Beaverdam Project Location Map 303 KB, approx. 57 seconds at 56.6Kbps

• Located in the North Carolina Tin-Spodumene Belt, historically the most important lithium producing area in the world (hosted the Hallman-Beam and Kings Mountain, Lithium Mines).
• 16 samples collected in 2009 with 14 returning >1% Li₂O; 3 highest values 4.4%, 3.5% and 2.5% Li₂O.
• 1,235 m of drilling carried out in the fall of 2009.
• 1,310 m of drilling carried out in the spring and summer of 2010.
• Drill intersections up to 1.24% Li₂O over 13.0 m.

The Beaverdam project is located in the Tin-Spodumene Belt of North Carolina which, prior to the 1990's, was the most important lithium producing centre in the world. The belt extends over a 60 km length and reaches a maximum width of approximately 1.6 km. Historic lithium mining within the belt started in the 1950's with production primarily from two deposits: the Foote Mineral deposit, 1.6 km south of the town of Kings Mountain (currently owned by Chemetall Foote Corporation) and FMC Lithium's Hallman-Beam mine, located just north of Bessemer City.

North Arrow's Beaverdam project has focused on an area of the Tin-Spodumene Belt where past exploration and evaluation work was completed by the Lithium Corporation of America (predecessor to FMC Lithium) between 1950 and 1996. In the fall of 2009 a 12 hole (1,235 m) drill program was completed with all holes intersecting spodumene mineralized pegmatite, with 10 of the holes intersecting spodumene pegmatite over intervals ranging from 4.11 m to 13.20 m. Assays have returned up to 1.24% Li₂O over 13.0 m. In the spring and summer of 2010, an additional seven hole (1,310 m) drill program was carried out. Drill holes 10-BD-13 through 10-BD-15 were drilled along a 500 m strike length of the eastern pegmatite trend. All holes were drilled at an angle of -45 degrees and each encountered between 4 and 6 mineralized pegmatites exceeding 2 m in width with highlight intervals including 1.14% Li₂O over 9.95 m starting at 116.9 m in 10-BD-13 and 1.09% Li₂O over 11.3 m starting at 193.25 m in 10-BD-14.

Drill holes 10-BD-16 through 10-BD-18 tested the central pegmatite trend along the same east-west section. Each hole was drilled at an angle of -45 degrees and encountered between six and eight pegmatite dykes exceeding 2 metres in width. Highlight intervals include 10-BD-17 which encountered 1.43% Li₂O over 10.97 m starting at 63.1 m, including 2.74% Li₂O over 1.9 m starting at 72.1 m.

The final hole of the program (10-BD-19) tested a well exposed pegmatite in the central part of the property but failed to hit the target at depth. It is possible the pegmatite mapped at surface is faulted off or dipping in the opposite direction. Further drilling is required.

Drilling to date has confirmed the presence of numerous spodumene (lithium bearing) pegmatites within the Beaverdam property. Additional drilling is required to define the along strike and down dip continuity of the pegmatite trends identified within the property. Drilling results returned to date continue to highlight the project's potential for discovery of an American domestic lithium source.

Drill Section Holes 09-BD-5&6 185 KB, approx. 35 seconds at 56.6Kbps

Pegmatite Outcrop Beaverdam Project 542 KB, approx. 1 minute, 42 seconds at 56.6Kbps