Davidson Tisdale Project

VG Gold Corp. Davidson Tisdale Project Preliminary Economic Assessment October 2007 Prepared by: Mr. Ronald Moran P. Eng. Vetrin Mr. Kenneth Guy P. Geo. Consulting Geologist Mr. Rodney Doran P. Eng. Senior Mine Engineer BH Martin Mr. Peter Bevan P. Eng. Consulting Geologist

TABLE OF CONTENTS Section 1.0 SUMMARY... INTRODUCTION: PROPERTY DESCRIPTION AND LOCATION: LOCAL INFRASTRUCTURE AND RESOURCES: HISTORIC DRILLING: GEOLOGICAL SETTING: DEPOSIT TYPES: DATA VERIFICATION: MINERAL PROCESSING: MINERAL RESOURCE ESTIMATES: ECONOMIC ANALYSIS: RECOMMENDATIONS: Section 2.0 TERMS OF REFERENCE Section 3.0 RELIANCE ON OTHER EXPERTS Section 4.0 PROJECT BACKGROUND INFORMATION Section 5.0 GEOLOGICAL SETTING Section 6.0 EXPLORATION DRILLING Section 7.0 ASSAY QUALITY CONTROLS Section 8.0 MINERAL PROCESSING Section 9.0 MCF MINING RESOURCE ESTIMATE Section 10.0 PERMITTING, SOCIAL CONSULTATION & ENVIRONMENTAL COMPLIANCE Section 11.0 PROJECT BUDGET & ECONOMICS Section 12.0 CONCLUSIONS Section 13.0 RECOMMENDATIONS Section 14.0 REFERENCES Section 15.0 APPENDIX

List of Tables Table 1.1 Drilling Statistics Table 1.2 Mining Resource Summary Table 1.3 Cumulative Cash Flow Table 1.4 Sensitivity Graph Table 4.1 Mineral Rights in Whitney & Tisdale Township Table 4.2 Assays of Different Stockpiles Table 4.3 Geostat System s Resource Estimate at a cut off of 1.7 grams Table 4.4 Geostat System s Resource Estimate at a cut off of 3.43 grams Table 6.1 Drilling Statistics Table 6.2 VG Gold Corp. Drilling Table 9.1 Summary of Stope Block Tonnes & Grade Table 9.2 Detail Stope Block Calcs. Table 11.1 Mining Cost Summary Table 11.2 Cost Distribution Graph Table 11.3 2007 to 2010 Cash Flow Forecast

List of Figures Figure 1.1 Regional Location Map Figure 1.2 Mineral Rights/Project Location Figure 4.1 Regional Location Map Figure 9.1 3199 m Level Plan Figure 9.2 3192 m Level Plan Figure 9.3 3185 m Level Plan Figure 9.4 Section 100 S Figure 9.5 Section 87.5 S

1.0 SUMMARY Introduction: The VG Gold Corp. s earned-in portion of Davidson Tisdale property interests consist of six mining claims in the township of Whitney and Tisdale, in the City of Timmins, District of Cochrane, Ontario, totaling approximately 360 acres or 145 hectares. Additional claims comprising of an additional 790 acres falling under a back-in agreement between VG Gold and Laurion Mineral Exploration Inc. are referred to in this document, but play no role in this current economic evaluation. Past mine workings and exploration activity referred to in this document fall within the boundaries of mining claim 12753. VG Gold Corp. s interest is by virtue of the Second Amended and Restated Option Agreement ( SAROA ) of the 30 th of December, 2005, between VG Gold Corp. (then Vedron Gold Inc) and Laurion Mineral Exploration Inc (then Laurion Gold Inc). A predecessor of the SAROA was registered on title against the property as Instrument No 528985 on the 4 th of April, 2003. Under the SAROA, VG Gold can earn up to a 75% interest in the claims. As of the 1 st. of June 2007, VG Gold Corp. has earned a 66% interest in the property by its own expenditure calculations. VG Gold has verified, by means of a letter from Laurion, that VG Gold s interest was 58% as of the 31 st of December, 2006. More recent verifiable numbers were not available to the authors, whom nonetheless have no reason to doubt the accuracy of VG Gold s calculations, as they are consistent with the work performed on the property. VG Gold s percentage interest continues to increase with expenditures on the property. Over 74,000 metres of diamond drilling has been completed over an 85 year period with roughly 63,000 metres of this total having being drilled within the last 20 years. The NI 43-101 compliant mineral resource estimate was compiled by Ken Guy, P. Geo., an independent consulting geologist with over 25 years of exploration and property evaluation experience. The 43-101 report compares the results of three independent calculations from three credible sources with the most recent being produced by P & E Consultants of Brampton, Ontario. It is the data from the P & E Consultants block modeling that has been used to develop an underground mining resource tonnage for this economic study. The author has evaluated the Davidson Tisdale Project as an underground gold mine using bulk mining methods to extract the core of what is referred to as the Main Zone from the 3100 m elevation to the 3200 m elevation plus a remnant of the S Zone. The overall activities will consist of the following: 1.) surface plant construction - c/w engineering,geology and operations offices, mine dry, first aid room, mine rescue room, shop, generator and compressor structure, Horseshoe shaft rehab, backfill plant construction, settling ponds and ventilation fan housing 2.) dewatering and rehabilitation of the ramp to the 3150 m elevation 3.) deepening the ramp to the 3100 m elevation 4.) mining of 374,000 tonnes by MCF methods 5.) trucking and milling of the above tonnage to a local custom mill 1.1

The waste produced during this project will be used to supplement the need of stope backfill and it is the intention that no waste stockpile will be present at the completion of this project. Ore grade material will be trucked via highway haulage equipment to a local mill for processing under a custom milling agreement. The tailings will be stored in the custom mill s existing tailings pond and will be treated and monitored by the custom miller. VG Gold Corp. has also advanced the permitting process up to and including submission of an application for a C of A to discharge process water, and is in the final stage of fulfilling the requirements in order to submit a closure plan for approval. Public consultations have been held and three native groups have received letters along with formal sit down meetings detailing the project. Property Description & Location: The Davidson Tisdale property is located approximately 3 km along strike from three mines which have produced over 31 million ounces of gold. Since discovery in 1911 the property has been explored intermittently. Much of the drilling has concentrated on three areas and was aimed at grade definition in selected areas. The majority of the drilling has been concentrated around the historic underground workings to a depth of approximately 160 metres below surface. A few holes were drilled to greater depths and the deepest known hole intersected the mineralized zone at over 400 m depth. Several shafts have been sunk on the property with a decline driven for 1,081 m and to a vertical depth of approximately 150 m. Numerous historic, shallow depth vertical and an inclined shaft are also present on the property. Figure 1.1 Regional Location Map Timmins 1.2

Local Infrastructure and Resources: The Timmins area is well serviced by mine contracting and mine equipment suppliers. The Timmins area has the expertise and a knowledge base, required to mine safely using underground methods. Figure 1.2 illustrates the claim locations relative the village of Porcupine, Ontario and also illustrates the network of public and commercial roads surrounding the project. Figure 1.2 Mineral Rights/Project Location Project Location - Area of back - in right - Area covered by this PEA Porcupine, ON 1.3

Historic Drilling: Numerous drilling programs have been undertaken on the property since the initial work in 1911. Approximately 49,600 metres of drilling have been completed in over 300 surface holes previous to VG Gold s involvement. The following table shows the statistics on the surface and underground drilling as compiled from the reports available in the public domain. Table 1.1 Drilling Statistics Year Company # of Holes Metres 1911-1924 Davidson 13 4,070 1933-1945 Ventures 11 1,557 1981 Dome 11 1,118 1983-1984 Davidson 34 4,205 1984-88 Getty - surface 226 34,096.6 1985-88 underground 288 10,436.8 1985 Davidson-Tisdale 4 2237.1 1989 Midas Minerals 5 1,486.2 1995? Kirwan 17 399.3 1999-2002? Northcott???? TOTALS 609 59,606 VG Gold Corp. conducted surface drilling on the property during the period 2003 to 2006. A total of 56 holes, 12,138 metres were completed. Drilling was primarily focused on increasing the resource of the Main Zone, along strike and at depth. Previous exploration had been concentrated in the vicinity of the historic workings with little drilling below the 500 foot level of the mine. Typically, mines in the Timmins camp have great depth extent, commonly exceeding 2000 feet. Results from the VG Gold Corp. drilling were very favourable, indicating high-grade gold mineralization below and peripheral to the historic exploration and resources. Geological Setting: The area exhibits a complex structural pattern with at least three major periods of deformation being recognized. This tectonic activity has resulted in a series of doubly plunging, upright, isoclinal folds which are offset by major fault structures and related secondary faults. The following are the main characteristics of gold occurrence in the Timmins Camp: The dominant source of gold is within quartz vein lodes containing locally spectacular free gold 1.4

The quartz vein lode deposits are structurally controlled areas of dilatancy which permitted the development of vein zones. The majority of gold production in the Camp is hosted by rocks of the Tisdale Group. Some gold production is hosted in pyrite-bearing pyroclastics within the mafic volcanics of the Tisdale Group. Some production comes from quartz veins within the sediments of the Porcupine Group where they unconformably overlie productive portions of the Tisdale Group. The abundance of faults is one of the most prominent features of the Davidson Tisdale property. Three distinct fault sets have been identified from underground workings on the property (Watts, Griffis, and McOuat, 1988). The faults are moderate to strong shear zones up to two metres in thickness. All known mineralized blocks lie within or very close to these faults. The Main Fault strikes 060º and dips 50º to the north. There is a set of faults, which generally parallel the main fault, but dip at 60º to 75º to the north. The second set of faults strikes 025º and dips northwest at 60º to 65º. These have been noted between fourth and fifth levels, representing a dilatant zone between two 060º structures. They contain prominent short veins, locally with gold mineralization. The third set trends 080º, dipping 30º to the north. These are limited to the east end of the workings and contain large blow-outs of quartz with erratic gold grains. Deposit Type: Two types of quartz veins were identified on the property (Brooks, 1987): type 1 - continuous tabular veins striking generally east-west and dipping 15º to 55º to the north, and type 2 - discontinuous, irregular, sub vertical and steep north dipping to shallow south dipping lenses of quartz stringers and veins, striking 40º to 70º azimuth. Following the Phase 1 underground program Getty personnel commented on the nature of the mineralized zones: In the vicinity of the Main Shaft gold occurs in a quartz stringer zone associated with a strong shear and sericite-carbonate alteration halo. Though the quartz conforms to the shearing along strike, it cross cuts the shearing down dip. Locally the stringer zones are very irregular and contain very erratic gold values Individual veins dip steeply to 90º at the center of the system and locally flatten to 0º, suggesting a sigmoidal pattern. Interpretation of surface drilling had suggested a sheet-like vein system dipping about 45º NW. Underground, the gold mineralization was seen to be largely confined to a series of steeply dipping, en echelon quartz vein fracture systems occurring within the overall 45º dipping structure. 1.5

