Duquesne-Ottoman

Duquesne-Ottoman Property

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Location: Duparquet township, about 50km north of Rouyn-Noranda, Quebec

Geographic coordinates: Longitude 79° 6' 35" West, Latitude 48° 29' 38" North

Commodity: Gold
Two styles of gold mineralization are known in the district. High grade shear zone hosted veins and stockwork zones at major lithological contacts and within breccias zones ("Duquesne style") and low grade, bulk minable disseminated zones in syenite and calc-alcaline granite porphyries ("Beattie style").

Status:
Property is composed of 60 exploration licenses (claims) totaling 928.6 hectares (2,321.5 acres).

Option Terms:

Xmet has an option to acquire 75% interest from Globex Mining by investing $18.33M over 7 years including $10M in work commitments ($8.19M remaining in 6 yrs in payments and about $8.2M in work).

Sliding 2-3% GMR royalty (of which 0.5% purchasable for $1.5M) plus 1% NSR on the Duquesne West claims. If Globex Mining does not fund its 25%, interest gets converted to additional 1% GMR and Xmet owns 100% of project

History:
The Duquesne-Ottoman property has been the subject of documented exploration since 1927. A total of 239 diamond drill holes totaling 65,063 m have been documented on the Duquesne West block and an additional 8 holes totaling 3,106 m have been reported on the Ottoman block. In 1983 Claremont Mines sunk an 80 foot (24 m) shaft on the Duquesne West block and reportedly produced a bulk sample in the order of 425 tons. The reported grade of the bulk sample was 0.11 opt (~3.8 g/t Au).

The current property was consolidated in 1987 by Globex Mining Enterprises Ltd. ("Globex") (Duquesne West block) and Geoconseil Jack Stock Ltd. ("GJSL") (Ottoman block) and between 1990 and 2007 the property was successively optioned and explored by Noranda Mines Ltd., Globex, Santa Fe Canadian Mining Ltd., Kinross Gold Corp., Queenston Mining Inc. and Diadem Resources Ltd. During this period a total of 132 holes totaling 58,863 m were drilled, mainly on the Duquesne west block and with little work on the Ottoman block of claims.

Two previous resource estimates were prepared for the Duquesne-Ottoman Property for internal purposes. These estimates were prepared by previous operators over a period of years from 1997 to 2003.

The first NI 43-101 compliant Mineral Resource estimate for the property for the Duquesne-Ottoman Property was prepared in 2010, using a cut-off grade of 3.0 g/t Au over a 2.5m minimum horizontal width, are outlined in the table and resource statement below.

Table 1-1: Duquesne-Ottoman Property –Inferred Mineral Resources Effective Date September 8th, 2011

Tonnes(Millions)	Grade(gpt Au)	Grade Uncut(gpt Au)	Contained Gold(Ounces Cut)	Contained Gold(Ounces Uncut)

4.171	5.42	6.36	727,000	853,000

The Inferred Mineral Resources occur in five separate but closely spaced and sub parallel structures. From south to north the major zones in the area for which Mineral Resources are reported here are listed in Table 1-2.

Table 1-2: Duquesne-Ottoman Property –Inferred Mineral Resources Breakdown by Zone

Highlights:

Aside from the previous resource estimated on the Duquesne-Ottoman property several adjacent properties also contain historical or current gold resources.

Immediately adjacent to the west of Duquesne-Ottoman, Clifton Star released a NI43-101 compliant resource estimate on the Beattie-Donchester property to the west of Duquesne-Ottoman in 2009. 371,000 oz M&I 1.72M oz Inf. as per a 43-101 report released on 22 Oct 2009

The Pitt property, located immediately adjacent to the southwest of the Duquesne-Ottoman property, is held by Brionor Resources Inc and contains a NI43-101 compliant resource of approximately 250,000 ounces Au, mainly in the Pitt zone, located on the property boundary and possibly extending onto the Duquesne-Ottoman property.

To the east, the Duquesne mine property is being explored by Clifton Star. The old Duquesne mine produced 70,000 ounces of gold and historical proven and probable reserves are estimated at 310,000 ounces Au.

To the northeast the Golconda zone (also called the Garney zone), located on the Goldcop Resources property immediately to the northeast of Duquesne-Ottoman, a small historical resource of 60,000 ounces Au (non 43-101 compliant) has been estimated. The mineralized zone was delineated in drill hole and extends to within 100m of the property boundary.