On August 5, 2004 the Corporation entered into a letter of intent with Ernest S. Peters, President of the Corporation and John R. Poloni, a Director of the Corporation pursuant to which the Corporation received the right to purchase a 100% interest in and to 13 minerals claims consisting of 197 units located in the Liard mining division of the Province of British Columbia (subject to a 2.5% net smelter return royalty). Subsequently, additional claims have been added and the Property now consists of 26 claims encompassing approximately 94 square kilometers. The terms of acquisition were amended by a letter agreement dated November 1, 2004.

The terms of acquisition as set out in the amended letter of intent are subject to the Company completing financing and spending no less than $6,000,000 for the purpose of commencing a minimum of a three phased exploration program on the claims over a period of seven years ending October 31, 2011. In addition, the Corporation is required to pay the aggregate sum of $350,000 and issue an aggregate of 3,000,000 shares in annual installments of $50,000 and 500,000 shares each. The Corporation will earn 30% after it spends $2,000,000; a further 30% after it spends the next $2,000,000 and a final 40% after it spends the last $2,000,000. 1.5% of the 2.5% reserved royalty may be purchased for $2,000,000. This acquisition received the approval of the Company’s disinterested shareholders at the Company’s AGM held on January 21, 2005 and regulatory approval was received on November 15, 2005. The Company completed a non-brokered private placement financing on April 8, 2005 which raised a total of $567,600.00 and a further financing on November 15, 2005 of $989,361.00 which enabled the Company to fulfill the obligations of the Option Agreement to commence earning a 100% interest in the Property.

Prior to entering into the letter of intent, the Corporation commissioned the preparation of a Valuation report which was authored by Charles K. Ikona, P.Eng. and dated May 5, 2004.

The following excerpts from Mr. Ikona’s Valuation report:

The property was staked by the vendors in 2002 after being continuously held since 1970. Extensive work was conducted on the property between the mid 1960’s and 1982. The property has essentially lain idle since that time. Work consisted of extensive geochemical surveying, Geophysical programs and Diamond drilling (59 holes totaling 12.233 m.). Geochemical and Geophysical anomalies indicate the possible presence of mineralization extending some 10 km on the property. Within this distance drilling has intersected mineralization over some 5.2 km, with possible strike extensions not yet drill tested. Good correlation between geochemical, geophysical and drill results are apparent.

Mineralization is intrusive hosted copper-molybdenum with minor values in precious metals occurring in border phases along the southern margin of the Eaglehead pluton, a quartz monzonite to grandodiorite complex of Early Jurassic age some 60 square km in size. Intersections containing copper mineralization were encountered in 54 of the 59 holes drilled, some of which were extensive 2 holes were lost in overburden and 3 holes encountered no values. Although drilling has been extensive, much of it has been on a reconnaissance basis and correlation between intersections and sections is not sufficient to assign mineral resource estimates to the mineralization.

New Eaglehead Photos