International Nickel Ventures Corporation. - INV Metals€¦ · Type chapter title (level 1) ......

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International Nickel Ventures Corporation.

Technical Report on Recent Exploration at the Rio Novo Copper-Iron-Gold-Platinum-

Palladium Property in the Carajás District, Pará, Brazil

Frontispiece: Oscar’s Garimpo, Rio Novo Property

for INV Metals Inc.

Robert C. Bell, B.Sc., P. Geo Effective Date: October 27, 2010

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Table of Contents

1. SUMMARY ......................................................................................................................................... 5

2. INTRODUCTION ................................................................................................................................. 6

2.1. TERMS OF REFERENCE .............................................................................................................. 6

2.2. SOURCES OF INFORMATION ..................................................................................................... 6

2.3. UNITS OF MEASURE .................................................................................................................. 7

3. RELIANCE ON OTHER EXPERTS .......................................................................................................... 7

4. PROPERTY LOCATION AND DESCRIPTION ......................................................................................... 7

4.1. PROPERTY LOCATION ................................................................................................................ 7

Figure 1: Location and Regional Access to Rio Novo ................................................................................... 8

4.2. PROPERTY DESCRIPTION ........................................................................................................... 8

Table 1: Property Details .............................................................................................................................. 9

4.3. AGREEMENT WITH TECK RESOURCES LIMITED ...................................................................... 10

4.4. BRAZIL ..................................................................................................................................... 10

5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............... 12

5.1. ACCESS .................................................................................................................................... 12

Figure 2: Property Location and Access ..................................................................................................... 12

5.2. CLIMATE .................................................................................................................................. 13

5.3. INFRASTRUCTURE ................................................................................................................... 13

Figure 3: New Power Line Crossing the Rio Novo Property ....................................................................... 13

5.4. PHYSIOGRAPHY ....................................................................................................................... 14 Figure 4: Rio Novo Property Plotted on Digital Terrain Model (source Shuttle Radar Topography Mission) 14

6. HISTORY .......................................................................................................................................... 14

7. GEOLOGICAL SETTING ..................................................................................................................... 16

7.1. REGIONAL GEOLOGY ............................................................................................................... 16

Figure 5: Tectonic location of the Carajás Mineral Province (after Grainger et al, 2008) ............................ 17

Figure 6: Geology of the Carajás District showing the Rio Novo property .................................................. 18

7.2. LOCAL GEOLOGY ..................................................................................................................... 19

Figure 7: Geology of the Rio Novo Property ............................................................................................... 20

8. MINERAL DEPOSIT TYPES ................................................................................................................ 21

8.1. IRON-RICH IRON OXIDE-COPPER-GOLD .................................................................................. 21

Table 2: Approximate Resources of Carajás IOCG Deposits ..................................................................... 22

8.2. INTRUSION RELATED COPPER-GOLD (Mo–W–Bi–Sn) ............................................................. 22

8.3. IRON OXIDE POOR COPPER-GOLD-MOLYBDENUM ................................................................ 23

8.4. SEDIMENT-HOSTED, EPIGENETIC GOLD-PLATINUM-PALLADIUM .......................................... 23

8.5. IRON ORE ................................................................................................................................ 24

8.6. MANGANESE ........................................................................................................................... 25

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8.7. NICKEL ..................................................................................................................................... 25

9. MINERALIZATION ............................................................................................................................ 25

Figure 8: Mineral Targets at Rio Novo ........................................................................................................ 26

10. EXPLORATION ................................................................................................................................. 27

10.1. EXPLORATION BY TECK.................................................................................................... 27

Figure 9: Copper Mineralization in DH-13, RN-1 ........................................................................................ 28

Figure 10: Varying Styles of Sulphide Mineralization, Alteration and Brecciation Intersected at RN-5 ........ 29

Figure 11: Chalcopyrite Veinlets in BIF, RN-7 ............................................................................................. 31

Figure 12: High-grade Gossan at RN-11 ..................................................................................................... 32

Figure 13: Coarse Actinolite-Albite Alteration at RN-11 ............................................................................... 32

10.2. EXPLORATION BY INV METALS ........................................................................................ 33

10.2.1 SOIL GEOCHEMICAL SURVEYS ......................................................................................... 33

Figure 14: INV Metals In-fill Gridding ........................................................................................................... 33

Figure 15: INV Metals In-fill Copper in Soil Geochemical Survey ................................................................ 34

Figure 16: INV Metals In-fill Gold in Soil Geochemical Survey, Rio Novo North .......................................... 35

Figure 17: INV Metals In-fill Palladium in Soil Geochemical Survey, Rio Novo North .................................. 35

Figure 18: INV Metals In-fill Platinum in Soil Geochemical Survey, Rio Novo North .................................... 35

Figure 19: INV Metals In-fill Palladium in Soil Geochemical Survey, Detail, Eastern Rio Novo North ......... 36

10.2.2 GEOLOGICAL SURVEY ...................................................................................................... 36

10.2.3 GEOPHYSICAL SURVEYS ................................................................................................... 36

10.2.4 OTHER TARGETS .............................................................................................................. 37

Figure 20: Outcropping Iron Formation at RN-7 ........................................................................................... 37

11. DIAMOND DRILLING ........................................................................................................................ 38

11.1. PREVIOUS DRILLING BY TECK .......................................................................................... 38

Table 3: Significant Drill Results .................................................................................................................. 38

11.2. INV METALS DIAMOND DRILLING ................................................................................... 38

Figure 21: Location of INV Metals Drilling at Target RN-7 ........................................................................... 39

Table 4: Significant Drill Results at RN-7 ..................................................................................................... 39 Figure 22: Hydrothermal Magnetite and Chalcopyrite in Hole 32 at RN-7 .................................................... 40

Figure 23: Location of INV Metals Drilling at Target RN-11 ......................................................................... 41

Table 5: Significant Drill Results at RN-11 .................................................................................................. 41

Figure 24: Location of INV Metals Drilling at Target RN-5 ........................................................................... 42

Table 6: Available Drill Results at RN-5 ...................................................................................................... 43

11.3. AUGER DRILLING BY INV METALS ................................................................................... 43

Figure 25: Status of INV Metals Auger Drilling at Rio Novo North ............................................................... 44

12. SAMPLING METHOD AND APPROACH ............................................................................................ 44

12.1. SOIL GEOCHEMICAL SAMPLING ...................................................................................... 44

12.2. DIAMOND DRILL AND AUGER CORE SAMPLING ............................................................. 45

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13. SAMPLE PREPARATION, ANALYSES AND SECURITY ........................................................................ 45

14. DATA VERIFICATION ........................................................................................................................ 46

15. ADJACENT PROPERTIES ................................................................................................................... 47 Figure 26: Adjacent Properties ...................................................................................................................... 48

16. MINERAL PROCESSING AND METALLURGICAL TESTING ................................................................. 48

17. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ............................................................. 48

18. OTHER RELEVANT DATA AND INFORMATION ................................................................................ 48

19. INTERPRETATION AND CONCLUSIONS ............................................................................................ 48

20. RECOMMENDATIONS...................................................................................................................... 49

Table 7: Proposed Budget for Year 2 .......................................................................................................... 50

21. REFERENCES .................................................................................................................................... 50

22. DATE AND SIGNATURE PAGES ........................................................................................................ 52

23. CERTIFICATE .................................................................................................................................... 53

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1. SUMMARY

This report has been prepared for INV Metals Inc. in order to a) provide an update and review of the geology and exploration potential of the Rio Novo copper-iron-gold-platinum-palladium project and b) file on SEDAR as a current NI 43-101 Technical Report in support of a “bought deal financing” announced by INV Metals on October 21, 2010. The Rio Novo property consists of four claims totaling ~29,000 hectare (ha) located within the Carajás district, state of Pará, Brazil. INV Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil, Namibia and Canada. Currently, INV Metals' primary assets are: (1) its option to acquire 50% of the Rio Novo property, located in Brazil, (2) its option to acquire 50% of the Kaoko property, located in Namibia, (3) its 100% owned Itaporã gold properties, located in Brazil and (4) its option to acquire 50% of the Thorne Lake gold property, located in northwestern Ontario. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Robert Bell, P. Geo., CEO of INV Metals and the qualified person, has visited the property numerous times, most recently in October 2010. The ~29,000 hectare (ha) four claim Rio Novo property is strategically located within the Carajás district of Brazil, one of the world’s most prolific mining camps. INV Metals Inc. (“INV Metals”) gained access to the property through an option – joint venture agreement (the “Agreement”), dated July 30, 2009 and made effective October 28, 2009, which forms part of a series of transactions with Teck Resources Limited (“Teck”). Under the terms of the Agreement, INV Metals can earn an initial 50% interest in the Rio Novo property by making exploration expenditures of $7 million over three years, with a commitment to fund a minimum of $CDN 4 million over the first two years. Previous work by Teck had identified numerous zones of hydrothermal alteration and brecciation characteristic of iron oxide-copper-gold (“IOCG”) deposits, containing variable amounts of disseminated and stringer chalcopyrite, with intersections grading up to 55 m at 1.3% copper at target RN-1 and 183 m at 0.53% copper at target RN-5. In addition, Teck identified at least three iron ore targets, including a) a high grade hematitic iron formation over a strike length of 1,200 m with auger drill intersections of up to 79.2% Fe2O3 over 11 metres, b) a north-south trending >5 km long iron formation from which grab samples returned values up to 97.6% Fe2O3, and c) an iron formation associated with IOCG target RN-7. Two kilometres east of the property, the Serra Pelada deposit is reported to have produced over 2 million ounces of gold, with unknown amounts of platinum and palladium, by artisanal miners (“garimpeiros”). The locally graphitic sedimentary rock sequence hosting the deposit is interpreted to strike towards the Rio Novo North claim. An airborne electromagnetic survey (“VTEM”) survey detected two conductive (presumably graphitic) horizons at Rio Novo North with locally coincident gold-platinum-palladium in soil anomalies. INV Metals has just completed its first year work program under the agreement, having expended approximately CDN$2.7 million. Work to date has included extensive in-fill soil sampling, mapping, re-logging of Teck’s drill holes, evaluation and prioritization of VTEM conductors, induced polarization (“IP”) geophysical surveys, and diamond drilling of 21 holes totaling 5,571.9 metres at targets RN-7, RN-11, and RN-5. In addition auger drilling of soil

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geochemical anomalies underlain by the interpreted strike extension of the sequence of rocks hosting the Serra Pelada deposit is ongoing as of the date of this report. Based on highly encouraging results to date, it is the author’s opinion that additional work is warranted to further test the property for its copper, precious metal and iron ore potential. It is recommended that a program comprised of additional infill soil sampling, mapping, IP and ground magnetic surveys, and diamond drilling of 31 holes totaling 9,500 metres be carried out to test nine target areas, with a proposed budget estimated at $CND 3.0 million in 2011.

2. INTRODUCTION

2.1. TERMS OF REFERENCE

This report has been prepared for INV Metals Inc. in order to a) provide an update and review of the geology and exploration potential of the Rio Novo copper-iron-gold-platinum-palladium project and b) file on SEDAR as a current NI 43-101 Technical Report in support of a “bought deal financing” announced by INV Metals on October 21, 2010. The Rio Novo property consists of four claims totaling ~29,000 hectare (ha) located within the Carajás district, state of Pará, Brazil. INV Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil, Namibia and Canada. Currently, INV Metals' primary assets are: (1) its option to acquire 50% of the Rio Novo property, located in Brazil, (2) its option to acquire 50% of the Kaoko property, located in Namibia, (3) its 100% owned Itaporã gold properties, located in Brazil and (4) its option to acquire 50% of the Thorne Lake gold property, located in northwestern Ontario. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Robert Bell, P. Geo., CEO of INV Metals and the qualified person, has visited the property numerous times, most recently in October 2010.

2.2. SOURCES OF INFORMATION

Much of the background information is updated from a previous report titled “Technical Report, Rio Novo Property, Carajás District, Pará, Brazil, for International Nickel Ventures Corporation” dated March 20, 2010 and prepared by R. Bell. Technical information in that report was derived from a variety of sources, including internal Teck reports and presentations, technical articles in scientific publications, and from first hand observations made during multiple site visits and Technical Committee meetings attended by the author. Since late October, 2009, the information is derived from data generated by INV Metal’s exploration activities. All documents used in the preparation of this report are listed in Section 21.0, References. The author has visited the property six times since the effective date of the agreement, including three Technical Committee meetings held between INV Metals and Teck staff. In addition INV Metals’ Qualified Person, Scott Jennings, has visited the property once during 2010.

