In preparing the Technical Report, Caracle Creek of Sudbury, Ontario used data available from exploration drilling programs completed by the Outokumpu Mining, the Geological Survey of Finland and Taranis. Caracle Creek completed a site visit, extensive quality control, specific gravity determinations and geological modeling to provide the Resource Estimate.

The KSZ is one of two near-surface gold-bearing areas at Kettukuusikko. A second, recently discovered zone called the Kettukuusikko North Zone ("KNZ") is located 600 m to the north of the KSZ and has only had minimal drilling conducted.

KSZ Geological Resource Estimate

Resources in the KSZ were estimated using 49 drill holes completed by Taranis and 13 historical drill holes completed by previous owners. Owing to the tight drill spacing that was completed on the KSZ, most of the Resource estimate is in the Indicated category, and provides a much higher level of confidence than the Inferred category typically found in exploration projects.. A cut-off grade of 0.2 g/t Au was used as the base case of the resource estimate. The following table summarizes the gold-bearing resource of the KSZ at various cut-off grades:

KNZ Geological Resource Estimate

Resources in the KNZ were estimated using 10 holes from a drill program conducted by Taranis Resources Inc. Geologically, the KNZ has many similarities to the KSZ including the same "carb" host rock, but has several intriguing differences, including a higher-temperature assemblage of minerals including arsenopyrite and pyrrhotite, and much thinner zones of high-grade gold. Gold is associated with quartz veining, and includes 14.62 g/t Au / 2.45 m (K-28) and 111.15 g/t Au / 0.42 m (K-12). The resource estimate is based on a limited amount of drilling, and Taranis feels that the Resource is open to considerable growth with further drilling.

A significant amount of geophysical exploration work was completed in the summer of 2011 that attempt to understand the geology of the KNZ, and has led to the exciting possibility that the Kiistala Shear Zone that hosts Agnico-Eagle's Kittil� Gold Mine 20 km to the northeast may intersect the Sirkka Shear Zone ("SSZ") in the KNZ.

Discussion of Results

The KSZ is just one of several gold deposits that occur in a belt of ultramafic rocks 15 km northeast of Kittil�. Three km south of the KSZ, the Hirvilavanmaa gold deposit occurs along the SSZ and is owned by Lappland Goldminers Oy. This deposit is significantly smaller, and has a Resource of 110,000 tonnes at 2.9 g/t Au (11,252 Ounces Au) and was partially mined in 2006..

The geometry and near-surface nature of the mineralization in the KSZ, make it an ideal open-pit deposit that could be mined at low cost. Both the KSZ and KNZ are located within 1 km of a secondary road, and within 3.5 km of a major paved road. It is 25 km by road to Agnico-Eagle's Kittil� Gold Mine. Kettukuusikko is only 8 km by road to Taranis' Naakenavaara copper-gold project that has the potential of becoming a major copper-gold deposit.

John Gardiner, President and CEO states "The KSZ Resource Estimate serves as a foundation to move northward and now explore the high-grade KNZ where we have assembled a first-rate exploration target. Some geological detective work has led Taranis to believe that the KSZ is faulted-off portion of a potentially much larger deposit that is located in KNZ. Taranis has been able to locate a major NE-trending structure using geophysical surveys that is possibly related to the Kiistala Shear Zone that hosts Agnico-Eagle's Kittil� 3 M Oz gold deposit 20 km away. This will become the major exploration focus at Kettukuusikko for Taranis."

Taranis has posted a number of maps on its website at www.taranisresources.com that provide an overview of the Kettukuusikko gold project.