The road accessible Virgin Arm gold property, covering 1,047 hectares of prospective geology, is located 65 kilometers north of Gander, Newfoundland. The 42 contiguous mineral claims encompass five known gold showings with several unexplained regional gold in soil anomalies.

Gold was first discovered in region in 1987 with the discovery of gold mineralization over a three kilometer long, northeast – southwest trending structural corridor on the Virgin Arm claim block. A compilation of known gold occurrences and anomalous gold in soil/silt anomalies shows mineralization is present over five kilometers along this structural trend. Until the Spring 2010 exploration program, the property had seen limited exploration with historical work focused on sampling the known mineralized outcrops.

The Company is extremely pleased with the results of the first trenching program on the Virgin Arm gold property. This program has clearly demonstrated a widespread, previously unrecognized, gold system and has confirmed the potential for the discovery of large, bulk tonnage gold mineralization. Along with the high grade gold results over meter scale widths it has been observed that a pervasive lower grade gold halo is present in the Hank and Homer gold zones.

Three historic gold showings were initially examined during the Spring program. Work completed on the Hank and Homer zones has resulted in the discovery of a new gold bearing system. Significant gold assays, ranging from 0.50 grams per tonne (g/t) gold to 10.07 g/t gold, were received from continuous channel samples perpendicular to the exposed 410 meter long mineralized zone.

Seven trenches were completed in the Hank and Homer zones, while two trenches were completed on the Barney zone during the program. Continuous rock saw channel samples were taken from exposed bedrock in the nine trenches.

Two exploratory trenches extending 85 meters along strike length at the Hank showing returned strong gold mineralization values with the zone remaining open along strike. Outstanding gold values of 0.69 g/t gold to 10.07 g/t gold were delineated over widths of 4.50 meters and 1.12 meters respectively.

The Homer showing, located 170 meters to the west of the Hank gold zone, was examined, with five trenches extending over 230 meters along strike, with gold mineralization remaining open in all directions. Significant gold values ranged from 0.54 g/t gold to 5.40 g/t gold over widths of 4.50 meters and 1.00 meter respectively.

The Barney showing, located 3.7 kilometers to the southeast of the Hank and Homer zones, has seen relatively little historic work with the recent trenching program outlining broad zones of low grade mineralization of 0.10 g/t gold to 0.13 g/t gold over widths of 7.55 meters and 4.35 meters respectively. This distal zone demonstrates the widespread nature of the gold mineralization within this system.

An analysis of all the assay results taken from the mineralized host felsic dykes confirms the low grade halo observation. The weighted average of the 46 continuous channel samples from the Hank zone gives an average value of 0.71 g/t gold with the 72 continuous channel samples from the Homer zone giving a value of 0.45 g/t gold.

Detailed geological work has outlined several styles of gold mineralization on the property. The gold mineralized felsic dykes in the Hank and Homer zones are hosted within the structurally complex Badger Group sedimentary rocks with the felsic dykes cross cutting the stratigraphy and structure. The felsic dykes are strongly silicified with strong pervasive sericite alteration and local strong iron carbonate alteration. Gold appears to be present as free gold within the felsic dyke matrix and is also present in the pervasive quartz veins and quartz stockwork.

With outcrop being sparse across the claim block, mechanized trenching remains the most cost effective method for the early stage work on this newly discovered system. Permits are in place for continued trenching in the priority areas. Historical soil geochemical data outlines numerous high priority gold +/- arsenic anomalies that are along strike to the mineralization. Manson Creek is committed to defining drill targets for a possible fall drill program on this exciting newly discovered gold bearing system.