North American Nickel (NAN.TSXV) Technical Presentation, Feb 2013


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North American Nickel is a mining exploration company which has recently made a world class nickel discovery in "Maniitsoq Greenland". It is the site of a 3 Billion year old asteroid hit where conditions for such a discovery are favourable. Additionally the discovery is only 25 km from tidewater which is a very important factor when considering developing a base metal deposit. Trading symbol is NAN.V on the TSX Venture Exchange.

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North American Nickel (NAN.TSXV) Technical Presentation, Feb 2013

  1. 1. Maniitsoq Project Sulphide hosted Nickel Copper Cobalt & Precious Group  Metals  South West Greenland London Presentation February, 2013
  2. 2. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Forward Looking Statements NOTE: Some of the statements contained herein may be forward‐looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward‐looking statements that involve various risks. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward‐looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward‐ looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. North American Nickel Inc. undertakes no obligation to update such forward‐looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward‐looking statements.
  3. 3. Maniitsoq Ni‐Cu‐Co‐PGM Project Introduction South West Greenland Project Location  100% interest in a giant property covering 4,983  km2 of the highly prospective, but underexplored,  Maniitsoq Impact structure.  Located on the south west coast of Greenland pack  ice free all year round due to the presence of the  Irminger Current, a tributary of the Gulf Stream. Slide 3
  4. 4. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Introduction  100% ownership of tenements covering the  Maniitsoq meteorite impact structure.  High grade and tenor sulphide hosted Ni‐Cu‐Co‐ PGM mineralisation defined at the surface and  along the length of the structure.  Located on the ice free southwest coast of  Greenland, deep water navigable by Panamax  vessels all year round. The best location in  Greenland for all year round mining & shipping of  concentrate.  Greenland’s capital, Nuuk, 30 minutes by helicopter  and provides European standard coastal re‐supply  and logistics facilities 4hrs shipping time.  Greenland is a pro‐mining country. Slide 4
  5. 5. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Project History MANIITSOQ IMPACT MELT ZONE (APPROX.)  Danish explorers 1962 to 1973: extensive mapping and  shallow diamond drilling but wrongly orientated, smoke  but no fire.  Cominco & Falconbridge: 1993 to 2000 fixed wing (non  optimal) and small surface EM surveys completed plus  extensive high quality geo‐chemical analysis of historical  core.  2011 NAN acquires project reviews historical data and  then conducts first terrain hugging helicopter‐borne EM  survey: 25 new conductors identified.  Davis Strait  2012 Geological Survey of Denmark and Greenland et al identifies Maniitsoq meteorite impact site within NAN’s  tenements.   Maniitsoq impact interpreted to be larger than  the impact that produced the Sudbury Basin in  Ontario, Canada, a meteorite impact structure  with >1.3Bt of Ni‐Cu‐Co‐PGM mined and current  resources. Slide 5
  6. 6. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Project Geology MANIITSOQ IMPACT MELT ZONE (APPROX.) GREENLAND NORITE BELT  Centred on a giant, Archean‐age (~3.0 Ga) impact site ‐ possibly the largest yet identified on Earth (Garde et al.,  2012*).  Ni‐Cu‐Co‐PGM mineralization (red stars on adjacent  map) is hosted by norite intrusions (shown in purple on  the map). These intrusions represent contaminated,  mantle‐derived, nickel‐rich, ultramafic magma emplaced  in a conduit system as a result of the impact.  Norites are post kinematic (i.e. undeformed) and  commonly contain exotic inclusions (xenoliths) of  shocked gneissic country rock confirming that they were  emplaced after the impact in a dynamic flow system. Davis Strait  Norite intrusions range in size from several square  meters to 8 km2 and are concentrated in, but not  exclusive to, a 75 km long by 15 km wide belt known as  the Greenland Norite Belt. *Garde , A.A., McDonald, I., Dyck, B. & Keulen, N. 2012: Searching for giant, ancient impact structures on Earth: the Meso‐ archaean Maniitsoq structure, West Greenland. Earth and Planetary Science Letters 137–138, 197–210. Slide 6
