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2012 Nova Scotia Mineral Incentive Program

Diane WebberOctober 29, 2012Program Structure and Some Early ResultsNatural ResourcesNatural Resources1The Goal increase and promote mineral exploration leading to further development of mineral properties and new, producing mines in Nova Scotia

Natural ResourcesTo bring some of our mineral prospects/properties to the next level2Previous Programs in NS N.S. had MISP (1980s) and PAP (1990s) MISP = fed $50K; PAP = fed/prov $5K PAP $5,000 grants were popular and successful: - Zeolite play (C2C - North Mountain ~ $300k) - Trout Lakes, C.B. (Regal Goldfields ~$150k) - Birth of Gammon Lake Resources ($2.2B) - Training of many of todays prospectors Natural ResourcesNS has previously had MISP (Mineral Investment Stimulus Program ) and PAP (Prospectors Assistance program)A few examples of successes:$5k optioned from Ian Booth to C2C , ballooned into a play that ultimately ended in exploration expenditures of $300k$5k to Tri-ex promoted the play and Regal picked it up and explored for Voisey Bay-type model and spent $150k$5k to Brad Langille who completed some grass roots exploration at Gammon Lake and ultimately started Gammon Lake Resources.. which became a company worth $2.2B.. So $15,000 gov investment resulted in hundreds of thousands of dollars of expenditure in the province and some great success stories32012 NSMIP Components Total 2012 Budget $700,000Prospector GrantsAdvanced Project GrantsProspector TrainingProspector Marketing and Assistance

Natural Resources4Grant Application Evaluations Review and Evaluation Committee Application scoring included:

Potential that NSMIP input will advance the property

Geological potential of the property and commodities of interest

Quality and presentation of the proposal

Exploration model assessment (innovative model, new spin, new zones)

Applicants technical and financial ability to completeNatural ResourcesEach application/proposal was scored based on a list of criteria 5 Up to $15k/yr straight grant, registered prospectors Grass roots level exploration on staked properties In-the-ground exploration support (i.e. not salary) - Assays, trenching, DDH, surveying, rentals, etc. - GPS, safety devices and First Aid course 39 Prospector Grant applications 16 grants awarded totaling $164,805Prospector Grants - 2012 Natural Resources6 Exploration companies, beyond grass roots Hold mineral rights or option agreement Up to 50% NSMIP input to max. $100,000 In-the-ground exploration support (i.e. not salary)- DDH, assays, trenching, geophysics, geochem- Metallurgy, NI43-101, community engagement 28 Advanced Grant applications 13 grants awarded totaling $440,000Advanced Project Grants - 2012 Natural Resources7

NSMIP Grant Distribution, 2012Natural ResourcesThis slide shows the distribution of Mineral Incentive Program projectsGreen prospector grants16 grants (9 gold exploration, copper, zinc, silver, antimony, cobalt, nickel, moly, tungsten, rare earth elements)Blue advanced program grants13 grants (7 gold exploration, gypsum, lead, zinc, copper, nickel, tellurium, antimony, silver, rare earth elements)8How We Compare Nationally Province Amount Min. Exp. Tax Credit Flow Through Prog.Nfld & LabradorNew BrunswickManitobaYukonNunavit & NWTQuebec & B.C.SaskatchewanOnt., Alta., PEI$2,000,000$1,000,000$1,000,000$570,000$50,000 ($8K) Nova Scotia$700,000Natural ResourcesSome of these are MIPs and some PAPs

9Prospector Marketing Assistance ($35,000) Conferences and promotional material Up to $1,250/yr per prospectorProspector Training ($50,000) Considering concept of an online, module-based, prospector training course supplemented with field trainingProspector Marketing and Training

Natural ResourcesWe at the Branch will be overseeing prospector training component but it will be proponent-drivenWe are currently10

Preliminary Results

Natural ResourcesBetween the 3 of us George, Ron and I visited just about all of the active work programs of proponents in the MIP program except any that havent been started yetAlready seen some really positive results.highlight a fewThis is information that recipients have given us with permission to say a few preliminary things but for sensitivity reasons we and the companies cant say disclose much at this point

