NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment Mount Pleasant Property Southwestern

330 Alison Blvd. Fredericton, New Brunswick Canada, E3C 0A9 Telephone: (506) 454-2359 Facsimile: (506) 454-2355

NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment

Mount Pleasant Property Southwestern New Brunswick, Canada

Effective Date: January 22nd, 2010

FINAL REPORT PROJECT NUMBER 6526-03 REVISION: 02

Prepared By:

J. Dean Thibault, P. Eng. Thibault & Associates Inc. Tim R. McKeen, P. Eng. Thibault & Associates Inc. Stephanie M. Scott, P. Eng. Thibault & Associates Inc. Trevor Boyd, P. Geo. Consultant for Adex Mining Inc. Andrew Hara, P. Eng. Hara Mining Enterprises Inc.

Prepared For:

Adex Mining Inc. Toronto, Ontario, Canada

NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment

TABLE OF CONTENTS

SECTION 1.0 SUMMARY ...... 1-1 1.1 Background ...... 1-1 1.2 Geology and Exploration...... 1-2 1.3 Resource Estimate...... 1-2 1.4 Mining...... 1-3 1.5 Processing...... 1-4 1.6 Environmental ...... 1-5 SECTION 2.0 INTRODUCTION ...... 2-1 2.1 Background ...... 2-1 2.2 Sources of Information ...... 2-2 2.3 Scope of Work...... 2-2 2.4 Disclaimer...... 2-2 SECTION 3.0 RELIANCE ON OTHER EXPERTS ...... 3-1 3.1 General...... 3-1 3.2 Geological Studies and Exploration ...... 3-1 3.3 Property Description, History and Ownership ...... 3-1 3.4 Mineralogy, Metallurgical Processing and Waste Treatment...... 3-1 3.5 Product Markets and Value of Products...... 3-1 3.6 Environmental Impact and Environmental Planning ...... 3-2 3.7 Other ...... 3-2 SECTION 4.0 PROPERTY DESCRIPTION AND LOCATION ...... 4-1 4.1 Mining Claims and Surface Rights...... 4-1 4.2 Royalties...... 4-3 4.3 Permits ...... 4-3 SECTION 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY...... 5-1 5.1 Accessibility...... 5-1 5.2 Climate and Physiography ...... 5-1 5.3 Local Resources and Infrastructure ...... 5-1 SECTION 6.0 HISTORY...... 6-1 SECTION 7.0 GEOLOGICAL SETTING...... 7-1 7.1 Regional Geology...... 7-1 7.2 Local Geology ...... 7-1 SECTION 8.0 DEPOSIT TYPES ...... 8-1 8.1 General...... 8-1 8.2 Porphyry Tin-(±Indium) Deposits ...... 8-1

i SECTION 9.0 MINERALIZATION...... 9-1 9.1 General...... 9-1 9.2 North Zone ...... 9-1 SECTION 10.0 EXPLORATION...... 10-1 10.1 General...... 10-1 10.2 Scoping Study of the Fire Tower Zone...... 10-2 SECTION 11.0 DRILLING...... 11-1 11.1 General...... 11-1 11.2 Drill Hole Surveying...... 11-1 SECTION 12.0 SAMPLING METHOD AND APPROACH ...... 12-1 SECTION 13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 13-1 13.1 General...... 13-1 13.2 WGM Analytical Methods...... 13-2 SECTION 14.0 DATA VERIFICATION ...... 14-1 14.1 General...... 14-1 14.2 Adex Assay Verification of the 2008 Diamond Drilling...... 14-1 14.3 Adex Verification of Historical Assay Results (Phase I)...... 14-1 14.4 Adex Verification of Historical Assay Results (Phase II)...... 14-2 14.5 WGM Data Corroboration ...... 14-4 SECTION 15.0 ADJACENT PROPERTIES...... 15-1 SECTION 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 16-1 SECTION 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE...... 17-1 17.1 General...... 17-1 17.2 Drill Hole Database Used...... 17-3 17.3 Basic Statistics of Drill Hole Assay Data...... 17-5 17.4 Inference of Indium Grades...... 17-5 17.5 Interpretation of the Mineralized Zones...... 17-6 17.6 Sample Compositing ...... 17-8 17.7 Variography ...... 17-15 17.8 Block Model and Estimation Parameters ...... 17-15 17.9 Mineral Resources Estimate Statement...... 17-17 17.10 Global Mineral Resources Statement ...... 17-23 17.11 Definition of High Grade Blocks Within the Deep Tin, Upper Deep Tin, North Adit and Lode Deposits ...... 17-24 17.12 Proposed Estimations of Blocks...... 17-25 17.13 Conclusions...... 17-29 SECTION 18.0 MINING OPERATIONS...... 18-1 18.1 Terms of Reference...... 18-1 18.2 Sources of Information ...... 18-1 18.3 Reliance on Other Experts ...... 18-2 18.4 Mining Tin-Indium-Zinc Ore from the Deep Tin Zone (“DTZ”) Ore Lodes and Lenses. 18-2

ii 18.5 Waste Rock Handling and Storage...... 18-6 18.6 Exclusions ...... 18-6 SECTION 19.0 PROCESSING OPTIONS AND RECOVERABILITY ...... 19-1 19.1 Overview of Process Technology...... 19-1 19.2 Process Description ...... 19-2 19.3 Design Criteria...... 19-10 SECTION 20.0 SITE INFRASTRUCTURE ...... 20-1 20.1 Overview ...... 20-1 20.2 Equipment Layout ...... 20-1 20.3 Water Supply...... 20-2 20.4 Tailings Disposal ...... 20-2 20.5 Power Supply and Distribution...... 20-2 20.6 Process Control System...... 20-2 20.7 Workshops and Warehouses ...... 20-2 20.8 Office Facilities ...... 20-2 20.9 Communications...... 20-3 SECTION 21.0 ENVIRONMENTAL CONSIDERATIONS ...... 21-1 21.1 Background ...... 21-1 21.2 Related Environmental Studies...... 21-2 21.3 Environmental Impact and Management ...... 21-3 21.4 Permits ...... 21-4 21.5 Reclamation Plan ...... 21-8 SECTION 22.0 MARKETS...... 22-1 22.1 Tin Concentrate...... 22-1 22.2 Tin Chloride...... 22-5 22.3 Indium Bearing Zinc Concentrate...... 22-7 22.4 High Grade Zinc Metal ...... 22-12 22.5 Indium Sponge ...... 22-13 SECTION 23.0 CONTRACTS ...... 23-1 SECTION 24.0 TAXES...... 24-1 24.1 Federal and Provincial Income Tax...... 24-1 24.2 Mining Tax...... 24-1 SECTION 25.0 CAPITAL COST ESTIMATES ...... 25-1 25.1 Capital Cost Estimate Basis...... 25-1 25.2 Capital Cost Estimate Summary ...... 25-1 25.3 Direct Cost...... 25-4 25.4 Indirect Cost ...... 25-8 25.5 Contingency ...... 25-8 25.6 Sustaining, Deferred and Working Capital Costs...... 25-8 25.7 Capital Cost Qualifications and Exclusions...... 25-9 SECTION 26.0 OPERATING COST ESTIMATES ...... 26-1 26.1 Operating Cost Estimate Basis ...... 26-1

iii 26.2 Operating Cost Estimate Summary...... 26-1 26.3 Mine Operating Cost ...... 26-2 26.4 Processing Operating Cost ...... 26-2 26.5 Site Administration Cost...... 26-8 26.6 Operating Cost Qualifications and Exclusions ...... 26-10 SECTION 27.0 ECONOMIC ANALYSIS...... 27-1 27.1 Cash Flow Parameters...... 27-1 27.2 Product Revenue...... 27-2 27.3 Base Case Economic Results...... 27-5 27.4 Sensitivity Analysis...... 27-7 SECTION 28.0 PROJECT EXECUTION...... 28-1 28.1 General...... 28-1 28.2 Existing Site Development ...... 28-1 28.3 Process Technology Development Plan ...... 28-2 28.4 Project Schedule ...... 28-2 SECTION 29.0 INTERPRETATION AND CONCLUSIONS ...... 29-1 29.1 General...... 29-1 29.2 Geology ...... 29-1 29.3 Mining...... 29-1 29.4 Processing...... 29-1 29.5 Environmental ...... 29-2 29.6 Economic Analysis ...... 29-2 SECTION 30.0 RECOMMENDATIONS...... 30-1 30.1 Process Development ...... 30-1 30.2 Geology ...... 30-1 30.3 Mining...... 30-1 SECTION 31.0 REFERENCES ...... 31-1 SECTION 32.0 DATE AND SIGNATURE PAGE AND CERTIFICATES OF QUALIFIED PERSONS ...... 32-1 32.1 Date and Signature Page...... 32-1 32.2 Certificates of Qualified Persons...... 32-2

LIST OF TABLES

Table 1-1: North Zone A and B Type Blocks Estimate ...... 1-3 Table 1-2: Economic Model Discounted Cash Flow Summary Results ...... 1-6 Table 2-1: Qualified Persons and Areas of Responsibility for the Preliminary Assessment ...... 2-2 Table 17-1: Mount Pleasant North Zone 2009 NI 43-101 Compliant Resource Estimates .... 17-1 Table 17-2: Basic Statistics of Drill Hole Assays ...... 17-5 Table 17-3: Basic Statistics of the 3m Composites in the DTZ Zone ...... 17-9 Table 17-4: Basic Statistics of the 3m Composites in the DTZ-UP Zone ...... 17-10 Table 17-5: Basic Statistics of the 3m Composites in the #4 Tin Lode Zone ...... 17-11

iv Table 17-6: Basic Statistics of the 3m Composites in the #1-3 Tin Lode Zone ...... 17-12 Table 17-7: Basic Statistics of the 3m Composites in the #5 Tin Lode Zone ...... 17-13 Table 17-8: Basic Statistics of the 3m Composites in the N-Adit Zone ...... 17-14 Table 17-9: Block Model Geometry ...... 17-16 Table 17-10: Proportion of Samples Assayed for Indium per Zone...... 17-17 Table 17-11: Indicated Mineral Resources of the Deep Tin Zone ...... 17-18 Table 17-12: Sensitivity of the Indicated Deep Tin Zone Resource to Variable Sn Equivalent Cut-Off Grade ...... 17-18 Table 17-13: Indicated Mineral Resources of the Upper Deep Tin Zone ...... 17-19 Table 17-14: Sensitivity of the Indicated Upper Deep Tin Zone Resources to Tin Equivalent Cut-Off Grade ...... 17-19 Table 17-15: Inferred Mineral Resources of the #5 Tin Lode ...... 17-20 Table 17-16: Sensitivity of the Inferred #5 Tin Lode Resources to Tin Equivalent Cut-Off Grade ...... 17-20 Table 17-17: Inferred Mineral Resources of the North Adit Zone...... 17-21 Table 17-18: Sensitivity of the Inferred North Adit Zone Resources to Tin Equivalent Cut- Off Grade ...... 17-21 Table 17-19: Indicated Mineral Resources of the #4 Tin Lode...... 17-22 Table 17-20: Sensitivity of the Indicated #4 Tin Lode Resources to Tin Equivalent Grade ... 17-22 Table 17-21: Inferred Mineral Resources of the #1 to #3 Tin Lodes ...... 17-22 Table 17-22: Sensitivity of the Inferred #1 to #3 Tin Lode Resources to Tin Equivalent Cut- Off Grade ...... 17-23 Table 17-23: Global Classified Mineral Resources per Zone ...... 17-24 Table 17-24: A and B Type Blocks Estimate ...... 17-26 Table 17-25: Summary of Clarke and Associates 1964 Resource estimate for Mineralized Blocks in the Vicinity of the 600 Adit Workings...... 17-29 Table 18-1: Mine Physical Data for 850 tonne/day Operation...... 18-3 Table 18-2: Manpower Requirements for 850 tonne/day Ore Production from DTZ and Upper DTZ ...... 18-5 Table 18-3: Summary of Mobile Equipment Purchase Cost Estimates for 850 tonne/day Ore Production...... 18-6 Table 18-4: Summary of Mobile Equipment Rental Cost Estimates for 850 tonne/day Ore Production...... 18-6 Table 18-5: Pre-production Capital Excavations Works for 850 tonne/day Ore Production... 18-7 Table 18-6: Pre-production Capital Costs Summary for 850 tonne/day Ore Production...... 18-7 Table 18-7: Operating Cost Summary for 850 tonne/day Ore Production...... 18-8 Table 18-8: Summary of Manpower Cost Estimates for 850 tonne/day Ore Production Rate ...... 18-1 Table 18-9: Summary of Equipment Maintenance Costs ...... 18-2 Table 18-10: Summary of Diesel Fuel Cost ...... 18-2 Table 18-11: Summary of Electricity Cost for 850 tonne/day Ore Production Rate ...... 18-3 Table 18-12: Mine Consumables and Miscellaneous Operating Costs...... 18-3 Table 18-13: Summary of Ventilation Air Volumes for 850 tonne/day Ore Production Rate.... 18-4 Table 18-14: Proposed Production Schedule for Extraction of Ore from DTZ and Upper DTZ ...... 18-6 Table 19-1: Summary of Reagent Systems Required for each Main Process Area...... 19-9 Table 19-2: Ore Characteristics and Mill Throughput Design Criteria ...... 19-10 Table 19-3: Ore Storage and Crushing Circuit Design Criteria...... 19-11 Table 19-4: Grinding and Desliming Circuit Design Criteria ...... 19-12

v Table 19-5: Magnetic Separation Circuit Design Criteria...... 19-13 Table 19-6: Zinc Flotation Circuit Design Criteria ...... 19-13 Table 19-7: Arsenic Flotation Circuit Design Criteria...... 19-14 Table 19-8: Tin Flotation and Gravity Separation Circuit Design Criteria...... 19-15 Table 19-9: Tin Chloride Production Circuit Design Criteria ...... 19-17 Table 19-10: Indium and Zinc Hydromet Circuit Design Criteria ...... 19-18 Table 19-11: Zinc Electrowinning Circuit Design Criteria ...... 19-22 Table 19-12: Indium Sponge Cementation Circuit Design Criteria...... 19-23 Table 19-13: Reagent Systems Design Criteria...... 19-24 Table 19-14: Process Utility Systems Design Criteria ...... 19-25 Table 19-15: Tailings and Wastewater Treatment Systems Design Criteria ...... 19-25 Table 21-1: MMER Authorized Limits of Deleterious Substances...... 21-8 Table 22-1: Tin Concentrate Product Grade Estimate Used for Preliminary Assessment ..... 22-1 Table 22-2: Typical Product Specifications for Tin Chloride Anhydrous...... 22-6 Table 22-3: Zinc Concentrate Product Grade Estimate Used for Preliminary Assessment ... 22-7 Table 22-4: LME Specifications for Special High Grade Zinc Metal...... 22-13 Table 24-1: Federal and Provincial Income Tax Rates...... 24-1 Table 25-1: Capital Cost Breakdown Summary for Different North Zone Processing Options...... 25-2 Table 25-2: Distribution of Process Equipment Cost by Process Area For North Zone Processing Options...... 25-5 Table 26-1: Operating Cost Breakdown Summary for Different North Zone Processing Options...... 26-1 Table 26-2: Breakdown of Processing Operating Cost...... 26-2 Table 26-3: Number of Employees Required for Processing Plant Operation ...... 26-6 Table 26-4: Breakdown of Site Administration Operating Cost ...... 26-9 Table 26-5: Number of Employees Required for Site Administration ...... 26-9 Table 27-1: Cash Flow Financial Model Parameter Summary ...... 27-1 Table 27-2: Product Revenue Summary For All Production Options ...... 27-2 Table 27-3: Tin Smelter Schedule Terms For Tin Concentrate Revenue Calculations...... 27-3 Table 27-4: Zinc Smelter Schedule Terms For Zinc Concentrate Revenue Calculations ...... 27-4 Table 27-5: Indium Refining Terms For Indium Sponge Revenue Calculations...... 27-4 Table 27-6: Summary of Base Case Cash Flow Economic Model Results...... 27-5

LIST OF FIGURES

Figure 4-1: Mount Pleasant Property Location Map ...... 4-1 Figure 4-2: Mount Pleasant Property Claim Map...... 4-2 Figure 7-1: Regional Geology in Area of Mount Pleasant, New Brunswick...... 7-1 Figure 7-2: Local Geology of Mount Pleasant Property ...... 7-2 Figure 7-3: Mount Pleasant Mine Site Geology and Drill Holes...... 7-4 Figure 9-1: Representative Cross-section of Mount Pleasant Mineralized Zones...... 9-2 Figure 9-2: Geological Interpretation of the North Zone Deposits ...... 9-3 Figure 17-1: Global Plan View Showing Drill Hole Traces...... 17-4 Figure 17-2: Global Vertical Cross-Section Looking North Showing Drill Hole Traces...... 17-4 Figure 17-3: Scatter-gram of Zinc Versus Indium Grade Assays ...... 17-6 Figure 17-4: Schematic Plan View of the Geological Interpretation Showing Location of...... 17-7

vi Figure 17-5: Vertical Cross-section Looking North of the Geological Interpretation Showing Location of Zones ...... 17-7 Figure 17-6: Schematic Vertical Cross-section Looking West of the Geological Interpretation Showing Location of Zones (Figure Credit: SGS – Geostat) ...... 17-8 Figure 17-7: Histogram of Drill Hole Sample Lengths...... 17-9 Figure 17-8: Indium metal contribution graph in DTZ zone - Grade Capping...... 17-10 Figure 17-9: Indium metal contribution graph in DTZ-UP zone - Grade Capping...... 17-11 Figure 17-10: Indium Metal Contribution Graph in #4 Tin Lode Zone - Grade Capping...... 17-12 Figure 17-11: Indium Metal Contribution Graph in #1-3 Tin Lode Zone - Grade Capping...... 17-13 Figure 17-12: Indium Metal Contribution Graph in #5 Tin Lode Zone - Grade Capping...... 17-14 Figure 17-13: Indium Metal Contribution Graph in N-Adit Zone - Grade Capping...... 17-15 Figure 17-14: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to #3, #4 (and #6) Tin Lodes in Relation to the 600 Adit Workings (Longitudinal View Looking Southwest) ...... 17-27 Figure 17-15: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to #3, #4 (and #6) Tin Lodes in Relation to the 600 Adit Workings (Oblique View Looking Northwest)...... 17-27 Figure 17-16: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep Tin Zone, Upper Deep Tin Zone, #5 Tin Lode and North Adit Sub-Zones in Relation to the 600 Adit Workings and the North Zone Decline (Longitudinal View Looking West) ...... 17-28 Figure 17-17: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep Tin Zone, Upper Deep Tin Zone, #5 Tin Lode and North Adit Sub-Zones in Relation to the 600 Adit Workings and the North Zone Decline (Longitudinal View Looking North)...... 17-28 Figure 18-1: DTZ Preproduction Schedule for 850 tonne/day of Ore Production Rate ...... 18-5 Figure 22-1: World Refined Tin Consumption by Application ...... 22-2 Figure 22-2: World Mine Production of Tin by Country...... 22-3 Figure 22-3: Dynamic Three-Year Price Chart for Tin ...... 22-5 Figure 22-4: Global Zinc Consumption by End-Use ...... 22-8 Figure 22-5: World Mine Production of Zinc by Country ...... 22-9 Figure 22-6: Dynamic Three Year Price Chart for Zinc Metal...... 22-11 Figure 22-7: Dynamic Three Year Price Chart for 99.99% Indium Ingot ...... 22-12 Figure 22-8: Global Indium Consumption by End Use...... 22-14 Figure 22-9: Global Refined Indium Production by Country ...... 22-15 Figure 25-1: Case A Capital Cost Breakdown for Tin Concentrate and Zinc/Indium Concentrate Production ...... 25-3 Figure 25-2: Case B Capital Cost Breakdown for Tin Concentrate, Zinc Metal and Indium Sponge Production ...... 25-3 Figure 25-3: Case C Capital Cost Breakdown for Tin Chloride, Zinc Metal and Indium Sponge Production ...... 25-4 Figure 25-4: Case A Equipment Cost Breakdown for Tin Concentrate and Zinc/Indium Concentrate Production ...... 25-6 Figure 25-5: Case B Equipment Cost Breakdown for Tin Concentrate, Zinc Metal and Indium Sponge Production ...... 25-6 Figure 25-6: Case C Equipment Cost Breakdown for Tin Chloride, Zinc Metal and Indium Sponge Production ...... 25-7 Figure 26-1: Case A Processing Operating Cost for Tin Concentrate and Zinc/Indium Concentrate Production ...... 26-3

vii Figure 26-2: Case B Processing Operating Cost for Tin Concentrate, Zinc Metal and Indium Sponge Production ...... 26-3 Figure 26-3: Case C Processing Operating Cost for Tin Chloride, Zinc Metal and Indium Sponge Production ...... 26-4 Figure 27-1: Cumulative Project Pre-Tax Cash Flow For Different Production Options...... 27-6 Figure 27-2: Cumulative Post-Tax Cash Flow For Different Production Options ...... 27-6 Figure 27-3: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'A' Relative to Changes in the Commodity Values, Capital and Operating Costs...... 27-7 Figure 27-4: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'B' Relative to Changes in the Commodity Values, Capital and Operating Costs...... 27-8 Figure 27-5: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'C' Relative to Changes in the Commodity Values, Capital and Operating Costs...... 27-9 Figure 27-6: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'A' Relative to Changes in the Commodity Values, Capital and Operating Costs...... 27-10 Figure 27-7: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'B' Relative to Changes in the Commodity Values, Capital and Operating Costs...... 27-10 Figure 27-8: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'B' Relative to Changes in the Commodity Values, Capital and Operating Costs...... 27-11

