RING OF FIRE INVESTMENT OPPORTUNITIES IN ONTARIO S FAR NORTH

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1 RING OF FIRE INVESTMENT OPPORTUNITIES IN ONTARIO S FAR NORTH December 1 st, 2010 Devin Cranston Information and Marketing Services Ontario Ministry of Northern Development Mines and Forestry

2 Investment Opportunities in the Ring of Fire of Ontario s Far North Background The Ring of Fire area in Ontario s far north represents a rare and unique investment opportunity for those seeking to realize a rate of return in equity markets and organizations seeking to secure supply of raw materials for manufacturing by financing development. There may also be opportunities for organizations to engage in public/private partnerships to develop required infrastructure. Already a number of significant and contrasting world class mineral deposits of chromite/pgm s and nickel/copper/pgm s have been made by the dozens of mining and mineral exploration companies working in the Ring of Fire area and more discoveries are anticipated. On the scale of the South African Bushveld complex, the world s largest chromite and PGE producing district, the Ring of Fire area is emerging in its own right and may prove to be equally prospective. Some industry veterans are beginning to suggest that the Ring of Fire has real potential to rival mineral production from the world s most prolific chromite/pge mining camps. Geological Setting The Ring of Fire area straddles the boundary between Archean basement rocks of the Superior Province and unconformably overlies Paleozoic sedimentary rocks of the Hudson Platform. The area is underlain by the arcuate Neoarchean McFaulds Lake greenstone belt and sub vertically dipping mafic to ultramafic intrusions, at least some of which are layered and crosscut the western portion of the belt. This area contains several large, Archean layered intrusions, mostly along or close to a major northwest-trending, sheared terrain boundary from Big Trout Lake to east of Wunnummin Lake. The detailed geology of the area around the Ring of Fire intrusion is inferred from airborne geophysical data supplemented by sparse gravity and diamond drill data. Magnetic patterns suggest a basement complex comprising volcanic and sedimentary belts between large expanses of granite and gneisses. The Ring of Fire Intrusion is a mantle-derived, highly magnetic peridotitic intrusion, emplaced along the margin of a granodiorite pluton which has intruded and deformed the host greenstone belt rocks. The RFI is magnetically distinct allowing it to be traced more or less uninterrupted, for tens of kilometers along the granodiorite margin. Given the fact that at least two ages of mafic to ultramafic intrusive activity have already been identified in the region, there is likelihood that other intrusions will be found. A large greenstone belt has been identified by geophysics north of the Ring of Fire. Its mineral potential also remains to be seen. For further geological interpretation of the area please consult Mark Smyk P.Geo. Regional Resident Geologist, Thunder Bay North District, Ministry of Northern Development, Mines and Forestry at mark.smyk@ontario.ca

3 Exploration History In 2002 a De Beers diamond exploration program intersected interesting grades of copper-zinc mineralization in drill core which resulted in a staking rush. From 2003 to 2007 more than 30 companies were actively staking and exploring the area. The discovery of the Eagle One high grade Ni-Cu-PGE deposit resulted in a second staking rush which is widely considered to be the largest in Ontario s history. In 2008 the Eagle Two Ni-Cu-PGE deposit and the Blackbird One, Big Daddy and Black Thor chromite deposits were discovered. By early 2010 impressive NI compliant resource estimates were released for all of these deposits. Recently additional zones of chromite mineralization have been discovered, confirming the world class nature of the area. Ontario Mining and Exploration Policy Ontario has a healthy and vibrant mineral resource sector and has been a major supplier of metals and industrial minerals to the world for more than a century. Ontario continues to encourage exploration and development of its natural mineral endowment, thereby maximizing growth opportunities for investors. Ontario offers one of the most competitive tax and fiscal regimes for exploration and mining anywhere in the world. It s regulatory and taxation regime is particularly beneficial to the North, where exploration and mining is integral to the fabric of society. Some of the many taxation and fiscal incentives available to those organizations that explore for and develop mineral deposits in Ontario are as follows: Focused flow through shares for exploration reduces the after-tax cost of a $1,000 investment up to $432. Capital tax exemptions progressive increase to the exemption with a planned elimination of the tax by 2012 Tax holiday on new or expanding mines includes a 10 year tax holiday for new remote mines Ontario has introduced a one window approach to mineral development. Under the new one window process Ontario will appoint a Mineral Development Officer to guide proponents through the permits and approvals process resulting in a more coordinated and efficient approach. Geosciences data and knowledge supports the mineral sector in Ontario by facilitating informed decision making. Geology Ontario ( is a web based data and information access system. In addition to providing a link to the Geoportal (internet based gateway to permitting for the exploration and mining industry) the websites allows users to search ClaimMaps to identify lands available for staking claims and to search over 85,000 reports and maps from Ontario Geological Survey publications.