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Cu Lake Cu-Au (IOCG) Minotaur AtlanticNatural ResourcesMinotaurs Copper Lake IOCG play in the Cobequid Highlands Their Mineral Incentive work program was completed in the exploration licence outlinedOld historic mine (Copper) from 1800Area was determined in 70s to be gold positivePrevious drillholes in mine areaMinotaur drilled one hole yellow star showing location

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Residual Gravity Map, Copper Lake area

Perspective view of Cu Lake gravity target with DDHsNatural ResourcesMinotaur completed a large scale gravity survey a few years agoOne of their top 12 priority targetsShows the anomaly on plan view relative to old workingsThe company expressly said they would not have done this work if not for the MIPNew slideMinotaur modeled the gravity into the second 3D perspectiveAs you can see the historic drilling did not test the anomaly more recently identified in the Minotaur survey..was too shallowSee the recently completed 570m hole completed by Minotaur with MIP moneyOne of our prospectors John MacIsaac optioned the property to Minotaur and subsequently worked for them to help execute this work program

14Cu Lake Cu-Au (IOCG) Minotaur Atlantic

DDH CL12D01 Minotaur AtlanticIOCG-style quartz-sericite alteration and brecciationIOCG-style hematite-pyrite-carbonate veinNatural ResourcesPhotos from Minotaurs very recent press release (Oct 5) to ASXShowing results from drill hole in the anomalyHit widespread IOCG-style quartz-sericite alteration and brecciation up to 60 m thick Very wide spread zonesPhoto ofIOCG-style hematite-pyrite-carbonate veining belowCurrently assaying for an IOCG elemental signatureThis prospect looks very promisingKeep in mind this is only the 3rd high priority target tested out of the 12 established from Minotaurs gravity survey

15Gypsum - Port Hawkesbury AreaAcadia Drywall Supply Limited

Natural ResourcesAnother Mineral Incentive Program recipient was Acadia DrywallAcadia is looking for their own local source of gypsum that has proximity to their wallboard plant in Pt Tupper near Port HawkesburyThe can then secure their supply and improve the economic feasibility of the manufacturing plant (currently trucking from Milford)$35k

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Gypsum Deposit Evaluation SitesAcadia Drywall Supply LimitedAcadia Drywall Plant,Point TupperBeaver Dam Lake SiteAshfield SiteNatural ResourcesThey have been evaluating a couple sights (Beaver Dam Lake & Ashfield) and started with RC drillingThey are currently evaluating the quality of gypsum encountered in the drilling A positive result from this would mean a substantial economic impact on this plant and business

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Zone 6B Au Prospect C.B. HighlandsJoe RichmanNatural ResourcesProspector Joe RichmanYou can see the index map at the top right to see where its located in CBExplored from 1986-90, Inco Scominex and you can see the gold occurrences marked with an xInco was looking for hemlo-style mineralizationnot interested in the qtz veins and walked away and dropped the groundLast prospect they explored was zone 6b in 1989Found numerous sites of vein gold in qtz hematite veins (some were richly auriferous)Joe picked up the property and has been doing work here for the last few yearsHe completed trenching last yearpromising results18Positive Results from 2012 Trenching

Zone 6B trench from earlier trenchingAu-bearing veinfrom 2012 trenching(Au assays 21 g/t, 9 g/t, 7 g/t)Natural ResourcesThis year with a $15,000 MIP grant Joe was able to complete another trenching program and found new vein materialSubstantially increased the size of exposed vein by 300%Joes assay results: 21 g/t, 9 g/t, 7 g/t These results are very promising19

Thank YouNatural ResourcesIn closing I would like to say we are very happy with this years programStarting to show some promising resultsThere are more to comeIf any of you would like more details on the program you can talk to George OReilly the program co-ordinator. George has a Mineral Incentive program poster display in the ballroomLastly I encourage all of you to share your successes, positive feedback and support for our Mineral Incentive Program. Let the decision-makers know how important this program is to you and for attracting investment and growing the economy of Nova Scotia.

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