Diamond Lake Minerals Inc. (DLMI)

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Assessment work has been carried out on 3 main areas. The graphite is hosted in calcitic marbles. The marble units are highly contorted due to intense folding. The strong deformation has produced highly enriched graphitic zones, especially at the apex of folded units (King, 1994). Background graphite content in the marbles is in the order of 0.5 to 1 per cent, with mineralized zones containing over 5% visible graphite. The mineralized zones have assayed a total carbon content of 7 to 20 per cent, (Easton, 1997). The graphite is amorphous. Two mineralized horizons are present, with a strike length of 200 to 300 meters, and a width of 1 to 3 meters. Pods of graphite, 1 to 3 meters are contained in the marble on either side of the main mineralized zone. The zones appear to be offset by a fault on their western extent and appear to be part of a regional synformal structure, that plunges to teh west, (Easton, 1997). The main area is known as the meadow zone and is located in the SW part of the property. To date 5,330 meters have been stripped.

This property is valuable no doubt about that.