Moore Creek

(40% FMM, 60% Highbury Projects Inc.)

Target

Full Metal and Highbury are evaluating the geology of the Moore Creek area for the bedrock source of placer gold deposits in the region. The area has produced over 60,000 ounces of placer gold, which is often exceptionally coarse grained and attached to quartz vein rock. This suggests there may be a bedrock source nearby. No historic work of significance has been performed on the property.

Location

The 14,250-hectare Moore Creek Property is located in the historic Iditarod placer mining district, about 80 km southeast of McGrath, Alaska. Moore Creek occurs 90 km northeast of the giant Donlin Creek gold deposit, hosted within a similar geologic setting.

Exploration Status

Full Metal and Highbury announced surface trenching results from their 2007 exploration program. Three new discoveries (Spring, Troy, and Broken Shovel Zones) were made during a two-phase trenching program. Multiple styles of mineralization have been identified, and the grade and width of gold mineralization coupled with alteration intensity increases towards the south.

Spring Zone

Trenching discovered sheeted quartz-tourmaline veins with course gold and disseminated sulphides. Seven trenched spanning 300 meters of strike length were completed, and all contained gold mineralization across the full length of the trenches. Highlights included:

-8.86 g/t Au over 11.0 meters in Trench 20
-3.36 g/t Au over 4.0 meters in Trench 23
-2.99 g/t Au over 11.9 meters in Trench 17
-2.17 g/t Au over 9.3 meters in Trench 18

Mineralization continues below the deeper overburden across strike to the north and south.

Troy Zone

The Troy Zone is located immediately north of the Spring zone; mineralization has been traced for over 200 meters along strike and is typified by quartz veins with strong coarse gold mineralization within a broad, lower grade zone. One quartz vein has been traced in excess of 50 meters of the strike length through trenching. The vein was sampled in three locations; grades include 88.5 g/t Au over 0.2 meters, 36.0 g/t Au over 0.2 meters, and occurs within a 3.0 meter channel that averaged 7.6 g/t Au. Wide zones of gold mineralization occur in the Troy zone, including Trench 16 which hosts 33.5 meters averaging 0.62 g/t Au along the full trench length. This trench is the westernmost completed to date. Mineralization is open for expansion to the west and east.

Broken Shovel

Located 200 meters due north of the Troy Zone, the Broken Shovel prospect is typified by a steeply dipping quartz vein. During 2006, Full Metal collected twelve samples from the prospect; samples ranged from trace to 3.84 g/t Au and 2.0 to 1,105 g/t Ag, averaging 0.85 g/t Au and 166 g/t Ag. Highly anomalous bismuth, arsenic and mercury were also returned. Three trenches were completed during 2007, each encountering anomalous gold including two separate one meter wide channel samples located 25 meters apart averaged 0.3 g/t and 0.7 g/t Au respectively.

Ownership

Full Metal Minerals and Highbury Projects Inc. announced a Letter Agreement August 1, 2007, whereby Highbury can earn a 60% interest in the Property by incurring US$2.1 million in exploration expenditures (US$200,000 first year), issuing 50,000 shares, paying Full Metal $50,000 cash, and reimbursing Full Metal for US$10,000 for payments made under the Underlying Option on or before September 15, 2007. Full Metal will operate during the first two years of the Agreement.

Full Metal has an underlying Option to acquire a 100% interest in the Property from Moore Creek Mining LLC (MCM) by incurring a total of US$1 million in exploration expenditures over four years (US$50,000 first year), annual escalating cash payments to MCM from US$25,000 in the first year to $50,000 per year until 2016, with a one time cash payment of $US650,000 upon entry into a Mining Lease after Feb 1, 2011.

If Full Metal exercises the Option, it agrees to pay MCM a 1.5% NSR on all commercial mineral production.

History

State of Alaska Records (2005) report that the Moore Creek area has produced over 60,000 ounces of placer gold, often of an exceptionally coarse nature and noted for attached quartz vein rock. The nature of the placer gold suggests close proximity to the bedrock source.

An active placer mine is in operation on the property, along with a recreational mining business where large gold/quartz specimens are found with metal detectors. Photos of these specimens and the Moore Creek property can be seen at www.moorecreek.com.

Geology

The source of the gold is potentially related to the Moore Creek Pluton, a Late Cretaceous-aged monzonite intrusion.

One area of particular interest is the Broken Shovel prospect that is situated within the Moore Creek Pluton. This target hosts a steeply dipping quartz-dolomite sulphide vein.

The vein averages 5 ft (1.5 meters) in width and can be traced for at least 660 ft (200 meters) along strike. A historic grab sample contained 555 ppm (16.2 oz/ton) silver and 1.6 ppm gold. Visible gold, arsenopyrite, scheelite, and lead-antimony sulfosalts have been identified in hand specimen (Bundtzen and others, 2004).

Gulches converging on the intrusion have all been mined for placer gold. Gold-bearing gravels are only three to four meters thick on the property, suggesting a recently weathered bedrock source. Widespread amorphous silica is present in the stream gravels, along with cinnabar, native gold and native silver. Many of the large gold/quartz specimens have monzonite attached, suggesting a source within the intrusive, however, others have attached volcanic material suggesting additional potential for gold-bearing veins within the volcanics surrounding the monzonite intrusive.