Magnetite

 The purpose of this business plan is to set out a 5 year strategic plan for Homegold and Partners in a  new iron ore production venture. The Plan will also define potential investors; to assist in obtaining  financing for growth in continuing projects, expansion of our operations; and to ascertain new markets  for the magnetite products. While we strive to achieve our external goals and objectives, we will  concurrently work at achieving our internal goals and objectives in the areas of corporate governance,  executive and management team expansion, and policy and procedure. Our bottom line is concerned  with not only profitability, but is also focused on the sustainability of the environment and our social  responsibility in the communities where we are located as well.  

Currently, Homegold Resources Ltd. has two properties in the permit phase and eleven other separate properties in the exploration phase. Steele Creek and the old Nimpkish Iron Mine are located on  Northern Vancouver Island within the traditional territory of the Namgis First Nation.  

Expansion of a second phase of Magnetite production can be by opening up the waste dumps and  tailings at the old Nimpkish Iron Mine along the Nimpkish River north of Woss.  

The relationship between Homegold and the Namgis First Nation will be firmly established with a  Partnership Agreement. The Namgis are now considering a partnership on the larger economic  proposal. The outlook for continued growth in our relationship remains positive. 

In an effort to keep our costs down, one cost saving measure has been to manage the company on a  contractual basis with part-time contracts. In most cases the management team has been wearing two  or more hats. In the early stages, this made economic sense, but now that we are poised for expansion,  it makes sense to hire an Operations Superintendent to work on a part-time basis in the North Island to  manage the operations, to comply with the regulatory agencies, to maintain safety standards and to  adhere to the contractual agreements that are in place. In so doing, the President and Geologist will be  able to focus more on finding new potential properties.  

Homegold has several properties that are in various stages of exploration. We have thirteen (13) potential properties that all have immediate magnetite production possibilities. Of our 13 properties,  the most imminent to come into development and production are the Steele Creek property, Nimpkish  Iron, Iron Ross near Sayward and the Argonaut dumps and tailings. The venture will consist of drill/blast  2 magnetite production followed by magnetite concentration to produce a 10 mesh, 60% Fe product that  will be loaded on a ship and delivered to China. 

The Project is potentially very profitable, as more fully described in Appendix I. Recent increases in  commodity prices, largely driven by increased demand from China, have produced substantial increases  in the world market price for iron ore, copper, gold and other metals. The Project will keep its capital  costs low by using contract miners, and will load large-sized vessels to minimize shipping costs.  Additionally, capital and operating costs are much lower in China than in the US, so processing the ore  into finished products in China makes economic sense despite the increased cost of shipping raw ore.