Page 29 ED LES T O N ZO NE S IR O L A ZO NE FO LD A XIS P r os p e c t iv e H o riz o n SH ALL O W SED IMENT C O VER 476950 477000 477050 477100 477150 477200 477250 477300 330 280 230 180 130 80 477350 477400 477450 477500 11 29 6 4 9 m 1 8 2 gT I n c l 78m 119gT 11 45 3 4 7 m 1 0 7 gT 11 16 9 5 0 m 0 8 2 gT 11 18 4 9 8 m 0 5 2 gT 11 26 5 6 0 m 0 5 9 gT 11 35 4 3 0 m 1 0 4 gT 11 21 3 6 7 m 1 0 1 gT 11 38 2 8 0 m 0 4 3 gT 11 43 6 2 9 m 1 1 0 gT 11 33 3 1 0 m 1 1 3 gT 11 17 3 9 9 m 0 6 4 gT 11 39 6 5 7 m 0 6 1 gT 11 34 3 9 2 m 1 0 5 gT 11 49 1 0 1 0 m 1 0 6 gT I n c l 247m 301gT 11 36 6 9 0 m 1 2 7 gT 11 14 6 4 0 m 0 8 5 gT 11 31 1 0 3 m 1 2 4 g T 11 56 4 2 0 m 1 7 3 gT I n c l 141m 41gT 1 1 5 7 3 7 4 m 0 7 8 gT 12 50 1 2 0 m 5 4 3 gT 12 52 4 8 9 m 0 9 6 gT I n c l 35m 524gT 11 41 4 3 7 m 1 0 8 gT 12 117 3 5 0 m 0 9 4 gT 12 58 3 2 4 m 1 3 9 gT 12 60 3 3 0 m 1 7 0 gT I n c l 70m 437gT 12 61 1 7 0 m 1 0 2 gT O p en O p en O p en 12 129 3 3 m 5 7 4 g T 12 129 5 3 5 m 1 4 2 g T 12 130 3 4 8 m 2 0 8 g T 12 127 2 5 0 m 0 4 2 g T 11 37 3 2 4 m 0 6 7 g T 11 42 2 0 9 m 0 7 1 g T 12 51 6 0 m 2 4 g T 12 53 4 0 2 m 1 2 5 g T 12 54 1 3 5 m 1 2 6 g T V er tical Longitudinal Sect ion Looking No r th 0 50 metr es HighGrade HW Zone Main Zone 12 87 5 3 0 m 0 7 1 g T 12 91 2 4 4 m 0 5 2 g T 12 72 2 0 0 m 0 5 4 g T 12 86 6 3 m 6 8 5 g T 12 90 2 7 m 7 1 g T 1 5 m 1 0 5 g T 1 2 1 3 2 4 4 0 m 0 6 3 g T New High Grade Hanging Wall Zone New High Grade Hanging Wall Zone NEW GOLD DISCOVERY NEW GOLD DISCOVERY 500 m Along Strike Open In All Directions Widths up to 100 m Underground and Open Pit Potential TIMMINS SOUTH Edleston Zone ALONG THE WESTERN EXTENSION OF THE LARDERCADILLAC BREAK 1 888 7494621 wwwsgxresourcescom TSXV SXR Contd from pg 28 of a series of extensional highgrade quartz veins within a tuf f unit host acting in contrast to the bounding sheared ultramafc and sediment units along a northern splay of the Porcu pine Fault SGX also holds a position in the DavidsonT isdale deposit and other strategic lands to the west and south of T imm ins near current and past production The T isdale T ownship properties consist of a 315 ownership in 12 mineral claims known as the David sonT isdale Property and a 100 in terest in 15 mineral claims known as the North T isdale Property as well as certain surface rights The remain ing 685 of the DavidsonT isdale Property is owned by Lexam VG Gold Inc San Gold initially acquired the properties from Laurion Mineral Exploration Inc in January 2010 but did not underta ke any exploration or development work on the properties and sold them to SGX Davidson T isdale is a highgrade gold deposit located in the northeast ern part of the City of T imm ins The property is a joint venture of which Lexam VG Gold owns 685 and SGX Resources owns the remainder Davidson T isdale was subject to mi nor production in 1988 by Getty Ca nadian Metals with a total of 7300 ounces of gold being mined The DavidsonT isdale Property is located approximately 5 km along strike from three mines Hollinger McIntyre Coniarum which have produced over 31 million ounces of gold DavidsonT isdale consists of 10 claims totaling 520 acres in T isdale T ownship the heart of the prolifc T immins Gold Mining Camp DavidsonT isdale was discovered in 191 1 and has been explored intermit tently over the years with a strong focus on the historical under ground workings Much of the drilling has been concentr ated on two main ar eas with the deepest hole intersect ing mineralization below 400 metres Previous drilling results have yielded highly encouraging grades over good widths Several shafts have been developed on the property with a decline ramp driv en to a vertical depth of 150 metres Successful highgrade deep drilling has