The portion of the deposit below the -220 m and -160 m elevation (for BD1 and BD2 respectively), as well as all of the satellite bodies whose geological continuity is somewhat questionable, have been categorized as Inferred. The bulk of the Inferred category of the major components of the deposit remains to be drill tested. The lower limit of the inferred resource (being 600 m below surface) is considered very prudent........................

............................................................................................................................................ The interpretation is based on the large thicknesses of the massive chromite encountered in the line of the deepest holes suggesting that at between 350 m and 400 m depth, the deposit is not narrowing at depth, and is also consistent with a Magnetic 3D inversion which suggests that the ultramafic rocks hosting the chromite mineralization extend to a depth of +/- 1,700 metres.

Micon further reports that in order to upgrade the resource from indicated and inferred to the “measured category”, a few strategically positioned drill holes will be required.

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......RL