HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: A question for the forum.

Expression of interest from say GlenCore would represent a major lever in incenting Vale (amongst others) to bid competitively for participation in the Ni mineral stream, as opposed to the pre-chromium assumption that a Vale would enjoy somewhat of a buyer's market. This is only one illustration of how the Cr resource will act to quickly reduce the gap between valuation and ultimate sp much more effectively than simply adding more Ni resource. When I say "quickly" , I believe the negotiating times for a strategic partner or buyer for the Ni/pgm stream alone would have been a multi year squeeze play without Cr. The Cr ratchets the competitive dynamic upward radically.

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