ELWOOD PROPERTY

The Elwood property is located 70 km west of the city of Thunder Bay, Ontario, Canada. It consists in 31 mining titles covering 36.8 km².


Acquisition terms

The Elwood property results in the consolidation of two contiguous claim blocks acquired under different terms.

The Elwood "Main" property consists in 21 mining titles covering 22.1 km². The terms of the original option agreement were modified in May 2009 and Golden Share can now acquire a 100% interest over two years by meeting the following conditions:

• By paying the Vendor a total of $30,000; $10,000 upon signature of the Amended Option, $10,000 on the first anniversary date of signature of the Amended Option and $10,000 on the second anniversary date of signature of the Amended Option;

• By issuing the Vendor a total of 450,000 Golden Share common shares; 150,000 shares upon signature of the Amended Option, 150,000 shares on the first anniversary date of the Amended Option and 150,000 shares on the second anniversary date of the Amended Option.

In addition, Golden Share has granted the Vendor a 2% NSR on its Elwood West property. Moreover, an additional 300,000 shares can be issued to the Vendor at any time in the event that measured and indicated resources representing a metal content of 500,000 ounces of gold or more can be defined on the Elwood or Elwood West Property; a first tranche of 150,000 shares would be issued when a first threshold of 250,000 ounces of gold is achieved.

The Elwood "West" property comprises 10 mining titles for a total surface area of 14.7 km² and is directly adjoining the Elwood "Main" Property on its western boundary. It was acquired by acquired by direct staking in 2008.


Geological setting

The Elwood property is located south of Golden Share's Shebandowan Project currently under consolidation through a transaction with Lake Shore Gold Corp. Elwood is located south of the synvolcanic Shebandowan Felsic Intrusive Complex and shows several important, undeveloped gold showings associated with granodiorite dykes and/or sills hosted in a typical volcanic sequence. It also covers the western extension of the Peewatai granodiorite which is host to the mineralized Penziwol area. A large structure termed the Tinto Lake Fault Zone, a north-easterly trending structure interpreted to be a splay off of the regional-scale Crayfish Creek Fault, transects the western corner of the Elwood Property.

Golden Share exploration history

A thorough initial 2008 exploration program comprising systematic compilation, ground geophysics, prospecting, geological mapping, channel sampling and a first diamond drilling program was executed by Golden Share and highlighted the U Zone as an important target. The U Zone had never been drilled before Golden Share's program and a 485 m, first pass, 6 diamond drill hole program, yielded the following highlights :

• EL-08-01: 2.38 g/t Au over 8.30 m from 17.00 m to 25.30 m
• including 14.97 g/t Au over 1 m from 18.00 to 19.00 m
• EL-08-02: 0.60 g/t Au over 7.45 m from 35.90 m to 43.35 m
• including 1.56 g/t Au over 1 m from 35.90 to 36.90 m

Latest developments

In December 2010, Golden Share contracted Insight Geophysics Inc. of Oakville, Ontario, to follow-up on the initial drilling. Insight Geophysics Inc. executed an Insight Section Array / Tuned Gradient Array induced polarisation and resistivity survey over 5 line km to cover the U Zone and its immediate extensions. The survey demonstrated a very good correlation between zones of intense auriferous quartz veining and higher resistivity measurements. The IP survey confirmed the vertical extension of the mineralized system at depth and outlined drill targets associated with resistivity highs characteristic of quartz veining with associated chargeability anomalies.

While Golden Share's anticipated next work program in the Shebandowan area will primarily focus on resource expansion, promising early-stage targets such as Elwood's U zone will be the object of systematic follow-up diamond drilling.

All of Golden Share's exploration programs are executed under the supervision of Mrs. Laurence Huss, M.Sc., P. Geo., and Golden Share's Vice-President Exploration. Laurence Huss is a Qualified Person as defined in National Instrument 43-101. Philippe Giaro, P.Geo., President and CEO of Golden Share Mining Corporation, also acts as Qualified Person for Golden Share.