Crescent REE Assessment Report - April 2013

The Crescent Property covers the former Tantalizing and PEG claims in southeastern British Columbia, and comprises 933 contiguous acres located approximately 3 kilometres northwest of Crescent Valley, BC and 24 kilometres west of Nelson, BC. The project area also includes another REE prospect located approximately one mile due east of the Crescent and covering an additional 466 contiguous acres formerly known as the JAK claim group. The local infrastructure is excellent, as the property is situated near the Slocan River, is road accessible, and close to powerlines.

Historical assessment work dating back to 1956 and on file with British Columbia have documented that the Crescent Property contains pegmatites with high grade pockets of niobium and tantalum. According to BC MINFILE 082FSW272, “two of the larger quartzose pegmatite-greisen zones, 300 metres apart, measure 20 by 30 metres and 8 by 30 metres. They consist predominantly of coarse-grained feldspar with minor quartz and muscovite and contain niobium-tantalum oxide minerals. The black radioactive minerals are likely samarskite and ilmenorutile or niobium rutile. They occur as disseminations in reddish feldspar and patches up to 5 centimetres across. A chunk of samarskite assayed 5.8% uranium, 2.5% thorium, 25.7% niobium and 9.8% tantalum (Minister of Mines Annual Report 1956, page 77). In 1967, a sample from the area assayed 2.2% niobium, 0.14% uranium and 0.32% yttrium (Metcalfe, 1967). A more recent grab sample from 1985 assayed 1.25% Nb2O5 and 0.14% Ta2O5 (Assessment Report 14652).”

In 2002, a work program was conducted on the adjacent PEG claim 300 metres to the north of the Crescent Nb-Ta occurrence and presently covered by the Company’s claim area. One of the objectives of the 2002 program was to assess the presence of rare earth elements (“REE”). Eight rock geochemical samples and one silt sample were collected and analyzed by Acme Laboratories using an ultratrace ICPMS and by Actlabs using neutron activation for Ta, Nb, Cs, Rb, Sn, Be, Li, U, Th, Sr, La, T, Ga and REE’s. In general, the samples consisted of coarse grained pegmatitic or megacrystic potassium and plagioclase feldspars and quartz with minor amounts of micaceous minerals. Some samples were a coarse grained leucocratic biotite quartz monzonite. Geochemical results indicate anomalies in Ta, Nb, Rb, Be, U, Th, La, Ti and REE’s.

The assay tables contained in BC Assessment Report 26855 reports anomalous indications of almost all known REE’s. In particular, sample number 20773 collected from the southern portion of the claim closest to the Crescent Nb-Ta occurrence contained 7.4 ppm Ta, 5.69 ppm Nb, 3.4 ppm Be, 102.5 ppm U, 501.4 ppm Th, 99.0 ppm La, and highly anomalous REE’s. Sample 20770 was anomalous for Th (81.7 ppm), La (91.0 ppm), and some of the REE’s. Sample 20772 contained 26.6 ppm Rb, 1.9 ppm Sn, 11.9 ppm Li, 29.6 ppm Sr, 0.103% Ti, 6.1 ppm Ga and some REE anomalies. The table below shows the best composite assay results from the samples, including several minerals often associated with REE deposits.

Name	Symbol	PPM	Type*
Lanthanum	La	99.00	LREE
Cerium	Ce	206.40	LREE
Praseodymium	Pr	29.58	LREE
Neodymium	Nd	109.57	LREE
Samarium	Sm	45.21	LREE
Europium	Eu	0.75	HREE
Gadolinium	Gd	42.48	HREE
Terbium	Tb	5.80	HREE
Dysprosium	Dy	28.16	HREE
Holmium	Ho	3.71	HREE
Erbium	Er	10.40	HREE
Thulium	Tm	1.76	HREE
Ytterbium	Yb	14.04	HREE
Lutetium	Lu	1.72	HREE
Yttrium	Y	148.88	HREE
Strontium	Sr	29.60
Titanium	Ti	1490.00
Gallium	Ga	6.40
Cesium	Cs	1.07
Rubidium	Rb	53.90
Beryllium	Be	3.40
Lithium	Li	15.10

* LREE stands for light rare earth elements (La-Sm)
  HREE stands for heavy rare earth elements (Eu-Y)