UPDATE: MARCH 9, 2009

OPERATIONS AT THE MINE

Operations continue at the mine. The new 100-ton truck (Figure 1) is in full operation at the site moving waste, opening high-grade faces for future mining. We are in the process of expanding one waste dump and constructing a stockpile representing material between 51 and 55% Fe that will be blended with the higher-grade material to reach a blended assay in excess of 55% Fe. This streamlines movement in the pit, which has a positive impact on efficiency.

Figure 1

AEROMAG SURVEY

We have now received Dr. Craig Beasley’s geophysical evaluation of the magnetic survey completed late last year. Dr. Beasley evaluated the potential resource at various cutoff grades. He is working closely with our Chief Geologist, Rick Russell on the data evaluation and is moving into a second phase that utilizes past drilling results and applies them to the aeromag data for a more definitive declaration of the resource. Once this extensive evaluation is completed, this data will be reported. It will be used as the basis for the future drilling program that is being designed.

SHIPPING

We continue to work towards shipping our first ore from the mine to the Port. The negotiations have gone very well with the UP and the Port and we are now finalizing some of the terms with CKI in light of the commodity changes worldwide. We hope the last of this will be resolved quickly.

We currently have 120 cars on site at the mine and another 105 are moving through the rail system to the site at this time. The remaining cars needed for full production will be staged in as we start to move ore to the Port. The cars needed are available through the UP, but are being staged in so that we have sufficient space at the site to move trains easily.

Since we are finalizing many of the details to move into a shipping scenario, updates will be given as progress is made, but not every Monday. Once we begin moving trains, we will actually put out more frequent updates. We appreciate your patience during this transition time at the mine.