TONKIN SPRINGS

Royalty Division                                                                                                                                    
Tonkin & Pat Canyon Projects: Eureka County Nevada

In July 2011, the Company sold its interest in the Tonkin Springs project to US Gold Corp. for $5,850,000. Prior to this sale, the Company had leased the interest to US Gold in exchange for a 5% GSR with annual advance minimum royalty payments, recoverable from production. The Company retains a 1.4% NSR on all production from the claims sold in excess of the previously reported resources.