  7. 7. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland 2012: The Confirmation & Discovery Year at Maniitsoq  NAN identifies an additional 54 new EM  conductors; 79 detected to date. MANIITSOQ IMPACT MELT ZONE (APPROX.)  Discovers new sulphide mineralisation at Spotty  Hill: 123.94m @ 1.00% Ni eq* including 24.2m @  2.12% Ni eq*  Confirms exploration model by successful drilling  at Imiak Hill: 26.98m @ 1.18% Ni eq* including  16.64m @ 1.60% Ni eq*  Discovery of PGM mineralisation at Spotty Hill,   the Maniitsoq “game changer” Davis Strait  Established institutional investor support via non  brokered private placement with strategic partner  The Sentient Group Ni equivalent calculated  based on spot prices for Ni, Cu,  Co, * Ni eq = Pd and Pt on Jan. 27, 2013. Slide 7
  8. 8. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland 2012: Spotty Hill “Discovery” Drill Results Cross section of 2012 EM  plates, historical & NAN drill  results at Spotty Hill Highlights from Spotty Hill discovery hole MQ-12-005 123.94 m @ 0.81% Ni, 0.21% Cu, 0.03% Co, 0.26g/t PGM* Incl. 24.20 m @ 1.75% Ni, 0.34% Cu, 0.06% Co, 0.52 g/t PGM Incl. 8.20 m @ 2.39% Ni, 0.21% Cu, 0.07% Co, 0.60 g/t PGM Significant 2012 Drill intersections from  Spotty Hill OPEN Slide 8
  9. 9. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland 2012: Imiak Hill “Confirmation” Drill Results Longitudinal section of EM plates, historical  & NAN drill results at Imiak Hill Significant 2012 Drill intersections  from Imiak Hill Deepest intersection on trend Slide 9
  10. 10. Maniitsoq Ni‐Cu‐Co‐PGM Project Plans for 2013 South West Greenland MANIITSOQ IMPACT MELT ZONE (APPROX.) Exploration Plans for 2013/2014 Diamond Drilling To expand mineralized zones along strike and down dip at  Spotty and Imiak Hill sulphide loads and test numerous other  VTEM conductors. Helicopter TEM Surveys To cover several showings and ultramafic intrusions not  previously flown. Induced Polarization Surveys  Davis Strait To delineated disseminated sulphide mineralization at Spotty,  Imiak Hill and other showings. Field Mapping and Sampling To ground truth and sample VTEM anomalies and zones of  disseminated mineralization exposed on surface. Other Studies Mineralogical, petrogaphic and preliminary metallurgical  (QEMScan) evaluation of Maniitsoq sulphides and host rocks. Initiate environmental scoping plan in preparation for future  environmental baseline studies. Slide 10 Slide 10
  11. 11. World Class Nickel Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Potential Investor Risk Mitigation        100% ownership; district-scale land package (>Sudbury) Pub Co management/financing experience/Sentient Group Technical team is deep Secure political jurisdiction and no land claims issues Accessible, along year-round pack ice free coast line Historic exploration data is remarkable ($10M plus) Geology Abundance of Ni-Cu occurrences at surface & in drilling High Nickel Tenor – consistent and economic grade Major, long lived structures Large-scale mafic igneous event associated with giant impact  New technologies in “old” camp work – 75 EM anomalies Slide 11
  12. 12. Maniitsoq Ni‐Cu‐Co‐PGM Project Capital Structure South West Greenland North American Nickel Inc. Capital Structure Slide 12
  13. 13. Maniitsoq Ni‐Cu‐Co‐PGM Project Directors & Management South West Greenland Directors and Management Rick Mark, M.Ed (Admin) - CEO & Chairman: Rick has over 23 years experience in the public market place. He is also the CEO & Chair of VMS Ventures Inc. (VMS:TSX.V), and Harvest Gold Corporation (HVG-TSX.V), a December 2005 "spin off" from VMS, and is the President and CEO of Pancontinental Uranium Corp. (PUC-TSX.V). John Pattison, P. Geo., B.Sc. – Chief Geologist: John has extensive experience in base metal exploration, in particular, nickel sulphide deposits. His career extends from the nickel camps of Canada to southern Africa. From 1983 to 2002, John worked with Falconbridge Limited and associated companies where he was responsible for managing base metal, PGE and gold exploration projects. Neil Richardson, P. Geo. – COO: Neil has over 22 years experience in mineral exploration and mining operations of base metal and precious metal deposits throughout Canada. Mr. Richardson most recently the Manager of Exploration for Murgor Resources Inc. where he was responsible for delineation of two projects to National Instrument 43-101 compliant mineral resource estimates, project generation, process discipline and corporate growth strategies. Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P. Geo., C.P.G. – President & Director: Mark has 34 years of industry and government experience as an exploration geochemist and mineral deposits geologist. He was the Chief Geologist of the Mineral Deposits Section in Manitoba. In 2001, Mark was the recipient of the Provincial Geologists Medal, a Canadian national award for outstanding geoscientific achievement. He is also the Vice PresidentSlide 13 of Exploration and Technical Services of VMS Ventures Inc.
