SWAMP POINT

Donahue Creek

Loadout Location

COMPANY INFORMATION

Sector: Resources

Property Type: Construction Aggregate

Stock Market Symbol: TSXV: HBK; Frankfurt: V7O

52-Wk Trading Range: C$ 0.025 - C$ 0.13

Shares I&O: 73,693,999 (as at August 20, 2013)

Market Capitalization: C$5.2 million (approx.)

COMPANY OFFICERS• Victor Bryant, I.Eng; MAusIMM. - President/CEO

• Forty four years in the mining industry – Plant Design; Commissioning and Operations with Anglo

American; Fluor; Wright Engineers, and Ausenco

• Major Plants: Colomac Gold Mine, NWT – Lead Metallurgical Engineer/Commissioning Manager

• Alumbrera, Argentina, 60,000 tpd Copper/Gold –Post Commissioning

• Batu Hijau, Indonesia, 120,000 tpd Commissioning Manager

• Project Engineer, CVRD Samarco Iron Ore Expansion, Brazil

• Other operations in Zambia; Ghana; Philippines – Plant Manager

• Gary Musil, Diploma B.A.; 3 yrs. CGA. - CFO• Over 32 years experience in the mining industry – Financial and consulting capacities

• Officer and director in numerous public companies since 1988

• Managing all financial controls for projects in S. America; Eastern Europe and across Canada

• Financial controller for Dickenson Mines Ltd. and Kam-Kotia Mines Ltd.

• Director and Financial Controller of Highbank Resources since 1988

DIRECTORS

• Luard J. Manning, P.Eng; Director and President of L.J. Manning & Associates

• Life Member B.C. Professional Engineers and CIMM.

• Fifty years of mining experience in operating underground and open pit mines

• Has supervised and critiqued mine engineering designs including Brandywine operation of Northair; the Ruth Vermont project for Columbia River Mines and the Rabbit Lake mine for Gulf Minerals

• Work experience in Latin America; Canada, and U.S.A.

DIRECTORS – cont.

• Jim Place, P.Geo.

• Successfully managed gravel operations in the north-west region of BC for 10 years.

• Supervised road construction, exploration sampling, testing and development of aggregates sources throughout B.C.

• Conducted quality assurance for quarried stone products used in a major BC port project.

• Advised publically traded companies in America and Mexico regarding site selection and evaluation of numerous deposits

PROJECT LOCATION• East side of Portland Canal

fjord on protected, year round ice free tidewater

• Site access by helicopter, float equipped aircraft, or boat

• 78 miles by sea north of Prince Rupert, closest West coast port to Asian markets by 33 hours • 38 miles south of the Port of Stewart & 35 miles North of Grassy Point also a potential new LNG terminal site

PROJECT LAND TENURE

• Total Land Tenure

• Small area only to be used

• Major position for potential expansion in 10 years if required

• Foreshore tenure also obtained for smaller area and loadout

PROJECT SCOPE

• Gravel extraction from the Swamp Point North deposit to supply markets in NW British Columbia

To ship 235,000 tonnes per year of construction quality aggregate for construction projects in the Prince Rupert area and Liquefied Natural Gas (LNG) projects

Anticipated local market will sustain operations for at least 10 years

Major expansion potential if the market demand requires.

Future shipments to the U.S.A.

FIVE YEAR MINE PLAN

SITE PLAN – YEAR 5

LOADOUT LOCATION

LOADOUT SECTIONS

Conveyor Longitudinal Section

Loadout Dolphin Arrangement

OPERATIONS

Mine Manager – Stan Spletzer

• Twenty six years contracting for road building, logging, and site preparation for a number of forestry operations

• Operated a gravel pit in Abbotsford for six years – zero regulatory infractions during this period

• Previously partner in Western Concrete until sell out in 2010

• Trained operators for bulldozers, FEL’s and trucks

• Plant operators and barge loading

WASH PLANT FLOWSHEET

WATER

MANAGEMEN

T

SEDIMENT AND EROSIONCONTROL MEASURES

• Run-off collection pits located strategically within the mining areas

• Run-off from affected areas outside of mine location diverted to settling ponds

• All wash plant water settled and re-cycled

• Diversion ditches rip-rapped in locations of high flow velocity

• Use of silt fences and large radius ditches to reduce sediment in runoff

• Catchment pond water returned to site or discharged if free of sediment

• Water collection sumps exfiltrate or pumped out through silt bags

Typical silt bag

FIRST NATIONS

• Metlakatla Cooperative Agreement Signed November 2012

• Information on current project plans provided to Nisga’a and Metlakatla in 2013.

• Ongoing invitations for discussions in 2013 and 2014.

• Highbank will offer training opportunities to First Nation nominees through certified programmes

• Initial Nisga’a Meeting 2008 Discussing Project and Opportunities

PROPOSED SITE FACILITIES/EQUIPMENT

• Complete 10 man work camp

• Barge load out

• One excavator @ 226 HP ea. (170 kW)

• Two thirty tonne trucks @ 285 HP ea. (210 kW)

• One D8 Bulldozer @ 300 HP (220 kW)

• One D5 Bulldozer @ 100 HP (75 kW)

• Portable Crushing & Screening Plant @ 110 kW

• Camp Site generator @ 300 kW

• TOTAL ESTIMATED kW’s OPERATING @ 80% eff. = 1,036 kW

(Equivalent of eight medium sized family cars)

MANAGEMENT PLANSEHSMS – Environmental, Health & Safety Management SystemA - Occupational Health and Safety PlanB – Mine Emergency Response PlanC – Sediment and Erosion Control PlanD – Hazardous Materials Handling PlanE – Fuel Management and Spill Contingency PlanF – Water Management PlanG – Waste Management PlanH – Reclamation PlanI – Road DesignJ – Mine Development PlanK – Traffic PlanL – Invasive Species Management PlanM – Barge Load-out and Marine Safety PlanN – Chance Find ProcedureO – Wildlife Management Plan

RECLAMATION PLAN

• Overburden (est. 0.5 m thick) stripped and stockpiled as mining progresses

• Concurrent revegetation where possible

• ~6.4 ha total disturbed area re-covered with overburden, seeded and planted with native trees

• At project completion equipment, camp; conveyors; equipment removed

PERMIT DISCUSSION STATUS

• Department of Fisheries and Oceans

Initial enquiry to establish any concerns or impact on aquatic habitat

• Transport Canada – Navigable Waters Protection

Conceptual plans reviewed and positive preliminary response received regarding little impact to shipping

• Archeological Survey conducted with First Nations representatives and Kleanza Consulting Ltd.

No evidence of ancestral remains or habitation found

• Forestry assessment carried out in 2009

Very little timber of value – but will require re-assessment

WORK PLAN

Following issue of the Notice of Work the following action plan will commence:

1) Carry out assessment of timber value and clear once permit is issued

2) Commence application for DFO and Transport Canada permits

3) Rehabilitate existing camp and facilities

4) Start site stripping for first mining phase, including construction of sediment collection ponds

5) Construct load out facility and bring plant equipment to site