BA

BA Overview

The BA project is a silver-base metal project located in the "Golden Triangle" area within the Skeena Mining Division of British Columbia The main BA property, is approximately 9,489.42 hectares in size, hosts numerous mineralized showings including the BA occurrence, a significant transitional volcanogenic massive sulphide (VMS) / epithermal hot spring deposit containing silver, lead and zinc. The property is located 30 km northeast of the town of Stewart, B.C. with Highway 37A passing through the northern portion of the property. The BA project also includes the George Copper and Surprise Creek properties which are contiguous to the project.

Mountain Boy Minerals Ltd purchased a 50 % interest in the BA claims from Pinnacle Mines Ltd by committing to an exploration expenditure in 2006 and obtained the other 50 % by issuing stock in 2007. On January 11, 2010, pursuant to a binding letter of intent, the Company granted Great Bear Resources Ltd. ("Great Bear") the option to acquire up to a 70% interest in the BA, Stro, Booze and George Copper properties.

Great Bear can earn the initial 50% interest in the BA and George Copper properties by paying $158,000 for completing core processing and incurring $5,500,000 in exploration expenditures on or before December 31, 2013 as follows:

• $1,000,000 not later than December 31, 2010
• $1,250,000 not later than December 31, 2011
• $1,250,000 not later than December 31, 2012
• $2,000,000 not later than December 31, 2013

Great Bear can earn an additional 20% interest by completing a bankable feasibility study on or before March 2016.

On October 28, 2010, the option and joint venture agreement (the "JV Agreement") with Great Bear for the BA Property was amended. Under the terms of the amendment:

• The Surprise Creek property, located immediately north of the BA Property, is now included under the terms of the JV Agreement.
• Acquisition costs for the Surprise Creek property will be borne entirely by Great Bear, and will be applied against its earn-in requirement towards the BA Property.
• Great Bear now has until December 2015 to complete a bankable feasibility study that will give it the option to acquire an additional 20% interest in the BA Property.
• In addition, Great Bear is now required to fund all costs associated with the BA Property through December 2015.

The BA project hosts numerous types of precious and base metal mineralization. These include vein and shear hosted mineralization, disseminated and stringer micro-vein style mineralization, skarn mineralization, laminated stratabound mineralization and hydrothermal breccia mineralization. The main area of exploration hosts a silver rich volcanogenic massive sulphide (VMS) system that has been drill confirmed for 800 meters of mineralized strike and down dip for 300 meters.

Stratabound mineralization and related breccia zones with copper, zinc, lead and silver mineralization have been found throughout the claims and are the most promising targets on the claim group. The showings generally occur within mixed mudstone (argillite), volcanic tuff and breccia horizons. Sulphides include pyrite and/or pyrrhotite, chalcopyrite, sphalerite and galena. Quartz, chert, jasper, hematite, and barite are common gangue minerals. The sulphides occur as massive to semi-massive, laminar, lenticular, stringers and disseminations. On the project, at least 5 zones of silver-base metal mineralization have been identified. These include the BA, BA North, Wet Willy, Bod and Nelson occurrences.

Drilling in 2010 on the main BA and BA North Zones has identified three styles of mineralization including the following;

1. carbonate + quartz + sulphide barite veining and brecciation within what is believed to be a subvolcanic andesitic intrusion and the surrounding intruded volcaniclastic and mudstone pile.
2. replacement and quartz + sulphide flooding within the matrix of the volcaniclastics.
3. laminated fine grained sulphide within mudstones and siltstones.

Highlights of drilling to date include the following:

DDH	From (m)	To (m)	Width (m)	Agg /t	Pb %	Zn %
2007-BA-1	39.33	97.26	57.93	140.44	1.66	2.51
including	57.62	66.77	9.14	54.57	1.19	4.59
including	76.83	91.16	14.33	414	3.74	2.47
including	76.83	79.88	3.05	1215	1.01	2.26
2007-BA-5	26.51	37.80	12.20	145.3	3.13	2.30
and	43.90	81.10	37.20	140.7	2.63	2.89
2007-BA-15	97.26	126.22	28.96	203.5	2.5	1.0
DDH-2008-42	117.99	183.54	65.55	112.57	0.92	1.51
DDH-2008-51	87.80	118.29	30.49	190.87	1.39	1.80
including	87.80	93.90	6.10	494.99	2.08	2.25
including	100	114.94	14.94	145.99	1.79	2.32
DDH-2008-75	3.96	63.11	59.15	157.96	0.30	0.41
including	20.43	36.59	16.16	198.05	0.13	0.30
including	44.12	50.92	6.80	141.60	0.10	0.52
including	60.06	63.11	3.05	520.4	3.23	0.84
DDH-2008-76	145.73	157.93	12.20	206.88	0.06	0.09
and	171.10	197.56	26.46	219.76	1.73	2.96
DDH-2010-78	10.97	20.2	9.23	87.46	0.56	4.76
DDH-2010-79	0.46	44.5	44.04	53.86	0.51	2.91
including	7.92	14.02	6.10	106.5	0.59	2.10
and	55.41	59.74	4.33	190.77	0.97	5.17
DDH-2010-85	81.38	93.57	12.19	93.51	0.13	1.46
DDH-2010-147	38.71	60.68	21.97	85.64	0.90	2.27
including	50.9	60.78	9.78	140.37	1.63	2.81

Exploration plans for 2011 include further drilling to define the extent of mineralization in the main BA zone.