HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Re: FNC release. To drill south of Eagle One. - BK

It is my understanding(and correct me if I am wrong) is the word intrusive when applied to the deposit means the flow of molten material forced through the host rock which in this case is peridotite. The heat and pressure of this molten material ate its way through the peridotite creating conduits of various dimensions and length. The molten flow has mineralization intermittently and the periditite doesn't. This conduit contains the MMS massive and semimassive sulfides in greater concentrations. Where the conduit flow breaks free, like water out of a hose, it becomes a volcanic flow and gets more distributed over large areas and the concentrations of minerals in sulfides is lower which we are seeing in the VMS discoveries. Over the milleniums, faulting and folding and material being deposited makes the valuable portions of the MMS and VMS deposits difficult to find/predict/model.

The key to this discovery is that we have discovered that there are magmatic conduits, that they flowed through the host rock for tens of kilometers, that there is significant mineralization, that it did break free and create VMS deposits and obviously not nearly enough drilling has been done to delineate it all.

This is a very simple description of my interpretation of the geology and my apologies to the scientists out there.

Mike

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