The Property

William Lake Property Map

• The William Lake Property consists of 55 claims totaling 10,566 hectares.
• Excellent infrastructure
• Property covers the Thompson Nickel Belt extension under the Paleozoic cover
• The Thompson Nickel Belt hosts a number of massive to disseminated nickel sulphide deposits, most notably Inco Limited’s (“Inco”) Thompson (120Mt @ 2.5% Ni), Birchtree (29Mt @ 2.0% Ni) and Pipe (22Mt @ 1.0% Ni) mines.
• Between 1989 and 2002 Falconbridge (now Xstrata ) conducted extensive exploration including the completion of 260 widely spaced drill holes totaling 136,542 metres.
• Pure Nickel (now Galleon Gold) commissioned a NI 43-101 to summarize previous work on the property
• Pure Nickel (now Galleon Gold) purchased the properties as part of the Xstrata Nickel Land Property Purchase. Xstrata retains certain rights with respect to the mining claims including (i) a 2% NSR on each property (Galleon Gold has the right to reacquire 1% thereof for C$1,000,000); (ii) off-take and marketing rights for all concentrate or product produced from the properties; and (iii) a onetime back-in right to 50% for any mining project with an economic threshold of 15,000,000 tonnes of resources unless such right has been previously exercised in respect of another property that was part of the Xstrata - Pure Nickel transaction

N.I. 43-101 Technical Report on the William Lake Property, Grand Rapids, MB (November 20, 2007)

2007 VTEM Survey

Exploration

2007/2008 exploration project included diamond drilling and an 1159 km VTEM airborne geological survey

• A total of 7525 meters in 15 holes were completed in the drill portion of the program. Significant new mineralized zone discovered - it is the first find of ore-grade and near ore grade Ni-enriched intersections of sulphidic iron formation in the southern extension of the Thompson Nickel Belt.
• This discovery has the potential to be sizeable as our VTEM survey indicates that there are over 700 meters of strike length of this anomaly untested to the north of drill hole 360b.

Summary of Drill results

• Hole 350 returned 5.15m of 0.84% Ni, including 1.3 m of 2.11%Ni
• Hole 351 returned 0.5 m of 1.11% Ni
• Hole 354 returned 17.16 m of 0.51% Ni, 5.65m of 1.02% Ni
• Hole 355 returned 25.37 m of 0.44% Ni, 2.74 m of 1.68%. 1 m of 3.43% Ni
• Hole 357 returned 9.1 m of 0.89% Ni, including a 3 m section of 1.0% Ni
• Hole 360b returned 12.15 m of 0.91% Ni, including 7.38 m of 1.12% Ni including 3 m of 1.45% Ni
• Hole 359 returned 171 m of 0.45% Ni, including 4.96 m of 0.72% Ni

Drill