I believe NSR is based on the ore acquired from Fancamp. However, there isn't another company in U.S. that has Titanium resources. So, ore should come from RGX's own property site.

The property and production sites are near to the highways, thus there isn't much challenge like the case of Rings of Fire to build the transportation infrastructure.

The 2% NSR (4% NSR after two years) is for Fancamp only (Not including Sheridan's).

A purchase agreement dated August 1, 2008 between 7013833 and Fancamp. Pursuant to

the agreement, 7013833 acquired a 100% interest in 18 claims comprising part of the La

Blache Property owned by Fancamp by: (i) issuing an aggregate of 1,500,000 of

redeemable preferred shares to Fancamp, each having a par value of $1.00 (which

preferred shares were exchanged for 6,000,000 common shares of Argex at the closing of

its Qualifying Transaction); (ii) paying an aggregate amount of $175,000 to Fancamp

over a two year period; (iii) entering into a net smelter return royalty agreement with

Fancamp, granting a 2% net smelter return royalty (which will increase to 4% after two

years of commercial production) in favour of Fancamp; and (iv) making an advance

royalty payment of $100,000 on the third anniversary date of the agreement. Pursuant to

the net smelter return royalty agreement, 7013833 may repurchase from Fancamp, at any

time, up to 50% of the net smelter return royalty for a total amount of $1,500,000.

Property Site

The La Blache Property is located approximately 120 km to the north of the city of Baie-

Comeau. The claim block is accessible by helicopter, floatplane or via a network of forest

roads.

The Manicouagan region is situated at the intersection of Highways #138 and #389.

Provincial Highway #138 links Montreal and Natashquan and follows the north shore of

the St. Lawrence River. Highway #389 provides access to the mining towns of the

northeast and links Baie-Comeau to the Labrador border.

Few local resources are available near the property since the area is not inhabited. The

nearest city is Baie-Comeau, which is located on the North Shore of the St. Lawrence

River. The main employer is the Alcoa Aluminium Plant. The economic and industrial

development in the region is based on mineral, forest and hydroelectric resources. The

area is served by the shipping port of Baie-Comeau that is navigable all year and handles

iron ore and other trades. Forestry activities are very intense in the region, and major

hydroelectric facilities exist in the region

Valleyfield Production Site

- Located 40 km southwest of Montreal, Canada, near a major port on the St. Lawrence Seaway

- Access to rail, road and sea facilitates shipping

- Access to a qualified and experienced workforce

- Region is home a hydrometallurgical and chemical processing industry

- Currently operating pilot plant on site which allows for continuous improvements to processes and quality of output

- Commercial production planned to begin Q1 2017