The geometry of the mineralized zones is as follows: Strike lengths of up to 40 m Widths of 2 to 4 m Dip lengths of about 12 m Upper and lower contacts plunging 20º and 70º to the west Dip is near vertical Mineralized zones are en echelon lining up within an envelope having a dip of 45º N and striking 060º Data Verification: Mr. Ken Guy P. Geo. managed the Getty Canadian Metals and Getty Exploration work conducted on the property in the period 1984 through 1987. During this time all exploration work and analysis were conducted according to the highest industry standards at that time. Including, but not limited to, approximately 10% of mineralized zones were re-assayed by outside laboratories. The more recent drill progamme completed by VG Gold was also supervised and managed by Mr. Ken Guy. P Geo. Sampling of the drill core was conducted on site at the Company's South Porcupine core facility, located on the Tisdale property, by trained personnel. Samples were transported to the Laboratoire Expert s preparation facilities in Rouyn, Quebec. Mineral Processing: At the time of this report, the author is not aware of any metallurgical testing data available on the Davidson Tisdale ore. The NI 43-101 report has comments on the results from the 44,000 tonne bulk sample that Getty Resources put through a custom mill during the late 1980 s. These comments are not technical in nature and refer only to the possible lack of quality control and low milling rates which suggest mechanical problems during process. That be said, the 1980 s milling campaign produced a recovered grade of 5.48 grams per tonne which is compatible with the forecast grade of 6.84 grams used in this study. The custom mill in question is located north east of the project and was constructed during the late 1980 s. Given the existence of coarse free gold, the state of this mills gravity circuit should be inspected and upgraded if necessary. Core samples of the ore zone should be sent for testing to establish a base line for entering the custom milling agreement. Mining Resource Estimate: Following the review of the data the author along with the assistance Mr. Peter Bevan, P. Eng. compiled a mining resource using the block model produced by P & E Consultants in their 2006 1.6

report. The geology data has numerous references to erratic coarse gold occurrences within a wide defined geologic structure. The author has taken the approach in this study, that in order to maximize the gold recovery at reasonable costs, a bulk mining method will have to be used. The use of Mechanized Cut and Fill (MCF) combined with alluvial fill is the mining method chosen for this project. The size and geometry of the mining blocks reflect the use of this extraction method. Detailed tonnes and grade calculations are compiled in tables 9.1 and 9.2 of Section 9. Table 1.2 Mining Resource Summary Diluted Tonnes and Grade Tonnes Grade (ounces/tonne) Contained Ounces 374,110 0.220 82,250 Economic Analysis: For the purpose of this evaluation, a 700 US$ gold price and at par exchange rate was used to establish a base price of $700 / oz. CDN for the revenue calculation. No inflation factor has been included in the production costs. The cost of capital and corporate taxation has not been factored into this evaluation. The financial structure of the agreement between VG Gold and Laurion has not been analyzed or incorporated into this study. Table 1.2 provides the LOM cumulative cash flow and NPV of the project. A detailed cost and revenue stream is contained in section 11, Table 11.2. The estimated recovered ounces for the project are 78,131 at a mill recovery of 95%. Capital recovery is less than 14 months in this scenario and the project generates a positive cash flow of $12.1 M. Capital costs are a combination of surface plant construction, underground dewatering and rehab plus deepening of the ramp by another 300 metres. The mining numbers where calculated using a mining contractor as the primary source of men and equipment. Underground equipment is charged out as a monthly fleet rental and no buy-out or residual value for this equipment has been applied to the project evaluation. Labour rates used reflect current market conditions and contain a mark-up fee. One of many historic uses of cut and fill mining has been where the ore body has erratic external boundaries, in both vertical and horizontal directions, mixed with random inclusions of waste rock within these boundaries. The Mechanized Cut and Fill mining method combines the use of large mobile equipment with the ability to selectively mine 4 metre high horizontal slices over the length of the ore body. The 4 metre high slice or cut is then filled using hydraulically placed alluvial sand which becomes the working platform from which the next 4 metre cut is mined. The next 4 metre cut can be radically different in shape from the previous cut. The fill replaces the mined out ore and allows the mine operator to follow the grading structures on the next cut as they develop. The fill also minimizes the ground movement that could occur from irregular shaped cut profiles. 1.7

Figures 9.1 and 9.2 illustrate how radically the cut by cut geometry can change and yet be mined successfully using the MCF method. An average daily ore production rate of 500 tonnes per day was used for the evaluation. This rate is based on cycling of a single or combination of faces using MCF methods totaling the following dimensions ;15 m in width by 4 m in height by 4 m deep, over a 24 hour period. The use of hydraulically placed alluvial fill is a key component to maintaining the planned extraction rate and budgeted costs. The mining method requires a minimal of skilled miners due to its mechanized nature and has been successfully used locally by the former Placer Dome Inc. at the Detour Lake property. The following table summarizes the economics of the project based on the parameters outlined in detail in section 11. Table 1.3 Cumulative Cash Flow in (000 s) CDN $ Project NPV CUMULATIVE CASH FLOW TOTAL TOTAL TOTAL TOTAL @ 2007 2008 2009 2010 6% CASH FLOW AFTER CAPEX -$275,000 -$4,639 $7,212 $12,040 $11,204 This economic study focuses on the core or geographic centre of the resources available at the Davidson Tisdale property. A more in depth study would evaluate the remaining resources which given that the surface plant and rehabilitation costs have already been incurred, would make the economics less reliant on grade. The following sensitivity graph illustrates the impact on cash flow when key parameters are varied by increments of 5 percent. The exchange rate, followed by the gold price, has the most significant impact on the project results. Other factors that are under the control of the mine operators, such as head grade and mill recoveries will have an equivalent or greater impact on the project outcome. An increase or decrease in head grade of 0.25 grams will mean a positive or negative $2 million in revenue for the project. Mill recoveries that fluctuate by 1.0 % will mean that roughly $400,000 will be added or subtracted to the project bottom line. 1.8

Table 1.4 Sensitivity Graph $19,000 $17,000 ($CDN $000) $15,000 $13,000 $11,000 $9,000 $7,000 $5,000 1 2 3 4 5 x 90% 95% 100% 105% 110% Gold Price $6,577 $9,309 $12,040 $14,772 $17,504 Exchange Rate $18,116 $14,921 $12,040 $9,443 $7,077 Operating Costs $14,256 $13,148 $12,040 $10,933 $9,825 Capital Costs $12,187 $12,114 $12,040 $11,967 $11,894 Recommendations: Due to the healthy economics demonstrated by this model, Vetrin (VMPL) recommends that VG Gold Inc. proceed with the recommendations as detailed in section 13 of this report. These recommendations in summary will: 1) Set parameters for the mining widths allowable in the mineralized zone and therefore confirm or cause modifications to the productivities used in this study. 2) Locate a reliable and economic source of alluvial fill. 3) Firm up construction design and costs of a key piece of the surface plant. 4) Clarify haulage routes in order to firm up haulage costs, which may be impacted by public decent depending on the final trucking route. 1.9

2.0 TERMS OF REFERENCE The Davidson Tisdale property is located in Timmins, Ontario and contains several shallow shafts dating back to the 1920 s, plus a ramp extending from surface to the -150 metre elevation which was developed during the 1985-88 exploration campaign. Of the total of 59,600 metres of recorded diamond drilling done by others, 75 % or 44,500 metres was completed during this same time period. VG Gold Corp has completed an additional 12,000 metres during the 2003 to 2004 period and procured property resource estimates from Geostats Systems International and from P & E Consultants. Mining activity was confined to the removal of a 44,000 tonne bulk sample in 1988 by Getty Resources,which produced 7,300 ounces. An additional 2,450 ounces of production has been recorded in the 1911 to 1924 period. Several recent mineral resource studies have tonnages ranging from 750,000 to 1.7 million tonnes depending on the cutoff grade used. The presence of erratic coarse gold occurrences in this deposit has also produced several re-calculations of tonnes and grade based on various statistically derived cut factors. This study evaluates what portion or portions of the mineral resource that could be economically mined using current economic conditions and current mining technologies and methods. The mining resource estimate has been prepared with the assistance of Mr. Peter Bevan, P.Eng., an independent consulting geologist, using the P & E Consultants data. Mr. Tom Meredith, President of VG Gold Corp., has secured the services of Vetrin Mine Planners Ltd. to complete a preliminary economic assessment for the mining of the Main / B Zone and S Zone resources. All information contained in this report was compiled and gathered by VG Gold Corp. from recent and past 43-101 compliant exploration drilling, and from past exploration data and studies completed by others. The Qualified Persons who contributed to this report include Mr. Peter Bevan, P.Eng., Mr. Rodney Doran, P.Eng., Mr. Ken Guy, P. Geo. and Mr. Ronald Moran, P.Eng. All four individuals have visited and or are familiar with the project site and its conditions. This study includes measured, indicated and inferred mineral resource categories. Inferred mineral resources are defined as being too speculative to be counted on as having a positive economic impact on the project. 2.1

3.0 RELIANCE ON OTHER EXPERTS The authors of this Technical Report have reviewed and analyzed data provided by VG Gold Corp. (previously Vedron Gold Inc.) and the technical team listed in Section 15.1 and have drawn their own conclusions therefrom, augmented by their direct field examination. Vetrin has not carried out any independent exploration work, drilled any holes or carried out any sampling and assaying. However, the presence of gold in the local rocks is substantiated by the previous exploration and historic development work completed on the property. The authors have relied upon the data presented by VG Gold Corp. and from the feasibility technical team in formulating its opinion, although all reasonable diligence in checking, confirming and validating data was exercised. Vetrin accepts in good faith that VG Gold Corp. and the members of the feasibility technical team, not working under Vetrin s direct supervision, disclosed all relevant data during the development and preparation of the feasibility study. Copies of Blaney McMurtry LLP s title opinion and agreements with Laurion are attached as Appendix 15 for the readers review. Vetrin offers no opinion as to the validity of the mineral or surface title claims. The description of the property, and ownership thereof, option agreements, lease payments, royalties, etc. as set out in this report are provided for general information purposes only. The description of the geology, mineralization, exploration and resource estimate included in the Preliminary Economic Assessment (PEA) study and this report are based on the NI 43-101 Technical Report compiled by Mr. Ken Guy, P. Geo., in March, 2007 referred to as Exploration Report (2003-2005) and Resource Estimate Technical Report on the Tisdale Project. All currency amounts are stated in Canadian dollars. Quantities are stated solely in metric units, due to the historical and current database existing in metric units. Vetrin is pleased to acknowledge the helpful cooperation of VG Gold Corp. s management and consultants including Mr. Ken Guy, P. Geo., Mr. Peter Bevan, P. Eng. and Mr. Rodney Doran. P. Eng., all of whom made available all data requested, and responded promptly, openly and helpfully to all questions, queries and requests for material. 3.1

4.0 PROJECT BACKROUND INFORMATION 4.1 Property Description and Location VG Gold Corp. (formerly Vedron Gold Inc.) has an option to earn a 75% interest in the Tisdale property from Laurion Mineral Exploration Inc. The property consists of 360 acres in Tisdale Township in the Timmins Mining Camp. Gold production from this camp over the past 88 years is approximately 65 million ounces at a Camp average grade of 0.213 ounces gold. Ten different mines have produced in excess of 1.0 million ounces and account for 91% of the gold recovered in the Camp. The Davidson Tisdale property is located approximately 3 km along strike from three mines which have produced over 31 million ounces of gold. Since discovery in 1911 the property has been explored intermittently. Much of the drilling has concentrated on three areas and was aimed at grade definition in selected areas. The majority of the drilling has been concentrated around the historic underground workings to a depth of approximately 160 metres below surface. A few holes were drilled to greater depths and the deepest known hole intersected the mineralized zone at over 400 m depth. Several shafts have been sunk on the property with a decline driven for 1,081 m and to a vertical depth of approximately 200 m. Numerous historic, shallow depth vertical and an inclined shaft are also present on the property. A mining attempt in the 1911-1924 period recorded an output of 2,450 ounces of gold, mining and processing of a 44,000 tonne bulk sample in 1988 produced 7,300 ounces of gold. The average recovered grade of this mineralization was 6.51 g Au/t and it was noted that recoveries in both tests were lower than they should have been due to inadequate preparation and poor technical control. The most intensive exploration program was carried out by Getty Canadian Metals and successor companies between 1984 to 1988. This program saw expanded surface diamond drilling, underground drilling, reopening of historic workings, extensive sampling of underground workings and the driving of a ramp from surface to access the historic underground working and test the mining potential of both the Main Zone and the S-Zone. During the Getty program several ore reserve estimates were completed. A 1984 study indicated "reserves" to a vertical depth of 200 m of 747,600 tonnes @ 12.39 g Au/t. Geostatistical ore reserve estimates by consultants indicated higher tonnages but at a lower grade. A 1987 estimate by Getty indicated 512,500 tonnes @ 16.53 g Au/t. A more recent resource calculation by Geostats in 2003 indicated a total measured, indicated and inferred resource of 1,773,296 tonnes at 0.156 oz Au/ton for 304,491 total ounces of gold. VG Gold Corp. has conducted a number of surface drilling campaigns, during the period 2003 to 2004, totalling 56 surface diamond drill holes totaling 12,137.8 metres. The focus of the VG Gold programs has been to expand the resource of the Main Zone at depth and along strike. Previous exploration, including Getty, only tested the zone to the 500 foot level or 160 metres below surface. 4.1

Experience in the Camp has shown that, due to the intense nugget effect evidenced by much visible gold; the assays from surface drill holes can be most misleading in that they understate the grade. Experience at an adjacent mine has shown that such understatement can be between 60% to 400%. The strategic location of the property and the encouraging results from exploration efforts to date suggest that a focused and controlled exploration of the property could be most rewarding. Figure 4.1 Regional Location Map Red Lake Timmins Val d OR Sudbury 4.2

