Moss Lake Gold Mines Ltd.

There are two main zones of the gold mineralization at Moss Lake, which are probably the same one separated by a cross fault. The more westerly zone has been called the Main Zone and the easterly, the QES Zone. In both zones, gold occurs over a width of 400 to 500 feet but most gold is confined to narrower shears within this width. In the Main Zone the mineralized zones are fairly distinct and narrow (average thickness about 50 feet), but toward the east (in the QES Zone) they merge into a broader zone (up to 300 feet thick) of more uniform gold mineralization.

In addition to the main central zone there are several smaller zones (North Zone, Boundary Zone) associated with weaker shears parallel to the central one. They are similar in nature to the Main and QES Zones.

The gold at Moss Lake occurs mainly as fine-grained free gold associated with minor disseminated pyrite and chalcopyrite (total sulphide 2 to 3%) in zones of most intense shearing and sericitization. Gold can also be found in less sheared material (always with sericite) and some may occur as a telluride. Visible gold is very rare.

On July 14, 2010, Moss Lake Gold Mines Ltd. announced an updated NI 43-101 compliant Mineral Resource estimate for its wholly-owned Moss Lake gold deposit located 100 kilometres due west of Thunder Bay, Ontario. This estimate is part of an independent technical report undertaken by Watts, Griffis and McOuat Limited Consulting Geologists and Engineers.

The technical report supporting these estimates will be made available within 45 days in accordance with regulatory requirements.

In 2003, drilling discovered a new zone located 2.5 kilometres southeast of the Moss Lake deposit which included an intersection of 6.9 grams of gold per tonne over a corelength of 1.86 metres. This occurs in a broad gold-enriched pyrite sequence traced by induced polarization surveys across a strikelength of at least 1.2 kilometres.

Management continues to be impressed with the size of the resource and obvious exploration potential of the Moss Lake deposit. The significance of this asset will grow with the gold price.

Notes:

This Mineral Resource estimate was prepared by Mr. Kurt Breede, P.Eng., who is an independent Qualified Person, and is effective July 14th, 2010.
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
This estimate was prepared using an inverse distance interpolated block model and reported within an interpreted wireframe of the mineralized envelope at a 0.015opt Au (or 0.5 g/tonne Au) limit and excludes all blocks with a grade below 0.001 opt Au. The cutoff grade of 0.015 opt Au was selected as the basis on which the two Zones were modelled in the geological interpretation, and considered the parameters that would likely determine the economic viability of an open pit mining operation at Moss Lake. These included likely mine dilution, metallurgical recoveries, operating costs and a gold price of US$900/oz (at an exchange rate of US$1:C$1.10),
The resource estimate extends to a depth of 870 feet which is deemed a practical cutoff to maintain reasonable stripping ratios in a surface mining operation.

Management of Moss Lake believes the pragmatic application of blasthole grade control techniques on a bench by bench basis offers potential to realize better grades in an eventual mining operation. Table 2 demonstrates the cut-off grade sensitivity of Moss Lake Mineral Resource estimates.