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 g/T I n c l. 7.8m @ 11.9g/T 11 - 45 3 4 . 7 m @ 1 . 0 7 g/T 11 - 16 9 5 . 0 m @ 0 . 8 2 g/T 11 - 18 4 9 . 8 m @ 0 . 5 2 g/T 11 - 26 5 6 . 0 m @ 0 . 5 9 g/T 11 - 35 4 3 . 0 m @ 1 . 0 4 g/T 11 - 21 3 6 . 7 m @ 1 . 0 1 g/T 11 - 38 2 8 . 0 m @ 0 . 4 3 g/T 11 - 43 6 2 . 9 m @ 1 . 1 0 g/T 11 - 33 3 1 . 0 m @ 1 . 1 3 g/T 11 - 17 3 9 . 9 m @ 0 . 6 4 g/T 11 - 39 6 5 . 7 m @ 0 . 6 1 g/T 11 - 34 3 9 . 2 m @ 1 . 0 5 g/T 11 - 49 1 0 1 . 0 m @ 1 . 0 6 g/T I n c l . 24.7m @ 3.01g/T 11 - 36 6 9 . 0 m @ 1 . 2 7 g/T 11 - 14 6 4 . 0 m @ 0 . 8 5 g/T 11 - 31 1 0 . 3 m @ 1 . 2 4 g / T 11 - 56 4 2 . 0 m @ 1 . 7 3 g/T I n c l. 14.1m @ 4.1g/T 1 1 - 5 7 3 7 . 4 m @ 0 . 7 8 g/T 12 - 50 1 2 . 0 m @ 5 . 4 3 g/T 12 - 52 4 8 . 9 m @ 0 . 9 6 g/T I n c l . 3.5m @ 5.24g/T 11 - 41 4 3 . 7 m @ 1 . 0 8 g/T 12 - 117 3 5 . 0 m @ 0 . 9 4 g/T 12 - 58 3 2 . 4 m @ 1 . 3 9 g/T 12 - 60 3 3 . 0 m @ 1 . 7 0 g/T I n c l . 7.0m @ 4.37g/T 12 - 61 1 7 . 0 m @ 1 . 0 2 g/T 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 High-Grade 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 LARDER-CADILLAC BREAK 1 (888) 749-4621 www.sgxresources.com TSX-V: SXR Cont’d from pg. 28 of a series of extensional high-grade 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 Davidson-T 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 31.5% ownership in 12 mineral claims known as the “David - son-T 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 68.5% of the Davidson-T 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 high-grade 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 68.5% 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 7,300 ounces of gold being mined. The Davidson-T isdale Property is located approximately 5 km along strike from three mines -- Hollinger , McIntyre, Coniarum, which have produced over 31 million ounces of gold. Davidson-T isdale consists of 10 claims totaling 520 acres in T isdale T ownship, the heart of the prolifc T immins Gold Mining Camp. Davidson-T 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 high-grade deep drilling has indicated this deposit is open at depth and has the potential for further bonanza grades. T o date, over 71,000 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 high-grade 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 high-grade gold deposit TIMMINS / MA THESON CAMP Page 28 Cont’d on pg. 29 Cont’d 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 #12-90 encountered three distinct high-grade intersections, cutting 2.7 metres of 7.1 g/tonne as well as 1.5 metres of 10.5 g/tonne and 1.3 me - tres of 8.7 g/tonne. “Drill hole #12-90 is located immediately below and to the east of discovery hole #12-86, which produced a 6.3 metre interval of 68.5 g/tonne. 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 oung-Davidson 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 east-southeast on the north limb of the Edleston fold while the high-grade 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 Cadillac-Larder 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 high-grade gold discovery TIMMINS / MA THESON CAMP