QRX GOLD PROSPECT, Cariboo B.C.

1136.48 hectares. The property is underlain by Upper Triassic Nicola Group basaltic volcanics, intersected by a northwest-southeast trending rock unit of argillite, greywacke, wacke and conglomerate turbidites of the Lower Jurassic Nicola group, with a maximum width of between 800m and 1200m at surface.

The subject property occupies an area, underlain by crown land conforming to certain sections of the former Cariboo 1, Cariboo 4 and Short Stuff 3 mineral claims, as described in ARIS assessment reports 10650, 11556 and 13881, which were performed at the behest of E & B Explorations Inc. in 1982, 1983 and 1985, respectively, completing preliminary geological, geochemical and geophysical mapping work on the property.

From ARIS 13881: Previous work provided geological and geochemical information over much of the property from which a geological setting similar to the adjacent QR property (formerly) of Dome Mines was recognized. Several outcrop areas with similar alteration to the 4R deposit and moderately anomalous gold geochemistry are separated from each other by large areas of no outcrop with abundant glacial till cover. An Induced Polarization Survey was conducted over and between two of the more intense alteration-anomalous gold geochemical targets in an attempt to map sulphide bearing targets beneath the tills. Three anomalies were identified and are described relative to known geology and geochemistry. A coincident magnetic high and cluster of VLF-EM anomalies located in a previous survey in the eastern portion of the property was examined by a geochemical grid. A total of 207 soils and seven rock chips were collected on the property. Results are encouraging. Additional geochemical sampling and geological mapping is warranted followed by percussion drilling. Additional Induced Polarization Surveying should be considered prior to drilling.

Adjacent Properties include a gold prospect at the west border, the QR Mine at the south border:

1100 m. to the west, gold mineralization has been reported, documented to in ARIS 14860: Gold occurs in propylitized breccias and tuffs of the Upper Triassic Nicola Group at the contact with a younger series of argillites and siltstones within a halo of altered rock surrounding a small diorite stock of Lower Jurassic age. Drilling on the north zone returned encouraging results where one hole intersected propylitized basalt running 27.6 grammes/tonne gold.

Directly adjacent at the southwest border of the QR-X property, the QR Mine, described in Minfile 093A 121) is hosted by a thick succession of Upper Triassic basaltic, volcanic, volcaniclastic and epiclastic rocks of the Nicola Group. Basal flows, conglomerates and breccias grade upward into calcite-cemented tuffs and lapillistones. Calcareous black argillite and siltstone overlie the volcanic sequence. The pyroclastic rocks contain 5 to 20 per cent pyrite as delicate framboids and banded rip-up clasts. The sedimentary rocks contain up to 10 per cent fine-grained, disseminated pyrite. The whole sequence has been intruded by the Early Jurassic, zoned, monzodiorite QR stock and hornblende porphyry dikes. Mineralization, consisting of native gold and sulphides, occurs in 3 discrete zones. The Main zone is a discordant, 300-metre long, steeply plunging, northerly dipping (at 50 degrees) tabular body. The Main zone is truncated at depth by Wally's fault. Massive propylitic alteration, consisting of epidote, carbonate and chlorite occurs in the lapillistones and coarse tuffs. Disseminated to massive lenses of pyrite with 1 to 5 per cent associated chalcopyrite occurs within zones of propylitic alteration. The majority of the gold occurs in propylitically altered carbonate-rich rocks associated with pyrite mineralization. Fracture networks and stockworks in the basaltic flows, conglomerates and breccias contain 2 to 5 per cent pyrite with some associated gold and minor calcite. The Main zone contains an estimated 616,760 tonnes grading 4.4 grams per tonne gold will be mined by open-pit methods (Information Circular 1996-1, page 5). The faulted extension of the Main zone, the North zone, occurs in the footwall of Wally's fault. Another zone, the East zone, appears to be a small unfaulted body. The grade of the North and East zones are comparable to the other zones but the ore is too deep to be economic at present. The West zone, an elongate tabular body with a slight synclinal shape, is composed of propylitized basaltic tuff, breccia and interbedded siltstone. Discontinuous seams and lenses of massive pyrite with subordinate pyrrhotite, chalcopyrite and trace galena and arsenopyrite occur in these rocks.

In late 2009 International Wayside Gold Mines purchased the QR Mine and Mill and in January 2010 changed their name to Barkerville Gold Mines Ltd. Early in 2010 Barkerville restarted mining operations at QR and in September 2010 announced the production of the first gold bar weighing 9.77 kilograms. The company expects to produce approximately 1,500 kilograms in their first year of production (Press Release September 15, 2010).