Malawi NI 43-101 - December 2011 - Gold Canyon Resources Inc.

Geological reporton theCHAMBE BASIN AREAOFEXCLUSIVE PROSPECTING LICENCEEPL 0325/11MULANJE MASSIFSOUTHERN MALAWIEAST AFRICAtoGold Canyon Resources IncSuite 810,609 Granville St,Vancouver, BC,Canada, V7Y 1G5byP.C. Le Couteur, Ph.D (UBC), P.Eng (BC)President, Micron Geological Ltd.Effective date: December 2, 2011Vancouver, BC

2TABLE OF CONTENTSItempage1 Summary 52 Introduction 63 Reliance on Other Experts 114 Property Description and Location 155 Accessibility, Climate, Local Resources,19Infrastructure, and Physiography6 History 217 Geological Setting and Mineralization 238 Deposit types 349 Exploration 3910 Drilling 4011 Sample Preparation, Analyses and Security 4012 Data Verification 4113 Mineral Processing and Metallurgical Testing 6614 Mineral Resource Estimates 6615 Mineral Reserve Estimates 6616 Mining Methods 6617 Recovery Methods 6618 Project Infrastructure 6619 Market Studies and Contracts 6720 Environmental Studies , Permitting and Social or 67Community Impact21 Capital and Operating Costs 6722 Economic Analysis23 Adjacent Properties 6724 Other Relevant Data and Information 6825 Interpretation and Conclusions 6826 Recommendations 6827 References 71Date and Signature Page 73

3List of FigurespageFig 1 Relationships of companies involved in the Malawi Project 6Fig 2 Location of Malawi 8Fig 3 Map of Malawi 9Fig 4 Map of southern Malawi to show location of the Mulanje Massif 10Fig 5 View of Mulanje Massif 10Fig 6 View of Chambe Basin 12Fig 7 View of Chambe Basin 12Fig 8 Geology of Mulanje Massif showing EPL 0325/11 13Fig 9 Geology of Chambe Basin 14Fig 10 Contour map of soil depth in Chambe Basin 26Fig 11 Chondrite normalized REE distributions of REE deposits 37Fig 12 Location of samples taken by Ishikawa, MINDECO, Le Couteur 38Fig 13 Example of roadside cut sample (CHA-4) 55Fig 14 Photo of plus 0.25 mm fraction of screened soil sample E686956 56Fig 15 Photomicrograph of soil E 686956, crossed polars 57Fig 16 Photomicrograph of soil E 686956, plain light 57Fig 17 XRD scan of sample E686964 59Fig 18 Alkali v silica classification plot for Chambe Basin syenite 60Fig 19 Polished surface of syenite sample E686961 61Fig 20 Sample E686961 stained for potassium (K’spar) 61Fig 21 Photomicrograph of syenite E686961 , crossed polars 63Fig 22 Photomicrograph of syenite E686961 , plain light 63Fig 23 Drill plan proposed by MINDECO for phase 1 exploration 70

4List of tablespageTable 1 Property boundaries 15Table 2 Soil samples collected by J. Ishikawa 27Table 3 Soil samples collected by MINDECO 28Table 4 REE analyses of Ishikawa samples 29Table 5 Total and leached REE in MINDECO samples 30Table 6 Recovery of leachable REE from MINDECO samples 31Table 7 Leachable REE in Ishikawa samples by MINDECO 31Table 8 Samples collected by P. Le Couteur 44Table 9 Reanalysis of 3 Ishikawa samples 45Table 10 Total REE in Le Couteur samples 48Table 11 Leachable REE in Le Couteur samples (method ME-MS04) 49Table 12 Ratio of soil REE to syenite REE 50Table 13 Leachable REE in Le Couteur samples (method ME-MS23) 50Table 14 Comparative analyses by Ishikawa, MINDECO, Le Couteur 51Table 15 Screen size of 2 soils 56Table 16 Composition of Chambe Basin syenite 60Table 17 Energy dispersive analyses of minerals in syenite E686961 62Table 18 Exploration expenditures estimated by MINDECO for phase 1 69List of Appendices (following page 73)Appendix 1 Total REE analyses of soilsAppendix 2 Leachable REE analyses of soilsAppendix 3 X-ray diffraction scans

51 SUMMARYProperty Description Chambe Basin is part of Malawi Exclusive Prospecting Licence 0325/11,a rectangular block about 40 km E-W and 27 km N-S with an area of 1,050 sq km, within whichthe licencee has exclusive rights to prospect for rare earths (“REE”) and bauxite.Location The Property is located in southernmost Malawi (south central East Africa) andcovers the Mulanje Massif. The centre of the Property is at approximately 15˚ 57”S, 35˚ 37”E.Ownership EPL 0325/11 is held in the name of Spring Stone Limited, a private Malawi companythat is a 100% subsidiary of Spring Stone Exploration Inc., a private company registered in BritishColumbia and a 100% subsidiary of Canadian public company Gold Canyon Resources Inc. Theproject is a joint venture between Gold Canyon Resources Inc, and Japan Oil, Gas and MetalsNational Corporation (“JOGMEC”), which provides 67% of funding for Spring Stone ExplorationInc. and consequently has a 67% equity option holding in licence-holder Spring Stone Ltd.Geology A gneissic basement complex of Precambrian to Lower Paleozoic age forms the oldestrocks in the area. This is intruded by a series of partly overlapping, subcircular, mostly syeniticplutons that are part of the Chilwa Alkaline Province, of Upper Jurassic to Lower Cretaceous age.Chambe Basin is an area of low relief covered by thick, bouldery, residual kaolinitic soils in themiddle of one of these syenite intrusions that is surrounded by a circular outer rim of bare syenite.Mineralization A small number of reconnaissance samples of soils collected in 2010 and early2011 from Chambe Basin and analysed for leachable rare earths (“REE”) suggest there ispotential for a bulk REE deposit in these soils.Exploration concept Chambe Basin is being explored for a REE deposit of the “ion adsorption”type. Such deposits are quite important REE producers in China but few have been foundelsewhere. Typically the REE content is low, but a significant part is easily extractable by ionexchange using dilute solutions of common chemicals such as ammonium sulphate. Othercharacteristics include very low U and Th, a large proportion of high value “mid” and “heavy” REE,and they may be mined by relatively inexpensive shallow surface excavations or in situ.Status of exploration The Property licence was acquired on 18 March of 2011, mostly on thebasis of reconnaissance samples by Geological Survey Dept headed by J. Ishikawa in 2010. Anexploration program of systematic short-hole drilling, with some pitting, initial environmentalsampling, and analysis of soils for leachable REE is currently being carried out by Mitsui MineralDevelopment Engineering Co. Ltd (“MINDECO”) under contract to Spring Stone Exploration Inc.,the vehicle for the joint venture between Gold Canyon Resources Inc and JOGMEC.Conclusions and recommendations Only a small number of reconnaissance samples of soilsfrom the Chambe Basin have so far been analyzed, but from review of these and verifyinganalyses the author agrees with the interpretation by J. Ishikawa, JOGMEC and MINDECO thatthere is potential for a REE deposit of the ion adsorption type. A US~$1.1 M program proposed byMINDECO, and accepted by the Malawi Government, is currently under way. While the authorhas had no opportunity to recommend changes to this approved program he endorses it as a welldesignedand thorough first phase plan of exploration of the Chambe Basin for ion-adsorptionREE potential.

62 INTRODUCTION(a) Company for which the technical report is prepared.This report concerning exploration for rare earth elements (“REE”) in the Chambe Basin areaof Malawi, East Africa, was made at the request of A. Levinson, President and Director of GoldCanyon Resources Inc (“Gold Canyon”). Gold Canyon is a public Canadian-based mineralexploration company that trades on the Toronto Stock Exchange (TSX Venture Exchange,symbol GCU), is incorporated under the laws of British Columbia, and has a business address atSuite 810, 609 Granville St, Vancouver, BC, Canada, V7Y 1G5. Some details on Gold Canyonand its exploration activities are available on the company’s website www.goldcanyon.ca .Figure 1. Relationships between companies involved in the Malawi REE project

7Relationships between companies involved in the Malawi project are shown in Figure 1.Chambe Basin lies within Exclusive Prospecting Licence EPL 0325/11 (the “Property”) in theMulanje Mountain area of southern Malawi, also referred to as the Mulanje Massif. This licencewas initially granted in March of 2011 to the Japan Oil, Gas and Metals National Corporation(“JOGMEC”). JOGMEC is a semi-governmental corporation of the Japanese Government, withoffice address 2-10-1, Toranomon Minato-ku, Tokyo, 105-0001, Japan. Subject to a then-existingagreement between Gold Canyon and JOGMEC, at the request of JOGMEC and with the assentof Gold Canyon, the Malawi Government agreed to transfer Licence EPL 0325/11 to SpringStone Limited, a limited private company incorporated in Blantyre, Malawi under the Governmentof Malawi Companies Act on 15 th June 2011 with registration number 11406. The office addressof Spring Stone Limited is c/o Sacranie, Gow and Company Legal Practitioners, Realty House,Churchill Road, PO .Box 5133, Limbe, Malawi. Spring Stone Limited, an indirect wholly-ownedsubsidiary of Gold Canyon, was formed to acquire and maintain the Property and other propertiesin Malawi and to facilitate mineral exploration and development in Malawi.Spring Stone Limited is a wholly-owned subsidiary of Spring Stone ExplorationLimited, an indirect wholly-owned subsidiary of Gold Canyon (with the same office address)formed for the purpose of managing the Malawi project and is the operator of a joint venturebetween Gold Canyon and JOGMEC to explore for REE in Malawi. Details of this joint venture arecontained in a Project Venture Agreement (“PVA”) between JOGMEC, Gold Canyon, SpringStone Limited and Spring Stone Exploration Inc. dated September 13, 2011, but effective onNovember 14, the date of transfer by the Malawi Government of EPL 0325/11 from JOGMEC toSpring Stone Limited. Under the PVA JOGMEC has the option to acquire a 67% interest in theMalawi Project and Gold Canyon 33%. Some details of the PVA are contained in a news releaseon September 8 of 2011 by Gold Canyon, which is available on their website. This PVAsupersedes a 2009 joint venture agreement between JOGMEC and Gold Canyon to explore forrare earth resources, initially in the USA and more recently in Malawi, through private USAcompany Gold Canyon Kratz Springs LLC.Exploration on EPL 0325/ 11 will be carried out by Mitsui Mineral DevelopmentEngineering Co. Ltd (“MINDECO” ) a wholly-owned subsidiary of Mitsui Mining and SmeltingCo of Japan under a Technical Service Agreement with Spring Stone Exploration Inc. (Figure 1).

8The author of this report, P.C. Le Couteur, is President of Micron Geological Ltd, ageological service company with office address at 4900 Skyline Drive, North Vancouver, BritishColumbia, Canada, V7R 3J3, is independent of Gold Canyon and is a "qualified person" asdefined by Canadian Securities Administrators (“CSA”) National Instrument (“NI”) 43-101. Thisreport has been prepared in compliance with the requirements of NI 43-101 of the CSA, as set outin Form 43-101F1, with effective date June 30, 2011.Figure 2 Location of Malawi in east Africa, showing towns of Lilongwe (the capital) and Blantyre(the main commercial centre). Source Magellan Geographixs.

9Figure 3. More detailed map of Malawi. The town of Mulanje in the SE is close to the Property. .Source: Magellan Geographix

10Figure 4 Southern Malawi showing general location of Mulanje Massif. Towns of Blantyre, Zombaand Mulanje shown. Source :GoogleFigure 5. The Mulanje Massif, including Chambe Basin.Source :Landsat image, NASA Earth Observatory Sept 12, 2004.

11(b) Purpose of reportAccording to J. Larkins, corporate legal counsel to Gold Canyon Resources Inc, “This reporthas been commissioned for the purposes of evaluating the geological, geophysical, geochemical,metallurgical, and other similar information concerning the Mulanje property for the purposes ofdefining or delineating the potential mineral prospects of this property for the Issuer or anysuccessor thereto.”(c) Sources of informationPublished information sources are acknowledged in the report and listed in the referencesection. Unpublished company reports, analyses, correspondence and other documents that arealso acknowledged in the references were made available from Gold Canyon records by A.Levinson, President and Director of Gold Canyon and by S. Miyatake, Director, ExplorationTechnology Division, Metals Exploration Dept. of JOGMEC.(d) Details of personal inspectionThe author has neither worked in, nor previously visited the Mulanje Mountain area ofMalawi. For the purpose of this report the author visited the Chambe Basin part of EPL 0325/11on the 22 nd and 23 rd of August of 2011. Chambe Basin was accessed on foot via the LikhubulaSkyline Path in company with R. Kojima, General Manager of Spring Stone Ltd in Zomba , and M.Nyirongo, Geologist with the Geological Survey of Malawi in Zomba, but currently employed bySpring Stone Ltd on this project, and 9 porters from Nakoya Village.Some samples were collected on 22 nd August, the night was spent at Frances Cottage inChambe Basin, and further sampling was done on the 23 rd August. Road-side samples weretaken by the author and M. Nyirongo, and from pits by porters under direction of the author and M.Nyirongo.3 RELIANCE ON OTHER EXPERTSNot applicable

12Figure 6 View from the south lip of Chambe Basin north across the basin toward the east face ofChambe Peak (8,390 feet).Figure 7. View of Chambe Basin west toward Chambe Peak. Soils in this area are reported byGarson and Walshaw (1969) to be about 25 feet (7.6 m) thick. Large grey boulders are syenite ,probably residual joint-bounded blocks (“core stones”). Bare rock of the far basin rim is syenite ofthe outer ring dike.

Figure 8 General geology of the Mulanje Massif, from “Mlanje Sheet” 1:100,000 scale, by Garson and Walshaw (1969).Rectangular outline shows the extent of Prospecting Licence 0325/11 and of the Chambe Basin area.

Figure 9. Detail of geology of Chambe area . From Mlanje Sheet 1:100,000 scale, Garson andWalshaw (1969). For detail of outlined “Chambe Basin area” see Figure 10.

