Exploration on the Darby-Candle, Waterfound, Moon Lake and Lynx Lake projects was initiated by Pitchstone and Southern Cross Resources Inc.  A Falcon® combined airborne gravity-gradiometer, magnetometer and spectrometer survey was flown over the Darby-Candle and Waterfound properties.  Falcon® is a proprietary BHP-Billiton system operated in Canada by Sander Geophysics.  This was the first application of Falcon® in the Athabasca Basin and the first Falcon® survey anywhere in the world dedicated to uranium exploration.

The 10,921 ha Fireweed and the 4,196 ha Gumboot properties in the Athabasca Basin were acquired 100% through staking by Pitchstone (Mineral Properties).  Both properties protect partially delineated EM conductors; two conductors indicated on Fireweed are coincident with a basement zone of low resistivity, interpreted as pelitic meta-sediments, and the edges of a magnetic low.  The regional magnetic low on Fireweed trends northeast and is approximately 10km long.

Pitchstone now has an interest in 45,315 ha in eight well located properties.  All properties were selected because of identified, untested targets for uranium mineralization.

A letter agreement was signed with Southern Cross Resources Inc. (SXR) whereby SXR can earn an interest in Pitchstone's Darby, Candle, Waterfound, Moon Lake and Lynx Lake projects. SXR will fund $4 million in exploration and pay Pitchstone $350,000, 1 million SXR shares and 1.5 million share purchase warrants to earn a 50% interest in the four projects.  Pitchstone will be the operator. A news release outlining the terms of the agreement is available on SXR's website (www.southerncrossres.com ).

Ted Trueman, President of Pitchstone, and Suraj Ahuja, SKAN Consulting Inc., led a uranium workshop given in Vancouver, BC.  The workshop was sponsored by Triex Minerals Corporation.

Pitchstone has acquired a 50% interest in the Mountain Lake deposit in Nunavut at no cost to the company. Mountain Lake is situated in the Hornby Bay Basin, a Middle Proterozoic Basin similar to the Athabasca Basin, northeast of Great Bear Lake.  A geological paper published in 1986 indicated that the deposit contains 6.9 million pounds U3O8; an average grade was not given although "uranium grades of 0.1% to 0.3% U3O8 over thicknesses of 1m to 2m are typical .... but grades range up to 1.23% U3O8 over 1.90 m".  The Mountain Lake property encompasses 6,647 ha.

Pitchstone completed a private financing with existing shareholders. Several new properties were acquired in Saskatchewan.  Claims contiguous with both Darby and Moon Lake, and a new property named Lynx Lake, were staked. In addition, the 2,595 ha Candle property, which is contiguous with Darby, was optioned from JCU (Canada) Exploration Company, Limited.  Pitchstone can earn up to 75% interest in Candle, and together with its 100% owned lands now controls 23,551 ha in the eastern Athabasca Basin.  There are approximately 60 km of conductive targets on these properties.

Mineral exploration conferences attended in 2004 by Pitchstone directors demonstrate a strong increase in uranium exploration interest.  The company has received several offers to joint venture the properties or acquire an interest in Pitchstone .

As a result of one of the conductors discovered in January being in proximity to the Darby property boundary, one new claim (498 ha) was staked.  The Darby property now comprises 11,513 ha. Robertshaw Geophysics Ltd. compiled results of the January electromagnetic survey and recommended that "... two prime exploration targets should be tested by drilling". At least 20 drill holes will be required to provide a first-pass test of unconformity uranium deposit targets on Darby.

A program of 80 km of line cutting and 96 km of electromagnetic surveying was completed on the Darby property/  Data from the survey have not yet been processed, however, three previously undetected conductors have been discovered.  These new conductors, which total at least 8km in length, provide excellent targets for unconformity related uranium deposits.