LANIEL CLAIMS

Kinbauri presently holds a land position of 37 claims totalling 1,965 hectares near Laniel in the Temiscamingue area of Quebec. Claims were originally acquired in the vicinity of Laniel because of Ni Cu stream sediment anomalies, which had been identified and prioritized by MER (Que.). The claims were believed to have potential for diamonds and platinum/palladium mineralization. Beginning in 2002, exploration programs were completed and results from geological, geochemical and geophysical surveys on a core group of claims indicated good potential for the presence of kimberlites. Geophysical surveys and soil sampling were completed on newly acquired claims to the west of the core claims during late 2003. During 2004, results from the magnetometer survey were received and the soil samples were prepared for geochemical analysis. Results from the magnetometer survey and geological observations suggested the presence of a folded mafic complex and possible kimberlites on the west part of the claim group. A limited number of bulk alluvial samples were also collected on a reconnaissance basis from the claims and kimberlite indicators were visually identified in 5 of the 6 samples, two samples containing pyrope garnets. The soil samples, which were forwarded to Activation Laboratories for analysis in early 2005, confirmed the kimberlite potential. Soil gas analysis of a limited number of samples during the quarter ended August 31st, 2005 defined an area that according to Activation Laboratories has fairly good probability of hosting a kimberlite. Prospecting of prospective areas defined by magnetics, structural trends, kimberlite indicator elements and mineral trains and soil gas anomalies is planned to prioritize identified kimberlite targets for drilling. The present highest priority target is the central soil gas – magnetic anomaly, wholly contained in the Lake Temiskaming structural corridor. This corridor is known to host a series of diamondiferous kimberlite pipes, including the Victor pipe, which is being readied for diamond production by DeBeers.