154 PROPERTY DESCRIPTION AND LOCATION(a) Area of propertyExclusive Prospecting Licence EPL 0325/11 (Figure 8) has a rectangular shape about40 km E-W and 27 km N-S, minus a small triangular area at the SE corner. According tothe licence document the area of the Property is 1, 050 sq km.(b) Location of propertyThe general location of the Property in southernmost Malawi is shown on Figure 3and in more detail in Figure 4 and 5. The Property is covered by the “Blantyre” 1:250,000scale topographic map and the 1:100,000 scale “Mlanje” geological map sheet. ChambeBasin is covered by the 1:50,000 scale “Mulanje” topographic sheet 1535D3. Theapproximate latitude and longitude at the centre of the Property is 15˚ 57’S, 35˚ 37’ E. TheProperty boundaries are defined in the licence document by the UTM coordinates (Zone36L, Clarke (1880) modified spheroid) listed in Table 1.Table 1 Property boundariesCornerEasting NorthingmmA (NW) 760000 8247000B (NE) 800000 8247000C (SE) 800000 8226000D (SE) 790000 8220000E (SW) 760000 8220000(c) Type of mineral tenure, identifying numberThe Property is an “Exclusive Prospecting Licence” EPL (no 0325/11) issuedon 18 th March of 2011 by the Government of the Republic of Malawi acting through theMinister of Natural Resources, Mining, Energy and Environment.Licence EPL 0325/11 was issued for exclusive rights to carry out prospecting forREE and bauxite.

16(d) Ownership, surface rights, legal access, obligations, expiration date.The Chambe Basin lies within the Mulanje Mountain Forest Reserve and the mineraland surface rights are owned by the Government of the Republic of Malawi. Licence EPL0325/11 permits exclusive rights to carry on prospecting operations for rare earth elementsand bauxite. Legal access is by public roads and paths administered by the LikhubulaForestry Office of the Department of Forestry .Obligations assumed by licence-holder Spring Stone Ltd include the carrying out ofthe exploration program for rare earths and bauxite as proposed in the licence application(Anonymous (2011), Anonymous (2011a), Kojima (2011), Kojima (2011a). The originallyproposed expenditure of US $2.5 million was later reduced to US$1.0 million. Theexploration program was designed and will be carried out by Mitsui Mineral DevelopmentEngineering Co (“MINDECO”) under contract to Spring Stone Exploration Inc. Phase I ofthis program is to be carried out in fiscal year 2011 and consists of systematic shallowdrilling and pitting in Chambe Basin, with analysis and testing of soils for recovery of rareearths. Environmental observations will also be made.Conditions specified in the licence include requirements to commence operationswithin 3 months of granting of the licence, to supply quarterly progress reports and annualreports, to annually report the proposed program and budget for the next year’s work, toemploy and train Malawian citizens, to use goods and services from Malawi wheneverpossible, to conserve the environment, and to reclaim and restore areas damaged byexploration activities. Any shortfall from the proposed expenditures is considered a debt tothe Republic of Malawi.The Licence was granted on the 18 th day of March of 2011 for a period of 3 years, withan option to renew the Licence in accordance with Section 50 of the Malawi Mines andMinerals Act 1981.(e)Royalties, back-in rights, payments, agreements, encumbrancesThe joint venture between JOGMEC and Gold Canyon concerning a program forexploration of minerals in Malawi, defined as the “Malawi Project”, is detailed in a ProjectJoint Venture Agreement (”PVA”) made on September 13 of 2011 between JOGMEC, GoldCanyon, Spring Stone Limited and Spring Stone Exploration Inc and effective on November14 of 2011, the date of reassignment of Exclusive Prospecting Licence 0325/11 from

17JOGMEC to Spring Stone Limited by the Government of Malawi. Some details of thisagreement are contained in a news release made on September 8 of 2011 by Gold Canyonand available on the Gold Canyon website.Among other provisions and conditions of the PVA the Malawi Project is defined toinclude EPL 0325/11 and any other properties that may be acquired in Malawi. JOGMECholds the option to acquire 67% equity interest in the Malawi Project, which may beconverted to a proportionate shareholding in any Joint Venture formed from the MalawiProject. Gold Canyon holds the option to acquire 33% by contributing to the PVA. The PVAalso addresses matters such as conversion to net smelter royalty interests of 1.5% if dilutedto

18drill) and the other a small portable diesel-powered drill (YBM-05). Drilling will be mostlydry, chemicals will not be used, drill-sites should have minimal disturbance and holes willbe backfilled. Topsoil from pits and trenches will be stripped and replaced when backfilled.Accommodation will be in existing huts with piped water supplies. The Joint Venture hasretained a biologist familiar with the area to ensure environmental issues of the currentexploration are monitored. In the author’s opinion the environmental impact of the currentexploration will be insignificant.However, the Chambe Basin lies within the Mulanje Mountain Reserve, which wasestablished in 1927, and environmental issues for any eventual mining operation areimportant. Although mining can apparently proceed within this reserve, development mustbe done in a way that conserves the environment, especially water catchment areas suchas the Chambe Basin. There is also now an interest in eradicating introduced plants suchas the Mexican pine, Himalayan raspberry and the Australian eucalyptus and in replantingthe native cypress. Clearly, it is too early to consider the impact of any eventual mine butthe Joint Venture has proposed that it might be possible to combine restoration of a minedarea with reforestation of the basin with cypress.The Mulanje Mountain Conservation Trust was founded in 2000 with funding by theWorld Bank for research and conservation of biological diversity and promotion ofsustainable use of natural resources in the Mulanje Mountain Forest Reserve. It hasadvocated removal of introduced flora and restoration of endemic species, particularly theMulanje cypress, and has lead opposition to proposed mining of bauxite from the MulanjeMassif, principally on the Lichenya Plateau. While solution extraction of REE from soils inChambe Basin has little in common with the stripping and removal of large tonnages ofbauxite, environmental issues of REE resource extraction if it affected streams or createddust, etc. will need to be considered.(g) Work permitsNo work permit is required for the current work on the Joint Venture, but approvalwas required by the Ministry of Environmental Affairs before this work began.If the project proceeds to a second phase (in 2012) an Environmental Impact Study(“EIS”) will need to be initiated. Should the project eventually prove feasible the EIS willneed to be completed and a “Mining Licence” from the Ministry of Natural Resources would

19be required, and also a “Licence to Operate in a Forest Reserve” from the Ministry ofForests.(h) Other significant factors and risks affecting access, title, and ability to performwork.In the author’s opinion there are no significant factors and risks affecting access andability to perform exploration for REE in the Chambe Basin. Although the Property covers aforest reserve, exploration and mining within the reserve is apparently possible. However, ifa mine proves feasible it is clear that environmental impacts will be closely scrutinized andthe benefits to the local community and to Malawi will be weighed against environmentalrisks of development.5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTUREAND PHYSIOGRAPHY(a) Topography, elevation and vegetationThe Mulanje Massif rises steeply above the densely-populated surrounding Chilwa-Phalombe Plain at 650-750 m to Mt Sapitwa at 3,002 m, the highest peak in south-centralEast Africa. The massif is covered by the Mulanje Mountain Forest Reserve and contains adiverse and partly endemic vegetation, particularly the once more common MulanjeCypress, (Widdringtonia whytei) which became scarce by the 1950’s due to logging. TheMulanje Cypress is one of 4 African Widdringtonia species of the Family Cupressaceae andis often erroneously referred to as a “cedar”, which belong to the Family Pinacea and areunrelated to cypresses. A smaller cypress (Widdringtonia Nodiflora) and gladioli, groundorchids, proteas, aloe, crysanthemum, ferns, mosses, wild peach, yellow wood and otherplants are also present. Lists of some of the 6 endemic trees, the 66 mammals, 300 birds,31 snakes, 25 lizards, 33 frogs, 233 butterflies and 7 fish known from the Mulanje ForestReserve can be found in Deppe and Bishop (2010). Introduced plants include the MexicanPine (Pinus patula), eucalyptus and the Himalayan raspberry.The floor of the Chambe Basin has a rolling, subdued topography (Figure 6, 7, 9)ranging from about 1,690 m at the southern lip to about 1,875 m and is surrounded by acircular rim, partly of bare rock ( Figure 6, 7), which rises to a maximum height of 2,557 mat Chambe Peak. Chambe Basin apparently was once covered by a forest of the Mulanje

20Cypress, but few of these trees remain there today and the basin was later planted inMexican pine and most of this has also now been logged. The basin today has only a thincover of small bushes and grasses (Figure 6, 7).(b) Means of accessChambe Basin can be reached from Blantyre by vehicle on a good sealed road ESEabout 1 hour to Chitikale Village and then east a few km to the road end at the LikhubulaForestry Station by a gravel road, which passes through Nakoya Village. Several footpathslead to Chambe Basin from the lower southern slopes, the main one being the SkylinePath, which begins at the Likhubula Forestry Station at about 835 m and climbs to thesouth rim of the basin at about 1,690 m and takes 2 to 3 hours. From this point the footpathcontinues across the approximately 3.5 km wide basin and connects with a network of dirtroads that lead to several forestry / tourist huts.The present access to the property by footpaths is clearly insufficient for anysignificant mining activity and would need to be improved. In the past a cable-way, whichruns for about 2.1 km from a short road above the Likhubula Forestry Station to the UpperSkyline Station on the south rim of the basin, was used to bring logs down from the basin.The load bearing cables (about 1.5 inch) are still in place and, if the project continues, thecable-way might be re-activated or replaced and used to transport materials and perhapspeople to and from Chambe Basin. It is understood the Joint Venture will evaluate thisoption and any other access possibilities if the first phase of the project is encouraging.(c) Proximity to population centres, nature of transportThe nearest population centre to the Chambe Basin is Nakoya Village in thelower Likhubula Valley, where many mountain porters live, about 8 km SW of the basin.Chitikale, the commercial centre of the Mulanje district, lies a few km west of the LikhubulaForestry Station and the small town of Mulanje is about 9 km to the south on a paved road.Blantyre, the largest town (population ~730,000) and main commercial centre in Malawi,lies about 60 km in a direct line to the WNW.

21(d) Climate, length of operating seasonThe climate of Malawi is hot and wet from November to April, cool and dry fromMay to August and hot and dry from September to October. Annual rainfall is very differenton the Mulanje Massif (>100 inches) than on the surrounding plains (~40 inches). Rain mayfall at higher elevations at any time of the year, although it is more frequent and intenseduring the wet season. Intermittent rain and mist centred on the massif is common.Temperatures on the Phalombe Plain range from about 15˚ to 35˚C but on the massiftemperatures are generally lower, especially at night, and in June and August may dropbelow zero and snow may fall occasionally at higher elevations.Conditions may be more difficult in the wet season, but exploration and miningoperations could continue throughout the year.(e) Sufficiency of surface rights, availability of mining operationinfrastructure, areas for tailings, waste, leach pad areas and plantsSurface rights are owned by the Government of Malawi. There is very little mininginfrastructure in Malawi, mostly quarrying operations, and mining equipment wouldprobably need to be brought from South Africa or from outside Africa. The only significantmine in Malawi is the Keyelekera uranium mine, which opened in 2009. The World Bank(Land and others (2009)) identified unreliable power and transport as significantimpediments to developing mining operations in Malawi.At the present preliminary stage of exploration no study of areas for tailings, waste orplants has been made or is warranted.6 HISTORY(a) Prior ownership and ownership changesPrevious interest in the mineral resources of the Mulanje Mountain area hascentred on their extensive bauxite deposits, developed by weathering mainly on the Linjeand Lichenya plateaux at elevations of 1,800 -2,000 metres (Garson and Walshaw (1969)).According to Garson and Walshaw (1969) and Anonymous (1994) the bauxite depositswere discovered in 1924 and have been explored by various companies, including the

22Anglo American Corporation (1934, 1943), the British Aluminium Co. (1951-1958) and, onbehalf of the Malawi Government, Lonrho (1969-1973)..According to Chimwala (2009) in 2001 BHP Billiton considered developing theMulanje bauxite for their Mozal Smelter in Mozambique, and in 2005 South Africancompany Gondo Resources was granted an exclusive prospective licence over about 29 sqkm covering Mulanje bauxite. This licence expired in 2008, and although the companyrequested an extension until Sept 3 of 2010 to produce a feasibility study and anenvironmental impact assessment, this was rejected in January of 2010. There has beenconsiderable opposition to this project, especially because of the possible effects of duston the important tea-growing area near Mulanje, on water sources flowing from the MulanjeMassif, and on further loss of the Mulanje Cypress by surface stripping, mainly on theLichenya Plateau. .(b) Nature, extent and general results of previous exploration.No exploration is known to the author from the Chambe Basin prior to the analysesby Ishikawa and MINDECO described in Item 7b. These two reconnaissance samplingprograms consist of a small number (25 samples in total) of mainly roadside samples andanalyses indicate some samples contain easily-leachable REE.According to Garson and Walshaw (1969) there is negligible bauxite in the ChambeBasin, but as noted above significant bauxite resources have been found on other areas ofthe Mulanje Massif within EPL0325/11. A study of feasibility of development of the Mulanjebauxite on these other areas was made by Met-Chem (Anonymous (1994)) on behalf of theMineral Investment Development Corporation (MIDCOR), acting for the Government ofMalawi and funded by the African Development Bank. They recommended development ofbauxite (for aluminum) at a mining rate of 589,000 TpA, that an aerial tramway beconstructed to transport the bauxite to the plains below, and construction of a 200,000 TpAalumina plant. They also recommended that an aluminum smelter should not be built inMalawi, but instead that a commitment be sought from the aluminum smelter at RichardsBay in South Africa to purchase Mulanje alumina. They estimated capital costs at US$820M, which did not include a US$50 M investment in power, railways, and port facilities.

