Mr. Jacques Brunelle reports

FINANCING FOR DRILLING EAST-WEST GOLD PROPERTY

Knick Exploration Inc. intends to undertake a non-brokered private placement with accredited investors. The placement consists of a maximum of 500 units for a total amount of $500,000. Each unit, offered at a price of $1,000, will consist of 4,000 common shares at five cents each, 16,000 flow-through shares at five cents each and 20,000 warrants. Each warrant will entitle its holder to purchase one common share at a price of eight cents in the 12 months following the closing.

The corporation may pay to certain finders a cash fee of a maximum of 10 per cent of the proceeds of the placement. Securities issued under the placement will be subject to a hold period of four months and one day. The placement is subject to the approval of the regulatory authorities.

The drilling campaign will be focused on two objectives: the West gold zone extension toward the Marban gold deposit, which represents more than 300 metres of untested strike length of ground; and establishing a National Instrument 43-101-compliant resource before year-end.

The program will include confirming gold grade, thickness and consistency of known gold concentrations within the West zone. High-priority targets have been selected from the completed phase I compilation, the integration of its drilling data from 2009 to 2011 with historical drilling data, as well as access to 3-D modelling, which has given Knick a better understanding of the gold system's geometry and has resulted in a series of grade-length and metal-factor-grade scenarios that were not previously apparent. The West gold zone is open along strike and at depth.

A full and comprehensive presentation on the East-West property and the corporation's objective is available on the front page of the company's website.

We seek Safe Harbor.