  14. 14. Maniitsoq Ni‐Cu‐Co‐PGM Project Directors & Management South West Greenland Directors and Management Gilbert Clark, B.Sc (Geology) – Director: Mr. Clark is a European based Geologist with more than 13 years of industry experience; principally in mining and international resource developments. Since 2010, Mr. Clark has been involved in private equity investments and appraisals primarily in the mining and energy sectors. He is currently an Investment Advisor with The Sentient Group, an independent private equity investment firm specializing in the global resources industry. Douglas Ford - Director: Since 1987 Mr. Ford has worked in the public markets, serving as CFO and board member of a number of junior companies with direct responsibility for all financial reporting, corporate finance and compliance activities. Edward Ford – Director: A Chartered Accountant, Mr. Ford is a leading specialist in all aspects of venture capital and bridge financing, with more than 40 years of experience creating and implementing financial development plans for client enterprises in Canada and the United States. Edward Ford has designed and managed a wide range of public marketing financing arrangements, private placements, investment syndicates and tax shelter instruments to fund the growth programs of client companies. James Clucas - Director: Mr. Clucas was Chief Financial Officer of Inco’s Canadian operations until 1984 and has been involved in the development of several mineral deposits, including the Snow Lake Mine (High River Gold Mines), Montana Tunnels (Pegasus Mining) and the Fenix Project (HudBay Minerals Inc.). He was the founder of International Slide Nickel Ventures Inc. which acquired and developed the Santa Fe/Ipora Nickel Laterite 14 deposit in Brazil.
  15. 15. Maniitsoq Ni‐Cu‐Co‐PGM Project Advisors South West Greenland Advisors John Rowntree, Hons B.Sc., FAusIMM, CIMM: John Rowntree has 46 years experience in the minerals exploration industry. He has been a founding director of several public exploration companies and has been responsible for property acquisition and for directing exploration leading to the discovery of economic gold, tantalum, uranium, platinum, copper/gold and TVM iron deposits in Australia and Greenland. John Ferguson, Ph.D., D.Sc., FAusIMM & Life Fellow Geological Soc. S. Africa: John Ferguson has been involved in the minerals industry, academia and four geological surveys for the past 50 years. He has conducted extensive exploration activities in several continents particularly focusing on gold, base metals, platinum group elements, iron ores, uranium, rare earth elements & diamonds. He has held positions as founding director of publicly listed companies, Professor/Reader at the University of the Witwatersrand and Division Head/Acting Director at the Bureau of Mineral Resources Geology & Geophysics, Canberra (now Geoscience Australia). Other survey appointments include working for the Greenland Geological Survey and as a NRC Fellow at the Geological Survey of Canada. He was responsible for the discovery of the platinum group metals resource at Munni Munni, Western Australia as well as the discovery of kimberlites and industrial minerals in southern Africa and Greenland. Slide 15
  16. 16. NORTH AMERICAN NICKEL INC TSX V: NAN Appendix I – Project Details (Slide 17) Appendix II – Nickel Markets (Slide 38) Appendix III – Greenland (Slide 43) FOR MORE INFORMATION PLEASE VISIT Slide 16
