RAGLAN MINE

During the year the mine's expansion increased annual mined ore by 17% to 1.3 million tonnes in 2008. Production of nickel-in-concentrate decreased slightly, primarily as a result of lower head grades in the first half of the year. Head grade improved in the second half of the year to 2.30% as mining transitioned into new ore zones

Reported that exploration has been ramped up with drill rigs now operating from four to seven months of the year and a temporary dedicated exploration accommodation camp has been completed. The scoping study for the Zone 5-8, is complete with pre-feasibility for Mine 7 planned for completion by the end of the first quarter of 2009. Construction of the mine’s permanent accommodation complex and the rehabilitation of the Deception Bay wharf are both complete. Final commissioning of the wharf will occur in the third quarter, following the final underwater inspection. A fish habitat compensation strategy developed in conjunction with Fisheries and Oceans Canada is to be completed in the first quarter of 2009 Also reported that the expansion of the Raglan mine in the Canadian Arctic continued and ore mined increased by 13% to 686,836 tonnes, exceeding the targeted annual production rate of 1.3 million tonnes. The transition into mining of new ore zones resulted in a temporary impact on head grades which decreased by 19% to 2.22% and led to a decrease of 16% in nickel-in-concentrate production to 12,339 tonnes. Head grade is expected to increase in the second half

Exploration results have confirmed Zone 5-8 as the largest mineralised zone in Raglan’s history, adding an estimated 4.5 million tonnes grading 2.80% nickel of inferred resources in 2007. Also reported that the mine increased total mine production by 13% to 1.13 million tonnes, achieving its 2007 target and is on track to achieve an expanded production rate of 1.3 million tonnes per annum by the end of 2008. Record mill throughput was 9% higher than 2006 and was achieved as a result of increased production from the mine, better ore grades, which increased from 2.56% in 2006 to 2.58%, and greater nickel recovery from the mill. Additionally, the total recordable injury frequency rate was reduced by 50%.