Agreement

In September 2007 the Company concluded a four-year staged option agreement with Lysander Minerals Corporation on the 9002-hectare Osilinka-Cat Mountain copper-gold prospect located in north-central British Columbia. Cadillac may earn a 50% interest in the property and retain operatorship of a subsequent joint venture by expending $2,000,000 on exploration, and pay Lysander 250,000 Cadillac shares.

The Company has issued Lysander 50,000 of its shares as a first installment and must expend $350,000 on the property by the end of 2008. To date more than $300,000 has been spent. The property is not subject to underlying royalties.

Location

The Osilinka claim group, situated about 170 km northwest of Mackenzie, is readily accessible via the Kemess mine road and lies within a geological trend referred to as the Quesnel Trough. This broad metallogenic province is host to the Kemess, Mount Milligan, and the recently discovered (and nearby) Kwanika deposits. (See Location map)

Geology & History

Cat Mountain mineralization consists of alkalic intrusion-hosted copper and gold-bearing disseminated sulphides accompanied by disseminated to semi-massive magnetite.

Modern exploration, which dates to the acquisition of the prospect by BP Minerals in 1975, includes mapping, geochemical and geophysical surveys, trenching, and core drilling. This work has outlined strongly elevated Cu and Au values covering an area roughly one kilometer in diameter centered on Cat Mountain. Much of the previous drilling (See Magnetics map) focused on the Bet Zone on the west of this area, revealed a broad zone of sub-economic disseminated pyrite, chalcopyrite and magnetite in a porphyritic, mainly fragmental rock exhibiting intense K-feldspar alteration. Several drill holes intersected semi-massive mineralization over variable widths ranging to about 6 meters within envelopes of low-grade copper. These magnetite-rich 'core' features often carried copper values greater than 1%, but were too widely spaced to demonstrate economic potential.

2007 Program

Seven NQ caliber core holes, 07-18 through 07-24, comprising a total of 1297 meters, were drilled by Cadillac in October to test 300 meters of a northerly trending copper-gold geochemical anomaly that appeared to follow a suspected intrusive having potential for classic "porphyry-style" mineralization. Mineralized sections of core were split by diamond saw and were submitted for multi-element analysis.

All drill holes intersected significant mineralization, ranging from geochemically anomalous copper to semi-massive sulphides associated with considerable magnetite. DDH 07-21 intersected 5.15 meters of semi-massive chalcopyrite, pyrite and magnetite which returned 5.7% Cu and coincident gold, silver and cobalt values grading 3.1g/t, 4.6g/t, and 500ppm respectively. This intercept includes maximum values of 9.9% Cu, 5.8g/t Au and 0.09% Co over 1.5 meters. Two other drill holes, DDH 07-18 and 07-24 intersected very strong to massive pyrite-chalcopyrite-magnetite mineralization over widths ranging from 1.5 to 3.5 meters that returned copper values between 1.5% and 1.9% Cu. (See February 26, 2008 News Release for details) Elevated gold, silver and cobalt tenors ranging to 2.1g/t,16g/t and 850ppm respectively, are seen in these zones generally, but do not correspond directly with highest copper values.

Potential

A recently completed airborne magnetic survey revealed evidence of structure and alteration patterns not previously recognized of particular interest are high-gradient lineaments that coincide with the Cat Mountain geochemical targets obtained through earlier work. These show mainly as strong north-west trending features extending well beyond extensively tested known showings (See Vertical Magnetic Gradient map). All historical drilling completed on the Bett and Hoffman Zones are confined to small segments of these broad lineaments. Cadillac intends to conduct a detailed ground based magnetic survey over the most prospective zones to obtain detailed information from which to initiate target specific diamond drilling. Nearly all historical work focused on coincident gold and copper soil anomalies covering a very small area. Cadillac recognizes that deep glacial over-burden obscures a major portion of Cat Mountain and that geochemical methods are likely to be of limited value over much of the study area. However, significant cobalt values are intimately associated with high-grade copper-gold intersections recently obtained, and a strong cobalt anomaly situated on the south-east flank of Cat Mountain remains untested.

Following a preliminary review of results, Cadillac concludes that mineralization on the Osilinka-Cat property is inconsistent with the classic porphyry model. However, the potassic alteration envelope recognized through earlier exploration, combined with mineral associations observed in current work are indicative of an Iron-Oxide Copper-Gold (IOCG) deposit type that offers potential for both large low-grade, and smaller high-grade deposits. This concept is a departure from the exploration philosophy that has directed past work on the property, and offers a fresh perspective with considerable exploration potential, as evidenced by the exceptional values contained in DDH 07-21.

2008 Program

An airborne magnetic survey completed by property optionor Lysander Minerals earlier in 2007 is being reprocessed to extract high-gradient trends. These structurally related features are expected to reflect the geometry and extent of magnetite-rich zones, which Cadillac believes key to understanding mineralization, and to the targeting of further exploration.

All historical geological data has now been assembled and will soon be integrated in a single data-base. A focused high-definition ground survey is planned for early in the coming field season to refine magnetic patterns identified by the airborne survey. This work should progress to diamond drilling in early summer.