  18. 18. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Project Summary Deposit type: Magmatic Ni+Cu+Co+PGM sulphide Minimum deposit size: 10 to 15 Mt @ 1.2% Ni equivalent Location: Southwest Greenland Property status: 4,983 km2 in two exclusive mineral exploration licences. Infrastructure: None but most targets are <50 km from ice‐free tide water. Previous work: Prospecting and shallow drilling (average hole length <55 m) discovered  numerous high grade Ni showings in 1960’s and 70’s. Airborne and surface  geophysical surveys by Cominco and Falconbridge in the1990s failed to  identify any drill targets. Exploration rationale: Very possible that economic deposits were missed as 1990’s geophysical  technology had difficulty in the rugged terrain that characterizes the  project area. Modern helicopter TEM flown perpendicular to strike at low  altitude will have a much better chance of locating Ni+Cu+Co+PGM deposits. Slide 18
  19. 19. Maniitsoq Ni‐Cu‐Co‐PGM Project Project South West Greenland Milestones Project Milestones 2011     Identified Maniitsoq as favourable for nickel sulphide deposits and acquired large land position. Compiled all geological and historical exploration data in digital GIS format. Located key historical showings and drill holes in the field. Confirmed effectiveness of helicopter TEM by flying terrain‐hugging  helicopter EM survey over selected areas:  25 new  conductors detected 2012      Acquired additional ground based on positive 2011 results. Completed helicopter TEM and magnetic surveys of high priority areas (totaling 860 km2): over of 50 new conductors  detected. Commenced checking conductors on the ground. Drilled nine holes totaling 1,551 m to test conductors in three areas; made significant, multi‐element intersections at two  areas and encountered anomalous mineralization at the third. Geological Survey of Denmark and Greenland identified Maniitsoq meteorite impact site within NAN’s tenements. Plans for 2013     Drilling to expand mineralized zones intersected in 2012 and locate new zones of mineralization. Mapping, prospecting, sampling and geophysical surveys  over selected conductors, showings and other targets to delineate  and prioritize additional drill targets. Mineralogical and petrographic studies of the mineralization and host rocks. Begin scoping and environmental study plan in preparation for future environmental impact studies. Slide 19
  20. 20. Maniitsoq Ni‐Cu‐Co‐PGM Project Location South West Greenland Project Location  Situated in a safe, stable, transparent,  mining‐friendly jurisdiction.  Straight forward permitting process.  No land claims issues.  Mine development activities nearby  including proposed road and deep  water port construction (London  Mining’s Isua Iron project). Slide 20
  21. 21. World Class Nickel Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Potential World Class Nickel Potential  High‐grade, multi‐element diamond drill intersections over long intervals. e.g. 123.94 m @ 0.81% Ni, 0.21%Cu, 0.03% Co and 0.26 g/t PGM incl. 24.20 m @ 1.75% Ni, 0.34% Cu, 0.06% Co and 0.52 g/t PGM (NAN 2012 DDH: MQ‐12‐005)  Underexplored (previous hole lengths averaged < 55 m) but lots of high‐grade  historical assays with consistent high sulphide Ni tenor (6‐8%).  Mafic intrusions hosting the mineralization are contaminated mantle melts and  appear to have been part of a long‐lived, dynamic magma conduit system triggered  by a large impact (possibly the largest yet recognized on Earth).  Centred on major, long‐lived, deep seated structures that were active from the  Archean to the Jurassic (2.8 billion years).  New helicopter geophysical technology is proving far more effective than techniques  used in the past; over 75 conductive zones identified to date. Slide 21
  22. 22. World Class Nickel Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Potential Regional Geological Setting MANIITSOQ  Located in the Archean (3.8 – 2.55 Ga) North  Atlantic craton of southern Greenland.  Correlates with Nain province in Labrador.  Maniitsoq area comprised of about 80%  retrogressed 3.4 – 2.9 Ga granulite facies gneisses intercalated with supracrustal rocks  (15% amphibolites of volcanic origin and 5%  layered mafic complexes).  The supracrustal rocks occur in belts up to 6 km wide folded  into dome and basin patterns. NORTH ATLANTIC CRATON Slide 22
