The company's primary focus is to leverage its partnership with a leading North American gold mining company to develop gold properties in Alaska's most prolific gold mining camp. Specifically, Kinross Gold Corp and Teryl are together developing a key gold discovery and other highly prospective properties with the aim of providing additional ore for Kinross' Fort Knox Mine. The largest gold mine in Alaska with four million ounces of gold reserves, Fort Knox produces over 400,000 ounces of gold annually. Indeed, it is the crown jewel in a mining district that is home to 10 different deposits, including Kinross' nearby 660,000-ounce True North Mine. All told, the Fairbanks mining district host 23 million ounces of gold resources.

However, the prolific production rate of the Fort Knox Mine and the prospect of a relatively short lifespan for the True North Mine make the need to find new gold resources all the more pressing. This is where Teryl enters the picture. It is a strategically significant advantage that all of Teryl's joint ventured gold properties are adjacent to and less than ten miles from the Fort Knox Mine. They are also in close proximity to the producing True North Mine. These properties include several mineral-rich discoveries, including the Gil Property, in which Kinross and Teryl respectively each hold an 80 per cent and a 20 per cent interest. This 9,480-acre property has been the subject of $4 million (U.S. $2.7 million) in exploration since 1991, during which time the partners have defined a 400,000-ounce "drill indicated/inferred" gold resource based on 10.7 million tons grading 0.04 oz/ton (1.24 g/tonne) gold. The main mineralized zone has been traced over 3,000 feet (900 metres) along strike, averaging over 70 feet (21 metres) in thickness. Indeed, a 2002 drill program continued to produce encouraging results that suggest the prospect of more gold resources at depth. And a number of geophysical targets and gold-in-soil anomalies suggest a likely extension of the known mineralization along strike.

Infill drilling on the Main Gil zone recently intercepted 220 feet (66 metres) of ore-grade mineralization, including 80 feet (24 metres) of 0.06 oz/ton (1.84 g/tonne) gold. Significant grades and mining widths were also intercepted on the southwestern portion of the North Gil mineralized zone - an area that has only seen limited drilling in the past. Grades ranged up to 0.1 oz/ton (31g/tonne) over intersections of up to 55 feet (17 metres). Previous drilling on the Sourdough Ridge zone also struck a new intersection grading up to 1.34 oz/ton (41.5 g/tonne) gold. This is all very encouraging news for the joint venture partnership, which intends to conduct further step-out and delineation drilling in 2003.

Indeed, Kinross is especially eager to build upon the Gil Property's existing 400,000-ounce gold resource to feed its nearby mill, according to Teryl President John Robertson. "The main goal for Kinross Gold is to get our property into production as soon as possible," he says. "The mill is one of their major assets and they need higher grade ore to feed the mill. We expect to be able to accommodate that need."

Robertson's optimism is certainly not out of step with Kinross' thinking. The major mining company's 2001 annual report included the following remarks:

"Our goal now is to advance one or more of the other exploration targets in the area into a resource - and ultimately the reserve category - to replace True North when it is mined out. We are confident we can do this…We are increasing the exploration budget in 2002 to advance the Gil (Property) towards a production decision…"

"…This intrusive (the Gil's mineralization) may have many similarities to the granite that hosts mineralization at the Fort Knox mine."

This scenario also greatly benefits Teryl in that it stands to capitalize on the existing operational infrastructure of the Fort Knox Mine. This consists of roads, power, skilled workers and a multi-million-dollar mill within 20 miles of the city of Fairbanks.

Teryl is also planning an aggressive exploration and drilling program in 2003 on its wholly owned West Ridge and its 50-per cent optioned Fish Creek properties, all located in the Fairbanks mining district, and in similarly close proximity to the Fort Knox and True North mines.

Of particular note, a 2002 reconnaissance drill program suggested that the company's Fish Creek Property may be an extension of the adjoining mineralization on the Gil Property. The Fish Creek Property is also located within the Yukon-Tanana gold belt where placer camps have historically produced over 9.3 million ounces of gold. This highly prospective property has the potential for both a placer mining operation and a lode gold discovery at depth, according to geological reports which point to the similar geology at the adjoining Main Gil and North Gil zones and the Fort Knox and True North deposits. Teryl holds a 50 per cent option from Linux Gold Corp. on the Fish Creek Claims. Linux retains an option to back-in for a 25 per cent interest. The potential for this property to be an extension of the Gil mineralization will be tested by way of a six-hole drill program in 2003.

Meanwhile, the West Ridge Property, which is located only two miles from Kinross' True North Mine, contains two gold zones that were identified by Kinross in a 2000 exploration program. A recent shallow auger drill program revealed elevated in-soil gold values and a chemistry similar to the True North deposit. Teryl owns 100 per cent of this property which is located directly across from Kinross' mill. Teryl is hoping that further exploration planned for this year will identify the source of placer gold located in down- slope streams.