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2.3. UNITS OF MEASURE

Throughout this report, common measurements are in metric units, with linear measurements in millimetres (mm), centimetres (cm), metres (m) or kilometres (km). Metal contents are given as parts per billion (ppb), parts per million (ppm), grams per tonne (g/t), or percentage (%). Ages of various rock units are given in millions of years before present (Ma) or billions of years before present (Ga). All currencies are in Canadian dollars unless otherwise denoted.

3. RELIANCE ON OTHER EXPERTS

This report has been prepared for INV Metals. The information, conclusions, opinions, and estimates contained herein are based on:

• Information available at the time of preparation of this report, • Assumptions, conditions, and qualifications as set forth in this report, and • Data, reports, and other information supplied by Teck and other third party sources.

For the purpose of this report, the author has relied on ownership information provided by Teck. Pedro A. Garcia, a lawyer with Veirano Advogados, of Av. Presidente Wilson, 231 23rd floor, 20030-021, Rio de Janeiro, Brazil, provided a positive, current title opinion dated October 22, 2010. Except for the purposes legislated under provincial securities laws any use of this report by any third party is at that party’s sole risk.

4. PROPERTY LOCATION AND DESCRIPTION

4.1. PROPERTY LOCATION

The property is located immediately east of the town of Parauapebas in Pará State, Brazil, within the prolific Carajás mining camp (Figure 1). It extends approximately 20 km in an east-west direction and 25 km in a north-south direction, within the region bounded by Universal Transverse Mercator (UTM) coordinates 625700E – 645600E and 9326500N – 9351500N in UTM Zone SAD69 – 22South.

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Figure 1: Location and Regional Access to Rio Novo

4.2. PROPERTY DESCRIPTION

The Rio Novo property consists of four exploration claims (see Table 1) encompassing 28,937 ha that Teck acquired by the staking of open ground. Details of the property are provided in Table 1. Note that the annual fees listed are in Brazilian real. Three year extensions for Rio Novo North and Rio Novo West were granted by the Departamento Nacional de Produção Mineral (“DNPM”) on February 2, 2010. A third party retains a 15% Net Profits Interest in minerals produced from the Rio Novo claim (2150), capped to a maximum of $200,000 Canadian. There are no known environmental liabilities associated with the property. There are no known tailings ponds, waste deposits, or significant improvements on the property, other than a few small farm houses. The copper mineral occurrences are all located well within the confines of the Rio Novo, Rio Novo West, and Rio Novo East claims. The soil anomaly at target RN-8 may trend off the Rio Novo East claim to the north. All permits required to operate on the property are in place. In Brazil, there are a variety of state or federal regulations that must be adhered to regarding environmental matters, depending on the classification of the area in which the claims are located. In July 2008, the Brazilian federal government adopted Federal Act 6514 regarding a new requirement to obtain an environmental permit for all types of mineral exploration activities. There is an application fee of approximately $2,000 Reais for the permits, which are granted by state environmental agencies. On July 7, 2009 Teck was granted the permit from SEMA (Secretaria do Meio Ambiente do Pará) for the Rio Novo Property. The permit is valid through to July 6, 2012 and requires submission of an annual report.

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Table 1: Property Details

DNPM # PERMIT TITLE TECK NAME GRANTED

AREA (ha) STATUS GRANTED OWNER COMMENT ANNUAL

FEE DUE IN JAN.

ANNUAL FEE DUE IN

JULY

852306/92 11298 RIO NOVO NORTH 9000

3 years-Extension Permit due on 02/02/2013

02-Feb-10 Teck Cominco

DNPM granted Teck Cominco Brasil S.A. a 3 year Extension

- $25,830

850133/87 12516 RIO NOVO WEST 5000

3 years-Extension Permit due on 02/02/2013

02-Feb-10 Teck Cominco

DNPM granted Teck Cominco Brasil S.A. a 3 year Extension

- $14,350

850855/06 2150 RIO NOVO 5000

3 year extension applied for, approval pending

22-Mar-07 Teck Cominco

Partial Report filed on Jan. 20, 2010

- $9,500

850410/07 6170 RIO NOVO EAST 9937.48

3 year extension applied for, approval pending

06-Jul-07 Teck Cominco

Partial Report filed May 06, 2010

$18,881 -

Note that a “Partial Report” is an interim report submitted prior to the final report. All of the claims are in good standing. For claims Rio Novo North and Rio Novo West (see Table 1), if INV Metals is not able to complete sufficient exploration work and file a final exploration report by February 2, 2013, evidencing the existence of a deposit which is technically and economically exploitable, the mineral rights over those claims will lapse on the exploration licence expiry date. For claims Rio Novo and Rio Novo East (see Table 1) INV Metals shall have three years from the date the DNPM grants an extension which is pending.

If a final report is filed and the DNPM rejects or defers its decision on the report, the area will become available for tender offers for 60 days during which period any interested parties, including INV Metals, may submit their offers for an exploration licence on that portion of the property. The DNPM will review the offers and will elect the bid that presents, in its view, the most favourable conditions to meet the interests of the mineral sector. INV Metals may have advantage in the tender procedure based on its previous exploration work, if any, but there can be no assurance that it will be able to obtain another exploration licence to continue exploration work on the properties beyond the final report due dates.

If no exploration report is submitted by the holder of the exploration licence by the end of the exploration term, then the mineral rights will lapse and the area will be available for new applications for exploration licences under the priority system (i.e. first come, first served basis) on the first business day after the expiry of the licence. INV Metals may limit the area for which it prepares and files a final exploration report and allow the exploration licences for the remaining portion of the property to lapse.

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4.3. AGREEMENT WITH TECK RESOURCES LIMITED

The exploration option and joint venture agreement covering the Rio Novo property is part of a transaction between INV Metals and Teck, involving the issuance of 2,875,929 INV Metals shares to Teck, an equity rights agreement, the transfer of INV Metals’ ~20% indirect interest in the Santa Fé – Iporá nickel laterite deposits in Goiás State, Brazil to Teck, a similar option agreement of Teck’s Kaoko, Namibia copper project, and an umbrella agreement linking all of the documents together. The effective date of the exploration option and joint venture agreement is October 28, 2009. INV Metals holds an option to earn an initial 50% interest in the Rio Novo project by spending $7 million over 3 years, with $4 million committed to be expended over the first two years. INV Metals acts as the operator during its earn-in period. Upon INV Metals vesting at 50%, a joint venture is formed and Teck becomes the operator. Teck may elect up to 60 days after the third anniversary to earn an additional 10% interest in the project (for a 60% interest) by funding $7 million in expenditures over two years. In addition, if INV Metals had contributed to joint venture costs after the formation of the joint venture (i.e. between the time that INV Metals has expended $7 million and Teck’s election to increase its interest), Teck would fund an additional amount equal to two times 20% of such contributions by INV Metals to the joint venture (this amount is provided in order to credit INV Metals for its share of joint venture costs incurred with respect to the 10% interest in the project that Teck is earning). If Teck does not elect to increase its interest to 60% then INV Metals would have the option to elect, within 30 days, to earn an additional 10% interest in the project (for a 60% interest) by funding a further $7 million over two years, in which case INV Metals would continue as the operator. If INV Metals earns a 60% interest Teck would have a second option to elect, within 30 days, to earn back to a 60% interest by:

a) making an initial cash payment to INV Metals of $7 million; b) funding additional expenditures of $14 million over three years; and c) making an additional optional cash payment to INV Metals of $3.5 million, such

payment to be made prior to the end of the three year period in order to vest.

4.4. BRAZIL

Under the Brazilian Constitution, all mineral resources in Brazil belong to the Brazilian government. The Brazilian Constitution and mining act impose on mining companies various regulatory restrictions relating to, among other things:

a) the manner in which mineral deposits are exploited; b) the health and safety of workers and the safety of residential areas located near

mining operations; c) the protection and restoration of the environment; d) the prevention of pollution; and e) the support of local communities where mines are located.

Mining companies in Brazil can only explore and mine for mineral resources pursuant to exploration licences or mining concessions granted by the DNPM, an agency of the Ministry of

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Mines and Energy of the Brazilian government. In order to acquire a claim, a company must present a request to the DNPM that includes a map with the desired area to be claimed accompanied by a report on the regional/local geology, the mineral substance targeted, a plan with the proposed exploration program and the expected budget for each phase/activity. The application fee is R$ 420.28 (approximately CDN$ 250.00) per license area. The maximum size of each license is 2,000 ha, with the exception of the northern and centre-west region, “Amazônia Legal” (Legal Amazon), where the size increases to 10,000 ha. If the area is available, the DNPM will grant an exploration license for an initial period of three years. On-site exploration activities must start within 60 days of official publication of the issuance of an exploration licence. The annual fee of R$ 1.90/ha (~ CDN$ 1.13) will become payable in July, if the license is published between January 1st and June 30th or becomes payable in January, if the license is published between July 1st and December 31st. Penalties for failure to make the required payment are R$ 1,911.92, or approximately CDN$ 1,139, per license. The license can be dropped by notifying the DNPM in writing within the first year of the licensed period. After that, a final exploration report must be filed by the end of the license period. Exploration licences are renewable at the DNPM’s discretion for another period of one to three years, provided that the requesting party is able to show that the renewal is necessary for proper conclusion of exploration activities and the renewal is requested within 60 days of the termination of the initial period. During the extension period, the license fee is calculated at R$2.87/ha/year (~ CDN$ 1.71). Upon completion of exploration at the site, the grantee must submit a final report to the DNPM. If, by the end of the license period, a final report is not presented the DNPM applies a penalty of R$ 1.90/ha (~ CDN$ 1.13) and the area is declared open. If the exploration reveals the existence of a mineral deposit that is economically exploitable, the grantee has one year (which the DNPM may extend) from approval of the report by the DNPM to apply for a mining concession or to transfer its right to apply for a mining concession to an unrelated party. The Mining Concession request must include a Plan for the Economical Exploitation (PAE) of the property, which has to contain proposals for the:

a) Initial Phase – Construction and pre-operation details; b) Operation Phase – Mine layout, equipment, processing plant, etc.; and c) Post Operation Phase – Environmental Recovery Plan.

When a mining concession is granted and published in the Diário Oficial da União (“DOU”), the holder of the concession must begin on-site mining activities within six months. An environmental permit is required prior to installation of mine and processing facilities. The DNPM grants mining concessions for an indeterminate period of time lasting until the exhaustion of the mineral deposit. Extracted minerals that are specified in the concession belong to the holder of the concession. With the prior approval of the DNPM, the holder of a mining concession can transfer it to an unrelated party that is qualified to own concessions. The Brazilian government charges a royalty known as the CFEM (Compensação Financeira pela Exploração de Recursos Minerais) on the revenues from the sale of minerals extracted, net of taxes, insurance costs and costs of transportation. The current annual rates are:

a) 2% for iron ore, kaolin, copper, nickel, fertilizers and other minerals; b) 3% on bauxite, potash and manganese ore; and

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c) 1% on gold. The Brazilian mining act and ancillary mining laws and regulations also impose other financial obligations. For example, mining companies must compensate landowners for the damages and loss of income caused by the use and occupation of the land (either for exploitation or exploration) and must also share profits with the landowners (at the rate of 50% of the CFEM). Mining companies must also compensate the government for damages caused to public lands.

5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1. ACCESS

The claims are located about 36 km southeast of the Carajás airport by paved roads and the paved state highway PA-257 which connects Parauapebas to El Dorado dos Carajás and crosses the southern edge of the claims in an east-west direction (Figure 2). From the highway a network of farm roads provides reasonable access throughout the property, even in the rainy season with a four wheel drive vehicle. The orange hatched areas on Figure 2 are cities.

Figure 2: Property Location and Access

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5.2. CLIMATE

Located only ~6° south of the equator, the climate of the area is tropical, with little variation in mean monthly temperatures throughout the year. The region has two basic seasons – summer, the rainy season, which runs from November to June, and winter, the dry season, running from July to October. During the summer the medium temperature is 30°C, while in winter it is 28°C. Annual rainfall is typically about 2.1 metres, making the rainy season occasionally impossible to work due to roads flooding and washing out. Average rainfall for July is about 21 mm, while in February and March it exceeds 350 mm per month. Work can be carried out year round; however, diamond drilling is usually curtailed during the height of the rainy season, typically December to March, due to roads becoming locally impassable for heavy equipment.