23(c) Significant historical mineral resources or reservesUsing the Lonrho data Met-Chem (Anonymous (1994)) reported a resource of 25.6MT of bauxite, using a cutoff grade of 30% Al 2 O 3, with an average grade of 43.3% Al 2 O 3 .However, it must be clearly stated that this historical resource is not 43-101compliant, it is not relied upon in this report, and it is not of exploration interest toGold Canyon. More specifically, the bauxite resources, whatever their size or economicpotential, are not germane to the potential REE resources of the Chambe Basin that are thepresent interest of Gold Canyon on the Mulanje Massif.(d) ProductionThe author knows of no mineral production from the Property.7 GEOLOGICAL SETTING AND MINERALIZATION(a) Regional, local and Property geologyThis part of southern Malawi (Figure 8) is underlain by a basement complex (Garsonand Walshaw, 1969) consisting of folded and metamorphosed rocks of Precambrian toLower Paleozoic age, mostly paragneiss, but also including granulites, calcareous gneiss,marble, several types of amphibolite and varieties of mostly migmatitic and anatecticgranite.Intruding the basement complex are rocks of the Chilwa Alkaline Province of UpperJurassic to Lower Cretaceous age. The major alkaline rocks are a series of overlappingsub-circular intrusions of mainly syenite, some quartz syenite and granite that form theMulanje Massif, an inselberg (Figure 5) that rises high above the surrounding plains.The Chambe ring structure (Figure 5, 9) is one of several syenite complexes of theMulanje Massif and is about 8.5 Km across. The outer ring dike syenite(s) form aprominent bare rock rim (Figure 6, 7) that encloses a basin about 3.5 km across withinwhich a central syenite plug has recessively weathered to soils that are up to about 15 mthick and contain scattered syenite boulders (Figure 6, 7) , probably residual joint-boundedblocks (“core stones”). Leachable rare earths in these soils are the main target of the

current exploration begun in August of 2011 under the direction of H. Harada of MINDECOon behalf of Gold Canyon.24(b) Mineralized zones, rock types, controls, length, width, depth and continuity ofmineralization. Description of type, character, and distribution of mineralization.The REE mineralization in the Chambe Basin is so far known only from a very smallnumber (total 25) of soil and rock samples collected on several days of reconnaissancesampling, mostly from road cuts along old forestry tracks. The controls on mineralizationand the vertical and horizontal extent of the mineralization are therefore unknown atpresent, and the principal objectives of the current exploration program of systematicdrilling and detailed sampling being carried out by MINDECO are to document the REEmineralizedmaterial and investigate the distribution of the REE in the soil profile, the sizeand grade of any resource, and the recoverability of the REE.An indication of the size of the soil mantle over the central syenite plug in ChambeBasin is given by the work of Garson and Walshaw (1969, Plate X), who mapped the basinand described the soils from 69 pits ranging in depth from 5 feet to 50 feet (1.5 to 15.2 m).A contoured map of thickness of the soils from the pit data reported by Garson andWalshaw (1969) is shown as Figure 10. Garson and Walshaw described the deposits asmainly kaolinitic, with bauxite only in small patches, and the following summary of the soilprofiles is derived from their account (with inferred standard soil horizons A to C added).Weathered rock (C soil horizon?) immediately above the bedrock syenite plug maypreserve the texture of the parent syenite, may also contain fragments of feldspar,amphibole and biotite and is mainly white, with pink, yellow and black mottling. The mottlingincreases upward and red, pink and purple colours predominate, and in the upper parts (Bsoil horizon?) the soil is red-brown and only quartz from the weathered syenite survives. Ayellowish-brown subsoil is locally present and the uppermost soil (A soil horizon?) containshumus and is dark grey to black and rooty.The possibility that the Mulanje Mountain area might contain REE deposits of theion-adsorption type was proposed by Ishikawa (2010), a geologist from the JapanInternational Cooperation Agency currently working with the Geological Survey of Malawi inZomba. Ishikawa collected 8 samples (Table 2) from Chambe Basin in September of 2010.

25The following year, on May 22-23 of 2011, a group of 7 geologists from MINDECO,JOGMEC and the Geological Survey of Malawi collected 16 samples at 9 sites (Table 3)including 13 soil samples from 6 sites and 3 rocks.It should be noted that only a small number of samples have been analyzed so far,that these are scattered over a large area, and that most are shallow (generally less than 3m) relative to the deep soils (Figure 10) reported by Garson and Walshaw (1969).Analyses (Table 4) of 3 “kaolinitic” samples (Table 2) collected by Ishikawa indicatedthese soils contain from 475 to 739 ppm total REE of which 31% to 74 % is easilyleachable(41% to 86% if Ce is excluded). Subsequent “weathered rock” samples taken byMINDECO, JOGMEC and Geological Survey of Malawi were found to contain (Table 5 and6) between 198 and 642 ppm total REE, and recoveries by leaching were in the range 0.1to 30% (38% if Ce is excluded), with 8 of 13 samples having 5% or less of their total REEleachable. This high variability of recovery of REE and the lower % of recovery than theIshikawa samples was considered by JOGMEC as possibly due to natural variability orperhaps to differences in leaching chemistry or methods between the earlier analyses(Nittetsu Lab) and the later analyses (Mitsui Lab). However, as an inter-laboratory checktwo original Ishikawa samples were leached by the Mitsui Lab and these show fairagreement in % of leached REE (see Table 7, 66% vs 74% for CHA-4 and 56 % vs 70% forCHA-6). This result suggests the methods produce comparable results and therefore implya fair degree of natural variability. These analyses show that Ce is 13 to 32% of the totalREE in the soils, but only 1 to 16% of the leachable REE, suggesting that Ce occurs in adifferent form than other REE, an observation that is consistent with studies of ionadsorption deposits elsewhere.Samples were collected by the author from Chambe Basin on 22-23 of August of2011 from 11 sites (Table 8) for verification purposes and are discussed in Item 12. Manyof these samples were taken as checks at sites originally sampled by Ishikawa, and theauthor is also grateful to J. Ishikawa for providing 3 of his original samples for re-analysis(see Table 9 under Item 12). Re-analysis of these samples has essentially confirmed hisinitial reports that the Chambe Basin may contain a REE deposit of the “ion-adsorption claytype “.

26Figure 10 Contour map of depth of soils (in feet) above bedrock in Chambe Basin. Depthdata are from Garson and Walshaw (1969, Plate X). Shallower areas shown in blue. Theblack enclosing line is the approximate boundary drawn by Garson and Walshaw (1969)between weathered and bare rock.

Table 2 Samples collected by J. Ishikawa in Sept of 2010Sample latitude longitudeerrormSampleOrganicdepth(cm)Samplingdepth(cm)Colourrockfragments(mm)radiometric(μSv/hr)CHA 1 15°54'40.7"SCHA 2 15°54'55.2"SCHA 3 15°55'08.8"SCHA 4 15°55'11.6"SCHA 5 15°55'13.3"SCHA 6 15°55'22.4"SCHA 7 15°55'27.5"SCHA 8 15°55'32.0"S35°32'25.5"E35°32'25.8"E35°32'21.1"E35°32'16.1"E35°32'15.9"E35°32'03.8"E35°31'42.7"E35°31'46.7"E4 Kaolinite 10 85 white-pale brown 1 0.155 Kaolinite 5 50 white-pale brown 2 0.154 Laterite 30 100 brown 1 0.154 Kaolinite 20 160 pale brown 1 0.156 Kaolinite 15 100 white-pale brown 1 0.156 Kaolinite 10 300 white-pale brown 1 0.154 Kaolinite 5 50 white-pale brown 2 0.153 Kaolinite 20 100 pale brown 2 0.15

Table 3 Samples collected by MINDECO / JOGMEC / Geol Survey of Malawi in May of 201128WGS84 WGS84Sample ID Type Zone Easting Northing Description Depth (cm) Site type11052201A WR 36L 770837 8237604 Reddish brown weathered syenite 80 Road cut11052201B WR 36L 770837 8237604 Pale pink weathered syenite 200 Road cut11052201C WR 36L 770837 8237604 Pale pinkish white weathered syenite 80 Road cut11052301A WR 36L 772317 8239705 Grey surface soil 10 Road cut11052301B WR 36L 772317 8239705 Reddish brown weathered syenite soil 40 Road cut11052302A WR 36L 772073 8239945 Grey white weathered syenite, rock texture remains 800 Road cut11052302B WR 36L 772073 8239945 Grey white weathered syenite, rock texture remains 1200 Road cut11052303A WR 36L 771825 8240116 Pale brown weathered syenite with feldspar 20 Road cut11052303B WR 36L 771825 8240116 Pale brownish white weathered syenite 200 Road cut11052303C WR 36L 771825 8240116 Pale brownish white weathered syenite 350 Road cut11052304A WR 36L 771861 8238542 Brownish grey surface muddy soil 20 Surface11052304B WR 36L 771865 8238567 Reddish brown weathered syenite soil 50 Road cut11052305 Rock 36L 771862 8239064 Grey white medium grain biotite syenite, not fresh 0 Boulder11052306 Rock 36L 771745 8238371Brown fine grain weathered dyke, weathered to softRoad0bricksurface11052307 WR 36L 770972 8237830 Dark reddish brown weathered syenite soil 0 Road cut11052308 Rock 36L 770582 8237383 Yellowish white fine grain syenite dyke, not fresh 0 Trail surfaceWR: weathered rock (saprolite)

Table 4 REE analyses of 3 leached samples collected by J. Ishikawa in September of 2010.29Total REESample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y TREE TREE-Ceno ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 125 126 31 127 23 9 22 3 18 4 11 1 9 1 111 620 495CHA-6 104 88 24 93 17 6 17 3 14 3 8 1 6 1 92 475 387CHA-8 127 203 34 140 27 11 27 4 22 4 11 1 8 1 120 739 536REE in leach liquorSample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y TREE TREE-Ceno ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 100 31 26 107 19 7 21 3 16 3 10 1 7 1 104 456 425CHA-6 57 8 17 74 14 5 17 3 14 3 8 1 5 1 105 332 324CHA-8 20 11 7 35 9 5 12 2 12 3 8 1 6 1 100 232 221Percentage of total REE leached from solidSample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y TREE TREE-Ceno % % % % % % % % % % % % % % % % %CHA-4 80 25 84 85 84 77 95 94 87 81 92 69 80 77 94 74 86CHA-6 55 9 72 80 83 85 102 120 99 108 103 101 83 110 114 70 84CHA-8 16 5 21 25 33 46 45 51 55 72 70 74 75 84 83 31 41

Table 5 Analyses of REE in solid samples and leach solutions by MINDECO on samples listed in Table 3 .Assays by Tokyo University by ICP/MS. Leaching by Mitsui Mining R&D Centre, Japan.SamplenoLight REE Mid REE Heavy REELa Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y TREEppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm11052201Asolid 77 133 24 94 17 5 13 2 9 2 5 1 4 1 38 424leach 13 4 4 15 2 1 2 0.2 1 0.2 1 0.1 0.4 0.1 8 5211052201Bsolid 88 181 26 99 19 5 15 2 11 2 5 1 4 1 54 513leach 21 5 7 29 5 2 5 1 3 1 2 0.2 1 0.2 19 9911052201Csolid 100 144 29 117 25 8 26 4 22 4 12 2 10 2 139 642leach 33 5 10 43 8 3 11 1 9 2 5 1 3 0.5 59 19211052301A solid 109 162 29 102 19 5 14 2 10 2 4 1 4 1 31 494leach 1 2 0 1 0.1 0.0 0.1 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.3 511052301B solid 100 139 26 88 16 4 12 2 8 1 3 0 3 0 21 423leach 0.1 0.2 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 111052302A solid 38 64 10 38 7 4 6 1 5 1 2 0 2 0 20 199leach 0.1 0.2 0.1 1 0 0.1 1 0.1 0.5 0.1 0.3 0.0 0.1 0.0 3 711052302B solid 33 72 10 37 7 4 6 1 5 1 2 0.3 2 0.3 19 198leach 0.3 0.2 0.2 1 0.4 0.1 0.5 0.1 0.4 0.1 0.2 0.0 0 0.0 3 711052303A solid 54 150 15 53 10 3 7 1 5 1 3 0.5 3 0.5 24 330leach 2 7 1 3 1 0.2 0.4 0.0 0.2 0.0 0.1 0.0 0 0.0 1 1611052303B solid 54 139 17 70 12 5 8 1 5 1 2 0.3 2 0.4 19 337leach 11 3 4 18 3 1 2 0.2 1 0.2 1 0.1 0.4 0.1 5 5011052303C solid 44 96 15 62 14 6 16 3 16 3 8 1 5 1 86 375leach 6 1 3 17 4 2 7 1 7 1 4 0.4 2 0.3 45 10111052304A solid 107 217 31 113 22 5 17 2 14 3 8 1 7 1 55 603leach 6 12 2 7 1 0 1 0.2 1 0.2 1 0.1 0.4 0.1 6 3811052304B solid 85 287 24 81 15 3 10 2 9 2 5 1 5 1 35 564leach 6 10 2 6 1 0 1 0.1 1 0.1 0.3 0.0 0.2 0.0 3 3111052305 solid 80 186 19 62 12 2 11 2 13 3 9 1 8 1 71 47911052306 solid 127 1447 76 353 129 8 176 43 347 82 264 39 241 31 2131 549511052307 solid 49 226 11 36 6 2 4 1 3 1 1 0 1 0 9 350leach 0 0 0 0 0 0 0 0 0 0 011052308 solid 40 87 10 34 6 1 4 1 4 1 2 0 2 0 14 20730

Table 6 REE recovered from leach liquors of samples of Table 3 as a % of REE in the solid samples.Calculated from data of Table 5 above for the “weathered rock” samples ( rock samples were not leached)31Sample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y TREE TREE-Cenorec%rec%rec%rec%rec%rec%rec%rec%rec%rec%rec%rec%rec%rec%rec% rec % rec %11052201A 17 3 16 16 13 16 16 13 13 14 14 11 9 10 20 12 1611052201B 24 3 26 29 26 32 31 29 29 32 32 30 27 27 36 19 2811052201C 33 3 34 36 34 37 41 40 39 40 40 37 34 33 42 30 3811052301A 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 111052301B 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.3 0.2 0.1 0.111052302A 0.3 0.4 1 3 5 4 9 9 9 11 11 10 8 7 17 4 511052302B 1 0.3 3 4 5 3 8 8 8 9 9 8 6 5 14 3 511052303A 5 4 5 6 5 5 6 5 5 5 4 3 3 3 5 5 511052303B 20 2 23 26 22 22 25 21 20 22 23 20 19 18 27 15 2411052303C 14 1 22 27 31 31 43 44 45 47 47 44 41 39 53 27 3611052304A 6 5 6 6 6 7 9 8 8 8 7 6 6 5 11 6 711052304B 7 4 7 8 7 8 8 7 6 6 5 4 3 3 9 5 711052307 0.1 0.1 0.1 0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1Table 7 Re-analysis of 4 Ishikawa samples (CHA-2, 4, 6, 7) by MINDECO (WR-2, 4, 6, 7).Analyses by ICP/MS at Tokyo University, leach tests at Mitsui R & D Centre, Japan7A REE concentrations in the solid sampleLRE ppm MRE ppm HRE ppm TREETREE-CeSample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y ppm ppmCHA-2 132 144 35 134 25 6 21 3 13 2 5 1 3 0 43 568 424WR2 129 215 35 132 26 6 21 3 16 3 8 1 7 1 62 663 448CHA-4 125 126 31 127 23 9 22 3 18 4 11 1 9 1 111 620 495WR4 143 158 38 150 29 11 28 4 22 5 13 2 10 2 125 739 581CHA-6 104 88 24 93 17 6 17 3 14 3 8 1 6 1 92 475 387WR6 104 82 29 121 25 9 28 4 23 5 13 2 10 2 149 606 525CHA-7 215 132 42 146 21 5 18 2 12 2 6 1 5 1 59 665 533WR7 221 234 45 152 23 5 18 2 13 2 7 1 6 1 64 794 560

