: Figure 5-2: Figure 7-1: Figure 7-2: Figure 7-3: Figure 7-4: Figure 7-5: Figure 7-6: Figure 10-1: Figure 10-2: Figure 11-1: Figure 11-2: Figure 11-3: Figure 11-4: Figure 11-5: Figure 11-6: Figure 17-1: Figure 17-2: Figure 17-3: Figure 19-1: Figure 19-2: Figure 19-3: Figure 19-4: Figure 19-5: Figure 19-6: Figure 19-7:

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Project Location Map .......................................................................................................... 4-2 Lease Tenure...................................................................................................................... 4-3 Location of Proposed Quarry, Plant, and Infrastructure ..................................................... 4-4 Proposed Site of Eagle Rock Quarry, Looking North Towards Port Alberni ...................... 5-2 Lower Bench Proposed for Processing Plant Site.............................................................. 5-2 Regional Geology ............................................................................................................... 7-2 Site Geology ....................................................................................................................... 7-3 Corrigan Granodiorite at Q1 Site in Eastern Portion of Proposed Quarry.......................... 7-6 Corrigan Granodiorite in Northeastern Portion of Proposed Quarry .................................. 7-6 Narrow Shear Zone in Granodiorite, Southern Portion of Proposed Quarry...................... 7-8 Sand and Gravel Deposits on Lower Topographic Bench ................................................. 7-9 Materials Quality, Jointing and RQD, Section North 5439750 ......................................... 10-3 Plan Map of RQD Measurements, Surface Sites ............................................................. 10-4 Location of Drill holes and Surface Quarry Samples........................................................ 11-2 Drill Core of Massive Granodiorite from Hole A01-02 ...................................................... 11-5 Drill Core of Granodiorite from Hole A02-02..................................................................... 11-5 Drill Core of Granodiorite from Hole A03-02..................................................................... 11-6 Drill Core of Granodiorite from Hole A04-02..................................................................... 11-6 Drill Core of Granodiorite from Hole A05-02..................................................................... 11-7 Plan Map of Resource Classification ................................................................................ 17-5 Resource Classification, Section North 5439750 ............................................................. 17-6 Resource Classification, Section East 365000................................................................. 17-7 Marine Facility – Navigational Map of Marine Facility Area.............................................. 19-6 Marine Facility, Bathymetry – Hocking Point .................................................................... 19-7 Marine Facility, Site Plan .................................................................................................. 19-8 Marine Facility, Site Cross Section ................................................................................... 19-9 Marine Facility – Cantilever Dolphins ............................................................................. 19-10 Site Layout ...................................................................................................................... 19-13 Watersheds..................................................................................................................... 19-19

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TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

UNITS OF MEASURE % ° °C cm dwt g g/cc 3 g/m h ha HP kg km 2 km KN kW M m 3 m masl mm 3 Mm 2 MN/m Mtpy MW ppm st t tph tpy $M US$ M $/t US$/t US$/st wt %

= = = = = = = = = = = = = = _ = = = = = = = = = = = = = = = = = = = = =

percent degrees degrees celsius centimetres deadweight metric tonnes grams grams per cubic centimetre grams per cubic metre hour(s) hectares (10,000 square metres) horsepower kilograms kilometres square kilometres kiloNewtons kilowatts millions metres cubic metres meters above sea level millimetres millions of cubic metres millions Newtons per square metre millions dry metric tonnes per year megawatts parts per million short tons dry metric tonnes dry metric tonnes per hour dry metric tonnes per year millions Canadian Dollars millions US dollars Canadian dollars per dry metric tonne US dollars per dry metric tonne US dollars per dry short ton weight percent

All dollar figures ($) in this report refer to Canadian dollars unless otherwise stated as United States dollars (US$). Project exploration data use the SI system of measurement and this is retained throughout the report with the exception of discussion of United States markets for aggregate, where sales units are customarily quoted in U.S. dollars per short ton.

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TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

GLOSSARY ASTM CIM GPS IRR NPV NWPA RQD UTM

-

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American Society for Testing and Materials Canadian Institute of Mining and Metallurgy Global Positioning System Internal Rate of Return Net Present Value Navigational Waters Protection Act Rock Quality Designation Universal Transverse Mercator

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TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

1.0

SUMMARY

1.1

Introduction Eagle Rock Materials Ltd. (ERML), which is owned 70% by Polaris Minerals Corporation (Polaris) and 30% by First Nations commissioned AMEC E&C Services Limited (AMEC) to provide an independent Qualified Person’s Review and Technical Report for the Eagle Rock Quarry Project, Vancouver Island, British Columbia. This report represents an update of the Technical Report, Preliminary Assessment, Alberni Aggregates Project, British Columbia, dated 4 April 2002, originally commissioned by Polaris. Mr. Larry B. Smith R.Geo (USA), Manager of Mining and Metals Consulting for AMEC, served as the Qualified Person responsible for preparation of the updated Technical Report as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects, to support disclosure of Mineral Resources as of 31 March 2003. The format and content of the report are intended to conform to Form 43-101F1 of National Instrument 43-101 (NI 43-101) of the Canadian Securities Administrators. Frank Y Yu, P. Eng. assisted Mr. Smith in matters pertaining to materials handling & processing, marine facility, infrastructure, and 2002 cost estimates. Mr. Henri B Letient, P. Eng., assisted in matters pertaining to environment. Dr. Stephen Juras, P.Geo., carried out resource estimates and developed resource classification criteria. Mr. Mark Pearson, P. Eng., assisted in matters regarding pit designs, mining and financial analyses. Quarry designs were updated in 2003 by P.G. Beaudoin, P. Eng., Steven Hodgson P. Eng., and Mark Pearson, P. Eng. as part of a feasibility study managed by AMEC E&C Services Limited. The feasibility study was not formally completed due to a strategic decision by ERML to put the project on hold in favour of developing a separate natural sand and gravel deposit. The Eagle Rock Quarry Project is focused on development of a granodiorite resource that would be mined, crushed, and shipped to markets in California and other Pacific Coast destinations where shortages of high quality concrete and asphalt aggregate exist. The intended source is a granodiorite pluton located at Hocking Point on the Alberni Inlet, approximately 15 km south of Port Alberni. Exploration work completed to date demonstrates that the granodiorite exceeds ASTM standards for concrete and asphalt aggregate in regards to abrasion resistance, sulphate soundness, and water absorption. Concurrent with exploration studies, ERML prepared a Preliminary Assessment of the project. The Assessment included an evaluation of aggregate markets in California, review of options for shipping, consideration of appropriate mining, processing, and reclamation plans, evaluation of social, economic, and environmental planning factors, development of preliminary capital and operating costs and preliminary financial modeling of the proposed operation.

