LETTER FROM THE PRESIDENT

The year ending August 31, 2002 for Opawica concluded an active year for the Company in Canada and Botswana, Africa.

CHANCE GROUP, KIDD TWSP.,ONTARIO

The core properties of the Chance Group continue to be subject to a joint venture with Falconbridge Limited. Opawica retains a 41% working interest and Falconbridge Limited retains a 59% working interest.

In August 2001 a three-hole drill program commenced on the Chance Group. A total of approximately 2,332m of drilling was completed by late November 2001. There was no significant mineralization encountered in this drill program.

Further work will be contingent upon the results of a follow-up geophysical survey being under taken in late 2002.

DUPORT GOLD PROPERTY, KENORA, ONTARIO

During the year the Company completed a due diligence program pursuant to an option taken by Opawica on this property.

Opawica determined that based on a risk to reward analysis using less than a US$400 gold price, the Duport property did not meet the Company’s objectives. Opawica therefore abandoned its option on the Duport property in October 2001 and have written off expenditures relating to this property of $30,616.

FRASERDALE BASE METAL PROSPECT, ONTARIO

During the year the Company concluded an Aero-TEM airborne survey, interpretation and limited ground reconnaissance on the Company’s 40 sq km Fraserdale group, located in northeastern Ontario.

There were no prominent drill targets identified from this fieldwork and no further work is recommended. As a result the Company abandoned its option on the Fraserdale properties and accordingly have written off the expenditures, relating thereto of $157,883.

BOTSWANA, AFRICA

In November 2001 the Company filed for three Prospecting Licenses in Botswana, Africa, totaling 2,836 sq km in the Kalahari Desert of west-central Botswana.

These Licenses covered two large gravity/magnetic features known as the “Great Red Spot” (“GRS”) and the “Tsetseng” anomalies.

Between March 2002 and August 2002 the Company drilled a 933m hole at GRS. This hole drilled through the Kalahari over-burden sequences from surface to 917m. At 917m a magnetite-bearing gabbroic rock was encountered to a depth of 933m. Analytical results for three samples, from this core, sent in for assay returned no anomalous metal values for Ni, Cu, Zn, Co or Au.

Between June 2002 and August 2002 the Company drilled a 1,000m hole at Tsetseng, which is located about 100km east-northeast from GRS.

This hole intersected granite at 540m to 886m and from 886m to 1,000m the hole intersected a magnetite-bearing gabbro. There was no significant mineralization encountered in this hole.

The Company plans no further drilling at GRS and Tsetseng. An attempt to secure a joint venture partner to deepen the holes at GRS and Tsetseng was unsuccessful and therefore the Company has written off $486,648 of costs incurred on these properties.

STRAW LAKE GOLD PROPERTY, ONTARIO

Subsequent to the Company’s year-end Opawica announced it had optioned and staked a total of 93 claim units in north western Ontario, consisting of about 1,400 hectares (3,500 acres).

The claims are located in the contact area of a large batholith. The property offers potential for bulk tonnage gold deposits and confined high-grade vein systems. There are at least five known gold occurrences on the claim group which are aligned in an east-west zone that is approximately 100m to 150m in width and 3,000m in length. For a more complete summary on the Straw Lake property please refer to the Company’s website at: www.opawica.com

FINANCIAL

During the year Opawica completed several private placements for net proceeds to the Company of $1,182,150 by the issuance of 7,433,334 shares. Of the 7,433,334 shares, 3,433,334 shares were flow-through share subscriptions. The details of these placements and attached warrants, are detailed in the Company’s August 31, 2002 Audited Statements.

During the year ending August 31, 2002, $801,359 was expended on mining interests. In addition, a further $84,000 was expended on engineering and property investigation costs. Total administrative expenses for the period were $422,846 which was an increase of about 9% from the previous year.

Revenue for the year, from interest income and dividend income, was $5,491 and the loss for the year was $815,502 resulting in a loss of $.05 per share as compared to a loss of $.08 per share for the year ending August 31, 2001.

As at August 31, 2001 cash and cash equivalents, marketable securities/short term investments, plus sundry receivables and advances totaled $213,595.

Subsequent to the Company’s year-end, in December 2002, Opawica closed a private placement of 2,625,000 shares at $.10 per share for gross proceeds of $262,500. This placement consists of 87.5% flow-through shares and 12.5% non-flow through shares. Of this placement, 66.7% was subscribed by arms length parties and 33.3% was subscribed for by non-arms length subscribers.

Opawica will utilize at least $230,000 of the above proceeds to explore the Straw Lake gold property, Ontario, prior to August 31, 2003.

Opawica Explorations Inc.,

Donald (Dan) M. Clark

President, CEO

December 2, 2002