Polar Star believes that a large porphyry system is the source of, and lies at shallow depth below, the three square kilometre area of alteration and mineralized breccia pipes.

The property covers a series of at least six breccias containing copper, uranium and molybdenum mineralization.

• 10 - 30 million tonne open pit ~1% Cu (ox) + U and Au in several hydrothermal breccia deposits.
• 300 - 500 million tonne porphyry style Cu-Mo (Au) deposit

Araya Breccia: Additional infill drilling is needed to establish a resource on the Araya breccia. The breccia has been mapped at surface over 1,100 metres. Shallow drilling undertaken by Polar Star in 2008 indicated a copper oxide potential in the range of 10 - 20 million metric tonne grading ~1% Cu (ox).

Two other potential areas of mineralization exist within the Los Azules property:

• other mapped breccia clusters, and
• deeper sulfide deposits cut in the RC drilling program.

However our data is too sparse at this time to suggest tonnage ranges.

Los Azules is currently under option to RedQuest Capital Corporation (see news release dated October 13, 2011) who are developing their own work program.

The Los Azules property, located 800 kilometres north of Santiago, covers the historic Los Azules high-grade oxide copper-gold mining district and is readily accessible by paved and good gravel road from the city of Copiapo sixty kilometres to the west.

The property consists of 12 exploitation concessions totalling 2,577 hectares owned by Minera Celeste and 6 exploitation concessions totalling 997 hectares owned by third parties.

The Los Azules property consists of a contiguous group of 18 exploration concessions, totalling 3,536 hectares.

Polar Star (through its wholly-owned subsidiary Minera Celeste Chile Ltda.) holds 100% title to 12 exploration concessions totalling 2,600 hectares.

The remaining six exploration concessions are owned by third parties with whom Polar Star through Minera Celeste holds option to purchase agreements whereby Polar can acquire 100% of them by making staged payments totalling US$2 million terminating in November 2012 to Hermana Araya S.A. A total of US$350,000 has been paid to date to maintain these options.

It is located 65 kilometres east of Copiapó and about 600 kilometres north of Santiago.

The Los Azules property is readily accessible by paved and good gravel road from the city of Copiapó, sixty five kilometres to the west, within the Atacama Desert region of Chile with average annual precipitation of under 10 millimetres.

The Project may be worked on year-round.

The centre of the property is located at 417,500E 6,971,000N.

The property lies along the western edge of the Cabaca de Vaca intrusive which occurs within the Late Cretaceous – Paleocene Cu-Au Metallogenic Belt of the Chilean pre-Cordilleran. This Late Cretaceous batholithic body of essentially tonalite to diorite composition invades lower Cretacious andesitic to dacitic volcanic and sediments and is host to numerous post-magmatic collapse breccias. These breccias are structurally controlled within a generally north – south regional fault zone which also forms the western margin of the Cabaca de Vaca intrusive.

The breccias tend to occur in swarms of up to 100 bodies.

These swarms are the location of a number of copper-gold mining districts, the larger being the Los Azules District.

About 100 of these breccias pipes have previously been recognized in the Los Azules District.

The property is generally underlain by tonalite to diorite phases of the Cabaca de Vaca batholiths however on its eastern and southern boundaries a generally sub-horizontal sequence of sub-areal epiclastic sediments and inter-bedded basaltic to andesitic flows overlies the intrusive.

Numerous post-magmatic hydrothermal collapse breccia pipes cut the intrusive and to a lesser extent the sediments and are distributed in clusters throughout the property.

The breccia pipes locations and form are strongly controlled by intersecting structures generally NNE –NE and NW-NNW trending. The pipes are generally enveloped by zones of strong argillic alteration in the host intrusive. This feature can be useful in locating blind pipes. In Chile, the average copper grade of similar types of breccias using bulk mining techniques is typically in the 0.7 to 1.0% range.