LIST OF APPENDICES

APPENDIX A: Process Block Diagrams and Mass Balance APPENDIX B: Process Flowsheets APPENDIX C: Process Equipment Layout APPENDIX D: Environmental and Permitting APPENDIX E: Capital Cost Summaries APPENDIX F: Operating Cost Summaries APPENDIX G: Economic Analysis

viii ABBREVIATIONS AND ACRONYMS a - annum A - ampere acfm - actual cubic feet per minute acre-ft/yr - acre-feet per year ASTM - American Society for Testing and Materials BACT - best available control technology oC - degrees Celsius CAPEX - capital cost estimate CDN$ - Canadian dollars CEAA - Canadian Environmental Assessment Act CEPA - Canadian Environmental Protection Act cfm - cubic feet per minute cm - centimetre CO - carbon monoxide CO2 - carbon dioxide CSB - centralized steam boiler d - day DAF - dissolved air flotation DCF - discounted cash flow DFO - Department of Fisheries and Oceans Canada dia. - diameter DMT - dry metric tonne dwt - dead-weight ton EIA - environmental impact assessment EPA - U.S. Environmental Protection Agency oF - degrees Fahrenheit FEED - front end engineering development FOB - freight-on-board fpm - feet per minute ft - feet ft3 - cubic feet g - gram G - Giga (billion) gal - gallon g/L - grams per litre g/mol - grams per mole (M) gpm - Imperial gallons per minute GHG - greenhouse gas g/t - grams per tonne ha - hectare HFO - heavy fuel oil HHV - higher heating value hp - horsepower hr - hour H2S - hydrogen sulphide in - inch in2 - square inch IRR - internal rate of return ISBL - inside battery limits J - joule K - degrees Kelvin kg - kilogram kJ - kilojoules km - kilometres

ix km2 - square kilometres kPa - kilopascal kVA - kilovolt-amperes kW - kilowatt kWh - kilowatt-hours L - litre LCA - life cycle assessment LHV - lower heating value LME - London Metal Exchange LOM - life-of-mine LOP - life-of-project L/s - litre per second L/tonne - litres per tonne M - molarity (gmol/L) MM - Mega (million) m - meters m3 - cubic meters m3/h - cubic meters per hour MASL - meters above sea level mg/l - milligram per litre mg/m3 - milligram per cubic metre min - minute mL - millilitre mm - millimetre MMER - Metal Mining Effluent Regulation mmho/cm - millimhos per centimetre (conductivity) mol% - mole percent MPa - Megapascals MW - megawatt MWt - molecular weight μ - micron µg - microgram µg/m3 - micrograms per cubic metre µg/L - micrograms per litre µS/cm - micro Siemens per centimetre NBDNR - New Brunswick Department of Natural Resources NBDOE - New Brunswick Department of Environment NBDOT - New Brunswick Department of Transportation NI - National Instrument Nm3/hr - normal cubic meter per hour NOx - nitrogen oxides NPV - net present value NRBPA - net revenue before processing allowance NTU - nephelometric turbidity units NZ - north zone OPEX - operating cost estimate OSBL - outside battery limits oz - Troy ounce PM - particulate matter PM10 - particulate matter less than 10 micron ppb - parts per billion ppm - parts per million ppmv - parts per million on volumetric basis psig - pounds per square inch gauge RD&D - research, development and demonstration R&D - research and development

x RO - reverse osmosis ROM - run-of-mine s - second scfm - standard cubic feet per minute SEM - scanning electron microscope S.G. - specific gravity SO2 - sulfur dioxide st - short ton TCLP - toxicity characteristic leaching procedure TDS - total dissolved solids TIA - tailings impoundment area TOC - total organic carbon ton - short ton (2000 lb) tonne (t) - metric tonne (1000 kg) tpd - tonne per day TSS - total suspended solids UCS - unconfined compressive strength UF - ultrafiltration US$ - United States dollars USgpm - United States gallons per minute V - volt vol% - volume percent v/v - volume basis W - watt wt% - weight percent w/w - weight basis yr - year XRD - X-ray diffraction

SELECTED UNIT CONVERSIONS 1 g/mL = 62.34 lb/ft3

1 ha = 10,000 m2 = 107,639 ft2

1 kg = 2.205 lb

1 kJ = 0.948 Btu

1 kPa = 0.145 psi = 0.001 MPa

1 m3 = 35.3 ft3 = 264.2 USgal = 1.308 yd3

1 m3/d = 11.008 USgpm = 0.0116 L/s

1 mm = 0.0394 in

1 MW = 3.412 MMBtu/hr

1 tonne = 1000 kg = 2205 lb

1 ppm = 1 mg/kg = 1 g/t

1 Nm3/hr (@ 273K) = 0.622 scfm (@ 60oF)

1 Nm3/m3 (@ 273K) = 5.933 scf/bbl (@ 60oF)

1 oz = 31.1035 g

T(oC) = [T(oF)-32]/1.8

T(K) = T(oC) + 273

xii NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 1-1

SECTION 1.0 SUMMARY

1.1 Background

Adex Mining Inc. ("Adex") is a Canadian junior mining company with a 100% interest in the Mount Pleasant Mine Property ("Mount Pleasant" or the "Property"), which it acquired in 1995. The Property is located in Charlotte County in southwestern New Brunswick, Canada and is the site of a past-producing tungsten mine with existing surface infrastructure including several buildings and a tailings impoundment area.

The property hosts two distinct mineralized zones, the Fire Tower Zone and the North Zone. The Fire Tower Zone is dominated by tungsten-molybdenum mineralization while the North Zone mineralization of interest includes tin, zinc and indium. The preliminary assessment as defined herein is based solely on the development of the North Zone.

The entire land package consists of 102 contiguous mining claims covering approximately 1600 hectares held under prospecting license 14338. Adex holds surface rights covering approximately 405 hectares within the mining claims that includes the area of the mine site, mill site and tailings pond, as well as northern sections of the Fire Tower Zone and North Zone. Third parties including the province of New Brunswick and private individuals own the remaining surface rights in the claim area.

The Mount Pleasant Tungsten Mine was developed in the Fire Tower Zone and a concentrator and life of mine tailings impoundment area were constructed in a 50/50 joint venture between Billiton Exploration Canada Limited and Brunswick Tin Mines. Processing commenced in 1983 and ceased in 1985 due to cost overruns, metallurgical difficulties and falling tungsten prices. During the production period, the mine produced 990,200 tonnes of tungsten ore from the Fire Tower Zone. The Property was subsequently placed on care and maintenance and the mine workings allowed to flood in 1988.

Buildings on the site previously used for mineral processing, administration and warehousing are in excellent condition and have been well maintained since production ceased in 1985. Major processing, mining and mobile equipment has been sold and removed from the site. The tailings impoundment area is a major infrastructure asset of the Property. Electrical power from the NB Power grid is supplied via a 138 kV transmission line to the mine site substation with existing transformers. The substation is regularly maintained by contract electrical personnel. Adex has retained 100% ownership of the buildings and equipment remaining on the Property. The Property is currently being operated under care and maintenance.

A National Instrument 43-101 (NI 43-101) compliant technical report was prepared by Watts, Griffis and McOuat (WGM) Limited and SGS Geostat in May, 2009 containing a resource estimate for the North Zone. Since the filing of this report, Adex has undertaken an internal review to identify higher grade blocks within the estimate as a low-tonnage, high-grade production scenario. Based on the high grade blocks identified within the North Zone resource estimate, Adex Mining Inc. contracted Thibault & Associates Inc. (Fredericton, New Brunswick) to prepare and coordinate a preliminary assessment of production options from the Property's North Zone in compliance with NI 43-101 standards.

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 1-2

1.2 Geology and Exploration

The Property is located within the Appalachian Orogen of Atlantic Canada just north of the Saint George Batholith. The eastern portion of the Property is dominated by the Mount Pleasant Caldera ("MPC") and to the west by Silurian to Devonian age metasedimentary rocks. This caldera is comprised of a multi-layered granitic complex (Granite I, II, III) and porphyries and breccias of Mississippian age. Porphyry-type tungsten-molybdenum and tin-indium deposits have been discovered along the southwestern margin of the MPC.

Tungsten-molybdenum-(bismuth) deposits have been found beneath Mount Pleasant in both the Fire Tower Zone and North Zone. All are hosted within Granite I. Younger indium-bearing tin- base metal deposits superimpose the tungsten-molybdenum deposits hosted within Granite II in both zones. No significant mineralization has been found within the underlying latest Granite III although this granite has not been fully explored. All deposits occur within 450 m from surface.

The North Zone consists of eight distinct tin-indium-bearing deposits or sub-zones, including three Tin Lodes, consisting of the Deep Tin Zone, Upper Deep Tin Zone, Endogranitic Zone, North Adit Zone, North W-Mo Zone and the #1-3, #4 and #5 Tin Lodes. Mineralization occurs mostly in hydrothermally brecciated and fractured granitic rocks located adjacent to granite and porphyry dykes. Tungsten-molybdenum mineralization is also hosted in the North W-Mo Zone, which can partially overlap portions of the North Adit Zone which consists of a series of isolated tin-indium deposits.

Since 1954, the majority of the exploration work has focused on the development of the tungsten- molybdenum deposits of the Fire Tower Zone and the indium-bearing tin-base metal deposits of the North Zone. Work has consisted of underground development, surface and underground drilling programs, bulk sampling and metallurgical work to develop a "mineral resource" for the Fire Tower Zone and North Zone deposits. Historically, 1,330 diamond drill holes totalling 158,561 m have been completed, most to delineate the Fire Tower Zone and North Zone.

WGM prepared two NI 43-101 Technical Reports on the Mount Pleasant Property, which included a NI 43-101 and CIM Standards-compliant Mineral Resource estimates of the Fire Tower Zone, filed on SEDAR in June, 2006 and December, 2008.

Throughout 2008, ADEX completed a two-phase 47 hole definition diamond drilling program totalling 13,300 m to test both the Fire Tower Zone and North Zone mineralization. Thirty-six holes for a total of 8,859 m were drilled on the North Zone. The drill program was also carried out to collect fresh drill core for metallurgical bench and mineralogical testing. Based upon this program, WGM and SGS Geostat completed a report which consisted of an independent NI 43- 101 technical review and mineral resource estimation for the eight sub-zones that make up the tin-indium-zinc North Zone and filed on SEDAR in May, 2009.

1.3 Resource Estimate

For this preliminary economic assessment, 97 high grade tin-indium-zinc blocks of mineralization were defined within those NI 43-101 reviewed sub-zones of the North Zone that are located from the surface to a depth of 250 metres (at the 990 level). The blocks were separated into 58 "A- Type" tin-indium-zinc-copper and 39 "B-Type" indium-tin-zinc mineralized blocks. The high grade pods and shoots that make up the blocks were identified and compiled on sections and

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 1-3 subsequently modelled into GEMCOM solid models. The estimated in-situ undiluted tonnages and metal compositions of the A- and B-Type Blocks are listed in Table 1-1.

Table 1-1: North Zone A and B Type Blocks Estimate

NO. TONNAGE SUB-ZONE %Sn g/t In %Zn %Cu %Pb %As %Bi %WO %Mo BLOCKS [2,3] 3 INDICATED RESOURCE A-TYPE BLOCKS

#4 Tin Lode 2 129,000 0.58 153[1] 1.85 0.19 NA NA NA NA NA DTZ and Upper DTZ 33 1,338,000 0.94 229 1.89 0.27 0.05 1.62 0.09 0.10 BD B-TYPE BLOCKS

#4 Tin Lode 3 36,000 0.20 138[1] 1.87 0.14 NA NA NA NA NA DTZ and Upper DTZ 16 391,000 0.25 179 2.12 0.16 0.03 1.31 0.07 0.16 BD Total Indicated 54 1,894,000 0.76 212 1.93 0.24 NA NA NA NA BD INFERRED RESOURCE A-TYPE BLOCKS

#1-3 Tin Lodes 12 168,000 0.79 140[1] 2.45 0.30 NA NA NA NA NA

#5 Tin Lode 2 36,000 1.55 134 2.39 0.25 0.12 4.50 0.04 0.13 BD

North Adit 9 320,000 1.13 32 0.25 0.19 0.04 2.88 0.12 0.14 BD B-TYPE BLOCKS

#1-3 Tin Lodes 4 139,000 0.30 131[1] 2.21 0.16 NA NA NA NA NA #5 Tin Lode 8 172,000 0.29 428 3.80 0.24 0.04 1.59 0.04 0.17 BD North Adit 8 165,000 0.62 145 1.68 0.25 0.08 1.64 0.10 0.09 BD Total Inferred 43 1,000,000 0.74 154 1.82 0.22 NA NA NA NA NA

Table Notes: [1] Estimate [2] Tonnages are rounded. [3] Mineral resources that are not mineral reserves do not have demonstrated economic viability. BD = below detection limit NA = not analysed

The results compare favourably to the 0.7 Sn equivalent cut-off tonnages and grades derived from the sensitivity analysis reported in the independent NI 43-101 mineral resources estimation of the Sn-In-Zn North Zone deposits completed by WGM and SGS-Geostat in May, 2009. It is recommended that additional diamond drilling, surface sampling and additional indium analyses of historical core be completed to ensure that #1-3 Tin Lode, North Adit and #5 Tin Lode can be upgraded from a NI 43-101 inferred resource level to an indicated resource level.

1.4 Mining

The DTZ ore lodes and lenses are mostly formed as vertical and sub-vertical elongated narrow bodies closely spaced and surrounded by lower grade material and waste rock. The lower grade material and waste rock gaps between ore lenses will be used as natural pillars for maintaining stope wall stability during mining.

A number of the ore lodes and lenses lie close to the surface with a few protruding to the surface. Series of these lodes and lenses stretch from near surface down to a depth of approximately 250

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 1-4 meters. In horizontal plane the lodes and lenses occupy an area measuring approximately 300 meters east-west and 400 meters north-south and dip predominantly towards the south.

It appears that a majority of the lodes and lenses can be mined as single independent stopes being vertically interconnected by sublevel cross-cuts. The stopes would predominantly be mined from the top down while maintaining temporary ore rib and sill pillars in close proximity to the sublevels. Most of these stopes would be left open after completion of mining. Some of these mined out stopes would be backfilled with waste rock generated from the ongoing mine development works.

Based on a review of historical mining records from the 600 Adit and Fire Tower Zone, the rock condition environment is expected to be good.

Stopes would be shaped irregularly based on the ore grade contacts. A relatively small number of rib and sill pillars would be left in situ for stability of the mined-out lodes and lenses. These pillars, in most cases, would consist of lower grade material.

A dilution factor of 10% at 0.17% tin, 96 ppm indium and 0.95% zinc was estimated for the perimeters of the minable lodes and lenses due to a relatively rich mineralized halo around the lodes and lenses selected for mining. An overall mining extraction rate for the selected mining method and configuration of the lodes and lenses can be expected to exceed 85%.

Based on preliminary assessment of the proposed mine plan, the mineable resources were assumed to be 2,706,432 tonnes at 0.71% tin, 1.82% zinc and 183 gram per tonne of indium at a 10% dilution factor with 85% mining extraction.

The study assumed the mining schedule to be based on 261 operating days a year with the mining crew working three 8 hour shifts per day 5 days per week.

Total pre-production capital costs for constructing the 850 tpd Adex tin-indium-zinc mine is estimated at CDN$16,231,166 including 15% contingency. The capital cost estimates are at -10% and +35% accuracy levels. The majority of the capital costs are associated with the pre- production excavation works.

The operating cost for mining the tin-indium-zinc ore from the DTZ and Upper DTZ is estimated at CDN$30.02 per tonne for the 850 tpd production rate. The above cost is estimated from the first principle rule and does not include contingency.

1.5 Processing

The study identifies conceptual metallurgical processes for the production of i) tin and zinc-indium concentrate, ii) indium sponge and zinc metal and iii) tin chloride. The preliminary technical and economic assessment was not based on metallurgical testing of a representative sample of run- of-mine ore relative to the proposed mine plan. The conceptual design of the metallurgical process was based on technical knowledge gained from a review of historical metallurgical test programs completed on ore from the North Zone and published technical papers. The unit operations for concentration are typical of other tin and base metal metallurgical operations and metallurgical test programs on a representative ore sample will be required to confirm the proposed process design.

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Three production options were compared in the preliminary assessment:

Case A: Concentrator plant for production of tin concentrate and indium-bearing zinc concentrate.

Case B: The concentrator plant of Case A plus a hydrometallurgical plant for production of tin concentrate, indium sponge and zinc metal.

Case C: The concentrator/hydromet plant of Case B plus an add-on pyrometallurgical plant for production of tin chloride, indium sponge and zinc metal.

1.6 Environmental

The study identifies the process technology and a conceptual management plan for tailings treatment, wastewater treatment (including wastewater generated by hydrometallurgical or pyrometallurgical operations) and tailings disposal. The overall plan for tailings management and the proposed technology for wastewater treatment is based on compliance with Federal and Provincial environmental guidelines. Bench scale and pilot testing of the tailings and wastewater treatment process as defined herein is recommended as an integral part of the metallurgical test programs to confirm compliance with environmental guidelines.

1.7 Economic Assessment

The preliminary assessment and economic analysis contained herein are preliminary in nature and contain inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the results of the preliminary assessment will be realized with more detailed work. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The preliminary assessment of the project economics was based on a processing rate of 850 tonne/day run-of-mine ore and a 10 year project life. The pre-production capital cost for the processing plant includes a blend of new and used processing equipment, and the accuracy is considered to be within -10% to +35%. Revenue was based on 3-year trailing average metals pricing up to August, 2009 and standard smelter terms for treatment charges. The economic assessment for Case A assumes a pay factor of 15% of the contained indium value in the zinc concentrate and further work is required to better define an indium pay factor based on smelter contract negotiations.

A summary of the discounted cash flow assessment of the three processing options is presented in Table 1-2. Case A, with the lowest capital investment for production of concentrates only, provides a pre-tax internal rate of return (IRR) of 23.49%, while the added capital investment to produce indium sponge and zinc metal in Case B improves the pre-tax IRR to 28.87%. For Case C, a substantial increase in capital investment over Case B is required, only to yield a lower pre- tax IRR. This, in combination with higher risk associated with marketing of tin chloride in specialized markets, provides little incentive to further pursue Case C for production of tin chloride.

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Table 1-2: Economic Model Discounted Cash Flow Summary Results

PARAMETER CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Dichloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge Pre-production Capital Investment (Mine and Process) $41,170,456 $71,104,058 $90,128,610

Total Operating Cost (Mine, Process, Administration) $63.58/tonne $82.19/tonne $109.26/tonne Pre-tax Financials Cumulative Cash Flow Life of Project $74,628,040 $167,648,629 $200,091,547 Net Present Value, NPV (8% discount) $32,777,842 $79,897,754 $93,411,456 Internal Rate of Return, IRR 23.49% 28.87% 27.37% Payback Period (years) 4.26 3.46 3.65 Table Notes: [1] All costs are in Canadian Dollars.

The initial technical and economic assessment has concluded that the production of tin concentrate and zinc-indium concentrate (Case A) and production of tin concentrate, indium sponge and zinc metal (Case B) using the conceptual process technology identified by the study are potentially viable development concepts for processing of ore from the North Zone. Further development of the process technology and the assessment of revenue potential from either concentrates (Case A) or added value products (Case B) will dictate the final selection of the metallurgical process for subsequent feasibility studies. It is recommended that bench scale testing and pilot programs be conducted to better define the metallurgical process both for the concentrate production and the hydrometallurgical process for zinc and indium production.

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 2-1

SECTION 2.0 INTRODUCTION

2.1 Background

Adex Mining Inc. ("Adex") is a Canadian junior mining company listed on the TSX Venture exchange under the symbol "ADE". Adex owns a 100% interest in the Mount Pleasant Mine Property ("Mount Pleasant" or the "Property"), which it acquired in 1995. The Property is located in southwestern New Brunswick, Canada and is the site of a past-producing tungsten mine with existing surface infrastructure including several buildings and a tailings impoundment area.

