1、 ANNUAL REPORT 2006 Dear Shareholder,The past year was one of significant property advancement and share price appreciation that resulted in building a significant new shareholder base and increasing the exposure and visibility of your Company to the investment community.Improved liquidity and share
2、 price during 2006 was largely due to the successful implementation of our corporate strategy and the appreciation and enhanced profile of the Hermitage uranium project in Newfoundland.The acquisition and exploration of the Hermitage uranium project more than exceeded our expectations in 2006 growin
3、g into a substantial,high value asset for your Company in an environment of plus$90 per pound U3O8 and the strong global push for cleaner energy.It has provided a good complement to the Baffin Island gold project,which remains a key asset,and has opened the company up to large new pool of investors.
4、Corporate Merger and Acquisition activity in Nunavut in the last several months included Agnico-Eagles bid for Cumberland Resources and the takeover of Wolfden Resources by Australian Zinifex.This activity along with the receipt by Cumberland of the development permits for the Meadowbank gold projec
5、t has greatly enhanced the profile of the region,which will help your Company and our efforts on Baffin Island.In 2007 at least four drill projects will be running on your Companys properties,two of these funded by other companies on our high profile properties in the Yukon and B.C.We will continue
6、to evaluate our leverage strategy in order to expose you,our shareholders to more opportunities for discovery while reducing risk.?On the Baffin Island gold project-extension of the high-grade portion of the Ridge Lake gold zone and discovery of a new high-grade gold prospect.?On the Hermitage urani