  23. 23. Maniitsoq Ni‐Cu‐Co‐PGM Project Regional Setting South West Greenland MANIITSOQ IMPACT MELT ZONE (APPROX.) Maniitsoq Project Maniitsoq Impact  Property is centred on a giant, Archean‐ age (~3.0 Ga) impact structure.  Possibly the largest impact yet identified  on Earth (Garde et al., 2012*). Finnefjeld Domain Davis Strait  Impact structure is cored by a 35x50 km  area of comminuted, homogenised and  variably melted rocks previously  mapped as granitic gneiss and now  referred to as the Finnefjeld Domain. * Garde A.A., McDonald, I., Dyck, B. & Keulen, N. 2012: Searching for giant, ancient impact structures  on Earth: the Mesoarchaean Maniitsoq structure, West Greenland. Earth and Planetary  Science Letters 137–138, 197–210. Slide 23
  24. 24. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Post impact events   included…  Intrusion of nickeliferous norites of the  Greenland Norite Belt over a time  period spanning at least one complete  geomagnetic reversal. Qaqarssuk Carbonatite  3 episodes of lamprophyre intrusion  (1800, 1200 and 600 Ma) with the  latest involving emplacement of  kimberlite.  Intrusion of the Qaqarssuk carbonatite  complex at 165 Ma.  All these events occurred along deep  seated, long‐lived structures created  by the impact. Slide 24
  25. 25. Maniitsoq Ni‐Cu‐Co‐PGM Project Regional Setting South West Greenland Historic Ni‐Cu Showings  14 significant showings; most hosted by norite intrusions, which are concentrated in the  Greenland Norite Belt (GNB) outlined here by  purple dashed lines.  All showings were discovered by  Kryolitselskabet Øresund A/S (KØ) between  1962 and 1973 through surface prospecting.  KØ made numerous intersections including:  9.85 meters averaging 2.67% Ni and 0.60%  Cu at Imiak Hill  12.89 meters averaging 2.24% Ni and  0.63% Cu at the Fossilik showing.  KØ drilled 119 holes totalling 6,287 m (i.e.  average hole <55 m long) to test outcropping  norites, exposed sulphide mineralization and  shallow electromagnetic (EM) anomalies  directly associated with exposed mineralization. Slide 25
  26. 26. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Noritic Intrusions DISTINCT APPEARANCE  Rounded hills covered with brownish‐grey, often  rusty, coarse gravel.  Individual bodies range from <2 m2 to 8 km2.  Many appear to be emplaced along 060° trending  structures.  Multi‐phase: compositions range from quartz  diorite, through norite, to lherzolite. Gabbronorite is the most common phase. POST KINEMATIC  Massive, little or no foliation except at margins.  Contacts often crosscut country rock foliation. COUNTRY ROCK ASSIMILATION  Country rock xenoliths with reaction rims.   Minimal insitu differentiation (dynamic system). Slide 26
  27. 27. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Sulphide Mineralization  Consists of monoclinic  pyrrhotite, pyrite,  pentlandite and  chalcopyrite.  Often coarse‐grained.  Likely to produce a clean  concentrate.  Inclusion‐bearing sulphide (i.e. sulphide breccia) is a  common texture and  indicates a dynamic  system. Imiak Hill Pingo Imiak Hill Quagssuk Slide 27
  28. 28. Consistently High Nickel Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Tenor Ni vs. S for Historical GNB Drill Core Nickel wt. % Typical 100% sulphide mixture of Po+Cp+Pn contains 35.7% S Kerr, 2003  Sulphides have a relatively  consistent nickel tenor of 6  to 8% Ni recalculated to  100% sulphide. DRILL CORE Sulphur wt. % Nickel Tenor After Shore, 2000 (Falconbridge Limited)  Presence of pyrite means  there is more S for a given  amount of sulphide than in  typical magmatic sulphide  deposits consisting mainly of  pyrrhotite‐pentlandite and  chalcopyrite. Slide 28
