LOCATION: Nunavut · 80-90 KM east north east of Lac de Gras diamond mines (Ekati & Diavik) adjacent to the winter road near the NWT border.

PROPERTY HISTORY:

• Prior to 1992 the most eastern claims were explored for gold.
• 1992 - Start of diamond play in NWT. Area solidly staked then optioned to Kennecott Exploration Canada Inc (KCEI) (DIASYN Project).
• KCEI conducted fixed wing airborne geophysical surveys (Mag EM), wide spaced (200M) at 110M elevation (Geoterrex). High and Low Mags with coincident conductivity located for follow-up.
• Sampling anomaly near Migration Lake was ineffectual. Negative results probably attributed to sampling procedures. Property essentially sat dormant until claims lapsed. Exploration abandoned due to: 
  - KCEI involvement in result driven projects in vicinity of Lac de Gras  
  - Lack of initial encouragement - 1992 sampling provided no indicator minerals.

PROPERTY DESCRIPTION: Area of Interest Agreement with KCEI (5 years - 1% NSR gross overriding royalty) includes proprietary rights to KCEI technical data including 12,000 line km of airborne geophysics.

PROPERTY POTENTIAL: Precious Metals: Eastern most claims have gold potential.  Diamond potential: Kimberlites in the Slave Craton appear to be controlled within the McKenzie Dyke systems by cross structures. The 'Corridor of Hope' or area hosting diamondiferous kimberlites, varies in widths to 150 km. Naket property is within the "Corridor of Hope."

NAKET PROJECT ACTIVITY:  

• 2000 - Geophysical data (1992) reinterpreted. 46 targets defined. 
• 2000 - 5 claims staked.
• 2001 -Conducted program of ground geophysics. 

1. Former gold showing explored, (had been drilled with unfavorable results) 
2. Iron formation anomalies explored. Sample results indicate potential for gold exploration 
3. Additional ground acquired. Classic bulls eye geophysical anomaly located.

CURRENT PROGRAM - 2002

• Increased land holdings as new targets defined - vicinity of known diamondiferous kimberlite cluster area, within the McKenzie Dyke system (Corridor of Hope)
• Refining and massaging of original KCEI data prior to proceeding with low level close spaced Dighem helicopter Survey. (Spring-summer)
• Preparation and planning for diamond drilling of targets for kimberlite.
• Continued prospecting and heavy mineral sampling.
• Summer program will revisit gold projects.

CONCLUSION: Is this area prospective for diamonds? Previous exploration for diamonds was prior to the significant knowledge explosion (1992-1998). We feel this particular area is dramatically under explored and has good potential. Other than being result driven, we feel a thorough exploration program in this prospective area is warranted.

Nadina is the operator and will provide the next $80,000 in funding. The current exploration program will be funded by way of Private Placement in New Nadina as Flow Through (limited to BC & Alberta residents) Exploration Incentive funding.