The option agreement calls for the issuance of 500,000 common shares (200,000 issued) and cash payments totalling $100,000 ($20,000 paid) over 48 months. The optionor will retain a 2% Net Product Returns royalty from the production of gemstones, half of which may be purchased by the Company for $1,000,000 upon commencement of commercial production. Additional claims adjacent to those originally optioned have been acquired for Cream by staking.

Introduction

After Cream discovered ice blue to deep greenish-blue beryl crystals (aquamarine) on its Kootenay Gemstone Property, additional claims, now covering over 5,000 hectares were staked along the 23-kilometre length of the favourable contact area. This contact area hosts classic beryl mineralization in pegmatites and quartz veins.

During the initial prospecting, claim staking and sampling program widespread beryl mineralization was identified within abundant pegmatite dykes located in both granitic and sedimentary rocks. Ice-blue beryl crystals are the most common, followed by greenish beryl crystals, with minor clear, white and yellow beryl crystals also being found.

Beryl gemstones include, Aquamarines that are greenish-blue in colour, and Emeralds which are green in colour. These beryl gemstones are also generally classified into three categories according to quality: gem quality is transparent; near-gem quality is translucent; non-gem quality is opaque. On Cream's Kootenay Gemstone Property, all three categories of Aquamarine crystals have been discovered. So far, in this very early exploration stage, only near-gem and non-gem Emerald crystals have been found.

Physiography

The Kootenay Gemstone Property is located in an area of rugged terrain. Topography on the property is steep with elevations ranging from 532 metres at Kootenay Lake to 2,285 metres on the peak of Iguana Mountain in the south central portion of the claim area. Outcrop is somewhat limited on the property generally confined to steep creek gullies or road cuts, with more prevalent outcrops on ridges and steeper slopes.

History

Very little historic information can be found on the beryl mineralization in this region. Rice (1941) reported the occurrence of blue-green beryl crystals, with garnet, tourmaline and magnetite in pegmatite dykes south of Midge Creek (MINFILE 082FSE091).

Geology

The Shaw Creek stock is a late Cretaceous, 130 square kilometre intrusion composing the central to southern one-third of the middle to late Cretaceous multiphase Bayonne Batholith. The stock is typically light grey to pinkish-grey biotite +/- hornblende granite with abundant K-feldspar megacrysts averaging 2 to 3 centimetres. Leucoquartz monzonite is locally abundant.

Detailed prospecting and mapping on the OMG and Topaz Claims in 2003 and 2004 revealed three distinct styles of beryl mineralization. Beryl crystals on the OMG claims are of variable quality, consistently blue to bluish-green and relatively abundant (locally up to 10% of pegmatite volume). The majority of the beryls are found within the matrix of the pegmatite veins and dykes. However, the most impressive specimens were discovered in later stage quartz veins containing minor molybdenite and significant open spaces (vugs). Perfect millimetre scale transparent, light greenish-blue aquamarine crystals have been found within the open vugs, in these veins.

It has been demonstrated that litho geochemistry and soil geochemistry techniques have been successful at defining potential targets and due to the fact that the Shaw Creek Stock is still relatively unexplored, additional work is warranted on the Kootenay Gemstone Property. The Company is actively seeking a joint venture partner with gemstone experience to assist in development of this property.

Ms. Linda Dandy, P.Geo., of P&L Geological Services, is the Company's project supervisor and "Qualified Person" for the purpose of National Instrument 43-101.