PROJECT UPDATE:

The project review, scheduled for the beginning of August in Timmins, Ontario, will include the new Board of Directors and management team, project geologists, previous consulting geologists to the Company and several property vendors. Based on this review, the Company will develop specific plans for each project which will be announced shortly thereafter.

A preliminary review by the new management has identified certain priority project areas:

Langmuir W4 Nickel Deposit: The Langmuir nickel project, located within the boundaries of the City of Timmins, Ontario, is a high grade nickel deposit amenable to open pit mining methods. The deposit contains an indicated resource 677,000 tons grading 1% (14,813,000 pounds of nickel) and inferred resource of 171,000 tons grading 0.89% (3,360,000 pounds of nickel), see May 19, 2010 news release. According to the SRK Consulting report, the next step to advance the project is to commission environmental, metallurgical, and scoping studies as well as conduct infill drilling on sections of the deposit in the inferred category. It is recommended that deep drilling beneath and downdip of the deposit will be handled as a different campaign in order to expedite the initial scoping study.

Radio Hill Iron-Ore Project: The recent 43-101 Technical Report of the Radio Hill Iron-Ore Project conducted by MICON International Ltd. contained a number of exploration recommendations for the Company. A $3.5 million exploration program has been outlined by MICON to advance the project and provide the data necessary to commission a NI 43-101 Resource Estimate. Numerous historical resources estimates have been conducted on the project ranging 90.2 million tons of iron-ore grading 27.3% (limited to a 680 foot elevation cut-off) to 427.6 million tons grading 27.3% (no known elevation cut-off). An estimated 140 drill holes have been put into the Radio Hill Iron formation.

CORPORATE UPDATE:

Dr. Trygve Hoy, P.Eng. has been added to the Board of Directors and he will play an instrumental role in the evaluation of the Company's projects. The new management team has commenced a review of the Company's website and expects this to be completed by the end of July. Following the project review, the Company will provide further updates to shareholders of its priorities and recommendations for each project.

Thanx marine2.