5.3. INFRASTRUCTURE

The centre of the property lies about 17 km east of the town of Parauapebas, a regional centre with a population of about 150,000, and 17 km west of the town of Curionopólis. About 40 km to the west is Vale’s mining town of Carajás, a community built to house workers at its iron ore mines. A small public airport at Carajás has daily flights. A rail line from Carajás extends 900 km to the Atlantic port city of São Luís, built to export the iron ore. A new power line, constructed by Vale to supply its new Onça-Puma nickel mine, crosses the property (Figure 3). The property is large enough to sustain the facilities required for a mining operation, tailings disposal, etc. Water is available from a number of local sources. Parauapebas is a mining centre and therefore a good source of skilled labour and supplies.

Figure 3: New Power Line Crossing the Rio Novo Property

http://wikitravel.org/en/S%C3%A3o_Lu%C3%ADs�

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5.4. PHYSIOGRAPHY

The area mostly comprises undulating pastoral farmland with small forest remnants commonly found on the tops of the highest hills. Rugged terrain occurs in the central part of the property and to the northeast, with elevations reaching 500 metres or more (Figure 4). Most of the ridges trend northeasterly, although in the central parts and northeast corner they are aligned more to the northwest. In the central and southern portion of the Rio Novo East claim, the topography is characterized by rolling hills trending generally west-northwest. Bedrock exposures are relatively abundant and provide a reasonable idea of the underlying geology.

Figure 4: Rio Novo Property Plotted on Digital Terrain Model (source Shuttle Radar Topography Mission)

6. HISTORY

Exploration of the property prior to Teck is mostly unknown at this time. Companhia Vale do Rio Doce (now Vale) is known to have drilled at least one hole in the proximity of prospect RN-5 (see Figures 7 and 15 for location of all prospects). Teck’s and INV Metals’ exploration history on the property is as follows: 2002: As part of the South Amazon Craton regional joint venture (“SAC JV”) with Inco (now

Vale), Teck as operator of the SAC JV completed a first pass program of geological reconnaissance, rock and stream sediment sampling over the Rio Novo mineral

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concession. Anomalous copper-gold stream silt and rock results were obtained. Based on the geological observations and on the sampling results the area was recommended for further work. At some point thereafter in 2002 Inco withdrew from the SAC JV.

2003: Line cutting, soil sampling, mapping and a ground magnetic survey were carried out. Soil

anomalies and “gossans” with anomalous copper-gold values were identified and a detailed soil sampling was implemented on a 400 m by 50 m grid. A first pass exploration program was carried out over the Rio Novo North and Rio Novo West areas. Based on geological characteristics and anomalous rock and stream sediment results both concessions were strongly recommended for application.

2004: On the Rio Novo claim the soil sampling grid was tightened to 400 m and 200 m spaced

lines and samples collected every 50 metres. Six discrete soil anomalies were identified and three of these were drill tested by eight diamond drill holes totalling 1,560.20 metres.

2005: Reconnaissance work was completed over the Rio Novo East area, and a claim applied

for based on the location of anomalous stream sediment and rock samples and several artisanal workings. On the Rio Novo claim a total of 20.9 line km of IP survey was carried out over soil anomalies RN-2, RN-3 and RN-4 by Fugro. Strong IP anomalies (high chargeability/moderate to low resistivity) were detected in the RN-4 target area. The association of IP and copper-gold-molybdenum soil anomalies at RN-4 was tested by three drill holes, totalling 718.95 metres.

2006: A ground EM survey (Pro TEM) totalling 10.8 line km was conducted over RN-1

(Fernando’s Garimpo area) as an orientation to determine the TEM response over the mineralization intersected in drill hole RN-D-13. Teck personnel carried out this survey utilizing equipment rented from Fugro. Results from the survey were excellent and showed that the main conductive zone had a strike length of 250 m trending at 290°, dipping approximately -60° to the south. All four claims were covered with an airborne magnetic and radiometric survey, flown by Prospectors and totalling 1,940 line km. Final products generated included Analytical Signal, Total Magnetic Intensity, Total Count (U + Th + K), K over Th and U, Th and K maps. At Rio Novo East, an initial soil grid was cut with 800 metre line spacing north of the base line and 1,600 metre line spacing south of the base line, totalling 137 line kilometres. The grid was tightened to 400 metre line spacing in the southwest portion of the property. Soil samples were collected at either 50 or 100 metre stations for a total of 1,632 samples. Soil sample analyses were used to generate isocontour maps in order to determine anomalous target areas. Geological mapping was conducted on Rio Novo East property; however, the eastern portion of the claim was not covered due to lack of permission to access farm roads owned by a local farmer named Oscar Fritz. Nine drill holes totalling 2,133.05 metres were drilled at targets RN-1 and RN-2 (Rio Novo) and RN-5 (Rio Novo East).

2007: Ten holes totalling 2,824 metres were drilled on targets RN-1, RN-5, RN-6, and RN-7.

Geotech flew an 84 line, 923.5 line kilometre VTEM and magnetic survey subsequent to the drilling.

2008: At Rio Novo North, 15 one kilometre long lines, spaced 500 m apart, were covered with a

magnetic survey, in order to aid the targeting of 24 shallow auger holes, totalling 370 metres, to search for the bedrock source to high-grade, large, massive hematite boulders. The database was updated and forwarded to MIRA Geoscience – Advanced Geophysical Interpretation Centre in Vancouver for 3D modelling (Gocad® Mining Suite).

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Delays in the granting of the SEMA permit resulted in the cancelation of the diamond drill program planned to test various VTEM conductors.

2009: INV Metals optioned the property on July 29, 2009. Following the closing of the

agreement on October 28th INV Metals implemented a program comprised of line cutting and an IP geophysical survey at RN-11, diamond drilling of one hole at RN-7, and a thorough review of Teck’s database, including the VTEM survey and soil geochemical data.

2010: INV Metals drilled an additional three holes at RN-7, nine holes at target RN-11, and

eight holes at target RN-5 for a total of 5,571.90 metres, including the hole drilled in late 2009. In addition, infill soil sampling was carried out over numerous targets, to bring the line spacing to 200 metres rather than the 400 metres utilized by Teck. An IP survey was conducted at RN-11 and RN-7, and abandoned at RN-5 due to conductive overburden. Auger drilling commenced on some precious metal soil anomalies on the Rio Novo North claim.

7. GEOLOGICAL SETTING

7.1. REGIONAL GEOLOGY

The Carajás Mineral Province (“CMP”), located on the southeastern margin of the Southern Amazon Craton in Brazil (Figure 5), is one of the world’s most highly mineralized metallogenic provinces. The CMP is comprised of two Archean tectonic blocks. The older Rio Maria granitoid–greenstone terrain lies to the south of Carajás. The northern tectonic block is known as the Itacaiúnas Belt (or shear belt), comprising the Itacaiúnas Supergroup of the Carajás Basin, and underlies the Rio Novo property. The geological evolution of the CMP occurred almost entirely in the Archean, with no tectonism from about 2.4 Ga to 1.9 Ga and then an episode of very extensive intraplate granitic magmatism, producing one of the most extensive A-type granitoid provinces globally. The Carajás region is bounded to the east by the north-south trending Neoproterozoic Araguaia Fold Belt and to the west by overlying Proterozoic volcanic, plutonic and sedimentary rocks of the Uatumã Supergroup. To the north, it is concealed by Proterozoic and Cenozoic sedimentary rocks of the Amazon Basin, and to the south, as noted above, the Rio Maria granitoid–greenstone terrain. The 2.98-2.90 Ga Andorinhas Supergroup is a greenstone sequence consisting of ultramafic and mafic volcanics intercalated at the base with iron formations of the Babaçu Group and in its upper sequences with chemical and clastic sediments of the Lagoa Seca Group. This granitoid-greenstone terrain is characterized by orogenic lode-gold deposits, typically poor in base metals, such as Reinarda Mineração Ltda’s (subsidiary of Australian-based Troy Resources NL) Lagoa Seca and Mamão gold mines (see www.try.com.au/). The Itacaiúnas Belt includes one of the best preserved Archean volcano-sedimentary successions in the world. Basement rocks consist of tonalitic to trondhjemitic gneiss and migmatites of the 2.8 Ga Xingú Complex and orthogranulites of the 3.0 Ga Pium Complex. The basement assemblage defines a broad, steeply-dipping, east-west trending ductile shear zone, the Itacaiúnas Shear Belt that experienced several episodes of reactivation during the Archean and Paleoproterozoic. The basement rocks are overlain by the metavolcanic – sedimentary

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rocks of the Rio Novo Group and the 2.76 Ga Itacaiúnas Supergroup, which form the Archean Carajás Basin. The Itacaiúnas Supergroup records different metamorphic grades, ranging from virtually undeformed, low greenschist-facies rocks (Grão Pará Group) in the innermost portions of the belt, to intensely sheared amphibolites to granulite-facies rocks (Igarapé Salobo Group) at the northern edge of the Cinzento Strike Slip System. The Grão Pará Group is the dominant volcano-sedimentary sequence in the Carajás Basin, and includes lower greenschist facies basalts, felsic volcanics and significant banded iron formations (BIFs). These contain the giant iron deposits currently being mined by Vale. The Itacaiúnas Supergroup is overlain by the 2.68 Ga Águas Claras/Rio Fresco Formations, comprised of sandstones and siltstones that formed in a shallow marine to fluvial environment; these formations may be equivalent to the Temiskaming sediments in the Superior Province of Canada.

Figure 5: Tectonic location of the Carajás Mineral Province (after Grainger et al, 2008)

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The Carajás region has been intruded by granitic magmas of distinct ages and compositions. Paleoproterozoic intrusions (ca. 1.88 Ga) include several alkaline anorogenic granitic plutons, such as the Central Carajás and Cigano Granites. The latter belong to the most extensive A-type Proterozoic granitoid province globally, that covers thousands of square kilometres of the Amazon Craton. Syn-tectonic Archean intrusions (2.76-2.74 Ga) are comprised of alkaline granites and diorites of the Plaquê Suite that includes the Estrela Complex, Serra do Rabo Granite, and Planalto Granite. Younger, late Archean intrusions include alkalic to A-type granites (ca. 2.57 Ga), such as the Old Salobo Granite and the Itacaiúnas Granite. There are also ultramafic to mafic intrusions, including the ca. 2.75 Ga Luanga mafic–ultramafic complex. Figure 6 provides a geological overview of the Carajás and Rio Novo property areas. Rocks of the Itacaiúnas Supergroup form a structural province represented by the major east-west to north-northwest trending Carajás and Cinzento strike-slip systems. Transpressional to transtensional deformational phases throughout the Late Archean, and transpressional reactivations of the Carajás and Cinzento strike-slip systems in Proterozoic times, dominate the tectonic evolution of the region.

Figure 6: Geology of the Carajás District showing the Rio Novo property

Sinistral transpression affected the basement assemblage (Xingu Complex, Pium Complex, Plaque Suite, Igarapé-Salobo Group) at 2.85-2.76 Ga forming the Itacaiúnas shear belt. The belt forms a broad system of linked, moderately to steeply dipping sinistral strike-slip and thrust-

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dominated ductile shear zones of upper amphibolite facies metamorphism. Volcanic rocks and banded iron formations of the Grão Pará Group (Rio Novo Group equivalent) were deposited in intracratonic basins after 2.76 Ga. Between 2.7 and 2.6 Ga, dextral transtension led to the development of the Carajás and Cinzento brittle-ductile to brittle strike slip fault system in which the rock units are down-faulted inside major dilational jogs. The orientation of the faults was probably strongly controlled by the trend of pre-existing fabrics (Itacaiúnas shear zone) in the underlying basement assemblage. At about 2.6 Ga, a sinistral transpressional regime with an inversion of the basins developed by fault reactivation and moderate to strong deformation/inversion of the rocks adjacent to the Carajás and Cinzento fault systems. During this time, clastic influx into the Carajás basin continued (Águas Claras formation, Rio Fresco Group). All large IOCG deposits of the Carajás region have ages around 2.6 Ga coinciding with the major shift from extension to compression, alkaline plutonism and the early onset of the rise of atmospheric oxygen. A pronounced shift in the tectonic stress regime from extension to compression while emplacing the alkaline plutons could have caused fluid migration along reactivated structural corridors (ductile-brittle shear and fault zones) into shallow parts of the basin. At about 1.9 Ga, the area experienced extension or transtension accompanied by the emplacement of mid-Proterozoic granites (Cinzento Granite, Central Carajás Granites) and dike swarms.

