Table ii.Redstone Mineral Reserve Statement, SRK Consulting Dec 31, 2009 (p. V)

Note last row has to be adjusted. (Tables don't convert too well)

Project Economics (p 5)

The mine plan was incorporated into a financial model to determine the Life of Mine (“LOM”) economics at the study nickel price of US$7.00 per pound.

LoM NSR revenue based on plant feed of 259.9kt at 1.04% Ni is estimated at $29.8 million.LoM costs are estimated at $18.5 million for operating and $8.4 million for capital.Undescounted pre-tax LoM cash flow is estimated at $2.9 million, yielding an IRR of 116 percent and an NPV of $2.3 million at an 8 percent discount rate.

The project economics are most sensitive to fluctuations in exchange rate between the Canadian and US dollars.

Methodology (p 107)

Economic viability was checked for mineable material based on the NSR formula (Ni price and exchange rate), and estimated site operating costs;

A Lof M development and production schedule was generated for potentially economic stopes.An economic evaluation was performed on the entire schedule.The material in the LoM schedule includes proven and probable reserves.The mineral reserves exclude inferred mineral resources.

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Aside:Sounds like economics has been applied to the whole reportand all our Mineral Reserve Statement.stimation Methodology