The Swamp Point aggregate property is located in northwestern British Columbia, 50 km south of the town of Stewart. It covers land on the east side of Portland Canal, a large fjord that separates British Columbia from the southern Alaska Panhandle. Currently Ascot Resources Ltd. is developing a Mine on this property. The Swamp Point Aggregate Mine is a sand and gravel mine. The Mine will export sand and gravel to west coast North American markets by ships and barges. Site access is by air or water. No road access exists to the site and none is planned.

The Swamp Point aggregate property is located in northwestern British Columbia, 50 km south of the town of Stewart. It covers land on the east side of Portland Canal, a large fjord that separates British Columbia from the southern Alaska Panhandle. The property is centered on Latitude: 550 28' N Longitude: 1300 03'W. Map coverage is provided by the Nass River (103P & 103 O) 1:250,000 map sheet and 103P/5 1:50,000 map sheet.

The Company has a 100% interest in a Licence of Occupation covering a sand and gravel deposit, a Foreshore Licence covering part of the foreshore area beside the deposit and two mineral claims which in part underlie the gravel deposit.

Rights to the sand and gravel deposit are covered under an agreement between the Province of British Columbia and the Company dated January 15, 2004 which grants Licence of Occupation number 740560 for the purpose of quarrying, digging or removal of gravel and uses ancillary to quarrying such as sorting, crushing and stockpiling. The agreement is for a 5 year period. Conditions of the agreement include a first year fee of $500.00 plus a royalty on production of $1.00 per cubic metre. An annual fee will be charged, based on the value of the land. This fee and royalty can be changed in subsequent years by the Province. The Licence of Occupation covers an area of approximately 97 hectares. Foreshore License 634908 has an area of approximately 5.9 ha. and is granted to the Company for an initial period of five years. The Foreshore License is required for the construction of any barge and/or ship loading facilities.

Rights to develop a deposit for production of aggregate can be acquired under a Licence of Occupation for 5 years, and can be extended by a replacement Licence for up to 10 years, and further extended through a Lease for up to 20 years. The minimum production royalty is $1.00 per cubic metre. Before a sand and gravel deposit can be put into production, a Mines Act permit approving the Mine Plan and Reclamation Program must be obtained. If an aggregate pit has a production capacity of greater than 500,000 tonnes/year during at least one year of its operation or over a period of four or more years greater than 1 million tonnes are excavated, the project requires an environmental assessment under the British Columbia Environmental Assessment Act. Projects which require permits from Federal agencies may also require an environmental assessment under the Canadian Environmental Assessment Act. Approvals under the Water Management Act and Waste Management Act may also be required.

Swamp Point is a remote location, and access to the site is by boat, float plane or helicopter. There is no access to the site by road, and none is envisioned. Rough roads built to support logging transect the property. Small barges can be landed on the south beach area, which has a road connecting to other roads on the property. The town of Stewart, located 50 km to the north at the end of the Portland Canal, has regular ocean freighter traffic. The largest community in the North Coast area is Prince Rupert with a population of approximately 15,000 people located 130 km to the south. Prince Rupert is the world's second deepest ice-free harbour and a major industrial and marine supply centre. Swamp Point is within the claimed traditional territories of both the Nisga'a and Tsimshian people.

Swamp Point is located along the Portland Canal within the Coast Mountain ranges. The region is characterized by a maritime climate, with warm winters, cool summers and heavy precipitation. The sand and gravel deposit underlies a 150 m high terrace on the east side of the Portland Canal and slopes towards the coastline. Elevations on the property range from sea level to 160 metres. East of the property, the slope steepens abruptly along the flank of 1300 metre high Mount Tournay. Two gravel beaches occur in the southern part of the property. These are separated by a low rocky point (up to 10-15 m high). In this area, there is a limited width (10 m) sub tidal bench, beyond which there are steep submarine slopes and deep water conditions. The rocky point is the site for a proposed deep sea loading facility.

