2012 Nova Scotia Mineral Incentive Program

1. 2012 Nova Scotia Mineral Incentive Program Diane Webber October 29, 2012 Program Structure and Some Early Results

2. The Goal “increase and promote mineral exploration leading to further development of mineral properties and new, producing mines in Nova Scotia ”

3. Previous Programs in NS • N.S. had MISP (1980’s) and PAP (1990’s) • MISP = fed ≤$50K; PAP = fed/prov $5K • PAP $5,000 grants were popular and successful: - Zeolite play (C2C - North Mountain ~ $300k) - Trout Lakes, C.B. (Regal Goldfields ~$150k) - Birth of Gammon Lake Resources ($2.2B) - Training of many of today’s prospectors

4. 2012 NSMIP Components • Total 2012 Budget $700,000 • Prospector Grants • Advanced Project Grants • Prospector Training • Prospector Marketing and • Assistance

5. Grant Application Evaluations • Review and Evaluation Committee • Application scoring included: • Potential that NSMIP input will advance the property • Geological potential of the property and commodities of interest • Quality and presentation of the proposal • Exploration model assessment • (innovative model, new spin, new zones) • Applicant’s technical and financial ability to complete

6. Prospector Grants - 2012 • Up to $15k/yr straight grant, registered prospectors • Grass roots level exploration on staked properties • In-the-ground exploration support (i.e. not salary) • - Assays, trenching, DDH, surveying, rentals, etc. • - GPS, safety devices and First Aid course • 39 Prospector Grant applications • 16 grants awarded totaling $164,805

7. Advanced Project Grants - 2012 • Exploration companies, beyond grass roots • Hold mineral rights or option agreement • Up to 50% NSMIP input to max. $100,000 • In-the-ground exploration support (i.e. not salary) • - DDH, assays, trenching, geophysics, geochem • - Metallurgy, NI43-101, community engagement • 28 Advanced Grant applications • 13 grants awarded totaling $440,000

8. NSMIP Grant Distribution, 2012

9. How We Compare Nationally Province Amount Min. Exp. Tax Credit Flow Through Prog. Nfld & Labrador $2,000,000 $1,000,000 New Brunswick  $1,000,000 Manitoba Nova Scotia $700,000 Yukon $570,000 Nunavit & NWT $50,000 ($≤8K)   Quebec & B.C.  Saskatchewan Ont., Alta., PEI

10. Prospector Marketing and Training • Prospector Marketing Assistance ($35,000) • Conferences and promotional • material • Up to $1,250/yr per prospector • Prospector Training ($50,000) • Considering concept of an online, • module-based, prospector training • course supplemented with field • training

11. Preliminary Results

13. Cu Lake Cu-Au (IOCG) – Minotaur Atlantic

14. Residual Gravity Map, Copper Lake area Perspective view of Cu Lake gravity target with DDH’s

15. Cu Lake Cu-Au (IOCG) – Minotaur Atlantic DDH CL12D01 – Minotaur Atlantic IOCG-style quartz-sericite alteration and brecciation IOCG-style hematite-pyrite-carbonate vein

16. Gypsum - Port Hawkesbury Area Acadia Drywall Supply Limited

17. Gypsum Deposit Evaluation Sites Acadia Drywall Supply Limited Ashfield Site Beaver Dam Lake Site Acadia Drywall Plant, Point Tupper

18. Zone 6B Au Prospect – C.B. Highlands Joe Richman

19. Positive Results from 2012 Trenching Zone 6B trench from earlier trenching Au-bearing vein from 2012 trenching (Au assays 21 g/t, 9 g/t, 7 g/t)

20. Thank You