The following text has been excerpted from the Oct 15th 2012 43 101 report

In August and September 2008 Sego conducted its initial diamond drilling program of 10 NQ diamond drill holes totaling 1,039.89m. In 2009 three HQ diamond drill holes totalling 496.45m were completed, two in the South Zone and one in the Granby Zone. In 2010 seven HQ diamond drill holes totaling 1,001m were completed in the Granby Zone. In 2012 eight HQ diamond drill holes totaling 1622m were completed, which were generally successful in confirming 2011 percussion holes that intersected significant copper and gold mineralization. Holes MM-12-22 and MM12-25 were abandoned due to poor ground and did not adequately test the intended target. From 2008 to 2012 Sego completed 28 diamond drill holes totaling 3119.55m.

On March 1st 2011 Sego started Phase 1 percussion drilling, designed to determine the extent of the mineralization encountered in trenches 95 and 96, diamond drill hole MM-10-19 and to penetrate the leach cap encountered in trenches 97 and 98 with 34 holes totaling 2002m completed. Phase 2 and Phase 3 percussion drilling were completed from July 25th to August 20th 2011 and from November 21st to December 3rd 2011 with an additional 68 percussion holes totaling 5266m.The Phase 2 and Phase 3 2011 percussion drilling (Watson, 2012) further tested the Cuba Zone IP anomaly toward the northwest and southeast and expanded the mineralized zone intersected in the Phase 1.

After 2010, based on the intercept of MM-DDH 19 (27.43m of 0.42% Cu 0.3 g/t Au 1.45 g/t Ag), and numerous mineralized/oxidized trenches, the decision was made to test the IP anomaly to the south of the Granby zone. This arcuate anomaly (informally known as the “Cuba Zone”) was drilled with 102 percussion drill holes over 2011 and this program succeeded in locating a new zone of mineralization with a strike of 600m and an average width of 200m. Diamond drill testing in early 2012 yielded the best drill hole drilled to date on the property and confirmed the efficacy of percussion drilling as an exploration tool.

The 2008 diamond drilling consisted of three holes on the Regal Zone and all had very poor recovery of strongly oxidized landslide rubble or till. Hole 08-03 bottomed in carbonaceous mudstone of the Princeton Group. These three holes confirmed the result of the 1963 work by Climax Copper Co. Ltd. which indicated that the oxide layer at Regal is landslide material that rests either on till or directly on tertiary sediments.

The other seven holes were all drilled on the Granby Zone. They intersected variably altered and mineralized microdiorite and Nicola volcanic rocks. Two holes, MM-08-04 and MM-08-09, had to be abandoned prematurely due to drilling difficulties, both bottoming in good grade mineralization. Significant intersections are summarized in Table 10.2 and locations shown on

The other 8 holes confirmed the nature and grade of the percussion drilling, and extended copper mineralization down to 300m. The zone currently remains open in all direction and at depth.

The 2009 diamond drilling consisted of two holes from one site in the South Zone (MM-09-12 & 13; Figure 10.3) and one hole in the Granby Zone (MM-09-11; Figure 10.1). Vertical hole MM-09-11 contained 62.79m (15.85-78.64m) grading 0.36% copper, 0.17 g/t Au, and 2.52 g/t Ag. To the north of MM-09-11, holes MM-10-14 and MM-10-15 were weakly mineralized and hole MM-10-17 approximately 100mE encountered strongly altered rock with elevated copper-gold but no significant grades. A gypsum-pyrite-albite±clay assemblage encountered in holes 8, 10, 11, 14, 16 and the remains of some1997 and 2000 core was suggested by Preto (2011) to bound better metal grades.

Northerly directed DDH MM-10-19 was collared some 300m SSE of MM-09-11 to test below mineralization in trench 95 and cut barren, maroon volcanics at the south end of trench 95. The hole crossed a fault and entered mineralized microdiorite at about 67m and from 66.69 to 127.1m (EOH) graded 0.27% copper, 0.16 g/t Au and 0.72 g/t Ag. The good results from MM-10-19 influenced the location of the 2011trenching and Phase 1 percussion drilling program. 34 holes at about 30m spacing tested a 300m east-west and 125m north zone from the intersection in MM10-19. Five Phase 1 percussion holes (02, 09, 15, 21, and 34) contained significant copper gold intervals (Table 10.7) which contributed to a better understanding of mineralization trends and controls, Phase 2 and Phase 3 percussion drilling resulted in 22 of 68 holes with significant intervals and established targets to be tested by the 2012, 8 DDH program.

Eight diamond drill holes totaling 1622m were drilled in February 2012 (Table 10.3; Figure 10.1). The purpose of 2012 HQ core holes was to confirm percussion holes that intersected significant copper-gold values and to compare diamond drill results with percussion results by twinning holes. DDH 12-22 and DDH 12-25 were abandoned, due to bad ground before reaching the intended target. Seven of the eight holes, including abandoned hole DDH12-25, contained significant reportable intersections (Table 10.4; Figure 10.1). The best intersection was in vertical hole MM12-DDH-21 which contained 100.39m averaging 0.95% copper, 0.55 g/t gold and 3.47 g/t silver (including 35m from 10.06 to 45.11m averaging 2.46% copper, 1.357 g/t Au, and 8.90 g/t silver). Long intersections of reasonable grade were also obtained from diamond drill holes 24, 27, and 28 (see Table 10.4).

PAC believes that the 2012 diamond drilling program was successful in confirming the mineralization and grades intersected in 2011 percussion drilling and where percussion drill holes were twinned by 2012 core holes, the core geochemistry was at least of 10% higher grade than percussion cuttings. The diamond drilling generally confirmed the depth and grades reported for percussion holes but core holes 25 and 26 intersected narrow high grade chalcopyrite-bornite breccia mineralization that may have been spread by PDH 94.

On March 01 2011 Sego began a phased program of percussion drilling, designed to determine the extent of the mineralization encountered in trenches 95 and 96, and diamond drill hole MM-10-19 and to penetrate below the leached cap encountered in trenches 97 and 98. A Phase 1 program of 34 holes Totaling 2002 meters was completed (Table 10.5; Figure 10.2 a&b) with five holes containing significant results (Table 10.7). Phase 1 success provided incentive for Sego to continue later in 2011 with Phase 2 and Phase 3 percussion drilling programs. The hole locations are shown in Figures 10.2a & b and significant results from 22 of the 68 Phase 2 and 3 holes are summarized in Table 10.7. The best Phase 2-3 percussion holes were PDH-68 which contained 26m grading 0.842% copper and 0.834 g/t gold and PDH 94 which contained 82m to EOH grading 1.006% copper and 0.576 g/t gold. Percussion drilling has proven to be a cost effective method of tracing mineralization on the MMP with continued use recommended to allow more effective employment of diamond drilling