The Sherridon VMS Property covers an area of over 20,876 hectares and hosts the past-producing Sherridon Mine that was operated by Sherritt Gordon Mines from 1933 to 1950 and produced 7.7 million tonnes of ore grading 2.46% copper and 0.8% zinc. Results from an airborne geophysical survey completed in the summer of 2006 identified an additional 122 targets. The property is located only 70 km northeast of the mining and metallurgical complex in Flin Flon operated by HudBay Minerals Inc. Future development of the property is facilitated by the presence of an all-weather road and railroad access as well as a power line and communications tower.

Exploration Highlights

• Development of a new geological model has led to two recent new discoveries;

• Recent discovery of the new Lost Lake zone south of the Cold Lake Deposit. The known strike length is 500 metres and all mineralized intersections are within 100 metres of surface while mineralization remains open at depth and along strike;

• Strike length doubled at the Bob Lake Deposit ;

• Discovery of the new Bob Lake North mineralized zone with a strike length greater than 500 metres and open in all directions;

• Reinforced the potential for low cost open pit mining by encountering shallow mineralization at the Bob, Park, Jungle, Cold and Lost Lake deposits/zones;

• All of the tested deposits are within an area of 5 km by 5 km and mining could be supported by a central milling facility;

• The massive sulphides intersected at Lost Lake have the highest average grades and best widths reported to date, all within 125 metres of surface.