  29. 29. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland SCHEMATIC CROSS SECTION Deposit Model  Giant impact triggers mantle melting.  Hot ultramafic magma flows to surface through  a “conduit system” comprised of restricted  conduits and larger magma chambers.  Country rock is assimilated by the hot magma  resulting in sulphur saturation and production of  a sulphide liquid. COUNTRY ROCK  Ni + Cu ± PGE sulphide collects in zones of  lower velocity within the conduit system.  Continual magma flow upgrades the nickel tenor  of sulphide already deposited.  Magmatism eventually ceases and conduit  system is preserved as noritic rock.  Over time, uplift and erosion expose parts of the  magma conduit system and some of the  Ni+Cu±PGE sulphides. Slide 29 Modified after Maier et al., 2001
  30. 30. Previous Exploration Stymied by Maniitsoq Ni‐Cu‐Co‐PGM Project Lack of Conductive Targets South West Greenland Previous Geophysics Cominco 1995 – 1996 • 20,446 line‐km of airborne GeoTEM EM and  magnetic surveying. – Lines 200‐400 m apart oriented 080                      (subparallel to of many of the norites resulting  in poor coupling). – Large fixed wing aircraft had difficulty hugging  the rugged terrain resulting in noisy data. – Very few anomalies associated with norites. – Ground follow‐up prospecting, minor surface  geophysics (<30 line‐km) but no drilling. Falconbridge 1993 & 2000 • 100 line‐km of UTEM over Imiak, Spotty and  part of Fossilik. – Lines 200 to 400 m apart. – No conductors detected and no drilling done. Slide 30
  31. 31. Maniitsoq Ni‐Cu‐Co‐PGM Project Regional Setting South West Greenland Helicopter TEM • SkyTEM and VTEM helicopter‐borne TEM surveys  flown by NAN in 2011 and 2012 have detected  over 75 conductive zones (circled in red on the  adjacent map). • This technology was not available to previous  explorers. • NAN has flown the areas outlined in green,  which total 860 km2 and cover a major portion of  the Greenland Norite Belt. • To date over 75 conductive zones have been  identified (circled in red on map). Slide 31
  32. 32. 2012 Drill Program: Maniitsoq Ni‐Cu‐Co‐PGM Project Confirmation and Discovery South West Greenland 2012 Drill Program 1,551 METERS in 9 HOLES Spotty Hill – 1.00% Ni eq* /123.94 m incl. – 2.12% Ni eq* /  24.20 m Imiak Hill – 1.18% Ni eq* /  26.98 m incl. – 1.60% Ni eq* /  16.64 m * Ni eq =  Ni equivalent calculated  based on spot prices for Ni, Cu,  Co, Pd and Pt on Jan. 27, 2013. IMIAK HILL HOLE MQ‐12‐001 15.39 to 16.60 m Slide 32
  33. 33. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Fjord Slide 33
  34. 34. Maniitsoq Drilling Spotty HillNi‐Cu‐Co‐PGM Project South West Greenland Spotty Hill Drilling 123.94 m @ 0.81% Ni, 0.21% Cu, 0.03% Co, 0.26g/t PGM* Incl. 24.20 m @ 1.75% Ni, 0.34% Cu, 0.06% Co, 0.52 g/t PGM Incl. 8.20 m @ 2.39% Ni, 0.21% Cu, 0.07% Co, 0.60 g/t PGM PURPOSE: To test near vertical, pipe‐like VTEM con‐ ductor located along SW edge of a large  exposure of disseminated sulphides hosted  in norite. RESULTS: 9 X-SECTION LOOKING NW MQ-12-005 123.94 m of high grade  sulphides in hole MQ‐12‐005. 119 m of anomalous mineral‐ ization in MQ‐12‐009, which was  drilled outside the conductor     75 m NW of MQ‐12‐005. MQ-12-009 10 11 119.00 m @ 0.17% Ni 12 13 8 13 7 12 6 3 2 1 4 5 4 MQ-12-005 3 Model Conductor Plates SPOTTY HILL SURFACE PLAN MAP * PGM=Pt+Pd+Au Slide 34
  35. 35. Maniitsoq Ni‐Cu‐Co‐PGM Project Imiak Hill Drilling South West Greenland Imiak Hill Drilling PURPOSE: To drill conductors associated with mineralization perpendicular to strike. RESULTS: Significant multi‐element intersections in  holes MQ‐12‐001 and MQ‐12‐002. SURFACE PLAN MAP MQ-12-001 26.98 m @ 0.98% Ni, 0.44% Cu Incl. 16.64 m @ 1.36% Ni, 0.52% Cu and 5.12 m @ 2.20% Ni, 0.55% Cu MQ-12-002 66.08 m @ 0.55% Ni, 0.20% Cu Incl. 5.15 m @ 1.22% Ni, 0.49% Cu and 14.18 m @ 1.33% Ni, 0.38% Cu 2012 drill results, combined with bore‐ hole  EM (BHEM) surveys and historical drill  information, indicate mineralization strikes  N‐S, dips vertically to steeply east, plunges  south and is open at depth. Historical Intersections Slide 35