4.2 CLAIMS The total property consists of 28 units (25 claims) covering approximately 1150 acres (465 ha) in Tisdale Township in the Timmins Mining Camp. Of this total, 4 claims full under an earn-in option agreement. The project is accessible via an all-weather road off of Crawford Street in South Porcupine. The Company's property has been the subject of exploration programs since discovery in 1911 and, though the most intensive program was by Getty Metals in the mid to late 1980s, only very limited production has been achieved mainly as a result of bulk sampling. VG Gold Corp. has an option to earn a 75% interest in the 4 claims identified below by carrying out an exploration program on the property. Following is a list of the claims. Table 4.1 Mining Rights in Whitney and Tisdale Township UNIT# Number of Units UNIT# Number of Units UNIT# Number of Units Parcel 3852 4* 12887 1 12811 1 12761 1 6285 1 12890 1 **12753 1** 12959 1 6270 1 12886 1 6454 1 12972 1 12906 1 6287 1 12970 1 6577 1 6238 1 12969 1 12888 1* 12889 1 1111376 1 14215 '/ 2 1* 12812 1 12764 1 ** all main zone underground workings and developments are located on this claim which would be the focus of additional underground exploration. * delineates ground under the earn-in agreements 4.3

4.3 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY The Davidson-Tisdale property has a paved road from Timmins to the gate of the property. The climate is typical of North East Ontario with temperatures in the range of 30 C in the summer to minus 30 C in the winter. The City of Timmins is about 100 years old and one of the most famous gold mine camps in Canada as well as one of its most productive to this day. Therefore, the local community offers all the services for exploration and mine production both underground and open pit. Timmins has a modern airport and it is connected to the major network of highways, including the Trans Canada Highway. The physiography is typical of glacial regions where the landscape is made of low hills and numerous rivers and lakes. Timmins is also host to the Kidd Creek mine, a polymetallic mine containing zinc, copper, gold and silver, owned and operated by Xstrata (formerly Falconbridge Ltd). It has smelting and refineries facilities located in Timmins. 4.4 PROPERTY HISTORY In 1909, the Dome, Hollinger, McIntyre and Davidson mines were discovered. The property was incorporated as Davidson Gold Mines Limited in 1911 and was succeeded in 1919 by Davidson Consolidated Gold Mines Limited. In 1921 Porcupine Davidson Mines Limited was formed as a 50/50 joint venture with British interests. Due to disagreement between the partners, prolonged litigation resulted in the property being inactive for several years. In 1925 control reverted to Davidson Consolidated Mines Limited who then sold the mineral rights to the Mining Contracting and Supply Company (Ventures Limited - the forerunner of Falconbridge). In 1945 Ventures sold the rights to Davidson Tisdale Mines Limited and, though various joint ventures have been undertaken with several parties over the years, title has remained with the Company. 4.4.1 Work History 1911-1924 Between 1911 and 1924 exploration on the property comprised surface drilling and underground development through a small exploration shaft. Thirteen surface holes totalling 4,070 m were drilled and a 2-compartment vertical shaft (Main Shaft) was sunk to a depth of 95 m. Levels were established at 30 m, 60 m and 90 m with approximately 700 m of lateral development. An internal vertical winze was sunk a further 67 m from the 90 m Level with some 490 m of drifts and cross-cuts on the 3 new levels developed. A limited amount of underground drilling was carried out. In 1918 electricity was brought to the site and a 10 stamp mill operated at 30 tons per day till it burned down in 1924. A reported total of 8,501 tonnes @ 8.9 g Au/t was milled and 2,438 ounces of gold recovered using mercury amalgamation. It is noted that about 20% of the gold content was lost using this process. 4.4

In 1923/24 the 3-compartment Horseshoe Shaft was sunk at a site 180 m west of the Main Shaft. Inclined at 72 degrees to the northwest, the shaft was intended to go to a depth of 300 m in order to develop the deeper gold-bearing veins encountered by surface diamond drilling. Due to withdrawal of the British financial backers in late 1924, the shaft stopped at 247 m and stations were established at 60 m, 120 m, and 167 m along the incline. 4.4.2 Ventures (1933-1945) Between 1933 and 1945 Ventures drilled 11 holes into and below the old workings in an attempt to locate vein extensions and to verify the high-grade results reported from previous drilling. They drilled a total of 1,557 m but the results did not meet their requirements and they returned the property to Davidson Tisdale Mines. 4.4.3 1945-1981 A report by Ed Hart in 1977/8 indicates that the tonnage and grade are understated while Kirwan reported positively on the property. 4.4.4 Dome Mines -1981 In 1981 Dome Mines drilled 10 holes (1,118 m) with only one deep hole in the vicinity of the old workings. Dome regarded the old mine as exhausted and quoted the results of Ventures' underground sampling. Kirwan notes that Ventures had NOT done any underground sampling as they had not dewatered the mine. In fact the old workings remained flooded from 1924-1983. Dome drilled an 11 th hole to test the strike continuity based on "the old 70 :70 model" i.e. a mineralized zone dipping at 70 and striking 070. 4.5 RECENT EXPLORATION The period from 1983 to 1987 witnessed the most extensive and integrated exploration of the property. Efforts were concentrated in the known areas of old showings and workings, with very little propertywide exploration. It was during this period that resources and reserves were developed and the potential of the property quantified for the first time. 4.5.1 Davidson-Tisdale (1983-1984) In early 1983 a new group assumed control of Davidson Tisdale Mines Limited and an extensive surface and underground exploration program was carried out. New grids were established, ground geophysical surveys (magnetics, VLF-EM, Maxmin II HEM and Pulse EM) were completed. A thorough 4.5

compilation of all available data was completed by Kirwan who recommended an extensive, though flexible, program. The following program was completed during 1983: Extensive stripping in the Main Shaft area uncovered numerous occurrences of free gold (VG) over an area greater than 600 ft long., Smith Vet & South Shaft areas were stripped but not mapped while trenching and stripping at Cal's Dome showed high gold values in quartz veins in sediments. Kirwan notes that VLF surveys show this sedimentary horizon to extend across the property. Stripping uncovered "an exciting occurrence" at the intersection of NW and NE trending quartz vein systems (the T-Zone). Gold occurs in thin quartz veins underlain by highly carbonated volcanics with VG. Extensive percussion drill sampling was carried out in the Main Shaft and T-Zone areas to test for open pit potential. Twenty-three holes comprising 2,125 m were drilled in the Main Shaft area. The underground workings were de-watered and rehabilitated followed by extensive sampling, assaying and geological mapping. No underground drilling was undertaken. One of the most significant conclusions from the 1983 program was the demonstration that the major vein system in the Main Shaft area strike at 030 with a 45 northwesterly dip rather than the 70 striking and 70 dipping structure as previously thought and which had guided previous exploration. During early 1984, 11 drill holes (2,080 m) were completed in the vicinity of the Main Shaft area and some underground mapping and sampling was completed. Getty Canadian Metals Limited became operator of the project on March 1, 1984. 4.6.1 Getty 1984 Program 4.6 Getty Canadian Metals (1984-1987), a subsidiary of Getty Oil of the USA The stated objectives of the 1984 program were as follows: To indicate by drilling the tonnage potential of the known quartz vein zones To establish the inferred continuation of these systems to the southwest along a strike length of 700 m and to a maximum depth of 230 m. To assess the potential for a 1 to 3 million ton deposit To explore for additional vein systems To outline sufficient tonnage to justify an underground exploration and development program The program achieved the following: 4.6

Main Shaft Zone Drill testing the Main Shaft Zone on 50m centres and to a depth of 250 m between the Main Shaft and the S-Zone, a distance of 450 m. In-fill drilling at 25 m centres was completed in selected areas of the main Zone. Two en echelon auriferous vein systems striking 030 and dipping at 30 to 45 NW were identified. 45% of the drill holes encountered VG, with 45% of the holes returning 1.7 g Au/t or greater over the full width of the vein system. Smith Vet-T Zone Exploration for 400 m to west of Smith Vet-T Zone to a vertical depth between 50 and 200 m. At least 2 parallel vein systems identified with the main auriferous structure (S-Zone) striking at 090 and dipping north at 25. Limited in-fill drilling on 25 m centres was completed. 36% of the holes intersecting the S- Zone quartz vein system encountered VG with 25% of the holes returning 1.7 g Au/t or greater over the full width of the vein. The status at the end of 1984 was as follows: An in-house ore reserve calculation by Getty for the main Shaft and South Zone demonstrated 747,600 tonnes in the drill indicated category. The average uncut and in-situ grade averaged 12.39 g Au/t over an average true vein width of 3 m and to a depth of approximately 200 m. Potential to significantly increase the reserves was identified. Getty also identified open pit potential for the S-Zone. (It should be noted that the parameters used by Getty in their definition of "Reserves" have not been stated. A more appropriate wording may be to regard these as resources as the drill spacing of 25 m may be too wide for this type of deposit) 4.6.2 Getty 1985 Program This program was comprised of 2 phases. Phase 1 program was to evaluate the potential for nearsurface open pittable reserves in the S-Zone in the Smith Vet- T Zone area, while Phase 2 involved mining a bulk sample from underground to validate the drill-indicated reserves between the 4 th and 5 Levels. 1985 Program-Phase 1 This program comprised 835 m in ten diamond drill holes. Though the vein system was encountered, as anticipated, the lack of significant assays together with budget constraints caused the program to be terminated and efforts to be focused on the Phase 2 underground program. 4.7

1985 Program - Phase 2 This program consisted of 4 surface and 8 underground pilot core holes (761 m), site preparation, head frame installation and underground rehabilitation. Ninety-seven metres of crosscutting and 53 m of raises were completed and a 2,885 tonnes bulk sample was obtained. Systematic chip and muck sampling comprised of approximately 4,000 samples. An important part of this program was the comparison of grade as indicated from drill holes with that achieved from the various sampling methods employed. The principle conclusions from this program were: The quartz vein systems are very irregular and erratically mineralized. The vein systems are complex rather than being a simple sheet-type system. Comparison of assays from drill core with those from various sampling experiments underground suggest that whole core rather than split core should be sent for assay. Cutting individual assays > 34.28 g in drill core is indicated. Muck, panel and channel samples correlate very well with sample tower results, suggesting that these be used for grade estimation. Getty Program - 1986/87 - Phase 1 Underground Program The main component of this program was a bulk sample from the 4 th Level to test the Lower Vein System. A total of 7,270 tonnes was mined and some 6,970 tonnes, of which 1750 tonnes were classified as waste, were brought to the surface. Though the bulk of the material (75%) was mined on the 4 th Level, mineralization was also recovered from the 3rd and 5 th Levels. An additional 55 short diamond drill holes were completed totalling 1,337 m and the excavations mapped. The material was panel and muck sampled. As slashing began on the 4 th level it became apparent that the high-grade areas were visually identifiable so that the mining of this sample was effectively under geological control. Material was divided into stockpiles of varying grades as determined using chip samples from underground on onemetre squares and surface grab samples. Table 4.2 Assays of Different Stockpiles Pile# Tonnes Grade Gram x Tonnes Grade g Au/t Uncut Cut Uncut Cut Uncut Cut 1 3313.4 17.63 8.58 58,408 28,426 2 740.0 4.60 4.60 3,404 3,404 3 1200.0 2.09 2.09 2,508 2,508 64,320 34,338 Total 5,253.4 12.24 6.54 4.8

Underground panel sampling completed subsequent to the mining indicated a grade of 7.31 g Au/t for the area of bulk sample Pile 1. A geostatistical study was undertaken by Geostat Systems International in order to determine the optimum drill hole spacing; calculate and classify the in-situ geological reserves make recommendations for programs necessary to upgrade reserves The following table presents a comparison of the reserves as determined by Geostat with those of Getty at two cut-off levels. Table 4.3: Geostat Systems Resource Estimate Compared with Getty Reserves at 1.7 g/t cut-off Zone Geostat Systems Getty Metals Tonnes Grams Au/t Tonnes Grams Au/t Main Shaft Upper 125,042 8.29 72,926 11.79 Main Shaft Lower 524,677 9.19 319,679 13.48 Smith Vet "S" 1,140,800 4.73 287,218 12.91 TOTALS 1,790,519 6.28 679,823 13.06 Table 4.4 : Geostat Systems Resource Estimate Compared with Getty Reserves at 3.43 g/t cut-off Zone Geostat Systems Getty Metals Tonnes Grams Au/t Tonnes Grams Au/t Main Shaft Upper 125,042 8.29 56,226 14.54 Main Shaft Lower 524,677 9.19 249,974 16.59 Smith Vet "S" 664,459 6.28 206,283 17.01 TOTALS 1,314178 7.64 512,483 16.53 It was concluded that the optimum drill hole spacing should be 6.25 m apart to permit economic blocks of mineralization to be outlined. 4.9

