Project GSR

GUIANA SHIELD RESOURCES INC.
13 PROSPECTING LICENCES PLUS 3 PRIORITY RIGHTS in GUYANA

As part of Shoreham’s long term strategy for controlling and subcontracting key land packages in Guyana, both as a financing mechanism and as a tool for asset growth, an option to acquire 100% of 13 prospecting licenses was undertaken March 5, 2005. These lands have been selected because they cover three known target areas of special interest to the company. Each of these priority target areas have gold values of interest. One of these, called Masawaki, hosts significant platinum group metals anomalies. All have technical merit based on prospects, geochemical or geophysical criteria.

Guyana Shield Resources Inc. is a private Guyana company owned by Mr. Hilbert Shields, a geologist with residences in Toronto and Georgetown, Guyana, and extensive experience in the mining industry in Guyana. The Agreement with Guiana Shield Resources Inc. covers four (4) Project Areas (a defined term in the Agreement), each of which consists of one or more Prospecting Licenses, with limited site specific perimeter provisions which will be cited in each Project Area description. The right to select and protect these areas in prospecting licenses was earned through a four year program of reconnaissance exploration protected by the Five Star Reconnaissance Permission. The currently defined lands lie within thirteen (13) Prospecting Licenses of unit area 12,000 acres (cumulative area 156,000 acres, 62,400 hectares, 624 square kilometers or 245 square miles). Under the terms of the Reconnaissance Permission the company has the right to secure three (3) more PL areas of 12,000 acres each which would become part of this agreement.

All of the prospects lie within the PaleoProterozoic granite–greenstone terrane of the Guyana Shield in a region well known for its gold potential. The properties represent the result of about $8 million of systematic regional exploration work by Golden Star Resources during the 1990’s and $1.6 million dollars of target grooming by Valgold Resources Ltd. Shoreham has stepped into this process at a timely stage in which the next phase of work will validate some very important targets.

The lands presented to Shoreham consist of four regional targets based on geology, geochemistry, airborne and ground geophysics and known prospective or mining activity. They shall be referred to as Whana Creek (five PL’s adjoining and west of our Black Banana Project), Masawaki (one PL with a GGMC negotiated right to file up to two more covering Platinum Group Metal and Gold Targets), Aunama (two well placed PL’s in a geological and geophysical target with gold targets) and Arawini. The five Arawini PL’s cover a cluster of felsic intrusive bodies and greenstones with very high gold geochemistry. The Arawini and Butterfly prospecting licenses within the Arawini Project area are currently the site of a major artisanal miner gold rush.

Shoreham’s exploration team has some familiarity with the area and the prospects due to our regional knowledge, our work on Black Banana, and a 1996 dialog between Homestake Mining Company (represented by David Bending, regional manager), and Hilbert Shields (representing Golden Star). Some of the lands have been subsequently advanced by Valgold, some are early stage well placed prospects with known targets amenable to rapid evaluation and development, and some are grass roots targets based on geophysics or old prospect information.

As part of the due diligence process we have received an extensive integrated database of geophysical, geochemical and prospect data, maps, and logistical knowledge permitting rapid re-interpretation of the targets and efficient planning of work programs. These data will be compiled into Project Area Summaries and work proposals as part of advancing and documenting the importance of these prospects.

TARGET SUMMARIES

WHANA PACKAGE

The Whana Project area is an exceptionally useful expansion on the Shoreham / Mulgravian Black Banana project areas and has numerous targets which will warrant preparation for drilling. Valgold had planned major programs in these properties during 2008 but defaulted and lost the option because of heavy cash commitments related to its Venezuelan holdings.

Note that the legend for these geological maps is attached at the end of this memo. This map shows the location of the Black Banana Prospecting License area and the adjoining PL areas. Each of the PL’s has been approved as shown here by the GGMC and represents nominally 12,000 acres each for a total package area of approximately 60,000 acres. The geology is generalized and differs from what we have observed in the field at Black Banana. The red dots are documented gold occurrences. The Five Star targets are covered by Medium Scale Licenses held by Goldport Resources. The areas held by Iamgold and Newmont extend to the east and northeast of the licenses shown. No perimeter provisions apply to these lands, and SMH or its affiliates are free to secure any other lands without obligation to Guiana Shield Resources.

Regional Magnetic Data and Licenses, Black Banana / Whana project area. This survey maps clearly illustrates the structures and host environments and helps to demonstrate the technical interest in these lands.

Generalized Geology (GGMC Compilation) and GSR Geochemical Data for the Black Banana/Whana Project Area. Note that some of the geochemical Surveys extended into the Black Banana Lands with positive results that are clearly related to the Whana area targets, that four other major target areas have been defined by the work, and that the Kaliaku and Baramita North licenses have not been covered by systematic work.

Magnetic Compilation and GSR Geochemical Data for the Whana Project Area.

MASAWAKI AND AUNAMA PACKAGES

The Masawaki PL covers an area of gold and platinum group metal anomalies associated with a sill or group of sills of Avanavero intrusives. The Aunama PL area covers a gold target defined by regional and local geology, magnetic signatures, panned concentrate geochemistry, and an escalating rush of invading artisanal miners. It is an interesting but undeveloped target area which may or may not be retained in the package.

This magnetic survey shows the concept target at Aunama – intersecting structures and discrete magnetic lows suggesting strong alteration in a gold region. It also shows the magnetic signatures (in this case highly magnetic bodies) associated with the Masawaki Pt/Pd responses.

Masawaki PL Project Area: Generalized geology and widely spaced grid geochemical data with symbols reflecting palladium concentrations. The plotted trace of the mafic sill correlates well with one set of palladium anomalies. Other linear anomalies may reflect other permissive horizons in a layered sequence.

Masawaki PL Area Gold soil geochemical data. Note that the gold values have a spatial correlation with the Cr and one of the Pd anomalies.

Masawaki Platinum Geochemical data.

Masawaki Palladium Geochemical Data.

Masawaki Project Area Chromium in widely spaced grid soil survey. Note that the strongest chromium anomalies are spatially associated with one of the Pd anomaly clusters but not with the published trace of the mafic sill.