Peter

I am out of the office today, but would discuss this with you tomorrow. Do you have a number I can call you at and a preferred time.

Regards
Paul


Paul G. Semple, P. Eng.
Chief Operating Officer



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On 29/03/11 8:51 AM, "peter marshall" <[email protected]> wrote:

Hello Paul/Jeremy:

""There will be an update to the PA by "end of Q1" (, Mar31/11); it will include results of Metallurgical testing for all minerals, including PGM's. Ni; Cu ect).""

The above quote is from my Q/A Feb11/11 telcon with Paul which I posted on Agorocom the same day.

This was the same conversation in which Paul confirmed (within disclosure rules) that the Wes-quoted "doubling" of EN Ni tonnage would occur, (as it indeed did in a subsequent NR). I thank you for that.

Since the end of Q1/11 is a mere three days away, and with the Ontario budget today likely to prove uneventful and non-specific with respect to matters RoF/NOT could you please answer the following questions:

(QUESTIONS IN BLACK, my Semple notes in red)

1. Will the Q1 release of a EN PA /43-101 occur in Q1/11 as scheduled?

Semple: Updated PA is "slipped" because 1)PDAC impacts on time; 2) (we) Focused on the PD (Project Definition):- the Permitting application submitted last week (Mar 23/11). The PD is not posted on the NOT web site yet as they are awaiting comments (from affected agencies/ministries-some already received). When all received NOT will update the PD and add costing/capital costs) and publish in as a updated PA (+43-101??) NR by April 30/11. The PD

The quality of content of the updated PD is significantly affects the timeline of the over-all Permit process. Time spent now will pay big timeline benefits later. eg fish habitat effected with number of culverts.

2. Will the now 70%+ completed AT12 winter drilling program receive some comment as to below 300M depth drilling success versus the Niemi confirmation goals of "bigger than EN" and "richer at depth".

No visuals will be shown. AT12 is independent of EN (a separate project to be treated separately in all respects). no comment would be given on AT12 progress and results till made available.

3. As Minister Gravelle stated in January, have the Ontario government "partnering participation" discussions with Cliffs/others commenced and will the status of these be included in the updated PA?
"Practical stuff" discussions are being held with Cliff and KWg". eg. talks about common purpose synergies in (eg)infastructure;training;skills(needs); communities. Discussion attendees were invited by Ont. government

4. Will the underground mill/concentrator be chromites processing capable/ modifiable, in addition to the planned Ni/Cu/PGM/other minerals?
The underground mill/concentrator would initially only process Ni/Cu "for now" when pressed about other minerals (Cr; PGMs ) Paul repeated "for now" again and again.

5. Will the early cash flow revenues produced from the 1.0 tonne/year (phase 1) concentrate negate the need for a PP financing in 2011?; beyond?; and will the cash flow revenues be sufficient to ensure mine financing for phase 1 of the mine build/operation?

No comment.

6. Could there be any "shovels in the ground" ramp building activity prior to securing a permit? Is there such a thing as a preliminary/temporary permit which would an earlier mine build start-up?

The schedule is "easy": - 2 years (starting Mar23/11) for permitting (+ agency/ministries reviews, -i think);

- build: seasonally using 3 winters;

- year 1: (2012 to 2013)and year 2 : transport of materials/equipment etc (winter roads, etc)

- years 1,2,3(winters) transport of operational supplies, etc

Late 2015/early2016: Start mining.

NOTE 1: Permitting is the critical path. "If permitting is faster, we start faster". If Ramp can start early (ie a RAMP -only start using a "sub-permit".... "we will start the RAMP early".

NOTE 2: "there is a 50 week delivery lead time for mining gear on an ice strip"

Other Q/A after the above:

7. Does NOT expect any announced RoF infastructure help in the Federal election?

No, but the federal departments are very aware of the RoF.

-- (Paul called me at 9:10 am this morning; Jeremy Neimi was copied on my email to Paul).

Peter