In 2008, the Levack Mine shipped 251,751 tons of ore. Most of the 2008 production came from the No. 7, No. 7 Extension and the No. 1 and No. 2 nickel deposits.

Development of the 1300, 1900, No. 1 and No. 2 nickel deposits was halted in the second half of 2008 because final terms and conditions of the off-take agreement could not be confirmed with the Company’s customer. Commercial production of nickel deposits was suspended in October 2008 due to declining commodity prices and low provisional metal accountabilities, although a 37,665 ton batch sample was subsequently mined in the fourth quarter and shipped for batch processing. The batch sample was treated as commercial production for accounting purposes. Current metal prices do not support mining of nickel ores at Levack and all nickel mining at Levack was suspended indefinitely late in 2008.

The Company’s 2009 production plan at Levack Mine calls for production of 27,000 tons only from the narrow vein, Rob’s Deposit. This Deposit is a nickel-copper deposit which represents the transition between the contact nickel mineralization and the high grade copper-precious metal deposits.

Plans for 2009 at the Levack Mine include an additional 8,200 ft of access development for the LFD and completion of the No. 2 Shaft rehabilitation to the 3600 Level.