following update on the exploration drilling activities at the MAX Molybdenum project. The focus of this drill

program is to identify extensions to known mineralization and to assess the larger potential of additional

porphyry systems at depth.

Five diamond drill holes totaling approximately 4,800 metres have been completed to date. All the holes

were collared from a common underground drill station within the No.1 Adit, east of the deposit at a

location that does not impede production mining.

Drilling rates have been excellent and the site currently has an accumulation of core to log and sample in

detail. As a result, the Company’s geological staff and members of its exploration advisory board have

completed an initial assessment of 40-50% of the core drilled to date. Their assessment indicates that

drilling has intersected significant alteration, and associated visible molybdenite mineralization extending at

least 200 metres below the known resource and that it remains open at depth. Also, mineralized and

altered pre- and inter-mineral feeder structures have been intersected along the eastern margin of the

stock.

The Company is very encouraged with the potential indicated by this initial assessment and follow-up drilling

is being planned. Sample assays for the first three holes are pending and will be reported along with a

geological interpretation in a subsequent update.

Further drilling will likely be carried out from a new drill station near the west end of the No. 1 Adit, which

cannot be undertaken until mine development work in that area progresses. As a result, the drill is

currently being demobilized until a full interpretation of all of the results is completed and a suitable drill

station is prepared.

Mr. Scott Broughton, P.Eng. is the qualified person responsible for the preparation of this news release.