Cu-in-Soils
Dill Zone

IP - Dill Zone

» Location and Summary

The Dillard Property is located approximately 35 kilometres north of Princeton, where
Copper Mountain Mining Corp. recently put the Copper Mountain (Similco) copper-gold-silver mine back into production, with measured and indicated resources estimated at 326 million tonnes grading 0.373% Cu, and inferred resources of 169 million tonnes grading 0.29% Cu, plus gold and silver credits. Gold Mountain Mining Corp.’s recently acquired past-producing Elk gold-silver mine lies approximately 15 kilometres to the northeast of Dillard. Drilling is ongoing at Elk expanding the existing 15,500- kilogram gold resource.

» Ownership

The Dillard Property is composed of the Dillard claims, co-owned by local prospectors, and the Dill claim, owned by Almaden Minerals Ltd.

On August 31, 2011 Fjordland signed an option agreement with private vendors to purchase a 100% interest in the 2,200-hectare Dillard claims. Fjordland may make staged cash payments to the vendors totaling $180,000, may issue a total of 1,500,000 common shares of the Company in stages and may expend $2,500,000 in exploration in stages on the Property over a five-year period. The Company will also reserve a 3% net smelter return royalty (NSR) for the vendors that may be bought down by the Company to a 1.5% NSR for $2,000,000.

On February 7, 2012 Fjordland signed an option agreement with Almaden to purchase a 100% interest n the 400-hectare Dill claim. To earn a 100% interest in the Property, subject to a 2% NSR, which Fjordland has the option to purchase 50%, Fjordland initially paid $25,000 cash and issued 250,000 common shares of Fjordland. Fjordland has the option to pay an additional $25,000 cash and issue an additional 250,000 common shares of Fjordland to Almaden on or before the first anniversary of the initial payment. If Fjordland completes a NI 43-101 Resource Estimate on the Dill
Property, it will issue an additional and final 1,500,000 common shares of Fjordland to Almaden.

» History

Numerous historic exploration programs were completed on the Property and surrounding area. Previous exploration on the Property includes work by Noranda (1972-1973), Cominco (1981- 1983), Almaden (1987-1991) and Placer Dome (1989-1991). Since then, there has been no significant exploration in the immediate area.

Diamond drilling was completed on both properties. On the Dill property Primer Group Minerals (1966-1969) completed 18 core holes totaling 2330 metres and 3 percussion holes totaling 201 m and Placer Dome Inc. (1989-1991) completed 11 core holes totaling 2020 m. Structurally-controlled, near-surface, copper-gold mineralization was encountered in alkalic monzonites to monzodiorities that intrude Nicola Group volcanic rocks. Drilling tested an area measuring approximately 1300 m in length and 400 m in width, part of coincident copper-gold soil and induced polarization (IP) anomalies.

A selection of mineralized drill intercepts from previous drilling is presented in the following table :

SELECTED HISTORICAL MINERALIZED DRILL INTERCEPTS

Most drill holes bottomed in mineralization, at depths of up to 220 m. In addition to the 1991 drilling program, the source of numerous gold soil geochemical anomalies (> 50 ppb) remains unclear. One isolated intercept in the drilling returned a 3.1 m interval assaying 710 ppb gold.

In the eastern portion of the property on the Dillard claims, copper and gold soil anomalies with coincident induced polarization (IP) anomalies, have never been drill tested. Grab samples collected by Company geologists during site visits in late July-early August, 2011 yielded assays up to 1.64% Cu, 7.4 ppm Ag, 0.025 ppm Au and 56.9 ppm Mo from new exposures in altered volcanic rocks on the western portion of the Property and up to 28.9 g/t Au and 11.4 ppm Ag from a quartz vein in granodiorite on the eastern portion.

Trenching in 1991 by Placer Dome in a small area (“Gold Core”) with a similar geological setting to the Elk mine to the northeast yielded samples of mineralized quartz-carbonate veins of up to 245.4 g/t Au over 1.5 m and 85.37 g/t Au and 0.16% Cu over 4.5 m. Four short core holes were drilled by Harold Adams (1989-1990) totaling 336 m tested these gold anomalies.