7B Individual REE in the solid sample as a % of total REELight REE % Mid REE % Heavy REE % TREETREE-CeSample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y % %CHA-2 23 25 6 24 4 1 4 1 2 0 1 0 1 0 8 100 75WR2 19 32 5 20 4 1 3 0 2 0 1 0 1 0 9 100 68CHA-4 20 20 5 20 4 1 4 1 3 1 2 0 1 0 18 100 80WR4 19 21 5 20 4 1 4 1 3 1 2 0 1 0 17 100 79CHA-6 22 19 5 20 4 1 3 1 3 1 2 0 1 0 19 100 81WR6 17 13 5 20 4 1 5 1 4 1 2 0 2 0 25 100 87CHA-7 32 20 6 22 3 1 3 0 2 0 1 0 1 0 9 100 80WR7 28 29 6 19 3 1 2 0 2 0 1 0 1 0 8 100 71327C Concentration of REE leached from solid into liquorLight REE ppm Mid REE ppm Heavy REE ppm TREETREE-CeSample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y ppm ppmCHA-2 - - - - - - - - - - - - - - - -WR2 10 8 3 11 2 0 2 0 1 0 1 0 1 0 10 49 42CHA-4 100 31 26 107 19 7 21 3 16 3 10 1 7 1 104 456 425WR4 105 35 28 115 20 8 23 3 18 4 10 1 7 1 113 490 455CHA-6 57 8 17 74 14 5 17 3 14 3 8 1 5 1 105 332 324WR6 57 9 17 75 15 5 19 3 15 3 8 1 6 1 109 342 333CHA-7 - - - - - - - - - - - - - - - -WR7 160 5 30 105 14 2 12 1 7 1 4 1 3 0 48 394 389

337D Individual REE composition of leached liquor as a % of total REE in liquorLight REE % Mid REE % Heavy REE % TREETREE-CeSample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y % %CHA-2 - - - - - - - - - - - - - - - -WR2 21 16 5 23 3 1 4 0 3 1 2 0 1 0 21 100 84CHA-4 22 7 6 23 4 2 5 1 4 1 2 0 2 0 23 100 93WR4 22 7 6 23 4 2 5 1 4 1 2 0 2 0 23 100 93CHA-6 17 2 5 22 4 2 5 1 4 1 2 0 2 0 32 100 98WR6 17 3 5 22 4 2 6 1 4 1 2 0 2 0 32 100 97CHA-7WR7 41 1 8 27 3 0 3 0 2 0 1 0 1 0 12 100 997E Percentage extraction of the REE in the solid sample into the leach liquorLight REE % Mid REE % Heavy REE % TREETREE-CeSample La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y % %CHA-2 - - - - - - - - - - - - - - - -WR2 8 4 8 9 6 7 9 8 8 10 10 9 8 9 17 7 9CHA-4 80 25 84 85 84 77 95 94 87 81 92 69 80 77 94 74 86WR4 74 22 72 77 70 74 82 79 78 78 79 75 71 70 90 66 78CHA-6 55 9 72 80 83 85 102 120 99 108 103 101 83 110 114 70 84WR6 54 11 56 62 59 62 69 65 65 64 63 60 56 55 73 56 63CHA-7WR7 73 2 67 69 59 39 66 59 55 59 60 59 54 54 74 50 69

8 DEPOSIT TYPESThe type of REE deposit being explored for in the Chambe Basin iscommonly referred to as the “ion-adsorption clay type”, although various othernames have been used including “south China type”, “Jiangxi rare earth ores” ,“weathered crust elution-deposited rare earth ores”, “MEX-REY ores”, and “ionicREE ores” . The following summary is taken from a number of sources, includingBao and Zhao (2008), Chi (1988), Chi and others (2005) , Chi and Tian (2008),Ishihara and others (2008), Kanazawa and Kamitami (2005), Maksimovic andPanto (1996), Morteani and Preinfalk (1996), Murakami and Ishihara (2008),Orris and Grauch (2002), Sanematsu and others (2009), and Wu and others(1996).Ion adsorption type REE deposits are fairly common in China, where theywere first discovered in the 1970’s, and now number at least 214 deposits (Baoand Zhao (2008)), but are almost unknown elsewhere in the world. About 90% ofthe Chinese ionic deposits are in the southern provinces, principally Jiangxi,Guang Dong, and Guang Xi, but also in Hunan and Fujian. These areas aregenerally subtropical areas south of 28˚ N with warm, humid conditions andannual rainfalls exceeding 1,500 mm. In these areas they generally develop inthe weathering zone where topography is gentle, denudation rates are low butlong-continued, and soils are consequently deep and well preserved. Mostappear to have formed by in situ weathering of granite, but some have developedby weathering of other igneous rock types (eg pyroclastics), and rarely even fromother types of rock (eg phyllite). There is also evidence from clays washed intokarst depressions in eastern Europe (Maksimovic and Panto (1996)) that REEconcentrations can develop in clays not formed in situ.Whatever the environment, REE enrichments of the ionic type appear tobe due to continuous ground water leaching that mainly decomposes accessoryREE minerals in soils, and to a lesser extent trace REE in rock- forming minerals,from the upper soils . The REE are progressively leached in upper layers andredeposited at greater depths. In China it appears the REE are mostly looselybound to clays, However, in soils developed on REE-bearing carbonatites inBrazil (Morteani and Preinfalk (1996) the REE may be mainly held in phosphates,

35(such as apatite or the barium aluminum phosphate gorceixite ), or in REEfluorocarbonates of the bastnäsite group. Less is known of the leachability ofthese minerals but it likely is less than the ionic clay type.Weathered soil profiles in the REE deposits of south China are of lateriticcharacter and range from 5 to 30 m depth, are generally 8-10 m thick but maylocally reach as much as 60 m (Chi and Tian (2008) , Bao and Zhao (2008)).Typically there is a surface layer of organic soils (A soil layer), a stronglyweathered clayey, grey, yellow to red coloured layer (B soil layer) which usuallyhas the highest REE enrichment, and a lower pale-coloured layer with remnantsilicate minerals in clay (C soil layer) that may also retain primary igneoustextures (“saprolite”).About 60 to 90% of the total REE are adsorbed on clays such as kaoliniteand halloysite (Chi and Tian (2008)).The grade of raw ore is between 0.05 % and0.35% total RE oxides but there is considerable variability (2 to 6 times) in gradewithin a single deposit, commonly with better grades on ridges than gullies. Thedeposits are relatively small, generally 3,000 to 12,000 tonnes but the annualoutput from this type of deposit from China is about 10,000 tonnes REE oxideaccording to Bao and Zhao (2008). According to Chi and Tian (2008) “provenreserves of RE are approximately 1.48 million tons” in ion-adsorption deposits,inferior only to the resource at Bayan Obo.This type of deposit is important as providing a significant proportion of midand heavy REE in China. Figure 11 shows the REE distribution in two importantChinese ion-adsorption deposits (Longnan and Xunwu) compared with threecarbonatite-related REE deposits Mountain Pass REE Mine, the Bayan Obo REEMine and the Mt Weld REE deposit. Individual ion-adsorption deposits vary intheir distribution of the REE but Figure 11 shows some characteristic features.The carbonatite deposits have a high proportion of light REE, while the ionicdeposits have low light REE, higher mid and heavy REE. They also commonlyshow a distinctive deficiency in Ce and sometimes in Eu. The Ce deficiency hasbeen explained (eg Bao and Zhao , 2008) by the tendency of Ce to oxidize fromCe 3+ to Ce 4+ , the formation of cerianite or absorption of Ce on Fe and Aloxyhydroxides .

36The ion-adsorption REE deposits can only be processed chemically.Extraction is by ion exchange using a variety of common chemicals such as thesulphate, nitrate or chloride of ammonium, which provide the NH 4+ cations toreplace REE ions, but Na+, K+ and other cations are also effective. The REEmay be extracted by batch-leaching, by heap-leaching or can be extracted by insitu leaching (“ISR”). The leached REE are commonly recovered from theleachate by precipitation with oxalic acid or ammonium bicarbonate.The principal features of the ion-adsorption REE deposits are summarizedbelow1 The REE deposits are soils developed in tropical areas with high rainfall bylong-continued weathering, generally on granite bedrock.2 Much of the REE is derived from weathered accessory minerals, naturallyleached by ground waters in the upper soils (A layer) and redeposited at greaterdepth where it is loosely bound to clays, generally in the B soil layer but also inthe C layer.3 Although ion-adsorption deposits vary in their composition of individual REE,they tend to have a distinctly different distribution than other sources such ascarbonatites, with less light REE, and higher proportions of the valuable mid-REEand heavy REE. They also often have a Ce deficiency and a smaller Eudeficiency.4 REE grades are low (0.05-0.35 % total RE oxide), but the soils can be minedby relatively inexpensive shallow surface excavations or by in situ recovery.5 In contrast to other types of REE deposits, which commonly require complexand expensive processing, REE in ion-adsorption deposits can be extracted bysimple leaching of common chemicals. The amount recoverable is commonly 60to 90% of the total REE in the soil.

376 U and Th, which are generally associated with REE deposits of other types,are typically very low in the soils of ion-adsorption REE deposits and of this lowU and Th in the soil only a small percentage reports to the leach solution.Mt Pass Bayan Obo Mt Weld Longnan Xunwu10000010000100010010La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu YFigure 11 Chondrite-normalized REE distributions of REE from REE deposits inChina , Australia and USA. Chondrite values from Anders and Grevesse (1989)x 1.36 (volatile-free CI chondrite). Longnan and Xunwu are important ionadsorptionREE mines in Jiangxi Province, China (grades are poorly known).Mountain Pass is an important bastnäsite mine in carbonatite in California.Bayan Obo REE Mine in China is the largest REE deposit in the World, withdebated origin but probably carbonatite-related ?. Mt Weld is an undevelopedREE deposit derived by secondary enrichment from a carbonatite in Australia.Note steep smooth curves for carbonatite-related deposits, flatter REEdistributions for ionic deposits and Ce and Eu deficiencies.

Figure 12. Location of samples taken by Ishikawa (Table 2), MINDECO/JOGMEC/Geol Survey of Malawi (Table 3) and byLe Couteur (Table 8).

9 EXPLORATIONReconnaissance samples taken include 9 samples taken in 2010 beforethe Prospecting Licence was granted and another 16 after granting of the licencein early 2011.(a) Procedures and parametersSamples taken so far (Table 2 and 3) are only of a reconnaissance nature,were taken mainly from convenient roadside exposures and are 1 to 5 kg in size.(b) Sampling methods and sample quality, representativeness, bias.Samples shown in Tables 2 and 3 were scraped mainly from available roadcuts and appear typical of the soils exposed at shallow depths. There isinsufficient data to determine how representative these soils are of thosethroughout the basin. As the leachable REE content is not directly observable inthe field it cannot be said whether they are biased toward higher or lower values.(c) Location, number, type, nature, sample spacing, size of area covered.Locations of the 21 soils and 3 rocks taken are listed in Table 2 and 3 andshown in Figure 12. These are mainly from exposures along logging tracks,spaced from 50 m to 500 m apart over about 2.5 km and mainly in the easternand southern part of the basin.(d) Significant results and interpretation of exploration informationThe most significant result of the analyses from the few samples so faranalyzed (Table 2 to 7) is that some of them contain easily-leachable REE (up to74% recovery from TREE of 620 ppm in one sample). The interpretation of thismeagre information is that it suggests the possibility that Chambe Basin maycontain REE mineralization of the ion adsorption type. The purpose of the currentdrill program is to provide sufficient data to evaluate this possibility.Of interest is MINDECO dike sample 11052306 with 5,495 ppm TREE(Table 5), including 2,131 ppm Y and high levels of other REE, an indication ofthe presence of primary REE enrichment in the rocks of Chambe Basin.

4010 DRILLINGDrilling soils in Chambe Basin using two hand-portable drills was carried outby MINDECO from August to October of 2011 but no details are currentlyavailable, and as no analyses have yet been made there is no new informationon the REE potential.11 SAMPLE PREPARATION, ANALYSES AND SECURITY(a) Sample preparation methods, quality control prior to analyses.The author was not involved in taking the samples listed in Tables 2 and 3,collected in Sept of 2010 and May of 2011, and has no information on theseaspects for these samples. However, it is thought samples were placed in plasticbags and submitted in this form to the analyzing laboratories.(b) Sample preparation and analysis procedures, laboratory.Samples collected by J. Ishikawa listed in Table 2 were split, pulverized andanalyzed for 14 REE and other elements (Ba, Co, Cr, Cs, Ga, Hf, Mo, Nb, Rb,Sn, Sr, Ta, Th, Tl, U, V, W, Zr) using method ME-MS81 at the North VancouverLaboratory of ALS-Chemex. This method involves fusing the sample to a glasswith Li tetraborate, dissolution in acids and analysis by ICP-MS and is intendedto break down refractory minerals and provide total contents of the elementsanalyzed. The results are listed in Table 4. The ALS-Chemex North Vancouverlab is accredited to ISO-9001 standard. At the laboratory of Nittetsu Mining R &D Centre in Japan splits of the samples were dried at 105˚ C for 24 hours,ground to 2 mm, and 50 g was leached in 500 mg of 2% ammonium sulphate for6 hours. The leach liquor was separated by centrifuge and analyzed by ICP-MS,with the results listed in Table 4.Samples listed in Table 3 collected by MINDECO/JOGMEC and theGeological Survey of Malawi were analyzed for REE by ICP-MS at TokyoUniversity. Samples of 15 g were leached in 150 ml solution of ammoniumsulphate.

