Cap-Ex iron ore projects cover an area over 121,000 hectares, located in the Labrador iron ore belt in eastern Canada. The company's priority is its Block 103 iron ore property which is 30 kilometres northwest of the mining town of Schefferville, Quebec. This wholly owned Block 103 property is strategically located near existing infrastructure and surrounded by two multi-billion tonne iron ore deposits.

The initial 2011 drilling on Block 103's "Greenbush Zone" has enabled the Company to outline a mineralized area that could host a significant magnetite deposit.

Based on the publicly disseminated 2011 drill results and airborne geophysical programs, the following interpretations can be formulated regarding the Greenbush Zone:

• The area with strong magnetite mineralization is at least 20 square kilometres in size. This Zone features very strong, coincident magnetic and gravimetric airborne anomalies, which show remarkable reliability as drilling targets. All 26 drill holes have encountered ore grade mineralisation from 45 to 265 metres.

• The average length of the core intercepts of magnetite mineralization encountered in the 26 holes drilled in the Zone is 118 metres. This number is based on assays from 21 holes and the visual estimation of magnetite content in the remaining holes. It is important to note that a number of drill holes ended in mineralization, and consequently the mineralization is open at depth. The drilling depth will be extended in the 2012 season to delineate the increase in average thickness of the magnetite mineralization.

• The average grade of the mineralization is 30.5% iron and the Davis Tube concentrate grades average 68.2% iron and 4.7% silica.

• Specific Gravity ("SG") of 3.3 is used at this time, which is the same used for the surrounding deposits.

• The mineralization starts near surface in most of the holes and is open in all directions

The "Northwest Zone" also on Block 103 was discovered from the 2011 drilling campaign. This second zone is flat lying, mostly near surface striking NE to SE approximately 2 kilometres west of the Green Bush Zone, in the northwest region of Block 103. This zone was diamond drill tested by 6 holes over 5.3 kilometres of strike, with drill spacing ranging from 300 metres to 2,100 metres. The presumed width between Kivivic Lake and the western boundary of Block 103 is between 0.5 and 1.5 kilometres. The western and northern extensions appear to continue onto ground held by Tata Steel/New Millennium Iron Corp.