When I found the CUU booth there was already a someone talking to Elmer. After he was done my first question was what was the next step for CUU.

Elmer said the most important thing was to file the BFS on Sedar and hand a copy to Teck. He told me this would get the Teck clock ticking. I asked if they would need the full 45 days before filing on Sedar and he told me that he expects it to be done sooner. I didn't ask for a time frame because they have been known for delays. So we know it could be anytime between now and 45 days from December 21st.

I also told him that somebody that came yesterday mentioned another 30 days for a review of the BFS before the 120 day clock starts and this is not true. He said there must have been some confusion and the 30 days review period is actually for the EA. They have been working closely with the provincial and federal government on an ongoing basis so any issues will have a recommended solution in the report. The 30 day review period is for the government to make sure that CUU has submitted and fufilled all the requirements for the EA report. After this it could take up to 180 days for the government to approve but according to Elmer's experience the government can also have delays. He expects the EA report to be submitted in the first quarter of this year. After receiving EA approval this would de-risk the project. They could actually lower the discount rate from 8% to 5% or even 4% which would make the IRR way higher.

My next question was about the 171M tonnes of waste rock in the BFS. I asked him how come they didn't drill this out last year since its so easy and won't require a lot of money. Elmer's answer was simple and the mine plan was not completed yet so without knowing exactly where the mine would be they did not know where to drill. He said he believes proving up this would not take too much time because the holes are already there. They just have to drill deeper and do test to prove the resources and the waste rock will could then be counted as resources and this would drastically improve the IRR as well. Elmer totally believes the Real Options case is how most large companies will be using to value mines. The NPV method is good for cases where with shorter

I have to go out now but I'll try and post the rest of my conversation with Elmer later.

604DD