The property is underlain by a generally sub-horizontal sequence of sub-areal epiclastic sediments and inter-bedded basaltic to andesitic flows within the Late Cretaceous – Paleocene Cu-Au Metallogenic Belt of the Chilean pre-Cordilleran.

Numerous post-magmatic hydrothermal collapse breccia pipes cut these sediments and are distributed in clusters throughout the property.

The property covers a series of at least six breccia pipes containing copper, uranium and molybdenum mineralization.

The individual breccias pipes, which are circular to elliptical in plan, range from 5 m to 350 m in diameter. On the property at least four are over several hundred metres in diameter.

The largest of these ( the “Araya breccia” ) is some 1,100 metres long and averages 150 metres in width and is oxidized to a depth of 150 metre.

The Araya breccias has been the site of the most active mining by piquineros (artisanal miners) prior mining includes two small open cut operations, the largest being about 50 metres in diameter and 20 metres deep, exploited the copper sulpho-salts chrysocola, brochanthite and atacamite.

The Araya breccia is at the west end of a 1 km wide by 3-4 km long alteration system hosting a number of breccia bodies.

A short drill program was carried out on these breccias in 2008 by Polar Star and property wide prospecting, surface mapping and geochemical sampling programs have identified a number of the other breccias as drilling targets.

The hydrothermal mineralization of the pipes may be divided into an early fragment replacement stage, followed by open-space filling. The filling stage consists of tourmaline, accompanied by specularite and followed principally by quartz, chalcopyrite, pyrite (+/- gold), molydenite and galena. All the Azules pipes contain uranium however no uranium minerals have been positively identified to date. A zone of surface oxidation up to 100 metres deep has produced a blanket of readily leachable copper minerals including atacarmite, chrysocola, brocanthite, copper wad and copper pitch plus the molybdenum oxide ferro-molibdate.

Based on geological interpretation and the results of the reconaisssance RC program, this IP anomally appears to reflect a large body of disseminated and veinlet primary pyrite-chalcopyrite-molybdenite mineralization with significant gold, rhenium and uranium enrichment. Both the alteration-mineralization and IP chargeability zones are open to the northeast and at depth.

The mineralization is generaly hosted by an argillic to phyllic altered feldspar porphyritic felsic intusive and associated quartz-tourmaline breccias. The style of mineralization and alteration is similar to low flourine copper-molydenum porphyry systems.

Summary

Seven of the 15 reconnaissance RC drillholes (2010 drilling programme) intersected significant widths of copper, molybdenum, rhenium and gold mineralization. Five holes intersected copper oxides near surface and pyrite-chalcopyrite mineralization at depth.

• The mineralization was intersected in an area of about three square kilometres and is open to the northeast and at depth
• Discovery intercepts include 100 metres of 0.47% copper equivalent ("Cu Eq") in Hole 1, with 50 metres of 0.35% Cu Eq in Hole 8 and 82 metres of 0.45% Cu Eq in Hole 14, both of which started from surface.
• The primary mineralization is generally disseminated and veinlet pyrite-chalcopyrite-molybdenite mineralization with significant gold, rhenium and uranium enrichment hosted by an argillic to phyllic altered feldspar porphyritic felsic intrusive and associated quartz-tourmaline breccias.
• The style of mineralization and alteration is similar to low flourine copper-molybdenum porphyry systems.

History

Regional Reconnaissance Exploration

2010 RC Drilling: Between October and December 2010 a 3,693 metre 15 hole follow up reverse circulation (RC) drill campaign was undertaken.

This RC drilling program was designed to test a variety of coincident geological, geochemical and Induced Polarization ("IP") geophysical targets within a 1.5 km wide X 2 km long zone of argillic and phyllic altered porphyritic intrusives containing numerous copper-molybdenum-gold and uranium bearing quartz-tourmaline breccia pipes.

