Auro Property (Blackwater) 2% NSR

In March 2012 Surge sold a 100% interest in its Auro and Auro South properties to New Gold Inc. for consideration of C$6,000,000, and retention of a 2% net smelter returns royalty. The properties cover roughly 23,000 hectares and are located adjacent to the large Blackwater Gold Deposit, currently being developed by Artemis Gold Inc.