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: So Gravelle says....

Not much said regarding Sault Ste Marie's chances -- is there a serious downside?

Great rail connection, great steel town, contiguous to the great U.S. of A -- why wouldn't Cliffs be comfortable with that location? And if Ontario comes up with a preferential electricity rate (will be an important factor, I think) this should be available to all the players, eh?

I suspect (don't really know) that the processing facility will either be built from scratch, or major components brought in from South Africa, so that would diminish Timmins appeal.

For sure, the jobs will be most welcome at all points. Last time I was through Timmins it was booming, so you would think they could absorb the Xstra jobs better than most.

O.F.

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