indicated this deposit is open at depth and has the potential for further bonanza grades T o date over 71000 metres has been drilled on this proper ty and it still remains a great tar get for exploration Lexam VG Gold Inc is planning to test the potential at depths and other areas for highgrade gold mineralization In March 2007 an Exploration Report and Resource Estimate T echnical Re port on the T isdale Project was pub lished Davidson T isdale a highgrade gold deposit TIMMINS MA THESON CAMP Page 28 Contd on pg 29 Contd from pg 26 By Gregory Reynolds Mineral resource technical reports for its two key T im mins Mining District projects are expected this year by SGX Resources Inc trading as SXR On Jan 29 Dale Ginn president and CEO of SGX an nounced that drilling has followed up on the new high grade gold discovery located immediately to the south of the Edleston deposit Drill hole 1290 encountered three distinct highgrade intersections cutting 27 metres of 71 gtonne as well as 15 metres of 105 gtonne and 13 me tres of 87 gtonne Drill hole 1290 is located immediately below and to the east of discovery hole 1286 which produced a 63 metre interval of 685 gtonne Additional assay results are also being reported for Edleston Zone drilling that has successfully extended the main body eastward by over 100 metres since November 2012 Drilling programs have now recommenced on the main body of the Edleston Zone with two drills focusing on both infll and extensions A single drill has also comm enced on the T ully gold de posit located 20 kilometres north of T immins he said It is anticipate d that mineral resources technical reports will be prepared this year for the Edleston and T ully de posits the company s major projects On a third project known as Grenfel located west of Kirk land Lake one drill has started work in order to follow up on historical shaft level development and diamond drill ing by previous owners The Sothman land package containing the Edleston de posit is located approximately 60 km by road to the south of T immins It is located between the Y oungDavidson Mine to the east and the Cote Lake deposit to the west This discovery is located in the northwest quadrant of SGX s claim group within the Sothman T ownship and has road access via Pine Street extending south from T immins The main deposit dips modera tely steeply to the south and strikes eastsoutheast on the north limb of the Edleston fold while the highgrade zone appears to lie in a south east axial planar feature Over 75 drill holes have been completed to date along 50 metre spaced sections outlin ing a mineraliz ed zone approximately 100 metres wide and over 700 metres long to a maximum depth of 250 metres while the zone continu es to remain open in all di rections SGX Resources has undertaken an extensive diamond drilling program on the T immins South property in So thman T ownship since September of 201 1 as a follow up to geophysical tar gets with the objective of locating near surface gold deposits The T immins South project is currently focussed on the Edleston Zone located in the northwestern portion of Sothman T ownship The zone has been extended to more than 400 metres along strike and to a depth of more than 200 metres Regionally this property appears to lie along the potential western extension of the CadillacLarder fault zone along which a number of major gold deposits are located The T ully deposit and property is located approximately 25 km to the north of T immin s and has under gone a num ber of phases of exploration by previous owners as well as by SGX in 2010 This deposit is interpreted by SGX geologists to consist SGX looks to new mineral r esour ce r eport after highgrade gold discovery TIMMINS MA THESON CAMP