41(c) Quality control procedures.The author has no information on quality control procedures for sampleslisted in Tables 4 to 7.(d) Opinion on adequacy of sample preparation, security, analyticalprocedures.The author was not involved in the sampling program in Sept of 2010 or inMay of 2011 and has no opinion on sample preparation and security prior toanalyses. Analyses for REE were made by accepted and appropriate methods bymajor laboratories and leaching for loosely-held REE was done by a variant of astandard method (Chi (1988), Chi and Tian (2008)).12 DATA VERIFICATION(a) Data verification by qualified person.A principal purpose of the property visit by the author was to re-collect soilsfrom some sites where samples taken by J. Ishikawa in September 2010 werefound to contain easily-leachable REE (Table 4 and 7). Work done forverification purposes included re-analysis of three samples collected by J.Ishikawa in 2010, analysis of samples re-collected at 4 of the Ishikawa sites andat several other sites, two samples were checked for the identity of the clayminerals, two samples were screened for size distribution, and two soil samplesand one syenite were thin-sectioned and examined by petrographic microscope.Samples were exported on Export Permit EP 02911, issued by theCommissioner for Mines and Minerals of Malawi on 23August of 2011.All analyses were done by ALS Chemex at their North Vancouver laboratory(2103 Dollarton Hwy, North Vancouver, BC, V7H 0A7) except for leachprocedure ME-MS04 which was done at their Perth laboratory (ALS Ammtec, 6Macadam Place, Balcatta, Western Australia, 6021). Both laboratories have ISO9001 accreditation, and also have ISO 17025 accreditation for their mostcommon procedures, but not for ME-MS81, MS-ICP06 or the selective leachesOne syenite rock analyzed for total REE was first crushed with procedureCRU-31 (fine crush below 2 mm) and it and the soils were then pulverized by

42procedure PUL-21 (pulverized to 85% -75 microns). Samples were analyzed fortotal REE and other trace elements by procedure ME-MS81 and for majorelements by method MS-IP06. Samples of 0.2 g sample were fused with 0.9 glithium metaborate at 1,000˚ C, the glass was dissolved in 100 ml 4% HNO 3 /2%HCl and analyzed by ICP-MS for method ME-MS81 and by ICP-AES for methodME-ICP06. The REE results are reported in Table 10.Soil samples were analyzed for leachable REE by ALS-Chemex as follows.Soils were first air dried using procedure DRY-23 and leached by procedure ME-MS23 (a selective leach of weakly bound ions by sodium cyanide with chelatingagents ammonium chloride, citric acid and EDTA, with the leachant buffered atpH 8.5, analysis by ICP-MS) and by procedure ME-MS04 ( a weak leach with 1.0g sample mixed with 25 ml of ammonium acetate solution in acetic acid, shakenfor 2 hours, the leachant separated by centrifuge and decantation, analysis byICP-MS and by ICP-AES). The leached residues from ME-MS04 were alsopulverized (PUL-21) and analyzed for REE by method ME-MS81 and ME-ICP06..Results by method ME-MS04 for the samples listed in Table 8 are shownin Table 10 (total REE) and in Table 11, (leachable REE).1 Resampling and analysis of samples taken by J. Ishikawa On 21 Augustof 2011 the author visited J. Ishikawa in his office at the Geological Survey ofMalawi in Zomba and was given sub-samples of 3 of his original samples forcheck analyses both of total REE and leachable REE. These results are reportedin Table 9 along with the original analyses of these samples and analyses byMINDECO of the same samples.Samples CHA-4, CHA-6 and CHA-8 have now been analyzed for leachableREE by 3 laboratories and these results are compared in Table 9 and Figure 12.The result of re-analysis of the 3 original Ishikawa samples generally confirmstheir high percentage of leachable REE, from 31 to 74% for all REE or 41 to 86%for all REE except Ce. As previously noted, ionic REE deposits generally show alower percentage of leachable Ce than other REE.It appears that method ME-MS04 gives results similar to the ammoniumsulphate leach used by Nittetsu and University of Tokyo. However, the ME-MS23

43leach gives much lower values (see Table 13), is therefore considered unreliableand unsuitable for testing REE deposits of the ionic type and is not discussedfurther.2 Resampling at previously sampled sites. Four of the roadside sitessampled by Ishikawa (CHA-1, CHA-4, CHA-6, CHA-8) were relocated by handheldGPS and resampled at the same depths and from the same scrape as theoriginal samples. As it is conceivable that sampling only of roadside samplesmight bias results, perhaps reducing leachable REE by rain washing orincreasing the leachable REE by evaporation of REE-bearing ground water at thefree surface, at 2 sites (CHA-1, CHA8) samples were taken from new pits dugabout 10 m away from the road cuts. These results are reported in Table 10 and11 and compared with analyses of the original samples in Table 14.Considering that these samples include subsamples of the original samples,others re-collected at the same sites and nearby, and that analyses were done atseveral labs using different methods the agreement is reasonably good. It isconcluded that the results at least demonstrate that some samples contain asubstantial percentage (31 to 74% in Table 14 c) of easily leachable REE.However, the number of samples examined is very small and much more closespacedsampling and repeated reanalysis of a standard sample is needed toseparate analytical uncertainty from natural variability. Work on these aspects willbe part of the MINDECO program.3 Blank and standard. A barren quartz sand sample was submitted as ablank and a sample of REE standard SARF-1 was submitted as a standard.These results are shown in Table 10. Analysis of this standard gave resultswithin 2 std deviations except for La. The blank gave a total of 25 ppm, slightlyhigh, with the larger values for the more abundant REE (Ce, La, Nd, Y).Standards, blanks and duplicates analyzed by ALS Chemex as part of theirquality control gave acceptable results, although the standards used for theleaches generally had much lower concentrations than the samples.

Table 8 Samples collected by P. Le Couteur on August 22 and 23, 2011Assay UTM WGS84 WGS84 Sample comment Sampler Date Sample Depth Colour Weightno E- zoneEastingmNorthingm type cm g686951 36L 771708 8238275 CHA-4 original Ishikawa 7 Sept 10 soil 160 pale brown 169686952 36L 771338 8237947 CHA-6 original Ishikawa 7 Sept 10 soil 300 pale brown 308686953 36L 770825 8237658 CHA-8 original Ishikawa 7 Sept 10 soil 100 pale brown 523686954 36L Sarf-1 standard (pulp) standard 73686955 36L Quartz sand blank blank 300686956 36L 770825 8237658 CHA-8 resample Le Couteur 22-Aug-11 soil 100 pale grey 625686957 36L 771342 8237947 CHA-6 resample Le Couteur 22-Aug-11 soil 300 pale brown 642686958 36L 771712 8238278 CHA-4 resample Le Couteur 22-Aug-11 soil 150 brown 673686959 36L 772200 8239800 Pit near Frances Hut Le Couteur 23-Aug-11 soil 100 red brown 710686960 36L 772202 8239603 Pit near Frances Hut Le Couteur 23-Aug-11 soil 100 red brown 618686961 36L 772190 8239512 Unit 3 syenite Le Couteur 23-Aug-11 soil outcrop pale grey 544686962 36L 772006 8239223 10m from CHA-1 Le Couteur 23-Aug-11 soil 85 pale grey 700686963 36L 770831 8237667 10m from CHA-8 Le Couteur 23-Aug-11 soil 100 pale grey 867686964 36L 772001 8239224 CHA-1 resample Le Couteur 23-Aug-11 soil 100 pale brown 750

TABLE 9 Analyses of REE in 3 Ishikawa soil samples and leached liquors by 3 labsREE concentrations in the raw solid sample in ppmLight REE Mid REE Heavy REESample by** La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu YTREEppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 ISH 125 126 31 127 23 9 22 3 18 4 11 1 9 1 111 620MIN 143 158 38 150 29 11 28 4 22 5 13 2 10 2 125 739PCL 147 154 37 147 28 11 26 4 23 5 13 2 10 2 140 745CHA-6 ISH 104 88 24 93 17 6 17 3 14 3 8 1 6 1 92 475MIN 104 82 29 121 25 9 28 4 23 5 13 2 10 2 149 606PCL 117 144 32 134 28 9 28 4 25 5 14 2 10 2 165 717CHA-8 ISH 127 203 34 140 27 11 27 4 22 4 11 1 8 1 120 739PCL 100 194 26 111 24 10 23 4 21 5 12 2 10 2 152 695% of individual REE in the raw solid sampleLight REE Mid REE Heavy REESample by La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu YTREE% % % % % % % % % % % % % % % %CHA-4 ISH 20 20 5 20 4 1 4 1 3 1 2 0 1 0 18 100MIN 19 21 5 20 4 1 4 1 3 1 2 0 1 0 17 100PCL 20 21 5 20 4 1 3 1 3 1 2 0 1 0 19 100CHA-6 ISH 22 19 5 20 4 1 3 1 3 1 2 0 1 0 19 100MIN 17 13 5 20 4 1 5 1 4 1 2 0 2 0 25 100PCL 16 20 4 19 4 1 4 1 3 1 2 0 1 0 23 100CHA-8 ISH 17 27 5 19 4 1 4 1 3 1 2 0 1 0 16 100PCL 14 28 4 16 3 1 3 1 3 1 2 0 1 0 22 100REE removed from the solid into the leach solution in ppmLight REE Mid REE Heavy REESample by La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu YTREEppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 ISH 100 31 26 107 19 7 21 3 16 3 10 1 7 1 104 456MIN 105 35 28 115 20 8 23 3 18 4 10 1 7 1 113 490PCL 96 33 26 113 21 9 23 3 18 3 10 1 7 1 99 463CHA-6 ISH 57 8 17 74 14 5 17 3 14 3 8 1 5 1 105 332MIN 57 9 17 75 15 5 19 3 15 3 8 1 6 1 109 342PCL 57 10 17 79 16 6 20 3 17 3 9 1 6 1 106 348CHA-8 ISH 20 11 7 35 9 5 12 2 12 3 8 1 6 1 100 232PCL 26 14 8 39 9 5 15 2 13 3 8 1 6 1 107 257

Individual REE as % of the total REE in solutionLight REE Mid REE Heavy REESample by La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu YTREE% % % % % % % % % % % % % % % %CHA-4 ISH 22 7 6 23 4 2 5 1 4 1 2 0 2 0 23 100MIN 22 7 6 23 4 2 5 1 4 1 2 0 2 0 23 100PCL 21 7 6 24 4 2 5 1 4 1 2 0 2 0 21 100CHA-6 ISH 17 2 5 22 4 2 5 1 4 1 2 0 2 0 32 100MIN 17 3 5 22 4 2 6 1 4 1 2 0 2 0 32 100PCL 16 3 5 23 4 2 6 1 5 1 2 0 2 0 30 100CHA-8 ISH 9 5 3 15 4 2 5 1 5 1 3 0 3 0 43 100PCL 10 5 3 15 4 2 6 1 5 1 3 0 2 0 42 100REE leached as a % of original REE in the solid (% REE recovered)Light REE Mid REE Heavy REE TREETREESample by La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y-Ce% % % % % % % % % % % % % % % % %CHA-4 ISH 80 25 84 85 84 77 95 94 87 81 92 69 80 77 94 74 86MIN 74 22 72 77 70 74 82 79 78 78 79 75 71 70 90 66 78PCL 66 22 71 77 74 79 89 73 80 72 78 70 69 66 71 62 73CHA-6 ISH 55 9 72 80 83 85 102 120 99 108 103 101 83 110 114 70 84MIN 54 11 56 62 59 62 69 65 65 64 63 60 56 55 73 56 63PCL 49 7 54 59 56 65 71 59 67 57 63 58 56 55 64 49 59CHA-8 ISH 16 5 21 25 33 46 45 51 55 72 70 74 75 84 83 31 41PCL 26 7 30 35 39 52 63 53 59 56 68 63 64 63 70 37 48**KEYISH=Ishikawa samples (Table 4. REE by ALS Chemex, leach by Nittetsu)MIN=MINDECO samples (Table 7. REE by University of Tokyo, leach by Mitsui)PCL=Le Couteur samples (Table 10. REE by ALS Chemex, leach by ALS Chemex)

CHA-4ppm20015010050ISHMINPCL0La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu YREECHA-6200ppm15010050ISHMINPCL0La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb LuY250200CHA-8ppm15010050ISHPCL0La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb LuYFigure 12. Comparison of analyses of 3 Ishikawa samples by 3 labs . Dataof Table 9.

TABLE 10. Analyses of total REE in samples collected by P. Le Couteur for verification purposes(samples of Table 8). Analyses by ALS Chemex by ICP-MS. res=resampled, orig=original Ishikawa sample)REE in solid soil samples (except syenite E686961 ) , method ME-MS81Sample SAMPLE Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y Yb TREETREE-Ceno ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 orig E686951 154 23 13 11 26 5 147 2 147 37 28 4 2 140 10 745 592CHA-6 orig E686952 144 25 14 9 28 5 117 2 134 32 28 4 2 165 10 717 573CHA-8 orig E686953 194 21 12 10 23 5 100 2 111 26 24 4 2 152 10 695 502CHA-8 res E686956 140 22 12 9 22 5 83 2 93 22 21 4 2 153 9 598 458CHA-6 res E686957 177 24 13 8 25 5 104 2 118 28 25 4 2 164 11 710 533CHA-4 res E686958 136 17 10 8 18 3 111 1 107 27 21 3 1 104 8 574 439Pit E686959 369 9 6 2 9 2 76 1 59 17 11 1 1 46 7 615 246Pit E686960 195 9 4 4 12 2 104 1 88 25 16 2 1 37 4 502 307Syenite E686961 96 6 3 3 8 1 49 0 50 13 10 1 0 29 2 272 176near CHA-1 E686962 146 16 9 6 19 3 101 1 105 27 19 3 1 94 8 556 410near CHA-8 E686963 126 13 8 8 15 3 61 1 72 17 15 2 1 88 6 435 310CHA-1res E686964 155 9 5 3 10 2 72 1 64 17 12 1 1 46 5 401 246StandardSAMPLE Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y YbTotalREEno ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686954 6830 26 3 53 99 3 2990 0 2490 780 248 9 0 49 1 13581SARF-1 6768 26 51 2665 2615 746 2352SD 572 2.2 2.8 196 272 62 16BlankE686955 9.8 0.5 0.3 0.1 0.5 0.1 4.7 0.1 3.9 1.1 0.7 0.1 0.0 2.6 0.3 24.7Blank 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Table 11 Results of leaching REE from samples of Table 8 by ALS Chemex ( method ME-MS04 )49REE in leach solutionSample Sample Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y Yb TREETREE-Ceppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 orig E686951 33 18 10 9 23 3 96 1 113 26 21 3 1 99 7 463 429CHA-6 orig E686952 10 16 9 6 20 3 57 1 79 17 16 3 1 106 6 347 337CHA-8 orig E686953 14 13 8 5 15 3 26 1 39 8 9 2 1 107 6 257 243CHA-8 res E686956 10 13 8 4 13 3 16 1 26 5 7 2 1 106 6 221 211CHA-6 res E686957 12 17 9 6 20 3 51 1 73 16 15 3 1 110 6 342 330CHA-4 res E686958 22 11 6 5 14 2 58 1 68 16 12 2 1 70 4 292 270Pit E686959 12 1 0.35 0.22 1 0.12 6 0.04 7 2 1 0.13 0.05 3 0.30 33 22Pit E686960 3 0.07 0.03 0.04 0.12 0.01 1

