INCO Shebandowan

The Corporation continues its exploration activities on INCO Limited�s (�INCO�) Haines and Conacher properties, located approximately 80 kilometres southwest of Thunder Bay and the subject of an option joint venture agreement with INCO.

The Haines and Conacher properties surround INCO�s former Shebandowan mine. In April 2006, an amendment to the option and joint venture agreement added the Shebandowan mine to the property package. In order to earn a 50% interest in the property the Corporation must make cash payments of $200,000 and incur exploration expenditures of $3,000,000 on or before March 30, 2008. To date the Corporation has spent $575,000 on exploration on the property and made payments of $75,000. Under certain conditions, INCO retains a back-in right to increase its interest by an additional 10%.

The exploration target(s) is for komatite-hosted, "Kambalda-style", Ni-Cu-PGE deposits, similar to that found at the past producing Shebandowan Mine and in a series of Ni, Cu occurrences located west of the Number 1 Shaft.

In late 2005, a short 4-hole diamond drill program on the D Zone Ni-Cu Prospect located approximately 1,500 meters along strike of the past producing Shebandowan Mine. Drill results included 4.55 meters of 3.00% Ni and 0.90% Cu from hole SP-05-005 and 2.25 meters of 3.36% Ni and 1.15% Cu from hole SP-05-008.

A more aggressive drill program is planned in 2006.