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THE ELEMENTS OF VALUE CREATION

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THE ELEMENTS OF VALUE CREATION

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    1. THE ELEMENTS OF VALUE CREATION December 2010

    2. Disclaimer

    3. 2 Foundation for a Successful Mining Company

    4. 3 Highly Experienced Management Team & Board

    5. Large Resource Large Option Value

    6. Location One of Worlds Best Mining Jurisdictions(1) Qubec a mining-friendly province Established mining district and proximity to local communities minimizes infrastructure costs Rail / road links facilitate access Grid power available at Quebec rate of C$0.05/kWh Well-defined permitting process

    7. 6 Mineralogy Drives Low Strip & Bulk Mining

    8. 7 Current Flowsheet Existing Technology Test work utilized samples representing full range of orebody variability to develop flowsheet utilizing conventional technology. Yields ~65% recovery across orebody Pilot plant will process material through early 2011, allow optimization of total return (capex, opex, recovery) rather than just recovery Test work to date at pilot plant has replicated lab scale results

    9. Potentially 4th Largest Nickel Sulphide Operation(1) Combining the elements to deliver value Management knowhow Strategic, large scale resource Exceptional location, low cost power Orebody provides low strip ratio, no acid generating rock or tails Conventional proven technology

    10. Scoping Study Expected Robust Economics

    11. 10 Competitive Capital and Operating Costs

    12. 11

    13. Market Needs Dumont Few Advanced Projects Post 2015 Large market deficit predicted in 2010 (>4% of overall market)(1) Nickel market predicted to be in surplus 2011-2013 by many analysts; however, potential risks to supply exist Potential for capex over-runs, schedule delays, commissioning challenges and higher than expected operating costs at large scale laterite projects Potential cost pressures on ferronickel production from laterite projects given potential for higher energy costs Extensive NiCr pig iron cost curve ($5-12/lb which shut downs/expands through the cycle) Demand forecasts for the next 5-7 years remain robust Chinese stainless steel production and demand expected to provide largest share of future consumption growth Beyond 2011-2013 period, Dumont is one of few advanced nickel projects in the pipeline resulting in a deficit market position post 2015 Few greenfield discoveries in prior cycle Global financial crisis slowed development of other projects

    14. Dumont Right Project, Right Time Dumont development increasingly attractive in context of sector-wide escalating operating costs RNC builds on Mt. Keith metallurgical work demonstrating recoveries at a bench scale of over 65% into a high grade (>25% Ni) nickel sulphide concentrate, and unlocks value of Dumont ~US$4.00 cash cost project is the middle of the cost curve and combined with proven technology in a mining friendly jurisdiction creates a very attractive project opportunity

    15. Timeline The following milestones provide material additional information which further de-risks and increases the value of the project: Completion of 1st run pilot plant testing Q1 2011 Completing of Pre-feasibility Study Q3 2011 Feasibility study Mid 2012

    16. 15 RNC The Investment Equation

    17. 16

    18. 17 Project - Capex and Opex Breakdown

    19. Estimated Project Cash Flows

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