The mineral resources estimates section (Section 17.0) repeats, for completeness, the NI 43-101 resource estimation for the North Zone originally filed on SEDAR in May 2009. It also includes an internal review, undertaken on the geology and mineral resources of the Mount Pleasant tin- indium-zinc-copper mineralization of the North Zone, with focus on the identification and estimation of high-grade primary tin and indium-zinc blocks of mineralization located within the Deep Tin ("DTZ"), Upper Deep Tin ("DTZ-UP"), North Adit ("N. Adit"), #1-3 Tin Lode, #4 Tin Lode and #5 Tin Lode sub-zone deposits. The aforementioned lode deposits are of interest because of their proximity to the surface (less than 80 metres depth) and to the underground workings of the North Zone 600 Adit which was developed during the 1960s. The DTZ, DTZ-UP and N. Adit deposits are also a focus of this review because of their relative proximity to the surface (less than 250 metres depth) and overall higher tin and indium grades in comparison to the average grades of the North Zone. These factors enhance the economic attractiveness of selectively exploiting these sub-zones based upon a low-tonnage, high-grade production scenario. The Endogranitic sub-zone, which is situated between 250 to 400 metres depth in the North Zone is not included in this review.

The review of the high-grade blocks reported in Section 17.0 is defined within the boundaries of the DTZ, DTZ-UP, N. Adit, #1-3 Tin Lode, #4 Tin Lode and #5 Tin Lode sub-zone deposits in the NI 43-101 assessment. These blocks are re-delineations of resource boundaries based upon higher cut-off grades and thus do not represent any additional newly outlined mineralized material or an increase in the resource estimation.

Based on the high grade blocks identified within the North Zone resource estimate, Adex Mining Inc. contracted Thibault & Associates Inc. (Fredericton, New Brunswick) to prepare and coordinate a preliminary assessment of production options from the Property's North Zone. Adex further requested that Thibault & Associates Inc. prepare an Independent Technical Report on the preliminary assessment compliant with NI 43-101. The objective of the preliminary assessment was to develop conceptual processing options and compare the preliminary economic assessment for three production options:

 Case A: Production of tin concentrate and indium-bearing zinc concentrate  Case B: Production of tin concentrate, indium sponge, and zinc metal  Case C: Production of tin chloride, indium sponge, and zinc metal.

An economic model was developed and a range of run-of-mine ore processing rates in the range of 250 to 1000 tonne/day were investigated. Based on the available resources, it was determined that the best economy of scale was achieved for a processing rate of 850 tonne/day run-of-mine ore and therefore the results of this preliminary assessment only include a processing rate of 850 tonne/day run-of-mine ore.

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2.2 Sources of Information

This report has been prepared using information from several previous reports issued on resources and metallurgical testing, government reports, internal company reports, and vendor quotes. A complete listing of information sources is included in Section 31.0 of the report. The report draws heavily on the previously filed an independent NI 43-101 compliant technical report on the North Zone by Watts, Griffis and McOuat Limited, entitled “A Technical Review of the Mount Pleasant Property, including a Mineral Resource Estimate on the North Zone, Southwestern New Brunswick for Adex Mining Inc.”, dated May 6, 2009.

2.3 Scope of Work

This report is based on a compilation of the technical contributions from several consultants listed in Table 2-1. J. Dean Thibault of Thibault & Associates Inc. was responsible for supervising the preparation of the overall Technical Report, but, did not verify the information contained in the sections of the report not prepared by Thibault & Associates Inc. and has relied on the qualified persons who are responsible for preparation of such sections.

Each of the qualified persons listed in Table 2-1 completed at least one site visit during the project. The scope of work completed by each QP and the relevant sections of the report prepared by them are identified in Table 2-1.

Table 2-1: Qualified Persons and Areas of Responsibility for the Preliminary Assessment

RELEVANT QUAILIFIED PERSON COMPANY AREA OF RESPONSIBILITY SECTION

Supervision of preparation of overall technical report, mineral processing/metallurgical testing 1.1, 1.5, 1.6, 3.0, and conceptual design, capital and operating 16.0, 25.0, 26.0, Thibault & cost estimates for mineral processing facilities J. Dean Thibault, P.Eng. 27.0, 28.0, 29.1, Associates Inc. and site infrastructure (equipment, mechanical, 29.4, 29.5. 29.6 electrical, civil), compilation of overall capital and 30.1 and operating costs, economic analysis, summary, conclusions and recommendations. Report compilation, mineral processing Thibault & Stephanie Scott, P.Eng. conceptual design, environmental 21.0, 22.0, 23.0 Associates Inc. considerations, markets, contracts Introduction, property description, site Thibault & infrastructure, mineral processing conceptual 2.0, 4.0, 5.0, 19.0, Tim McKeen, P.Eng. Associates Inc. design, mineral processing plant layout, taxes 20.0, 24.0 for economic analysis. 1.2, 1.3, 7.0 Geology, exploration, drilling, sampling, mineral Trevor Boyd, P.Geo. Adex Mining Inc. through 15.0, 17.0, resource estimates. 29.2 and 30.2 Hara-Mining Mining method, mining capital and operating 1.4, 18.0, 29.3 and Andrew Hara, P.Eng. Enterprises Inc. cost estimates, mine production and mine life. 30.3

2.4 Disclaimer

The preliminary assessment and economic analysis contained herein are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the results of the preliminary assessment will be realized with more detailed work. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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This report was compiled by several qualified persons responsible for the sections as identified in Table 2-1. None of the QP's assume responsibility for sections of the report that were prepared by other QP's. As identified in Section 3.0, the QP's have relied upon the statements, opinions and reports of certain experts in the preparation of this report. The QP's disclaim liability for the statements, opinions, and reports of those experts to the extent that they have been relied upon in producing the report.

Adex Mining Inc. is permitted to use and reproduce the report pursuant to its obligations under Canadian provincial securities legislation, including filing the report on SEDAR. Except for the purposes legislated under provincial securities law, this report or portions thereof are not to be used or reproduced for any purpose and any such action would be at that party's sole risk.

This report is intended to be read as a whole, without omission of sections or appendices, and should not be read or relied upon outside of the original context of the Technical Report. The professional opinions of the QP's are based on information available at the time of preparation. The information, conclusions and recommendations contained herein are consistent with the level of accuracy and/or other constraints that are also defined herein.

A draft copy of the preliminary assessment report has been reviewed by Adex Mining Inc. for factual errors.

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 3-1

SECTION 3.0 RELIANCE ON OTHER EXPERTS

3.1 General

In preparation of certain sections of the report, Thibault & Associates Inc. has relied upon a variety of reports, opinions and statements of other experts. The extent of reliance on other experts is described by this section.

3.2 Geological Studies and Exploration

Adex Mining Inc. exploration activities and assessment of geological resources are currently being carried out under the supervision of Dr. Trevor Boyd. Mr. Gustaaf Kooiman is a geological consultant working under the supervision of Dr. Boyd and was the senior geologist at the Mount Pleasant mine during the Billiton operation from 1981 to 1985. Mr. Kooiman has worked on the study as defined herein and Thibault & Associates Inc. has relied on information related to exploration and the assessment of geological resources as provided by Mr. Kooiman.

3.3 Property Description, History and Ownership

Various studies and reports have been completed since 1960 that detail and describe the history of the exploration and development of the Fire Tower Zone and the North Zone of the Mount Pleasant property. Mr. Gustaaf Kooiman is responsible for the compilation of documents that have been used by Watts, Griffis and McOuat in Technical Reports prepared in 2006, 2008 and 2009. The property description and history is also defined by previous studies completed by Billiton Exploration Canada Limited and by documents issued by Canadian Bechtel Limited in the early 1960's. Thibault & Associates Inc. has relied on the information contained in other reports with respect to compilation of the property description and history.

For the purpose of this report, the authors have relied on ownership information provided by Adex Mining Inc. The authors have not researched property title or mineral rights for the project and express no legal opinion as to the ownership status of the property.

3.4 Mineralogy, Metallurgical Processing and Waste Treatment

Several metallurgical bench scale and pilot studies have been completed since 1960 by CANMET, SGS Lakefield, Cominco Engineering Services, Research and Productivity Council (RPC) and Thibault & Associates Inc. on various development options for the Mount Pleasant property. In addition to an assessment of the studies completed prior to this report, multiple technical publications from various scientific and engineering journals were reviewed by Thibault & Associates Inc. to develop a conceptual process flowsheet and cost estimates.

ADI Limited has completed preliminary treatability testing and provided a concept for mine water treatment as of 2008. Thibault & Associates Inc. has relied on the accuracy of these reports and technical journals prepared by others.

3.5 Product Markets and Value of Products

A detailed study of market trends and product price trends was not completed by a commodity marketing specialist. Formal take-off agreements have not been arranged for the sale of the products identified by the study. Both quality and quantity of products defined by the study are

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 3-2 preliminary based on the conceptual process. Test programs to confirm the quality and quantity (recoverability) of the products have not been completed at this time and are currently in progress. Product specification requirement is based on published information, documents purchased from Roskill (Roskill, 2004)) and general discussions with Amalgamet Canada and Indium Corporation. The price or value for all products has not been based on definitive agreements and source of pricing has been referenced by the study. In this respect, Thibault & Associates Inc. has relied on the accuracy of published reports, historic metal pricing data/trends and technical journals prepared by others.

3.6 Environmental Impact and Environmental Planning

Several studies have been completed over the last three years by Jacques Whitford - Stantec including a conceptual reclamation plan study in 2008 for the Fire Tower Zone (as part of the Fire Tower Zone Scoping Study completed by Aker Solutions, 2008). Thibault & Associates Inc. has relied on the conceptual mine reclamation plan prepared by Jacques Whitford to define estimated reclamation and mine closure costs for this assessment.

3.7 Other

Numerous equipment vendors (new and used) have provided budget costing for purchase of major process equipment. Chemical suppliers have also provided budgetary costs for purchase of reagents and chemical as required for development of the process operating costs. Competitive bid pricing for equipment purchase, chemicals and consumables was not completed and pricing is based on standard industrial requirements, commercial terms and technical specifications. Adex Mining Inc. has provided information on general site administration expenses, proposed labour rates and overhead, project directives and product marketing directives. Thibault & Associates Inc. relied on this information without independent verification. The information is considered reasonable for conceptual preliminary design and costing of the proposed process technology.

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SECTION 4.0 PROPERTY DESCRIPTION AND LOCATION

4.1 Mining Claims and Surface Rights

The Mount Pleasant property is located in Charlotte County, in southwestern New Brunswick, approximately 80 km south of Fredericton, 65 km northwest of Saint John and 35 km north of St. George (see Figure 4-1).

Figure 4-1: Mount Pleasant Property Location Map (Figure Credit: Watts, Griffis & McOuat)

The property is located at approximately 45°26'N latitude and 66°49'W longitude. The entire land package consists of 102 contiguous mining claims covering approximately 1600 hectares held under prospecting license 14338. In January 1989, Hughes Surveys and Consultants provided a legal survey of the property perimeter. Figure 4-2 shows the location and claim numbers of the mining claims for the property.

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Figure 4-2: Mount Pleasant Property Claim Map (Figure Credit: Watts, Griffis & McOuat)

All of the claims are currently in good standing and the annual fees are fully paid until the February 2, 2010 renewal date. The annual renewal fee for the claims is $3,060. There is also an annual work requirement of $61,200 for the claims (Watts, Griffis and McOuat, 2009).

Adex holds surface rights covering approximately 405 hectares within the mining claims that includes the area of the mine site, mill site and tailings pond, as well as the Saddle Zone and northern sections of the Fire Tower Zone and North Zone. Third parties including the province of New Brunswick and private individuals own the remaining surface rights in the claim area.

The property hosts two distinct mineralized zones, the Fire Tower Zone (“FTZ”) with a NI 43-101 compliant indicated resource of 13,489,000 tonnes and the North Zone (“NZ”) with a NI 43-101

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 4-3 compliant indicated resource of 10,882,000 tonnes. The FTZ is dominated by tungsten- molybdenum mineralization occurring within three distinct deposits, the Fire Tower North, the Fire Tower West and Fire Tower South where fine-grained wolframite and molybdenite are the principal minerals of economic interest (Watts, Griffis and McOuat, 2009). The North Zone, about one kilometre to the north of the FTZ, consists of eight distinct tin-indium-bearing deposits or sub- zones consisting of the Deep Tin Zone, Upper Deep Tin Zone, Endogranitic Zone, North Adit Zone, North W-Mo Zone and the #1-6 Tin Lodes (Watts, Griffis and McOuat, 2009). Minerals of economic interest in the NZ include tin, zinc and indium.

4.2 Royalties

There may be a royalty payment in the amount of $0.10 per ton of ore mined payable to Mount Pleasant Mines Limited (D.M. Fraser Services Limited, 1994) although Adex has no original documentation to confirm or deny the existence of this royalty. Royalties have been excluded in this preliminary assessment.

4.3 Permits

Under the current care and maintenance operation at the mine site, mine water that overflows from the flooded mine workings is treated in a mine water treatment plant operated under New Brunswick Approval to Operate I-6154. In the event of a renewed mining and processing operation on the Property, the relevant permits required have been outlined in Section 21.0.

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SECTION 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility

The mine site is accessible year-round by all-season roads from Fredericton, St. George, and Saint John. Commercial airports located at Fredericton (Oromocto) and Saint John service the mine site, while Saint John is a major year round containerized deep sea port servicing all of New Brunswick.

5.2 Climate and Physiography

The climate in southwest New Brunswick is characterized by warm summers from June through September, cool spring and fall seasons with frequent rain, and freezing temperatures and substantial snowfall in winter from November through March. The proximity of southern New Brunswick to the Bay of Fundy provides a moderating effect on minimum winter temperatures relative to those experienced in Northern New Brunswick. Environment Canada historical climate records for nearby Fredericton from 1971 to 2000 indicate average daily minimum temperatures in January and February of -15.5°C and -14.1°C, respectively. The extreme minimum temperature for the same period is reported as -35.6°C for January and -37.2°C for February, while the average maximum temperature is -4.0°C for January and -2.3°C for February. In the summer, the maximum temperatures are 25.6°C average and 36.7°C extreme for July while for August, the maximum temperatures are 24.7°C average and 37.2°C extreme. The average minimum temperature in July is 13.0°C and in August it is 12.1°C. The yearly average total precipitation is 1143.3 mm including 276.5 cm of snowfall and 885.5 mm of rain. The New Brunswick climate allows for year-round mining and milling activities.

The Mount Pleasant area consists of rolling hills and the land is mostly treed with hardwoods dominant at higher elevations and softwoods more prevalent in lower elevation poorly drained areas. The previous mill site is approximately 230 m above sea level while the top of Mount Pleasant has an elevation of approximately 370 m above sea level. Most of the property is well drained with Hatch brook flowing across the property receiving the existing controlled tailings pond discharge. Hatch brook flows into the Piskahegan river which is a tributary to the Magaguadavic River.

5.3 Local Resources and Infrastructure

The Mount Pleasant area is mostly unpopulated except for a scattering of locally owned hunting camps. During the 1983-85 Billiton tungsten/molybdenum operation, labour forces were recruited from the Saint John, St. George, St. Stephen, Oromocto and Fredericton regions. Fredericton has a population of about 50,000 while Saint John has a population of about 70,000. It is expected that labour forces for a mining operation at Mount Pleasant would once again be recruited from these nearby cities and towns.

The Property is currently maintained year round by a three person crew. This crew provides round-the-clock site security and environmental monitoring, maintains roads and site access, provides building maintenance, and performs other duties related to property care and maintenance.

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Buildings on the site are in excellent condition and include the administration building, warehouse, ore storage “A” frame, concentrator, core storage, cold storage, electrical substation, and mine ventilation building. The crushing building and all conveyor galleries are intact and also in excellent condition. Major processing, mining and mobile equipment including mills, flotation units, crushers and all mining equipment have been sold and removed from the site. Several remaining storage tanks, thickeners, water treatment equipment, utility piping, pipe racks, and transformers have been considered for re-use in this study. The infrastructure has been well maintained since mining operations ceased in 1985.

The tailings pond constructed by Billiton in 1980-82 breached in 1998 during a late spring flash flood when the emergency spillway failed. Water discharged from the pond but tailings remained inside the pond perimeter. A temporary spillway was re-established and final repairs were completed in 2008. The tailings pond is a major infrastructure asset of the Adex property.

Domestic water supply is from a local well that has been in continuous service since at least 1980. Process water for the Billiton operation was drawn from the nearby Piskahegan River but that service has been discontinued. Adex intends to reclaim process water from the tailings pond and make use of the existing infrastructure which includes a process/fire water tank and underground piping to the concentrator building.

Electrical power from the NB Power grid is supplied via a 138 kV transmission line to the mine site substation and transformed to 4160 V and 600 V for powering mine and mill production equipment. The substation is regularly maintained by contract electrical personnel. Two of three 4160 to 600 volt transformers are intact; one was sold and removed from site.

Adex has retained 100% ownership of the buildings and equipment remaining on the Property.

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SECTION 6.0 HISTORY

The history of past mining/milling operations, exploration and development, and drilling programs has been well summarized in the NI 43-101 Technical Report on the North Zone (Watts, Griffis, McOuat, 2009).

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SECTION 7.0 GEOLOGICAL SETTING

7.1 Regional Geology

The Mount Pleasant deposits are located in southern New Brunswick within the Appalachian Orogen in eastern Canada. The deposits occur within gently dipping Late Devonian Piskahegan Group volcanic and sedimentary rocks that are the remnants of a large epicontinental caldera complex (Sinclair et al, 2005).

The regional geology in the mine area (see Figure 7-1) is dominated by the Mount Pleasant Caldera, the exposed part measuring approx 13 km by 17 km (Adex Mining Inc., 1995). Multiple layered granitic intrusive rocks and associated mineralization at Mount Pleasant were emplaced along the southwestern margin of the caldera complex. This structure occurs within the northern extension of the Appalachian geosynclinal belt and is situated on the southeast flank of New Brunswick’s Central Basin (Adex Mining Inc., 1995).

Figure 7-1: Regional Geology in Area of Mount Pleasant, New Brunswick (Figure Credit: Watts, Griffis & McOuat)

7.2 Local Geology

The best geological map of the property was produced by Billiton Exploration Canada Limited in 1985. Since then, the property has never been mapped in detail. The interpretation of the geology at Mount Pleasant in and around the deposits has been obtained from diamond drilling information. The local geology of the property is shown in Figure 7-2

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Figure 7-2: Local Geology of Mount Pleasant Property (Figure Credit: Watts, Griffis & McOuat)

Mount Pleasant represents the volcanic remnants with both vent and conduit fillings of a mineral- rich volcanic eruptive centre located along the southwest margin of the Mount Pleasant Caldera (see X2, Adex Mining Inc., 1995). This eruptive centre has a marked topographic expression reaching 230 m above the valley floor.

At Mount Pleasant, the caldera is comprised of Piskahegan Group rocks of Late Devonian age consisting of three ash flow layers of rhyolitic pyroclastic rocks referred to as the Quartz-Feldspar Porphyry that are separated by two discontinuous units of sedimentary breccia (up to 100 m thick) that forms the western boundary of the caldera, a feldspar porphyry and metasedimentary rocks of interbedded red conglomerate, sandstone and shale (Sinclair et al, 2005; Billiton Canada Ltd., 1985b). These ash flow tuffs of the Piskahegan Group probably originated from the numerous vents in the caldera. All rocks within the caldera generally dip about 10° to 15° to the northwest except along the margin of the Mount Pleasant Caldera where they dip at 15° to 50° toward the centre of the caldera (Sinclair et at, 1988).

The caldera rocks have been intruded by a line of inverted cone-shaped cupolas of granitic rocks and associated breccias (collectively named the “Mount Pleasant Porphyry”) that outcrop at the North Zone, Fire Tower Zone and within an intermediate Saddle Zone that does not reach surface. It should be noted that little information has been provided on the “Little Mount Pleasant” cupola that occurs at depth to the south of the Fire Tower Zone. At the Fire Tower and North Zones, crosscutting breccias and associated intrusive rocks form irregular, roughly vertical pipe-

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 7-3 like complexes that were centres of sub volcanic intrusive and related hydrothermal activity (Sinclair, 1994). The intrusive rocks were probably emplaced at depths of 1.0 km or less. The cupolas, comprised of dominantly brecciated and altered volcanic vent material, host the tungsten-molybdenum and tin-base metal mineralization on the property. The clast-supported breccias are complex with extensive hydrothermal alteration and were most likely formed from multiple episodes of explosive brecciation related to magmatic fluid overpressures developed in the crystallising, fluid-saturated granitic magma.

In greater detail, three distinct intrusions have been identified underlying the volcanic rocks at Mount Pleasant, designated Granite I, Granite II and Granite III, which underlie the North Zone and Saddle Zone. Granite I and II appear to closely correlate with the fine-grained granite and granite porphyry of the Fire Tower Zone, but they are separate intrusions. Granite III and porphyritic granite appear to represent different parts of the same intrusive body (Sinclair, 1994).