The site is primarily covered by immature coniferous (cedar and hemlock) and deciduous vegetation with a wet muskeg area in the central part of the property. Almost all of the area has been previously logged, and only in an area of steep slopes above the shoreline in the northwest part of the property is any mature forest left standing. Mammals found in the area include grizzly and black bears, mountain goat, black-tailed deer, moose, wolverine and various rodents. The project area is also home to various birds and amphibians.

Three small creeks drain the property area. One of these, in the south part of the property provides limited rearing habitat for juvenile Coho and Dolly Varden. A washed out bridge deck located approximately 70 m above the high-high tide line acts as a barrier to fish passage. The stream bifurcates immediately downstream from the washed-out bridge deck, with both stems discharging to tidal waters on South Beach. Upstream of the bridge deck, there is an additional 50 m of potential fish habitat prior to a series of impassable waterfalls. The other creeks are not fish bearing within the property, though one creek does provide fish habitat to the north of the property boundary. This creek is a tributary of Donahue Creek. The main stem of Donahue Creek is located north of the property and is a major stream that supports salmon and trout species. It discharges into Portland Canal through an estuary which is environmentally-sensitive. Development will not affect Donahue Creek and all development is being planned to avoid impacts on fish values.

The Swamp Point area is underlain by the western margin of a 14 by 10 km roof pendant within the Tertiary Coast Plutonic Complex. The rocks within the pendant are metamorphosed sedimentary and volcanic rocks commonly correlated with the Lower Jurassic Hazelton Group. Mineralization in the area includes several quartz veins containing copper, gold and silver located to the south of the Swamp Point aggregate deposit. The Anyox copper mine, smelter and town site were located 15 km ESE of the property. Bedrock exposure is mostly limited to the shoreline and the steep slopes in the northwest part of the property. Rock types reported to date include argillite, green fine grained volcanics or intrusive, limestone and hornblende schist. The surficial geology generally was mapped as a large glacial outwash complex above present Glaciofluvial deposits appear to compose most of the terrace or plateau-like landform at Swamp Point and form most of the estimated reserve of the Swamp Point property.

Exploration History

The Swamp Point area has been thought to contain a sand and gravel deposit for several decades. However, there does not appear to have been any significant work completed to evaluate the deposit prior to the work undertaken by the Company.

Exploration of the Swamp Point area was initiated by the previous owners in October 2002. Air photographs and topography were analyzed and a preliminary cross-sectional model of the gravel deposit was developed. In November 2002, a three-day aerial and ground survey was conducted across the lands of interest and samples of material were obtained from shallow hand-dug excavations, and from bank exposures. These were evaluated in a program of laboratory testing to assess engineering properties of the materials. This preliminary testing indicated that the materials had potential for use as aggregate and a program for further evaluation of the property was developed.

A geophysical survey of the target area was conducted in December 2002. Seven seismic lines totaling 4.2 line km were completed. The geophysics indicated a significant body of unconsolidated sediments south of Donahue Creek, with seismic velocities consistent with a granular deposit. This zone was indicated as having a maximum thickness of some 95 m and was centered on the flat-topped muskeg zone. In March 2003, 9 Becker drill holes totaling 402 m were completed and 4 test pits using a tracked excavator were excavated. Hole depths ranged from 10 to 84 m. Information obtained from the drilling and test pits generally confirmed the inferred geology from earlier phases of site reconnaissance. Approximately 10 tonnes of material from the drill holes and test pits was transported to Vancouver for testing. Testwork consisted of characterization of grain size distribution (by means of Sieve Analysis tests), augmented by a series of standard engineering index tests. Results provided preliminary indications that the sand and gravel material is suitable for production of aggregates meeting typical Canadian and American specification requirements.

Based on sieve analyses of samples obtained from drill holes, the deposit comprises approximately 51% sand, 44% gravel, and 5% silt. Boulders ranging from 0.5 m to 3.5 m in diameter were observed at surface and noted in drill holes. Using information from surface, drill holes and the seismic survey, an Inferred Resource of 66 million tonnes of sand and gravel was calculated for the deposit. This is based on an estimate of 30,000,000 m3 for the volume of mineable sand and gravel and an in-situ density (or Conversion Value) of 2.2.