7.2. LOCAL GEOLOGY

The Rio Novo property lies in the eastern portion of the CMP and is largely underlain by rocks of the basal Rio Novo Group (minimum age of 2763 ± 6 Ma), Itacaiúnas Supergroup, composed mainly of mafic (and lesser intermediate) volcanic rocks, banded iron formations and minor ultramafic schists, all metamorphosed from greenschist facies to lower amphibolite facies (Figures 6 and 7). The Rio Novo Group is overlain to the north by the Archean (~2.6 Ga) Rio Fresco Group, considered to be a platformal sequence of quartzite, impure marble, meta-conglomerate, carbonaceous and calcareous beds and red meta-siltstone units metamorphosed to sub-greenschist facies. The nature of the contact between the Rio Novo and Rio Fresco Groups has not been confirmed on the Rio Novo property, but is thought to be marked by an angular unconformity. The Rio Novo Group is intruded by the Estrela Granite Complex in the southern portions of the Rio Novo property. The Estrela granite is a composite A-type pluton with minimum age of 2527 ± 34 Ma. The post-orogenic A-type Cigano Granite (1883 ± 2 Ma) intrudes Rio Novo and Rio Fresco Group rocks in the northwestern portion of the Rio Novo property. The Rio Novo North claim is primarily underlain by sedimentary rocks of the Rio Fresco Group, and as such the most-prospective zone for IOCG mineralization may be at depth, near the base of the Rio Fresco Group. The primary exploration potential of Rio Novo North is for potential extensions or analogues of the Serra Pelada deposit, gold, and iron ore.

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Figure 7: Geology of the Rio Novo Property

Based on the property geology and its regional setting, the following target types are considered prospective at Rio Novo:

1) Iron-oxide-rich IOCG mineralization (e.g., Sossego, Salobo, Igarapé Bahia/Alemão, Cristalino, and 118)

2) Intrusion-related Cu–Au–(Mo–W–Bi–Sn) and W deposits (e.g. Águas Claras, Breves) 3) Iron-oxide-poor Cu-Au-Mo mineralization (e.g. Serra Verde) 4) Sediment-hosted epigenetic Au-Pd-Pt mineralization (e.g. Serra Pelada)

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5) Enriched banded iron formation-hosted iron mineralization (e.g. Serra Norte, Serra Sul)

8. MINERAL DEPOSIT TYPES

The following is a description of types of deposits that occur in the Carajás district. INV Metal’s exploration program is targeting IOCG deposits, iron ore, and Serra Pelada analogue gold-platinum-palladium deposits. INV Metals is basing its exploration on several model types, primarily the IOCG model of mineral deposits, which are further described below. The Serra Pelada lode gold-platinum-palladium deposit may be associated with the IOCG mineralizing systems.

8.1. IRON-RICH IRON OXIDE-COPPER-GOLD

The iron oxide-copper-gold class of mineral deposits has become a prime exploration target over the past 15 to 20 years, as they tend to cluster within districts as high tonnage, potentially high-grade deposits somewhat akin in scale to porphyry deposits. Deposits can range in the order of 0.25 to 1 billion tonnes grading to +1% copper and 0.5 g/t gold. Examples of deposits in this class include Olympic Dam and Ernest Henry in Australia, Candelaria, Manto Verde and Mantos Blancos in Chile, and Salobo, Sossego, and Crystalino in Carajás, Brazil. The Kiruna, Sweden magnetite-apatite deposits can be considered an end-member of the family. IOCG districts are characterized by widespread sodium and sodium-calcium rich alteration assemblages (tens to hundreds of square kilometres), with more discrete zones of potassium-iron alteration (K-feldspar or sericite, or albite and biotite, or biotite and chlorite), and the presence of large tonnage epigenetic magnetite and/or hematite rich iron ores, with gangue minerals typically including apatite, actinolite, calcite and quartz. Mineralization primarily consists of disseminated to semi-massive veins and stringers of one or more copper sulphides and pyrite, with gold ± Co-U-Ag-REE enrichments, commonly, though not exclusively, associated with magnetite or hematite. The deposits are hosted within a wide range of lithologies, and exhibit a range of morphologies from stratabound sheets to irregular stockwork breccia zones. Virtually all deposits formed by replacement of the intensely altered, typically brecciated, host rocks, with the alteration assemblage dependent on the host lithology. The deposits tend to occur along high to low-angle faults which are generally splays off major crustal scale faults. Many districts have an association with evaporites, hence the saline-rich alteration assemblages. Half of the top ten IOCG deposits in the world occur within the Carajás district. Approximate resources of these Carajás deposits are provided in Table 2 below (from Grainger et al, 2008).

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Table 2: Approximate Resources of Carajás IOCG Deposits

Deposit Tonnage (Mt) Cu (%) Au (g/t) Year of Discovery Salobo* 789 0.96 0.52 1977 Sossego+ 355 1.1 0.28 1996 Cristalino 500 1.0 0.30 1998 Igarapé Bahia – Alamão 219 1.4 0.86 1995 Cento e Dezoito (118) 170 1.0 0.30 1998

* Vale 2008 gives proven and probable reserves at Salobo of 928.5 million tonnes at 0.77% Cu and 0.46 g/t Au + Vale 2008 gives proven and probable reserves at Sossego of 166.5 million tonnes at 0.93% Cu and 0.27 g/t Au The Carajás IOCG deposits occur within a west-northwest – east-southeast trending fault corridor approximately 50 km wide, centred on the Carajás Fault. Igarapé Bahia - Alamão and Sossego occur as sub-circular domal features with marginal breccias, whereas Cristalino and Salobo are strongly elongated and controlled by shear or fault zones. All of these large deposits are Archean in age, dated at approximately 2.57 Ga. There is a remarkable coincidence between the mineralizing events and granitic activity. The deposits appear to be related to the emplacement of deeply derived and relatively deeply emplaced, volatile-rich alkalic magmas during extension around 2.57 Ga. The Carajás IOCG deposits display a number of similarities including: (1) variable host rock lithologies, in all cases including metavolcano–sedimentary units of the ~2.76 Ga Itacaiúnas Supergroup; (2) association with shear zones; (3) proximity to intrusions of different compositions (granite, diorite, gabbro, rhyolitic, or dacitic porphyry dikes); (4) intense hydrothermal alteration including sodic, sodic–calcic or potassic assemblages, together with chloritization, tourmalinization, and silicification; (5) magnetite formation followed by sulphide precipitation; and (6) a wide range of fluid inclusion homogenization temperatures (100–570°C) and salinities (0 to 69 wt% NaCl eq.) in ore-related minerals. Major differences among Carajás IOCG deposits include distinct hydrothermal alteration assemblages (e.g., high temperature silicates, such as fayalite and almandine, present only at Salobo) and ore minerals (e.g., chalcopyrite–chalcocite–bornite at Salobo; chalcopyrite ± chalcocite–digenite–covellite at Igarapé Bahia; and chalcopyrite–pyrite in the Sossego, Cristalino, and Alvo 118 deposits).

8.2. INTRUSION RELATED COPPER-GOLD (Mo–W–Bi–Sn)

Within the Carajás camp there are also a number of smaller copper-gold deposits (<50 million tonnes at hypogene grades of <2% copper and <1 g/t gold) with associated Mo, W, Sn and/or Bi, hosted largely in the Águas Claras/Rio Fresco Formations that are Proterozoic (1.88 Ga) in age, apparently related to the wide emplacement of A-type granites at about 1.88 Ga. This includes the Breves (50 million tonnes of primary ore at 1.22% Cu, 0.75 g/t Au, 2.4 g/t Ag, 0.12% W, 0.018% Mo, and 75 ppm Bi), Águas Claras (9.5 million tonnes of oxidized ore at 2.43 g/t Au), Gameleira and Estrela deposits (no size data available for the latter two). The 118 deposit (“Cento e Dezoito”) appears to be transitional between the Archean and Proterozoic deposits. Note that the Serra Pelada deposit (see Section 8.4) is also 1.88 Ga. There are a number of other deposits with little or no disclosed information, as well as numerous prospects and showings at various stages of evaluation, within the Carajás district. Both the Archean and Proterozoic deposit models are INV Metals’ primary targets at the Rio Novo property.

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8.3. IRON OXIDE POOR COPPER-GOLD-MOLYBDENUM

Serra Verde, a small deposit that has only undergone small scale mining by garimpeiros, is the only iron-oxide-poor Cu-Au-Mo mineralization described in the literature to date in the CMP; however, Teck has interpreted that the RN-1 and RN-6 targets to be of this deposit style. Mineralization at Serra Verde is similar to several mineral occurrences documented in other IOCG districts globally (e.g. Mt Elliott, Cloncurry District; Ferrum, Kiruna District). These occurrences are interpreted as intrusion-proximal, high temperature, skarn-like deposits, that formed in association with large-tonnage iron oxide-rich IOCG mineralization, but in themselves tend to be relatively small (although locally high grade). Iron oxide-poor Cu-Au-Mo mineralization is not considered a primary exploration target at Rio Novo, but must be considered in the context of associated IOCG mineralization. In addition, small-tonnage, but high grade Cu-Au-Mo mineralization could have a significant impact on the economics of a proximal large-tonnage (but lower-grade) IOCG mining operation. Serra Verde is hosted in metavolcanic rocks of the Rio Novo Group close to the contact with the 2.76 Ga Estrela Granite, 300 metres south of the southeast corner of the Rio Novo property. Previous workings focused on two, 20 to 30 m long copper-iron rich massive sulphide lenses grading 0.5 to 1 g/t gold. Amphibolites, schists, greywackes and iron formations of the Rio Novo group host the sulphide lenses. One lense occurs within quartz and chlorite rich basalts, and the other in biotite-muscovite-quartz-chlorite schists. Tourmaline occurs with the quartz and chlorite rich rocks. The lenses consist of about 85% chalcopyrite, 5% pyrrhotite, 3% pyrite, 3% cubanite, 2% molybdenite, and 1% sphalerite. The gold occurs as microscopic free gold within the chalcopyrite. In order of decreasing abundance, gangue minerals include quartz, magnesium-rich hornblende or actinolite, ilmenite and fluorapatite.

8.4. SEDIMENT-HOSTED, EPIGENETIC GOLD-PLATINUM-PALLADIUM

This is a unique category comprised of the famous Serra Pelada gold – precious group elements (“PGE”) deposit. Discovered by prospectors (“garimpeiros”) in 1979 and subsequently mined to 1988 by up to 80,000 garimpeiros, it is currently undergoing exploration by Canadian junior mining company Colossus Minerals Inc. Given the extensive unofficial mining history (~2 million ounces of gold, platinum and palladium unknown, from a pit approximately 400 m by 300 m by 100 m), the pre-mining resource is difficult to assess but is estimated to be about 110 tonnes of Au, 35 tonnes of Pd, and 18 tonnes of platinum. Grainger et al, 20008 noted a resource of 3.7 million tonnes grading 15.2 g/t Au, 4.09 g/t Pd, and 1.89 g/t Pt, however, INV Metals is unable to verify this estimate and it should not be relied upon; it is considered by the author as an indication of the potential of the property. Colossus Minerals has disclosed some spectacular bonanza-grade drill intersections, such as 52.43 metres at 18.57 g/t gold, 8.34 g/t platinum and 11.33 g/t palladium (Colossus press release, October 6, 2010). Gold and PGEs can occur as nuggets within the old open-pit workings, up to 6.7 kg in mass. The precious metal mineralization is hosted within the Archean Rio Fresco Formation, the equivalent of the Águas Claras Formation, which unconformably overlies the basal Rio Novo Group. It occurs within a large (100 m scale) overturned, isoclinal synformal fold hinge referred to as the Serra Pelada fold, that is cored by carbonaceous siltstone. Most of the resource is hosted within the carbonaceous and calcareous siltstone, but is also associated with magnetite-and sericite-hematite bearing hydrothermally brecciated country rocks, an extensive jasperoid alteration halo, and primary and lesser massive hematite and sericite metasomatism along east-west and northwest to north-northwest trending fault structures peripheral to the Serra Pelada deposit. The sequence was intruded by ilmenite-bearing diorites, producing a distinct contact