Structurally, the Mount Pleasant volcanism is marginal to and controlled by radial and peripheral faulting associated with the Mount Pleasant Caldera (Adex Mining Inc., 1995). Faulting is present in the Mount Pleasant area as northwest to southeast-trending breaks that appear to post-date deposit formation, redistribute the mineralized zones and displace some of the mineralization (Atkinson et al, 1981).

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Figure 7-3: Mount Pleasant Mine Site Geology and Drill Holes (Figure Credit: Watts, Griffis & McOuat)

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SECTION 8.0 DEPOSIT TYPES

8.1 General

The mineral deposits of Mount Pleasant are unique as they are the largest known tin-tungsten- bismuth occurrences in the Canadian Appalachian (Parrish and Tully, 1978). Furthermore, they are prime examples of a combined porphyry-tungsten and porphyry-tin deposits hosted within Devonian age volcanic rocks that are not noted for such mineral deposits. A description of the deposit types is provided below focussing on tungsten, molybdenum, tin-base metal porphyry deposits at Mount Pleasant, which have been the principal exploration target since the 1930s.

The North Zone tin deposits have marked similarities to many of the world tin porphyry deposits. However, at the time of the discovery of the tin-base metal mineralization by Brunswick Tin Mines in 1967, it was difficult to establish a geological model for the mineralization as similar deposits were not known in New Brunswick or elsewhere in Canada. Comparisons were made with hypothermal-type ore bodies, those of Cornwall, England, or xenothermal-type Bolivian deposits (Kooiman, 2004). It was determined that the tin-bearing lodes within the North Zone had characteristics similar to some of the Cornish tin lodes (Kooiman et al., 1986: Kvaerner Metals Davy Ltd., 1997).

Hosking (1985) concluded that the North Zone tin deposits were similar in a broad geological setting to Bolivian porphyry deposits, excluding the very rich tin lodes, which are characteristic of the Bolivian deposits. He explained that the exo- and endo-tin deposits associated with the apices of granitoid cusps were common and well-documented with examples occurring at Sadisdorf (Germany) and Zinnwald or Cinovec (Czechoslovakia), Queensland and New South Wales, Eastern Mongolia and elsewhere. Furthermore, he suggested that the apex of a granitoid cusp, which has been emplaced in quartz-porphyry at Zinnwald may broadly reflect what was presently indicated in the North Zone granite. Hosking (1985) cautioned that it would be misleading to forecast likely tonnages and grades for the North Zone by considering tonnages and grades of other deposits based on their similarities to the North Zone.

The Contact mineralization within the North Zone has been compared to granite-related greisen tin deposits such as such as Cinovec, Krupka and Krasno in Czechoslovakia and the German Democratic Republic (Billiton Canada Ltd., 1985b). Average tin contents in the strongly greisenized zones are of the order of 0.1-0.3% Sn. The Sn:W ratio varies from 1:1 (Krupka) to 5:1 (Krasno) and 10:1 (Cinovec).

8.2 Porphyry Tin-(±Indium) Deposits

Porphyry tin deposits have been described in detail below by Sinclair (1995b). These deposits form along extension zones in cratons, particularly post-orogenic zones, underlain by thick crust, possibly cut by shallow-dipping subduction zones. In addition to tin, these deposits can also contain tungsten, silver and indium (as at Mount Pleasant).

In Canada, deposits have been found at Mount Pleasant and East Kemptville (Nova Scotia). When East Kemptville was in production it was the major producer of tin in North America. Deposits discovered outside Canada include Catavi, Chorolque and Cerro Rico stock (Bolivia), Ardlethan and Taronga (Australia), Kingan (Russia), Yinyan (China) and Altenberg (Germany).

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Porphyry deposits are commonly related to intrusive rocks and associated breccias but may also include sedimentary, volcanic, igneous and metamorphic rocks. Tuffs or other extrusive volcanic rocks may be associated with the deposits related to subvolcanic intrusions. These deposits occur in high-level to subvolcanic felsic intrusive centres in cratons where multiple stages of intrusive rock may be present.

Deposits vary in shape from an inverted cone to roughly cylindrical to highly irregular. They are typically large, generally hundreds of metres across and tens to hundreds of metres in vertical extent.

The age of mineralization is the same as the porphyry Mo deposits, Paleozoic to Tertiary. Tin occurs principally in cassiterite with other ore minerals such as stannite, chalcopyrite, sphalerite and galena. Indium can also occur within the sphalerite as observed at Mount Pleasant. Common gangue minerals consist of pyrite, arsenopyrite, löllingite, topaz, fluorite, tourmaline, muscovite, zinnwaldite and lepidolite. Mineralization is structurally controlled in stockworks within crosscutting fractures and quartz veinlets or disseminated in hydrothermal breccia zones. Mineralization is genetically related to felsic intrusions (i.e., granites), with ore minerals concentrated in fracture stockworks, hydrothermal breccias and replacement zones.

Sericite-pyrite-tourmaline alteration is pervasive in Bolivian porphyry tin deposits where sericitic alteration is bordered by weak propylitic alteration. Greisen alteration, consisting of quartz-topaz- sericite, commonly occupies the central zones of deposits (i.e., Ardlethan, Yinyan). These zones grade outward to quartz-sericite-chlorite alteration.

As with the porphyry Mo, tin deposits have a magmatic-hydrothermal origin with the same genetic model (discussed above). However, in the case of tin deposition, the mixing of magmatic fluids with meteoric water may result in the deposition of some tin and other metals in late-stage veins.

In exploring for tin porphyry deposits the host rocks may be anomalously high in Sn, Ag, W, Cu, Zn, As, Pb, Rb, Li, F, and B close to the mineralized zones and in secondary dispersion halos in overburden. Anomalous high concentrations of Sn, W, F, Cu, Pb and Zn have been found in stream sediments. Deposits generally occur in related intrusions, which are geophysically represented as magnetic lows although the contact aureole may be a magnetic high if pyrrhotite or magnetite are present. Anomalous U, Th or K can produce a radiometric high in response to the related intrusive rocks, alteration and mineralized zones.

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SECTION 9.0 MINERALIZATION

9.1 General

A number of well-documented major mineralized zones have been identified at Mount Pleasant. These zones, from south to north, have been designated as the Fire Tower Zone, Saddle Zone and the North Zone. A schematic cross-section of Mount Pleasant showing the locations of the zones is illustrated in Figure 9-1. For this preliminary assessment, the main deposits of interest are located within the North Zone and occur within 250 m from surface.

The Fire Tower Zone contains predominantly large (low grade) tungsten-molybdenum deposits and was previously mined for tungsten. Some small indium-bearing tin-base metal zones are also present in the vicinity of the Fire Tower Zone. WGM prepared an NI 43-101 compliant Mineral Resource estimate for the Fire Tower Zone in 2008.

The North Zone contains the largest and most important indium-bearing, tin-base metal "resources" outlined to date along with some poorly defined lower-grade tungsten-molybdenum bodies (Adex Mining Corp., 1995). The Saddle Zone, located between the Fire Tower Zone and the North Zone, contains mineralized zones consisting of predominantly tin and some base metals.

9.2 North Zone

The North Zone is polymetalic with copper, bismuth, tungsten, molybdenum, and other metals accompanying the predominate tin-indium-zinc. Two principal types of deposits have been identified, the tin-indium-zinc and porphyry tungsten-molybdenum deposits where the latter is the least dominant deposit type in the North Zone.

An NI 43-101 compliant global Mineral Resource estimate for the North Zone, completed by Watts, Griffis and McOuat Limited using an updated GEMCOM model, was completed in conjunction with the preparation by WGM of an independent NI 43-101 Technical Report under the supervision of Trevor Boyd, P. Geo., Adex Mining Inc.’s Geological Consultant.

For the NI 43-101 compliant estimate, Trevor Boyd geologically modeled and delineated the boundaries of the North Zone tin-bearing deposits in drill section. The deposits are plotted on cross sections spaced 25 meters apart and mineralization boundaries were drawn halfway between drill holes. If no holes existed to limit the mineralization outlines, the boundaries were extended to a maximum of twenty metres away from the nearest hole. In general, extensions of the boundaries were made consistent with the trends defined by joining known cut-off boundaries. A minimum width of 3 metres was used for defining the zones, and a specific gravity of 2.70 was used for estimating the resources. As a result of this interpretive work, the following deposits have been delineated near surface and at depth (see Figure 9-1 and Figure 9-2):

 The Deep Tin Sub-Zone ("DTZ");  The Upper Deep Tin Sub-Zone ("DTZ-UP");  The Endogranitic Sub-Zone ("Endo");  The North Adit Sub-Zone ("N. Adit");  The North W-Mo Sub-Zone; and  The #1-3, #4, #5 and #6 Tin Lodes.

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The Endogranitic and North W-Mo sub-zones are not included in the focus of this Report.

Figure 9-1: Representative Cross-section of Mount Pleasant Mineralized Zones (Figure Credit: Watts, Griffis & McOuat)

The eight modeled sub-zones or deposits that make up the North Zone are distributed over an area of 450 by 250 metres extending from the surface to a vertical depth of 450 metres. An 1,100 metre decline, which was used to collect bulk samples in 1986, extends from the Fire Tower Zone underground workings to the Endogranitic sub-zone. The decline and underground workings are presently flooded. An exploration drive developed in the 1960s extends from the surface to the vicinity of the #1-3, #4 and #6 Tin Lode sub-zones. Many of the North Zone deposits contain significant amounts of indium with the zinc. Indium-bearing tin-base metal zones in the North Zone appear to be principally associated with sphalerite and are more concentrated in the Deep Tin Zone (Sinclair et al, 2005). Host rocks are often brecciated and altered to a fine-grained, greisen-type assemblage of quartz, sericite, topaz and fluorite.

The principal mineralogy of the deposits consists of fine to very fine-grained cassiterite, arsenopyrite, löllingite, sphalerite and chalcopyrite with lesser amounts of stannite, pyrite, marcasite, galena, wolframite, molybdenite, tennantite, chalcocite, bornite, native bismuth, bismuthinite and wittichenite. Other associated minerals include abundant fluorite and chlorite (Kooiman et al, 2005). The tin and porphyry tungsten-molybdenite deposits of the North Zone represent two different periods of mineralization even though they overlap spatially. Tin mineralization in the North Zone is younger than the Fire Tower Zone and crosscuts the older molybdenum-tungsten zones.

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Figure 9-2: Geological Interpretation of the North Zone Deposits (Figure Credit: Watts, Griffis & McOuat)

The Deep Tin, Upper Deep Tin, North Adit and six distinct tin lodes, designated #1 to #6, have been identified in the North Zone in association with granite porphyry dykes, with hydrothermal breccia or altered feldspar porphyry (Kvaerner Metals Davy Ltd., 1997). Adex (1995) describes the lodes as leakages from the deeper-seated endogranitic deposits that extend from surface to a depth of around 250 metres. The shallow tin lodes contain very fine-grained cassiterite and lesser amounts of stannite and are associated with arsenopyrite, löllingite, sphalerite and chalcopyrite (Sinclair, 1994). Less abundant sulphides include molybdenite, pyrite, marcasite, galena, bornite, tennantite, bismuthinite, wittichenite and roquesite. Quartz, fluorite, topaz and chlorite are the principal alteration minerals in association with greisenized feldspar porphyry.

9.2.1 Deep Tin

The Deep Tin sub-zone is an irregularly-shaped body hosted by brecciated Granite I which is locally porphyritic (Figure 9-2). This zone begins on drill Section 1+50NW ending on Section 4+50NW and is located between mine elevations 1,000 m to 1,150 m. The zone reaches to within

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40 m laterally of the Upper Deep Tin Zone extending from 140 to 270 m vertical depth. Three predominate alteration phases have been recorded: silicification, chloritization and sericitization. Some silicified sections of drill core are moderately altered to kaolinite. The mineralization is identical to that of the Upper Deep Tin Zone.

Mineralization occurs in hydrothermally brecciated and fractured granite rocks located adjacent to granite and porphyry dykes. Arsenopyrite, cassiterite, sphalerite and chalcopyrite infill fractures as veinlets, microveinlets, stringers or are deposited as blebs or pods, semi-massive sulphides and disseminations. Tin content can range from 0 to 3 modal percent with the occasional cassiterite grains displaying colliform textures. Some veins contain molybdenite and wolframite (1-2% range) and native bismuth with disseminated specks of chalcopyrite. Veins can also contain eplidote, talc and serpentine. The most common replacement minerals are arsenopyrite and purple fluorite.

9.2.2 Upper Deep Tin

The Upper Deep Tin sub-zone contains tin-indium-base metal mineralization hosted in brecciated Gr I and Gr II granite rocks and feldspar porphyry. There are a series of horizontal shaped deposits that have been traced from drill Section 1+50NW to Section 4+50NW (same as the Deep Tin Zone) from mine elevations 1,000 m to surface..

This zone is situated above the Deep Tin sub-zone extending from 80 to 140 m vertical depth from surface. Alteration consists of silicification and chloritization (± kaolinite).

Cassiterite, sphalerite and chalcopyrite occur in hydrothermal fracture filled veins, as massive or semi-massive sulphides, sulphide pods and disseminations in association with high concentrations of arsenopyrite and purple fluorite. Wolframite and molybdenite are hosted in veinlets as well as dissemination (1 to 2 modal percent) with minor amounts of native bismuth. Again, some UST’s have also been observed in the drill cores.

9.2.3 #5 Tin Lode

Very little information is available describing the #5 lode. According to Parrish and Tully (1976), it consists of four steeply northeast dipping lodes that strike 310° to 325°. This zone extends from the surface to a vertical depth of 70 m. Tin mineralization occurs in the matrix of silicified breccia rocks. The mode of mineral occurrence is very similar to that of the #6 and #1-3 lodes. During the 2008 drill program this lode was expanded in tonnage considerably to the northwest and includes a series of scattered, erratically mineralized and narrow indium-zinc-tin lodes situated above and containing similar mineralogy to the Upper DTZ sub-zone. The lodes are commonly connected by a halo of low grade Zn-In mineralized wall-rock which can in places be of economic importance, but is not consistently.

9.2.4 North Adit

The North Adit sub-zone consists of a series of isolated tin-indium mineralized bodies that occur outside the immediate contact zone of the intruding granite GR IIB cupola in the North Zone (Figure 9-2). Intersections of tens of meters of mineralization occur mostly north and north-east of this cupola. The distal relationship of these mineral deposits with respect to the main GR II-B body is highlighted by the virtual absence of later granite porphyry dykes and associated lode- style mineralization. The deposits have been traced on drill section from 4+25NW to 6+75NW and

Host rocks are highly altered and brecciated Granite (Gr I + Bx), feldspar porphyry ("FP"), granite and quartz-feldspar porphyry ("QFP") rocks which are locally chloritized, silicified, epidotized and kaolinized. The contact crest mineralization is situated in breccias and other associated host rocks at the upper contact of the Granite II-B cupola. These rocks can be intruded by granite dykes.

The tin-indium deposits are superimposed of narrow fluorite-rich replacements of purple fluorite veins, pods and disseminations sometimes associated with kaolin and abundant, locally massive, arsenopyrite. Sphalerite, cassiterite, wolframite, pyrite, chalcopyrite and molybdenite infill fractures as veins or are disseminated in the host rocks.

9.2.5 #4 (and #6) Tin Lodes

The #4 (and #6) Lodes are located on the north eastern portion of the North Zone and have been traced in drill Section from 5+50NW to 7+75NW from the surface to approximately 70 metres depth. The two lodes are considered together in the WGM NI technical report as they are, to all extent, joined. The #6 lode is essentially the northwest extension of the #4 lode (Parish and Tully, 1976). WGM has observed that the geology of this deposit, from surface to depth, is quartz- feldspar porphyry overlying a mix of feldspar porphyry and QFP containing granite porphyry dykes, which then overlay, at depth, FP rocks.

The tin occurs in sheared and silicified QFP adjacent to the contact with the FP. Overall, the best tin grades occur in breccia dykes in the host porphyry in the core of the #4 Tin Lode and can be observed on surface. Mineralization consists of sphalerite, cassiterite, cassiterite and minor pyrite and galena within veins, or as semi-massive sulphide pods and disseminations. Some quartz- bearing veinlets contain wolframite and molybdenite. The rocks can be locally sericitized and chloritized with fluorite and minor amounts of serpentine. There is also a significant amount of siderite iron carbonate.

9.2.6 #1-3 Tin Lodes

The #1-3 Tin Lodes have been traced from drill section 2+50NW to 500NW to a maximum vertical depth of 80 m from surface in the centre of the North Zone. On Section 3+50NW, tin is most concentrated in a zone that is up to 25 m wide (true width). Host rocks consist of locally silicified, chloritized, kaolinized and brecciated Granite I and granite porphyry rocks (Granite IIA).

The #1 Lode is well exposed on surface with mineralization consisting of veins, blebs, pockets, pods and specks of sphalerite, chalcopyrite, stannite, cassiterite and arsenopyrite. Sulphides are usually associated with kaolinized breccia pipes and purple and green fluorite which infill vugs. Silicified granite porphyry rocks host the #2 Lode. The #3 Lode is composed of pods, pockets and irregular masses of sulphide, fluorite and kaolinite in brecciated host rocks. No vein or vein-like features are present. The dominant sulphide is sphalerite with a small amount of cassiterite. The fluorite is not as prevalent as in the #1 Lode.

SECTION 10.0 EXPLORATION

10.1 General

The reader is directed to the 2006, 2008 and 2009 WGM technical reports for details regarding all of the exploration work conducted on the Mount Pleasant Property from 1994 to 2008 (Watts, Griffis and McOuat, 2008, 2006, and 2009).

In November, 2006, Adex filed an assessment report to the Department of Natural Resources of New Brunswick summarizing all exploration work from October 2005 to July 2006, including the completion of the WGM NI 43-101 report (Boyd, 2006). Adex also filed a second assessment report in covering all of the exploration work carried out on the property between the months of January to November of 2008 (Boyd, 2008). This report included only the Phase 1 portion of the diamond drilling program completed on the Fire Tower Zone and North Zone and has been filed for assessment credit. To date, all of the exploration work has been carried out under the supervision and direction of Dr. Trevor Boyd, the company’s geological consultant.

Since June, 2006, exploration work on the Mount Pleasant Property has advanced in the following manner largely with reference to the North Zone:

 In 2008, Adex has completed a two-phase 13,300 m definition and exploration drilling program to expand and update the existing mineral resource estimate of the Fire Tower Zone tungsten-molybdenum deposit and provide drillhole data to expand and prepare a new NI 43-101 compliant resource estimate of the North Zone tin-indium deposit;  Diamond drilling was also completed to recover fresh drill core from the Fire Tower Zone and North Zone for metallurgical bench and mineralogical testing;  The 2008 drill program involved completion of a thirty-six hole (8,859 m) definition diamond drilling program to further define the mineral resources on the North Zone - the subject of this report (see Section 11.0 for details);  Adex selected 262 pulp samples from the North Zone drill program and dispatched them for SGS Lakefield Research Limited ("SGS Lakefield") to Activation Laboratories ("Actlabs") for assay verification as part of their due diligence program (see Section 14.0 on Data Verification);  The results of the Fire Tower Zone drilling and NI 43-101 compliant mineral resource estimate of this zone can be reviewed by the reader in the WGM Technical Report filed in early 2009 (Watts, Griffis and McOuat, 2009);  Additional sampling and analyses of historical drill core, not previously sampled within the North Zone, was completed as recommended in the WGM report (Watts, Griffis and McOuat, 2006);  Adex submitted 144 historical drill core samples consisting of split drill cores, fill-in samples, 31 pulps and 4 rejects covering 75 historical drill holes for its Phase I assay verification at SGS and/or Actlabs (see Section 14.0);  A total of 407 split core samples and 253 pulps were submitted from 49 historic drill holes for assay verification at SGS and/or Actlabs (see Section 14.0);  Adex has completed an updated 3-D wireframe model of the North Zone incorporating the new diamond drillhole data and infill sampling of historical drill core. This model was presented to WGM to review and prepare a tin-indium Mineral Resource estimate of the North Zone (see Section 17.0);

 All new sample analytical data was inputted by Adex into the existing GEMCOM database covering both the Fire Tower Zone and North Zone;  Jacques Whitford provided technical support for the dam repair, tailing contingency where potential metals re-dissolution as ph changes in pond, prefeasibility environmental assessment (base line study), sludge pond design, review of radioactive materials and impact on health and safety;  ADI Limited completed the design of the tailing dam upgrade between the months of July to October, 2007, to repair a breach in the tailings pond;  Repairs and upgrades to the tailings dam and emergency spillway were completed by Monteith Underground Services Ltd. ("Monteith") of Fredericton, New Brunswick;  Preliminary mineralization and liberation studies were completed at SGS Lakefield;  Hydromet testing (to remove arsenic) was completed using low grade tungsten concentrate from the Fire Tower Zone and is also being considered using the molybdenum concentrate (dirty concentrate stored in barrels on site;  Adex contracted SGS Lakefield Resource Europe Ltd. ("SGS Lakefield England") of Cornwall, England, to test the gravity-flotation separation process designed by Thibault & Associates Inc. for processing ore from the Fire Tower Zone and North Zone deposits;  Monthly water quality monitoring/testing is ongoing in compliance and in accordance with the terms of the "Approval to Operate" under the supervision of Thibault & Associates Inc.;  A Baseline Environmental Effects Monitoring Program was completed by Jacques Whitford involving water and sediment quality sampling as well as fish habitat surveys and analysis of fish tissues for metals at the Mount Pleasant mine site;  An Assessment Study ("Scoping Study") has been completed by Aker Solutions Canada Inc. ("Aker Solutions") of the Fire Tower Zone using the resource estimate provided in the 2006 WGM technical report and the designed gravity separation flowsheet. An "Executive Summary" of the SRK report is presented as an Appendix at the back of the WGM report (Watts, Griffis and McOuat Limited, 2008).

