NORRBOTTEN

It was concluded that the tenor of Rakkurijärvi mineralization and the potential tonnage of possible ore-grade mineralization has not improved enough to warrant additional drilling at this time. The 100% Lundin land position in the Norrbotten district has also begun to be reduced as several licenses have been satisfactorily tested without discovery success. A comprehensive review of the entire Norrbotten project is being carried out. A decision on the future of this programme will be made in the second quarter of 2006.

Recommencement of drilling on the Discovery zone at Rakkurijarvi.The Discovery Zone drill program is designed to continue defining the extent of copper/gold mineralization. Further results from Ailatis includes encouraging copper mineralization in several scout drill holes designed to test anomalous trends defined by IP chargeability. In the eastern part of the area a single drill hole, AIL04023, intercepted 26 m averaging 0.27% copper along a chargeability anomaly with an un-tested strike length of 1.5km. Drill hole AIL04005 intercepted 21.1 m averaging 0.18% copper and drill hole AIL04009 intercepted 37.10 m averaging 0.15% copper along a chargeability anomaly which is open to the west for 1 km. Drill hole AIL04022 intercepted 10.85 m averaging 0.29% copper and 11.5 m averaging 0.22% copper along a chargeability anomaly with 2 km of previously untested strike length.

Completed drilling on the Ailatis copper-gold target. Drilling on the Ailatis target commenced in early September, 2004, and was completed in late October, 2004. Twenty-three drill holes totalling 2,317 m were drilled to test a number of chargeablilty anomalies within an area of four square kilometres where basal till samples of bedrock indicate anomalous values in gold and copper. Underlying bedrock consists of highly altered mafic volcanics, gabbro and conglomerate.