WORK HISTORY

Staked within STW cl 1-146 (YD69503) and cl 147-230 (YD90316) in Sep/2010 by Radius Gold Inc. The claim block was named the Scarlet East property.
 
In May/2011 Radius Gold announced its intention to transfer all of its Yukon and Alaska exploration properties including the Scarlet East property to a new company.
 
During the 2011 exploration season Radius Gold carried out property wide ridge and spur soil sampling and reconnaissance silt sampling followed by grid based soil sampling, preliminary geological mapping, prospecting and rock sampling. The company also carried out an airborne magnetic and radiometric geophysical survey and a remote sensing survey over the property.
 
On December 2, 2011 Radius Gold announced shareholder approval of the plan to spin out Radius’s Yukon and Alaska exploration properties into a new company named Rackla Metals Inc. The transaction closed on December 8, 2011 and trading in Rackla Metals shares commenced on December 9, 2011.
 
On April 2, 2012 Rackla Metals optioned a 60 % interest in the Scarlet East property to Strategic Metals Ltd in return for cash, shares and certain work commitments. Strategic Metals incorporated the property into their larger Midas Touch project.
 
In 2012 Strategic Metals carried out detailed geological mapping in the eastern structural block, and follow-up rock and soil sampling. The company also collared 5 diamond drill holes (1 167.68 m) of which three holes (749.19 m) tested for mineralization in and around the occurrence location.
 
In 2013 Strategic Metals collected rock samples within the central and eastern structural blocks, grid soil sampled over the eastern structural block and trenched within soil anomaly A; the site of an elevated gold and arsenic soil anomaly.

In Oct/2014 Strategic Metals dropped its option on the Scarlet East property and returned the claims to Rackla Metals. 
 
GEOLOGY
 
The Scarlet East property lies approximately 190 km east-northeast of Mayo and approximately 4.5 km southeast of Mount Stenbraten in east-central Yukon. Access to the property in 2011- 2013 involved a fixed-wing aircraft to a landing strip at ATAC Resources’ Rackla airstrip, located approximately 46 km to the west-northwest and then employing a helicopter to the property.
 
The area was geologically mapped in the early 1970’s by S Blusson of the Geological Survey of Canada (1974 – 1:250 000 scale) as part of Operation Stewart. Blusson’s maps were used by most geologists and exploration companies until 2010 when the Yukon Geological Survey initiated a project to better understand the geology of the area following the discovery of Carlin-type gold mineralization on ATAC Resources’ Rackla Gold Project located to the north. M. Colpron et al. of the Yukon Geological Survey geologically mapped topographic map sheet 106C 01 (Mount Stenbraten – 1:50 000 scale) in the summer of 2012 and a geological map was released in 2013. D. Moynihan, also employed by the Yukon Geological Survey, geologically mapped topographic map sheet 106B 04 (1:50 000 scale) in 2013 employing the same nomenclature used to the west. The map was released in 2014.
 
Based on preliminary geological mapping the Scarlet East property is located approximately 1 to 3 km north of the projected Dawson Thrust and within the Neoproterozoic off-shelf domain. In this area, the Neoproterozoic sequence generally consists of fine grained siliciclastic and carbonate rocks, including two prominent carbonate marker horizons and locally abundant debris flow deposits.
 
The property is primarily underlain by a mixed clastic and carbonate rocks belonging to upper Stenbraten Assemblage (Blueflower Formation on Moynihan’s map) and Algae Lake and Narchilla formations. A window of underlying carbonate and fine grained clastic rocks belonging to lower Stenbraten and Nadaleen assemblages are exposed by topography and folding in the eastern half of the property. Quaternary sediments blanket rocks in the southern part of the property, along the Stewart River valley.
 
Soil sampling carried out in 2011 and 13 outlined 3 anomalous clusters (zones A, B and C), in the eastern central portion of the Scarlet East property. Zone C (occurrence location) represents a 600 m long by 250 m wide, northerly trending soil anomaly strongly anomalous in arsenic and thallium but hosting relatively low gold values. Rock samples were collected from an underlying structurally complex folded and faulted zone comprised of a mixture of: 1) rusty grey-green, pervasively altered, vuggy, decalcified, Lower Stenbraten Assemblage limestone containing rare realgar; 2) strongly calcite and silica veined and brecciated Algae Lake Formation limestone; and 3) limonite within Algae Lake Formation. Samples yielded up to 0.153 g/t gold, 38 400 ppm arsenic and 270 ppm thallium. 
 