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aureole. Ore deposition may have been associated with the hydrothermal system developed surrounding the cooling intrusions. Presumably the diorites are the source of the precious metals, as well as leached metals from the underlying Archean mafic and ultramafic volcanic rocks. The siltstone-hosted mineralization is largely associated with zones of high carbon content, ranging up to 10%, within the black, carbon-rich unit of the carbonaceous and calcareous siltstone lithology. Extremely high-grade portions (up to 110,000 g/t Au and 16,000 g/t Pd and Pt) are normally associated with muscovite/sericite–kaolin–hematite–quartz–monazite alteration, with zones of secondary hydrated Fe-oxides and Mn-oxides, and appear black in hand specimen. However, minor zones within the carbonaceous and calcareous siltstone display intense sericite–kaolin alteration, appearing white in hand specimen. Visible gold and PGEs are common, generally within zones of amorphous carbon, or at the periphery of amorphous, irregular globular carbon masses, generally located within phyllosilicate-rich layers of the carbonaceous and calcareous siltstone. An extensive jasperoid alteration zone of amorphous fine-grained silica envelops the main carbonaceous and calcareous ore zone within the hinge of the Serra Pelada fold, and extends along its limbs. Proximal jasperoid alteration is associated with gold–PGE mineralization and occurs where the jasperoid has replaced and/or overprinted the black, carbon-rich unit of the carbonaceous and calcareous siltstone lithology. Associated hydrothermal alteration comprises a silica–muscovite–monazite assemblage with secondary hydrated iron oxides. Distal barren jasperoid alteration, within the carbonaceous and calcareous siltstone and impure marble sequence, is associated with silica alteration only. Sericite–hematite breccias up to 8 m wide, volumetrically minor features within the Serra Pelada Au–PGE deposit, are located at the contacts of the carbonaceous and calcareous siltstone, impure marble sequence and red siltstone, and also wholly within the carbonaceous and calcareous siltstone. They carry consistent grades of up to 20 g/t of Au, Pd and Pt within the Serra Pelada fold hinge area. Volumetrically minor magnetite-rich breccias sited within the hinge zone of the Serra Pelada fold, but also located along the lower limb, contain high-grade Au–PGE mineralization (up to 100's of g/t of Au–Pd–Pt). Massive hematite-hosted Au–PGE mineralization is only locally developed within dolomite of the impure marble sequence, along the lower limb of the Serra Pelada fold hinge. A proximal, massive hematite–Fe–Mg chlorite–quartz–monazite–apatite–dolomite alteration zone is surrounded by a broad distal, hematite–Mg-rich chlorite (clinochlore) –ferroan calcite–quartz–apatite ± biotite ± bornite ± chalcopyrite ± pyrrhotite alteration zone. This alteration zone occurs below the base of supergene weathering (the deposit is oxidized to depths of +300 m) and incorporates the only unweathered hypogene alteration of the Serra Pelada deposit. High-grade mineralization is located and concentrated within the hinge of a recumbent fold. The hinge plunges toward the southwest from the open-pit and has been interpreted to extend to the southwest corner of the property boundary and beyond based on drilling completed to date. Colossus interprets the structure to have been faulted off just past the boundary and thrust back up onto their property to the northeast, but this still has to be tested. In addition to the hinge area, there is also the potential for the limbs of the fold to host mineable widths of mineralization. As the Serra Pelada deposit is located just two kilometres east of the eastern boundary of the Rio Novo North claim, strike extensions of the mineralization or the host rocks provide a compelling secondary target.

8.5. IRON ORE

The Carajás district is most famous for its giant iron ore deposits of the Serras Norte, Sul, and Leste. The iron ore bodies occur within the Carajás Iron Formation, which is both underlain and

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overlain by mafic volcanic rocks of the Grão Pará Group, of the Itacaiúnas Supergroup. The Grão Pará Group is exposed along the northern and southern flanks of a synclinal structure, referred to as the Carajás fold, with a major shear zone called the Carajás shear running along the axis of the fold. There are nine deposits (N1-N9) in the Serra Norte, along the northern flank of the fold, with strike lengths of hundreds of metres to tens of kilometres and thicknesses of 250 to 300 metres. The combined resources of the nine deposits are 17.3 billion tonnes at 66 weight percent iron. Proven and probable resources at Carajás total 7.2 billion tonnes at 66.7% iron (Vale, 2008). There is currently no production from the deposits of Serra Sul, located along the southern flank of the fold (S1-S45), or from Serra Leste, located close to the Rio Novo property. However, there is extensive exploration currently ongoing at S11 as well as some exploration at Serra Leste. High-grade mineralization (>65% Fe) consists of hard and soft ores. The hard ores can be banded, massive and/or brecciated, and consist of hematite-martite and hematite types. The soft ores are very porous, discontinuous and tabular, friable and banded. The footwall to the high-grade iron ore is hydrothermally altered basalt. Jaspilites constitute the protore in most of the deposits. Varying degrees of hydrothermal alteration have affected the jaspilites to form the high-grade ores. The iron deposits were discovered in 1967 and production commenced in 1984. Vale, the owner of the deposits, is currently mining at a rate of about 85 million tonnes per annum from five orebodies. Iron ore provides a secondary target at Rio Novo, as Teck has already identified a ridge of high-grade iron formation which could represent an extension of the Serra Este deposit.

8.6. MANGANESE

Although INV Metals is not exploring for manganese on the Rio Novo property, this is included for completeness as the Carajás district hosts significant manganese deposits. The ~ 2.68 Ga Águas Claras Formation in the central and northern CMP hosts the Azul and Sereno manganese deposits. The Azul deposit, owned by Vale, has proven and probable reserves of 42.6 million tonnes grading 35.2% manganese. The open pit mine opened in 1985 and is expected to be in production through to 2020 (Vale, 2008).

8.7. NICKEL

Although INV Metals is not exploring for nickel on the Rio Novo property, this is included for completeness as the Carajás district hosts significant nickel laterite deposits, including Vermelho and Onça – Puma, both owned by Vale. The Onça – Puma deposit has proven and probable reserves of 82.7 million tonnes grading 1.73% nickel (Vale, 2008). Vermelho has mineral resources of 295 million tonnes grading 0.8% nickel (no cut-off) (Vale website).

9. MINERALIZATION

Through a program of geological mapping, soil geochemical surveys, diamond drilling and then an airborne VTEM survey, Teck identified 11 IOCG style targets, with the most significant ones summarized below. The targets were identified by Teck through a combination of soil

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geochemical anomalies and mapping of outcropping mineralization, brecciation and alteration typical of IOCG deposits. The prospect/targets areas, designated as RN-1, RN-2 etc, are located on Figure 8.

Figure 8: Mineral Targets at Rio Novo

RN-1 is defined by an approximately four kilometre long, up to 700 metre wide copper in soil anomaly greater than 300 ppm, with a gap in the middle splitting the anomaly into two halves. The western anomaly is about two kilometre long and 500 m wide, with a peak copper value of 2,357 ppm, and peak gold of 207 ppb. The eastern anomaly is 2.3 km long and 300 to 400 m wide, with a peak copper value of 842 ppm and peak gold of 82 ppb. The anomalies trend northwest-southeast parallel to the Estrela granite contact. There is no magnetic anomaly associated with RN-1. Mineralization at RN-1 is hosted by a fine-grained, plagioclase-phyric intermediate igneous rock (microdiorite?), proximal to the Estrela Granite. Host rocks are strongly foliated with a weak stretching lineation. There are two old workings, referred to as Fernando and Mauricio’s pits. Exposure in the pits reveals locally strong biotite ± scapolite, quartz, and feldspar alteration and abundant veins and breccia bodies with actinolite, quartz, chalcopyrite ± pyrite and molybdenite infill and alteration. Iron oxide content is low, but magnetite is locally abundant, such as noted in Teck’s DH-23. Chalcopyrite-rich mineralization with locally significant molybdenite occurs both as disseminated within zones of coarse pervasive actinolite replacement and in quartz-rich veins. The style of

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mineralization, notably iron-oxide poor and characterized by a very high chalcopyrite to other sulphide ratio, is reminiscent of the nearby Serra Verde occurrence, as described in Section 8.3. The RN-4 prospect was identified by a combination of soil geochemistry (the copper in soil anomaly is about 1 km by 700 m, with peak values of 935 ppm Cu and 132 ppb Au) and geological mapping followed by the completion a four line IP survey which identified a strong chargeability anomaly, culminating in 3 diamond drill holes with hole RN-D-09 returning 58 m @ 0.38% Cu along with anomalous molybdenum throughout the hole. The RN-5 target is marked in the field by a gossan-capped hill with local coarse-grained quartz infill, within a copper in soil anomaly 4.9 km in an east-west direction and about 500 m wide, with peak values of 1,200 ppm Cu and 308 ppb gold. The gossan graded about 800 ppm Cu and 0.4 g/t gold. Target RN-7 was identified as a 7 km long discontinuous copper in soil anomaly > 300 ppm copper. South of the peak copper anomaly, on a ridge top, there is a ~1 km long gold in soil anomaly with values greater than 25 ppb gold, with a peak value of 122 ppb. At RN-8, a 400 m by 400 m copper in soil anomaly, with a peak copper value of 1,057 ppm and 208 ppb gold is coincident with a VTEM and magnetic anomaly. Boulders of hydrothermal magnetite were located in the area. This target, located along the northern border of the property, requires more work and is considered to be relatively high priority The RN-11 prospect was discovered as Teck was winding down its exploration program and hence was not drilled. The target was outlined by a 1.4 km by 400 to 500 m copper-gold soil anomaly, with peak values of 1,258 ppm Cu and 317 ppb gold, which is roughly coincidental with a magnetic anomaly. A cobalt in soil anomaly, as defined by the 50 ppm contour, is situated directly over the magnetic anomaly. Two gossans were discovered by Teck, with a grab sample of the western one assaying 1% copper, and the easterly one returning 17% copper and 1.5 g/t gold. It is not certain whether these gossans are in place; they could be boulders with some displacement. A sample of the eastern anomaly collected by the author during the February 2009 due diligence site visit returned 27% copper and 4.6 g/t gold. The gossan contains chalcocite and various copper oxide minerals including malachite. Other outcrops in the area of the gossan exhibit very coarse-grained intense actinolite-albite alteration suggesting intense, voluminous hydrothermal fluid flow.

10. EXPLORATION

10.1. EXPLORATION BY TECK

Through a combination of soil geochemical surveys, typically on lines 400 metres apart and sampled at 50 to 100 metre intervals, and geological mapping, Teck identified 11 IOCG targets. Following a 30 hole, 7,239 metre drill program, Teck had an airborne VTEM survey flown, but did not have the opportunity to target any of the conductors. Additional details of Teck’s exploration history are provided in Section 6. In addition to the diamond drilling Teck drilled 24 auger holes at an ironstone target on Rio Novo North.

At RN-1 Teck completed 13 holes totalling 2,982 metres, the most intense drill testing of all the prospects. The best intersection on the entire project was in borehole 13, 55 m @ 1.3% Cu, 0.2 g/t Au, including 30.0 m @ 2.0% Cu and 0.32 g/t Au (Figure 9). Hole 16, a 100 m stepout to the

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west, cut 47 m @ 0.55% Cu, including 15.0 m @ 0.94% Cu, 0.22 g/t Au, while hole 17, 100 m east of hole 13, intersected 64 m @ 0.94% Cu, including 21.0 m @ 1.74% Cu and 0.32 g/t gold.

Figure 9: Copper Mineralization in DH-13, RN-1

A fault east of hole 17 appears to truncate the mineralization. However, the soil anomaly picks up and continues to the east. The Mauricio garimpo represents the surface expression of the RN-1 mineralization, while the Fernando pit occurs east of the fault between the two soil anomalies. Borehole 18, which undercut Fernando’s pit and tested a moderate electromagnetic conductor, intersected 0.69% Cu over 4.4 metres. The Fernando pit contains coarse molybdenite.

The RN-1 style of mineralization appears to be iron-oxide poor (see Section 8.3), which statistically could imply a smaller tonnage potential than the iron oxide rich ones, however, given the copper-gold grades and potential at depth and along strike, the author believes that RN-1 requires further work. The RN-4 area is underlain by volcanic and sub-volcanic rocks of the Rio Novo Group and sandstones, siltstones and banded iron formations of the Rio Fresco Group. These sequences are intruded by the unaltered medium to coarse-grained biotite-(hornblende)-bearing Cigano Granite. Mineralization is hosted by a strongly foliated rock with clasts of volcanic and clastic sedimentary rocks in a biotite-, anthophyllite-, cordierite-, andalusite- and garnet-rich matrix. Sulphide mineralization (dominantly chalcopyrite) occurs disseminated through the matrix, as veinlets cutting the schist, and locally confined to sulphide-rich veins that appear as “clasts” within the schist. Structural measurements confirm a northeast strike to the dominant foliation. The Cigano Granite is not foliated, but contains clasts of schistose country-rock, indicating emplacement post fabric development. Apophyses of the granite intersected in DH-09 cut mineralized schist, and although the granite locally contains minor molybdenite its emplacement appears to post-date mineralization and fabric development.

