In June 2003, the Company entered into an Option Agreement with Teck-Cominco (“Teck”) to earn their 50% - 53% interest in approximately 3,074 acres called the Lamaque Project located at Val d’Or, Quebec. The property lies immediately to the south of the two largest gold mines in the Val d’Or area, the Lamaque Mine and the Sigma Mine which have collectively produced over nine million ounces of gold. The property is subject to joint venture agreements with Golden Pond Resources Ltd. and Tundra Gold Mines Limited, both inactive British Columbia corporations. Tundra and Golden Pond have declined to participate in further work on the Lamaque Project, resulting in a dilution of their working interest.

Since September 2003, Kalahari has conducted extensive exploration work on the Lamaque Project including geochemical and geophysical surveys to define targets and the drilling of 73 holes totaling 61,097 feet. Two new zones of mineralization have been discovered; the Sixteen Zone on the west side of the project where 31 holes have been drilled and the Forestel Zone on the east side of the project where 12 holes have been drilled. While both of these areas remain areas of interest, the Company intends to continue work on these showings. The Company has tested 15 of its 29 targets developed on the project.

In the Conclusions and Recommendations section of a technical report prepared by Watts, Griffis and McOuat and SEDAR filed on October 20, 2004 it is states “WGM considers that the Property has excellent potential for further discoveries of economic gold mineralization and that the fundamental control on mineralization is structural.”

In January 2007 the Company concluded a five hole drill program. The program tested three targets: the Estel Zone, the Roc d’Or East zone, and the 16 Zone North. The results of the program can be found here.  The company has recently completed a 10,000 foot drill program consisting of ten holes on the Roc d’Or East claim group.  Two drill holes tested a magnetic anomaly and a third drill hole tested a VTEM anomaly.  Seven drill holes tested the Triangle Zone where 2006 drilling encountered several gold showings as described in a News Release dated February 8, 2007.  The Company awaits assay results on this drill program and will release all results when received. 

Additionally the company is planning an additional 20,000 foot drill program. Several untested targets plus extension drilling on known gold zones will be tested.  Winter drilling will test areas of the Triangle Zone after freeze-up where targets are below swampy ground.