Strongbow Exploration Inc. is the result of the business combination of Strongbow Resources Inc. and Navigator Exploration Corp., both significant Northern explorers. The amalgamation was completed on May 3, 2004 following overwhelming support of the shareholders of both companies and court and regulatory approval. While the business combination was completed after year end, the 2003 Annual Report has been prepared as Strongbow Exploration Inc. in order to give shareholders the best overview of the combined entity. The 2003 Annual Report contains the individual financial information of Strongbow Resources Inc. and Navigator Exploration Corp. and pro forma and consolidated financial information of Strongbow Exploration Inc.

Metal prices are near cyclical highs and there is a strong market for rough diamonds. Our properties are diverse and contain many commodities. Strongbow’s predecessor companies invested much effort in accumulating mineral properties in anticipation of a more active exploration environment, such that the Company has approximately forty properties consisting of leases, claims, licences and permits covering 3.6 million acres in the Northwest Territories, Nunavut and Greenland. Much of this land came to the Company under very unique agreements with Nunavut Tunngavik Inc. (NTI) which was described in last year’s annual report. Many of these properties have now been optioned off to companies who will be actively exploring at their cost.

The current exploration season is a very active one with a number of prospects being drilled. Drilling commenced in early May on three prospective diamond properties optioned to Stornoway Diamond Corporation in the Lac de Gras area. Drilling will also be undertaken on the Canoe Lake Prospect in the High Lake Belt where an altered felsic volcanic pile contains a number of base metal and gold showings. Prospecting for gold will continue at various places in Nunavut and the Northwest Territories, in particular the Committee Bay area and the Ulu South blocks which have been optioned to other exploration companies. Gold exploration will also be carried out for our own account in Anialik Belt and the Regan Lake area. Of particular interest this year will be our work on the Musk deposit in the Back River area which we hold under option from Noranda. This property hosts a high grade volcanogenic gold, silver, base metal deposit which Strongbow plans to explore in order to increase tonnage to an economic level. This will be initiated with a drilling campaign to commence in August.

The new Company is off to a good start with many thanks due to staff and consultants who were engaged on the merger. I would also like to thank Dr. Bill Wolfe, P.Geol., former president, for his recent efforts in regard to the merger and the several joint venture agreements we have entered. Thanks are due to our many supportive shareholders, our board of directors and our technical and administrative staff who have been so busy in recent months. With so much corporate reorganization and administrative work now complete we can focus on our real business – exploring for new wealth in the North!

D. Grenville Thomas, P. Eng., President