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Initially Teck interpreted the unusual biotite-, cordierite-, anthophyllite-, garnet- and chalcopyrite-rich mineral assemblage as an alteration assemblage indicative of a volcanogenic massive sulphide (“VMS”) environment based on the presence of abundant anthophyllite and retrograded cordierite producing “dalmationite” texture, which is typical of many VMS deposits in the Abitibi region of Canada. A lack of lead and zinc, an absence of felsic volcanic units, and the presence of potassic alteration in the form of biotite do not support a VMS model for RN-4. The anomalous biotite content indicates a K-rich rock and as such the biotite-, cordierite-, anthophyllite-, garnet-rich assemblage more likely reflects a chlorite ± muscovite-(biotite?) - rich precursor. Potassium alteration has been shown to form a discrete halo around some significant IOCG deposits (e.g. Ernest Henry; Manto Verde), but is not a definitive vector towards IOCG mineralization. However, the possibility of significant chlorite-muscovite alteration at RN-4 is considered by the author to be highly significant, as this may represent alteration from acidic fluids generated as a product of iron-oxide ± sulphide precipitation laterally and/or at depth. The lateral and down-dip extents of the fossil hydrothermal system at RN-4 have not been thoroughly drill tested, and additional drilling is required. Alteration and mineralization relationships suggest that clastic rocks at RN-4 formed by hydrothermal brecciation. It appears that mineralization and alteration occurred before, during and after the brecciation event. Mapped distribution of the clastic unit and associated alteration along with the size of the soil and chargeability anomalies indicate this was a large hydrothermal system that may have deposited significant copper. There is a strong VTEM anomaly which is interpreted to be at a depth of about 400 to 600 metres, beneath hole 10 which intersected 11.2 m @ 0.43% copper.

Five holes were drilled by Teck at target RN-5. Mineralization intersected in drilling (DH-19: 45.00 m @ 0.41% Cu, 30.50 m @ 0.49% Cu, 20.00 m @ 0.73% Cu, 11.00 m @ 0.47% Cu, DH-20: 15.40 m @ 0.62% Cu, 10.00 m @ 0.51% Cu, DH-26 with 8.0 m @ 0.27% Cu, DH-28 48.8 m @ 0.40% Cu, and DH-27, which undercut DH-28, 183 m @ 0.53% Cu) comprises stockwork to crackle breccia quartz-calcite-actinolite-chlorite-chalcopyrite ± pyrite veins and veinlets with albite ± magnetite alteration halos (Figure 10).

Figure 10: Varying Styles of Sulphide Mineralization, Alteration and Brecciation Intersected at RN-5

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Magnetite and lesser hematite are locally present in mineralized quartz-calcite-chalcopyrite-actinolite veins. Coarse-grained infill calcite is locally very abundant (particularly in DH-28 where it is up to 40 m thick), reflecting the highly dilatant nature of the mineral-hosting structure. Borehole 27, with 183 m @ 0.53% Cu, collared in sulphide stockworks, suggesting the mineralized systems extends further to the south. The associated soil geochemical anomaly does not extend southwards, but this is due to the presence of a swamp, so the appropriate soil profile is not present to sample. The author considers RN-5 to be a high priority target requiring additional work to understand the geometry of the brecciation and alteration, as it is possible that it is a plunging pipe-like body, with an untested VTEM anomaly potentially representing massive mineralization at depth down-plunge. At RN-7, Teck drilled two holes, 800 metres apart, to test a copper in soil anomaly, which is flanked to the south by banded iron formation (“BIF”). At surface the BIF is largely hematitic, recrystallised and locally cut by hydrothermal magnetite-hematite veins. Borehole RN-29 intersected 102 m @ 0.66% Cu while hole RN-30 intersected 69 m @ 0.4% copper. In the drill core, veinlets and stringers of chalcopyrite occur randomly throughout the iron formation (Figure 11). Values up to 3.1% copper (DH-29) and 2.4% copper (DH-30) were intersected.

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Figure 11: Chalcopyrite Veinlets in BIF, RN-7

Hole 29 intersected a high-grade massive-chalcocite zone (5 m @ 9.5% Cu) with minor native copper within mafic volcanic rocks; near the contact with iron formation to the south. The chalcocite is interpreted to be hydrothermal in origin and probably replacing a massive chalcopyrite vein. Down-section, volcanic-rocks host hypogene actinolite-quartz-calcite-chalcopyrite veins. DH-30 intersected several styles of hypogene mineralization including coarse-grained intergrown hydrothermal magnetite and amphibole, magnetite-chalcopyrite veins, breccias with magnetite-actinolite-biotite-(chalcopyrite) infill and albite-altered clasts, and locally cherty sedimentary rocks with layer parallel and discordant chalcopyrite stringers. The subsequent VTEM survey identified a 1.8 km long conductor south of the two northward drilled boreholes hence the VTEM conductor was not tested by Teck. Alteration clearly increases in intensity to the south (up-hole) i.e. towards the conductor located immediately south of the hole. RN-11 was identified as a prospective target by Teck based on the presence of a strong, large copper in soil geochemical anomaly and the presence of mineralized float (Figure 12) and an outcrop of intensely albite-actinolite alteration (Figure 13). Teck did not get an opportunity to drill this target.

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Figure 12: High-grade Gossan at RN-11

Figure 13: Coarse Actinolite-Albite Alteration at RN-11

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10.2. EXPLORATION BY INV METALS

This section describes the exploration activities completed by INV Metals since entering into the agreement with Teck in late October 2009 to the date of this report.

10.2.1 SOIL GEOCHEMICAL SURVEYS

Teck had completed soil sampling, typically at 50 metre sample spacing but occasionally at 100 metre spacing, along lines 400 metres apart, except for the eastern portion of Rio Novo North where the lines were 800 metres apart, and in an area south of RN-4 at RN-2 and RN-3, where the lines were 200 metres apart. In order to better define a number of soil geochemical anomalies, INV Metals’ established a total of 49.5 kilometres of infill lines 200 metres apart and sampled them at 50 metre spacing, particularly at targets RN-11 and RN-5. Figure 14 shows the location of the in-fill lines as the shorter lines spaced 200 metres between Teck’s longer lines. The in-fill grid lines were established by a combination of INV Metals employees and Geotop Serviços Topográficos Ltda. under contract to INV Metals.

Figure 14: INV Metals In-fill Gridding

INV Metal’s personnel collected soil samples of the B horizon, which were then analyzed for gold and a multi-element ICP package. At Rio Novo North samples were also analyzed for platinum and palladium. A total of 1,029 soil samples has been collected by INV Metals personnel. Figure 15 shows the integration of Teck and INV Metals’ soil geochemical results for copper in the southern part of the property, where the IOCG targets are all located.

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Figure 15: INV Metals In-fill Copper in Soil Geochemical Survey

At RN-11, the in-fill soil sampling program extended the potential strike length of the copper anomaly to more than two kilometres, discontinuously, with values ranging from 300 ppm copper to a high of 1,644 ppm copper. The peak copper in soil value of 1,644 ppm was collected approximately 100 metres east of a gossanous rock which graded 27.6 % copper, 4.6 grams per tonne gold, and 73.1 gram per tonne silver. Extensive in-fill soil sampling was completed at RN-5 north of Teck’s previous drilling, centred over a ~ 800 m by 650 m magnetic anomaly with a coincident copper in soil anomaly and a very strong lanthanum anomaly, based on a 20 ppm contour and peaking at 1,940 ppm. The in-fill sampling expanded and better defined a cluster of strong copper in soil anomalies in this area. At Rio Novo North, Teck previously selected 340 soil samples with anomalous gold values for platinum and palladium analysis. This identified a number of anomalies, with best values of 36 ppb palladium and 15 ppb platinum. Given the background value is essentially zero, these anomalies are considered significant and as a result INV Metals initiated a program of in-fill sampling around these anomalies. Figures 16 to 18 show the results for gold, palladium, platinum.

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Figure 16: INV Metals In-fill Gold in Soil Geochemical Survey, Rio Novo North

Figure 17: INV Metals In-fill Palladium in Soil Geochemical Survey, Rio Novo North

Figure 18: INV Metals In-fill Platinum in Soil Geochemical Survey, Rio Novo North

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The strongest, most significant anomaly outlined to date is at the eastern end of the property, approximately 3 kilometres northwest of Serra Pelada (Figure 19). The strongest portion of the anomaly is approximately 800 metres long and 340 metres wide, with gold values ranging from 5 to 290 ppb, palladium from 5 to 170 ppb, and platinum from 2.5 ppb to 40 ppb. The anomaly trends northeast-southwest, roughly aligned with a regional magnetic trend, and appears to be associated with ultramafic and metasedimentary rocks. There is a strong VTEM conductor flanking the anomaly on the north side.

Figure 19: INV Metals In-fill Palladium in Soil Geochemical Survey, Detail, Eastern Rio Novo North

10.2.2 GEOLOGICAL SURVEY

The in-fill lines have been mapped at various scales depending on the priority of the area and the data incorporated into the project database. Geological mapping is hindered by lack of exposure and heavy tropical weathering.

10.2.3 GEOPHYSICAL SURVEYS

Fugro Geomag S.A., based at Parauapebas, was contracted to carry out a pole-dipole induced polarization (“IP”) survey at target RN-11. The survey utilized a =75 and covered 12 lines totaling 13.7 line kilometres. Reconsult Geofísica, based at Rua Dr. Guilherme Bannitz, 126/92,

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São Paulo, SP, Brazil, was contracted to interpret the data. A moderate chargeability anomaly was located partially coincidental with the copper in soil anomaly.

At RN-7, two one kilometre lines were surveyed, spaced 400 metres apart using the same specifications. No significant anomalies were detected.

In addition, IP was planned for the RN-5 target area, but the survey was abandoned after two lines each 2.1 kilometres long as it appeared that the current was not penetrating the overburden.

Consultant Jules Lajoie of Vancouver, B.C. was contracted to review the entire dataset from a VTEM airborne electromagnetic survey previously flown by Teck, and Reconsult Geofísica reviewed selected portions. These reinterpretations culminated in the identification of an aggregate of approximately 550 conductor picks. Picking of conductors can be subjective, but this does not impact on the reliability of the data.

10.2.4 OTHER TARGETS

As noted earlier there are two other secondary target types that offer high-potential exploration targets in addition to the copper potential.

The first is the potential for a strike extension of the Serra Pelada high-grade gold-platinum-palladium deposit (see Sections 8.4 and 10.2.1). Although there are no such mineral occurrences known on the Rio Novo claims, the proximity to Serra Pelada, and the presence of a number of polymetallic precious metal soil geochemical anomalies (see Section 10.2.1) provides a conceptual target.

The second high-potential target type on the property is iron ore (see Section 8.5). There are at least three separate iron ore targets present on the property, including the iron formation at RN-7 as previously discussed in Section 10.1 (Figure 20). At Rio Novo North massive hematite boulders up to 8 metres in size were located by Teck with grab values up to 95.3% Fe2O3. Teck drilled 24 auger holes in 2008 in order to test this horizon. A discontinuous zone of massive hematite veins, breccias and lenses approximately 50 to 100 m wide and 1,200 m long was identified, with a best intersection of 79.2% Fe2O3 over 11 metres.

Figure 20: Outcropping Iron Formation at RN-7

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11. DIAMOND DRILLING

11.1. PREVIOUS DRILLING BY TECK

Previous drilling by Teck intersected a number of zones having the characteristics of large IOCG deposits typical of the Carajás camp (see Section 10.1 for details). Teck completed 30 diamond drill holes totalling 7,239 metres, with 13 holes at target RN-1, 3 at RN-2, 2 at RN-3, 3 at RN-4, 5 at RN-5, 2 at RN-6 and 2 at RN-7. Intervals ranged from blank to the best at each target indicated in the table below. There has been insufficient drilling to determine how the drill intervals relate to true widths of the mineralized zones.