Conclusions on Mineralized Zones Following the Phase 1 underground program Getty personnel commented on the nature of the mineralized zones; In the vicinity of the Main Shaft gold occurs in a quartz stringer zone associated with a strong shear and sericite-carbonate alteration halo. Though the quartz conforms to the shearing along strike, it cross cuts the shearing down dip. Locally the stringer zones are very irregular and contain very erratic gold values. Individual veins dip steeply to 90 at the centre of the system and locally flatten to 0, suggesting a sigmoidal pattern. Interpretation of surface drilling had suggested a "sheet-like" vein system dipping about 45 NW. Underground, the gold mineralization was seen to be largely confined to a series of steeply dipping, en echelon quartz vein fracture systems occurring within the overall 45 dipping structure. The geometry of the mineralized zones is as follows; Strike lengths of up to 40 m Widths of 2 to 4 m Dip lengths of about 12 m Upper and lower contacts plunging 20 and 70 to the west Dip is near vertical Mineralized zones are en echelon lining up within an envelope having a dip of 45 N and striking 060 Getty Program -1986/87 - Phase 2 Commencing in November 1986, the objectives of this program were: To detail the geometry of the mineralized shoots above the 106 m (350 ft) Level To upgrade the reserve category from drill probable to mine proven and to generate sufficient information for the proposed feasibility study To determine the most efficient mining method To process the bulk sample at a custom Go-Mill Under the Phase II underground exploration program the main ramp was driven 17 metres below the 5 th Level, a total distance of 1,081 m and the west ramp was drive 506 m to the "S" Zone. In excess of 6,000 m of underground diamond drilling was completed. Detailed channel sampling was carried out on the 5 th Level and the results indicated two areas with very high grade (up to 4075 g Au/t in one channel) which was well supported with other samples ranging from 200 to >1000 g Au/t (Fig. 4). Total underground excavation was as follows: Ramping 1,504.7 metres Drifting 960.5 metres Raising 199.0 metres 4.10

5.0 GEOLOGICAL SETTING 5.0.1 Regional Geology The geology of the Timmins Camp comprises a thick sequence of Archean volcanic and sedimentary rocks that have been intruded by synvolcanic and post tectonic felsic dykes (Figs. 2 & 3). The volcanicsedimentary sequence has been subdivided into three main groups, the Deloro, Tisdale and Porcupine Groups. The lowermost Deloro Group comprises mafic to ultramafic flows overlain by a series of pyroclastic rocks and with a well developed regional iron formation near the top. No significant gold production is associated with the Deloro Group in the Timmins Camp. The overlying Tisdale Group comprises ultramafic volcanic flows in the lowermost formation overlain by a sequence of high iron basaltic flows containing a number of carbonate sedimentary units. The top of the Group comprises felsic pyroclastics. This Group hosts the majority of gold production in the Timmins Camp. The youngest rocks in the Camp are the clastic sedimentary rocks of the Porcupine Group. In addition to overlying the volcanics these sediments may be laterally equivalent to the volcanics and distal to the major centres of volcanism. The area exhibits a complex structural pattern with at least three major periods of deformation being recognized. This tectonic activity has resulted in a series of doubly plunging, upright, isoclinal folds which are offset by major fault structures and related secondary faults. The following are the main characteristics of gold occurrence in the Timmins Camp: The dominant source of gold is within quartz vein lodes containing locally spectacular free gold The quartz vein lode deposits are structurally controlled areas of dilatancy which permitted the development of vein zones The majority of gold production in the Camp is hosted by rocks of the Tisdale Group Some gold production is hosted in pyrite-bearing pyroclastics within the mafic volcanics of the Tisdale Group. Some production comes from quartz veins within the sediments of the Porcupine Group where they unconformably overlie productive portions of the Tisdale Group. 5.1

5.1.1 Local Property Geology: 5.1 GEOLOGY of the PROPERTY The Davidson Tisdale property was mapped in 1936 by D.R. Derry on behalf of Ventures and again in 1984 and 1985 by D.W. Broughton and R.G. Roberts on behalf of Getty. The property is located in the Porcupine Gold Camp, along the possible offset easterly projection of the Hollinger-Macintyre trend. The property is underlain by a sequence of overturned easterly striking, northward dipping, pillowed and massive, magnesium tholeiitic volcanic flows of the Tisdale Group. In the southernmost part of the property there are outcrops of the distinctive V8 variolitic flows, underlain by a massive flow ( 99 ), which forms the basal member of the iron tholeiitic group. Minor graphitic sediments containing some pyrite and pyrrhotite have been noted locally on the property. Alteration on the property is widespread, consisting of a low-grade calcite-chlorite envelope enclosing a higher-grade quartz-sericite-ferro dolomite or ankerite core. Alteration was not well documented in the drill logs database and has been recorded as somewhat patchy at the margins. The alteration is largely, if not entirely pre-faulting. The abundance of faults is one of the most prominent features of the Davidson Tisdale property. Three distinct fault sets have been identified from underground workings on the property (Watts, Griffis, and McOuat, 1988). The faults are moderate to strong shear zones up to two metres in thickness. All known mineralized blocks lie within or very close to these faults. The Main Fault strikes 060º and dips 50º to the north. There is a set of faults, which generally parallel the main fault, but dip at 60º to 75º to the north. The second set of faults strikes 025º and dips northwest at 60º to 65º. These have been noted between fourth and fifth levels, representing a dilatant zone between two 060º structures. They contain prominent short veins, locally with gold mineralization. The third set trends 080º, dipping 30º to the north. These are limited to the east end of the workings and contain large blow-outs of quartz with erratic gold grains. 5.1.2 Deposit Types The Timmins camp of the Abitibi greenstone belt is the most prolific gold camps in Canada with production in excess of 62 million ounces Au, with the majority from 3 main deposits: Two types of quartz veins were identified on the property (Brooks, 1987): type 1 - continuous tabular veins striking generally east-west and dipping 15º to 55º to the north, and type 2 - discontinuous, irregular, sub vertical and steep north dipping to shallow south dipping lenses of quartz stringers and veins, striking 40º to 70º azimuth. 5.2

Examples of the type 1 veins are the S vein and the shallow vein stoped on the first level. They are gently undulating in strike and dip, vary in thickness from 0.5 to 7 metres, banded with seams of tourmaline, and mineralized with minor amounts of pyrite and chalcopyrite in areas of gold enrichment. Drifting and drilling to date indicate extensive barren veining with small high-grade pockets of native gold, the structural significance and predictability of which are unknown (Brooks, 1987). Type 1 veins are uncommon in the drill hole database for the pit area. The type 2 vein quartz vein systems appear to be lenses of quartz veinlets and stringers which are oriented sub parallel to and separated by faults. These vein systems coalesce in places to form blow-outs of quartz breccia up to fifteen metres wide. These quartz veins often give way to shallowly south dipping auriferous quartz-filled tension gashes, which are abruptly terminated at faults. Most gold in the type 2 veins occurs near vein margins or xenoliths and is associated with patches of talc/muscovite and serpentine (often logged as chlorite), and a local increase in fine to coarse pyrite and chalcopyrite. Following the Phase 1 underground program Getty personnel commented on the nature of the mineralized zones: In the vicinity of the Main Shaft gold occurs in a quartz stringer zone associated with a strong shear and sericite-carbonate alteration halo Though the quartz conforms to the shearing along strike, it cross cuts the shearing down dip Locally the stringer zones are very irregular and contain very erratic gold values Individual veins dip steeply to 90º at the center of the system and locally flatten to 0º, suggesting a sigmoidal pattern Interpretation of surface drilling had suggested a sheet-like vein system dipping about 45º NW. Underground, the gold mineralization was seen to be largely confined to a series of steeply dipping, en echelon quartz vein fracture systems occurring within the overall 45º dipping structure. The geometry of the mineralized zones is as follows: Strike lengths of up to 40 m Widths of 2 to 4 m Dip lengths of about 12 m Upper and lower contacts plunging 20º and 70º to the west Dip is near vertical Mineralized zones are en echelon lining up within an envelope having a dip of 45º N and striking 060º 5.3

6.0.1 Historical Drilling 6.0 EXPLORATION DRILLING VG Gold Corp. conducted surface drilling on the property during the period 2003 to 2006. A total of 56 holes, 12,138 metres were completed. Drilling was primarily focused on increasing the resource of the Main Zone, along strike and at depth. Previous exploration had been concentrated in the vicinity of the historic workings with little drilling below the 500 foot level of the mine. Typically, mines in the Timmins camp have great depth extent, commonly exceeding 2000 feet. Results from the VG Gold Corp. drilling were very favourable, indicating high-grade gold mineralization below and peripheral to the historic exploration and resources. Results are summarized on the following table, table 6.1. Results indicate the high gold grades associated with the Main Zone mineralization when the vein system is encountered. The term QVS or Quartz Vein System refers to zones of quartz mineralization hosted within the altered Mafic Volcanic. The QVS forms bodies of quartz containing assimilated host rock with pyrite and visible gold. The attitude of the QVS within an envelope striking 070 degrees and dipping to the north at approximately 70 degrees. The individual vein sets within this envelope can have various orientations, from steep to flat, and varying dimensions. 6.0.2 Synopsis of Drilling Progams Numerous drilling programs have been undertaken on the property since the initial work in 1911. Approximately 48,000 m of drilling has been drilled in over 300 holes. The following table shows the statistics on the surface drilling as compiled from the reports available in the public domain. Table 6.1 Drilling Statistics Year Company # of Holes Metres 1911-1924 Davidson 13 4,070 1933-1945 Ventures 11 1,557 1981 Dome 11 1,118 1983-1984 Davidson 34 4,205 1984-88 Getty - surface 226 34,096.6 1985-88 underground 288 10,436.8 1985 Davidson-Tisdale 4 2237.1 1989 Midas Minerals 5 1,486.2 1995? Kirwan 17 399.3 1999-2002? Northcott???? TOTALS 609 59,606 6.1

Much of this drilling was infill and shallow around the known occurrences. Some deep holes were drilled and the deepest intersection of the Getty drilling showed the zone to be present at a depth in excess of 400 m. The Midas Minerals drilling was aimed at investigating the down plunge extension of the zones and one or two significant intersections have been verbally reported. 6.0.2 Drilling by VG Gold Corp. Table 6.2 VG Gold Corp. Drilling Company Year # of Holes Metres VG Gold Corp. 2003-04 56 12,137.8 VG Gold s exploration was successful in extending the known mineralization both along strike and down plunge. Further exploration is necessary for further delineation of the Main Zone with a view towards re-opening the underground ramp or outlining an open pit mining resource. Holes were drilled along strike to both the northeast and southwest targeting both shallow extensions of known mineralization and deeper plunge extensions. 6.2

7.0 ASSAY QUALITY CONTROL 7.0.1 Sampling Method and Approach Geochemical results reported from the Tisdale Project are from halved drill core samples collected by the Company and are subject to the Company's quality control program. Sampling of the drill core was conducted on site at the Company's South Porcupine core facility, located on the Tisdale property, by trained personnel. Samples were transported to the Laboratoire Expert preparation facilities in Rouyn, Quebec. Samples were assayed for gold by standard fire assay-icp finish with a 30 gram charge. Gold values in excess of 3 g/t were re-analyzed by fire assay with gravimetric finish for greater accuracy. The remaining half of the drill core is stored on-site at the Company's South Porcupine core facility. For quality control purposes blank, duplicate and analytical control standards were inserted into the sample sequence at irregular intervals and no significant discrepancies are reported. Mr. Ken Guy managed the Getty Canadian Metals and Getty Exploration work conducted on the property in the period 1984 through 1987. During this time all exploration work and analysis were conducted according to the highest industry standards at that time. Including, but not limited to, approximately 10% of mineralized zones were cross checked at outside Laboratories The database used for the estimation of mineral resources at Tisdale includes the collar survey, down-hole survey, assay, geological and geotechnical data for each drill hole. The database is updo-date, including all of the results of the 2003 drill campaign. The majority of the geological data has been collected by relatively few geologists that participated in more than one field campaign, thereby minimizing the potential for introducing inconsistencies during rock identification. A limited number of geologists converted data into electronic form over the years. Field data was verified on site before being crosschecked and incorporated in the GEMCOM software and the data was validated by a senior geologist. The assay data was transferred from the laboratory assay certificates to the assay field in the database using unique sample numbers. As a preparation for mineral resource estimation that was undertaken by P&E Consultants, appropriate tests were run by the GEMCOM software for distances missing or for overlaps for both geology and assay data, and the few inconsistencies corrected. Down-the-hole survey data is available for all drill holes. VG Gold surveys consisted of a digital reflex instrument recording, azimuth, dip and magnetic field. Tests were taken a few metres below the casing and every 50 metres thereafter. During the Getty drill programmes, hole deviation was measured with a Sperry Sun single shot survey tool, with tests only at the bottom of each hole. 7.1

