U2 Permitting Status

The project description prepared to support a Provincial environmental assessment process for the U2 bulk sample was available for comment until February 10, 2014. Metalex was advised by the Ontario Ministry of Natural Resources that an environmental group provided comments including a request that the government conduct a regional environmental assessment that would include our project area.

The Ontario Ministry of the Environment will now determine whether this request has merit. Metalex has been advised by the government, that this process will not be complete in time for the project to commence during this winter road season. Unfortunately the bulk sample will now be delayed.

First Nations

Metalex continues to work with the Attawapiskat and Marten Falls First Nations to complete an exploration agreement for the proposed bulk sample.

U2 Profile

The U2 kimberlite pipe is a highly prospective diamond development project located in the James Bay Lowlands of Ontario, near De Beers' Victor Mine. Diamonds recovered from the U2 pipe are of exceptional quality - with 88.8% by weight of the +1.7mm diamonds being white and 1.1% being colored. The large size of the U2 pipe shows the potential to host a substantial tonnage.

Quebec Drill Program

On the Company's claims near the town of Wemindji in Quebec several anomalies have been defined by the recent ground geophysical program which included gravity, magnetic and electromagnetic techniques. These anomalies lie directly up ice of heavy mineral samples which were found to contain G10 garnets and other indicators of diamond inclusion composition.

A permit application for the drill program has been submitted and once permission is received the Company intends to commence a core drilling program to test these priority anomalies.

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