Starfire Minerals Inc.

Carman Property, Ontario

The Carman property consists of six contiguous unpatented claims comprising 6 units covering a nominal 96 hectares in the south-central part of Carman Township, Porcupine Mining Division, 26 km east-southeast of Timmins, Ontario.  The Property covers part of a large body of variably serpentinized peridotite on the east flank of the Shaw Dome.  The Company's acquisition of the property in 1999 was based on the premise that a disseminated nickel deposit exploitable by open-pit miining (e.g., Mt. Keith, Western Australia) might be present.

A review of prior work on the property indiates that the nickel content of samples collected is within the average background range of serpentinized ultramafic rocks.  It is the Company's opinion that the likelihood of finding economic nickel mineralization hosted within the sulphur-undersaturat-ed serpentinized peridotite is extemely low.  Consequently the claims will be allowed to lapse when assessment credits have been exhausted.