EXPLORATION AGREEMENT

Under the Services Agreement with Diagnos, First Source agrees to pay Diagnos $3,000,000 (CDN) between September 15, 2008, and May 15, 2010, with which Diagnos is to explore 150,000 square kilometers of prospective ground in Central Canada. By May of 2008, Diagnos will use its proprietary CARDS technology to identify up to 50 mineral prospects within this larger area of interest, with each smaller target property ranging in size from 20 to 100 claims. Based on this "first target report", the parties will mutually choose up to 10 properties on which to conduct further geological field work, which is expected to verify the validity of the CARDS identification system (and if successful, by extension, increase the prospective value of the remaining identified properties). Of the $3,000,000 paid to Diagnos, roughly $1,000,000 is to be allocated towards data collection and generation of the first target report through the use of CARDS, $1,000,000 is to be dedicated to the acquisition of up to 50 properties that may be indicated as a prospective target by CARDS (along with some geological recognizance work, including grab sampling and mapping for each property), and the last $1,000,000 is to be spent on field exploration work to verify the 10 properties selected by First Source and Diagnos. Following release of the first target report, and up to 90 days following the last payment in 2010, First Source may obtain a 100% interest in five of the properties (with a 1.5% NSR interest to Diagnos), with both parties keeping a 50% interest in all other properties generated through the project.

Diagnos is responsible for all gathering of data, land acquisitions, and follow-up geological field work, but may sub-contract some of this work based on availability of geological staff. While not required under the agreement, First Source expects to work closely with Diagnos throughout the entire process, and utilize its own geological experts to contribute to all manner of data collection, analysis, land acquisition and field work.

For more information about Diagnos, please visit their web-site at www.diagnos.com.

Please note that more information about the area of interest, and about the generation of first targets, will be disseminated when that information is less strategically sensitive.

Please also note that the contract is contingent on First Source receiving TSX Venture approval, and on the completion of a successful private placement for a minimum of $750,000 by September 15, 2008.