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Strathcona Mineral Services Limited BUSANG PROJECT - TECHNICAL AUDIT FOR BRE-X MINERALS LTD. INTERIM REPORT MAY 3, 1997 Graham Farquharson Henrik Thalenhorst Reinhard von Guttenberg Strathcona Mineral Services Limited Sie Toronto, Canada ‘Bescon Mineral Services Limited Summary ‘The Busang property in the Province of Kalimantan in Indonesia has been under exploration by Bre-X Minerals Ltd. (Bre-X} with core drilling results since mid-1995 on the Southeast Zone of the property giving rise to expectations that the Busang eroperty could host one of the largest single gold deposits ever discovered. In February 1997, Freeport McMoRan Copper & Gold Inc. (Freeport) commenced a due aiigence program prior to becoming a participant in the further development of the Suseng property. The Freeport program included core drilling and in mid March, Freeport advised Bre-X that gold values comparable to those from the Bre-X drill were not being realized. @ consequence, Strathcona Mineral Services Limited (Strathcona) was engaged by Sre-X to carry out a technical audit of the work done by both Bre-X and Freeport. As Pert of that technical audit, we have completed a closely supervised six-hole core

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