In surveys carried out in 2001-2002 and 2002-2003 by the Fraser Institute, a well known Canadian think-tank, Quebec was ranked as being one of the best areas in the world to explore and develop mines. Quebec is renowned for the production of precious metals, common metals, and industrial metals and ranks among the main mineral producers in the world. Quebec also ranks among the top ten most explored areas in the world. Despite this, over two thirds of the land remains partially explored or completely virgin. This is true of the general James Bay area, which has only fairly recently became accessible to exploration. Many world-class deposits have been discovered in Quebec.

Due to the development of large hydroelectric dams over the past 25 years, the once remote James Bay region is now endowed with significant infrastructure that offers year-round accessibility by road, as well as electricity, airports, and hotels. For example, it is possible to drive directly by car from Montreal to the road adjacent to the main Aquilon Property and spend the evening at a world-class lodge offering all amenities, located about 40 minutes by car from the main area of exploration on the Aquilon Property.

The James Bay region is gaining in prominence as one of Canada�s most important areas for mineral exploration. Virginia Gold Mines and Eastmain Resources Inc. are in the process of developing significant gold discoveries and are two of the many companies active in exploration in the region.

In September 2004, Golden Tag conducted a first phase exploration program of diamond drilling and mechanical surface stripping on the Red Toad Zone approximately 500 meters east of the historical. This was in response to the favourable results obtained in the initial evaluation. Drill results from this program consisting of 11 BTW core holes totaling 954 meters, 9 of which were drilled on the Red Toad Zone, indicated the Red Toad Zone was continuous over a minimum strike length of approximately 100 meters and had been confirmed from the surface to a depth of 36 meters. Hole AQU-04-03 intersected 4.33 meters of mineralization at an average grade of 10.03 g/t Au. The mechanical surface stripping program of five trenches conducted in conjunction with the drilling program traced the mineralization of the Red Toad Zone over a 250 meter strike length. A grab sample collected to the west returned 838 g/t Au. (refer to Golden Tag�s news release of November 9, 2004 for a synopsis of significant results)

Golden Tag can earn up to a 60% interest in the Aquilon Property currently held 50% Sirios Resources and 50% SOQUEM, by expending a total of $1.5 million on exploration expenses over a 6 year period. Golden Tag will have earned a 40% interest after expending $750,000 of the amount in increments of $250,000 per year in the first 3 years and by issuing $100,000 in Golden Tag common shares to SOQUEM based on the price of the shares at the end of the 3 year period. The Company can earn an additional 20% interest by incurring exploration expenditures of $750,000 over the next 3 years and issuing a further $150,000 in Golden Tag shares based on the value at the end of the second 3 year period and granting a 1% NSR to SOQUEM. One-half of the 1% NSR can be purchased by making a payment of $500,000. Golden Tag will be operator of the project over the 6 year period and upon completion of its earn-in Sirios and Golden Tag will carry on a joint venture where each party will bear its proportionate share of exploration and development expenses.