Highlights:

• Newly discovered high-grade tungsten occurrence
• Grab samples up to 7.68% WO₃
• Surface work in progress to define priority drill targets

Target: Tungsten – Skarn-type deposits

Photo: Surface Sample	Photo: Surface Sample with UV fluorescence

Location:

The Kidlark Project is located in south-central Yukon Territory approximately 90 kilometers northeast of the city of Whitehorse. It lies less than 20 kilometers northeast of Livingstone, an active placer gold operational area serviced by an airstrip and winter road access.

Ownership: 100%

History:

The Kidlark Property was discovered in late July 2008, and company geologists immediately staked 32 claims covering several visually impressive scheelite-bearing garnet skarn tungsten showings.

Eighteen grab samples were taken from the Property and submitted to EcoTech Laboratories in Whitehorse for testing. Assay results for the samples ranged up to 7.68% WO₃ and averaged 1.463% WO₃ with visual estimations of scheelite content by UV fluorescence correlating well with WO₃ % content. The 18 samples were taken from 5 distinct showings over 13 kilometers along a single geological contact.

Table: Grab Sample Results Kidlark Project, Yukon

Based on the promising initial exploration results, Yankee Hat expanded the property by staking an additional 70 claims. This brings the total number of claims to 102, with rough dimensions of 13 kilometers by 2 km and an area of approximately 2,100 hectares. The Company also completed detailed mapping, prospecting, silt and soil sampling, trenching, and ground magnetic work through the month of August and early September. The results of this work are pending and the company will report further once it is received and compiled.

Photo: Trenching August 2008

Already at least five distinct mineralized zones (from North to South; Wilson, Rasmussen, Davis, Brand and Arness showings) have been located in outcrop along a 13 kilometer strike length. The known outcrops are variably mineralized, but in general are characterized as garnet-diopside skarn with minor to major pyrrhotite. Tungsten is found thus far as the mineral scheelite. Typically, the mineralized area begins in barren limestone, moving through recrystallized marble, garnet-diopside skarn, a vuggy quartz-pyrite flooded zone, fluid-altered multiphase heterogeneous granite, and unaltered homogeneous granite. Scheelite also occurs within intrusive dykes.

Photos: Brand Showing

At Kidlark, the Dycer Creek Pluton intrudes into Lower Paleozoic carbonate-bearing continental platform sedimentary sequences of the Cassiar Platform. This geological setting has also given rise to the nearby Risby and Stormy tungsten deposits, as well as to the Northern Dancer tungsten-molybdenite deposit (also known as Logtung) further to the southwest.

The Kidlark discovery was made as a result of Yankee Hat’s generative tungsten exploration program with JOGMEC in southeastern Yukon Territory. The 2008 generative program had a budget of C$920,000 and is funded 60% by JOGMEC and 40% by Yankee Hat. JOGMEC earlier contributed $200,000 to the program that was used primarily for claims and acquisition of an extensive geological data base. Under the joint generative exploration agreement JOGMEC will have the right to acquire a 60% interest in the Kidlark Property, if it is deemed a Designated Property, by funding its pro-rata share of future exploration expenditures. If the property is not selected as a Designated Property, it will be 100% owned by Yankee Hat.