Iliamna

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Target: Intrusive related gold mineralization and porphyry copper – gold deposits are targeted at the Iliamna claim groups, which are comprised of two discrete blocks, one named Bonanza Hills, the second King Tut. The claim blocks are positioned on favorable geological, geochemical and geophysical parameters that indicate the possible presence of such deposits. The claims are located approximately 50 kilometers northeast of the Pebble deposit, a giant, high grade copper –gold – molybdenum porphyry deposit.

Location and Setting: The Iliamna claim groups are approximately 50 kilometers northwest of the town of Point Alsworth, approximately 72 kilometers north of Iliamna, and approximately 259 kilometers southwest of Anchorage.

Agreement or Terms: The Iliamna claim groups are state of Alaska claims, and are subject to production royalty of three percent (3%) of net income and an annual payment of $100/year for the first five years, $220/year for the second five years and $520/year thereafter. Millrock acquired the King Tut property by staking of state claims, and owns the property 100%. The Bonanza Hills property is held by virtue of an option agreement with Liberty Star Uranium and Metals Corp. Millrock has the option to secure a 60% interest in the claims by expending a total of US$3.5 million, and by issuing a total of 1 million shares of Millrock over a four year period. Millrock is the exploration operator. Both claim groups are made up of state mining claims, which require annual rental of $100 per 160 acre claim, and a 10% net proceeds tax on production. The schedule of cash payments and share issues is summarized as follows:

Geology and Mineralization: Late Cretaceous to Paleocene quartz monzonite, diorite, and granite have intruded sedimentary host rocks and locally hornfelsed large areas of the Bonanza Hills. These magmatic intrusions have been dated at approximately 65 million years. An intrusion adjacent to the King Tut claims has been dated at approximately 70 million years, the same age as the intrusion at the Donlin Creek deposit, a 29 million ounce gold deposit owned by NovaGold and Barrick in southwest Alaska. The host rock sediments throughout the region are Cretaceous aged flysch sequences of alternating shales, mudstones and graywackes.

The claims are positioned on magnetic lows adjacent to magnetic and radiometric highs that correspond to the magmatic intrusive rocks. Magnetic lows can indicate large scale host rock alteration and mineralization. Stream sediment anomalies and past placer gold production provide further indications that a mineralized system exists below the sand and gravel overburden cover.

Millrock conducted a brief reconnaissance of the claims in 2007. While no obvious signs of porphyry style mineralization or alteration were observed at Bonanza Hills, vein-style gold mineralization was noted in talus. The significance of the talus source has yet to be determined, but grab samples collected from the veins returned the following high grade results.

Little outcrop is exposed at the King Tut claim block. Ground-based geophysical surveys will be required to evaluate the claims further.

Exploration Program: Millrock plans further geological and geochemical surveys in the 2008 field season to determine the significance of the anomalous conditions. Drilling will be carried out if warranted.

Iliamna Figure 1: Project Map (Enlarge)