All Getty holes and most of the VG Gold holes had the drill collars surveyed in to the local grid coordinate system including azimuth and dip of the casing. Casing was left in the hole for virtually all of the drill holes. Both VG Gold and Getty conducted comprehensive QA/QC programs during all of their drill programmes to validate the assay results received. Blind repeat assaying at the original laboratory shows good precision of the results, while check assaying at outside laboratories gives comparable results. The assay database for the Tisdale Project is reliable. 7.2

8.0 MINERAL PROCESSING 8.0.1 Mineral Processing: At the time of this report, the author is not aware of any metallurgical testing data available on the Davidson Tisdale ore. The IN 43-101 report has comments on the results from the 44,000 tonne bulk sample that Getty Resources put through a custom mill during the late 1980 s. These comments are not technical in nature and refer only to the possible lack of quality control and low milling rates which suggest mechanical problems during process. That be said, the 1980 s milling campaign produced a recovered grade of 5.48 grams per tonne which is compatible with the forecast grade of 6.84 grams used in this study. The custom mill in question is located north east of the project and was constructed during the late 1980 s. Given the existence of coarse free gold, the state of this mill s gravity circuit should be inspected and upgraded if necessary. Core samples of the ore zone should be sent for testing to establish a base line for entering the custom milling agreement. 8.1

9.0 MCF MINING RESOURCE ESTIMATE The following mining resource calculations have been compiled using the base data from the 43-101 report published by Mr. Ken Guy, P. Geo. The report contains current data developed by VG Gold Corp. (formerly Vedron Gold Inc.) and past reports by E. Puritch of P&E Engineering and Geostats International. The full report can be accessed via the SEDAR s web site dated March 26/07. Portions of the report are contained in sections 4 through 7. VETRIN has studied the sections, reports and participated in extensive discussions with VG Gold personnel and came to the following approach to produce an economic evaluation of the Davidson Tisdale property. The mining method that would best fit the shallow dip, erratic high grade nature of this deposit, combined with the physical dimensions of the host structure would be mechanized cut and fill (MCF) mining using hydraulically placed alluvial fill. This method allows for the selective extraction of the gold bearing structure, on 4 to 5 meter vertical increments. MCF has the added benefit of being able to; on a to shift by shift bases, remove or bypass low grade or waste volumes. As production mining proceeds; the site geological personnel will develop the ability to make visual calls on individual blasts as to their qualifying as ore grade, low grade, or waste. This is the operating cost/tonne and technical cost/ounce benefit of the cut and fill mining method. The use of alluvial fill adds to the productivities in that minimal amounts of manpower and horsepower are required to fill and setup for the next production sequence. The fill is placed by gravity and does not hijack production equipment and manpower from their key rolls as the cash flow providers of the operation. The mine plan calls for a minimal amount of waste development which therefore removes this activity as a primary source of backfill material. Secondly; the 1986-87 Getty Resources ramp development work resulted in the ramp being in close proximity to or completely within the ore zone limits. Figures 9.1, 9.2 and 9.3 illustrate the access ramps location over a 15 meter vertical drop (3200 m to 3185 m) relative to the B Zone resource outlines. Figures 9.4 and 9.5 are sections from surface to the 3150m elevation that locates the mine workings relative to the 3150 stope block. These sections also provide an insight into the geometry of the ore zone and also demonstrate why MCF methods would provide the extraction flexibility needed to optimize both grade and resource recovery. For the purpose of this study the author has assumed that only one production heading is available. The location of the ramp within the ore zone limits means the ramp will be consumed as MCF mining progresses and therefore for the purpose of this study the schedule contains only one active heading retreating from the bottom up. A more detailed study could address whether a short by-pass ramp to create a second heading would have a positive economic result. The study focuses on the mining of the core or center of gravity of the B Zone This falls between the 3200 m elevation down to the 3150 m elevation. In order for the reader to orient themselves, the surface portal elevation has been set at an arbitrary 3300 m which means that the main B Zone stoping block is located between 100 and 150 metres below surface. This block is referred to as the 3150 MCF Stope in Table 9.1. Three other smaller ore sources have also been included in the study of 9. 1

which only the 3120 MCF stope requires any significant amounts of capital development. This is an extension of the present ramp bottom by another 350 meters in length to undercut this ore block. Mining limits were established for each of these blocks and with the assistance of Mr. Peter Bevan P.Eng the resource calculations were compiled and have been summarized in Table 9.1. The detailed calculation to establish the mining grade, utilizing the selectivity of the MCF method, is contained in Table 9.2. This table contains a 3m by 3m vertical volume and grade summary which is divided into two columns based on a 3 gram cutoff. The volumes and grades below 3 grams have been referred to as Internal Dilution. It is these volumes that can be controlled by visual calls from the geology staff, or by timely assay results. For the purpose of this study the author assumed that 33 % in the internal dilution would be contained within the ore blasts. The remaining 67 % would be either left as backfill or bypassed all together as lift by lift knowledge of the deposited developed. It is this criteria that was used to establish a mill head grade and to develop underground and surface trucking volumes. Table 9.1 VG Gold Corp. - Davidson Tisdale Project Stope Block Tonnes & Grade Summary diluted and cut to 34.3 grams/tonne tonnes diluted contained contained ounces grade grams 3200 MCF Stope 87,020 5.99 521,444 16,765 3150 MCF Stope 203,424 5.59 1,137,540 36,572 3120 MCF Stope 61,824 12.52 774,155 24,889 " S" Zone Long Hole Stope 21,843 5.78 126,159 4,056 374,110 6.84 2,559,297 82,282 9. 2

Table 9.2 Davidson Tisdale - Mining Blocks - Tonnes & Grade Calc. 3200 MCF Stope Ore Grade Tonnes Internal Dilution From To MCF Lift Ore Tonnes grams/tonne Total Grams Tonnes grams/tonne Total Grams elev. elev. 3228 3231 10 1,025 3.23 3,311 3225 3228 9 3,760 4.96 18,650 3222 3225 8 7,520 6.27 47,150 684 0.50 342 3218 3222 7 7,520 5.41 40,683 342 0.70 239 3215 3218 6 6,494 5.97 38,769 342 1.40 479 3212 3215 5 7,861 6.99 54,948 684 0.85 581 3209 3212 4 10,596 7.64 80,953 342 1.50 513 3206 3209 3 11,963 7.16 85,655 684 3203 3206 2 15,039 5.76 86,625 1,367 0.55 752 3200 3203 1 12,647 4.99 63,109 3,418 0.56 1,914 3150 3200 84,425 6.16 519,853 7,863 0.61 4,820 Sub-Total 92,288 5.69 at 100 % internal dilution 87,020 5.99 at 33 % internal dilution 3150 MCF Stope Ore Grade Tonnes Internal Dilution From To MCF Lift Ore Tonnes grams/tonne Total Grams Tonnes grams/tonne Total Grams elev. elev. 3197 3200 16 15,039 6.75 101,513 9,227 0.26 2,399 3194 3197 15 11,963 7.81 93,431 8,887 0.54 4,799 3190 3194 14 16,406 8.09 132,725 8,887 0.70 6,221 3187 3190 13 10,596 7.19 76,185 10,596 0.25 2,649 3184 3187 12 11,278 7.88 88,871 12,305 0.36 4,430 3181 3184 11 10,254 6.25 64,088 12,647 0.35 4,426 3178 3181 10 6,836 7.06 48,262 12,647 0.52 6,576 3175 3178 9 7,178 4.82 34,598 12,647 0.51 6,450 3171 3175 8 6,494 7.44 48,315 11,963 0.46 5,503 3169 3171 7 8,203 4.79 39,292 10,596 0.42 4,450 3165 3169 6 9,570 8.92 85,364 9,229 0.53 4,891 3162 3165 5 9,229 9.13 84,261 9,229 0.41 3,784 3159 3162 4 8,887 6.00 53,322 8,545 0.30 2,564 3156 3159 3 4,785 4.56 21,820 6,836 0.07 479 3152 3156 2 6,494 9.54 61,953 3,760 0.64 2,406 3150 3152 1 9,229 8.82 81,400 6,494 0.78 5,065 3150 3200 152,441 7.32 1,115,399 154,495 0.43 67,093 Sub-Total 306,936 3.85 at 100 % internal dilution 203,424 5.59 at 33 % internal dilution 3120 MCF Stope Ore Grade Tonnes Internal Dilution From To Section Ore Tonnes grams/tonne Total Grams Tonnes grams/tonne Total Grams elev. elev. 3120 3150 87+50S 1,709 16.52 28,233 342 3120 3150 100+00S 2,734 16.47 45,029 1,025 0.33 338 3120 3150 112+50S 8,203 20.03 164,306 3120 3150 125+00S 9,912 14.62 144,913 2,393 0.24 574 3120 3150 137+50S 14,697 20.20 296,879 3120 3150 150+00S 4,785 19.62 93,882 684 3120 3150 42,040 18.39 773,242 4,444 0.21 913 Sub-Total 46,484 16.65 at 100 % internal dilution 61,824 12.52 plus 33 % external dilution " S" Zone Long Hole Stope Ore Grade Tonnes Internal Dilution From To Section Ore Tonnes grams/tonne Total Grams Tonnes grams/tonne Total Grams elev. elev. 98+75 E 6,278 10.50 65,919 99+00 E 7,549 5.30 40,010 99+25 E 2,975 6.80 20,230 3120 3150 16,802 7.51 126,159 Sub-Total 16,802 7.51 at 100 % internal dilution 21,843 5.78 plus 30 % external dilution 9. 3

Figure 9.1 3199 m Level Plan Existing Ramp B Zone Profile 9. 4

Figure 9.2 3192 m Level Plan Existing Ramp B Zone Profile 9. 5

Figure 9.3 3185 m Level Plan Existing Ramp B Zone Profile 9. 6

Figure 9.4 Section 100 S (-100 N) 3150 Stope Block Profile - 3150 m elev. to 3200 m elev. Main Access Ramp 3150 Stope - Ore Block Profile Main Access Ramp 9. 7

Figure 9.5 Section 87.5 S (-87.5 N) 3150 Stope Block Profile - 3150 m elev. to 3200 m elev. Main Access Ramp 3150 Stope - Ore Block Profile Main Access Ramp 9. 8

10.0 PERMITTING, SOCIAL CONSULTATION AND ENVIRONMENTAL COMPLIANCE 10.0.1 Overview and Approach The permitting, social consultation and environmental compliance are some of the risk factors of any project. The following sections outline some of the environmental and social considerations for the Davidson Tisdale Project. Permitting requirements and potential risks associated with the permitting and social consultation for this project are identified. 10.0.2 Environmental Baseline Studies The Davidson Tisdale project is located within the boundaries of the city of Timmins and approximately three kilometres north of Government Road in the community of South Porcupine. The mine site location is classified as rural wilderness by the City planning department. The closest residences are located on Crawford Street more than two kilometres from the mine site. The mine is accessed from Crawford Street which intersects Government Road (Highway 101) in South Porcupine. Crawford Street extends north to an all weather gravel road that runs directly to the Davidson Tisdale Mine. Access to the mine site is gained by a gated entrance at the end of the gravel road. Average annual temperature is 1.3 degrees C with average extremes ranging from -17.5 in January to a high of 17.4 in July. The total annual precipitation is in the order of 839 mm with approximately 68 percent of the precipitation as rain. The project is located within the southern limit of the Predominantly Boreal Forest Region of Canada. The mine site area is characterized mainly by cleared land, bare outcrop and minimal thicknesses of overburden. Disturbed areas within the Davidson Tisdale Site range from regenerating shrub thicket areas to young sparsely treed areas. The principal tree species in this area include white and black spruce, balsam poplar, balsam fir, jack pine, white birch and trembling aspen. Tree species composition will vary according to soil types and topographic position. Large wildlife species include bear, moose and wolf. There are no known sport fisheries in the immediate area of the mine site. Bell Lake likely contains populations of only forage species. Various fish species are present in lakes and streams in the surrounding areas including northern pike, walleye, small mouth bass and non-sport fish. 10.1