10.2 Scoping Study of the Fire Tower Zone

In July, 2008, Adex contracted Aker Metals, a division of Aker Solutions to conduct an Assessment Study ("Scoping Study") to assess the economic potential of the Fire Tower Zone tungsten-molybdenum deposit based on the updated "Indicated" mineral resource estimate calculated of the Fire Tower Zone by WGM in this report (see Section 17.0). The Scoping Study was based on gravity-flotation and hydrometallourgical process designed by Thibault & Associates Inc. The reader is referred to Adex’s press release summarizing the results of this assessment study of the Fire Tower Zone (Adex Mining Inc., 2008d). A summary of the Scoping Study results is provided in Appendix 3 of the Watts, Griffis and McOuat Limited (2008) Technical Report.

SECTION 11.0 DRILLING

11.1 General

Since early March, 2008, Adex has completed 49 drill holes in total for its Phases 1 and 2 programs for a total of 13,300 m, testing both the tin-indium-zinc-copper and tungsten- molybdenum-bismuth zones throughout the Mount Pleasant Mine Property (see Figure 7-3). These drill programs, operated under the supervision of Adex geological staff, were carried out in order to verify the extent of known mineralization, to delineate the possible extensions of zones and to expand on the existing mineral resource estimates at the Fire Tower Zone and North Zone in compliance with NI 43-101. Drilling was also completed to recover fresh drill core material for metallurgical bench and mineralogical testing.

The reader is directed to Watts, Griffis and McOuat (2008) for details regarding the results of the Fire Tower Zone drilling program and directed to Watts, Griffis and McOuat (2009) for details regarding the results of the North Zone drilling program. All of the 2008 drill hole collar locations are shown on Figure 7-3. The North Zone drill results are briefly summarized below.

Adex completed a two-phase 36 hole diamond drilling program on the North Zone for a total of 8,859.1 m. Phase I, consisting of holes AM-08-01 to 07 and AM-08-10, was conducted from February 27, 2008 to June 18, 2008. The remaining Phase II holes were completed from May 17 to September 11, 2008. The NI 43-101 compliant mineral resource estimate presented in the Watts, Griffis and McOuat (2009) report for the North Zone utilizing the new and historic diamond drill hole data.

The drill contract was awarded to Lantech Drilling Services Inc. ("LanTech") of Dieppe, New Brunswick. Core size is "NQ". Down hole surveys were completed using a Reflex single shoot instrument every 100 m. Upon the completion of each hole, the casing was left in for all holes, the holes were capped and numbered and the collar location recorded using a global positioning instrument ("GPS").

Adex logged the core, Rock Quality Designation ("RQD") and core recovery data was collected and the core was photographed and split. Drill geologists use a binocular microscope to assist in identifying the individual mineral phases within the drill core as mineralization is often very fine grained and not visible to the naked eye.

A total of 2,667 spit core samples were collected from the North Zone drill holes, the majority of the samples measuring 3.0 m in length. All analytical results were added to the company’s GEMCOM digital database. At the end of the diamond drilling program, Adex dispatched 262 pulp samples to SGS for assay verification as part of their due diligence procedures.

11.2 Drill Hole Surveying

In May and October, 2008, the drill collar locations for the 2008 drill holes and as many of the historical drill collars possible were surveyed by Murphy Surveys (1990) Ltd. ("MSL"), located in Old Ridge, New Brunswick. Surveying was done using a real time Trimbel G8 (base and rover) receiver with a Trimble TSC2 data collector/controller. All points were acquired within an accuracy of ±0.1 m or less. Coordinates are reported in NAD83. These data were added to the GEMCOM

database. Comparisons of the WGM hole coordinates against the MSL data differed by only 1.0 to 2.0 m.

SECTION 12.0 SAMPLING METHOD AND APPROACH

The reader is directed to Watts, Griffis and McOuat (2008 and 2009) for details regarding the results of the Fire Tower Zone and North Zone sampling methodology and approach. Information regarding the sampling methodology and approach was obtained through discussions by WGM personnel with G. Kooiman during the Mount Pleasant field visits and from previous geological reports and papers provided by Adex.

All assay results reported in this document have been obtained from previous Adex reports and from reports from previous operators that have worked on the Property. The practice of reporting exploration results to the public has changed dramatically over the last decade. In the past, it was largely up to the company as to what results they wished to report to the public. For example, an acceptable practice was to only report the best assay results. Many did not choose to disclose their sampling techniques, the name of the laboratory to which samples were dispatched or include copies of the original assay report certificates in their final report. The best records have been kept since Brunswick Tin Mine’s arrival on the Property in 1969 to present. The authors have no reason or evidence to question the validity of the data presented in the historical reports. It is the authors' opinion that all sampling methods disclosed conform to generally accepted Canadian mining industry practice.

Since the early 1980s, there has been good ongoing continuity to the project through the utilization of standardized log sheets, having the same personnel running the drill programs and conducting the logging and sampling. For example, Mr. Kooiman has been associated with the project for some 25 years, working as a geologist for Billiton, LAC, Novagold and Piskahegan and now as a geological consultant for Adex.

The reader is directed to the WGM technical report describing the sampling methods and approach taken by the various operators prior to June, 2006 (Watts, Griffis and McOuat Limited, 2006 and 2008, Section 12. Sampling Method and Approach). In 1986, LAC collected 74 face, selective wall and muck samples of the North Zone Access Decline following the following sampling method according to Gustaaf Kooiman (not previously reported in the 2006, 2008 WGM Technical Reports):

"A face sample consisted of 20-25 fist sized samples collected at breast height across the face. None of these samples were continuous channel samples but, instead, represented different alteration styles and mineralization. These samples were taken to the core shack, washed and then inspected under the microscope. The same procedure was undertaken for the wall samples."

The various Adex sampling methods and approaches with reference to the 2008 diamond drill program and historical core re-sampling programs is summarized below.

The 2008 drill core was logged and split in half using a hydraulic core splitter. Samples were sealed in plastic bags, the sample tag placed in the bag and sample numbers written on the outside of the bag using a permanent magic marker pen. The bags were then sealed and shipped in batches by a bonded carrier to the SGS laboratory. A pulp (or reject) duplicate, unknown to the laboratory is submitted for every batch of 10 samples as part of Adex’s quality control procedures. A certified polymetallic standard, unknown to the laboratory, is also included with each shipment of duplicate samples. Samples submitted to the laboratory in batches of 100 samples. One Mount

Pleasant standard (pulp) is submitted with every batch of samples. All samples were securely stored at the Mount Pleasant mine site under lock and key before these were dispatched to the laboratory for analyses.

In 2008, Adex collected ¼ split core samples of the historical drill core for assay verification at a secondary ISO certified laboratory. Any additional drill core not previously sampled with split in half following the same method described above for the 2008 drill core samples.

WGM followed the same sampling procedure as Adex including the insertion of a certified standard with each batch of samples submitted to the laboratory for each of the three field visits. All samples were ¼ split samples of the pre-existing drill core over the entire interval sampled by Adex. With the exception of the standard sample, each core sample weighed between 2.5 to 4.0 kg with an average sample weight of 3.0 kg. Samples were placed in 5-gallon plastic pails (4- 5 samples per pail), sealed, labelled and hand delivered by WGM to the Charlottetown, PE, bus terminal for shipping by Greyhound to the SGS laboratory in Toronto.

SECTION 13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY

13.1 General

The reader is directed to Watts, Griffis and McOuat (2008 and 2009) for details regarding the Fire Tower Zone and North Zone sample preparation, analysis and security. Information regarding sample preparation, analyses and security was obtained through discussions held with Trevor Boyd and G. Kooiman and information provided from geological reports provided by Adex. It is the authors' opinion that the sample preparation, security and analytical procedures used conformed to generally accepted Canadian mining industry practice.

The drill core was split in the core shack building on the minesite under the supervision of the project geologist. This building was and is locked and a security fence surrounds the minesite buildings. Security was and is maintained on the site 24 hours, 7 days per week. All drill core from the previous drill programs and new 2008 drill core is stored within the confines of the minesite which are surrounded by a fence with a gate security guard which is manned 24 hours a day, seven days a week.

All coarse rejects and pulps remain in storage in the large core shack warehouse located on-site. The rejects have been labelled and are stacked on wooden pallets. The Mount Pleasant Tungsten Mine (1985) "Mothball" report provided an inventory list of the stored rejects at the time of the mine closure. However, this list has not since been updated.

The reader is directed to the WGM technical report describing sample preparation, analyses and security by the previous operators who worked on the Property prior to June, 2006 (Watts, Griffis and McOuat, 2006). A total of 10 of the 74 face, wall and muck samples collected by LAC from the North Zone Access Decline were analyzed at Lakefield Research, a division of Falconbridge Limited in 1986 (not previously reported in the 2006, 2008 WGM Technical Reports). These samples were analyzed for tungsten, bismuth, molybdenum, copper, zinc, iron, tin, lead, arsenic and gold. The remaining samples were analyzed at tungsten, molybdenum, arsenic, bismuth, copper, lead, zinc and tin at the Mount Pleasant Tungsten Mine laboratory located on the mine site. No information is known regarding laboratory sample preparation or sample security. The various Adex sampling methods and approaches with reference to the 2008 diamond drill program and historical core re-sampling programs is summarized below.

The majority of the analytical work was completed by SGS Mineral Services ("SGS") located in Don Mills, Ontario (Boyd, 2008, 2006). This laboratory is an ISO/IEC 17025 accredited laboratory. Samples, including those from the 2008 drill program, were analyzed for W, Mo, Sn, Bi, As, Zn, Cu, Pb, and ICP-MS finish for In. The following methods were used to analyze samples at SGS:

 A sample, weighing less than 3.0 kg, is first dried, crushed to 75% passing 2 mm, split to 250 g and then pulverized to 85% passing 75 micron (method code PRP89);  Ore grade analysis by sodium peroxide fusion, ICPOES finish for Cu, Pb, Zn, As, Sn, Bi, Mo and W (method code ICP90Q);  Indium by sodium peroxide fusion ICP-MS finish using method code IC90M (detection limit 0.2 ppm to 0.1wt%). Over-limit indium analyses were completed using method code ICP90Q after sodium fusion ore grade analyses; and,  In and Zn by sodium peroxide fusion/ICP-AES and ICP-MS finish (method code ICM90A).

Pulp duplicates plus additional core and pulp samples were sent to Activation Laboratories ("Actlabs"), located in Ancaster, Ontario, for analysis as follows:

 The sample is dried, crushed (90% to pass 2 mm), split to 250 gm and pulverized to 95% passing 75 micron at the sample preparation facility in Fredericton, New Brunswick;  Peroxide fusion and ICP analysis for Cu, Pb, Mo and As (method code 8). Detection limits

0.01 wt% for As, Pb and Zn, 0.008 for MoS2, and 0.005 for Cu;  Peroxide fusion ICP/MS analysis for Bi and In (method code 8). Detection limits 2 ppm for Bi and 0.2 ppm for Indium; and  Fusion XRF for Sn and W (method code 8). Detection limits 0.002 wt% for Sn and

0.003wt% for WO3.

Actlabs is ISO/IEC 17025 and CAN-P-1579 (Mineral Analysis) accredited by the Standards Council of Canada ("SCC").

All of the Adex 262 pulp samples selected to verify the 2008 drilling results were dispatched directly from SGS to Actlabs for analyses. Adex did not handle these samples. Each of the samples was analyzed for tin, indium, zinc, copper, lead, tungsten, molybdenum, bismuth, and arsenic using the Actlabs analytical methods described above.

The Phase I samples collected by Adex of the historical drill core were submitted to both SGS and Actlabs for analyses. All samples were analyzed for indium with sixty-five samples analyzed also for tin, zinc, copper, lead, tungsten, molybdenum, bismuth and arsenic using the analytical methods described above.

All 407 samples of the Phase II historical assay verification program were submitted to both SGS and Actlabs for analyses. The 154 quarter split core samples were dispatched to Actlabs and analyzed for indium, arsenic, bismuth, copper, molybdenum, lean tin, tungsten and zinc using the analytical methods described above.

The 252 pulps from long-term storage at the mine-site were submitted to SGS for analyses for indium, arsenic, bismuth, copper, molybdenum, lean tin, tungsten and zinc using the analytical methods described above. Fifteen samples from drill hole LNZ6 were only analyzed for indium (samples 13058-13062 and 13084-13093). Additional information regarding historical core and pulp sample analyses for indium are described in Section 14.3 of this report.

The high-definition mineralogy assessment completed at SGS Lakefield was completed using QEMSCAN technology and X-ray diffraction analyses. A separated Electron Microprobe analysis was completed on the indium carrying minerals.

13.2 WGM Analytical Methods

Watts, Griffis and McOuat’s (2009) 41 quarter split drill core samples and standards were dispatched to SGS in Don Mills, Ontario. The following analytical methods were used to assay the samples:

 Preparation code PRP89 as described above;  Ore grade analysis using method ICP90Q for Cu, Pb, Zn, As, Sn, Bi, Mo and W as described above;

 A 50 g pulp fire assayed for gold, ICP-AES finish (method FAI505);  IC90M for In as described above with over-limit In analyses by ICP90Q; and,  A 50 g pulp assayed for Ag (method AAA50). Silver by method AAS21E for trace element concentrations was also completed by three acid aqua regia digest, AAS finish.

One standard sample MP-2 was submitted with this batch of samples as part of WGM’s QA/QC procedures and is the same standard inserted by Adex in sample shipments to the various laboratories. This tungsten-molybdenum ore reference material has been certified by CANMET Mining and Mineral Sciences Laboratories located in Ottawa, Ontario as part of the Canadian Certified Reference Materials Project ("CCRMP"). The certified values will not be reported here to ensure its continued use in future Adex diamond drilling programs.

SECTION 14.0 DATA VERIFICATION

14.1 General

In 2008, Adex conducted it’s own two-phase diligence program to verify the historical assay results obtained by previous operators that explored the North Zone on the Mount Pleasant property. Adex also dispatched pulp samples to a secondary certified laboratory to verify their 2008 diamond drilling assay results. WGM collected split core samples of mineralized core from 34 of the 2008 North Zone drill holes and SGS-Geostat Ltd. completed an audit of the Gemcom database provided by Adex to calculate the mineral resource estimate (see Section 17.0). The results of these corroboration efforts are detailed in Watts, Griffis and McOuat (2009) and summarized below.

14.2 Adex Assay Verification of the 2008 Diamond Drilling

At the completion of the 2008 diamond drilling program, Adex dispatched 262 pulp samples, or approximately 10% of the total split core samples, from SGS to Actlabs for recheck assay verification as part of their due diligence QA/QC procedures. Each of the samples was analyzed for tin, indium, zinc, copper, lead, tungsten, molybdenum, bismuth, and arsenic.

Watts, Griffis and McOuat (2009) reviewed these data and prepared a series of scatter graphs comparing the analytical results from the two laboratories for tin, indium, zinc, copper, tungsten and molybdenum and arsenic. An examination of the raw data and plots by WGM indicates that, overall, the assay results between the two different laboratories compared very well. Two pulp samples collected from drill hole AM-08-10 demonstrated very poor repeatability for copper between the two laboratories. At SGS, sample 18041 assayed 1.98% Cu with the Actlab result returning no significant values (<0.005% Cu). Sample 18048 returned 0.14% Cu at SGS but the check assay again returned <0.005% Cu. The remaining 260 samples showed excellent repeatability. As for tungsten (WO3), two of the 262 check pulp samples did not compare well.

Sample 186370 from drill hole AM-08-32 assayed 0.01% WO3 at SGS with the pulp returning

0.33% WO3 at Actlabs. The second sample, 186090 from hole AM-08-36, assayed 0.01% WO3 at

SGS but returned 0.439% WO3 at Actlabs.

The reason behind the very high grades returned for both Actlabs analyses is currently being investigated.

14.3 Adex Verification of Historical Assay Results (Phase I)

Adex analysed 144 historical drill core samples at both SGS and Actlabs in order to verify the assay results between the two laboratories. This sample batch consisted of 55 quarter split drill cores, 54 fill-in samples (not previously split and sampled), 31 pulps and 4 rejects from long-term storage covering 75 historical drill holes. The holes were from the following list of previous operators:

 1996 Adex Mining Corp. (surface "AM Series" holes);  1987-1988 Lac Minerals Ltd. (surface "LNZ Series" holes);  1986 Lac-Billiton Tin Project (underground "C Series" holes);  1985 Billiton Exploration Canada Ltd. (surface "E Series" holes); and  1969-1975 Brunswick Tin Mines (surface "MPS Series" holes).

All samples were analyzed for indium with sixty-five samples analyzed also for tin, zinc, copper, lead, tungsten, molybdenum, bismuth and arsenic.

Watts, Griffis and McOuat’s (2009) examination of the raw data and scatter graph plot indicate that, overall, the assay results between the two certified laboratories compared very well. Sample number 19400 collected from drill hole AM96-7 representing a split of previously un-split drill core returned 0.14% WO3 at SGS but only trace concentrations of 0.02% WO3 at Actlabs. Again, SGS returned higher molybdenum concentrations for the same sample of 0.05 % MoS2 with Actlabs returning only 0.01% MoS2.

14.4 Adex Verification of Historical Assay Results (Phase II)

Adex submitted 407 samples collected from the historical drilling programs for assay verification as part of their own due diligence exercise. A total of 154 samples were taken as quarter split samples from 40 drill holes from the following programs:

 26 underground holes drilled by Lac-Billiton in 1986 (C Series holes) for a total of 119 split core samples; and  14 surface holes drilled by Brunswick Tin Mines between 1969 and 1975 for a total of 35 split core samples (MPS Series holes).

These samples were dispatched to Actlabs to be analyzed for indium, arsenic, bismuth, copper, molybdenum, lean tin, tungsten and zinc.

A total of 253 pulps, originally placed in long-term storage at the minesite, from nine holes drilled from 1987 to 1988 by Lac-Billiton drill were collected by Adex. These samples were packaged and submitted to SGS for analyses for indium, arsenic, bismuth, copper, molybdenum, lean tin, tungsten and zinc. Fifteen samples from drill hole LNZ6 were only analyzed for indium (samples 13058-13062 and 13084-13093).

Watts, Griffis and McOuat’s (2009) examination of the raw data and scatter graph plot indicate that, overall, the assay results between the two certified laboratories compared very well. Of the drill core selected for these comparative analyses, only 70 samples (1 split core sample and 69 pulps) were historically analyzed for indium as follows:

 Hole C141 with one quarter split core analysed for indium at SGS;  Hole LNZ11, pulp samples 13233 and 13171 analyzed at Actlabs;  Hole LNZ10A, pulp samples 13172-13196 (25 samples) analyzed at Actlabs;  Hole LNZ7, pulp samples 13094-13122 (29 samples) analyzed at Actlabs; and  Hole LNZ5, pulp samples 13001-13013 (13 samples) analyzed at Actlabs.

Two samples, were removed due to poor assay repeatability. Sample 13171 from hole LNZ11 historically assayed 357 ppm In but Actlabs returned only 24.2 ppm In. As for sample 13173 from hole LNZ10A, the historical assay value was 144 ppm In with Actlabs only returning 10 ppm In. The reason for these erroneous returns is not know but laboratory sample preparation contamination is one possible explanation. The remaining indium assay comparisons between the historical values and either SGS or Actlabs were very good.

Approximately 45% of the 391 samples comparing historical tin assay results with the secondary laboratory showed considerable scatter and poor repeatability for certain samples that originally assayed greater than 0.5% Sn. A total of 19 samples, 17 quarter split cores and 2 pulps, demonstrated the worst assay re-check repeatability, most being those assayed at Actlabs with the historical assay values always being significantly higher in grade. However, the tin assay results compare reasonably well between the historical and re-check laboratory when these 19 samples are removed from the database.

The database contained 341 samples that were analyzed for zinc. Three re-check samples for zinc returned very poor assay repeatability. In each case the historical assay results were much higher in grade than the check laboratory. These were also the same samples that produced poor assay re-checks for indium and tin. With these three samples removed from the database, the assay results between the historical and check laboratory showed good grade comparisons. Sample 13233 returned the highest historical zinc assay of 11.62% Zn with the pulp check assaying 9.71% Zn at SGS.

