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MANAGEMENT’S DISCUSSION and ANALYSIS For the Nine-Month Period ended November 30, 2008

Nature of Activities

The Company specializes in searching for gold and base metal deposits in almost unexplored territories of Quebec. Most of its activities take place in the central part of Quebec, particularly in the James Bay area, which comprises several Archean greenstone belts known as being very favourable to the presence of economic gold and base metal deposits.

This region differentiates from others by its accessibility and by the existence of clear agreements ruling the access to the territory.

Acquisition of a 100% interest in the Coulon JV property

On December 11, 2008, the Company announced the execution of an agreement with Breakwater Resources Ltd (“Breakwater”) pursuant to which the Company will acquire Breakwater's 50% undivided interest in the Coulon JV property in consideration for the issuance of 1,666,666 shares of the Company to Breakwater.

Under the terms of this agreement, Breakwater does not retain any interest or royalty in the property. The Company thus becomes the sole owner of the Coulon property.

The Company also undertook to secure, at closing, the simultaneous resale of 1,666,666 shares of the Company owned by Breakwater at a price of $2.85 per share ($4,750,000) in favour of third-party buyers and in compliance with all applicable securities regulations.

Liquidity and Financing Activities

As at November 30, 2008, cash and cash equivalents amounted to $9,900,618 compared to $8,665,254 as at February 29, 2008. From the management’s point of view, the working capital as at November 30, 2008, will cover current expenditures and exploration fees for the next following years. However, it is not excluded that the Company may, from time to time, when market and financing conditions are favourable, go ahead with fundraising to fund exploration of its most important mining projects.

On June 5, 2008, the Company completed a private placement for gross proceeds of $4,500,000 that will be used mainly for exploration on the Coulon JV project

Disclosure of Outstanding Share Data

The Company can issue an unlimited number of common shares, without par value. As at January 13, 2009, 29,201,776 shares are outstanding.

The Company maintains a stock option plan under which stock options may be granted up to a maximum of 10% of the number of shares outstanding. As at January 13, 2008, 1,565,250 stock options are outstanding. Their expiry date varies from April 6, 2011 to July 14, 2018.

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