Fortune Graphite

Exploration to date on the Fortune Properties shows inferred deposits of 6.7 million tons of graphite. In keeping with our
corporate policy of excellence, we have retained the most experienced and qualified professional to guide us in
assessing the commercial viability of these claims that were originally staked the Fortune Claims in 1996-1997 and then
again m in June 2002.

Acme Analytical of Vancouver, BC, Lakefield Research of Ontario, Superior Graphite of Chicago and Asbury Carbons of
New Jersey tested the samples.

The results indicated anomalous levels of graphite, ranging from trace amounts to upwards of 9% inorganic carbon.

The Company has prudently followed the normal path taken in exploration and development of a major mineral project;
examination of the opportunity, verification of title, prospecting, acquisition of title, further prospecting, data examination,
sampling, trenching, geophysics, surveying, more sampling, drilling, lab work, metallurgy and exploration planning.

In each of these areas, the Company employs only qualified personnel with experience in geology, field geology,
business planning, metallurgical analysis, and marketing and project execution.

This project is in the early stages of exploration. We have only explored a very minute part of the very large claim field.
Yet the results are already extremely encouraging.

Our drill samples have been independently tested by laboratories and by the world's leading processor of graphite.

Our metallurgical test work found that upgrading by a combination of flotation and gravity separation produced a good
grade of graphite concentrate with 45% to 50% of the graphite reporting to the plus 48 mesh fraction at a grade of over
95%C. These results were obtained from a representative number of samples taken from the Main Zone of the property.

Our field programs confirm that the mineral resources of the deposit may be economically and normally processed and
refined.

Our work on just five of these units has indicated a commercially-viable deposit of amorphous graphite. To date, we
have inferred deposits of 6,677,000 tons of amorphous graphite. Based on 9%, the yield of graphite would be 607,500
tons. At $280 per ton of graphite, the value would be $167,544,720 at current prices.

To achieve the Company's objective to put this property into production, we must secure the funds to start production.