A total of 81 samples within the database did not have any copper assay values for the historical analyses. Four historical sample assays returned very poor assay repeatability where the original assay grades were significantly higher than the recheck assays values obtained by SGS and Actlabs; three of the samples were the same as those that repeated poorly for indium, tin and zinc. Once these samples were removed from the database, the historical and recheck assays then compared reasonably well for 310 samples. Sample 13014 from drill hole LNZ5 returned the highest copper assay grade.

A total of 36 samples were removed from the database of 391 samples as the historical assays did not include any tungsten assays. The best sample was obtained from hole LNZ12 (sample

13293) whose historical assay was 3.27% WO3 with a check assay of the quarter split core of

4.76% WO3 at SGS. Overall, the historical assays were, in general, higher in tungsten grade than those assayed at SGS. A scatter plot of the historical assays with the check assay laboratory compared reasonably well. Seven historical assays were found to have very poor repeatability. Sample 13293 was removed from the plot to better display the overall trend of majority of the sample represented by lower tungsten grades.

Forty-one check assays of six historical drill holes clearly demonstrate little to no repeatability between the historical assay grades for molybdenum and the check laboratory. The worst assay repeats where observed from 39 pulps dispatched by Adex to SGS from holes LNZ 9, 10A, 11, and 12. A majority of these samples, originally assaying greater than 0.10 wt% MoS2, returned no significant molybdenum at SGS (less than 0.02wt% MoS2). Each of these poor sample results should be further investigated. Removing these samples from the database shows a better correlation between the historical and check assay results but there is still some scatter to the data, irrespective of the check laboratory used.

A scatter plot of 369 historical assays with the check laboratory for bismuth demonstrates a very poor repeatability of assay grades especially for the pulp samples assayed at Actlabs. Seventy- two samples were found to return the poorest assay repeats. Overall, the historical assays were very consistently greater than those returned by both Actlabs and SGS regardless if the sample was a quarter split of the remaining drill core or a stored pulp sample. Sample 13293 returned 0.79% Bi with a historical assay grade of 0.99% Bi, the highest bismuth assay within the database.

Only the check assay laboratory results were entered into the GEMCOM database for the resource calculation for both molybdenum and bismuth due to the poor assay repeatability between historical assays and those obtained at either SGS or Actlabs. However, the reasons behind the difference in assay results require further investigation.

14.5 WGM Data Corroboration

The reader is referred to the Technical Reports prepared by WGM covering the 2005 and 2008 field visits to the minesite regarding the North Zone (Watts, Griffis and McOuat Limited (2006, 2008 and 2009).

In 2008, WGM conducted three visits to the Mount Pleasant Property. The first visit was completed from May 2 to May 6, 2008 upon the completion of North Zone drill hole AM-08-07. A second and third visit was conducted from June 23 to 26 and November 24 to 28, 2008 upon the completions of the Phase I and Phase II drill programs, respectively.

During each visit, all of the new exploration work was reviewed, the 2008 drill core was examined and each of the drill sites was visited. A GPS (Garmin 12XL) was used to record the locations of the drill collar casings (NAD83, Zone 19T). Digital photographs were taken to document the field visit and sampling activities.

An examination of selective portions of the historical drill core and a majority of the 2008 diamond drill core from each of the subzones that comprise the North Zone porphyry deposit allowed WGM to verify the presence of significant tin, zinc, tungsten and molybdenum mineralization.

A total of 41 samples were taken to determine their precious and base metal concentrations and confirm the 2008 diamond drill program assay results. While reviewing the drill core, the sample tags and intervals were randomly verified for accuracy. Each WGM sample was a ¼ split of an original sample interval collected by Adex. Overall, the assay results compare very well with the original assays obtained over the same intervals by Adex (see Watts, Griffis and McOuat Limited, 2009). The following exceptions are noted as compared to the Adex samples from the same interval:

 The tin concentration for WGM sample 2292 was 0.87% Sn but Adex sample 18094 was much lower grade (0.02% Sn). WGM sample MP004 returned 7.37% Sn whereas Adex sample 173685 assayed just under half that concentration at 3.94% Sn.;  Over 95% of the indium assays compared very well. However, Adex samples 18010 containing 92.4 ppm In and 18313 with 237 ppm In returned 1,200 ppm In and 0.6 ppm In, respectively, when re-assayed by WGM at SGS. Scatter graphs could not be plotted as many of the WGM samples returned less than 100 ppm In;  WGM sample MP008 returned 10.73% Zn or almost eight times that of Adex sample 18010 that assayed 1.37% Zn. The zinc concentration of WGM sample 2292 (0.25% Zn) was significantly higher than Adex sample 18094 that returned less than 0.01% Zn;  The copper concentration for Adex samples 18713 (1.35% Cu) and 18849 (0.82% Cu) were almost double the concentrations than the copper values obtained by WGM at SGS of 0.72% Cu and 0.41% Cu, respectively. If these two samples are removed from the database, that remainder of the 39 samples compare very well between the two laboratories.

 The bismuth concentration for WGM sample MP112 (0.94% Bi) was 4.5 times that of Adex sample 18627 that assayed 0.1972% Bi.

No significant gold assays were obtained from any of the samples.

SECTION 15.0 ADJACENT PROPERTIES

The reader is directed to Watts, Griffis and McOuat (2008 and 2009), which state that, "WGM is not aware of any technical information regarding any adjacent properties that would be relevant to Mount Pleasant nor has the client brought WGM's attention to such information or data".

SECTION 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING

Mineral processing and metallurgical testing relative to the development of the conceptual process flowsheets upon which this Preliminary Assessment is based on test programs currently in progress and no data is available to report at this time. The test programs currently in progress are based on the conceptual flowsheet as defined by Thibault & Associates Inc. for the preliminary assessment.

The reader is directed to the Watts, Griffis and McOuat technical report entitled, "A Technical Review of the Mount Pleasant Property, Including a Mineral Resource Estimate of the North Zone, Southwestern New Brunswick for Adex Mining Inc." (Watts, Griffis and McOuat Limited, 2009) for a description of the most recent (2006 to present) test work that has completed on the Property. The reader is further directed to the Watts, Griffis and McOuat technical report entitled, "A Technical Review of the Mount Pleasant Property, Including a Mineral Resource Estimate for the Fire Tower Zone, Southwestern New Brunswick for Adex Mining Inc." (Watts, Griffis and McOuat Limited, 2006) for a description of historical mineral processing and metallurgical testing completed on the property prior to 2006.

SECTION 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE

17.1 General

The global Mineral Resource estimation for the North Zone completed by Watts, Griffis McOuat Limited ("WGM") and SGS - Geostat in the NI 43-101 Technical Review of The Mount Pleasant Property, including A Mineral Resource Estimate on the North Zone, Southwestern New Brunswick filed on SEDAR in May, 2009 is listed and discussed again below in accordance with NI 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. A summary of the North Zone - Mineral Resource estimates is provided in Table 17-1.

The four zones classified as Indicated were estimated using ordinary kriging for the four major elements (tin, indium, zinc and arsenic), the remaining elements tabulated below were estimated using the Inverse Distance interpolation method. For the four zones classified as Inferred, all elements were estimated using the Inverse Distance interpolation method. The mineral resources presented below are the strict accumulation of in-situ block tonnages above the set cut-off grades. No dilution factor was applied.

Table 17-1: Mount Pleasant North Zone 2009 NI 43-101 Compliant Resource Estimates

SUB- TONNAGE g/t In %Sn g/t In %Zn %As %WO %MoS %Cu %Bi ZONES [2] [1] 3 2 INDICATED RESOURCES Deep Tin 5,006,000 0.39 101.0 95.2 0.86 1.25 0.08 0.06 0.14 0.08 Endogran. 4,336,000 0.55 21.8 20.3 0.28 0.85 0.12 0.06 0.10 0.09 Upper Deep 838,000 0.22 102.8 94.9 1.36 0.76 0.08 0.06 0.07 0.05 Tin #4 Tin Lode 702,000 0.25 74.1 74.1 1.00 0.19 0.01 0.01 0.09 0.00 TOTAL 10,882,000 0.43 67.8 64.0 0.67 0.98 0.09 0.06 0.11 0.08 INFERRED RESOURCES #1-3 Tin 2,345,000 0.18 76.8 73.5 1.08 0.28 0.02 0.03 0.09 0.01 Lode #5 Tin Lode 1,267,000 0.15 115.4 111.3 1.50 0.70 0.07 0.04 0.08 0.03 North Adit 3,076,000 0.27 62.1 62.1 0.83 1.16 0.09 0.06 0.09 0.07 North W-Mo 915,000 0.26 54.3 49.8 0.58 1.14 0.25 0.12 0.12 0.10 TOTAL 7,603,000 0.22 74.6 72.3 0.99 0.80 0.08 0.05 0.09 0.05

Table Notes: [1] Capped indium grade. [2] Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The resource estimate for the Sn-In-Zn sub-zones was based on a cut-off grade of 0.25% Sn equivalent ("Sn Eq.") equal to %Sn + 41.67 x %In. The 0.25% Sn Eq. cut-off grade was provided by Adex based on a value of the mineralized material of US$30/tonne derived from the previous six-year price trend and price relationship between tin and indium using an estimated tin price of US$12.0/kg and indium price of $500/kg. Zinc was not incorporated into the estimation of the cut- off grade. In consultation with WGM and based upon these metal prices, Adex has determined that 0.25% Sn Eq. is an acceptable cut-off grade to report the resources.

A policy of capping of high indium grades was implemented based upon the statistical distribution of the metal within each individual sub-zone. Hence the Upper Deep Tin, Deep Tin, #5 Tin Lode, #1-3 Tin Lode, Endogranitic and North W-Mo sub-zones had capped indium grades at 965, 830, 750, 500, 200 and 200 g/t, respectively. No capping of indium was required for the North Adit or the #4 Tin lode.

Paul Dunbar, M.Sc., P. Geo., Senior Associate Geologist of WGM, an independent qualified person as defined by NI 43-101, carried out site visits to the Property in May and June, 2008 during which he examined the drilling program and core, and completed check sampling and assaying of core samples. Robert de l’Etoile, P.Eng. Geological Engineer of SGS – Geostat, an independent qualified person as defined by NI 43-101, checked assay results against the GEMCOM database. The database verification found no significant discrepancies in the geological information, which conformed to industry standards. Pulp duplicates of the drill core samples, unknown to the laboratory, were sent to a second laboratory fulfilling standard QA/QC protocols.

The Mineral Resources are reported in accordance with Canadian Securities Administrators’ NI 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. For the purposes of this report, the relevant definitions of the CIM guidelines are as follows:

 A ‘Mineral Resource’ is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.  An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.  A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

Mineral Resource classification is based on certainty and continuity of geology and grades. In most deposits, there are areas where the uncertainty is greater than others. The majority of the time this is directly related to drilling density. Areas more densely drilled are usually better understood than areas with sparser drilling.

The North Zone has been separated into eight sub-zones that have distinct chemical characteristics and geographical locations. They are distributed over an area of 450 by 250 meters extending from the surface to a vertical depth of 450 meters and are described as follows:

 Deep Tin Zone ("DTZ"); The DTZ is located at depth extending from 140 to 270m vertical depth. It presents high Sn, In, and Zn grades. It presents a good drilling density and about 85% of the samples have assayed In.  Endogranitic Zone ("Endo"); The Endo zone is located at depth extending from 250 to 450m vertical depth and presents high Sn grades. It presents a good drilling density and about 50% of the samples have assayed In.  Upper Deep Tin Zone ("DTZ-UP"); The DTZ-UP is located above the DTZ zone. It presents high Zn and In grades but lower Sn grades. It presents a good drilling density and about 70% of the samples have assayed In.  #4 Tin Lode ("4-Lode"); The #4 Lode zone is exposed on surface and extends to a vertical depth of 70m. It has high Sn, In and Zn grades. It presents a good drilling density and about 65% of the samples have assayed In.  North Adit Zone ("N-Adit"); The N-Adit zone consists of four 4 mineralized regions distributed

from the surface to a vertical depth of 250m. It has low Sn, In, Zn, WO3 and Bi grades. This zone is fragmented into many pods and the drilling density is lower than the above zones. Also, approximately 65% of the samples have assayed In.  #5 Tin Lode Zone ("5-Lode"); The 5-Lode zone is exposed on surface and extends to a vertical depth of 70m. It presents high Zn and In grades but lower Sn grades. The drilling density is good but only approximately 45% of the samples have assayed In grades.  #1-3 Tin Lode Zone ("1-3 Tin"); The 1-3 Tin Lode zone is made of several lodes, is exposed on surface and extends to a vertical depth of 160m. It has variable In, Zn and Sn grades. The drilling density is good but only approximately 5% of the samples have assayed In grades.  North W-Mo Zone ("W-Mo"); The W-Mo zone consists of three mineralized regions extending

from 80 to 350, vertical depth. It has variable WO3, MoS2, Sn, Zn and In grades. The drilling density is poor and only approximately 20% of the samples have assayed In grades.

17.2 Drill Hole Database Used

The drill hole database used contains a total of 633 drill holes, 1,138 hole survey records and 28,149 assay records for a cumulated drill hole length of 86,613m. It contains both historical and modern drill holes. A decision to use all drill holes available was taken after thorough verification of re-assays of archived core (see Section 14.0).

Indium grades were absent from the majority of the drill hole assays (71% of the assays are missing In). The following section describes the inference of indium grades as a function of Zn.

Assays having a grade of 0.0 were treated as such with the exception of In where a value of 0.0 was considered as missing. Also, the values below detection limit were coded as the negative value of the detection limit (with the exception of -1 meaning missing value). Those values, for the purpose of resource estimation were re-coded as positive half of the detection limit.

The following figures present schematic views of the drill hole locations. As can be seen in the global vertical cross-sections, holes have been drilled both from the surface and from underground workings.

Figure 17-1: Global Plan View Showing Drill Hole Traces (Figure Credit: SGS - Geostat)

Figure 17-2: Global Vertical Cross-Section Looking North Showing Drill Hole Traces (Figure Credit: SGS – Geostat)

17.3 Basic Statistics of Drill Hole Assay Data

Table 17-2 presents the basic statistics of all of the drill hole assays. All drill holes are grouped together.

Table 17-2: Basic Statistics of Drill Hole Assays

%Sn g/t In %WO3 %MoS2 %Cu %Zn %Bi %As %Pb nb<0 (below detection limit or 665 72 933 769 1,855 135 343 276 2,666 missing) nb=0 (* for In, nb of missing 4,365 20,094 11,991 4,571 7,337 2,973 10,583 5,990 7,959 values) nb>0 23,120 7,984 15,226 22,810 18,958 25,042 17,224 21,884 17,525 Total 28,150 28,150 28,150 28,150 28,150 28,150 28,150 28,150 28,150 Minimum (excludes <=0 0.002 0.02 0.003 0.005 0.005 0.01 0.0002 0.01 0.01 values) Maximum 14.94 8690 8.45 2.19 9.6 39.66 4.04 24.78 29.08 Average (excludes <=0 values) 0.15 50.40 0.10 0.06 0.07 0.47 0.07 0.64 0.07 St. Dev. (excludes <=0 values) 0.48 193.47 0.19 0.07 0.21 1.29 0.11 1.21 0.39 COV (excludes <=0 values) 317% 384% 185% 116% 302% 274% 157% 188% 529%

17.4 Inference of Indium Grades

The coverage of indium grades analyses vary from zone to zone. Since indium is an important contributor to the mineral resources of the North Zone, WGM established a correlation between In and Zn. The missing indium grades were inferred using a regression function. As a consequence, the zones with a low degree of In assay coverage (#5 Tin Lode and #1-3 Tin Lode) were treated as inferred resources regardless of their drilling densities. Based upon a review of historical assay records within the drill hole database, indium grades of 0.0 represent missing analyses, hence needing to be inferred by regression. Of the 28,149 assays of the drill hole database, 8,054 have assayed In values and 20,095 (71%) have missing indium results.

Figure 17-3 presents the scatter-gram of indium versus zinc grades for the North Zone. The graph is produced on log-transformed assay grades since it presents a slightly better correlation coefficient. The lognormal transformation is taken into account in the regression function. The logarithmic regression function is:

Log[In]  0.8832Log[Zn]  3.7123

The squared correlation coefficient (ρ2) is 0.5737 and the variance of the logarithms of Indium assays is 3.41. From the above regression function and parameters, we derive a regression function to be applied to the raw grades. This function is:

Reg[In]  e(logIn3.41(1.00.5737)/2) where log [In] is the logarithmic regression function above. In the cases where the zinc grade is 0.0, indium grade was set to 0.0.

Figure 17-3: Scatter-gram of Zinc Versus Indium Grade Assays (Figure Credit: SGS – Geostat)

17.5 Interpretation of the Mineralized Zones

The eight mineralized zones have been interpreted by Adex geologists. Basically, these zones have been interpreted by contouring grades on cross-sections and by linking the cross-sections into 3D solids. WGM has inspected the solids against drill hole lithology and grades and agrees with the current interpretation as a basis for the mineral resource estimation. There appears to be no relationship between lithology and grade. Grades cross lithological boundaries. For this reason, the 3D solids are derived mostly from grade variations. The following figures present sketches of the 3D solids used in this study. For the purpose of resource estimation, only the material found inside the 3D solids are considered potentially mineralized and anything outside them is treated as too low grade at the applied cut-off to be considered part of the resource material (not modeled).

NOTE: In Figure 17-4, Figure 17-5 and Figure 17-6, “DTZ-UP Surf” refers to “#5 Tin Lode”.

Figure 17-4: Schematic Plan View of the Geological Interpretation Showing Location of (Figure Credit: SGS – Geostat)

Figure 17-5: Vertical Cross-section Looking North of the Geological Interpretation Showing Location of Zones (Figure Credit: SGS – Geostat)

Figure 17-6: Schematic Vertical Cross-section Looking West of the Geological Interpretation Showing Location of Zones (Figure Credit: SGS – Geostat)

For this Preliminary Economic Assessment, the review of the NI 43-101 resource estimations of the sub-zones that make up the North Zone focuses on the Deep Tin, Upper Deep Tin, North Adit and the shallowly emplaced #1-6 tin lode deposits, but excludes the Endogranitic and North W- Mo sub-zones.

17.6 Sample Compositing

In order to proceed with a geostatistical analysis, the drill hole samples must be regularized into equal length composites. The selected composite length was 3 meters. This length coincides with the most frequent sample length as shown in the histogram of sample lengths below. Composites were created from the start of the hole down to the end. Composites with a sample length less than 1.5 meters were discarded. Figure 17-7 presents a histogram of the drill hole sample lengths.

Histogram of sample length North Zone 60.00 Relative Freq

54.00

48.00

42.00

36.00

30.00

24.00

18.00

12.00

6.00

Length 0.00 0.000 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000

Figure 17-7: Histogram of Drill Hole Sample Lengths (Figure Credit: SGS - Geostat)

Composites were further separated in distinct data sets, one per mineralized zone. Regarding indium grades, the statistical distributions show high grades highlighting the presence of outliers. WGM considered pertinent to apply capping in order to reduce the effect of the very high In values during the interpolation process. The following sub-sections summarize the compositing and In grade capping in each mineralized zone. WGM has used a capping method based on the relative metal contribution of highest grade composites. This method applies capping such that not more than 10% of indium metal is found in less than 1% of the highest grade composites.

17.6.1 Compositing and In Grade Capping in the Deep Tin Zone

Table 17-3 presents the basic statistics of the 3m composites in the DTZ zone.

Table 17-3: Basic Statistics of the 3m Composites in the DTZ Zone

In %Sn g/t In %WO %MoS %Cu %Zn %Bi %As %Pb Capped 3 2 Average 0.32 83.11 77.85 0.08 0.06 0.10 0.71 0.07 1.04 0.03 Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1784.2 Maximum 8.40 830.00 1.16 0.45 5.69 14.33 2.87 16.87 2.49 2 St. Dev 0.66 184.65 153.35 0.11 0.06 0.32 1.44 0.11 1.30 0.12 COV 203% 222% 197% 142% 98% 325% 204% 149% 125% 432% Count 1456 1456 1456 1456 1456 1456 1456 1456 1456 1456

As can be seen in Figure 17-8, a grade capping level of 830 ppm In keep the metal contribution to a maximum of 10:1. The effect of capping at 830 ppm is a metal loss of 6.3% and 1.6% of the composites are affected by the capping (23 composites).

Figure 17-8: Indium metal contribution graph in DTZ zone - Grade Capping

Histograms and cumulative frequency plots of the four major elements (Sn, In, Zn and As) can be found in Watts, Griffis and McOuat (2009).

17.6.2 Compositing and In Grade Capping in the Upper Deep Tin Zone (DTZ-UP)

Table 17-4 presents the basic statistics of the 3m composites in the DTZ-UP zone.