Table 12 REE in soils as a % of REE in parent syenite E686961 (data of Table 10)50Ratio of REE in soils to REE in syenite E686961SAMPLE Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y Yb TREE Th Uno % % % % % % % % % % % % % % % % % %E686951 2 4 5 4 3 4 3 4 3 3 3 4 4 5 4 3 5 5E686952 2 4 5 3 4 5 2 4 3 3 3 4 5 6 4 3 11 10E686953 2 3 4 4 3 4 2 4 2 2 2 3 4 5 4 3 2 2E686956 1 3 4 3 3 4 2 4 2 2 2 3 4 5 4 2 2 2E686957 2 4 5 3 3 4 2 4 2 2 3 4 5 6 5 3 18 12E686958 1 3 3 3 2 3 2 3 2 2 2 3 3 4 3 2 5 5E686959 4 1 2 1 1 2 2 2 1 1 1 1 2 2 3 2 24 16E686960 2 2 2 2 2 1 2 1 2 2 2 2 1 1 1 2 11 8E686961 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1E686962 2 3 3 2 2 3 2 3 2 2 2 2 3 3 3 2 5 4E686963 1 2 3 3 2 2 1 2 1 1 2 2 3 3 3 2 2 1E686964 2 1 2 1 1 1 1 2 1 1 1 1 2 2 2 1 6 5Table 13 REE leached from samples of Table 8 by method ME-MS23ME-MS23ME-MS04Sample Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y Yb TREE TREEppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppm ppmE686951 885 2610 2090 476 1530 716 2180 204 4970 871 1085 336 254 19100 1405 39 463E686952 2610 4160 2330 1875 6120 895 17900 240 28700 5730 5230 842 274 29200 1560 108 347E686953 4860 5240 3500 2550 6670 1225 11400 444 20200 3640 4780 993 449 43600 2710 112 257E686956 2750 4530 3000 1740 4890 1070 5660 364 11300 1920 2980 813 383 38200 2300 82 221E686957 1905 3790 2100 1545 5420 807 12200 209 20700 3980 4160 776 236 25300 1335 84 342E686958 1.9 1.4 0.9 0.9 1.8 0.3 3.7 0.1 6.7 1.2 1.4 0.3 0.1 12.3 0.7 0.03 292E686959 2110 149 101.5 65.9 305 30.7 448 23.1 2020 330 439 34 15.9 718 133 7 33E686960 19.5 0.5 0.4 0.2 1 0.1 3.9 0.1 9.7 1.7 1.4 0.1 0.1 3 0.5 0.04 5E686962 736 3700 2050 1690 5330 789 9870 225 22700 3950 4490 756 240 20400 1415 78 240E686963 2920 3110 2070 1875 3420 739 3520 248 9790 1500 2440 553 266 25100 1565 59 133E686964 1615 1745 871 915 2450 345 1845 95.8 10350 1465 2350 356 100.5 8800 609 34 77

Table 14 Soils analyzed by Ishikawa, MINDECO and the author for comparative purposes5114 a Total REE concentration in soilsSample Ishikawa Comment Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y Yb TREETREE-Ceno no ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 Ishikawa analysis 126 18 11 9 22 4 125 1 127 31 23 3 1 111 9 620 495WR4 CHA-4MINDECOreanalysis 158 22 13 11 28 5 143 2 150 38 29 4 2 125 10 740 582E686951 CHA-4 PCL reanalysis 154 23 13 11 26 5 147 2 147 37 28 4 2 140 10 745 592E686958 CHA-4 resample PCL 136 17 10 8 18 3 111 1 107 27 21 3 1 104 8 574 439CHA-6 Ishikawa analysis 88 14 8 6 17 3 104 1 93 24 17 3 1 92 6 475 387WR6 CHA-6MINDECOreanalysis 82 23 13 9 28 5 104 2 121 29 25 4 2 149 10 606 524E686952 CHA-6 PCL reanalysis 144 25 14 9 28 5 117 2 134 32 28 4 2 165 10 717 573E686957 CHA-6 resample PCL 177 24 13 8 25 5 104 2 118 28 25 4 2 164 11 710 533CHA-8 Ishikawa analysis 203 22 11 11 27 4 127 1 140 34 27 4 1 120 8 739 536E686953 CHA-8 PCL reanalysis 194 21 12 10 23 5 100 2 111 26 24 4 2 152 10 695 502E686956 CHA-8 resample PCL 140 22 12 9 22 5 83 2 93 22 21 4 2 153 9 598 458E686963 CHA-8 10 m from original 126 13 8 8 15 3 61 1 72 17 15 2 1 88 6 435 310CHA-1 Ishikawa analysis 100 4 3 1 5 1 44 0 32 10 5 1 0 24 3 234 134E686964 CHA-1 resample PCL 155 9 5 3 10 2 72 1 64 17 12 1 1 46 5 401 246E686962 CHA-1 10 m from original 146 16 9 6 19 3 101 1 105 27 19 3 1 94 8 556 410

52Table 14b REE concentrations leached from soilSample Ishikawa Comment Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y Yb TREETREE-Ceno no ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmCHA-4 Ishikawa analysis 31 16 10 7 21 3 100 1 107 26 19 3 1 104 7 456 425WR4 CHA-4MINDECOreanalysis 35 18 10 8 23 4 105 1 115 28 20 3 1 113 7 491 456E686951 CHA-4 PCL reanalysis 33 18 10 9 23 3 96 1 113 26 21 3 1 99 7 463 430E686958 CHA-4 resample PCL 22 11 6 5 14 2 58 1 68 16 12 2 1 70 4 292 270CHA-6 Ishikawa analysis 8 14 8 5 17 3 57 1 74 17 14 3 1 105 5 332 324WR6 CHA-6MINDECOreanalysis 9 15 8 5 19 3 57 1 75 17 15 3 1 109 6 343 334E686952 CHA-6 PCL reanalysis 10 16 9 6 20 3 57 1 79 17 16 3 1 106 6 347 337E686957 CHA-6 resample PCL 12 17 9 6 20 3 51 1 73 16 15 3 1 110 6 342 330CHA-8 Ishikawa analysis 11 12 8 5 12 3 20 1 35 7 9 2 1 100 6 232 221E686953 CHA-8 PCL reanalysis 14 13 8 5 15 3 26 1 39 8 9 2 1 107 6 257 243E686956 CHA-8 resample PCL 10 13 8 4 13 3 16 1 26 5 7 2 1 106 6 221 211E686963 CHA-8 10 m from original 9 7 4 4 7 1 11 1 20 4 5 1 1 57 3 133 124CHA-1 Ishikawa analysisE686964 CHA-1 resample PCL 6 3 2 1 4 1 12 0 19 4 4 1 0 19 1 77 71E686962 CHA-1 10 m from original 5 11 6 4 13 2 39 1 60 13 11 2 1 69 4 240 235

53Table 14 c REE leached from soil as a % of total REE in soilValues below 50% recovery highlightedNote some values for CHA-6 are >100% possibly because two laboratories were involved (ALS and Nittetsu)

54Table 14d Differences in values in Table 14c as a % difference from the averages(differences higher than 20% highlighted ).>20% difference from the averageSample Ishikawa Comment Ce Dy Er Eu Gd Ho La Lu Nd Pr Sm Tb Tm Y Yb TREETREE-Ceno no % % % % % % % % % % % % % % % % %CHA-4 Ishikawa analysis 17 12 18 4 11 11 18 25 12 16 17 24 13 16 17 16 15WR4 CHA-4MINDECOreanalysis 5 5 -1 -1 -4 10 8-19 2 3 -4 -1 -18 12 2 5 5E686951 CHA-4 PCL reanalysis 2 1 1 7 4 -2 -3 7 2 -1 4 -4 14-12 1 -2 -3E686958 CHA-4 resample PCL-25-18-18 -9-11-19-23-13-15-18 -17-20 -9-16-19 -20 -17CHA-6 Ishikawa analysis 9 33 38 22 28 49 6 62 22 19 29 50 50 43 29 25 25WR6 CHA-6MINDECOreanalysis 31-12-18-20-15-17 6-26 -6 -2 -7 -7 -26 -8 -7 1 -5E686952 CHA-6 PCL reanalysis-19-16-15 -6-11-21 -6-18-10-10 -13-26 -13-19-14 -13 -12E686957 CHA-6 resample PCL-21 -5 -4 3 -2-11 -6-17 -6 -7 -9-17 -10-15 -8 -14 -8CHA-8 Ishikawa analysis-18 -1 8 -3-15 24-20 26-13-14 -4 2 14 16 16 -8 -6E686953 CHA-8 PCL reanalysis 6 6 4 10 18 -4 30 -6 22 27 14 5 -2 -2 -2 9 10E686956 CHA-8 resample PCL 7 5 3 -6 11 -4 0 0 -4 -5 -3 2 -2 -4 3 9 5E686963 CHA-8 10 m from original 6-11-14 0-14-16-10-21 -5 -9 -7 -9 -11-10-17 -10 -9E686964 CHA-1 resample PCL 10E686962 CHA-1 10 m from original-30-33-24-27-32-40-40-31-32 -28-28 -37-29-39 -38 -33-10 30 33 24 27 32 40 40 31 32 28 28 37 29 39 38 33

4 Nature of soilsTwo samples (E686956 and E866964) were screened to determine grainsizes, were scanned by X-ray diffraction to determine clay type, and thinsectioned to examine their mineralogy.Figure 13 Example of a roadside-cut sample site. Sample E686958 repeatsIshikawa sample CHA-4, both from the hollowed scrape at 1.5 m depth. Thissample contained 574 ppm TREE, of which 51% was leachable.

56(a) Appearance The general appearance of a roadside bank initially sampledby Ishikawa (CHA-4) and resampled by the author is shown in Figure 13. A thinrooty grey A soil layer overlies a pale yellow-brown B soil horizon.(b) Grain sizes. The size distributions of two screened samples are listed inTable 15. Material coarser than 0.25 mm is shown for E686956 as Figure 14,forms a large part (79% by weight) of this sample and consists of corrodedlookinggrey-white feldspar with scattered flakes of golden-brown biotite.Table 15 Grain size of two samplesSize E686 956 E686 964mm gram % gram %+5 0.0 0 0.0 0-5+1 20.5 14 10.2 6-1+0.5 30.4 20 26.0 14-0.5+0.25 67.4 45 31.6 17-0.25+0.15 28.5 19 55.4 30-0.15 4.4 3 60.8 33Total 151 100 184 100Figure 14 Screened fraction of sample E686956 coarser than 0.25 mm. Field ofview 5 mm. Mainly composed of corroded (weathered) K’spar.

57Figure 15. Photomicrograph of sample E686956 . Crossed polars. Field ofview=4.5 mm. Abundant fragments of K’spar and biotite in clay.Figure 16. Same area as above figure. Plain light. Surprisingly fresh K’spar andfresh (right side grain) and altered biotite (left side dark grain) in clay.

58(c) Clay typeTwo soils were thin-sectioned and consist of clay with surprisingly freshk’spar and biotite (Figure 15, 16). These 2 samples were also analyzed for claytype by X-ray diffraction (“XRD”) were reported by J.A. McLeod (MASc, P.Eng) tocontain kaolinite, along with residual silicates from the syenite, as listed below.Sample E686956 (re-sample of CHA-8) contains1. Albite - significant.2. Orthoclase - moderate.3. Kaolinite - minor to moderate.4. Phlogopite(?) - minor.Sample E685964 ( re-sample of CHA-1) contains:1. Kaolinite - significant to abundant.2. Orthoclase - minor.3. Muscovite - minor.4. Quartz - minor.One XRD scan is displayed as Figure 17.5 Parent syenite A sample (E686961) of the central syenite plug (unit SYcof Garson and Walshaw,1969) was taken from an outcrop beside FrancesHut (location Table 8) to determine the mineralogy and total REE content in thisrock, which appears to be the main source of the soils. Major and trace elementsare listed in Table 16, and REE are listed in Table 10. The major elements arefairly typical of syenites, and the trace elements are unexceptional. The 3samples in Table 16 are shown on an alkali vs silica classification plot as Figure18 which shows they have a syenitic composition (intrusive equivalent oftrachyte).

Figure 17. Xray diffraction scan of sample E686964. Kaolinite and unaltered silicates from parent syenite

Table 16 Composition of Chambe Basin syenite plug.W1026 and W1030 from Garson and Walshaw (1969, page 80)E686961 W1026 W1030unit Ag ppm

61Figure 19. Polished slab 40 mm long of Chambe Basin syenite E686961.Slightly weathered (brown stain), mostly grey microperthite K’spar with thin rimsof cream albite, and interstitial black amphibole, biotite, and ilmenite.Figure 20 . Same slab as above, stained for potassium (yellow). Mostly yellowstainedK’spar, tracery of paler rimming albite.

62The appearance of sample E686961 in hand specimen is shown in Figure19 as a polished surface and stained for the abundant K’spar in Figure 20.In thin section syenite E686961 (Figure 21, 22) consists mostly ofmicroperthite K’spar (~90%). Two sizes of K’spar are present; coarser anhedralblocky equant grains reach 9 mm across, some with corroded K’spar coressurrounded by clouds of minute (

63Figure 21 Photomicrograph of syenite E686961, Crossed polars, field ofview=4.5 mm.Figure 22 Same area as above figure. Plain light. Inclusions of biotite, ilmenite.