Hole SE-12-01 tested the main anticlinal fold nose located at the southwest end of the soil anomaly. It returned two short intervals of weakly elevated gold; 0.128 g/t gold over 3.05 m (from 18.29 m to 21.34 m) and 0.105 g/t gold over 1.37 m (from 206.13 m to 207.50 m). Hole SE-12-02 tested the western side of the anomaly which is underlain by a steeply dipping, strongly quartz veined siliceous grit to quartz pebble conglomerate horizon and into the overlying limestone. Grit with increased silicification towards the limestone contact was intersected.
 
Hole SE-12-03 was collared in the eastern part of the main anticlinal fold nose and explored the eastern portion of the soil anomaly that appears to be associated with a cross-cutting fault zone. It intersected variably sheared, tan and grey limestone containing local debris flow and underlying siltstone.
 
Hole SE-12-04 (located approximately 750 m to the northeast) and hole SE -12-05 (located approximately 1.2 km to the northeast) were collared to test for mineralization along the eastern limb of the main anticline. Hole 4 tested a strong, fault related, linear arsenic soil anomaly. It intersected a wide fault zone containing brown clay bands and brick red fault gouge within limestone. Hole 5 was collared beneath a localized fault-related gold-arsenic anomaly hosted within the favorable limestone anomaly. The hole was drilled parallel to the fault to check for mineralization within the limestone located immediately adjacent to the fault zone. 

Zone A (UTM 646245 E, 7110305 N) is located approximately 4 km to the northeast. It covers a 300 by 700 m northwest trending area were rock and soil sampling outlined a coincident gold and arsenic-enriched anomaly. The mineralization is hosted within Algae Lake carbonates and Stenbraten grit, both of which are cut by a small northeast-trending thrust fault. A rock sample collected from intensely weathered and pitted, earthy orange brown clastic/carbonate breccia developed in Algae Lake formation returned the best gold-in-rock assay on the property; 1.01 g/t gold. A trench dug on elevated gold and arsenic soil values within the zone cut a vuggy, crumbly and brecciated dolostone.  Three continuous chip samples collected from the trench returned low values for all elements of interest. Three soil samples collected from the bottom of the trench where bedrock was not reached yielded values up to: for gold (50 ppb), arsenic (561 ppm), mercury (2.04 ppm) and antimony (12.75 ppm).
 
Zone B (UTM 644910 E, 7109740 N) is located approximately 2.3 km to the northeast. It covers 150 m northwest trending zone where soil sampling returned strongly elevated values for arsenic +/- mercury, +/- antimony, +/- thallium. Rock samples collected from the Stenbraten Formation (lower carbonate marker) within the northwest limb of a northwest trending anticline returned anomalous values up to: for arsenic (8 810 ppm), mercury (237 ppm), antimony (319 ppm) and thallium (13.5 ppm).
 
Exploration to date has identified strongly elevated results for pathfinder elements associated with Carlin-style gold mineralization similar to that found to the north at ATAC Resources Rackla Gold project. Although diamond drilling conducted to date did not intersect economic amounts of mineralization, many of the geochemical anomalies have yet to be tested. 
 

64.066090

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Assessment Reports that overlap occurrence

Report Number	Year	Title	Worktypes	Holes Drilled	Meters Drilled
096657	2013	Assessment Report for the 2013 Exploration Program of Silt, Soil and Rock Chip Geochemical Surveys, Geological Mapping and Diamond Drilling	Diamond - Drilling, Drill Core - Geochemistry, Rock - Geochemistry, Silt - Geochemistry, Soil - Geochemistry, Bedrock Mapping - Geology	21	4803
096593	2012	Assessment Report Describing Geochemical Sampling, Geological Mapping and Diamond Drilling	Diamond - Drilling, Rock - Geochemistry, Soil - Geochemistry, Detailed Bedrock Mapping - Geology	5	1167.68
095764	2011	Report on the 2011 Geochemical and Geological Work on the STW Property	Gamma-Ray Spectrometry - Airborne Geophysics, Magnetic - Airborne Geophysics, Rock - Geochemistry, Silt - Geochemistry, Soil - Geochemistry, Bedrock Mapping - Geology