LG DIAMOND PROPERTY

LG DIAMOND PROPERTY, Quebec

During the year ended December 31, 2015, the Company entered into an agreement to acquire the LG Diamond Project located in the James Bay Region of Quebec. As consideration, the Company issued 10,000,000 common shares at a fair value of $0.01 each and granted a 2% NSR to the vendor. One half, or 1%, of the NSR can be bought back for $1,000,000 and the remaining 1% for $2,000,000.

The property consists of 7 claim blocks, each centered on a circular magnetic anomaly that could represent a kimberlite. The geological environment is favourable for diamantiferous kimberlite and lake sediments near the magnetic anomalies contain kimberlite indicators. Exploration agreements are in place with local First Nations Groups.