(b) Limitations or failure to verify dataThe soils analyzed for leachable REE are considered a reasonable test of thesmall number of previously reported results from Chambe Basin soils.(c) Opinion on adequacy of verification dataThe amount and composition of easily-leachable REE are the principal mattersthat required verification. However, obtaining a laboratory to provide the mostappropriate method for leaching proved difficult in the short time available. In theopinion of the author better leaching methods should be found before further analysesare done. The author initially attempted to persuade ALS Chemex to carry out exactlythe same procedure used by Nittetsu Mining R & D on the original Ishikawa samples,a simple leach with a 2% ammonium sulphate aqueous solution described by Chi(1988). Unfortunately, ALS declined to carry out this procedure, perhaps partlybecause of pressure of work, partly due to the small number of samples involved, andpartly because they would first have to develop quality control procedures andleachable-REE standard samples. Other commercial laboratories would likely have asimilar response and, while it may have been possible to persuade a university orother laboratory to carry out these leaches these likely lack accreditation or even thesort of quality assurance provided by commercial labs and required for 43-101 reports.Because the ammonium sulphate leach noted above was not available twodifferent leach procedures (see Item 11 (b)) offered by ALS Chemex were chosen asalternatives, both very weak leaches that selectively strip loosely bound ions. Theleach method ME-MS04 (ammonium acetate) gave results comparable to theammonium sulphate leaches at the Nittetsu and Mitsui laboratories, but method ME-MS23 (ammonium chloride) appears to extract much lower percentages of REE(Table 13).Summary From the author’s brief August visit the following were verified.1 Chambe basin is a large bowl in a subcircular syenite intrusion that contains thicksoils. The soils appear to be derived from the underlying syenite, which crops out inmany places and also occurs as residual boulders in the soils.2 Soils consist of fragments of feldspar and ferromagnesian minerals frombreakdown of the syenite, mixed with kaolinite from weathering of the rock. Soil

65profiles have well developed lower grey-white C layers, brown B layers, and thindark-grey organic A layers, although only shallow sections were seen. Analysessuggest the soils generally have 2 to 3 times the REE values of the parent syenite.3 Samples collected by J. Ishikawa were re-analyzed and the results of total REEand leachable REE found to be generally consistent with the previous analyses.4 Sample sites reported by J Ishikawa were re-located within a metre or two of thepositions he reported, four were resampled and analyzed, and 2 of them repeated alsofrom fresh pits dug nearby. Results from these samples are broadly consistent withthe previously reported total and leachable REE results at these locations. EightIshikawa samples contained 234 to 739 ppm TREE, MINDECO (13 samples) 194-642ppm TREE, this report (11 samples) 401-745 ppm TREE. Th and U contents of allsoils are low, with Th from 1 to 29 ppm and U from

6613 MINERAL PROCESSING AND METALLURGICAL TESTINGNo mineral processing or metallurgical studies have been made. However, theonly feasible method of processing this type of deposit is by chemical leaching. In Item8 it was noted that one of the attractions of the ion-adsorption REE type of deposit istheir metallurgical simplicity relative to the often-complex processing required for othertypes of REE deposit. Analyses of REE leached from exploration samples, by dilutesolutions of ammonium salts for example, should be a good initial indication of theirextractability with such solutions on a commercial scale. However, these analyses areno substitute for metallurgical tests.14 MINERAL RESOURCE ESTIMATESThe scattered meagre data do not allow any estimate of a REE mineralresource in the Chambe Basin.15 MINERAL RESERVE ESTIMATESThe data are not yet available to estimate a REE mineral resource in theChambe Basin.16 MINING METHODSNo consideration of mining methods has been made at the present time.However, the potential material is surficial soil and is known to be shallow, extendingfrom surface down to about 15 m depth. Presumably, shallow surface mining and insitu recovery will be considered if the project obtains encouraging results.17 RECOVERY METHODSAt this preliminary stage of exploration no specific information on any recoverymethod is appropriate, but would likely involve ion exchange of loosely-held REE bydilute aqueous solutions.18 PROJECT INFRASTUCTURENo consideration has yet been given to project infrastructure. However, in Item5 (c) the necessity of rehabilitating the existing cableway, or some other means of

67transporting material and people to and from the basin should the project proveencouraging was noted.19 MARKET STUDIES AND CONTRACTSMarket studies or contracts for possible mineral products have not been made.20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITYIMPACTNo environmental studies have yet been made but Initial environmental studies(see Item 27) are part of the current phase of exploration.Permitting is not required for the current activities and possible future permitrequirements have already been commented on in Item 4 (g).The present phase of exploration has a significant beneficial community impact.It provides work and training (Anonymous (2011b) for at least 25 citizens of Malawiincluding geologists, drillers, porters, samplers, and drivers, many from nearby villagessuch as Nakoya. As required by the terms of the licence, labour and supplies areobtained within Malawi to the extent possible.21 CAPITAL AND OPERATING COSTSNo estimation of capital and operating costs has been made or is appropriate atthe present preliminary stage of exploration.22 ECONOMIC ANALYSISAt this early stage there is insufficient data to carry out an economic analysisand none has been made.23 ADJACENT PROPERTIESAlthough a number of REE deposits are known in Malawi, some of which arebeing evaluated economically, none are of the ion-adsorption REE type and thereforecannot usefully be compared with the Chambe Basin.

6824 OTHER RELEVANT DATA AND INFORMATIONTo the author’s knowledge, there is no additional information or explanationnecessary to make this report understandable and not misleading.25 INTERPRETATION AND CONCLUSIONSDespite current interest in exploration for REE deposits, few deposits of theion-adsorption type are known outside China, where they are a significant source ofREE, especially of the mid and heavy REE, and they appear to have someadvantages over other types of REE deposit. Although only a small amount ofinformation is yet available, some soil samples of the Chambe Basin have highpercentages of leachable REE and suggest it may have potential for a REE deposit ofthe ion adsorption type, as originally suggested by J. Ishikawa, JOGMEC andMINDECO. The Chambe Basin deserves a thorough sampling to determine the size,grade, recovery, and economic potential of leachable REE.27 RECOMMENDATIONSThe program briefly described below to explore for a REE deposit of the ionadsorption type was prepared by MINDECO and, as the work and the expenditureshave both been presented to and approved as commitments by the Government ofMalawi in the course of applying for the licence, the author has no opportunity torecommend anything different. However, in the author’s opinion the MINDECOprogram is well designed, systematic, and should provide the data to make an initialevaluation of the leachable REE mineralization in the Chambe Basin. The author hasno hesitation in endorsing this program.Field work on the exploration program, being conducted by MINDECO underdirection of H. Harada, began in August of 2011. Estimated expenditures are listed inTable 18 and the principal activities of this program are as follows (Anonymous,2011b).Geology Drilling of about 160 shallow drill holes in soils on a 200 m grid (Figure 23)using two portable drills. Holes will be logged lithologically and radiometrically, andspecific gravity of soils measured. Samples will be taken every metre or at lithological

69boundaries. Pits and trenches will be excavated to examine the nature of the soilprofile. Surface geology will be mapped in Chambe Basin and a geological traversemade on the bauxite of the nearby Lichenya Plateau to the east.Analyses About 1,650 samples will be analyzed for 27 elements by ICP-MS andleaching tests made on about 500 samples using dilute ammonium sulphate solution.Selected samples will be examined petrographically and by X-Ray diffraction..Environmental. Flow of streams will be monitored, their pH and electricalconductivity measured and water samples taken. Growth of plants in leach residueswill be tested.Table 18 Expenditures estimated by MINDECO for the first phase ofexploration in Chambe Basin.Cost centre US $Preliminary visits and presentations $ 98,393Wages , including overheads $ 362,199Personnel travel expenses $ 97,181Equipment and supplies, transport to site $ 175,346Laboratory analyses, tests $ 222,793Spring Stone Ltd office costs $ 75,000Local contractor costs $ 68,053Accommodation, food, sample shipping,fuel $ 9,927Total $ 1,108,892If results in this initial exploration are encouraging then further phases ofexploration will be carried out, and will likely include closer-spaced drilling, pitting,metallurgical tests, consideration of mining and REE recovery methods and costs,improvement to access, evaluation of environmental issues, and market studies.Accurate analyses of total REE appear to be readily obtained from severallaboratories, including ALS-Chemex. However, although the leachable REE analysesby ALS Chemex method ME-MS04 appear to be compatible with analyses by Nittetsuand Mitsui labs it is suggested the amount of soil analyzed is too small and should be

70increased from 1 gram to at least 50 grams. If possible, a laboratory willing to carry outthe simpler ammonium sulphate leach should be found and appropriate testing ofleach performance done. No standard sample for leached REE is available and it isrecommended that a leach standard sample be made from soil on the Property,perhaps from site CHA-4, which gave high recovery (74%) of leachable REE from asample with relatively high TREE (~620 ppm) and is easily accessed at the roadside.Figure 23. The drill plan (200 m centres) by two man-portable drills proposed byMINDECO in the first phase of exploration of the Chambe Basin in 2011

71REFERENCESAnders, E., Grevesse, N. (1989) Abundances of the elements: meteoric and solar.Geochim. Cosmochim Acta 53, pp197-214.Anonymous (1994) Feasibility study for Mulanje Mountain Bauxite in Malawi.Prepared by MET-CHEM for MIDCOR . 11 Volumes.Anonymous (2011) Exploration Plan of the Mulanje Project in Malawi. Prepared forJOGMEC by MINDECO. Unpublished report, June 2011. Gold Canyon records.Anonymous (2011a) Exploration plan of the Mulanje Project in Malawi. Prepared forJOGMEC by MINDECO , June, 2011. Unpublished. Gold Canyon records.Anonymous (2011b) Phase I exploration cost of the Mulanje Mountain project inMalawi. Unpublished cost estimation prepared by MINDECO. Gold Canyon records.Bao, Z., Zhao, Z. (2008) Geochemistry of mineralization with exchangeable REY inthe weathering crusts of granitic rocks in South China. Ore Geology Reviewsv 38, pp 519-535Chi, R. (1988) Extraction of rare earths from a low-grade, kaolinitic ore by percolationleaching in Bautista, R.G., Wong, M.M( eds). “ Rare Earths, Extraction, Preparationand Application” , pp221-234. The Minerals and Metals Society.Chi, R, Zhongjan, L., Cui, P., Shenming, X. (2005) Partitioning properties of rareearth ores in China. Rare Metals v24 (3), pp205-209Chi, R., Tian, J. (2008) Weathered crust elution-deposited rare earth ores. NovaScience Publishers Inc, 286 p.Chimwala, M. (2009) SA company ready to launch Malawi bauxite project feasibilitystudy. Mining Weekly, 16 th Jan.Chimwala , M. (2009a) Mining operations to contribute $500 a year to Malawi fiscus. .Mining Weekly, 25 th Sept,Deppe , C., Bishop, T. (2010) Mount Mulanje Global Biosphere Reserve Visitor’sHandbook. Published by Mulanje Mountain Conservation Trust. 30pGarson, M.S., Walshaw, R.D. (1969) The geology of the Mlanje area. Bulletin 21 ,Geological Survey Dept of Malawi, 157p.Ishihara, S., Hua,R., Hoshino, M., Murakami, H. (2008) REE abundance and REEminerals in granitic rocks in the Nanling Range, Jiangxi Province, Southern China, andgeneration of REE-rich weathered crust deposits.Resource Geol. v 58(4), pp 355-372.

72Ishikawa, J. (2010) Exploration for ion-adsorption REE deposit in Mulanje Mountains,Malawi (Draft). Unpublished report dated 14 August of 2010. Gold Canyon records.Kojima, R. (2011) Project brief for EPL 0325/11, Mulanje Mountain. On behalf of JointVenture between JOGMEC and Gold Canyon. Unpublished company report, July2011. Gold Canyon Records.Kojima, R. (2011a) Quarterly activity report for EPL0325/11, Mulanje Mountain.Unpublished company report to Joint Venture between JOGMEC and Gold Canyon,July 2011. Gold Canyon records.Land, B., Husband, C., Walser, G., Loayza, F. (2009) Malawi Mineral SectorReview. World Bank Report.Maksimovic, Z.J., Panto, G. (1996) Authigenic rare earth minerals in karst-bauxitesand karstic nickel deposits. (In “Rare earth Minerals” eds Jones, A.P., Wall, F.,Williams, C.T) Mineralogical Society Series no 7, pp 257-278.Miyatake, S. (2011) REE resource evaluation program in Malawi. Unpublishedpresentation to Malawi Government in Lilongwe, Malawi by Gold Canyon andJOGMEC on June 27, 2011. Gold Canyon records.Morteani, G. , Preinfalk, C. (1996) Rare earth distribution and REE carriers inlaterites formed on the alkaline complexes of Araxa and Catalao (Brazil) (In “Rareearth Minerals” eds Jones, A.P., Wall, F., Williams, C.T) Mineralogical Society Seriesno 7 , pp 221-252.Murakami, H. Ishihara, S. (2008) REE mineralization of weathered crust and claysediment on granitic rocks in the Sanyo belt, SW Japan and southern JiangxiProvince. China Resource Geology 58(4) pp 373-401.Ruan, C. (1988) Extraction of rare earths from a low-grade kaolinitic ore bypercolation leaching. (In “Rare earths, extraction, preparation and applications” edsBautista, R.G. Wong, M.M.) The Minerals, Metals and Materials Society, pp 228-234.Sanematsu, K. Murakami, H. Watanabe,Y, Duangsurigna, S. Vilayhack, S. (2009) .Enrichment of rare earth elements (REE) in granitic rocks and their weathered crustsin central and southern Laos. Bull Geol Soc Japan v 60(11/12) pp 527-558.Wu, C., Yuan, C., Bai, G. (1996) Rare earth deposits in China. ( In “Rare earthMinerals” eds Jones, A.P., Wall, F., Williams, C.T) Mineralogical Society Series no 7,pp 281-306.