The primary market identified for the Swamp Point project is the coastal area of California. Representatives of the Company have contacted a number of aggregate consumers in San Francisco and Los Angeles and have had in-depth conversations with a few companies. California does appear to have market potential, and this potential is expected to grow over time. Interest was expressed in continuing discussions with the Company regarding possibly supplying aggregates to the San Francisco market.

In May 2004, Golder Associates Ltd. conducted a preliminary economic study of the aggregate resource at Swamp Point to determine the potential economic value of the deposit. The study was based on shipping 3 million tones of sand and gravel per year to the California market using Panamax class (70,000 Dead Weight Tons) freighters. Golder noted that this economic study was based on several assumptions, each of which may influence the final determination of value of the aggregate resource to varying degrees. These include market stability, market opportunities, currently fluctuations, shipping and offloading considerations and environmental, regulatory and political considerations. The economic study by Golder should be considered very preliminary. Based on this limited, currently available information, the Swamp Point aggregate deposit could potentially support an economic project.

Results from the exploration work in the period from 2002 through 2004 showed that the Swamp Point area is underlain by a sand and gravel deposit that has substantial thickness (locally in excess of 84 m). An Inferred Resource of 66 million tonnes of sand and gravel was calculated. Testwork indicated that the deposit contains an average of 51% sand, 44% gravel and 5% silt and that the sand and gravel material meets or exceeds typical Canadian and American specification requirements. Preliminary economic evaluations showed that sand and gravel could potentially be profitably produced at the site, shipped and sold in the California market. There is a demand for aggregate in California, and this demand is expected to grow. There are no obvious operational, environmental or social impediments to developing the Swamp Point project. Therefore, further work was recommended on the project.

Recommended work commenced in September, 2004 and involved additional material testwork and evaluation of operational, economic and environmental parameters to ensure certain critical factors were evaluated and to better quantify key economic inputs. The first phase of work was completed in February, 2005 and included the following work:

• Discussions with potential aggregate customers, as well as efforts to locate other interested parties;
• Discussions with shipping companies regarding availability and cost of ships;
• An analysis of winter operations, and the costs and constraints winter operation may impose;
• A preliminary environmental evaluation to confirm there were no critical environmental concerns such as rare or endangered species, and to aid in designing a more detailed environmental assessment plan;
• Initiation of Community and First Nation liaison with local residents to ensure essential communication during development of the project;
• Evaluation of capital and operating costs.

• Drilling of 11 additional 9.0 and 6.5 inch Becker drill holes to better define the volume of the deposit, obtain a wider distribution of material for sampling, and supplement the deposit geometry information generated thus far;
• Completion of 2 ground water monitoring wells and one ground water pump test well;
• Completion of five test pits to quantify the amount of boulder-size material and to provide sample material for a crushing test;
• Completion of Sieve analysis on representative samples from 20 tonnes of material from drill holes and initiation of a comprehensive program of materials testing on selected samples from the drilling;
• Completion of a new digital elevation model and detailed topographic maps;
• Completion of preliminary geotechnical studies to investigate proposed pit walls angles, foundation designs and ship loadout anchoring;
• Completion of updated resource calculation using both the existing data and the new data from phase two drilling, detailed topographic information, and results from the geotechnical evaluation;
• Completion of investigations into winter operations, effects of high precipitation events and navigational issues;
• Continuation of Project environmental baseline studies;
• Initiation of the British Columbia Environmental Assessment process in preparation for the applications for a Mines Act permit and a water licence;
• Preparation of a detailed site development plan;
• Continued discussions with potential product customers and shippers;
• Ongoing preparation of detailed capital and operating cost estimates to support overall project economics;
• Ongoing Community Consultation and development of good relations with the local and First Nations communities.