Essequibo-Demerara PGGS

Valid for 3 years

Relinquishment requirement of 25% every year

Right to apply anytime for up 20 Prospecting Licenses

Numerous known historical showings documented

Some drill tested others surface sampled

Ore grade drill intersections in a number of showings

Rio Tinto may earn an initial 51% interest in the Essequibo-Demerara permission for geological and geophysical survey ("PGGS") claim block held by First Bauxite Corp. by funding expenditures totalling US$8,000,000 within 4 years, and an additional 24% interest in the PGGS (for a total of 75% interest in the PGGS) by sole funding a further US$50,000,000 in exploration and development of the PGGS claim block. On each of the first to fourth anniversaries of the LOU, as long as it has not withdrawn from the project, Rio Tinto has the right to acquire 1,000,000 common shares of Academy at a 10% discount to the volume-weighted average closing price on the 10 days prior to that anniversary

Geophysical surveys planned

Drilling planned