  36. 36. Imiak Hill Long Section Maniitsoq Ni‐Cu‐Co‐PGM Project (Looking West) South West Greenland MQ-12-001 26.98 m @ 0.98% Ni, 0.44% Cu Incl. 16.64 m @ 1.36% Ni, 0.52% Cu and 5.12 m @ 2.20% Ni, 0.55% Cu Trend (plunge) of mineralization OPEN Imiak Hill Long Section (Looking West)  Bore hole EM (BHEM) modeled  conductor plates show a clear  trend / plunge of about 45‐50  degrees south.  BHEM results also indicate the  mineralization is open below the  MQ-12-002 deepest hole on the trend  66.08 m @ 0.55% Ni, 0.20% Cu (historical hole Im‐9), which  Incl. 5.15 m @ 1.22% Ni, 0.49% Cu and 14.18 m @ 1.33% Ni, 0.38% Cu intersected 9.85 m @ 2.67% Ni  and 0.60% Cu 140 meters below  surface. Slide 36
  37. 37. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Fossilik II Drilling Vertical Cross Section (Looking Northeast) PURPOSE: To test VTEM conductor associated with the  Fossilik II gossan and mineralized historical drill  holes FoII‐1 and 2. Also to test VTEM conductor P‐59 located 250 m  NW of Fossilik II.  RESULTS: Anomalous mineralization intersected 40 m  beneath historical Fossilik II drill holes. BHEM  data indicates mineralization is not extensive. Conductor P‐59 was not intersected. BHEM  indicates top of VTEM conductor is deeper than  originally interpreted. Deeper drilling may be  warranted. Surface Plan Map Fossilik II Slide 37
  39. 39. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland World Nickel Consumption by First Use* Plating 7% Stainless Steel Consumption* Foundry 3% Other 7% Non‐Ferrous Alloys 12% Stainless & Alloy Steel 71% * Source: Brook Hunt – a Wood Mackenzie company Slide 39
  40. 40. Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Leading Nickel Refinery Production by Country* Global Nickel Resources** Kt 434 Plating 7% Other 265 7% SULPHIDE (27%) 256 215 156 LATERITE (73%) 148 111 Non‐Ferrous Alloys 12% 43 Laterite dominates but technologically challenging Global Nickel Production** Leading Nickel Consumers* Kt 661 415 SULPHIDE (56%) 167 LATERITE (44%) 133 77 60 54 40 21 Laterite production still lags sulphide production *Source: Brook Hunt – a Wood Mackenzie company, 2011 **Source: CRU Analysis Slide 40
  41. 41. Nickel Maniitsoq Ni‐Cu‐Co‐PGM Project Market Balance South West Greenland ‐ September, 2012 Slide 41
  42. 42. Nickel Maniitsoq Ni‐Cu‐Co‐PGM Project Market Forecast South West Greenland PROBABLE PROJECTS ONLY PROVIDE 40% OF REQUIREMENT STILL NEED 330 kt/a MORE! ‐ September, 2012 Slide 42
  44. 44. Maniitsoq Ni‐Cu‐Co‐PGM Project Greenland South West Greenland Greenland: General Facts:     Largest Island in the world (2,166,086 km2). Population 56,800. Autonomous country within the Kingdom of Denmark. Parliamentary democracy within a constitutional monarchy. Economy:    Very dependent on block grant from Denmark Hunting, fishing and tourism account for 93% of export earnings. Strong incentive to grow mining industry as all tax proceeds accrue to  the Government of Greenland and mining only accounts for 1% export  earnings.. Export earnings (2010) Export  earnings Public incomes (%) Fishing &  hunting Mining 1% Industry Source: Greenland government 2012 56% 6% Retail, tourism,  transport &  finance Maniitsoq 37% Nuuk Slide 44
  45. 45. Greenland: Mining Maniitsoq Ni‐Cu‐Co‐PGM Project South West Greenland Taxation Taxation: Distribution of Proceeds from a Hypothetical Mining Operation* Corporate + withholding tax = 37% Royalty = 0% Nominal Taxation of Mining Operations in 12 Selected Jurisdictions 37% Table Notes: Source: Mineral Strategy 2009, Greenland Bureau of Minerals and Petroleum *Hypothetical Mining Operation Gold mine with 12 year life (including 2 years development), 1 million  ounces total reserves, annual production of 100,000 ounces sold at USD 650  per ounce, total investment of USD 93 million and annual production costs  of USD 300 per ounce. Source: Mineral Strategy 2009, Greenland Bureau of Minerals and Petroleum. Slide 45