The date of this Management Discussion and Analysis is December 4, 2012.

The Company has filed a National Instrument (“NI”) 43-101 Technical Report on the in-pit mineral resource estimates prepared by P&E Mining Consultants Inc. (“P&E”) of Brampton (Ontario) on the Magpie #2 Deposit at its 46.72% owned Magpie Iron-Titanium-Vanadium-Chromium Project.

The Company believes that filing the NI 43-101 Report represents a major milestone in the development of the Magpie project, and confirms the management long-held belief in the enormous resource and potential of the Magpie deposits.

The Company will be proceeding with its plans for an IPO when market conditions improve.

Metallurgical studies, consisting of Concentration Tests on the massive titaniferous magnetite rock (containing up to 20% silica and feldspar gangue) continue, together with additional hydrometallurgical test work. As part of these studies, the Company has entered into a contractual agreement with the Sichuan Non-Ferrous Technology Group (“SNFT”), formerly known as Sichuan Non-Ferrous Metallurgical Institute, to carry out beneficiation tests on the Magpie Deposit titanium-magnetite rock.

Magpie has shipped 1.5 tonnes of ore samples to SNFT for this purpose.

SNFT is a Chinese R&D company located in Chengdu City, the capital of Sichuan province, and has many years of experience in beneficiating and processing complex iron-titanium-vanadium ores, similar to Magpie, that are common to the Chengdu and Panzhihua areas in China.

The objective of these tests is to produce Iron concentrates containing V2O5 and chromite, and TiO2 concentrate. This work is being carried out on the perspective of large scale production of high-grade Fe-concentrate suitable for smelting purposes, together with relatively small scale hydrometallurgical production from the TiO2 concentrate noted above, to produce high purity Fe2O3 and TiO2

products.

Duration of the project is 2-months after receipt of the samples by SNFT.

These technical contacts are of great importance to facilitate future discussions with end users as this project moves forward.

Cheers, Luker