Exploration -  - McCreedy West Mine Property

Exploration for additional nickel contact mineralization was the primary focus at the McCreedy West Property during 2008, including drilling proximal and within both the Boundary and Canoe deposits. The Boundary Deposit, located along the southern and eastern boundary of the McCreedy West Property, covers a 1,500 ft section of the SIC contact. A total of 28,738 ft in 34 holes was completed on the Boundary Deposit during the year and several of these holes were driven through the SIC contact and into the footwall package. Mineralization occurs as a series of mineralized pods located in traps similar to the up-dip Inter Main Deposit, for example hole FNX 3232 cut 63.4 ft of 1.0% Ni and 0.1% Cu.

The nickel-rich Pod 37 (formerly known as the Canoe Deposit) is located approximately 500 ft east of the known mineralized pods of the Inter Main Deposit between the 900 and 1300 Levels. Four holes totaling 7,945 ft confirmed the previous limits of mineralization and additional holes completed in 2008 by production staff added to the confidence in the resources. Pod 37 was intersected by development drifting in November 2008. Further development of Pod 37 will await higher nickel prices.

Footwall copper-precious metal exploration at McCreedy West in 2008 was limited to a seven hole program from the 1550 Level and two holes from the 1490 Level. The former holes tested the footwall to the historic Middle Main Deposit, while the latter holes tested for possible down-dip extensions to the PM Deposit. Both sets of holes encountered no significant mineralization.

No further drilling is planned in 2009 at the McCreedy West Property. Exploration activities will be limited to compiling the 2008 drill results and developing auditable mineral resource estimates.