Côté Lake

Overview

The Côté Lake Gold Deposit, Trelawneys flagship property, is located between Timmins and Sudbury, Ontario. The deposit is a large tonnage low to medium grade gold deposit hosted in a granodioritic-dioritic intrusive complex in the southeastern portion of the Swayze Greenstone Belt. The inferred resource of the Côté Lake Deposit currently stands at 131 million tonnes grading 1.0 g/t for a total of 4.22 million ounces gold. The effective date of the mineral resource estimate is March 4, 2011.

Since the release of the initial resource estimate, mineralization of the Côté Lake Deposit has been intersected over a strike-length of 1,200 metres with outcrops discovered at two known locations 500 metres apart on sections 92+00E and 87+00E. The mineralized zone remains open along strike and at depth on all sections that have been drilled. In section, the zone attains widths of up to 300 metres. The mineralization, delineated by drilling to date, coincides well with a NE-SW trending IP anomaly. The Côté Lake Deposit consists of low to moderate grade gold +/- copper mineralization which is associated with brecciated intermediate to felsic, and locally mafic intrusive rocks. The nature of the alteration and mineralization suggests a porphyry-style deposit. An updated resource estimate is due in Q1-2012.

Expansion and definition drilling is ongoing on the deposit with 6 drill rigs. Trelawneys exploration budget for 2012 stands at over $25MM. There is excellent potential for additional discoveries proximal to the current resource as indicated by surface showings and chargeability anomalies obtained from IP surveys.

Property Description and Location

The Côté Lake Gold Deposit is part of the Chester Project which is located in north central Chester Township approximately 20 km southwest of Gogama, Ontario. The Project area is just west of Highway 144, about 200 km by road northwest of Sudbury, along Highway 144. Similarly, it is about 120 km by road southwest of Timmins via Highways 101 and 144. This area is in the Porcupine Mining Division and the Chester Project is within 1:50,000 NTS sheet 41 P/12.

Abitibi Gold Deposits
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Geology and Mineralization

Chester Township is located in the Swayze greenstone belt in the southwestern extension of the Abitibi greenstone belt of the Superior Province. The Swayze belt contains a diversity of extrusive and intrusive rock types ranging from ultramafic through felsic in composition, as well as both chemical and clastic sedimentary rocks. Igneous rocks predominate and include both volcanic and plutonic rocks. The Swayze area underwent a complex and protracted structural history of polyphase folding, development of multiple foliations, ductile high-strain zones, and late brittle faulting.

The Chester Township area overlies a narrow greenstone belt assemblage which separates the Kenogamissi granitoid complex to the north from the Ramsey-Algoma granitoid complex to the south, a portion of the northern edge of which is called the Chester Granitoid Complex (CGC).

Trelawneys Chester Project is underlain by calc-alkalic pyroclastic metavolcanics of felsic to intermediate composition (Chester Group), felsic to intermediate granitoid intrusive rocks, namely tonalite, trondhjemite, granodiorite, and diorite of the CGC and related migmatites. The granitoid rocks are very heterogeneous reflecting a number of primary igneous intrusive phases, migmatization and assimilation of older country rocks and local rafts and screens of the intruded supracrustal lithologies.

Two different types of gold mineralization are recognized on the Chester Project. The historically important mineralization can be termed quartz vein and fracture associated, while the new Côté Lake discovery is a large gold mineralized system associated with altered and brecciated intrusive rocks and is interpreted as an Archean gold porphyry deposit.

The extent and limits of the mineralized brecciated mass hosting the Côté Lake deposit are not yet defined, but in plan it has an east-northeast extent of at least 1200 m, a horizontal width of 200 m to 300 m, and a depth extent of more than 500 m. A rough picture is emerging of a core breccia mass within diorite, surrounded by granodiorite. The gold-mineralizing hydrothermal system has apparently overprinted the volume of magmatically brecciated rock and developed as yet poorly defined zones of propylitic and potassic alteration.

Mineral Resource

The Côté Lake mineral resource was estimated using only diamond drill hole data. All holes have been drilled from surface utilizing a locally established grid. All holes have been drilled by Trelawney in 2009 and 2010. Geology and gold grade distribution has been interpreted on eight sections from 8900E to 9600E and seven plans ranging from 350 m elevation to -150 m elevation. Interpretation lines on sections and plans have been used to create 3D wireframe surfaces and solids. Mineralization wireframes were constructed using 0.3 g/t Au downhole composites as a guide.

The Côté Lake mineral resource is all classified as Inferred Mineral Resource and totals 131 million tonnes averaging 1.00 g/t Au for 4.2 million ounces of contained gold at a cut-off grade of 0.3 g/t Au. The effective date of this mineral resource estimate is March 4, 2011.

CÔTÉ LAKE MINERAL RESOURCE ESTIMATE MARCH 4, 2011

Trelawney Mining and Exploration Inc. Chester Property

Classification	Cut-off Grade g/t Au	Tonnes Millions	Grade g/t Au	Contained Au Millions of oz
Inferred	0.30	131	1.00	4.22
Inferred	0.35	122	1.06	4.12
Inferred	0.40	113	1.10	4.02
Inferred	0.50	100	1.21	3.88

Notes:

CIM Definition Standards were followed for Mineral Resources.
Mineral Resources are estimated at a pit discard cut-off grade of 0.30 g/t Au.
Mineral Resources are estimated using a gold price of US$1,200 per ounce and metallurgical recovery of 95%.
Highgrade assays are capped at 25 g/t Au.
Bulk density of 2.7 t/m3 was used.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.