MORRISETTE CREEK PROPERTY

History and Geologic Setting: Kinbauri’s Morrisette Creek property near Kirkland Lake consists of 29 claims totalling 470 hectares. The Kirkland Lake area (Ontario) has become the focus of renewed exploration activity. The Corporation began compiling all previously collected data in 2005 to determine the focus of future exploration. VLF-EM, magnetometer and geochemical surveys were completed over the complete property; IP surveys were completed in selected areas. Sixteen diamond drill holes were also been drilled. The property covers the prospective Blake River/Kinojevis Group contact. Hydrothermal alteration indicative of gold mineralization (carbonatization, silicification, sericitization) is common to bedrock at Morrisette. Altered quartz feldspar porphyries contain 2 to 8 percent pyrite and consistently carry anomalous gold values to 300ppb. Two prospective areas were delineated along projections of: (i) the Victoria Creek Structure Morrisette Creek Fault, which is covered by thick overburden on Morrisette Creek (limited drilling here encountered intensively carbonatized and sericitized rock) and (ii) the Kirana Break (paralleling the Kirkland Lake break) from which intercepts of up to 0.8oz Au/t over 10 ft. have been reported. To-date, only one shallow hole (M87-1) has been drilled adjacent to the Kirana Break by Kinbauri. This hole encountered intense brecciation, alteration (carbonatization, silification and pyritization) and anomalous gold (values up to 732 ppb Au).

Gold Targets: In recognition of the potential for economic mineralization along the eastern projection of the Kirana Break Kinbauri completed geophysical (induced polarization) and geochemical soil (soil gas and enzyme leach) surveys over the southwest part of the claim group, most of which is covered by overburden. Soil gas and enzyme leach anomalies, which are coincident with IP and VLF-EM anomalies and magnetic lows, identify highly prospective drill targets. The previously referenced shallow hole drilled adjacent the eastern projection of the Kirana Break (M87-1) lies on the flank of the most prospective drill target. Primary targets in this area appear to be large structurally-controlled alteration zones, in basalt intruded by quartz feldspar porphyries. These exciting gold targets, which have been defined by state of the art soil geochemistry, along with geology and geophysics (IP, VLF, Mag), warrant drilling.

Diamond Targets: Two bulls-eye mag anomalies are present on Morrisette Creek, which have been noted as probable kimberlites by the Ontario Geological Survey. These targets deserve drilling to determine their diamond quantity and quality, assuming kimberlite intersections.