An aquatic environmental baseline study was completed in late 2006 by B. Z. Environmental Consulting of Timmins, Ontario. This study will provide the basis for the environmental considerations in the permitting that will be filed for the mine, including the Ministry of Environment s Certificate of Approval for the mine water discharge and the Ministry of Northern Development and Mines Closure Plan. It is not anticipated that additional pre-operational studies will be required at this time. 10.1 SOCIAL BASELINE STUDIES 10.1.1 First Nations Meaningful communication and consultation with First Nations are essential elements to develop and operate a mine in Ontario. It has been determined that three native groups may have an interest in the Davidson Tisdale project. These groups include the Mattagami, Matachewan and Wahgoshig First Nations. Letters detailing the project plans were sent out to these native groups providing a 30 day notification of interest period. Following no apparent interest in the project follow up telephone calls were made that discovered that all groups were interested in learning more about the project. Formal consultation was held with all of the groups at which time support for the project was asked in the form of a letter of support in return for the offer of employment opportunities for qualified personnel. Following an additional meeting with the Wahgoshig group and conversations with the Mattagami group, both groups submitted Memoranda of Understanding (MOU s) to VG Gold Corp. At this date, both MOU s remain under consideration by VG Gold Corp. To date no letter of support has been received from the Matachewan First Nation. 10.1.2 Archaeology and Heritage Resources Since the Davidson Tisdale project is located on a height of land that is devoid of any navigable waterways and is a redevelopment of mining operations that have been mined on and off since the early 1900 s, it is not anticipated that any significant archaeological or heritage sites exist on the mine site. VG Gold Corp. has not, as of this date, commissioned an archaeological and heritage impact assessment for the project. 10.1.3 Socio-economics The project is located within the city of Timmins limits, population 43,000. The Davidson Tisdale Mine is located 3 km north of South Porcupine and 10 km east of downtown Timmins. Since the actual project site is well removed from residential, 10.2

business and recreational areas, any mining activity on the mine site will have little if any impact on the nearest populated areas. Timmins is a mining community with more than ten operating and historic mines located within the city boundaries. The general public recognizes the present and past mining activity and is generally receptive to new mining activity. There is a risk of objections, depending on the trucking route selected to haul the ore to the Bell Creek mill. The residents along Crawford and Florence Streets in South Porcupine (estimated at two to three dozen directly affected residences) may view the project and its associated effects related to trucking activities as a threat to their safety and quality of life. With this option ore hauling may be restricted in hours of operation. If the mine selects other more direct routes, which will require substantial road construction and upgrading, only minimal opposition to the hauling is expected since the ore hauling activity will not interact with residential areas. 10.2 CONSULTATION AND PERMITTING 10.2.1 Consultation Consultation in the form of a public meeting was held for the Davidson Tisdale Mine in conjunction with the Fuller Mine. Following the announcement that the Davidson Tisdale ore would be hauled to the Bell Creek mill by way of a northern route (not via the Crawford Highway 101 Florence route) there was little interest in the Davidson Tisdale project from the residents that attended the meeting. Beyond regulatory requirements it is expected that additional meetings and consultation with the local residents will be required if the hauling route through the populated areas is chosen. The mineral rights of the six claims upon which the Davidson Tisdale project will be developed and upon which the majority of the ERG tailings occurs are held jointly by VG Gold Corp. (66%) and Laurion Mineral Exploration Inc. (34%) as of June 2007. The surface rights of the land where the mine will be located are owned by the City of Timmins which fell heir to the ERG tailings site following bankruptcy of the ERG project. There is an agreement in effect that grants the Davidson Tisdale project a license to the surface rights until expiry of the agreement in August 22, 2008. Following this date VG Gold Corp. will have to either purchase the surface rights or secure an agreement with the City before continuing with the project. When this is undertaken the risk and liability of the acid generating ERG tailings and abandoned tailings pond system should be avoided. Since MNDM has in other instances classified the holder of the mining rights as being the responsible party for surface tailings there is an element of risk of ownership to the holder and developer of the mineral rights. It would be prudent for VG Gold Corp. to consult with MNDM to ensure that the ERG environmental liabilities are in no way 10.3

assigned to the holder of the mineral rights or the developers of the Davidson Tisdale Mine. 10.2.2 Permitting It is necessary to initiate discussions with government agencies as early as is reasonable in the project planning to begin the familiarization and review process. In Ontario the first step is the Interministerial meeting at which time the project plans are presented to the involved regulatory agencies. An Interministerial meeting was held for both the Davidson Tisdale and Fuller projects in January 2005 in which all government agencies were informed of development plans at the Davidson Tisdale project. The environmental approval and permitting process under the Ontario Environmental Protection Act and the Ontario Water Resources Act is the critical path in obtaining permits for the operation of the Davidson Tisdale project. These permits are obtained from the Ontario Ministry of the Environment (MOE). In November 2006 Gartner Lee Limited submitted an application for a temporary permit to take water for the purpose of dewatering the Davidson Tisdale Mine for exploration purposes. On March 9, 2007 this application was approved for a period of one year expiring on March 9, 2008. The period of this permit to take water will have to be extended to allow dewatering during mine development and production stages. In February 2007 a preliminary application for industrial wastewater certificate of approval was submitted to the MOE. In July the application was reviewed and returned pending the finalization/negotiation of effluent discharge criteria that would comply with MOE policy requirements not to further degrade the receiver that is being affected by discharge from the ERG tailings area. A revised effluent limit proposal and monitoring plan was submitted to MOE in August 2007. VG Gold has since received an additional request for information and are presently involved in replying to the request for the purpose of establishing effluent limits that are mutually agreeable to both the MOE and VG Gold Corp. Air & Noise Certificates of Approval are required from the MOE under the Environmental Protection Act (EPA) for facilities that release emissions into the natural environment, other than into water. Section 9 of the EPA requires equipment, structures or processes that may discharge a contaminant to the atmosphere to be approved before construction, alteration, extension or replacement of the equipment. Approval is also required for the ongoing operation of any equipment that may discharge a contaminant to the atmosphere. These approvals are currently in progress. 10.4

The Ontario Mining Act, administered by the Ontario Ministry of Northern Development and Mines (MNDM) requires that the company submit a certified Closure Plan along with adequate financial assurance to complete closure activities to legislated standards. According to legislation, certified Closure Plans are filed (approved) within 45 days of submission. However, plans judged to be incomplete are returned to the Company and must be resubmitted, subject to the standard timelines of 45 days, upon completion of the revisions. No mining may proceed without receipt of notice that the submitted Closure Plan has been filed. VG Gold Corp. is the holder of an approved closure plan for advanced exploration for a proposed open pit with an estimated capacity of 10,000 tons of ore and 5,000 tonnes of development waste rock. This closure plan was submitted on August 27, 2002 and includes a currently credited financial assurance of approximately $48,000. Following discussions with MNDM personnel VG Gold Corp. has been informed that this closure plan can be activated following submission of a letter of intention by the company. This Closure plan allows the company to begin mining. However, before this is possible the Certificate of Approval must first be obtained to allow discharge of the water from the necessary dewatering operations. On June 11, 2007 a Certified Mine Production Closure Plan was submitted to the Ministry of Northern Development and Mines. This closure plan was returned as it was submitted prior to the holding of a public meeting as is required by the Mining Act. Before being returned, the Closure Plan was reviewed by Timmins MNDM Mine Development Coordinators and a review checklist issued on July 13, 2007 that outlined areas to be upgraded/clarified in the document. This closure plan is currently being revised to comply with MNDM requirements. If the decision is made to truck the mine ore on a more direct route, this would involve substantial road upgrading and possibly road construction to provide a short link to existing roads. This work will require Ministry of Natural Resources (MNR) approval under the Lakes and Rivers Improvement Act for the construction of a small bridge over the ERG Tailings outlet spillway and additional approval for construction of the roadway required to link mine access to existing roadways. Although it is not expected, any potential for fish habitat alteration or destruction from the Davidson Tisdale Mine will be assessed by the Department of Fisheries and Oceans under provisions of the Federal Fisheries Act. Since the property is located within the boundaries of the city of Timmins the city noise bylaw will apply to mining activities such as drilling, blasting, crushing and hauling. Since the mine is located more than two kilometres from residential areas, noise is not expected to be an issue although pit blasting may become an issue if pit blasts are initiated under low-heavy cloud conditions. 10.5

Any building construction on site will require a Building Permit issued by the City of Timmins. Since the mine currently holds an approved Advanced Exploration Closure Plan, the issuance of building permits by the city of Timmins should not be impeded. We originally anticipated that the permitting process would take three to four months; however, this process has been extended due to availability and demand on the reviewers and the complexity of issues that arose from the reviews. At this date we anticipate that the permitting process may take another three to six months before the Davidson Tisdale Mine is fully permitted. 10.3 REHABILITATION AND CLOSURE Financial assurance will have to be submitted with the Closure Plan to cover the costs of securing the planned mine development, monitoring and rehabilitating the mine site, and long term post closure environmental monitoring. Financial assurance will likely be in the form of a liquid security (cash or letter of credit). Current estimates indicate that the updated Davidson Tisdale Closure Plan will require an approximate addition of two hundred and fifty thousand dollars in financial assurance to secure the mine property closure costs on the completion of mining operations. The objectives of the mine site rehabilitation and closure are to return the land to compatibility with surrounding land uses. Rehabilitation is anticipated to be carried out progressively following an adaptive management approach. Since the planned underground mining methods will employ backfill, the likelihood of ground subsidence due to previous mining is minimal. Plans also include an open pit that will be developed in the vicinity of number one shaft. The approved advanced exploration closure plan calls for the pit to be developed to a depth of approximately five metres. Following favourable development results there is the possibility that the pit may be developed deeper. If the pit were developed as deep as the first mine level (26 metres) the pit workings would eliminate the necessity to evaluate crown pillar stability issues associated with the mine workings above the first level. When mining is completed the pit will flood to current water levels which will only allow the uppermost benches to be exposed. Rehabilitation activities of the final pit crest will require securing the safety issues by one of a combination of the following methods; fencing, berming, sloping, or backfilling. Other rehabilitation measures required at the mine will be installation of concrete shaft caps on existing openings, backfilling of the mine portal with waste rock, removal of buildings and infrastructure, levelling of the concrete structures and foundations that currently exist on the site and general site revegetation. All indications from existing mine rock and historic tailings exposure point to the absence of potential acid generating material. No acid drainage management costs are expected at the project. 10.6

10.4 WASTE AND WATER MANAGEMENT The Closure Plan will require assessment for chemical characterization and acid base accounting of both the ore and waste rock. The ore will be shipped offsite for processing. Therefore, storage and management of tailings will not be an issue. Waste rock stockpiles on site will have to be covered with overburden and vegetated. Drainage from the rehabilitated waste rock piles will have to be monitored/managed to ensure acceptable water quality. No landfills will be established on site. All mine garbage will be hauled offsite for disposal at licensed facilities. Since water management will be a key component of operations and closure, careful consideration in the design of the handling/treatment will be required. Proposed water management systems will form the basis of the necessary approval instruments. Waste assimilation challenges are being presented by the existing contaminated conditions of the head waters due to overflow from the ERG tailings area and the water management policies of the MOE. Waste load allocation considerations may also be an issue due to proposed discharges to downstream Bell Creek. 10.5 TAILINGS All of the ore produced will be hauled offsite to a custom mill. Unless the Closure Plan and the Certificate of Approval of the custom mill presently specify milling from the Davidson Tisdale project, amendments to these approval instruments to include milling of this ore will be required. During the 1917-1920 period a small two stamp mill operated on the site and the gold concentrates were extracted by a mercury amalgam process with the tailings stored on site. Approximately 10,000 tonnes of ore were processed. The tailings were removed from the site for reprocessing by Pamour Porcupine Mines. An examination of the former tailings site revealed only a skim of residual tailings remains at the site. Two samples were taken to analyze the material for mercury content. Results show that mercury content in the samples averaged 10.0 parts per million (ppm), which equates to the Ministry of the Environment limit of the soil remediation criteria for industrial uses. Since the number is not higher than the Ministry criteria we conclude that further cleanup requirements are not likely. The sampling did indicate that arsenic values averaged 158 ppm which compares with a 50 ppm Ministry criteria. These values reflect the possibility of an arsenic presence in the ore. However, the arsenic within these samples does not have an effect on area drainages since water quality samples consistently show arsenic concentrations below analytical detection limits. 10.7

10.6 INFRASTRUCTURE Given the past production history and proximity to a population centre access to the site is readily available. The mine is accessed from the Highway 101 (Government Road) in South Porcupine by a gravel road that extends from Crawford Street, a distance of approximately three kilometres. Although previous operations used electric power from the Ontario grid the distribution facilities have since been removed from the property. There are no electrical transformers on site. Previous transformers may have contained PCB s but to our knowledge no testing was ever performed. Site observations have failed to identify any sign of previous oil spills. To ensure that the site is devoid of PCB contamination a comprehensive inspection and possible sampling program is required. Current mine plans are calling for internal generation of power using diesel powered generators. 10.8