4 Ring of Fire Ontario Government Priority Ontario recognizes the world class mineral potential of Ring of Fire and has made development of the area a strategic priority. Ontario has opened a Ring of Fire Secretariat. The office will be led by Dr. Christine Kaszycki whose experience includes being the Assistant Deputy Minister responsible for mines and minerals in both Ontario and Manitoba. The office will ensure that a collective effort is made in advancing economic development in the area. While development is still in its early days, the Ontario government has already committed $45 million over the next three years towards a new project skills training program to help Aboriginal Peoples and Northerners benefit from the emerging economic development opportunities. Active Mining Claims Ring of Fire - Ontario Far North

5 Active Claim Holders Ring of Fire - Ontario Far North Alberta Ltd. INV Metals Pele Mountain Resources Inc. Abitibi Royalties Inc. James Bay Resources Ltd. Peplinski, Michael Walter Avalon Rare metals Inc. Kasabonkia Minerals Corp. Platinex Inc. Canada Chrome Corp. Landore Resources Canada Inc. Probe Mines Ltd. Candor Ventures Corp. Loder, Kevin Dale Rainy Mountain Royalty Corp. Canterra Minerals Corp. Mantle Diamonds Canada Inc. Renforth Resources Inc. Casey Enterprises Inc. Melkior Resources Inc. KWG Resources Inc. Cliffs Natural Resources Inc. Metalcorp Ltd. Ring of Fire Resources Inc. De Beers Canada Inc. Metalex Ventures Ltd. Shewaybick, Donald Debuts Diamonds Inc. Metaux DNI Inc. Sinocan Resources Corp. Macdonald Mines Exploration Inc. Meunier, David Slam Exploration Ltd. Fancamp Exploration Ltd. Mill City Gold Corp. Spade, Bill Simon Gamblin, Joe, James Moses, John Ross Temex Resources Corp. Golden Valley Mines Ltd. Noront Resources Ltd. Tribute Minerals Inc. Greenstone Exploration Ltd. Northern Shield Resources inc. Trillium North Minerals Ltd. Hodge, Harry J. Northern Superior Resources Inc. UC Resources Ltd. Hudson River Minerals Ltd. O Keefe, Glenn Ernest White Tiger Mining Corp. Hussey, John, Calvin O nabigon, Derrick Francis The preceding table identifies the mining companies or independent prospectors with mining claims in the Ring of Fire. Companies such as Cliffs Natural Resource, Noront Resources, KWG Resources and Probe Mines have already made substantial world class mineral discoveries, however since further discoveries are anticipated it is recommended that consideration be given to the others. The highest rate of return on mineral exploration related investments is most often associated with mining claims that have not yet yielded results. Most of these companies maintain websites which provide further information and identify key contacts. The information and Marketing Services Section of the Ontario Geological Survey ( can provide information as well. CLIFFS NATURAL RESOURCES INC. NYSE: CLF Cliffs Natural Resources Inc. is the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump and fines iron ore from Australia and is a significant producer of metallurgical coal. Through its acquisition of Freewest Resources and Spider Resources, Cliffs now owns 100% of the Black Thor and Black Label chromite deposits and a majority share of a third, the Big Daddy deposit, in the Ring of Fire. Diamond-drill core samples within these three deposits have consistently intersected significant chromite zones with world-class thickness, grade and chromium to iron ratios. Compliant resource estimates to date are as follows; Black Thor Chromite deposit - ~70 million chromite Big Daddy Chromite deposit - ~69.5 million 40.01% chromite

