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3.0

PROPERTY DESCRIPTION AND LOCATION

3.1

LAND TENURE

The Star Kimberlite and associated infrastructure are located within mineral disposition S- 132039 in Section 18 of Township 49, Range 19, west of the 2nd Meridian. Township 49 is located within the Rural Municipality of Torch River. This mineral disposition is, in turn, located within claim block GC#45826, which comprises 23 contiguous mineral dispositions totalling 9,280 hectares. Shore owns a 100 percent working interest in these claims subject to a Net Profit Interest (“NPI”) on 4 of the original claims as detailed in Section 3.3 below. Shore owns a 100 percent interest and a 100 percent working interest in the additional remaining 19 claims in GC#45826.

Shore owns a 100 percent interest and a 100 percent working interest in an additional 261 claims in the immediate area, for a total of 284 claims covering 166,196 hectares Figure 3.1. As shown in Table 3.1 and Table 3.2 all claims are in good standing as of the effective date of this report.

Shore also holds an interest in the FALC-JV, which is partially contiguous with the Star Diamond Project. Two of the mineral dispositions within the FALC-JV are considered to be part of the Star Diamond Project, namely S-127109 and S-127186, which lie to the north and west of S-132039. These two mineral dispositions are part of grouped claim block GC#44961 within the FALC-JV, and are included in Table 3.2. The Crown retains all surface rights in the area of the Star Kimberlite mineral dispositions.

Shore’s claim block GC#45826 has been legally surveyed in accordance with the Saskatchewan Mineral Disposition Regulations of 1986, Part IV, Article 30(1)(d), which coincides with boundaries of the land survey system pursuant to the Saskatchewan Land Surveys Act and/or with the boundaries of existing surveyed land parcels.

As per Saskatchewan Mineral Disposition Regulations, 1986, Sask. Reg. 30/863, each claim may be held for two years and, thereafter, from year to year subject to the holder expending the required amounts in exploration operations on the claim lands. There are no charges for the first year of the claim; there is a $12 per hectare fee for the second to tenth year and a $25 per hectare fee for every year thereafter. As Saskatchewan Ministry of Energy and Resources accepts assessment work as credit instead of paying the yearly fees, most of the claims have enough assessment credits to keep them in good standing for several years.

From financial data supplied by Shore, it appears that sufficient exploration expenditures have been made to date to ensure that the claims within the main claim block, GC#45826, are protected for at least seventeen years. The Phase 1 through Phase 3 work programs will be sufficient to keep the claims in good standing for several additional years.

3

Under the Crown Minerals Act, S.S. 1984-85-86, c-50.2.

P&E Mining Consultants Inc. NI 43-101 Technical Report No 159 Shore Gold Inc. - Star Diamond Project Resource Estimate Update

Page 8 of 109

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