Slate Lake

Location

The Slate Lake Property is located approximately 80 kilometres east of Red Lake, Ontario. The Slate Lake property adjoins a large block of claims that were recently staked by Goldcorp Inc (TSX: G) to the west.

Number of Claims & Hectares

9 claim blocks consisting of 107 units covering approximately 1,712 hectares as acquired on October 10th, 2010 and 1 mining lease (Mining Lease # 105626) covering approximately 96 hectares as acquired on February 7th, 2011 for a total of approximately 1,808 hectares.

Exploration Target

Gold.

Dates of Acquisition via two Option Agreements

October 10^th, 2010 and February 7^th, 2011.

Ownership Interests

100% Mainstream Minerals Corporation.

Operator

Mainstream Minerals Corporation.

Qualified Person as per National Instrument 43-101 (subject to change)

Mark Fedikow P.Geo.

Slate Lake Maps

Slate Lake Reports

MMI Results Report – PDF file [ 1.4 mb ]

Summary Report – PDF file [ 2.1 mb ]

Information

The Slate Lake Property has seen historical exploration, including the discovery of gold discussed below, by Noranda, Cumberland Resources and St. Joe Exploration, the latter succeeded in finding a high grade massive sulphide horizon on the north side of Slate Lake. The Slate Lake property is marked by the presence of a base metal massive sulphide style of mineralization as well as a structural geologic environment conducive to the formation of gold mineralization. A gold-in-till anomaly defined by the GSC underscores precious metal potential. Exploration for both stratigraphic and structurally-controlled styles of mineralization will be undertaken with a fully integrated program based initially on a compilation of geophysics, geochemistry and geologic mapping to support a planned drill program.

The proximal location of the property to this known mineralization, as well as the structural features identified on the property encouraged Mainstream to acquire this property.

Present on the property is a strong EM anomaly trending in a roughly E-W direction across the entire property which was outlined in an airborne MAG-EM survey carried out in the early 1990’s by The Ministry of Northern Development and Mines. Ground work following the airborne survey was carried out the Geological Survey of Canada (GSC) that included regional scale mapping and a reconnaissance glacial till sampling program. Till sample number 92-SBB-142 returned the highest count in pristine gold (104) in the entire survey area. This sample correlates strongly with the airborne MAG-EM anomaly. The GSC concluded that the glacial ice movement was in the S-SW direction and that there was a very thin glacial till layer in this area. This suggests that the till anomaly is proximal to its bedrock source making it an attractive exploration target. In addition to this historic work, Noranda in 1989 uncovered a 2-10cm silicified zone in a mafic volcanic rock unit by handstripping and grab sampling that returned 6.27 g / t Au.

Recently, Mainstream completed a Mobile Metal Ions soil geochemical survey on the Slate Lake property. A total of 333 samples were collected with 25 m sample spacing and analysis by MMI-M for 53 elements. Analyses were performed in the Toronto, Ontario laboratories of SGS Mineral Services. Results indicate the presence of high-contrast anomalous responses in the surveyed area. These anomalies are summarized in table form below and define the presence of focused base and precious metal exploration targets. The anomalous responses occur at several locations on the grid, correspond with anomalous electromagnetic and magnetic anomalies and are strongly suggestive of bedrock-hosted metal zonation typical in base metal massive sulphide-type mineralization. The MMI responses indicate mineralization on the property will be zinc-rich with lesser copper and associated gold and silver. Oxide facies iron formation is likely present as indicated by elevated MMI responses for the triplet iron, titanium and niobium, typical indicators for this type of chemical sedimentary lithology.

Summary of Mobile Metal Ion Anomalous Responses on the Slate Lake Property
MMI-M Element	Times Background
Zn	161
Cu	128
Ag	31
Au	22
Ga	152
Mo	63

Interpretation of the Mobile Metal Ions survey results was undertaken by Mount Morgan Resources Ltd. of Winnipeg, MB. Positive results from the survey triggered Mainstream to acquire Mining Lease 105626.

Under the terms of the October 10th, 2010 option agreement (9 claim blocks consisting of 107 units covering approximately 1,712 hectares), Mainstream Minerals can earn a 100% interest by completing payments to the Vendors totalling $80,000 over 4 years and the issuance of 200,000 common shares as follows:

Upon signature of the option agreement	$10,000
1st Anniversary of the Agreement	$10,000
2nd Anniversary of the Agreement	$15,000
3rd Anniversary of the Agreement	$20,000
4th Anniversary of the Agreement	$25,000

The common share issuances will be: (i) 100,000 shares within 10 days of regulatory approval of the agreement, and (ii) 100,000 shares upon the 1st anniversary of the agreement.

The issued shares shall be subject to hold periods as required by the applicable policies of the TSX Venture Exchange and other securities laws.

The Vendor will retain a 2.0 % Net Smelter Return (the “NSR”) interest in the Property. Mainstream Minerals can buyback one half or 1% of the “NSR” at anytime for a payment of $1,000,000 CDN dollars.

Under the terms of the February 7th, 2011 option agreement (1 mining lease (Mining Lease # 105626) covering approximately 96 hectares), Mainstream Minerals can earn a 100% interest by completing payments to the Vendors totalling $75,000 over 5 years and the issuance of 200,000 common shares over 1 year as follows:

Upon signature of the option agreement	$15,000
1st Anniversary of the Agreement	$  5,000
2nd Anniversary of the Agreement	$10,000
3rd Anniversary of the Agreement	$10,000
4th Anniversary of the Agreement	$35,000

The common share issuances will be: (i) 100,000 shares within 10 days of regulatory approval of the agreement, and (ii) 100,000 shares upon the 1st anniversary of the agreement.

The issued shares shall be subject to hold periods as required by the applicable policies of the TSX Venture Exchange and other securities laws.

Whereas the Vendor acquired the property rights to Slate Lake Mining Lease 105626 from a third party, that third party retains an original Net Smelter Return (“NSR”) royalty of 1.5%. As such, and under the terms of the option agreement, there will be two “NSR” royalties applicable to the lease. Each of the original third party and the Vendor for the Slate Lake mining lease will retain a 1.5% “NSR” (for a total “NSR” on the property of 3.0%). Mainstream Minerals may buy back one-half of each “NSR” by paying $1,000,000 to the applicable party. Without affecting the other party’s “NSR”, the party who is paid $1,000,000 will retain 0.75% of its original 1.5% “NSR”.