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a 100 percent interest and a 100 percent working interest in the additional remaining 19 mineral dispositions in GC#45826. Shore owns a 100 percent interest and 100 percent working interest in an additional 261 mineral dispositions in the immediate area, for a total of 284 mineral dispositions covering 166,196 hectares. All mineral dispositions have been legally surveyed and 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. The Crown retains all surface rights in the area of the Star mineral dispositions; however, Shore and/or the FALC-JV have obtained all the necessary exploration permits to allow exploration to proceed.

General Geology

The property lies near the north-eastern edge of the Phanerozoic Interior Platform that extends from the Rocky Mountains in the west to the Precambrian Canadian Shield in the northeast, close to Lac La Ronge. The Phanerozoic cover consists of basal Cambro-Ordovician dolomitic carbonate rocks and clastic sedimentary rocks succeeded by Cretaceous shale and sandstone. The entire area is overlain by Quaternary glacial deposits ranging from 40 metres in thickness close to the Saskatchewan River and up to 120 metres in thickness elsewhere. In the FALC area, a northwest-trending kimberlite province that is approximately 50 kilometres long by 30 kilometres wide has been identified. Sixty-nine kimberlitic bodies that are distributed along at least three linear trends have been discovered to date in the FALC kimberlite province. Kimberlite horizons form stacked, sub-horizontal lenses, or shallow zones of crater-facies kimberlite of large lateral extent. The majority of the kimberlite bodies drilled to date lie just below the till/bedrock interface. The areas of the individual bodies range from 2.7 hectares to approximately 350 hectares.

Kimberlite Geology

Based on surface core drilling and underground mapping of the various kimberlite phases encountered in Shore’s underground bulk sampling program, the Star Kimberlite consists of two distinct types of kimberlite: 1) eruptive kimberlite phases; and, 2) kimberlitic sedimentary rocks.

The eruptive kimberlites are sub-divided into five main phases: Late Joli Fou Kimberlite (LJF), Mid Joli Fou Kimberlite (MJF), Early Joli Fou Kimberlite (EJF), Pense Kimberlite (PPK), and Cantuar Kimberlite (CPK). Each phase has distinct physical and chemical properties that enable their mapping and stratigraphic correlation in three dimensions.

The oldest kimberlite phases within the Star Kimberlite are enclosed by Cantuar Formation sandstone, siltstone, and mudstone and are thus termed Cantuar kimberlites. Cantuar kimberlites are typically thin (less than 40 metres and generally less than 20 metres), sheet-like, pyroclastic deposits that occur as three and possibly four chronostratigraphic deposits within the Cantuar Formation. Two potential Cantuar-age kimberlite pipes occur on the southern portion of the Star Kimberlite. These pipes cross-cut older Cantuar kimberlites and are, in turn, cut by the EJF. The main vertical feeder vents are less than 150 metres in width.

P&E Mining Consultants NI 43-101 Technical Report No 159 Shore Gold - Star Diamond Project

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