Oakley Gold Project

Overview: The Oakley Gold Project is located in Cassia County, Idaho, approximately 15 miles south of the town of Oakley and just north of the Utah/Nevada border. The Oakley Gold Project is a classic epithermal hot spring-type gold exploration target comprised of 107 federal lode mining claims and several Utah State leases (comprising 1,360 acres). The Oakley Gold Project has two primary geologic targets: Blue Hill Creek and Cold Creek. Otis acquired the Blue Hill Creek target in July 2008 (see News Release dated July 16, 2008) and the Cold Creek target in October 2008 (see News Release dated October 9, 2008). To consolidate its land position, Otis has staked a number of federal mining claims between the two targets (which are approximately 3 miles apart) and has applied for several additional Utah state leases to consolidate its land position in the area.

Blue Hill Creek

This target contains a NI 43-101 compliant 235,000 ounce open-ended gold resource: [BHC 43-101]. The project has good potential to achieve growth to 2.0 million ounces through in-fill and step-out drilling along numerous open-ended extensions of the known mineralization, and at depth from high-grade feeders. Otis has the right to acquire a 100% interest in this portion of the property in exchange for the issuance of 6.0 million shares and cash payments of $400,000 spread over five years.

Host Target: Gold mineralization at Blue Hill Creek was originally discovered by Meridian Minerals in the summer of 1985. This mineralization is part of a larger, north-trending, 5-mile-long by 1-mile-wide belt of precious metal occurrences along the western margin of the Albion Range metamorphic core complex. At Blue Hill Creek, alteration and gold mineralization are mainly hosted by capping sinters and Tertiary Salt Lake Formation epiclastic sedimentary and tuffaceous volcanic rocks. Gold-bearing chalcedonic sinters and strongly silicified tuffaceous sedimentary rocks with disseminated pyrite and quartz veining compose the main target in the altered zone. This zone, currently 3,350-feet long and up to 1,000-feet wide, with mineralization open in all directions as well as at depth, contains surface gold values to 0.060 opt. Mineralization appears related to north- and northeast-trending, high-angle structures. Local, post-mineral northeast- trending faulting has displaced and buried mineralized sections to the northwest, some of which have yet to be drill tested.

Historical Drilling: A total of 11,403 feet of drilling spread among 26 reverse circulation (RC) holes have been placed on the property, 17 by Meridian to partially test the Tertiary-hosted target during the 1986 and 1987 field seasons, and an additional nine by Latitude Minerals Corp. to test the Tertiary-hosted target and suspected deeper feeders in Paleozoic carbonate rocks during the 1998 field season. Of the 26 holes drilled, 22 encountered gold mineralization and extensive zones of silicification, with 10 holes bottoming in rock containing in excess of 0.010 opt Au. Some of the best intercepts include 100 feet @ 0.033, 400 feet @ 0.017, 260 feet @ 0.024, and 170 feet @ 0.023 opt Au. These historic drill results confirm the presence of significant thicknesses of bulk-tonnage, epithermal hot spring-type gold mineralization in the target area, as well as the potential for additional mineralization along the open-ended, lateral, and at depth extensions of the deposit.

Target Potential: The possibility of finding additional gold resources and ultimately a mineable deposit at Blue Hill Creek is considered good, specifically in the following five target areas:

1. within the main resource area where the deposit requires further in-fill and extension drilling;
2. within and along the extensions of the north-trending, higher-grade core in the central part of the target where a high-grade feeder(s) may exist;
3. at depth where 6 of 17 previous drill holes bottomed in mineralization and where deeper, high-grade, underground, feeder-style potential remains in Paleozoic carbonate basement rocks, some of which comprise intensely altered gold-bearing jasperoid breccia;
4. in hydrothermal vent breccia; and
5. long the northwest extension of the mineralizing system, where previous drilling has shown that post-mineral faulting has locally down-dropped, displaced, and buried the mineralized section to the northwest toward State Lease Land and the western edge of the claim block.

Cold Creek

The Cold Creek Gold Project, located in Cassia County, Idaho, is approximately 15 miles south of Oakley near the northern Utah-Nevada border. It is an intermediate-stage, epithermal hot spring-type precious metals exploration target with an 85,000 ounce open-ended gold resource. [Cold Creek Summary Report]

Host Target: Gold mineralization at Cold Creek was originally discovered by Meridian Minerals in the summer of 1985. This mineralization is at the northern end of a larger, north-trending, 5-mile-long by 1-mile-wide belt of precious metal occurrences along the western margin of the Albion Range metamorphic core complex. At Cold Creek, alteration and gold mineralization are hosted by Tertiary Salt Lake Formation epiclastic sedimentary and tuffaceous volcanic rocks within a northwest-trending, fault-bounded graben. Pervasive silicification and local strong chalcedonic quartz veining are the primary alteration types present at the main target in the altered zone. This zone, at least 5,000-feet long and up to 2,000-feet wide, contains surface gold values to 0.060 opt. Mineralization appears related to north- and northeast-trending, high-angle structures. The margins of the graben remain unexplored.

Historical Drilling: A total of 9,205 feet in thirty-eight (38) reverse circulation holes was drilled by Meridian during 1986 and 1987 and WestGold in 1988 to partially test the Tertiary-hosted target. Results of this drilling define an 85,000 ounce gold resource that clearly is still open in every direction laterally. Of the thirty-eight (38) holes drilled, fifteen (15) encountered significant intercepts of near-surface gold mineralization greater than 0.020 opt, as well as extensive zones of silicification. Some of the higher-grade and thicker intercepts include 30 feet @ 0.063 (hole CC 87-29), 40 feet @ 0.048 (hole CC 86-14), 150 feet @ 0.020 (hole CC 86-12), and 260 feet @ 0.014 opt Au (hole CC 86-13). These results confirm the presence of mineable thicknesses of near-surface, potentially ore-grade, bulk-tonnage, open-pittable material in the known resource area, as well as the potential for additional mineralization along the open-ended, lateral extensions of the deposit.

Target Potential: The possibility of finding additional Tertiary-hosted resources and ultimately a mineable deposit at Cold Creek is considered good and specifically exists in the following areas:

1. within the main resource area where the deposit requires further in-fill and extension drilling;
2. within and along the extensions of the north- to northeast-trending vein zones in the main mineralized area where higher-grade feeders may exist; and
3. along the northwest extension and margins of the northwest-trending graben containing the mineralization.

Furthermore, additional potential exists for high-grade, feeder-type mineralization, which may be present at depth in Paleozoic carbonate basement rocks underlying the mineralized Tertiary section. Overall, excellent potential still remains at Cold Creek for the discovery of 0.5MM to 1.0MM ounces of open-pittable Tertiary-hosted reserves, as well as for associated higher-grade, underground Tertiary and Paleozoic-rock hosted mineralization.