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United Reef entered into an option agreement in April 2008 and earned a 45% interest in five unpatented mining claims, consisting of 70 claim units covering approximately 1,120 ha (11.2 km2) in the McFaulds Lake area of the James Bay Lowlands, northwestern Ontario. A joint venture was formed upon the Company vesting its interest with Canstar Resources Inc., which owns the remaining 55% of the property and is the operator of the joint venture.

The McFaulds Lake claims are located approximately 4 kms east of McFaulds Lake. The property is contiguous to the southeast boundary of the Spider Resources/KWG Resources property where high-grade zinc-copper-silver-lead-gold mineralization was first discovered in 2003. Noront Resources' Eagle One Ni-Cu-PGM discovery is located 20 km to the west where Noront has reported an initial indicated and inferred resource estimate for base and precious metals. Recent chromite discoveries in the area reported by several companies lay approximately 15 kms to the west of the claims.

Previous exploration on the claims include an airborne electromagnetic (AEM) and magnetic survey carried out by Spider/KWG in the summer of 2003; ground magnetic and TDEM (time domain electromagnetic) surveys in spring 2004; and an AeroTEM survey commissioned by Canstar in late 2007. There are no known outcrops on the claims.

United Reef commissioned an independent geophysical interpretation of electromagnetic and magnetic data provided by Canstar from the AeroTEM survey flown over the claims. Three geophysically defined targets were drilled by United Reef in July 2008. No significant sulphide minerals were observed in the core. A few select representative samples from the three holes were assayed for base and precious metals with no significant values reported. As the drilling program did not confirm the presence of volcanic massive sulphides, the primary objective of the program, the Company wrote-down the carrying value of the property to nominal value. United Reef is monitoring exploration activity in the area.