2009 – 2010 Geophysics: This area is generally underlain by three sub-zones of moderate to intense chargeability responses extending from 100 metres to over 250 metres in depth, which have never been drilled before. During December 2009 and May 2010, Quantec Geoscience of Santiago, Chile, completed 41 line kilometre pole-dipole IP/Resistivity survey over this area. The survey used 200 metre spaced NW-SE trending lines and 100 metre “a” spacing. The survey results show a moderate to strong chargeability anomaly at least 2.9 kilometres long and up to 1.7 kilometres wide that underlies the breccias swarm at depths of from 100 metres to over 300 metres. Within this anomaly there are four centres of strong chargeability which generally coincide with surface areas of mineralized breccias and or strong argillic alteration. During May and early June 2010, 200 metre spaced infill IP surveys were completed in the main anomaly. These surveys confirmed the lateral and depth continuity of the anomaly and detailed three sub-zones of intense chargeability responses extending from 100 metres to over 250 metres in depth.

2009 Geological Mapping & Sampling: In July 2009, reconnaissance geological mapping and prospecting using hand held gamma ray spectrometers was performed over most of the Company’s 100% owned tenements to the north and east of the main Araya breccia.

These surveys outlined several northeasterly trending zones of multiple breccias (92 in total) and alteration with associated copper oxides assaying up to 4.4 % Cu, 0.08% Mo, 0.29 g/t Au and 250 ppm U.

During December 2009, a 22 line kilometer IP/Resistivity survey using 400 metre spaced NW-SE trending lines was completed over this area to evaluate these trends for underlying sulfide bodies. This preliminary survey shows a moderate to strong chargeability anomaly at least 2.9 km long and up to 1.7 km wide that underlies the breccias swarm at depths of from 100 metres to over 250 metres.

Araya Breccia Exploration

2008 Diamond Driling: During the first half of 2008, Major Drilling Chile S.A. completed a 2,100 metre diamond drill program, consisting of five fences of three holes spaced at 200 metre intervals along the axis of the main Araya breccia. This program mainly tested the oxidised upper 100 metres of the breccia and returned intercepts ranging from 42 metres grading 0.67% soluble copper to 24 metres grading 1.1% soluble copper.

During the first half of 2008 a 2,100 metre diamond drill program, consisting of five fences of three holes spaced at 200m intervals along the axis of the main Araya breccia was completed. This program mainly tested the oxidised upper 100 metres of the breccia and returned intercepts ranging from 42 m grading 0.67% soluble copper to 24 m grading 1.1% soluble copper.

During June-July 2007 Polar Star personnel conducted prospecting and reconnaissance mapping programs over the larger pipes which were also checked for uranium using an Exploranium GS135 gamma ray spectrometer. All the breccias tested consistently recorded values of over 100 ppm up to 550 ppm (1.2 lbs) equivalent uranium. Three bulk samples of 50 – 70 kilograms were also taken from the main pit on the main Araya breccias. These samples were analysed by the Chilean Institute of Mining and Metallurgy and assayed from 0.64 – 3.27 % soluble Cu, 0.016 – 0.043% Mo and 106 to 1130 ppm U.

Exploration Pre-Polar Star

There are no records of recent systematic exploration in the property area however small scale mining has been carried out in the larger pipes since at least the 1930’s whenever copper prices permitted. Currently two of the larger breccias are being mined by piquineros on a small scale, about 250-350 tonnes per month, for copper oxide in the 3-5% range. However, the average copper grades for the breccias are probably in the 0.7-1.0% range. During Minera Polar’s June-July 2007 visits the larger pipes were checked for uranium using the Exploranium GS135 gamma ray spectrometer. All the breccias tested are uraniferous consistently recording values of over 100 ppm up to 550 ppm (1.2 lbs) U. Three bulk samples of 50 – 70 kilograms take from the main pit on the main Araya breccia assayed from 0.64 – 3.27 % soluble Cu, 0.016 – 0.043% Mo and 106 to 1130 ppm U.