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

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

3. Natural Resources 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. Natural Resources 2012 NSMIP Components Total 2012 Budget $700,000 Prospector Grants Advanced Project Grants Prospector Training Prospector Marketing and Assistance

5. Natural Resources 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. Natural Resources 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 Prospector Grants - 2012

7. Natural Resources 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 Advanced Project Grants - 2012

8. Natural Resources NSMIP Grant Distribution, 2012

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

10. Natural Resources 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 Prospector Marketing and Training

11. Natural Resources Preliminary Results

12. Natural Resources

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

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

15. Natural Resources 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. Natural Resources Gypsum - Port Hawkesbury Area Acadia Drywall Supply Limited

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

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

19. Natural Resources 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. Natural Resources Thank You