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: re. infastructure

It appears the government does not have to make commitments as Cliffs seems to be pretty motivated and willing to commit on their own right now. Cliffs seems to want/need this in a big way and imo they have blinked. Time line clock is ticking for them. There are tons of things Cliffs needs support/help with, each being a positive negotiating point for the province.

If I was on the government strategy team, I would lobby to publicly make commitments to Noront project rather than to Cliffs as Noronts project is more fully developed, simpler and cheaper, just to gage Cliffs reaction. I would want to agree a hydro rate with Noront and check how Cliffs reacts to that. Having said all this, imo, east/west road will happen regardless.

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