Table 3: Significant Drill Results

Hole ID Target Depth Year Best Intersection including PRN-DD-13 RN-1 217.40 2006 55.00 m @ 1.28% Cu 30.00 m @ 2.04% Cu, 0.32 g/t Au PRN-DD-11 RN-2 200.20 2006 12.43 m @ 0.34% Cu PRN-DD-07 RN-3 180.05 2004 14.50 m @ 0.16% Cu PRN-DD-09 RN-4 251.05 2005 58.00 m @ 0.38% Cu PRN-DD-27 RN-5 274.20 2007 182.98 m @ 0.53% Cu 15.98 m @ 1.25% Cu and 27.00 m @ 1.01% Cu PRN-DD-25 RN-6 315.90 2007 1.00 m @ 0.68% Cu PRN-DD-29 RN-7 285.80 2007 101.70 m @ 0.66 % Cu 39.70 m @ 1.5 % Cu and 5.00 m @ 9.5 % Cu TOTAL 30 holes 7,239.05

11.2. INV METALS DIAMOND DRILLING

INV Metals has completed diamond drilling of 21 holes totaling 5,571.9 metres, carried out under contract by Geoserv Pesquisas Geologicas S.A. (Boart Longyear) of Parauapebas, Brazil, with 4 holes at RN-7, 9 at RN-11, and 8 at RN-5. Drilling was initiated in November 2009, ended before Christmas, resumed in May 2010 following the end of the rainy season, and is still ongoing. Drill holes were collared with HQ through the weathering profile and then reduced to NQ for all holes. Four holes (31 to 34) were drilled at RN-7 to test a strong VTEM conductor located immediately south of Teck’s northward oriented drill holes, as well as two copper in soil geochemical anomalies (Figure 21). The VTEM conductor was explained by the presence of brecciated to massive hydrothermal magnetite, which is the classic host rock for copper mineralization in IOCG deposits. Although no significant grades of copper mineralization were intersected, disseminated to patchy chalcopyrite occurs throughout all of the boreholes, along with intense chlorite-albite-garnet-actinolite-hydrothermal magnetite alteration characteristic of large IOCG systems (see Figure 22). In hole RND-34, a thick oxidized interval contained several patches of native copper. The drilling to-date at target RN-7 indicates an intense alteration system within typical IOCG deposit host rocks with pervasive anomalous copper mineralization over a strike length of at least 2.4 kilometres. To date there has been insufficient drilling to understand the geometry of the mineralized zones and therefore the relationship between core lengths of mineralized intercepts reported in Table 4 and the true width of the intersections is not known at this time.

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Figure 21: Location of INV Metals Drilling at Target RN-7

Table 4: Significant Drill Results at RN-7

Hole From (m) To (m) Interval (m) Cu% RN-31 177 178 1 0.7 RN-32 371.9 378 6.1 0.4 RN-33 192 193 1 0.82 RN-34 24.4 67 42.6 0.24 including 63.6 67 3.4 1.48 which includes 64.6 65.3 0.7 5.45

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Figure 22: Hydrothermal Magnetite and Chalcopyrite in Hole 32 at RN-7

Nine holes were drilled to test the RN-11 target (holes 35 – 43), comprised of a > two kilometre long by 400 to 500 metre wide copper in soil geochemical anomaly (Figure 23), roughly coincidental with gold and cobalt soil geochemical anomalies, as well as a magnetic anomaly, and partially coincidental with a moderate IP geophysical anomaly. Copper intersections greater than 0.2% copper, or the best interval per drill hole, are listed in Table 4.The mineralization occurs as veins, disseminations and discrete patches of chalcopyrite within strongly altered host rocks comprised of garnet-chlorite-biotite-magnetite-grunerite schists, interpreted to be originally metasediments, in contact with a very siliceous quartzite, which also contains disseminations and stringers of chalcopyrite, pyrite and locally arsenopyrite. It would appear that for the most part the IP anomaly was due to the presence of pyrite and chalcopyrite within the siliceous quartzite unit. Although the drill holes intersected the host rocks roughly perpendicular to their dip, there has been insufficient drilling to assume that the mineralized intervals are approximately true width.

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Table 5: Significant Drill Results at RN-11

Hole From (m) To (m) Interval (m) Cu (%) 35 0.0 19.0 19.0 0.13 36 18.2 46.5 28.4 0.27 37 27.7 44.8 17.1 0.20 37 53.7 55.8 2.1 0.92 37 55.8 71.9 16.1 0.24 37 112.5 120.4 7.9 0.51 37 115.9 118.2 2.3 1.06 38 67.0 94.0 27.0 0.12 38 102.0 118.8 16.8 0.16 39 0.0 29.5 29.5 0.19

including 3.6 17.1 13.5 0.32 39 28.2 28.8 0.6 0.72 39 79.7 80.8 1.1 0.89 39 187.1 188.6 1.5 0.92

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Hole From (m) To (m) Interval (m) Cu (%) 40 115.0 120.0 5.0 0.39 40 119.0 120.0 1.0 1.12 40 174.2 208.9 34.7 0.19

including 175.0 176.0 1.0 0.89 41 159.7 178.0 18.3 0.16 42 41.1 95.0 53.9 0.10 43 111.2 144.0 32.8 0.10

Eight holes (44 – 51) were drilled to test a number of targets in the RN-5 area, including a variety of copper in soil geochemical anomalies, and to undercut Teck’s hole 27, which intersected 183 metres at 0.53% copper (Figure 24). To-date analyses for four holes have been received, the results of which are provided in Table 5. Holes 44 and 45 were targeted to crosscut a unit interpreted to be responsible for copper, gold and lanthanum soil anomalies. Patches and veins of chalcopyrite were intersected within a strongly hydrothermally altered iron formation. There has been insufficient drilling to determine the true width of the intervals reported.


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Table 6: Available Drill Results at RN-5

Hole From (m) To (m) Interval (m) Cu (%)

PRN-DD-44 66.3 110.7 44.4 0.27

including 66.3 67.0 0.7 1.55

and 78.0 110.7 32.7 0.39

and 89.0 98.0 9.0 0.37

including 96.0 97.0 1.0 1.30

and 108.0 110.7 2.7 2.42

PRN-DD-45 0.0 61.7 61.7 0.20

including 42.0 53.0 11.0 0.59

and 42.0 47.1 5.1 1.10

PRN-DD-46 84.0 107.0 23.0 0.15

including 99.0 107.0 8.0 0.27

and 106.0 107.0 1.0 0.70

PRN-DD-47 124.0 125.0 1.0 0.70

201.0 203.0 2.0 0.40

11.3. AUGER DRILLING BY INV METALS

INV Metals has utilized a manned-portable auger drill, capable of drilling to depths of 20+ metres, depending on the nature of the weathering profile. The auger drill was operated by INV personnel. Five auger holes were drilled at RN-11 (see Figure 23), while a 40 hole program is ongoing as of the date of this report at Rio Novo North, in order to test a number of gold-palladium-platinum soil geochemical anomalies. Pending the results of the auger drilling, a follow up diamond drilling program will be initiated in 2011. To date no results are available from this auger drilling.

Figure 25 shows the status of the auger drill program at Rio Novo North as of the date of this report.

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Figure 25: Status of INV Metals Auger Drilling at Rio Novo North

12. SAMPLING METHOD AND APPROACH

12.1. SOIL GEOCHEMICAL SAMPLING

The Teck soil sampling survey blanketed the entire property, except for those sections underlain by large intrusions such as the Cigano and Estrela granites. Sampling was typically conducted on lines 400 metres apart, with samples collected at 50 metres stations, though at the eastern end of the Rio Novo North claim the lines were 800 metres apart and sampling stations 100 metres along the lines. As a result, a number of areas were considered by INV Metals to be inadequately surveyed, with anomalies left open along strike or lacking sufficient sampling intensity to be properly defined prior to drilling. Therefore, in 2010 INV Metals established 49.5 kilometres of in-fill lines see Section 10.2.1) and collected a total of 1,029 soil samples as of the date of this report. Soil sampling was conducted by INV Metals personnel using a shovel to remove the organics and sample the B horizon at a depth of 15 to 20 centimetres. Samples were collected at 50 metre intervals along the newly established lines. After removal of the surficial organic matter, the sample bag in general weighted 2.0 kilograms. Samples were collected at 50 m stations, alternating to 100 m stations on adjoining lines. No sample preparation was done by INV Metals personnel.

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12.2. DIAMOND DRILL AND AUGER CORE SAMPLING

Core samples to be analyzed are identified during the core logging process. After sawing the core in half, samples are collected representing at least a 0.5 meter length and a maximum of 2.0 meters of half core. Intervals that visually appear to be of higher grade are isolated as shorter length discrete samples, and sampling does not cross lithological contacts. In homogeneous rock or mineralized units sample lengths are routinely one metre. Core recovery is typically excellent and in the author's opinion there are no material factors that impact on the accuracy and reliability of the results. Diamond drill results for Teck are tabled in Section 11.1 and for INV Metals in Section 11.2. There has been insufficient drilling carried out to allow an interpretation of true width relative to core intervals.

13. SAMPLE PREPARATION, ANALYSES AND SECURITY

Following the halving of drill/auger core utilizing a core saw, the samples are collected in a clean, unused, transparent plastic bag, which is assigned a unique sample number and a pre-printed paper sample ticket protected in plastic, placed inside. The downhole depth of each sample is hand written in a specific file and also in a spreadsheet tracking every hole. INV Metals' employees are responsible for sampling and the insertion of blanks and certified standards every 20 samples. Once samples are cut and bagged they are sealed and the appropriate laboratory sample preparation and analysis requisitions are prepared. Samples from holes 31 to 39 were transported to SGS Geosol Laboratórios Ltda.'s preparation laboratory located in Parauapebas, Brazil at 50 B Street, Cidade Nova, for sample preparation. Preparation of the samples consisted of drying, crushing to 2 mm and pulverizing 300 gm using a carbon steel mill until 95% of the sample passes -150 mesh. The pulverized sample was then split to 50 grams. The 50 gram pulverized samples were packaged in sealed, labelled plastic bags with a pre-printed sample ticket showing the unique sample number placed in the bag. Samples were then transported by SGS Laboratory personnel to SGS GEOSOL Laboratórios Ltda.'s analytical laboratory located in Rodovia MG 010, Km 24, 5, Bairro Angicos, Vespasiano, Minas Gerais, Brazil, where duplicates, replicates, blanks and certified standards were inserted by laboratory employees, in addition to the INV Metals blanks and standards, to monitor contamination and accuracy of the analyses. After a four acid "near total" digestion, samples were analyzed for 36 elements using ICP-OES, and gold by fire assay atomic absorption (50g fusion). Over limit samples containing >10,000 ppm copper were then subjected to a four acid "near total" digestion followed by atomic absorption analysis. A review of the results of quality control standard sample analyses in drill holes DD-0031 through DD-0039 showed that in many cases copper values range from 7% to > 17% below the mean value of the standard reference sample. Analysis of samples adjacent to standards returning low copper values may be similarly affected. However, the magnitude of the assay results is such that this would not materially affect the intersections reported and INV's Qualified Person, Mr. Scott Jennings, advised that the assay results were acceptable for disclosure. The samples are representative of the mineralization.

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Samples from holes 40 to 45 were transported in raffia bags sealed with lock ties by Helios Coletivos e Cargas Ltda freight company (Rua Alceu Veronezi s/n, Box 7, Estação Rodoviária, Redenção, Pará) to Acme Analítica Laboratories Ltda preparation laboratory located in Aparecida de Goiânia, Brazil at Av. Nossa Senhora de Lourdes, Qd.46 Lt. 01 to 06 - Vila Santa, for sample preparation. Photographs were taken of the sealed bags before shipping and upon arrival at Acme's laboratory to prove that no shipments had been compromised. Preparation of the samples consisted of drying, crushing to 2 mm and pulverizing 300 gm using a carbon steel mill until 95% of the sample passes -150 mesh. The pulverized sample was then split to 50 grams. The 50 gram pulverized samples were packaged in sealed, labelled plastic bags with a pre-printed sample ticket showing the unique sample number placed in the bag. Samples were then transported by Acme Analítica Laboratories personnel to Acme Analytical Laboratories (Vancouver) Ltd.'s analytical laboratory located in 1020 Cordova St. East, Vancouver, BC, Canada, or Acme Analytical Laboratories S.A.'s analytical laboratory located in Av. Claudio Arrau 7152, Pudahuel, Santiago, Chile, depending on the analytical method to be applied. Acme is certified as ISO 9001:2008 and both the Vancouver and Santiago labs are working towards ISO 17025:2005 accreditation, expected within the next year. Once in the analytical lab, sample batches have duplicates, replicates, blanks and certified standards inserted by laboratory employees, in addition to the INV Metals blanks and standards, to monitor contamination and accuracy of the analyses. After a four acid "near total" digestion, samples were analyzed for 36 elements using ICP-OES, and gold by fire assay atomic absorption (30g fusion). Over limit samples containing >10,000 ppm copper were then subjected to a four acid "near total" digestion followed by ICP-ES analysis. Due to the persistent bias to the low side for copper values in holes 31 to 39, INV Metals has retrieved the sample pulps from those holes and is having them reanalyzed by Acme. None of the re-analyses are available as of the date of this report, however, it is anticipated that the copper values will increase to varying degrees. INV Metals’ soil samples followed the same routine, including switching to Acme as of July, 2010. In August 2010 consulting firm Scott Wilson Roscoe Postle Associates Inc. (“Scott Wilson RPA”) of Toronto was contracted to carry out a review of INV Metals' quality assurance - quality control program and procedures, and has advised that the procedures in place meet or exceed industry standards. The author is satisfied that INV Metals has adequate sample preparation, security and analytical procedures in place.

