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: Questions on chromite shipping

Note that the slurry pipe is only part of the transportation route. It's existance doesnot mean complete independence from the other means of transportation. Note that for the larger and later part of transportation route for the nickel ore is likely to be heavy trucks or rail line. It still will need to get to Timmins, Sudbury or Thunder Bay for procesing.

What it means is a cheap means and least troublesome for the most difficult and last portion of the route that we could see an alternate to. That means shippment of ore in a time that an all year road is likely to still be under construction and a rail line may only be begining construction provided either one is permitted by then.

The managemnet has chosen an early, inexpensive and least troublesome means of ore delivery at the exchange for lower scale of production. With the high profitability of the nickel ore, that is a very fair exchange.

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