Table 17-4: Basic Statistics of the 3m Composites in the DTZ-UP Zone

%Sn g/t In In Capped %WO3 %MoS2 %Cu %Zn %Bi %As %Pb

Minimum 0.00 0.40 0.40 0.00 0.00 0.00 0.01 0.00 0.00 0.00 Maximum 3.37 3600.00 965.00 1.02 0.22 4.89 15.30 0.62 8.11 0.81 Average 0.17 96.53 80.46 0.08 0.06 0.07 1.16 0.05 0.71 0.02 St. Dev. 0.38 293.05 147.31 0.09 0.04 0.32 1.90 0.05 1.04 0.05 C.O.V. 227% 304% 183% 109% 63% 428% 164% 107% 147% 303% Count 344 344 344 344 344 344 344 344 344 344

As can be seen in Figure 17-9, a grade capping level of 965 ppm In keep the metal contribution to a maximum of 10:1. The effect of capping at 965 ppm is a metal loss of 16.6% and 1.2% of the composites are affected by the capping (four composites).

Capping of Indium composites in DTZ‐UP zone 80

40 metal

% Uncapped 30 Capped

0 012345678910

% Composites Figure 17-9: Indium metal contribution graph in DTZ-UP zone - Grade Capping

Histograms and cumulative frequency plots of the four major elements (Sn, In, Zn and As) can be found in Watts, Griffis and McOuat (2009).

17.6.3 Compositing and In Grade Capping in the #4 Tin Lode Zone

Table 17-5 presents the basic statistics of the 3m composites in the 4-Lode zone.

Table 17-5: Basic Statistics of the 3m Composites in the #4 Tin Lode Zone

%Sn g/t In In Capped %WO3 %MoS2 %Cu %Zn %Bi %As %Pb Minimum 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Maximum 3.85 713.06 713.06 0.23 0.08 0.95 7.02 0.09 4.01 1.03 Average 0.27 81.27 81.27 0.01 0.01 0.09 1.05 0.01 0.24 0.06 St. Dev. 0.41 101.11 101.11 0.03 0.01 0.13 1.18 0.01 0.44 0.11 C.O.V. 150% 124% 124% 224% 92% 136% 113% 187% 189% 191% Count 417 417 417 417 417 417 417 417 417 417

As can be seen in Figure 17-10, no capping is required as the 10:1 ratio is never exceeded.

Capping of Indium composites in 4‐Lode zone 60

30 metal

% Uncapped

0 012345678910

% Composites

Figure 17-10: Indium Metal Contribution Graph in #4 Tin Lode Zone - Grade Capping

Histograms and cumulative frequency plots of the 4 major elements (Sn, In, Zn and As) can be found in Watts, Griffis and McOuat (2009).

17.6.4 Compositing and In Grade Capping in the #1-3 Tin Lode Zone

Table 17-6 presents the basic statistics of the 3m composites in the #1-3 Tin Lode zone.

Table 17-6: Basic Statistics of the 3m Composites in the #1-3 Tin Lode Zone

%Sn g/t In In Capped %WO3 %MoS2 %Cu %Zn %Bi %As %Pb Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Maximum 7.30 1600.00 500.00 1.37 0.53 5.65 15.55 0.25 7.62 10.82 Average 0.13 48.79 47.36 0.01 0.03 0.06 0.65 0.01 0.17 0.07 St. Dev. 0.38 86.80 74.05 0.04 0.03 0.20 1.26 0.02 0.49 0.34 C.O.V. 282% 178% 156% 359% 103% 324% 193% 268% 285% 464% Count 2208 2208 2208 2208 2208 2208 2208 2208 2208 2208

As can be seen in Figure 17-11, a grade capping level of 500 ppm In keep the metal contribution to a maximum of 10:1. The effect of capping at 965 ppm is a metal loss of 2.9% and 0.6% of the composites are affected by the capping (14 composites).

Capping of Indium composites in 1‐3 Lode zone 60

30 metal

% Uncapped Capped 20

0 012345678910

% Composites

Figure 17-11: Indium Metal Contribution Graph in #1-3 Tin Lode Zone - Grade Capping

Histograms and cumulative frequency plots of the four major elements (Sn, In, Zn and As) can be found in Watts, Griffis and McOuat (2009).

17.6.5 Compositing and In Grade Capping in the #5 Tin Lode Zone

Table 17-7 presents the basic statistics of the 3m composites in the #5 Tin Lode.

Table 17-7: Basic Statistics of the 3m Composites in the #5 Tin Lode Zone

%Sn g/t In In Capped %WO3 %MoS2 %Cu %Zn %Bi %As %Pb Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Maximum 4.51 1400.00 750.00 4.20 0.24 0.94 13.50 0.36 10.05 1.14 Average 0.09 73.69 70.88 0.06 0.04 0.06 1.00 0.03 0.58 0.05 Str.Dev. 0.28 147.44 129.69 0.20 0.04 0.09 1.65 0.04 1.05 0.10 C.O.V. 305% 200% 183% 329% 89% 165% 165% 150% 181% 204% Count 598 598 598 598 598 598 598 598 598 598

As can be seen in Figure 17-12, a grade capping level of 750 ppm In keep the metal contribution to a maximum of 10:1. The effect of capping at 965 ppm is a metal loss of 3.8% and 1.3% of the composites are affected by the capping (8 composites).

Capping of Indium composites in DTZ‐Up Surf zone 60

30 metal

% Uncapped capped 20

0 012345678910

% Composites

Figure 17-12: Indium Metal Contribution Graph in #5 Tin Lode Zone - Grade Capping

Histograms and cumulative frequency plots of the four major elements (Sn, In, Zn and As) can be found in Watts, Griffis and McOuat (2009).

17.6.6 Compositing and In Grade Capping in the North Adit Zone

Table 17-8 presents the basic statistics of the 3m composites in the North Adit Zone.

Table 17-8: Basic Statistics of the 3m Composites in the N-Adit Zone

%Sn g/t In In Capped %WO3 %MoS2 %Cu %Zn %Bi %As %Pb Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Maximum 7.78 516.00 516.00 1.71 0.43 1.58 13.40 1.54 21.00 1.70 Average 0.25 45.10 45.10 0.09 0.06 0.08 0.59 0.07 1.18 0.03 St. Dev. 0.58 66.73 66.73 0.14 0.05 0.16 1.11 0.10 1.75 0.11 C.O.V. 230% 148% 148% 155% 98% 188% 189% 157% 149% 391% Count 866 866 866 866 866 866 866 866 865 866

As can be seen in Figure 17-13, no capping is required as the 10:1 ratio is never exceeded.

Capping of Indium composites in N‐Adit zone 60

30 metal

% Uncapped 20

0 012345678910 % Composites Figure 17-13: Indium Metal Contribution Graph in N-Adit Zone - Grade Capping

Histograms and cumulative frequency plots of the four major elements (Sn, In, Zn and As) can be found in Watts, Griffis and McOuat (2009).

17.7 Variography

The variogram analysis is a process by which spatial continuity of grade is quantified. The resulting variograms are then used in the geostatistical interpolation method called Kriging. WGM decided to restrict the geostatistical analysis to the four zones that will be classified as Indicated (DTZ, Endo, DTZ-UP and #4 Lode). Moreover, only the four major elements will be processed geostatistically (Sn, In, Zn, As). The remaining four zones (#1-3 Tin Lode, #5 Lode, W-Mo and N- Adit) will be estimated by the Inverse Distance interpolation method. Likewise, in the 4 zones treated geostatistically, the remaining 5 elements (WO3, MoS2, Cu, Bi and Pb) will be estimated by the Inverse Distance interpolation method.

Watts, Griffis and McOuat (2009) summarize with some detail the variogram analysis of the four indicated zones with individual variograms for the four elements within the four zones undergoing Kriging.

17.8 Block Model and Estimation Parameters

17.8.1 Block Model Geometry

The mineral resources of the North Zone are estimated using a block modeling methodology. In this method, the deposit is covered by an array of regular blocks and the blocks falling inside the mineralized zones are estimated. Table 17-9 presents the block grid parameters.

Table 17-9: Block Model Geometry

East North Elevation Grid origin 15200 13385 825 Block size 5m 5m 5m Minimum coordinate 15200 13385 825 Maximum coordinate 15700 13990 1350 Number of blocks 101 122 106

The coordinates mentioned above are those of the block centroids. The block model origin is the centroid of block (1,1,1). This same grid is applied to all the mineralized zones. The individual blocks are assigned a mineralized zone if the block centroid falls inside it. The blocks are either 100% inside or 100 %outside a mineralized envelope, no partial or percent blocks are used.

17.8.2 Estimation Parameters

As mentioned in the sections above, 4 mineralized zones (DTZ, Endo, DTZ-UP and 4-Lode) were estimated using the kriging interpolation method and the other 4 (#1-3 Tin Lode, #5 Lode, Wo-Mo and N-Adit) were estimated using Inverse Distance interpolation. In the four zones treated geostatistically, only the 4 major elements were kriged (Sn, In, Zn and As) while the other elements were estimated with Inverse distance interpolation.

In all cases, a unique search ellipse, in fact a sphere, of 50 metre radius was used. The blocks were estimated using a maximum of 10 composites, a minimum of 1 composite and a limit of 3 composites from a single hole. Moreover, an octant search methodology was used applying a maximum of 5 composite per octant.

For the geostatistical models, the variograms modeled in each of the 4 zones and for the 4 major elements were used. In the conventional models, the Inverse distance model was used and two alternate models, one with the nearest neighbour method and one with Inverse Square distance were done for comparison purposes.

Each zone was interpolated using only the composites belonging to the same zone.

17.8.3 Specific Gravity

A constant specific gravity of 2.7 is used to convert in-situ volumes into tonnes. The last measurements on a selection of core by the wax immersion method were done in 1985. Specific gravities ranged from 2.29 to 3.25 with an average of 2.70.

17.8.4 Resource Classification

WGM elected to apply classification globally in each zone. The drilling density justifies classifying the zones as indicated. However, since Indium is an important contributor to the mineral resource and it is part of the tin equivalent function on which cut-offs are applied, it was decided classify as inferred the zones in which the quantity of indium assays was considered low. In fact, only approximately 29% of the drill hole samples were assayed for Indium. The remaining samples were assigned In values using a regression function based on the correlation between Zn and In. However, of all the samples available in the database, 10,360 are located inside one of the 8

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 17-17 estimated zones and of that number 3,942 have assayed Indium (38%). Table 17-10 presents the proportion of assayed indium values based on the number of samples present in each zone.

Table 17-10: Proportion of Samples Assayed for Indium per Zone

Percentage Zone Nb of In assays No. of Assays in the Zone of Indium Assays in Zone DTZ 1197 1456 82.21% DTZ_UP 240 347 69.16% 4_Lode 321 511 62.82% 1_3_Tin_Lode 204 3726 5.48% 5_Lode 287 646 44.43% N_Adit 516 776 66.49%

The sub-zones, DTZ, #4 Lode and DTZ-UP were classified as Indicated and the zones #1-3 Tin Lode, #5 Lode and N-Adit were classified as inferred. Regarding N-Adit, the decision to classify it as inferred is principally based on the fact that the zone is fragmented in many isolated pods making the confidence level of the geological interpretation lower than the other zones.

17.9 Mineral Resources Estimate Statement

The North Zone deposit contains several elements of probable or possible economic value. The mineral resources presented in this study are based on tin and indium only. The resources are estimated based on the following tin equivalent function:

Sn Eq. = Sn % + 41.67 In %

Based upon a tin price of US$12/kg and an indium price of US$500/kg

For resource reporting purposes, a cut-off of 0.25% Sn Eq. is used. Based on the above prices, one in-situ tonne at 0.25% Sn Eq. is worth US$30. No metallurgical recoveries are taken into account in the function.

The mineral resources presented below are the strict accumulation of in-situ block tonnages above the set cut-off grades. No dilution or other factor is applied.

17.9.1 Deep Tin

The Deep Tin ("DTZ") Sub-Zone is one that is partially estimated by kriging (Kriged). The Table 17-11 summarizes the results. The Kriged results for Sn, In, Zn and As and the Inverse Distance ("ID1") results for WO3, MoS2, Cu, Bi and Pb are the retained results for the study. The Inverse Square Distance ("ID2") and Nearest Neighbour ("NNB") results are presented for comparison purposes. Regarding indium, the retained results here are those of the capped In. For comparison purposes, the uncapped In results are also presented.

Table 17-11: Indicated Mineral Resources of the Deep Tin Zone

TONNAGE g/t In MODEL %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [4] [1] 3 2 Kriged 5,006,000 0.39 100.95 95.15 0.86 1.25 NC NC NC NC NC ID1 5,007,000 0.39 100.70 94.95 0.87 1.26 0.08 0.06 0.14 0.08 0.03 ID2 4,973,000 0.39 101.86 95.99 0.88 1.25 0.08 0.06 0.14 0.08 0.03 NNB 3,230,000 0.55 145.62 138.30 1.26 1.31 0.09 0.06 0.19 0.09 0.05

Table Notes: [1] Capped indium grade. [2] Shaded cells with values in bold are those of the retained mineral resource. [3] Indicated mineral resources based on Sn equivalent cut-off grade of 0.25%. [4] Mineral resources that are not mineral reserves do not have demonstrated economic viability. NC = not calculated in the Kriged model.

We analyzed the sensitivity of the resources to varying Sn Eq. cut-off levels. Table 17-12 presents the mineral resources above selected cut-off values. The tonnage and grades above the 0.7% Sn Eq. cut-off (shown in bold) provides an estimate of the amount of high grade mineralization within the sub-zones.

Table 17-12: Sensitivity of the Indicated Deep Tin Zone Resource to Variable Sn Equivalent Cut-Off Grade

CUT-OFF TONNAGE g/t In GRADE %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 (% Sn Eq.) 0 5,987,000 0.34 86.97 82.12 0.75 1.19 0.08 0.06 0.12 0.08 0.03 0.20 5,409,000 0.37 95.00 89.64 0.81 1.23 0.08 0.06 0.13 0.08 0.03 0.25 5,006,000 0.39 100.95 95.15 0.86 1.25 0.08 0.06 0.14 0.08 0.03 0.30 4,615,000 0.40 107.34 101.05 0.90 1.27 0.08 0.06 0.15 0.08 0.04 0.35 4,185,000 0.43 115.32 108.39 0.95 1.30 0.08 0.06 0.16 0.08 0.04 0.40 3,749,000 0.45 124.39 116.65 1.01 1.32 0.08 0.05 0.17 0.08 0.04 0.50 3,093,000 0.49 140.24 130.90 1.11 1.37 0.09 0.05 0.19 0.09 0.04 0.60 2,537,000 0.54 157.18 145.96 1.22 1.42 0.09 0.05 0.21 0.09 0.04 0.70 2,090,000 0.58 174.30 161.00 1.32 1.46 0.10 0.05 0.23 0.09 0.04

Table Notes: [1] Capped indium grade. [2] Shaded cells with values in bold are those of the retained mineral resource. [3] Mineral resources that are not mineral reserves do not have demonstrated economic viability.

17.9.2 Upper Deep Tin

The Upper Deep Tin ("DTZ-UP") Sub-Zone is one that is partially estimated by kriging (Kriged). Table 17-13 summarizes the results. The Kriged results for Sn, In, Zn and As and the Inverse

Distance ("ID1") results for WO3, MoS2, Cu, Bi and Pb are the retained results for the study. The Inverse Square Distance ("ID2") and Nearest Neighbour ("NNB") results are presented for comparison purposes. Regarding indium, the retained results are those of the capped In. Again, for comparison purposes the uncapped In results are presented.

Table 17-13: Indicated Mineral Resources of the Upper Deep Tin Zone

TONNAGE g/t In MODEL %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [4] [1] 3 2 Kriged 838,350 0.22 102.84 94.92 1.36 0.76 NC NC NC NC NC ID1 828,900 0.21 102.91 96.17 1.37 0.77 0.08 0.06 0.07 0.05 0.02 ID2 796,838 0.22 106.30 99.69 1.42 0.78 0.08 0.06 0.07 0.05 0.02 NNB 525,488 0.34 160.70 153.58 2.03 0.93 0.09 0.06 0.12 0.05 0.03

We analyzed the sensitivity of the resources to varying Sn Eq. cut-off levels. Table 17-14 presents the mineral resources above selected cut-off values.

Table 17-14: Sensitivity of the Indicated Upper Deep Tin Zone Resources to Tin Equivalent Cut-Off Grade

CUT-OFF TONNAGE g/t In GRADE %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 (% Sn Eq.) 0 1,098,000 0.18 84.79 78.74 1.16 0.70 0.08 0.06 0.06 0.05 0.02 0.20 951,000 0.20 94.75 87.77 1.28 0.73 0.08 0.06 0.07 0.05 0.02 0.25 838,000 0.22 102.84 94.92 1.36 0.76 0.08 0.06 0.07 0.05 0.02 0.30 746,000 0.24 109.83 100.93 1.44 0.79 0.08 0.06 0.08 0.05 0.02 0.35 638,000 0.26 118.84 108.44 1.55 0.84 0.09 0.06 0.09 0.05 0.02 0.40 571,000 0.28 125.03 113.42 1.62 0.86 0.09 0.06 0.09 0.05 0.02 0.50 465,000 0.31 136.67 122.45 1.73 0.90 0.09 0.06 0.10 0.05 0.02 0.60 356,000 0.35 150.96 132.62 1.86 0.93 0.08 0.06 0.11 0.05 0.02 0.70 267,000 0.39 167.86 144.12 2.00 0.93 0.08 0.06 0.12 0.05 0.02

Table Notes: [1] Capped indium grade. [2] Shaded cells with values in bold are those of the retained mineral resources. [3] Mineral resources that are not mineral reserves do not have demonstrated economic viability.

17.9.3 #5 Tin Lode

The #5 Lode Sub-Zone is one that is totally estimated by Inverse Distance interpolation. Table

17-15 summarizes the results. The Inverse Distance ("ID1") results for Sn, In, Zn, As, WO3,

MoS2, Cu, Bi and Pb are the retained results for the study. The Inverse Square Distance ("ID2") and Nearest Neighbour ("NNB") results are presented for comparison purposes. Regarding indium, the retained results are those of the capped In. Again, for comparison purposes the uncapped In results are presented.

Table 17-15: Inferred Mineral Resources of the #5 Tin Lode

TONNAGE g/t In MODEL %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [4] [1] 3 2 Kriged NC NC NC NC NC NC NC NC NC NC NC ID1 1,267,000 0.15 115.37 111.28 1.50 0.70 0.07 0.04 0.08 0.03 0.04 ID2 1,241,000 0.16 118.79 114.86 1.51 0.72 0.07 0.04 0.08 0.03 0.04 NNB 841,000 0.31 172.03 169.78 2.18 1.04 0.12 0.03 0.14 0.03 0.10

Table Notes: [1] Capped indium grade. [2] Shaded cells with values in bold are those of the retained mineral resource. [3] Inferred mineral resources based on Sn equivalent cut-off grade of 0.25%. [4] Mineral resources that are not mineral reserves do not have demonstrated economic viability. NC = not calculated in the Kriged model.

We analyzed the sensitivity of the resources to varying Sn Eq. cut-off levels. Table 17-16 presents the mineral resources above selected cut-off values.

Table 17-16: Sensitivity of the Inferred #5 Tin Lode Resources to Tin Equivalent Cut-Off Grade

CUT-OFF TONNAGE g/t In GRADE %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 (% Sn Eq.) 0.00 2,475,000 0.10 72.17 70.07 1.01 0.55 0.06 0.04 0.06 0.03 0.05 0.20 1,577,000 0.13 100.13 96.84 1.33 0.66 0.07 0.04 0.07 0.03 0.05 0.25 1,267,000 0.15 115.37 111.28 1.50 0.70 0.07 0.04 0.08 0.03 0.04 0.30 1,037,000 0.17 130.40 125.39 1.66 0.74 0.07 0.04 0.08 0.03 0.04 0.35 891,000 0.18 142.33 136.51 1.78 0.78 0.07 0.04 0.09 0.03 0.04 0.40 791,000 0.19 151.45 144.91 1.87 0.82 0.07 0.04 0.09 0.03 0.04 0.50 618,000 0.21 172.15 163.87 2.07 0.89 0.07 0.04 0.10 0.03 0.03 0.60 498,000 0.24 187.94 177.84 2.19 0.97 0.07 0.04 0.10 0.03 0.03 0.70 413,000 0.26 200.71 188.93 2.24 1.02 0.07 0.04 0.11 0.03 0.03

17.9.4 North Adit

The North Adit sub-zone is one that is totally estimated Inverse Distance interpolation. Table

17-17 summarizes the results. The Inverse Distance ("ID1") results for Sn, In, Zn, As, WO3,

Table 17-17: Inferred Mineral Resources of the North Adit Zone

TONNAGE g/t In MODEL %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [4] [1] 3 2 Kriged NC NC NC NC NC NC NC NC NC NC NC ID1 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04 ID2 3,021,000 0.28 64.52 64.52 0.87 1.19 0.09 0.06 0.10 0.07 0.04 NNB 2,124,000 0.39 94.63 94.63 1.19 1.46 0.10 0.05 0.15 0.08 0.06

We analyzed the sensitivity of the resources to varying Sn Eq. cut-off levels. Table 17-18 presents the mineral resources above selected cut-off values. The average In and In capped are the same in the table below since no capping was done in this zone.