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TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

Information for the review and this technical report were obtained from ERML in Vancouver, British Columbia, a field office in Port Alberni, British Columbia and at the project site. Larry B. Smith conducted a site visit on 23 and 24 January 2002. Mr. Frank Y Yu and Mr. Henri F Letient conducted the review of the Preliminary Assessment, and Mr. Yu performed an independent site visit on 15 March 2002. ERML also commissioned studies of major aggregate markets in California. D.A. Holmes, R. Geo (USA) completed these studies in March 2002 and updated the information in July 2005. A site visit was not necessary as part of the update of the technical report because no additional exploration or development had been undertaken since March of 2002. Additional work consisted of engineering designs, market research, and environmental studies. ERML commissioned AMEC in early 2003 to undertake a feasibility study for preparation of a final development plan, incorporating capital costs for infrastructure, crushing, conveying and loading facilities, and a revised mine plan. The feasibility study was not completed in its entirety because Polaris made a corporate decision to develop the Orca Sand and Gravel Project, located near Port McNeill, Vancouver Island, ahead of the Eagle Rock Quarry. Capital cost updates, changes in the proposed mine plan and the results of environmental studies developed in the feasibility work are provided in this update of the Technical Report.

1.2

Property Description and Tenure ERML holds a 50 year crown lease for exploitation of crushed rock and sand and gravel resources covering the entire area of granodiorite, sand and gravel being considered for mining. The property includes minor occurrences of sand and gravel which are not considered suitable for commercial development but may be used as an aggregate for site development and construction. The lease (District Lot 2173) covers 339 ha and commences November 1, 2005. Mineral claim and lease boundaries have been surveyed. Polaris originally staked two foreshore lease applications (FLAs) of 25 ha and 6 ha to provide docking facilities north and south of Hocking Point. ERML subsequently dropped the 25 ha lease to the south in favour of extending the 6 ha lease to 12.5 ha to the north of Hocking Point where water conditions were much better. On 16 January 2002, an agreement was approved by the Port Alberni Port Authority under which ERML will assume the lease of the southern portions of existing Lease Lots 1688A and 1688B thus extending the 6 ha FLA to the north. This transfer of rights is conditional upon ERML receiving a Project Approval Certificate under the BC Environmental Assessment Act. This foreshore area is located to the north of Hocking Point and is suitable for ship loading according to a sonar survey.

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TECHNICAL REPORT AND QUALIFIED PERSONS REVIEW EAGLE ROCK QUARRY PROJECT, BRITISH COLUMBIA

1.3

Geology The Eagle Rock Quarry Project is located in the southern part of the Insular Belt of the Canadian Cordillera. The region is underlain by Paleozoic, Mesozoic and Cenozoic age sedimentary, igneous, and metamorphic rocks, which are affected by a northwesterlyaligned structural fabric. Early Jurassic (181 to 142 Ma) granitic plutons of the Island Intrusive suite intrude all layered sequences. The plutons occur as a series of relatively small, three to ten kilometre long stocks, most commonly located within the cores of anticlines. One of these plutons, termed the Corrigan intrusive, underlies a 3 km2 area immediately west of Hocking Point. The Corrigan pluton intrudes mafic volcanic rocks of the Karmutsen Formation and is a granodiorite to potassium quartz diorite. Jointing is weakly to moderately developed. Small zones of felsite and mafic inclusions are locally present. Shearing and intense fracturing are limited to narrow fault zones.

1.4

Exploration Program and Test Results Polaris carried out an exploration program from January to March 2002. The program was designed to determine the suitability of the Corrigan granodiorite for use as crushed-rock aggregate and to evaluate the geological continuity of the physical and chemical characteristics of the rock throughout the proposed quarry area. The exploration program included detailed mapping of geological and geotechnical features, collection of surface samples for materials testing, the drilling of nine vertical core holes, sampling cores for materials testing, analysis of trace, minor and major elements, and thin section studies. This work revealed that the Corrigan granodiorite exceeds ASTM standards for concrete and asphalt aggregate in regards to Los Angeles abrasion resistance, sulphate soundness, water absorption and lack of chemical contaminants. Average results are shown in Table 1-1.

Table 1-1:

Materials Quality – Corrigan Granodiorite

Test LA Abrasion Resistance Magnesium Sulphate Soundness Water Absorption Bulk Specific Gravity

No. Samples

Average

ASTM Standard

ASTM Standard

ASTM Reference No.

17 16 14 14

17.8 0.44 0.37 2.66

< 50