SHARE CONSOLIDATION & PRIVATE PLACEMENTS PROCEEDING

SHARE CONSOLIDATION
At the Company’s Annual and Special General Meeting of shareholders held on July 25, 2005, the Directors were authorized to proceed with a consolidation of the Company’s common shares on a one (1) new for four (4) old shares basis. No name change will take place, however a new CUSIP and stock trading symbol will be initiated.

The Company currently has issued 25,805,012 common shares. The effective date of the rollback and new stock symbol is subject to regulatory approvals and shareholders will be informed upon acceptance of this filing.

PRIVATE PLACEMENTS
The Company also wishes to announce that it has arranged a post consolidation Private Placement to raise up to $300,000 by the sale of 3,000,000 non flow-through units at $0.10 per unit. Each unit will consist of one common share and one full warrant entitling the holder to purchase one additional non flow-through common share of the Company at a price of $0.15 per share in the first year and $0.20 per share in the second year. Where applicable a finder’s fee in cash or common shares of the Company may be payable in connection with this financing, in accordance with the policies of the TSX Venture Exchange. The Company intends to utilize the proceeds of the private placement for general working capital purposes, and future property acquisitions.

All of the above is subject to TSX Venture Exchange acceptance.