KOKJAR GOLD SILVER PROPERTY

The Kokjar Property covers an area of 238 square kilometres, encompassing a metamorphosed belt of volcanic and sedimentary rocks. Previous work by Soviet agencies and Cameco Corporation identified a series of high-grade gold and gold-silver-lead-zinc occurrences within the license area. The property is located approximately 300 kilometres east of the Kyrgyz capital, Bishkek and is road accessible. The nearest airport is 50 kilometres to the west at Cholpan Ata, the closest rail access is approximately 150 kilometres to the west at Balykchi. A small capacity power line is within 1.5 kilometres of the southern border of the property. Elevations on the property range from 2200 to 4140 metres ASL.

In 1998 Cameco Corporation acquired the Kokjar license and held it until 2000. During this period, Cameco identified targets which Kola regards as high priority targets; including the Quartz, Conglomerate, Skarn, Stockworks, West Baicorun, and East Baicorun targets. Only two drill holes (total of 215 metres) have been completed on two of the priority targets.

The information reported below has been extracted from historic exploration data and summaries that Kola has been able to acquire. In some cases the historic exploration summaries emphasize the highest assay results from the most significant prospects identified by Soviet and Cameco geologists. Although Kola regards these results as a significant indication of the mineralization potential on the property, the results may be selective and may not be representative of all exploration work completed on the property.

Kola is acquiring more exploration data from the Kokjar project and a detailed compilation of this historic work will be prepared for the upcoming field season.

Based on a preliminary assessment of the historical work on Kokjar, mineralization appears to be spatially associated with intrusive bodies and localized by structures, including thrust and normal faulting. Highlights from Cameco's exploration program included the following results from the four principal mineralization styles observed on the property.

1. Felsic dikes with phyllic alteration. These range in size from 1 to 50 metres in width and from 40 to 1,000 metres in length, the highest reported assay being 2.8 g/t Au.
    
2. Quartz and quartz-sericite veins, banded veins and stockworks. These range in size from 0.15 metres to 10 metres in width and from 100 to 400 metres in length. The highest reported assay being 44.4 g/t Au.
    
3. Pyritized and silicified shear zones in the volcanic, volcaniclastic and sedimentary rocks. The highest reported assay is 190.8 g/t Au and 232.0 g/t Au.
    
4. Fractured, and pervasively pyritized and limonitized rocks of various composition. The highest reported assay is 41.6 g/t Au.

The Quartz Prospect consists of a thick sequence of sediments, intruded by diorite stocks. These sediments are weakly silicified and cut by a shear zone of unconfirmed width and length. One diamond drill hole was completed on the Quartz zone, intersecting a mineralized shear zone. Assay results from the shear zone returned 15.4 g/t Au over 4 metres, including a single sample of this interval assaying 55.1 g/t Au over 1 metre.

A second drill hole was targeted to intersect a silicified, pyritic shear zone at the Conglomerate Prospect and intersected 9 metres assaying 2.3 g/t Au. Significant surface trench channel sample results from the Conglomerate Showing include 2.8 g/t Au over 6 metres, 1.0 g/t Au over 7 metres, 1.3 g/t over 10 metres and 3.2 g/t Au over 2 metres.

Dr. William Tafuri, the Vice President of Exploration for Kola, is a qualified person for the purposes of NI43-101 and was responsible for the preparation of the technical information disclosed in this summary.

Photo Gallery - Kokjar

Click to enlarge each photo

Access road	Drill Hole
Drill Roads	Kokjar Valley
Mineralized Outcrop	Closer View of Mineralized Outcrop