6 These chromite deposits are near surface, open to depth and along strike and there is high potential to significantly increase tonnages. Cliffs Natural Resources has a substantial customer base in the United States and is looking to augment this relationship by providing these and other international customers with the key ingredient in the manufacturing of stainless steel. Partnering with Cliffs Natural Resources represents a rare opportunity to secure a long term stable supply of chromite and ferrochromium. PROBE MINES LTD TSX: PRB Shares Outstanding 37,272,581 Market Cap CAD $61,127,033 Probe Mines is a Canadian base and precious metal explorer that has made a significant discovery of chromite mineralization in the Ring of Fire. The discovery has been named the Black Creek Chromite Deposit which is thought to be an extension of Cliffs Natural Resources Black Thor Chromite deposit. On August 23 rd, 2010 Probe Mines released an initial NI compliant resource estimate for the Black Creek Chromite deposit. Category Tonnes Avg. Cr2O3 % Cr:Fe Ratio Measured (M) 3,729, Indicated (I) 1,985, Total M & I 5,714, Inferred 2,726, The resource estimate tested the chromite horizon along a strike length of ~200 meters and to a depth of ~175 meters. On November 09, 2010 Probe Mines announced that they received assay results for its recently completed third-phase drill program. Six of the 10 holes intercepted chromite mineralization, returning long intercepts of high grade chromite all containing significant intervals of greater than 40% Cr2O3. The company has also indicated that this most recent round of drilling extended the strike length of the deposit by ~ 115 meters and to a vertical depth of ~ 320 meters. This represents an increase in strike length of ~58% and an increase of the depth by ~ 83%. The company has also indicated that one of these drill holes intersected chromite mineralization under less than 4 meters of overburden suggesting that the deposit could be mined using open pit methods. Probe Mines is currently working on an updated resource estimate. The estimate is expected to be released by the end of November, The recent exploration successes by Probe Mines will likely result in a substantial tonnage increase to the Black Creek deposit

7 Noront Resources Ltd. TSX: NOT Shares Outstanding - 176,058,641 Market Cap CAD $177,819,227 Noront Resources is a Canadian junior exploration company focused on exploring and developing its estimated 12,000 square kilometer land position in the Ring of Fire. Noront Resources has made a significant chromite discovery and have drilled off a magmatic massive sulfide deposit of Ni/Cu/PGM s with grades rarely seen in poly-metallic nickel based sulfide deposits throughout the globe. Noront s Eagles Nest, Ni/Cu/PGE compliant resource deposit has been delineated to a depth of ~1150 meters. Measured and Indicated resource of 6.9 million tonnes at 2.04% Nickel, 0.95% Copper, 3.4 g/tonne palladium and 1.3 g/t platinum. Inferred resource of 4.3 million 0.87%Cu and 3.4 g/t palladium and 1.3 g/t platinum Noront is currently focused on converting the inferred resource to the indicated category and defining the deposit at depth. The company has recently (September 28 and October 13) released very encouraging drill results in regard to infill and deep drilling activities. The company has suggested that they have completed enough infill drilling to move the inferred resource to the measured and indicated categories and the deep drilling results suggest that this mineral deposit extends to depths well below the current resource estimate. Blackbird Chromite Deposit Measured and indicated million 34.8% Cr2O3 with a Cr:Fe ratio of 1.89 Inferred million 33.4% Cr2O3 with a Cr:Fe ratio of 1.87 The Blackbird Chromite Deposit is located immediately adjacent to the Eagles Nest Ni/Cu/PGM deposit, representing a unique opportunity to extract Ni/Cu/Pt/Pd and Cr from the same mine. MACDONALD MINES EXPLORATION LTD. TSX: BMK Shares Outstanding 37,272,581 Market Cap -CAD $61,127,033 Macdonald Mines Exploration is a Canadian junior with a significant land position in the Ring of Fire. The company is currently focused on exploring the Butler Property which has yielded interesting grades of copper/zinc volcanogenic

8 massive sulfide mineralization in 4 areas over a strike length of approximately 20 kilometers. Recently Hudson Bay Mining and Smelting, a large Canadian zinc/copper/gold/silver miner has made a significant investment in Macdonald Mines. The non brokered private placement is for CAD $3.4 million. The funding is to be used to further test these copper/zinc discoveries on its Butler Property. With the investment, Hudson Bay Mining and Smelting has obtained a ~10% equity stake in Macdonald Mines Exploration Ltd. FANCAMP EXPLORATION LTD TSX: FNC Shares Outstanding 56,119,612 Market Cap CAD $29,743,394 Fancamp Exploration Ltd. is a Canadian exploration company with an inventory of resource projects in various stages of development. Fancamp is the owner of mining claims located contiguous (and between) Cliffs Natural Resources and Noront Resources Ltd. Cr/PGE and Ni/Cu/PGE s deposits. On November 12, 2010 Fancamp announced the commencement of a 3,000 meter drill program on its 100% owned Ring of Fire property. There is potential for Fancamp s mining claims to host extensions of both the Big Daddy Chromite Deposit the Eagles Nest Ni/Cu/PGM deposit.

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