14. DATA VERIFICATION

INV Metals has conducted independent sampling of the property both via soil geochemical surveys and diamond and auger drilling over extensive areas. No independent analyses of Teck’s drill core was taken as the work was considered by the author to have been carried out following industry standard procedures. INV Metals’ geologists on site carry out rigorous reviews of the data, producing a variety of plots in order to recognize any issues with reproducibility or accuracy of results obtained from the commercial laboratories. This work involves a careful evaluation of the analyses of INV Metal’s

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reference samples, duplicates and blanks. The QA-QC spreadsheets, along with original data, is then thoroughly reviewed and verified by INV Metal’s Qualified Person, Mr. Scott Jennings. INV Metals uses industry standard procedures to detect potential analytical problems. If the laboratory results for an INV Metals reference standard are plus or minus three standard deviations of the mean value of the certified value, or, if consecutive reference standard values are equal to plus or minus two standard deviations of the mean value, then the samples associated with that standard are requested to be re-analyzed by the laboratory.

Scott Wilson RPA commented that “clearly, the INV Metals QA/QC data analysis is rigorous and effective” in that it detected a persistent problem with the reproducibility of the internal reference standards.

15. ADJACENT PROPERTIES

East of the property, Canadian junior explorer Colossus Minerals Inc. holds the 100 hectare Exploration License 1485 (DNPM process 850.425/90) in partnership with COOMIGASP, a registered Brazilian cooperative company. This license is centered on the 400 m x 300 m x 100 m Serra Pelada pit, which produced an estimated two million ounces of gold along with unknown quantities of platinum and palladium during the 1980’s by up to 80,000 garimpeiros (see Section 8.4). Production ended in the late 1980’s following a pit wall collapse and flooding. Vale owns the claim situated between Rio Novo North and South. South of the property, Australian junior explorer Avanco Resources Limited holds an option to earn a 100% interest in the 10,000 ha Serra Verde Property from Barrick Gold Corporation, subject to Barrick having the right to “back-in” to a 51% interest (Avanco Resources Limited website, http://www.avancoresources.com/CarajasCopperProject.html). This property covers the Serra Verde prospect as described in Section 8.3. The qualified person has not been able to verify the information and the information is not necessarily indicative of the mineralization on the property.

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Figure 26: Adjacent Properties

16. MINERAL PROCESSING AND METALLURGICAL TESTING

No mineral processing or metallurgical testing has been conducted on the property.

17. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

No resource or reserve estimates have been reported from the property.

18. OTHER RELEVANT DATA AND INFORMATION

No other relevant data and information is available.

19. INTERPRETATION AND CONCLUSIONS

The Rio Novo property is strategically located within one of the world’s most prolific mining camps. Work to date has identified numerous zones of hydrothermal alteration and brecciation and a number of surface and drill intersected copper sulphide zones characteristic of IOCG deposits. In particular targets RN-7, RN-11, RN-1, RN-4, RN-5 and possibly RN-8 all appear to have the geological setting, alteration, and mineralization typical of IOCG deposits. The presence of copper mineralization straddling the contact between altered volcanics and banded iron formation containing massive zones of hydrothermal magnetite at RN-7 is highly

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encouraging, and warrants more work to explore along the contacts where there are untested soil anomalies and VTEM conductors. At RN-5, copper mineralization drilled by Teck may occur within a westerly plunging pipe, with an untested VTEM conductor possibly representing more massive mineralization down plunge. To the north of this original RN-5 occurrence, the presence of copper mineralization with a strong lanthanum anomaly associated with iron formation also is encouraging. RN-11 and RN-4 both have alteration and mineralization styles similar to the giant Salobo deposit and nearby Furnas deposit. An interpretation of INV Metals’ drilling of RN-11 suggests that mineralization may be associated with a fault contact between quartzites and the grunerite-magnetite-garnet host rock. This new interpretation needs to be tested by further drilling. INV Metals has not done any work to advance RN-4 yet, and there remains an untested VTEM conductor at depth. An airborne VTEM survey identified a number of conductors, subsequent to the drill program, and as a result of the timing, many of these targets remain untested or only partially tested. On the Rio Novo North claim, a number of gold-palladium-platinum anomalies are considered highly encouraging and could represent analogues to the Serra Pelada deposit, located just two kilometres east of the eastern boundary of Rio Novo North. Serra Pelada produced approximately two million ounces of gold and unknown platinum and palladium from a pit 300 meters wide. The recent discovery of a large, strong soil anomaly just three kilometres northwest of Serra Pelada provides an immediate high-priority drill target. In addition, three potentially high-grade ironstone bodies remain unexplored by INV Metals and could potentially provide material amenable to direct shipping to steel mills in Marabá, located 190 kilometres by highway east of the project. The author considers the potential to make an economic discovery on the property is high, as it is rare to have multiple, high-potential targets of several commodities on one property. In particular, the copper potential at RN-1, RN-4, RN-7, and RN-11 remains high and the gold-platinum-palladium anomalies at Rio Novo North represent high-priority drill targets.

20. RECOMMENDATIONS

The first year program met its objective of demonstrating the presence of large, intense hydrothermal alteration zones and mineralizing systems characteristic of IOCG deposits, and in addition, has identified high-priority gold-palladium-platinum soil anomalies that could represent Serra Pelada analogues. Where the soil data density is considered inadequate, the second year program will include additional in-fill soil sampling surveys. The proposed budget for the second year program (October 28, 2010 to October 28, 2011) is estimated at $3 million as outlined in Table 7. This includes 31 diamond drill holes totalling 9,500 metres.

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Table 7: Proposed Budget for Year 2

CDN$ Soil and stream sampling, IP $ 25,000 Drilling and analyses $2,825,000 Property maintenance $ 50,000

TOTAL $3,000,000

It is recommended that this work be targeted as follows:

1. Rio Novo North – drilling of a minimum of five boreholes totaling 1,000 metres at the strong soil anomaly shown in Figure 19.

2. Rio Novo North – drilling of an estimated five boreholes totaling 1,000 metres to test other soil geochemical anomalies and pending auger results. Additional drilling may be required pending the auger results and drill results from this first phase of diamond drilling.

3. RN-7 – initially in-fill soil sampling and mapping will be completed over a discrete area. This will be followed by an initial four hole diamond drill program totaling 1,200 metres.

4. RN-8 – initially in-fill soil sampling and mapping will be completed over a discrete area followed by an initial three hole diamond drill program totalling 1,400 metres.

5. RN-4 – in-fill soil sampling, a ground mag survey, detailed mapping and compilation, and drilling of four holes totaling 1,700 metres.

6. RN-9 – a new east-west oriented grid will be established totaling about 18 line kilometres, mapped, surveyed with ground magnetometer and soil sampled at a cost of about $25,000. This is in order to test a number of copper targets that may be aligned north-south along the two flanks of a north-trending iron formation, and therefore would have been missed in the previous north-south oriented geochemical survey. Pending the results, it is estimated that four holes totaling 1,200 metres would be drilled.

7. RN-5 – the original target area drilled by Teck will be gridded and covered with magnetometer and IP surveys, followed by drilling of an initial two holes, totaling 800 metres to test the latest interpretation of a north westerly plunging shoot.

8. RN-1 – two holes totaling 600 metres will be drilled to test VTEM conductors in the vicinity of Teck’s best intersections.

9. RN-11 – two holes totaling 600 metres to test a reinterpretation of the structures controlling mineralization.

Additional drilling will be results based, contingent on drill results from this recommended program.

21. REFERENCES

Avanco Resources Limited website http://www.avancoresources.com/CarajasCopperProject.html

http://www.avancoresources.com/CarajasCopperProject.html�

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Colossus Minerals Inc, October 6, 2010 Press Release Figueiredo E Silva, R.C. et al, 2008. A Hydrothermal Origin of the Jaspilite-Hosted, Giant Serra Norte Iron Ore Deposits in the Carajás Mineral Province, Para State, Brazil, in SEG Reviews vol. 15, Banded Iron Formation-Related High-Grade Iron Ore, pp 255-290 GMP Mining, 2009. Junior Gold, June 4, 2009 Grainger, C.J, Groves, D. I, Tallarico, F.H. B, Fletcher, I.R., 2008. Metallogenesis of the Carajás Mineral Province, Southern Amazon Craton, Brazil: Varying styles of Archean through Paleoproterozoic to Neoproterozoic base- and precious-metal mineralization. Ore Geology Reviews 33, pp 451-489 Haynes, D.W., 2000. Iron Oxide-Cu-Au Deposits: Their Position in the Ore Deposit Spectrum and Modes of Origin, in Porter, T. M. (Ed.). Hydrothermal Iron Oxide Copper-Gold & Related Deposits: A Global Perspective, Australian Mineral Foundation, Adelaide, pp 71-90 Hitzman, M. W., 2000. Iron oxide-Cu-Au Deposits: What, Where, When and Why, in Porter, T. M. (Ed.). Hydrothermal Iron Oxide Copper-Gold & Related Deposits: A Global Perspective, Australian Mineral Foundation, Adelaide, pp 9-25 Scott Wilson Roscoe Postle Associates Inc., September 15, 2010: Desktop Review of QA/QC Procedures at the Kaoko, Namibia and Rio Novo, Brazil Exploration Projects Teck Cominco Limited, 2006. Carajás Exploration Recommendations, internal report by A. Bisneto and L. Marshall, April 3, 2006 Teck Cominco Limited, 2008. Field Visit Notes, Rio Novo Project, internal report by P. Johnston, June 10, 2006 Teck Cominco Limited, 2008. Rio Novo Project Review, internal report by L. Marshall, K. Heppe, A. Bisneto, A. Charles, and J. Vargas, January, 2008 Vale website, 2009. http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?sid=493 Villas, R.N., Santos, M.D., 2001. Gold deposits of the Carajás Mineral Province: deposit types and Metallogenesis. Mineralium Deposita 36, pp 300-331.

http://www.vale.com/vale_us/cgi/cgilua.exe/sys/start.htm?sid=493�

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22. DATE AND SIGNATURE PAGES

This report titled “Technical Report on Recent Exploration at the Rio Novo Copper-Iron-Gold-Platinum-Palladium Property in the Carajás District, Pará, Brazil” and dated October 27, 2010, was prepared by and signed by the following author:

SIGNED AND SEALED

Robert C. Bell, P.GEO

Chief Executive Officer, INV Metals Inc.

Dated at Goiania, Brazil

October 27, 2010

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23. CERTIFICATE

CERTIFICATE OF

Robert. C. Bell, Chief Executive Officer of INV Metals Inc.

to accompany the report entitled

Technical Report on Recent Exploration at the Rio Novo Copper-Iron-Gold-Platinum-Palladium Property in the Carajás District, Pará, Brazil, dated October 27, 2010

I, Robert C. Bell, residing at 2158 Grenville Drive, Oakville, Ontario, do hereby certify that:

1. I am a graduate of the University of Western Ontario, London, Ontario, with an Honours B.Sc. Geology 1980.

2. I am a registered Professional Geologist of the Province of Ontario (Membership No: 0239) and a Fellow of the Society of Economic Geologists.

3. I have been practicing my profession for a period of more than 30 years with specific involvement in mineral exploration for gold and base metal deposits.

4. I am a Qualified Person under National Instrument 43-101 of the Canadian Securities Administrators for this specific purpose of preparing this Technical Report on a copper-iron-gold-platinum-palladium property in Brazil.

5. I have visited the property multiple times, most recently from October 19 – October 23, 2010.

6. I am solely responsible for all Sections of the report. 7. I am not independent of INV Metals Inc. for the purposes of NI 43-101. 8. I have had no involvement in the Rio Novo property prior to INV Metals entering into its

agreement with Teck. 9. I have read NI 43-101 and Form 43-101F1 and have prepared the Technical Report in

compliance with NI 43-101 and Form 43-101F1 and in conformity with generally accepted Canadian mining industry practices.

10. As of the date of the Certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Signed and sealed this 27th day of October, 2010.

R. C. Bell, B.Sc., P.Geo Chief Executive Officer, INV Metals Inc.

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