11.1 Project Scope: 11.0 MECHANIZED CUT & FILL (MCF) MINING BUDGET The project budget consists of capital costs to procure and construct the surface plant, dewatering and rehabilitation of the underground workings, extension of the main ramp to the 3100 m elevation and the mining and milling of the resources as outlined in table 9.1. Mining Cost Summary - Table 11.1 Activity LOM Costs $/Tonne VG Gold & Contractor Overheads $10,477,000 $28.00 Pre-Production Capital $ 7,699,000 $20.58 Waste & Ore Mining $ 13,236,000 $35.38 Trucking $ 898,000 $ 2.40 Milling $10,288,000 $27.50 Total $42,598,000 $113.86 A complete surface plant is required to support this mining project. This will include large cost items such as a mine dry and office complex, surface shop, surface electrical distribution, generator set, and backfill plant. For the purpose of budgeting for this phase of the Davidson Tisdale project, the lease purchase and operation of an 800 KVA generator has been factored into the economic model. This approach was based on the potential delays in the startup schedule that constructing a pole line would incur, and that the probable recourse to make up this lost time would be to rent or purchase a generator to move the plant construction and mine dewatering ahead. Besides analyzing the capital cost and operating cost comparisons between hydro versus generated power, the impact on the closure bond required to remove the pole line was also considered. The plant complex will consist of pre-engineered and or prefabricated structures that meet local building codes and will be what is considered as standard fare for a mining project of this size. The one structure that will require lead time to design, fabricate and construct is the backfill plant. This plant will be a closed structure accessible through a control door by a front end loader. The typical arrangement is to have two tanks, complete with agitators, so that while one tank is dumping to the underground, the second is being filled by the loader to maintain a continuous flow of fill. The capacity will be in the order of 100 tonnes per hour. The base model for this plant would be the former Detour Lake Mine which was a 2900 tonne/day MCF operation using hydraulically placed alluvial fill. 11.2 Mine Dewatering: Dewatering via the ramp would be a proven method for this activity. The author has incorporated the use of the inclined shaft (Horseshoe Shaft) as the escape way and a primary ventilation route for this project. The option of dewatering via the shaft would be evaluated once the shaft cover is removed. In the long term, the shaft will be utilized as the shortest route for permanent mine dewatering, shortest route for electrical distribution and will play a key role in meeting operating and regulatory standards. 11. 1

During the ramp dewatering, safety bays will be excavated every 30 meters down the ramp wall. These excavations will fulfill regulatory clearances that will allow for the use of larger trucks for mine production. During the dewatering phase, the ramp profile will also be measured and slashes taken where required, ensuring clearances for low profile 26 ton trucks. Rehabilitation of the ramp would consist of check scaling and installation of additional bolts as needed, road bed upgrading and replacement of air and water services. Utilization of the Horseshoe shaft for the routing of services and cable will save several thousand feet of primary pipe and cable. The budget for labour and materials for dewatering and rehabilitating the ramp and shaft is set at $355,000 combined. 11.3 MCF Mining: The mining crew would consist of 8 men per shift of which 3 will be seasoned production miners. The remaining will consist of a 2 man backfill crew and a 3 man haulage crew. Assuming a 3 shift rotation, the total crew would approach 40 when counting supervision, maintenance and technical staff. The project costs have been calculated using a mining contractor as the primary source of equipment and manpower. VG Gold will have their own project managers, engineering and geology departments on site. The production costs have contract labour, materials and underground mining equipment rental rates included. Total equipment rental charges approach $3 million over the two year project. No end of project buyout has been factored into the cash flow model. This option or the upfront purchase of the production equipment by VG Gold would inevitably be evaluated in a future detailed study. A contractor s fee on labour in the amount to 25 % has also been built into the mining costs. This results in an additional labour cost of $1.74 million over the two years. The mining schedule will begin with the advancing of the current ramp bottom another 300 metres from the 3150 elevation to the 3100 level. This capital expenditure will allow for the extraction of the 3120 stope block containing 61,800 tonnes. The geometry of this block may allow bulk mining of this zone but for the purpose of this study the author has assumed MCF costs. The productivity advantage of using the MCF method in this ore zone comes from the ability to excavate wide spans using conventional ground support. The author has studied the size of openings created during the 1925 exploration campaign and also the photographs taken in the mid 1980 s by Getty Resources of these same openings. The wide spans of these old openings combined with the lack of any serious ground falls leads the author to believe that this deposit is a good candidate for wide span MCF mining. Conventional ground support for this method includes the incorporation of post pillars or rib pillars into the excavation design along with the standard mechanical support systems. In addition to these methods, the use of cable bolt pillars developed at the Detour Lake Mine during the early 1990 s, can be incorporated into the stope limits in order to minimize the loss of gold which may result with the use of post or rib pillars. 11. 2

The 3150 stope block contains 203,000 tonnes over a vertical drop of 50 metres. This equates to 4060 tonnes per vertical metre. Using a 4 metre mining height will result in an average 16,240 tonne volume for each mining cut. The actual daily production will have to be 650 tonnes per day to average out to 500 tonnes per day when down time for backfilling is factored in. This would mean that an average breast width of 15 metres will have to be cycled per day to achieve the 500 tonne average. The study assumes only one lift is active at a time but the ramp s location through the middle of the zone (figure 9.4) will in most cases allow for two active faces on each lift. The equipment required and included in the equipment rental budget is contained in the following table. Unit # Units Ownership Toyota Pickup 2 VG Gold 2 Electric Hydraulic Jumbo 1 Contractor Electric Hydraulic Bolter 1 Contractor 6 yd. Scooptram 1 Contractor 8 yd. Scooptram 1 Contractor 426 Haulage Trucks 2 Contractor Scissor Lift 1 Contractor Toyota Pickup 1 Contractor Service Tractors/Man carrier 2 Contractor 11.4 Backfilling: Sand and gravel businesses are located due west of the Davidson Tisdale site and are accessible via the local highway system. A local contractor was contacted and supplied budget numbers to screen pit run sand to minus 10 mm in size. The sand will need to have a low clay content to minimize the re-handle of slimes once sent underground and to ensure a high percolation rate for the water. The use of alluvial backfill allows immediate access to the next stoping cycle due to the high drainage rate of the sand fill. For this project two 150 hp pumps have been budgeted in order to handle the increased water flow during backfilling. These pumps will handle 500 USG per minute at a 150 metre head. One pump will handle the mine drainage and daily process water while the second will act as a backup and fill in during the backfilling cycle. Mining on sand fill causes minimal fill dilution to the ore. Due to the low traction characteristics of sand fill, the operators typically leave a 60 cm. bed of blast rock covering the sand during the breasting cycle. Once the lift is completed part of the prep work for filling is to scrape up this 60 cm bed and haul to surface. 11.4 Mine Services: This line item includes the VG Gold and Contractor s fixed labour costs such as supervision, maintenance and tech support staff. Overheads such as propane and diesel fuel to operate the winter ventilation system and site generator are also included. 11. 3

11.5 Trucking: The closest custom milling facility is 10 to 12 kms. via the current local road system. There is a remnant of a more direct cross country route which would bring this haul distance down to approximately 3.5 kms. This route avoids hauling through the residential road system. The requirements to upgrade this route should be evaluated. 11.6 Cash Flow Model: For the purpose of this study gold price of $700 CDN has been used to establish the revenue stream. A mill recovery of 95 % provides the recovered ounces figure. The cash flow model does not deal with the tax situation nor has there been an inflation factor added to the costs. Table 11.2 breaks down the expenses and revenues by quarter through 2008 and 2010. The follow chart illustrates each activities contribution to the overall project costs. Table 11.2 VG GOLD CORP - DAVIDSON TISDALE PROJECT PRODUCTION COST DISTRIBUTION BY PERCENTAGE MILLING 25% CAPITAL 8% PRODUCTION WAGES 16% TRUCKING 2% CONTRACTOR SUPERVISION 10% VEDRON SUPERVISION 7% EQUIPMENT MAINTENANCE (labour,parts,&fuel) 13% CONSUMABLES 5% PROPANE 2% POWER (fuel only) 5% EQUIP. RENTALS 7% 11. 4

Table 11.3 VG GOLD Corp. DAVIDSON TISDALE PROJECT 2007 to 2010 CASH FLOW FORECAST CDN$ in (000's) CAPITAL & PRE-PRODUCTION COSTS UNITS TOTAL TOTAL TOTAL TOTAL PROJECT $ PER TONNE 2007 2008 2009 2010 TOTALS Closure Bond $0.74 $275 $275 Pre- Eng/geol - Mine $0.40 $150 $150 Pre - Engineer -Electrical $0.08 $30 $30 Site Prep. $0.06 $21 $21 Mine Ops. Office $0.08 $30 $30 Eng/Geol Office & Equipment $0.13 $50 $50 Mine Dry $0.53 $200 $200 Compressors + Shop Building $0.40 $150 $150 Settling Ponds $0.13 $50 $50 Pump House & Pipe Line $0.02 $8 $8 Wells and Holding Tanks $0.20 $75 $75 Mine Dewatering & Mine Rehab $0.75 $280 $280 Horseshoe Shaft Rehab $0.20 $75 $75 Surface Fans $0.17 $65 $65 Propane Farm $0.03 $10 $10 Fuel Tank $0.03 $10 $10 Backfill Plant $4.01 $1,500 $1,500 Surface Loader $0.47 $175 $175 U/G Electrical $0.60 $225 $225 U/G Pumps $0.23 $85 $85 800 KVA Gen Set $0.87 $243 $81 $324 Toyotas $0.19 $70 $70 PRE- PRODUCTION DEVELOPMENT $10.27 $863 $2,139 $839 $3,841 COSTS/ORE TONNE $20.58 CUMULATIVE CAPITAL COSTS $275 $4,639 $6,860 $7,699 $7,699 PRODUCTION SCHEDULE and GRADE UNITS TOTAL TOTAL TOTAL TOTAL PROJECT TONNES 2007 2008 2009 2010 TOTALS STOPE TONNES TO SURFACE 180,608 193,502 374,110 STOPE GRADE CONTAINED OUNCES 46,506 35,747 82,253 MILLING SCHEDULE UNITS TOTAL TOTAL TOTAL TOTAL PROJECT 2007 2008 2009 2010 TOTALS MILLING TONNES 180,608 193,502 374,110 AVERAGE HEAD GRADE 0.220 MILL RECOVERY AT 95.0% RECOVERED GRADE 0.209 RECOVERED OUNCES OZ. 44,181 33,873 78,054 REVENUE UNITS TOTAL TOTAL TOTAL TOTAL PROJECT 2007 2008 2009 2010 TOTALS CDN BUDGETED CANADIAN $ GOLD PRICE $700.00 $30,927 $23,711 $54,638 PRODUCTION & MILLING COSTS UNITS TOTAL TOTAL TOTAL TOTAL PROJECT $ PER TON 2007 2008 2009 2010 TOTALS MINE SERVICES $28.00 $5,058 $5,419 $10,477 PRODUCTION MINING COSTS $35.38 $6,397 $6,839 $13,236 TRUCKING COSTS $2.40 $433 $464 $898 MILLING COSTS $27.50 $4,967 $5,321 $10,288 TOTAL PRODUCTION COSTS/ORE TON $93.28 $16,855 $18,044 $34,899 Project NPV CUMULATIVE CASH FLOW TOTAL TOTAL TOTAL TOTAL @ 2007 2008 2009 2010 6% CASH FLOW AFTER CAPEX -$275,000 -$4,639 $7,212 $12,040 $11,204 11. 5

12.0 CONCLUSIONS The concept of bulk mining the whole mineralized structure as opposed to the mining of narrow high grade trends has economic merit. The historic and current descriptions used to describe this deposit contain phrases such as: small high grade pockets, en echelon quartz vein systems, erratic coarse gold occurrences and quartz vein blowouts, all of which suggest that selective mining of these locations will be small scale, high cost and ultimately result in ounces being left behind. The use of the MCF mining method along with alluvial fill, will provide high productivity rates and also permits the recovery of all the various types of gold occurrences mentioned above. It also allows for selective mining when required, which will have a positive impact on the final grade and ounces recovered. The method will require a small core of 9 to 12 experienced miners distributed over three shifts, which in today s labour market is a realistic manpower target. The MCF concept hinges on the assumption that the ground conditions at the Davidson Tisdale site are such that wide span stoping can be done safely with the incorporation of standard ground control and ground monitoring systems. The author has concluded that there is a high probability that this will be the case based on the review of historic data combined with discussions with personnel familiar with the Getty Resources exploration program of the 1980 s. On the cost forecast side, the backfill cost used, including both plant construction and backfill materials, are budget numbers procured from local players. Firming up these numbers would play a major role in the decision process when it comes to evaluating the economics of rerouting roads and obtaining permits by the operator in order to obtain its own source of fill material. Section 13 contains recommendations to clarify the major assumptions, both technical and economic, which were used for this study. These recommendations will increase the degree of certainty that the proposed mining method is technically doable from the ground stability standpoint and will firm up the availability and cost of the alluvial fill material that is needed to achieve the production rates used in the economic assessment. 12.1

