Allied American Steel Corp. (fka AAST)

[ALERTS100%to10000%GAIN]

AAST~~On October 21, 2011 we entered into a Services Agreement (the “Services Agreement”) with Multi-Resources Boreal (“MRB”), a Quebec corporation which provides mineral exploration services. Under the Services Agreement, MRB will provide us with prospecting, trenching, sampling and other exploration services and manpower with respect to the Lake Touladi Property located in Lyonne Township, Roberval County, in the Province of Quebec in which we have the right to acquire up to a 60% undivided interest in a certain mineral claims. MRB is also expected to assist us to implement three planned drilling programs for resource identification in 2012 through 2013.

The Services Agreement has an initial term of six months and is subject to automatic extension for successive six month periods. The Services Agreement may be terminated by either party, at any time, upon 30 days prior written notice. Each extension will be evidenced by a separate agreement which will contain similar terms to those in the Services Agreement.

Performance of services by MRB under the Services Agreement is contingent on the prior receipt by MRB on the first of each month of an expense advance sufficient to cover budgeted expenses for that month. The initial term of the Services Agreement principally relates to Part B of Phase II of our work program which is dedicated to Prospect Exploration. Part A of our Phase II Program which involved the clearing of outcrops, preparing a preliminary map of outcrops and limited channel sampling at a cost of approximately US$30,000 has been completed. Part B of Phase II is expected to run through December 2011 and involves estimated costs of US$200,000. It is intended to establish a baseline and cross section grid, and create detailed geologic mapping of outcrops. It is also intended to provide us with samplings of outcrops, permitting, trenching, building of cross sections, estimates of geologic potential, drill proposals and geologic reports. MRB is responsible for locating subcontractors including, but not limited to, heavy equipment operators, drilling companies, and assay labs. All subcontractors utilized by MRB must be approved by us. The costs charged to us by MRB are not to exceed actual cost plus 10%. We have agreed to provide MRB with reasonable support, as needed, for the services to be performed by MRB.
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