Eagle Hill Second Quarter Financial Results - Seite 2

At the date of this MD&A, the Company had working capital of approximately $3.6 million. For the three months ended April 30, 2014, the Company had a net and comprehensive loss of $446,705 or $0.001 per share (2013: $521,587 or $0.003 per share). At April 30, 2014, the Company had a commitment to spend a total of $444,406 on Canadian Eligible Exploration by December 31, 2014 and $1,000,000 by December 31, 2015.

WINDFALL PROPERTY REVIEW AND OUTLOOK

The Windfall Lake Property covers approximately 12,400 hectares in the prolific Abitibi Greenstone Belt in Quebec. The property consists of 285 contiguous claims. Eagle Hill obtained ownership of the property by optioning different claim blocks from Noront, Murgor and Cliffs. On May 6, 2014, the Company announced that it had completed its purchase of three 2% NSRs related to Eagle Hill's Windfall Lake Gold Project, which is located in the Abitibi Gold Belt approximately 200 km northeast of Val d'Or, Quebec. The Company paid a total of $60,000 and issued a total of 3,333,334 shares to purchase the NSRs, which cover 3,469.9 hectares of the 12,400 hectare Windfall Lake Property. The shares issued to the vendors of the royalties are subject to a four-month hold period.

On March 28, 2014, the Company completed the purchase of the 29 Claims and the 184 Claims immediately adjacent to the Windfall Lake Property. In consideration for purchasing the remaining interests in the 29 Claims and the 184 Claims, the Company paid $250,000 and issued 9.5 million common shares to each of the optionors. In addition, the Company granted a 0.5% NSR for the 29 Claims and a 1% NSR for the 184 Claims to each of the optionors. The Company retained the right to buy back any of the NSRs at any time prior to first commercial production by paying $500,000 to the holder of the NSR.

Exploration Activities

The Fall 2013 drill program achieved its primary objectives, confirming continuity of mineralization below Red Dog, confirming the extension of mineralization southwest of the Main Zone, and expanding both Zone 27 and the Mink Lens. In addition, a downhole IP survey showed additional potential below Red Dog.

The Winter 2014 drill program was focused on testing for gold mineralization below shallow lakes in the Main Zone. A total of 3,333 metres was drilled in 16 drill holes. Several drill intercepts demonstrated the presence of pyritic stockwork similar to other lenses of the Main Zone. The results confirmed continuity of the Zone 27 gold mineralization and demonstrated lateral extension of the Zone. Highlights of the drilling program include 18.5 g/t gold over 3.38 metres, 7.04 g/t gold over 6.2 metres, and 20.45 g/t gold over 2.6 metres in the eastern extension of Zone 27. In addition, the drilling program expanded the upper portion of Zone 27 by over 100 metres to the southwest with the discovery of 8.36 g/t gold over 1.2 metres and 10.6 g/t gold over 0.9 metres. Eagle Hill press released a complete summary of results from the Winter 2014 drill program on June 24, 2014.