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AGORACOM received the following reply from Noront management:

"The 2006 ground magnetic survey shows an anomaly that is quite sharp. This anomaly at first glance and during my interpretation suggested a magnetically rendered feature that was in the order of 500 meters long, trending normal to the geophysical grid lines. Holes 1 and 2 tested this anomaly just SW of the peak of the anomaly. Hole 3 was drilled 100 meters to the NE to test the anomaly at this location. The hole remained in granodiorite for its entire length. We interpreted the hole as undercutting the anomaly, the magnetic unit appeared to sky out between the section on hole 1 and 2 and the section for hole 3. The geophysical crew then were instructed to infill the lines at 50 meter intervals to see where this sky-out phenomena happened, it appeared to be somewhere between the position of hole 5 and hole 3.. this may (and I say may) be a defining point for the north eastern edge of the sulphide body. Only additional drilling in this area will tell for sure, and the current program will eventually answer this question.

The detailed 50 meter centered magnetic survey has suggested a SW plunging, NW dipping magnetically rendered peridotite, this peridotite contains massive sulphide and semi-massive sulphide mineralization in pods and pod surrounds. Net textured sulphides surround in part the semi-massive sections and in part the massive sulphide sections. The peridotite is weakly magnetic, and is traceable to the SW using magnetic inversion of the weakly magnetic rock.. The massive sulphide sections are also conductive and detectable near surface, however these are only detectable to about 75 meters depth due to the type of survey being used at present. Drilling is proceeding the to SW as shown in the drill plan, section by section. Information regarding these new holes will be released in a timely manner.

In the recent interview with Mr. Nemis he stated that the mineralization is extending to the SW. I do believe he used the word ore-zone in this interview, however he immediately corrected this error and used the word mineralized peridotite. Noront has not defined and ore zone yet and has not defined the resource. The drilling thus far is intersecting very wide zones of peridotite, some of which contain appreciable and significant widths of sulphide accumulations, the peridotite appears to be widening towards the South (based upon the drilling), the geophysical surveys as they come to light, are suggesting that the magnetically rendered peridotite swings towards the WSW.

Hope this all helps in understanding what we are dealing with.

Neil Novak
VP Exploration Noront"