Northern Empire

In 1996, Goldstone acquired a 100% interest in the Northern Empire property from Pancontinental Mining (Canada) Ltd. and Ateba Mines Inc. The property consists of 72 patented and leased claims covering 2,644 acres in McComber and Summers Townships, and includes a permitted mill complex. The mill currently has a capacity of 200 tons-per-day, can be expanded to 1,000 TPD. It has been upgraded and readied to process gold and molybdenum ores.

Historically, the Northern Empire mine was operated successfully by Newmont Mines, producing 149,493 ounces of gold from 425,866 tons with a recovery of 0.35 oz. in gold per ton. It is serviced with a shaft to 2,460 feet with development above and below a major flat diabase sill. The mine was inactive since 1988.

In 2007 and 2008, Goldstone carried out a 103-hole, 11,096-metre diamond drilling program at the Mine, described in a NI 43-101 report dated November 2008, which established resources for the top two mine levels of indicated 86,652 tons grading 10.70 g/t Au (0.34 oz/t Au) for 927,113 g Au (29,807 ozs Au) and inferred 64,748 tons grading 9.95 g/t Au (0.32 oz/t Au) for 644,446 g Au (20,719 oz Au).

An independent study by SRK Consulting Geologists concluded in 2006 that the mine offers excellent exploration potential containing 150,000 ounces of gold (non-Ni 43-101 compliant).

Goldstone current plan is to develop the eastern strike length of the Northern Empire mine by a decline and mine the area to the second level. Preliminary study indicates that production can begin within six months of completing development work. This program will be followed up by dewatering the 2,460 feet shaft and installing a headframe, hoist and ancillary equipment on surface and underground.