-lDATE AND SIGNATURE PAGEl, Peter C. LeCouteur, certify that:(a) | am a geologist employed by Micron Geological Ltd as President. The businessaddress of Micron Geological Ltd is 4900 Skyline Drive, North Vancouver, BC, Canada,V7R 3J3, tel (604) 980-4471, emailpetlec@shaw.ca.(b) This certificate applies to the reportitled "ceological Report on the ChambeBasin Area, Exclusive Prospecting Licence no EPL 0325111", dated December 2 of2011.(cl lgraduated in geology from the University of Auckland (New Zealand) with degrees ofB.Sc (1964) and M.Sc. (1967) in geology, and from the University of British Columbia witha Ph.D (1972) in geology.I have been a Fellow (#F1378) of the GeologicalAssociation of Canada since 1969,and a Professional Engineer (#10,963) in good standing with the Association ofProfessionalEngineers and Geoscientists of British Columbia since 1977.I have been involved as a geologist since 1973 in mineralexploration for variouscommodities including base metals, precious metals, special metals, uranium, anddiamonds in North America, South America, Africa, Europe, Greenland, Asia andAustralasia. I have worked on rare earth properties in USA, BC, Greenland and theNorthwest Tenitories of Canada.I have read the definition of 'qualified person" set out in Nl 43101 and certify that byreason of my education, current affiliation with a professional association and past relevantwork experience, I fulfill the requirements of a "qualified person" for the purposes of Nl 43-101 .(dl I conducted a personal inspection of the property that is the subject of this report onthe 22no and 23'o of August of 2011 for a duration of about 28 hours.(e)| am responsible for all sections of this report.(f) According to the test of independencesection 1.5 of Nl 43-101, I am independentof Gold Canyon Resources Inc.(glI have had no prior involvement with the Property.(h) | have read Nl 43-101, and this report has been prepared in compliance with Nl 43-101 and Form 43-101F1 (effective date June 30, 2011).(i) As of the date of this certificate, to the best of my knowledge, information and belief,the technical report contains all scientific and technical information that is required to bedisclosed to make the technical report not misleading.Effective date of rcport : December 2,2011Signature date: December 2,2011Le Couteur, PhD (UBC), P.Eng (BC), o* t{ :i if:t(+t'**o# r',r'L,rr"_i' tlJ,nr,.{j :u;i-r#ir3fql'l{i"*ir

74APPENDIX 1TOTAL RARE EARTH ANALYSES OF SOILSSAMPLES OF TABLE 8byALS-CHEMEXMETHOD ME-MS81, ME-ICP06

VA11171150 - FinalizedCLIENT : MICGEO - Micron Geological Ltd.# of SAMPLES : 14DATE RECEIVED : 2011-08-26 DATE FINALIZED : 2011-10-13PROJECT : CHAMBE BASINCERTIFICATE COMMENTS : Low whole rock total confirmed by re-analysis.PO NUMBER : CHAMBE CLAYSME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81SAMPLE Ag Ba Ce Co Cr Cs Cu Dy Er Eu Ga Gd HfDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686961

ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81SAMPLE Ho La Lu Mo Nb Nd Ni Pb Pr Rb Sm Sn SrDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686961 1.13 49.2 0.43

ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-ICP06SAMPLE Ta Tb Th Tl Tm U V W Y Yb Zn Zr SiO2DESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm %E686961 1.6 1.11 1.2

ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 OA-GRA05SAMPLE Al2O3 Fe2O3 CaO MgO Na2O K2O Cr2O3 TiO2 MnO P2O5 SrO BaO LOIDESCRIPT% % % % % % % % % % % % %E686961 17.15 4.15 0.85 0.67 6.62 6.3

5 TOT-ICP06SAMPLE TotalDESCRIPT%E686961 102E686951 100E686952 99.5E686953 99.2E686954 93.6E686955 99.4E686956 99.8E686957 98.9E686958 99.3E686959 99.2E686960 101E686962 98.3E686963 99.3E686964 98.7

75APPENDIX 2LEACHABLE RARE EARTH ANALYSES OF SOILSSAMPLES OF TABLE 8byALS-CHEMEXMETHODS ME-MS23, ME-MS04, ME-MS81

VA11176930 - FinalizedCLIENT : MICGEO - Micron Geological Ltd.# of SAMPLES : 11DATE RECEIVED : 2011-09-02 DATE FINALIZED : 2011-10-29PROJECT : CHAMBE BASINCERTIFICATE COMMENTS :PO NUMBER : CHAMBE LEACHME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23SAMPLE Ag As Au Ba Be Bi Br Ca Cd Ce Co Cr CsDESCRIPTppb ppb ppb ppb ppb ppb ppm ppm ppb ppb ppb ppb ppbE686951 0.6 72

ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23SAMPLE Cu Dy Er Eu Fe Ga Gd Ge Hf Hg Ho I InDESCRIPTppb ppb ppb ppb ppm ppb ppb ppb ppb ppb ppb ppm ppbE686951 4 2610 2090 476 0.9 155.5 1530 8.7 9.5 0.7 716 0.15

ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23SAMPLE La Li Lu Mg Mn Mo Nb Nd Ni Pb Pb 206 Pb 207 Pb 208DESCRIPTppb ppb ppb ppm ppm ppb ppb ppb ppb ppb ppb ppb ppbE686951 2180 0.2 204 16.45 1.89

ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23SAMPLE Pd Pr Pt Rb Re Sb Sc Se Sm Sn Sr Ta TbDESCRIPTppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppbE686951 62.9 871

ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 ME-MS23 pH-MS23 ME-MS04SAMPLE Te Th Ti Tl Tm U W Y Yb Zn Zr Final pH AgDESCRIPTppb ppb ppb ppb ppb ppb ppb ppb ppb ppb ppb Unity ppmE686951

ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04SAMPLE Al As Au B Ba Be Bi Br Ca Cd Ce Co CrDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686951 755 0.4

ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04SAMPLE Cs Cu Dy Er Eu Fe Ga Gd Ge Hf Hg Ho IDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686951 0.121

ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04SAMPLE In K La Li Lu Mg Mn Mo Na Nb Nd Ni PDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686951

ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04SAMPLE Pb Pr Rb Re Sb Se Sm Sn Sr Ta Tb Te ThDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686951 0.8 25.9 1.36 0.007

ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 ME-MS04 pH-MS04 ME-MS81 ME-MS81SAMPLE Ti Tl Tm U V W Y Yb Zn Zr Final pH Ag BaDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm Unity ppm ppmE686951 1 0.018 1.185 0.048 2 0.06 98.9 7.18 1.5

ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81SAMPLE Ce Co Cr Cs Cu Dy Er Eu Ga Gd Hf Ho LaDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686951 155.5 7.8 10 0.87

ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81SAMPLE Lu Mo Nb Nd Ni Pb Pr Rb Sm Sn Sr Ta TbDESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppmE686951 1.87 2 67 164.5

ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-MS81 ME-ICP06 ME-ICP06 ME-ICP06SAMPLE Th Tl Tm U V W Y Yb Zn Zr SiO2 Al2O3 Fe2O3DESCRIPTppm ppm ppm ppm ppm ppm ppm ppm ppm ppm % % %E686951 5.63

ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 ME-ICP06 OA-GRA05TOT-ICP06SAMPLE CaO MgO Na2O K2O Cr2O3 TiO2 MnO P2O5 SrO BaO LOI TotalDESCRIPT% % % % % % % % % % % %E686951 0.04 0.65 0.26 2.72

77APPENDIX 3XRAY DIFFRACTION SCANSSAMPLES E686956, E686964byJ.A. MCLEOD (MASc, PEng,)

Materials Data, Inc.[XRD] Thursday, September 15, 2011 04:47p (MDI/JADE8)[56.MDI] 56350d=3.1952300250d=4.216Intensity(Counts)200d=7.136d=3.2880d=3.5717d=3.3657d=3.4629d=4.017150d=3.8320d=3.6684d=2.5268100d=9.922d=6.430d=4.831d=4.435d=2.9435d=2.3833d=1.8003d=2.8954d=2.6054 d=2.3217 d=2.1571d=3.0261 d=2.7523 d=2.4284d=1.9901 d=1.9238 d=1.8159d=1.783150010 20 30 40 50 60 70Two-Theta (deg)

[56.MDI] 56SCAN: 4.0/70.0/0.05/1(sec), Cu, I(max)=379.0, 09/07/11 01:02pPeak Search ReportPEAK: 17(pts)/Parabolic Filter, Threshold=3.0, Cutoff=0.1%, BG=3/1.0, Peak-Top=SummitNOTE: Intensity = Counts, 2T(0)=0.0(deg), Wavelength to Compute d-Spacing = 1.54059Å (Cu/K-alpha1)# 2-Theta d(Å) BG Height H% Area A% FWHM1 8.905 9.9218 60 41 13.0 395 9.3 0.4092 12.393 7.1363 50 129 40.9 987 23.3 0.3253 13.761 6.4301 47 29 9.2 69 1.6 0.1014 18.352 4.8305 27 91 28.8 382 9.0 0.1785 20.005 4.4349 29 73 23.3 932 22.1 0.5406 21.055 4.2161 29 223 70.8 1660 39.3 0.3167 22.111 4.0170 57 96 30.4 439 10.4 0.1958 23.193 3.8320 68 73 23.0 643 15.2 0.3769 24.242 3.6684 79 59 18.6 340 8.0 0.24710 24.909 3.5717 73 115 36.6 1095 25.9 0.40411 25.705 3.4629 75 82 26.0 229 5.4 0.11912 26.461 3.3657 69 109 34.7 1440 34.1 0.55913 27.097 3.2880 62 138 43.9 1839 43.5 0.56514 27.901 3.1952 31 315 100.0 4227 100.0 0.57015 29.494 3.0261 31 30 9.6 220 5.2 0.30716 30.342 2.9435 37 72 22.9 1197 28.3 0.70417 30.858 2.8954 26 58 18.3 863 20.4 0.63418 32.505 2.7523 27 36 11.5 186 4.4 0.21819 34.394 2.6054 24 46 14.6 435 10.3 0.40220 35.498 2.5268 24 110 34.9 1788 42.3 0.69121 36.988 2.4284 24 40 12.7 383 9.1 0.40722 37.713 2.3833 24 79 25.0 707 16.7 0.38023 38.754 2.3217 37 32 10.0 348 8.2 0.46724 41.844 2.1571 34 39 12.3 172 4.1 0.18825 45.543 1.9901 30 34 10.9 339 8.0 0.41926 47.207 1.9238 30 35 11.2 274 6.5 0.33027 50.200 1.8159 42 26 8.3 124 2.9 0.20028 50.664 1.8003 35 57 18.1 607 14.4 0.45129 51.189 1.7831 28 29 9.1 139 3.3 0.207d=3.1952d=4.216d=9.922d=7.136d=6.430d=4.831d=4.435d=3.2880d=3.5717d=3.3657d=4.017d=3.4629d=3.8320 d=3.6684d=2.5268d=2.9435d=2.3833d=1.8003d=2.8954d=2.6054d=3.0261 d=2.7523 d=2.4284d=2.3217 d=2.1571 d=1.9901 d=1.9238 d=1.8159d=1.783110 20 30 40 50 60 70Two-Theta (deg)Materials Data, Inc.[XRD] Thursday, September 15, 2011 04:47p (MDI/JADE8)

Materials Data, Inc.[XRD] Thursday, September 15, 2011 04:51p (MDI/JADE8)[56.MDI] 5600-029-1488> Kaolinite-1Md - Al 2 Si 2 O 5 (OH) 401-083-2215> Albite - K 0.2 Na 0.8 AlSi 3 O 801-071-0957> Orthoclase - K 4 Al 4 Si 12 O 3201-070-1875> Phlogopite - K 2 Mg 6 Al 2 Si 6 O 24 H 4350d=3.1952300250d=4.216Intensity(Counts)200d=7.136d=3.2880d=3.5717d=3.3657d=3.4629d=4.017150d=3.8320d=3.6684d=2.5268100d=9.922d=6.430d=4.831d=4.435d=2.9435d=2.3833d=1.8003d=2.8954d=2.6054 d=2.3217 d=2.1571d=3.0261 d=2.7523 d=2.4284d=1.9901 d=1.9238 d=1.8159d=1.783150010 20 30 40 50 60 70Two-Theta (deg)

Materials Data, Inc.[XRD] Thursday, September 15, 2011 03:25p (MDI/JADE8)[64.MDI] 64Ad=7.160d=3.572812501000Intensity(Counts)750500d=3.3405d=3.2357250d=4.227d=2.3835d=10.27d=4.437 d=4.331d=2.5304 d=2.3361d=2.4962d=2.9859 d=2.7489 d=2.2935d=2.6039d=2.0122d=1.7891d=1.6836 d=1.6669d=1.4880d=1.5406010 20 30 40 50 60 70Two-Theta (deg)

[64.MDI] 64ASCAN: 4.0/70.0/0.05/1(sec), Cu, I(max)=1414, 09/07/11 01:47pPeak Search ReportPEAK: 15(pts)/Parabolic Filter, Threshold=3.0, Cutoff=0.1%, BG=3/1.0, Peak-Top=SummitNOTE: Intensity = Counts, 2T(0)=0.0(deg), Wavelength to Compute d-Spacing = 1.54059Å (Cu/K-alpha1)# 2-Theta d(Å) BG Height H% Area A% FWHM1 8.603 10.2703 64 76 5.7 988 10.4 0.5562 12.353 7.1596 54 1319 100.0 9463 100.0 0.3053 19.996 4.4368 34 112 8.5 1872 19.8 0.7134 20.489 4.3311 40 108 8.2 1736 18.3 0.6815 21.002 4.2265 40 157 11.9 1709 18.1 0.4626 24.902 3.5728 110 1304 98.9 8248 87.2 0.2697 26.664 3.3405 122 308 23.4 1571 16.6 0.2178 27.544 3.2357 42 217 16.5 1041 11.0 0.2049 29.900 2.9859 37 42 3.2 293 3.1 0.29310 32.547 2.7489 28 55 4.2 389 4.1 0.29811 34.414 2.6039 28 35 2.7 211 2.2 0.25312 35.446 2.5304 56 72 5.5 1039 11.0 0.61213 35.948 2.4962 52 56 4.3 679 7.2 0.51114 37.710 2.3835 52 141 10.7 908 9.6 0.27315 38.506 2.3361 52 74 5.6 669 7.1 0.38216 39.249 2.2935 42 40 3.0 286 3.0 0.30317 45.016 2.0122 31 26 2.0 533 5.6 0.86218 51.006 1.7891 33 66 5.0 571 6.0 0.36719 54.454 1.6836 26 34 2.5 192 2.0 0.24320 55.047 1.6669 36 33 2.5 555 5.9 0.71821 60.001 1.5406 28 21 1.6 213 2.3 0.42522 62.352 1.4880 34 50 3.8 478 5.1 0.405d=3.5728d=7.160d=3.3405d=3.2357d=10.27d=4.227d=4.437 d=4.331d=2.3835d=2.5304d=2.4962d=2.3361d=2.9859 d=2.7489 d=2.2935d=2.6039d=2.0122d=1.7891d=1.6836 d=1.6669d=1.4880d=1.540610 20 30 40 50 60 70Two-Theta (deg)Materials Data, Inc.[XRD] Thursday, September 15, 2011 03:25p (MDI/JADE8)

Materials Data, Inc.[XRD] Thursday, September 15, 2011 03:18p (MDI/JADE8)[64.MDI] 64Ad=7.160d=3.572800-029-1488> Kaolinite-1Md - Al 2 Si 2 O 5 (OH) 401-083-0539> Quartz - SiO 201-080-0743> Muscovite - (K 0.82 Na 0.18 )(Fe 0.03 Al 1.97 )(AlSi 3 )O 10 (OH) 201-086-0438> Orthoclase - K(AlSi 3 O 8 )12501000Intensity(Counts)750500d=3.3405d=3.2357250d=4.227d=2.3835d=10.27d=4.437 d=4.331d=2.5304 d=2.3361d=2.4962d=2.9859 d=2.7489 d=2.2935d=2.6039d=2.0122d=1.7891d=1.6836 d=1.6669d=1.4880d=1.5406010 20 30 40 50 60 70Two-Theta (deg)