The drilling goes deeper day by day at C-1 target. Hope to hear high-grade of nickel deposits at depth.

The McFauld's Lake Property continues to be the Company's main focus, given the continuing positive results on the adjacent Noront discovery property. Extensive gravity surveys were carried out during the winter months on the property, and

subsequently the Company participated in a regional ZTEM survey. The gravity surveys outlined a number of strong anomalies, which on adjoining properties have been shown to be due to the presence of thick, bedded, chromite deposits, while the ZTEM survey outlined conductive zones, some of which could include conductive sulphide bodies extending to depth. Most of these target types remain to be tested.

It should be noted here that the C-1 target, on the western edge of the property, is a part of the Eagle One intrusive complex and that a narrow section in Hole No.2 on its eastern margin, assayed 1.44% Ni, .08% Cu and .83 grams PGM's over 3.8 metres and included a 0.9 metre interval grading 3.52% Ni, 0.17% Cu and 2.96 grams PGM's between 41.2 and 45.0 metres in the hole. A grab sample from this section taken by the writer on a field visit ran 5.86% Ni and .69% Cu. This is

typical Eagle One type mineralization and management expects to see it at depth in the large C-1 target.