The Paulette shale occurrence is located near the headwaters of Inwood Creek, approximately 3.5 kilometres north of the community of Paldi.

The area is underlain by shale and argillite units of the Cretaceous Nanaimo Group, primarily the Haslam Formation.

Locally, there is a sequence, approximately 250 metres thick, of the Haslam Formation. It is composed of argillite, siltstone, shale and minor sandstone and has the potential for shale extraction.

In 2010, Caracle Creek International Consulting Inc. completed a general quantitative survey on the area to obtain indications of the greatest shale reserves based on known geological data and a ceramics kiln testing program for expansion potential of grab samples taken from across the claims.