The San Ridge Juan Mine project is a cemented Paleo placer gold deposit located near the town of Grass Valley, California. The deposit is located on approximately 1,450 acres of private property owned by Shasta Gold Corporation’s subsidiary San Juan Mining Corporation. The Mine is an existing operation originally built in 1993-1994 by Siskon Gold Corporation, the prior operator, and operated through 1997. The project is in a rural setting with excellent paved road access and ample power through a currently installed distribution network. Due to the San Juan Ridge Mine operating during the 1990’s, a wealth of knowledge regarding specific geological, hydrogeological and environmental issues has been compiled and is briefly summarized below; additional information is available by request.

The San Juan Ridge Mine is within a placer gold deposit which is located on a ridge above the present level of the Yuba River. The gold bearing gravels were deposited during the early Tertiary period by a river system known as the Ancestral Yuba River. The gravels on the San Juan deposit can be divided into upper, middle and lower units. A high grade zone occurs near the base of the lower unit, and appears to form a geologically distinct and continuous horizon within the lower unit. Using a cutoff grade of 0.050 ounces of 1,000 fine gold per bank cubic yard, two continuous segments of high grade gravel, each approximately 6,000 feet in length and ranging in width from 100 to 600 feet and an average height of 16.7 feet were established. The two segments, known as the East Block and West Block are separated by a 1,000 foot long segment of lower grade channel gravels. Exploration programs between 1939 and 1990 were conducted with the aim of developing a large open pit placer mining operation. In 1991, Siskon Gold Corporation, the prior owner/operator, engaged Pincock Allen & Holt (PAH) to conduct a feasibility study to examine capital costs, operating costs and mining methodology proposed by Siskon Gold Corp. to mine the San Juan deposit as an underground operation. The study indicated that the mine could produce approximately 30,000 ounces of gold per year at attractive costs. A cross sectional geologic resource estimate was prepared by PAH for Siskon’s initial mining of the San Juan project. PAH estimated a geologic resource of 2,964,000, bank cubic yard grading 0.122 ounces of 1,000 fine gold per bank cubic yard. Accounting for losses, dilution and material left in situ, PAH estimated a minable reserve of 2,021,924 bank cubic yards grading 0.145 ounces of 920 fine gold per bank cubic yards, which was estimated to contain 257,707 troy ounces of gold. During Siskon’s operation of the San Juan Ridge Mine an estimated 154,028 bank cubic yards of material was extracted accounting for 18,255 ounces of 1000 fine gold produced, leaving 1,867,896 bank cubic yards of minable reserves still available. Using an adjusted grade of 0.128 ounces of 920 fine gold per bank cubic yard, to account for improved mining techniques, an estimated 239,091 ounces are still available within the reserve. Based on the minable reserve calculations and the anticipated production rate of 196,000 bank cubic yards per year, the estimated mine life is expected to be 10 years with Year 11 for final reclamation and site abandonment. This engineering report was updated in 2014 to reflect current labor, equipment, and consumable costs as well as current gold prices; the report is available by request and greatly expands upon the geologic description contained here.