Alexander Project, Red Lake, Ontario

Project Overview

Conquest's Alexander Project in the Red Lake Gold Mining District of northwestern Ontario, lies immediately east of Goldcorp's high grade Red Lake and Campbell mines and is almost completely surrounded by Goldcorp's claim holdings. The Red Lake mine complex operations at Balmertown collectively contain over 28 million ounces of gold (reserves plus historic production). The Red Lake Mining Division ranks first in Canada for grade and fifth in terms of gold reserves and production after the Porcupine (Timmins), Kirkland Lake, Hemlo and Val d'Or camps.

The Alexander Property boundary lies less than 1,000 metres east of Goldcorp's production shaft and adjacent to Goldcorp's Far East Zone exploration target.

Conquest's property covers over 4,000 metres of favourable geology in the heart of the Red Lake camp where Conquest's target is a repetition or extension of the gold mineralization present at the two Red Lake gold mines.

The Alexander Property lies almost entirely within the southeast-trending deformation zone known as the "Mine Trend", one of three regional structures containing the major gold deposits in the Red Lake camp. Recent work in the Red Lake district demonstrates a close relationship between gold mineralization and an unconformity, or time gap, within the sequence of rocks. This unconformity is now distorted by folding and about 3,500 metres of this feature lie on the Alexander claims.

In a June 16, 2004 News Release, Goldcorp Inc. announced that exploration of the sulphide targets on their Red Lake mine property is focused on two goals: upgrading existing resources to increase the reserve base and exploring new areas for mineralization in order to increase the base of resources.

Far East Zone Approximately 240,000 ounces of gold within sulphides have been identified by Goldcorp (June 16, 2004) in the Far East Zone from the 16 level, at a depth of 2,300 ft (700 m) below surface. Drilling from the 26 and 34 levels is being directed toward identifying significant extensions of sulphide mineralization in the Far East Zone. According to Goldcorp's News Release (June 16, 2004), hole 26L1325 returned the furthest easterly extension of the Far East Zone reported to date, on section 94+75E, with results such as 0.89 opt (30.5 gpt) over 8.0 ft (2.44 m) and 2.18 opt (74.7 gpt) over 5.0 ft (1.52 m) at a depth of 4,740 ft (1,440 m).

On November 24, 2009, in a Press Release entitled: “Goldcorp Provides Update On 2009 Exploration Program,” Goldcorp Inc. announced that: “A new and growing area of high grade gold called the Far East Zone has been identified up-plunge from the High Grade Zone.”

Goldcorp further stated: “Up-plunge and to the east of the Red Lake High Grade Zone lies an underexplored area called the Far East Zone. Assay results in 2009 indicate an ore grade gold zone at the 16 level that will continue to be tested as drilling moves closer to the surface.”

Results from two underground exploration drill holes conducted in Goldcorp’s 2009 program were reported in Red Lake Drilling Results as: “29.83 g/t gold over 9.24 metres and 31.70 g/t over 4.00 m” (reported over approximate true widths).

Conquest interprets these high grade intersections to be located approximately 400 metres from Conquest’s western property boundary at approximately 700 metres depth. Goldcorp’s continued exploration in the area between the Balmer Complex shaft at the Red Lake gold mine and Conquest’s Alexander property continues to demonstrate highly prospective, mineralized horizons in rocks which Conquest believes are similar to those which have been identified from surface to 700 metres vertical depth across the Alexander property.

Goldcorp section line 94+75E is roughly equivalent to Conquest's grid line 1+00E bringing the easterly extent of the Far East Zone over 600m to the east of the Conquest-Goldcorp claim boundary although remaining to the south of the Alexander property. Conquest considers the extension of ore grade mineralization up to 1,600 metres east of Goldcorp's production shaft as being very significant for the Alexander property. It confirms the potential for gold mineralization on parallel structures which cross the Alexander property as evidenced by results obtained in Conquest's drill programmes.

The Company has developed a three year exploration strategy for the Alexander property which includes a significant programme of deep drilling to follow up on the near surface gold mineralization and to evaluate the potential for the Goldcorp "Mine Sequence" to be overfolded on to the Property on the southern limb of the Balmer Syncline.