The El Tesoro Property is located in the state of Durango, Mexico, and is controlled by a land position totalling nearly 3,000 hectares. The project now consists of four wholly owned concessions staked by Northair's wholly owned Mexican subsidiary company, Grupo Northair de Mexico, S.A. de C.V.

Northair has an agreement with Compania Minera San Valentin, S.A. de C.V. (San Valentin), which allows San Valentin to lease Northair's El Tesoro concessions. San Valentin is a privately held company with corporate offices located in Durango, Mexico; and offices in Houston, Texas, USA.

Under the agreement, San Valentin will pay Northair $2,000 per month for the rights to explore and mine the G Zone and $3,000 per month for the rights for the remainder of the concessions; for a total of $5,000 per month. The lease will run for a period of 15 years, during which time San Valentin has the option to purchase the G Zone for $200,000 and the remainder of the concessions for $300,000; for a total of $500,000. All amounts are in US dollars. Northair retains a back in right for 49% of the G Zone if San Valentin exercises its purchase option.

During the term of the lease, San Valentin will be responsible for all taxes, permitting and environmental aspects of the concessions.

Since the commencement of land acquisition at the El Tesoro property in the fall of 2002, International Northair Mines Ltd. has defined seven distinct zones containing classic gold bearing, low sulfidation, epithermal quartz veins and associated stockworking and breccias. The identified zones of mineralization at El Tesoro occur within a mineralized trend that is at least 2.5 kilometers long and up to 600 meters wide that occurs mainly on returned concessions.  There are numerous pits, adits and small shafts that were developed by local gambusinos during the 1900's. A few small workings however, appear to be much older, and may be from indigenous communities.

The property has been aggressively explored by field programs including geologic mapping, sampling, trenching and a first phase of RVC drilling. Results were encouraging and showed the favourable trend could be at least 5 kilometeres long, but due to significant payouts due on four optioned concessions, the Company's land position has been reduced to its wholly owned concessions. The G Zone, which has returned values from surface trenching of 18.86 g/t gold and 13.09 g/t silver, is particularly attractive.  The exploration potential for discovering additional zones of mineralization is excellent.

El Tesoro is approximately 65 linear kilometers south of El Salto, Durango; and 55 kilometers northeast of Rosario, Sinaloa. Road access is available directly to the project from both cities. Travel time from either Rosario or El Salto is approximately 6 hours. Access from Durango City is better for heavy equipment. Elevations at the project area range from about 1000 to 1600 meters above sea level. Topography is typical of the "barranca" country, ranging from gentle to steep. Climate conditions are very comfortable year round, with a typical rainy season from the end of June through September. Vegetation includes pine and oak trees. There is a small community of approximately five families residing at the project area.

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