Last but not least is the Stepovich Property which is located directly adjacent to the Fort Knox Mine. The seven Stepovich lode claims are a gold-bearing tungsten skarn deposit that dips towards the Fort Knox gold ore body. Kinross owns 100 per cent of the claims subject to Teryl's 10 per cent net profit interest. If successfully developed, this property is ideally located to feed production to Kinross' mill.

Elsewhere in Canada, Teryl has a 30 per cent interest in the silver-zinc Silverknife Property, which is located in the Liard Mining Division in northern British Columbia. Teryl's joint venture partners, Reg Technologies and Rapitan Resources each respectively hold a 45 per cent and a 25 per cent interest. A 1987 drill program consisting of 13,700 feet (4,100 metres) in 49 holes confirmed a "drill indicated" resource totaling 400,000 tons of silver, lead, zinc and even some gold values. Grades included an average of 12 per cent silver and 16 per cent zinc over a strike length of at least 800 feet (240 metres) and a down-dip extension of at least 500 feet (150 metres). The company believes that these mineral resources could increase substantially by way of additional drilling. However, Teryl and its partners are awaiting an upturn in silver prices before conducting any further work.

And in the Northwest Territories, Teryl owns a 40 per cent interest in The International Diamond Syndicate which, in turn, holds a 16 per cent stake in 70,000 acres of prime diamond exploration territory in the Misty Lake area. The property, which is being managed by the renowned diamond-hunting experts at SouthernEra Resources, is located near the multi-billion dollar Ekati Diamond Mine. To date, several potential kimberlites have been identified in the Misty Lake region. SouthernEra is expected to conduct further work in 2003 on behalf of the syndicate to better determine the potential of these targets.

Besides a portfolio of highly prospective projects, Teryl benefits from strong management. This includes John Roberson, who has served as the company's President for over two decades. He has also made a name for himself in the financial markets, particularly as President of Reg Technologies, Inc. which he has run since 1984. This public company is engaged in developing a rotary engine and other devices utilizing Rand Cam™ technology. Moreover, since 1979 he has also served as President of Linux Gold Corp., a public company which has a 50% interest in the Fish Creek Property that are joint-ventured to Teryl. Mr. Robertson also presides over both IAS Communications, Inc., a public company that is developing antenna technology, as well as Information Highway.com, Inc.

Teryl's Exploration Manager is John Jenks, who has several decades of experience in the mining business. Among his accomplishments, he has worked as an independent consultant since 1979 for such industry leaders as Teck Corp., Esso Minerals Canada, Metallgesellschaft Canada and Tonto Drilling. Prior to that time, he spent 10 years as a senior geologist with Placid Oil Company where he was involved in exploration, mapping, drilling and underground evaluation. Mr. Jenks also has several years experience in grassroots exploration, deposit definition/interpretation, mine geology, property evaluations, scoping studies and project management, particularly in Alaska, northern Canada and South Africa. He is also a member of the Association of Professional Engineers, Geologists & Geophysicists of Alberta and the Association of Professional Engineers of B.C., as well as the B.C. & Yukon Chamber of Mines.

Teryl's management team also includes Yale Hirsch as Vice President of Corporate Affairs. Mr. Hirsch is a stock market historian and stock analyst for the Stock Trader's Almanac, now in its 36th annual edition. He is also the founder of the Smart Money and Ground Floor newsletters. These newsletters focus on small, undiscovered stocks, and young high-growth companies with considerable upside potential. Both newsletters are now combined into an enlarged publication called the Almanac Investor.

In closing, Teryl believes its Alaska properties could contain significant ore bodies that are similar to the Fort Knox and True North gold deposits. And as documented in Kinross Gold's 2001 annual report, North America's fourth largest gold mining company is committed to aggressively developing the best of these projects to mine-readiness. Once defined, these emerging gold discoveries could be very cost-effectively put into production and processed at Kinross' nearby Fort Knox mill facility.

In particular, Kinross is making a high priority of developing the Gil Property, where a "drill indicated" gold resource of nearly half a million ounces has already been identified. Underscoring this reality is the fact that Kinross recently announced its intention to spend up to U.S. $3.5 million on this mineral-rich region, including the Gil Property during 2003. Hence, it stands to reason that Teryl is an obvious take-out candidate for Kinross since the mining junior holds a minority interest in this project and has a market capitalization of less than Can. $12 million. Such a scenario (though not imminent) would likely present the opportunity for Teryl shareholders to sell their shares at a significant premium to current market prices. Accordingly, SmallCapMedia believes that the further development of the company's projects, particularly the Gil Property, will likely build appreciable near-term value into Teryl's share price.