AER Kidd Property

Overview:

Crowflight holds a 100% interest in a 280 hectare property along approximately 2 kilometres of the historically productive Worthington Offset Dyke of the Sudbury Intrusive Complex (SIC, Sudbury Basin). Past production on the AER Kidd property has come from numerous underground and surface workings (Howland Pit, Rosen and Robinson Deposits).

The earliest discoveries of mineralization on the property are believed to have occured in 1886 and 1890. In 1916, about 486 tons of hand-sorted ore from the Howland Pit and the Robinson Zone averaging 5.1% nickel and 2.1% copper were known to have been extracted and sold.

From 1936 to 1939 Denison Copper Mines Limited sank the three-compartment Robinson Shaft to a depth of 985 feet and carried out about 3,000 feet of lateral work along six levels. Further work was carried out by Arcadia Nickel Company Ltd. and its subsidiary, AER Nickel Mines Ltd. from 1955 to 1957. In 1957 AER Nickel sunk the No. 2 Shaft (The Rosen Shaft) to 1,076 feet and connected at the top three levels to the Robinson Shaft. The construction of a 1250 tonne per day (tpd) mill was commenced in 1956, but halted in 1957.

In 1965 the property was optioned by Sheridan Geophysics Ltd. and assigned to Kidd Copper Mines Ltd. In 1966 Kidd Copper commenced the construction of a 1000 tpd mill and commenced mining and milling in 1967 producing approximately 250,000 tons of ore proir to mining being concluded in 1968. Several remedial measures were taken by local and provincial governments between 1990 and 1995 to mitigate surface hazards at the old mine site.

In October 1999, Inco Ltd. announced the discovery of high-grade mineralization at the Totten Mine adjoining the southwest portion of the AER/Kidd Property. The Totten Mine had been shut down in 1970. The new discovery zone is accessible from the Totten Mine's 1,400 metre shaft. Inco subsequently announced in January 2001 that the Totten deposit, as delineated, contains a 10.1 million tonne mineral resource grading 1.50% nickel, 1.97% copper and 4.8 gpt PGM's.

In November 2002, FNX Mining Company Inc. announced the discovery of the Powerline Deposit on the Victoria Property, approximately 2 kilometres northeast of the AER/Kidd Property. Much of this mineralization is near surface and amenable to open pit mining.

Between December 2003 and August 2004, Crowflight was active on the property completing an 18,000 metre diamond drill drill program in 27 holes. The program was designed to test a series of geophysical anomalies along a one-kilometre segment of the Worthington Offset Dyke, roughly one kilometre northeast of Inco Limited's Totten Deposit.

In January 2006, Inco announced that it intended to put the Totten depth deposit into production by 2010 based on a feasibility resource of 8.4 million tonnes grading 1.42% nickel, 1.90% copper and 4 gpt PGM's.

Objectives:

Discover economic concentrations of nickel - copper - PGM mineralization through the efficient use of advanced exploration procedures and technologies.

Agreement Terms:

The property is subject to an Agreement dated June 9th, 2000 made between AER Nickel Corporation, Toburn Gold Mines Ltd., Patrick J. Sheridan Sr., and Crowflight. Crowflight has fulfilled all its obligations under the terms of this Agreement and has vested a 100% interest in the property subject to a 3% net smelter royalty. There is a $50,000 annual advance royalty payment payable semi-annually beginning January 31, 2001. Crowflight may purchase up to 50% of this royalty for $1.2 million up to the time when commercial production commences.

Exploration Activities:

From December 2003 to August 2004, Crowflight was active on the property, completing 18,000 meters of diamond drilling in 27 holes designed to test a series of geophysical anomalies along a one kilometer segment of the Worthington Offset Dyke, roughly one kilometre northeast of Inco's Totten Deposit.

Eleven of the 27 core drill holes completed intersected sulphide-bearing Quartz Diorite (QD), whereas another 10 core drill holes did not intersect the QD because it was cut-off or displaced, by gabbro dykes or faulting, or oriented differently than predicted. Stringer and massive sulphides were present. The best intersection from this program was in Hole DDH-3AW1 which intersected 19.2 metres (9.8 metres true width) grading 0.80% nickel, 0.48% copper and 1.02 gpt PGM's that included a higher grade 8.3 metre (4.2 metre true width) intersection grading 1.46% nickel, 0.56% copper and 1.31 gpt PGMs.

Deep drilling of an area of the property below Perch Lake targeted a stronger geophysical response and was successful in identifying a 30 metre to 50 metre wide segment of the Worthington Offset Dyke with disseminated sulphides, the occasional sulphide stringers and pervasive mineral alteration suggestive of marginal or halo-type mineralization surrounding or capping potentially more massive sulphide mineralization at depth.

Crowflight's exploration approach at the AER Kidd Property has been successfully used by companies exploring for Offset, Sublayer or Contact ores in the Sudbury Basin. This work was successful in identifying new mineralized occurrences at depth, but was unsuccessful tieing together enough mineralization to constitute a significant new mineral resource. Despite the level of work on the property, Crowflight believes that it is still in the early exploration stages at the AER Kidd Property and that several targets identified during the course of exploration remain untested. Potential remains for deposits on the order of 5 to 10 million tonnes to occur above the 1,000 metre depth and that exploration potemtial below the 1,000 metre depth is wide open.

Going forward, and in light of Crowflight's committments in the Thompson Nickel Belt, including the financing and development of the Bucko Deposit, the Company will look to enter into a joint venture agreement with a third party whereby such third party will fund future exploration activities in order to earn an interest in the AER Kidd Property. Should such efforts fail to result in a joint venture agreement, Crowflight will look to fund advanced exploration from cash flows from the Bucko Deposit, Manitoba once in production or other free cash as it becomes avaialble.