» Summary

The Tak properties consist of seven (Tak) gold-copper-molybdenum prospects (55,654 ha) located adjoining and southeast of the company's Woodjam property, and adjacent to Newmont's new holdings. Capstone Mining Corp (TSX:CS) optioned the Tak properties and can earn up to a 70% interest through $6 million of exploration expenditures by December 31, 2016.

» Location

The Tak properties are all located in the Cariboo region within the prolific Quesnel Terrane located between Imperial Metals’ Mount Polley gold-copper mine in the northwest and Canim Lake in the southeast, an area encompassing approximately 50 km in length and 40 km in width. The properties consist of the Hazel, Tisdall, HR, Moffat, LaHache, Canim, and Howard Lake.

The properties are all located on or near the regional-scaled Takomkane Batholith. The properties were acquired on the basis of favourable geology, historic Minfile occurrences and regional scale magnetic trends. The claims encompass low elevation, relatively flat terrane and is easily road accessible and workable on a year-round basis.

Taseko Mines’ recently expanded Gibraltar copper-molybdenum mine and Xstrata’s past-producing Boss Mountain molybdenum mine are located approximately 50 km to the northwest and at the eastern side of the area, respectively. In addition, recent mine approvals for Imperial Metals’ Red Chris, Taseko Mines’ Prosperity and Terrane Metals’ Mt. Milligan copper-gold properties in British Columbia, as well as recent expansion plans announced for the Teck Resources’ Highland Valley Copper copper-molybdenum mine and the recent start of construction at Copper Mountain Mining’s past-producing Copper Mountain copper-gold mine to the south, are very encouraging for the future of the mining industry in the Province.

» Ownership

The TAK properties comprise over 440 square kilometers and are all 100% owned by Fjordland. On September 30, 2010 Fjordland entered into a letter agreement with Capstone Mining Corp. (TSX: CS) whereby Capstone was granted an option to acquire up to a 70% interest in the Tak - Milligan properties through staged exploration expenditures totaling $6 million by December 31, 2016. Capstone has initially financed a $150,000 program in 2010 and will finance an additional $150,000 program prior to June 30, 2011 to earn 49% interest. It can then earn a further 11% interest in the project by expending an additional $1.7 million in exploration work by December 31, 2013. Capstone can then earn an additional 10% interest, for a total 70% interest in the project, by expending a further $4 million by December 31, 2016.

» Geology & Mineralization

The properties are located within the Quesnel Trough, a large regional depositional belt extending 2,000 kilometres from the U.S. border in the south to the Stikine River in the north. The belt hosts several large tonnage "porphyry type" deposits including New Gold's New Afton deposit, Imperial Metals' Mount Polley Mine, Teck's Highland Valley Copper Mine, Taseko's Gibraltar Mine, Terrane Metals' Mt. Milligan deposit and Northgate's Kemess Mine.

Copper-gold mineralization in the region is associated with regional scale northeast trending magnetic highs demarcating the alteration zone produced by the contact of the Takla volcanics with the Takomkane intrusives. Much of the area is covered by extensive overburden, which has hampered traditional, historic exploration programs. In particular, the northern portion of the Late Triassic to Early Jurassic Takomkane batholith represents a good area for discovery, similar to the WJV`s recent Southeast Zone copper-gold-molybdenum discovery on the Woodjam South Property. The age of mineralization here (~ 197 Ma) is younger than that at both the Mount Polley and Gibraltar mines to the north and northwest, respectively, but falls within the range of mineralization published for the giant Highland Valley Copper deposits to the south with average daily mill throughput at over 120,000 tonnes.