White Gold North Project

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White Gold District Yukon, Canada

Highlights

• Soil gold assays run up to 1,030 ppb gold, or 1.03 g/t. The suite of elements that are often found in association with the gold mineralization are referred to as pathfinder elements. Pathfinder elements indicative of a gold system similar to Kaminak's Coffee project are present on Comstock QV claims.
• The gold and the associated anomalies are of the same strength as at Kaminak's Coffee project.
• The strong Geophysical magnetic anomaly present on the Coffee project and Kinross's ground is also present on the Comstock claims.
• Multiple zones of high gold (Au) values associated with the pathfinder elements such as high arsenic (As), mercury (Hg), antimony (Sb), and barium (Ba) indicate a large mineral potential.
• Two anomalous zones measuring 2600 m and 1530 m long, respectively, and are both open.

Shawn Ryan / Comstock Option:

Comstock Metals Ltd. QV claims (7,100 hectares or 17,450 acres), located 78 km south of Dawson City in Yukon Territory, were optioned from Yukon prospector Shawn Ryan in June 2010. Shawn Ryan was instrumental in the discovery of Kinross Gold's Golden Saddle Deposit, which hosts 1.50 million ounces of gold in the resource category, and he also helped Kaminack Gold in the discovery of their flagship Coffee Project. The QV claims are contiguous with the Kinross gold discovery claims to the north. Shawn Ryan identified that the geophysical magnetic anomaly on the Kinross and Kaminak properties was also present on the QV claims. The results of a twoline soil-sampling program in 2010 had been compared to his entire database of 32,000 soil samples taken throughout the area and, in terms of pathfinder elements, were among the top 5 percent, including the two gold discoveries immediately south of the QV claims.

Geochemical Surveying:

Traditional hand auger geochemical sampling by Shawn Ryan's trained crew to date on Comstock's QV claims have identified several large anomalous areas consisting of high gold (Au), arsenic (As), antimony (Sb), mercury (Hg), and barium (Ba) similar to that found on Kinross/Underworld's Golden Saddle and Kaminak's Coffee, where follow-up exploration including drilling led to the discovery of gold deposit(s). On Comstock QV property, 4,316 ridges and spur and grid-based soil samples have been collected, and results have outlined several anomalies. The grid soil geochem surveys have identified two obvious gold trends supported by very strong pathfinder elements, found in association with gold systems in general and in the White Gold District in particular. These pathfinder elements include As, Sb, Ba, and Hg. Two trends have been identified through the detailed grid (100 m by 50 m) soil sampling, namely:

• QV trend of north-easterly orientation measures 2600 m in length and open along the trend. Gold values range from detection limit to 1030 ppb (1.03 g/t Au). This trend lines up with a break in the magnetic highs. Please refer to the figure.
• Stewart trend of north-westerly orientation measures 1530 m in length and open. Gold values range from detection limit to 274 ppb. This trend lines up with very strong magnetic lows similar to the magnetic lows of Kaminak's Coffee project. Please refer to the figure.

"C" Horizon Soil Sampling:

Since the White Gold District of the Yukon is unglaciated, gold and associated minerals here have not been transported by glaciers and are therefore in situ. For this reason, "C" Horizon soil sampling (soil samples taken near the bedrock layer) is the key to identifying gold deposits. This technique has already resulted in two major gold discoveries in the White Gold District, namely Kinross's Golden Saddle deposit (contiguous with and along trend with Comstock's QV Claims) and Kaminak's Coffee deposit.

These results indicate that the size and intensity of the QV claim soil anomaly is one of the strongest new gold-in-soil anomalies in the White gold district. The Company considers these results significant as, in this non-glaciated part of the Yukon, soil geochemical anomalies are indicative of the rocks below it; hence these anomalies are deemed in situ.

Comstock is preparing for follow-up soil sampling program to infill the gaps between the soil sample lines and to better understand the size and mineral potential of the underlying rocks.

Airborne Geophysical Program:

Precision Geophysics of Vancouver, BC, flew an airborne geophysics survey consisting of 769 line-kilometres at 100 m line spacing over the property in August 2011. This survey collected both magnetic and radiometric data that will help the Company interpret the regional geology and structure of the area. Intense magnetic lows, interpreted as structures trending in both north-westerly and north-easterly directions, have been identified from this geophysics survey. This response is similar to that encountered at Kaminak's Coffee property. Both magnetic lows and magnetic highs align with the gold-in-soil geochemical trend.