13.0 RECOMMENDATIONS 13.1 Engineering 1) Resources should be put towards compiling rock quality data so that a Rock Mass Reading (RMR) can be calculated for the ore zone. This calculation will produce an empirical number to classify the quality and strength of the rock mass unit containing the resource. From this study, a maximum stope span or width can be designed. The RMR calculation will also aid in the initial design of ground monitoring instrumentation and ground control systems. This base line data will provide a clearer understanding of whether spans of 15 metres are attainable and what ground control system is required to sustain these spans. The maximum safe working span will play a key role in mining productivities and resource recovery. Once mining is underway and as more physical data and observations are gathered the stope span parameters and or ground control system can be modified. 2) Further research into the sizing and construction costs of the backfill plant is warranted. A plant of this type was in operation for over 10 years at the former Detour Lake Mine of Placer Dome Inc. Identifying the designers and builders of this plant, assuming they are still around, would advance this part of the project ahead and firm up the lead time required for fabrication and the construction costs. 13.2 Backfill Material : Several commercial sources of alluvial fill exist along hwy 655, a distance of roughly 12 kms. via the public road system. The presence of fill material on the Davidson Tisdale lease or in the direction of the mill facility should be investigated. Depending on the location, permitting for a sand and aggregate pit is not as onerous as a mining permit. The advantage of having your own gravel pit would be that you would only be exposed to the $0.25/tonne royalty and the screening and haulage charges. For this phase of the project the estimated volume of sand fill needed would be in the range of plus 200,000 tonnes. 13.3 Infrastructure : A review of the advantages of re-establishing the cross country route to the proposed custom mill and or to the commercial gravel pits on Hwy 655 is warranted. Close to $1.3 million is budgeted for ore and fill haulage, cutting the haul distance from 12 kms to 4 kms will have a significant impact. Since these were previously established routes, the permitting and upgrading may be justified when you considering that off road equipment could then be used and that load restrictions may not apply to these private roads. 13. 1

14.0 REFERENCES Ontario Government Assessment Files Sections 4 through 7 References de l Étoile, R., Geostat Systems International Inc. on geostatistical study of the Davidson-Tisdale Gold Deposit of Getty Canadian Metals Limited, 1985 George, P.T., Report on Property Evaluation Davidson-Tisdale Mines Limited, Tisdale Township Porcupine Mining Division Ontario; NTS 42 A/11 for Getty Canadian Metals, 1983: Guy, K.W., Exploration 1986 to June 1987 for Getty Resources Limited, 1987. Guy, K.W., Report on a Surface Diamond Drill Program for Getty Resources Limited, Tisdale Project, Timmins, Ontario May 1987. Guy, K.W., Report on a Surface Diamond Drill Program for Getty Resources Limited, Tisdale Project, Timmins, Ontario, January 1987. Ings, D., Hunt, D., Sketchley, D., PLACER DOME CANADA LIMITED Report on Timmins Generative project 457E Davidson Tisdale Property Evaluation Resource Estimation, Tisdale Township, Ontario N.T.S. 42A/6, volumes I, II, III, IV, 1994. Kita, J., 1985 Summary Report for the Getty-Davidson Tisdale Joint Venture, Tisdale Project, Timmins, Ontario; OM84-5-JV-337, 1986 Kita, J., OMEP Report for Period March 7 to July 7, 1986 for the Getty-Davidson Tisdale Joint Venture, Tisdale Project, Timmins, Ontario; OM86-5-C-006, 1987. Lafleur, P.J., Geostat Systems International Inc. Davidson-Tisdale Gold Property, Timmins, Ontario, Technical Report for Northcott Gold, 2003 Patterson, J.M., Report on Gold Property Tisdale Township Timmins Camp Ontario, a review and synopsis of previous exploration activity for Davidson Tisdale Mines Limited, 1999. Pitcher, C.G., Report on site progress report for the period June 1- November 15, 1985 for Getty- Davidson Tisdale Joint Venture, Tisdale Project, 1985 Ramsay, J., OMEP Report for Period May 26, 1987 to March 31, 1988, for Getty Resources Limited for the Getty-Davidson Tisdale Joint Venture, Tisdale Project, Timmins, Ontario; OM 87-5- L-098, 1988. 14.1

Rogers, D.S., CIM Report on Diamond Drilling as an aid in ore definition at the Dome Mine, for presentation at the 83 rd Annual General Meeting of the C.I.M.M., Calgary - May 1981 Titaro, D., Getty Mines Limited Report on geological ore reserve estimates of the Getty-Davidson Tisdale Joint Venture, Tisdale Project, Timmins, Ontario, 1985 Tully, J., Report on Profitability of Extracting Main and S Zone Reserves,1987 1984-1986: Various quarterly reports for Period 1984 to 1986 for Tisdale Project: by P.T. George. 1984-1987: ERMES (Earth Resources and Minerals Exploration Ontario Web Site - Ministry of Northern Development and Mines), Getty Resources Limited, various drill logs. 1986-1987: Various monthly reports for May 1986 to December 1987 for Getty-Davidson Tisdale Joint Venture, Tisdale Project: by J. Ramsay. 1986-1987: Various monthly reports on Exploration on the Tisdale Project for October Report on summarizes the results of our recent evaluation of the Getty-Davidson Tisdale Joint Venture, property situated in Tisdale Township, Ontario, Derry,Michener, Booth & Wahl, 1985 Section 10 References David F. Schultz, P. Eng. Mining Engineer, August 2002, Amendment to the 1995 Closure Plan for the Advanced Exploration Open Pit Project Davidson Mine, Northcott Gold Inc. Gartner Lee Limited, November 2006, Permit-To-Take-Water Report Davidson Tisdale Mine, Vedron Gold Inc. BZ Environmental Consulting, December 2006 Timmins Area Mines Background Environmental Study, Vedron Gold Inc. B. H. Martin Consultants Ltd., February 2007, Application for Industrial Wastewater Certificate of Approval Supporting Information, Vedron Gold Inc. Davidson Tisdale Mine, B. H. Martin Consultants Ltd., August 2007, Assimilation Studies Supporting the Establishment of Discharge Limits, VG Gold Corp. Davidson Tisdale Mine. Ontario Ministry of the Environment, Appendix: Guidelines for Use at Contaminated Sites in Ontario (revised September 1998), 14.2

15. APPENDIX A 15.1

15.0.1 Certificate for Peter Bevan, P. Eng As a co-author of this report entitled Preliminary Economic Assessment for the Davidson Tisdale Project, I, Peter Bevan do here by certify that: 1. I am an independent consulting mining geologist, and carried out this assignment for, VG Gold Corp., Suite 520, 65 Queen St. West, Toronto, Ontario M5H 2M5, tel. (416) 368-0099, fax (416) 368-1539. 2. I hold the following academic qualifications: B.Sc. Mining Geology and Associate ship from the Royal School of Mines in London, England in 1960. 3. I am a registered Professional Engineer in the Province of Ontario since 1973 with specialization in development and production. I am a member of: (a) (b) The Canadian Institute of Mining, Metallurgy and Petroleum (Life Member) The Prospectors and Developers Association of Canada 4. I have worked as a geologist in the minerals industry for 47 years since my graduation from university, the last 25 years as a consultant. 5. I am responsible for the preparation of in part or whole of Section 9 of this report; 6. I have had no prior involvement with the properties that are the subject of the Technical Report, in the estimation of resources in 2006-07. 7. I am not aware of any material fact, or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading. 8. I am independent of VG Gold Corp. (the issuer) applying all the tests in section 1.4 of National Instrument 43-101. 9. I consent to the filing of the report with any Canadian stock exchange or securities regulatory authority, and any publication by them of the report. Dated this 1 st day of June, 2007. Peter Bevan Peter Bevan P. Eng 15.2

15.0.2 Certificate for Ronald Moran, P. Eng As a co-author of portions of this report titled Preliminary Economic Assessment for the Davidson Tisdale Project, I, Ron Moran, do certify that: 1. I am principal owner of Vetrin Mine Planners and carried out this assignment for: VG Gold Corp. Suite 520, 65 Queen St. West, Toronto, Ontario M5H 2M5. tel. (416) 368-0099 fax. (416) 368-1539 2. I hold the following academic qualifications: B.Sc. Mine Engineering, Michigan Technological University, 1980; 3. I am a Professional Engineer registered with the Professional Engineers for the Province of Ontario (registration number 90243288); 4. I have worked in the minerals industry for over 25 years; 5. I am responsible for the preparation in part or whole of Sections 1.0,2.0,3.0,8.0,11.0, 12.0 13.0,14.0 & 15.0; 6. I do by reason of education, experience and professional registration, fulfill the requirements of a Qualified Person as defined in NI 43-101. My work experience includes over 25 years as a mine engineer and planner in the base metals and gold sector of the industry and most recently as an independent consultant. 7. I am independent of the parties involved in the transaction for which this report is required, as defined in Section a.4 of NI- 43 101; 8. I have had no prior involvement with the mineral properties in question; 9. I have read NI 43-101 and portions of this report for which I am responsible and which have been prepared in compliance 10. As of the date of this 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 this report not misleading; Dated this 1 st day of June, 2007. Ronald Moran Ronald Moran, P. Eng. 15.3

15.0.3 Certificate J. R. Doran, P. Eng. As a co-author of portions of this report titled Preliminary Economic Assessment for the Davidson Tisdale Project, I, J.R.Doran, do certify that: 1. I am a Senior Mining Engineer with B. H. Martin Consultants Ltd., and carried out this assignment for VG Gold Corp., Suite 520, 65 Queen St. West, Toronto, On M5H 2M5, tel. (416) 368-0099, fax (416) 368-1539; 2. This certificate applies to the Permitting, Social Consultation & Environmental Compliance sections of the technical report titled Preliminary Economic Assessment Davidson Tisdale Project prepared for Vetrin 3. I hold the following academic qualifications; B.S. Mining Engineering from South Dakota School of Mines & Technology, and B.S. Engineering Administration Michigan Technological University. 4. I am a Professional Engineer registered with the Professional Engineers of Ontario (registration number 11936010); 5. I have worked in the mineral industry for more than thirty-five years; 6. I am responsible for the preparation of the section 10, titled Permitting, Social Consultation and Environmental Compliance of this report; 7. I have visited the Davidson Tisdale Project Site; 8. I am independent of the parties involved in the transaction for which this report is required, 9. I have had no prior involvement with the mineral property or the issuer. 10. I have read NI 43-101 and portions of this report for which I am responsible and which have been prepared in compliance with the instrument; 11. As of the date of this certificate, I am not aware of any material fact, or change in reported information, in connection with the subject property, not reported or considered by me, the omission of which makes this report misleading. 12. I consent to the filing of the report with any Canadian stock exchange or securities regulatory authority, and any publication by them of the report. Dated this 31 st day of May, 2007. J.R. Doran J.R. Doran, P, Eng. 15.4

15.0.5 Certificate of Kenneth Guy, P. Geo I, Kenneth Guy, PGeo (Ont) of Newmarket, Ontario, Canada, do hereby state that: I reside at 330 Chambers Crescent, Newmarket, Ontario, Canada L3X 1T2, phone (905)898-8092. I am currently self-employed as a consulting geologist. I am a graduate geologist, having graduated from the University of Waterloo, Ontario in 1979, receiving a Hon BSc in Earth Science/geology. I have been practicing geology as a professional geologist since graduation in 1979. I am a member of the A.P.G.O. (0241) and a Fellow of the Geological Association of Canada since 1983. I have read the definition of qualified person set out in National Instrument 43-101 and certify that I fulfill the requirements. This report is based upon my review of relevant previous work not managed or conducted by myself. I have read National Instrument 43-101 and Form 43-101F1, and the Technical report has been prepared in compliance with that instrument and form. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes Technical Report misleading. I am responsible for data contained in sections 4, 5, 6, and 7 of this report. I have not received nor do I expect to receive any interest, direct or indirect in the Tisdale project or any of the properties. I do not own, directly or indirectly, any securities of VG Gold Corp., nor am I an insider of the company. I consent to the use of this report by VG Gold Corp. Dated this 26th day of March 2007 SIGNED and SEALED Kenneth Guy 15.5