The Tofino Nickel occurrence is located on the northwestern side of Tofino Inlet, at an elevation of approximately 300 metres, and 21 kilometres northeast of Tofino B.C.

The rocks hosting the Tofino Nickel showings are quartz-feldspar gneiss of the Paleozoic and/or Mesozoic Westcoast Complex. The protolith is determined to be interbedded sandstones and mafic tuffs, likely derived from Paleozoic Sicker Group rocks; with metamorphism coeval with Early to Middle Jurassic Island Plutonic Suite. In many outcrops the gneisses contain numerous thin dark grey-green foliated amphibolitic bands thought to be metamorphic equivalents of mafic and ultramafic Karmutsen dikes and sills as well as some relatively un- altered pyroxenites and peridotites. A hornblende gabbro intrudes the gneisses about 400 metres southwest of the showing. To the north and east, metabasalts bound the quartz-feldspar gneiss. Contained in the metabasalts are limestone/marble layers, possibly related to the Buttle Lake Group (Azure Lake Formation). All units are truncated to the south by diorite of the Island Plutonic Suite.

The host rocks are variably foliated and show warping due to regional deformation. Associated joints and the foliation trend 125 to 145 degrees with sub-vertical dips (after Muller, J.E., 1980; LeCouteur P.C., 1985; Lambert, E., 1988). Mapping, in 1997, indicated that although strikes and dips are variable, the overall geometry of the mineralized zone appears to dip moderately to the southeast between -45 degrees and -35 degrees (Assessment Report 25108).

The Tofino Nickel prospect occurs in an elongate southeast trending outcrop, some 10 by 30 metres in area, composed of several bands of amphibolite (metamorphosed ultramafic dikes or sills) inter-layered with quartz-feldspar gneiss. Mineralization within the amphibolites occur as a variety of sulphides that form 1 to 5 per cent of the rock as disseminations or 15 to 50 per cent as massive pods, laminations and dense disseminations. The relative abundances are: pyrite, 75-95 per cent; chalcopyrite, 2-5 per cent; violarite, 2-3 per cent; millerite, 2-5 per cent; pentlandite, less than 1 per cent and pyrrhotite, trace (LeCouteur, P.C., 1985). Other accessory minerals include magnetite and molybdenite. A petrographic study identified a palladium antimono-telluride, possibly merenskyite. Microscopic analysis indicates that the violarite is secondary after pentlandite. No platinum minerals were found but it is probably associated with the nickel or copper sulphides and possibly with the palladium mineral (LeCouteur, P.C., 1985). The palladium to platinum ratio is approximately 5 to 1.

Disseminated and stockwork sulphide mineralization, 7 to 10 metres thick, occurs in the footwall of the massive sulphide zone.

Initial exploration in the area was for copper-iron skarns along Tofino Creek, beginning in 1898 with prospecting and development continuing through to the present.

Sun West Minerals Limited staked the Foremost claims in 1962 and subsequent work discovered the nickel showings in 1963 on the northwest shore of Deer Bay. The majority of the exploration, however, was directed at the skarn mineralization. One sample gave a high assay of 48.0 grams per tonne silver (Minister of Mines Annual Report 1963, page 116).

From 1983 until 1987, Cominco Limited optioned the claims covering the nickel showings and did extensive geological mapping, rock and soil geochemical and geophysical surveys, trenching and detailed petrographic analysis. In 1985, a chip sample over 11.1 metres yielded values of 1.5 per cent zinc, 4.2 per cent copper, 1.4 grams per tonne platinum and 4.0 grams per tonne palladium (Assessment Report 23283).

During 1988 through 1991, Stag Explorations Ltd., later Stag Holdings, completed programs of geochemical, geological and geophysical surveys and the evaluation of the nickel-platinum group metals at these showings. In 1988, a sample contained 18.6 per cent copper, 15 per cent nickel, 1.1 grams per tonne gold, 6.9 grams per tonne platinum and 18.7 grams per tonne palladium (Assessment Report 17284).

During 1992 through 1995, P. Buckland completed programs of geological mapping and geochemical sampling. In 1994, a rock chip channel sample on the area previously sampled by Cominco, in 1985, assayed 2.06 per cent nickel, 1.97 per cent copper, 1.75 grams per tonne platinum and 5.87 grams per tonne palladium over 2.2 metres (Assessment Report 23283).

In 1997, Arnex Resources Ltd. completed a geology and rock chip sampling program at the main showing area. This work extended the massive sulphide zone to the southeast with a sample (437740) yielding 2.58 per cent copper, greater than 1.0 per cent zinc, 0.232 grams per tonne gold, 1.89 grams per tonne platinum and 6.42 grams per tonne palladium over 0.5 metre (Assessment Report 25108).

The mineralized footwall was also tested. A representative chip sample (437736) of disseminated mineralization over 10 metres yielded values of 0.498 per cent copper, 0.051 per cent nickel and 0.204 grams per tonne gold. Sampling (437741) of a semi-massive sulphide lens in the footwall assayed 0.14 per cent copper, 1.38 grams per tonne platinum, 5.27 grams per tonne palladium and greater than 1.0 per cent nickel (Assessment Report 25108).

In 2000, Arnex completed a magnetometer survey and additional rock chip sampling on the main zone. Two trenches, adjacent to the main showing, were tested and yielded 3.4 and 3.1 per cent copper, 0.7 and 2.1 per cent nickel, 2.4 and 1.6 grams per tonne platinum with 8.3 and 4.8 grams per tonne palladium over 2.7 and 2.5 metres, respectively (Assessment Report 26481). The magnetometer survey indicated a strong magnetic high exists to the west and northwest of the main zone. It is interpreted that the high is due to an

accumulation of magnetic nickel assemblage mineralization down dip from the main showing. Deeper drill targets were indicated. The magnetometer survey also indicates surface projections of the main zone on strike to the southeast (Assessment Report 26481).

In 2008, Arnes Resources Ltd. completed geologic mapping on outcrop exposed on the eastern facing slope

in the central portion of their Deer Bay Property over and area of approximately 10 hectares (Assessment Report 30898).

Ha. In 2012, 2014, 2016 and 2017 Arnex Resources Ltd. completed programs of geological mapping and geochemical sampling on their Deer Bay property, focusing on the toe of a landslide approximately 800 m south of the Tofino Nickel prospect (see TN SLIDE 092F 707). Anomalous values in Cu, Ni and Co were obtained in landslide boulders and in outcrop along the inlet shoreline.