Exploration -  - Levack Mine Property

The 2008 exploration program on the rest of the Levack Property tested both footwall and contact targets for a total of 65,730 ft. Footwall targets tested during the year included a possible footwall corridor below Rob’s Deposit, the footwall potential behind the No. 7, No. 1, No. 2 and No. 3 nickel deposits and the footwall below the historic Main Deposit. Hole FNX 6111 was drilled in the footwall of the No. 3 Deposit and cut a wide zone intersected by multiple stringer mineralization, for example 1.7 ft averaging 10.8% Cu, 0.1% Ni and 32.9 g/t TPM and 2.5 ft grading 15.8% Cu, 0.5% Ni and 51.3 g/t TPM. These results will eventually be further tested from underground drill stations. Other footwall target holes include a surface hole designed to reproduce the original LFD discovery hole, FNX 6010, but located 1,000 ft deeper and surface hole FNX 6110, drilled through the SIC contact into the footwall behind the LFD. Neither of these holes intersected any significant footwall mineralization, however, the latter hole cut 32.5 ft of 1.4% Ni and 0.6% Cu plus another 18.8 ft grading, 1.3% Ni and 0.3% Cu.

No surface footwall drill program is planned for Levack in 2009. Exploration at Levack Property will be focused entirely on the underground drilling program targeting the footwall corridor below the Main Deposit and behind Rob’s Deposit.