Ajax Molybdenum Project

Starcore International Mines Ltd. has a 100% interest in the Ajax Property (“the property”). The property, approximately 1,718 hectares in size, hosts the Ajax Porphyry Molybdenum Deposit.

Location and Access

The property is located on the eastern flank of Mount McGuire, 60 km south of Stewart, B.C., 15 km northeast of Alice Arm. Alice Arm, a summer hamlet, is located on the north side of the east arm of Observatory Inlet. Kitsault, a semi-abandoned townsite located on the south side of the arm is on the B.C. Power Grid. There is good road access between Kitsault and Terrace 100 km to the south. In the 1960’s, there was a tote road from Alice Arm to the property that is no longer usable. Access is presently by helicopter.

History

Molybdenite was discovered on the property in 1965 by Newmont Mining Corp. (Newmont). Between 1965 and 1967 Newmont completed limited mapping, sampling, trenching and drilled 26 holes totalling 8100 m (26,578 feet) in length. From 1967 to 1990 minor exploration consisting of thin section and alteration studies and limited drill core sampling was completed. Starcore acquired the property through acquisition of Creston Moly from Bankruptcy in 2015.

Geology

The Ajax Property occurs along the western margin of the Stikinia Terrane of the North America Cordillera, immediately adjacent to the eastern margin of the Coast Plutonic Complex. The property is underlain by Jurassic Hazelton Group rocks consisting primarily of argillaceous sediments and minor interbedded andesite tuffs that locally has been intruded by four closely spaced stocks of quartz monzonite porphyry. The Ajax deposit occupies a rectangular area approximately 650 m x 600 m that ranges in elevation from 425 masl to 1050 masl. The mineralization is predominantly pyrrhotite and lesser molybdenite that typically comprises less than 2% of the rock by volume. Molybdenite is typically associated with quartz and occurs in pyrrhotite-bearing veinlets, in thin stringers and on fracture and shear surfaces. Areas of elevated molybdenite grades (>0.060% Mo) are characterized by a high fracture density where quartz vein stockwork is well developed. Lower grade material (0.030 to 0.060 % Mo), is found in areas of weaker fracturing and forms a broad halo around the higher grade zones, especially below the 762 m elevation contour.

Exploration at Ajax was concentrated in two drilling programs completed by Newmont Mines in 1967-68 (26 holes-8100.9 metres) and Tenajon Resources Corp 2005-2007 (22 holes-7258.6 metres). Following the 2007 an updated resource calculation was completed by Giroux Consultants the results of which are summarized below.

AJAX DEPOSIT RESOURCES (2008)

AJAX PROPERTY- INDICATED RESOURCES

Mo Cutoff

Tonnes> Cutoff

Grade > Cutoff

(%)

(tonnes)

Mo %

Million lbs Mo

0.04

69,000,000

0.065

98.9

0.05

57,670,000

0.068

86.5

0.06

41,220,000

0.074

67.3

0.07

19,940,000

0.084

36.9

0.08

9,090,000

0.095

19.0

0.09

5,300,000

0.104

12.1

0.10

1,930,000

0.118

5.0

AJAX PROPERTY-INFERRED RESOURCES

Mo Cutoff

Tonnes> Cutoff

Grade > Cutoff

(%)

(tonnes)

Mo %

Million lbs Mo

0.04

483,120,000

0.061

649.8

0.05

421,950,000

0.064

595.5

0.06

260,260,000

0.069

396.0

0.07

85,990,000

0.079

149.8

0.08

32,040,000

0.088

62.2

0.09

9,270,000

0.100

20.4

0.10

4,410,000

0.106

10.3

Source: Sections 16-18 of a proposed but not completed Technical Report. 43-101 Report detailing resource increase not required as resource increase was less than a 50% increase from the last technical report. Resources estimate completed by G.H. Giroux, P. Eng, Giroux Consultants. Tenajon News Release dated May 15, 2008 summarizes the backgound data for the resource estimation.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. An Inferred Mineral Resource is that part of Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade of quality continuity. An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. A measured Mineral Resource is that part of a Mineral Resource for qhich quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.