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Paleoproterozoic MUM Complexes
of the Fennoscandian Shield
ARTIC PLATINUM PROJECT
Regional Geology
Regional Stratigraphic Correlation of
Platinum Group Metals Mineralization
SCHEMATIC CROSS SECTION
THROUGH KONTTIJARVI
In March 2006 the Company entered into a formal Joint Venture Agreement with Gold Fields Limited to further explore and develop a mining operation at the Arctic Platinum Project (�APP�) located in Finland. The APP includes several advanced stage platinum group metal projects. NAP has been granted an option to acquire up to a 60% interest in the project. NAP is of the belief that the APP Project represents one of the world's best undeveloped PGE opportunities.
In order to acquire its interest, NAP must satisfy the following conditions on or before August 30, 2008: (i) incur exploration expenditures of US$12.5M; (ii) completion of a feasibility study; (iii) a production decision; and (iv) payment to Gold Fields of up to US$45 million through the issuance of NAP common shares. Upon forming a Joint Venture, Gold Fields would retain a back-in right to acquire an additional 10% by reducing the number of NAP common shares by 20%.
The APP covers several advanced stage exploration properties including the Konttijarvi and Ahmavaara Open Pit Projects, collectively known as the Suhanko Project, that were the subject of a Feasibility Study completed by Gold Fields in 2005. The exploration target at Suhanko is for bulk tonnage, disseminated to locally semi massive base metals and platinum group elements occurring near the base of the Konttijarvi-Suhanko Intrusive.
The APP also includes the nearby Narkaus (SK) and Penikat (SJ) Projects both of which host significant platinum group and base metal mineralization.
For 2006, the Company plans to re-evaluate the Suhanko Project at a higher cut-off value than that used in the Gold Fields Feasibility. The Company also intends to begin drilling selected targets within the Narkaus and Penikat Projects as well as commence preliminary mineralogical and metallurgical test work. Drilling is expected to continue through the first half of 2006 after which mineral resources will be calculated to be incorporated into the larger APP Scoping Study that is currently scheduled to be completed early to mid 2007.
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