On December 10, 2009, SEARCH entered into a binding letter of intent (“LOI”) with B and A Minerals Inc. to acquire an undivided 100% interest in and to certain claims in SE Labrador owned by the B and A Minerals Inc. and known as the Port Hope Simpson property (the “Option”).

Under the terms of the LOI, to earn the Option the Company will pay the B and A Minerals an aggregate of $140,000, with $20,000 payable on the date of acceptance by the TSX Venture Exchange of the Option (the “Acceptance Date”) and $30,000 on the first anniversary, $40,000 on the second anniversary and $50,000 on the third anniversary of the Acceptance Date. The Company will also issue an aggregate of 1,100,000 common shares of the Company (“Shares”), with 200,000 Shares issuable on the Acceptance Date, 250,000 Shares issuable on the first anniversary, 300,000 Shares issuable on the second anniversary and 350,000 Shares on the third anniversary of the Acceptance Date. The Company has also granted a 3% NSR to the B and A Minerals, of which the Company can purchase 2% at any time for $2,000,000. The Company has undertaken to complete an airborne radiometric and magnetometer survey on the property.