Table 17-18: Sensitivity of the Inferred North Adit Zone Resources to Tin Equivalent Cut-Off Grade

CUT-OFF TONNAGE g/t In GRADE %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 (% Sn Eq.) 0.00 4,260,000 0.22 51.26 51.26 0.69 1.05 0.08 0.05 0.08 0.06 0.03 0.20 3,659,000 0.24 56.58 56.58 0.76 1.10 0.08 0.05 0.09 0.07 0.03 0.25 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04 0.30 2,516,000 0.30 67.73 67.73 0.91 1.21 0.09 0.06 0.10 0.08 0.04 0.35 2,035,000 0.34 73.79 73.79 1.00 1.28 0.10 0.06 0.11 0.08 0.05 0.40 1,670,000 0.37 79.63 79.63 1.06 1.33 0.10 0.06 0.12 0.09 0.05 0.50 1,188,000 0.45 87.32 87.32 1.09 1.41 0.10 0.06 0.14 0.10 0.05 0.60 869,000 0.52 93.26 93.26 1.14 1.52 0.11 0.06 0.16 0.11 0.05 0.70 616,000 0.62 94.85 94.85 1.13 1.64 0.11 0.05 0.18 0.12 0.05

17.9.5 #4 (and #6 Tin) Lode

The #4 Tin Lode Sub-Zone (which includes the #6 Tin Lode) was partially estimated by kriging (Kriged). The Inverse Square Distance ("ID2") and Nearest Neighbour ("NNB") results are presented for comparison purposes. Regarding indium, the retained results are those of the capped In. Again for comparison purposes the uncapped Indium results are also presented.

Table 17-19: Indicated Mineral Resources of the #4 Tin Lode

TONNAGE g/t In MODEL %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 Kriged 702,000 0.25 74.13 74.13 1.00 0.19 NC NC NC NC NC ID1 715,000 0.26 75.42 75.42 1.01 0.19 0.01 0.01 0.09 0.00 0.05 ID2 698,000 0.25 75.26 75.26 1.01 0.19 0.01 0.01 0.09 0.00 0.05 NNB 495,000 0.29 94.01 94.01 1.28 0.24 0.01 0.01 0.10 0.00 0.07

Table Notes: [1] Capped indium grade. [2] Indicated mineral resources based on Sn equivalent cut-off grade of 0.25%. [3] Mineral resources that are not mineral reserves do not have demonstrated economic viability. NC = not calculated in the Kriged model.

We analyzed the sensitivity of these resources to varying Sn Eq. cut-off levels. Table 17-20 presents the mineral resources above selected cut-off values. The average In and In capped values are the same in the table below since no capping was done in this zone.

Table 17-20: Sensitivity of the Indicated #4 Tin Lode Resources to Tin Equivalent Grade

CUT-OFF TONNAGE g/t In GRADE %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 (% Sn Eq.) 0 764,000 0.23 70.40 70.40 0.95 0.18 0.01 0.01 0.08 0.00 0.05 0.20 744,000 0.24 71.61 71.61 0.97 0.18 0.01 0.01 0.09 0.00 0.05 0.25 702,000 0.25 74.13 74.13 1.00 0.19 0.01 0.01 0.09 0.00 0.05 0.30 624,000 0.26 79.03 79.03 1.07 0.20 0.01 0.01 0.09 0.00 0.05 0.35 507,000 0.29 87.54 87.54 1.17 0.22 0.01 0.01 0.10 0.00 0.05 0.40 393,000 0.32 98.86 98.86 1.30 0.26 0.01 0.01 0.12 0.01 0.06 0.50 245,000 0.40 122.78 122.78 1.59 0.36 0.02 0.02 0.15 0.01 0.06 0.60 184,000 0.45 138.40 138.40 1.77 0.40 0.02 0.02 0.17 0.01 0.06 0.70 145,000 0.50 151.01 151.01 1.87 0.40 0.03 0.02 0.18 0.01 0.06

17.9.6 #1-3 Tin Lodes

The #1-3 Tin Lodes Sub-Zone is one that is totally estimated Inverse Distance interpolation. Table 17-21 summarizes the results. The Inverse Square Distance ("ID2") and Nearest Neighbour ("NNB") results are presented for comparison purposes. Regarding indium, the retained results are those of the capped In. Again, for comparison purposes the uncapped Indium results are presented.

Table 17-21: Inferred Mineral Resources of the #1 to #3 Tin Lodes

TONNAGE g/t In MODEL %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 Kriged NC NC NC NC NC NC NC NC NC NC NC ID1 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 ID2 2,276,000 0.18 77.79 74.45 1.10 0.26 0.02 0.03 0.09 0.01 0.09 NNB 1,692,000 0.25 111.91 106.60 1.61 0.30 0.03 0.03 0.13 0.01 0.14

Table Notes: [1] Capped indium grade. [2] Inferred mineral resources based on Sn equivalent cut-off grade of 0.25%. [3] Mineral resources that are not mineral reserves do not have demonstrated economic viability. NC = not calculated in the Kriged model.

We analyzed the sensitivity of the resources to varying Sn Eq. cut-off levels. Table 17-22 presents the mineral resources above selected cut-off values.

Table 17-22: Sensitivity of the Inferred #1 to #3 Tin Lode Resources to Tin Equivalent Cut-Off Grade

CUT-OFF TONNAGE g/t In GRADE %Sn g/t In %Zn %As %WO %MoS %Cu %Bi %Pb [3] [1] 3 2 (% Sn Eq.) 0.00 4,722,000 0.11 50.49 48.86 0.70 0.22 0.02 0.03 0.06 0.01 0.07 0.20 2,952,000 0.16 68.13 65.54 0.95 0.25 0.02 0.03 0.08 0.01 0.08 0.25 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 0.30 1,837,000 0.20 86.00 81.96 1.23 0.28 0.02 0.03 0.10 0.01 0.09 0.35 1,524,000 0.22 93.10 88.31 1.34 0.29 0.02 0.03 0.11 0.01 0.10 0.40 1,214,000 0.24 101.31 95.53 1.47 0.29 0.02 0.03 0.12 0.01 0.10 0.50 742,000 0.30 118.35 109.95 1.76 0.31 0.02 0.03 0.15 0.01 0.12 0.60 479,000 0.37 134.66 123.42 2.03 0.32 0.02 0.03 0.18 0.01 0.13 0.70 330,000 0.43 146.78 133.22 2.22 0.29 0.02 0.03 0.21 0.01 0.15

The sensitivity analysis indicates the existence of sizable tonnages of high-grade mineralized material within the delineated resource material of the lode deposits.

17.10 Global Mineral Resources Statement

The global mineral resources are summarized in Table 17-23. The four zones classified as Indicated were estimated using ordinary kriging for the four major elements (Sn, In, Zn and As), the remaining elements were estimated using the Inverse Distance interpolation method. For the four zones classified as Inferred, all elements were estimated using the Inverse Distance interpolation method. The Endogranitic ("Endo") and North W-Mo ("W-Mo") sub zones are not part of the focus of this review, but are included here in this statement taken from the filed 2009 independent NI 43-101 mineral resource estimation by WGM and SGS – Geostat for information purposes.

The mineral resources shown in Table 17-23 are based on a cut-off of 0.25% Sn Eq (Sn% + 41.67 In%) with the exception of the North W-Mo Sub-Zone that is presented both at a cut-off of

0.25% Sn Eq and at a cut-off of 0.30% WO3 Eq (WO3 + 1.5 MoS2) similar as with the reported NI 43-101 resource estimation for the Fire Tower Zone (Watts, Griffis and McOuat 2008).

Table 17-23: Global Classified Mineral Resources per Zone

Tonnage %Sn g/t In In %Zn %As %WO %MoS %Cu %Bi %Pb [1] 3 2 DTZ Indicated 5,006,000 0.39 100.95 95.15 0.86 1.25 0.08 0.06 0.14 0.08 0.03

Endo Indicated 4,336,000 0.55 21.84 20.32 0.28 0.85 0.12 0.06 0.10 0.09 0.08 DTZ- Indicated 838,000 0.22 102.84 94.92 1.36 0.76 0.08 0.06 0.07 0.05 0.02 UP 4 Tin Indicated 702,000 0.25 74.13 74.13 1.00 0.19 0.01 0.01 0.09 0.00 0.05 Lode Total Indicated 10,882,000 0.43 67.84 63.96 0.67 0.98 0.09 0.06 0.11 0.08 0.05

Sn Eq. cog used in all inferred zones 1-3 Tin Inferred 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 Lode 5 Tin Inferred 1,267,000 0.15 115.3 111.2 1.50 0.70 0.07 0.04 0.08 0.03 0.04 Lode W-Mo Inferred 915,000 0.26 54.33 49.75 0.58 1.14 0.25 0.12 0.12 0.10 0.04

N-Adit Inferred 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04

Total Inferred 7,603,000 0.22 74.56 72.32 0.99 0.80 0.08 0.05 0.09 0.05 0.05

WO3 Eq. of 0.3% cog used in W-Mo, Sn Eq. of 0.25% for all others 1-3Tin Inferred 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 Lode 5- Inferred 1,267,000 0.15 115.37 111.28 1.50 0.70 0.07 0.04 0.08 0.03 0.04 Lode W-Mo Inferred 3,279,000 0.10 23.51 21.90 0.27 1.02 0.27 0.16 0.05 0.14 0.02

N-Adit Inferred 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04

Total Inferred 9,967,000 0.18 59.62 57.81 0.79 0.84 0.13 0.08 0.08 0.07 0.04

Table Notes: [1] Mineral resources that are not mineral reserves do not have demonstrated economic viability.

17.11 Definition of High Grade Blocks Within the Deep Tin, Upper Deep Tin, North Adit and Lode Deposits

Within the Deep Tin ("DTZ"), Upper Deep Tin ("DTZ-UP") and North Adit ("N-Adit") deposits there are pods or “crackalation volumes” of enhanced granitic in-situ brecciation which are filled with higher grades of tin, indium and zinc mineralization in comparison to the average grade of the sub-zones. Within the #1 to 6 tin lode deposits are a series of sub-vertically dipping narrow mineralized shoots rich in tin, indium, zinc, and copper. Resource boundaries were re-delineated by Trevor Boyd on NW, W-facing sections and level plans for the North Zone. The boundaries were re-drawn to delineate blocks of high-grade mineralized material for the economic appraisal of a lower-tonnage scenario in the exploitation of these mineral deposits via a proposed new direct access ramp to the DTZ, the already in-place 600 Adit workings plus a number of small surface exposures over the lodes.

The outlines for the mineralized shoots were plotted on cross sections spaced 25 metres apart and boundaries were drawn halfway between drill holes. If no holes existed to limit the mineralization outlines, the boundaries were extended to a maximum of ten metres away from the nearest hole. In general, extensions of the boundaries were made consistent with the trends defined by joining known cut-off boundaries. A minimum intersection width of 2.0 metres and a specific gravity of 2.70 were used for estimating the block tonnages. Indium grades were not capped for the estimation of the blocks.

Two types of high grade blocks were identified consisting of “A” and “B” types of mineralized material. The A-Type blocks consist of tin-indium-zinc primary potential mill feed material defined by a Sn only cut-off grade of 0.30 wt%. Indium grades were not incorporated into the definition of the A Blocks and are expected to be of secondary economic importance for these blocks. Some of the tin mineralization may occur as sulphides as well as oxides. The B-Type blocks consist of potential tin-indium-zinc mill feed delineated by a 0.6 Sn equivalent ("Sn Eq.") cut off which is equal to % Sn + 41.67 x % In as with the WGM global NI 43-101 resource estimation. This mineralization tends to possess lower tin grades in comparison to the A block material. The material is distributed throughout the zones and in some sections occurs as a mineralized halo around A-Type block material.

Indicated resource includes thirty five blocks of A-Type and 19 blocks of B -Type mineralization identified and outlined within the Deep Tin, Upper Deep Tin and #4 Tin Lode sub-zone deposits. Inferred resource includes 11 A-Type and 16 B-Type blocks within the North Adit Zone and #5 Tin Lode sub-zones. These delineated blocks are distributed from the surface to a maximum depth of 250 metres (990 Level) within the North Zone. A number of high grade blocks outlined continue at depth below the 990 Level, but were truncated at that level for the purposes of this assessment.

In addition, 12 blocks of A-Type and 4 blocks of B -Type mineralization were identified within the inferred resource of the #1-3 Tin Lode sub-zone. These blocks are distributed between the surface to a maximum depth of 80 metres (20 metres below the 600 Adit workings) also within the North Zone. The grades and tonnages of the blocks are summarized as follows.

17.12 Proposed Estimations of Blocks

The estimated in-situ undiluted tonnages and metal compositions of the 97 A- and B-Type Blocks are listed in Table 17-24.

Table 17-24: A and B Type Blocks Estimate

NO. TONNAGE SUB-ZONE %Sn g/t In %Zn %Cu %Pb %As %Bi %WO %Mo BLOCKS [2, 3] 3 INDICATED RESOURCE A-TYPE BLOCKS #4 Tin Lode 2 129,000 0.58 153[1] 1.85 0.19 NA NA NA NA NA DTZ and Upper DTZ 33 1,338,000 0.94 229 1.89 0.27 0.05 1.62 0.09 0.10 BD B-TYPE BLOCKS #4 Tin Lode 3 36,000 0.20 138[1] 1.87 0.14 NA NA NA NA NA DTZ and Upper DTZ 16 391,000 0.25 179 2.12 0.16 0.03 1.31 0.07 0.16 BD Total Indicated 54 1,894,000 0.76 212 1.93 0.24 NA NA NA NA BD INFERRED RESOURCE A-TYPE BLOCKS

#1-3 Tin Lodes 12 168,000 0.79 140[1] 2.45 0.30 NA NA NA NA NA

#5 Tin Lode 2 36,000 1.55 134 2.39 0.25 0.12 4.50 0.04 0.13 BD

North Adit 9 320,000 1.13 32 0.25 0.19 0.04 2.88 0.12 0.14 BD

B-TYPE BLOCKS #1-3 Tin Lodes 4 139,000 0.30 131[1] 2.21 0.16 NA NA NA NA NA #5 Tin Lode 8 172,000 0.29 428 3.80 0.24 0.04 1.59 0.04 0.17 BD North Adit 8 165,000 0.62 145 1.68 0.25 0.08 1.64 0.10 0.09 BD Total Inferred 43 1,000,000 0.74 154 1.82 0.22 NA NA NA NA NA

Table Notes: [1] Estimate [2] Tonnages are rounded. [3] Mineral resources that are not mineral reserves do not have demonstrated economic viability. BD = below detection limit NA = not analysed

Due to the lack of indium analytical coverage for samples within the #1-3 Tin Lode Sub-Zone, the indium grade was estimated from a combination of regression analysis using the aforementioned formula discussed in the inference of indium grades section of this report and within the North Zone NI 43-101 Technical Report completed by WGM plus some direct geochemical analysis.

Due to the paucity of As, Bi, WO3, Mo and Pb analyses completed within the #1 to 4 Tin Lode deposits, no average grades for these elements are estimated, but based upon the few analyses obtained to date they are expected to be comparable to that reported for the Deep Tin, Upper Deep Tin, #5 Tin Lode, and North Adit sub-zones.

The blocks were estimated based upon the interpreted polygon volumes of the blocks and the averaging of the grades for the drill hole intersections which make up the GEMCOM solid model built for each individual block similar to the Nearest Neighbour ("NNB") methodology used by WGM. Figure 17-14 through Figure 17-17 show the distribution of the defined A and B Type Blocks for the sub-zones generated as GEMCOM solid models in relation to the 600 Adit workings, North Zone Decline and the surface of Mount Pleasant.

Figure 17-14: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to #3, #4 (and #6) Tin Lodes in Relation to the 600 Adit Workings (Longitudinal View Looking Southwest)

Figure 17-15: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to #3, #4 (and #6) Tin Lodes in Relation to the 600 Adit Workings (Oblique View Looking Northwest)

In Figure 17-14 and Figure 17-15, A-type blocks are shown in red, B-type blocks in green, 600 Adit workings in blue and yellow represents the surface of the Mount Pleasant Property.

Figure 17-16: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep Tin Zone, Upper Deep Tin Zone, #5 Tin Lode and North Adit Sub-Zones in Relation to the 600 Adit Workings and the North Zone Decline (Longitudinal View Looking West)

Figure 17-17: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep Tin Zone, Upper Deep Tin Zone, #5 Tin Lode and North Adit Sub-Zones in Relation to the 600 Adit Workings and the North Zone Decline (Longitudinal View Looking North) In Figure 17-16 and Figure 17-17, brown represents the A-type blocks in the DTZ, Upper DTZ and #5 Tin Lode; dark blue represents the B-type blocks in the DTZ, Upper DTZ and #5 Tin Lode;

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 17-29 light blue represents the A type blocks in the North Adit sub-zone; green represents the B type blocks in the North Adit sub-zone, red represents the 600 Adit workings, and white represents the North Zone Decline. The purple scale bar represents a distance of 100 metres.

17.13 Conclusions

The summarized estimated size and metal compositions of the 97 blocks for the sub-zones listed in Table 17-24 can used to estimate a tonnage and head grade for the purposes of completing an economic appraisal of the mineralization once an appropriate dilution rate and mining extraction rate are applied.

The arrival at the proposed mining extraction estimate is partially a function of the presence of a halo of mineralization containing significant zinc-indium grades but lower tin values within the wall rock to the blocks. Based upon the Sn-In-Zn-Cu mineralization trends and patterns found in the North Zone, the grade of dilution material in the wall rock is estimated to be 0.5 of the grade of the undiluted blocks with the exception of Sn grade which is interpreted to be 0.25 (0.17%) of the Sn undiluted grade for the purposes of this assessment.

The results for the A-Type blocks for #1-3, #4 & 6 Tin Lodes for the estimation shown in Table 17- 24 compare favourably with previous resource estimations of the Tin Lodes completed during the 1960s. T. Clarke and Associates (1964) reported historical resource estimates for mineralized blocks from the vicinity of the 600 Adit workings to the surface as shown in Table 17-25.

Table 17-25: Summary of Clarke and Associates 1964 Resource estimate for Mineralized Blocks in the Vicinity of the 600 Adit Workings

SUB-ZONE TONNAGE TIN GRADE (%Sn) ZINC GRADE (% Zn) Tin Lodes #1 to #3 178,470 0.60 1.95 Tin Lodes #4 and #6 45,900 0.55 0.65 TOTAL 224,370 0.58 1.74

The sum of the A and B-Type Blocks also compares favourably with the 0.7 Sn Eq. cut-off grades derived from the sensitivity analysis for the NI-43-101 estimates for the sub-zones as completed by WGM and aforementioned presented in this report. In conclusion, these block estimations can be used for a preliminary assessment level economic analysis once the dilution and recovery factors are applied.

SECTION 18.0 MINING OPERATIONS

18.1 Terms of Reference

Hara Mining Enterprises Inc. was initially retained by Adex Mining Inc. to prepare a conceptual mine plan for the North Zone Preliminary Assessment for mining tin-indium-zinc ore from the 600 Adit at 250 tonnes per day (“tpd”). The 600 Adit is an existing access point that was used during the historical operation of the Mount Pleasant property.

Subsequently, Adex’s focus shifted from 250 to 850 tonnes per day and from the 600 Adit to the Deep Tin Zone, Upper Deep Tin Zone, North Adit, and #1 to #6 Tin Lodes. This report focuses on the conceptual mine plan for extracting 850 tonnes of mineral resource per day from the Deep Tin Zone, Upper Deep Tin Zone, North Adit, and #1 to #6 Tin Lodes. All of the above geological zones are located within the existing perimeter of the Mount Pleasant property.

The Mount Pleasant property is located in the province of New Brunswick approximately 80 km south of Fredericton.

A Hara Mining Enterprises Inc. representative visited the property on several occasions in the past and most recently on June 16th, 2009, to gather information for the current study.

Currently, the major assets and facilities associated with the Project are:

 North Zone Resource Estimate (NI 43-101 Compliant, see Section 17.0).  Fire Tower Zone Resource Estimate (NI 43-101 Compliant).  The physical plant site including mine ramps and underground excavations, coarse ore storage bins, buildings, tailings pond, large processing facilities building, workshops, warehouses, administration buildings, and dry facilities remain in good condition.  Facilities providing basic infrastructure to the mine include an electric power feed line, water treatment and supply and sewage treatment.  Underground infrastructure includes flooded mine ramps, coarse ore storage bins, crusher station, ventilation raises, and inactive underground maintenance shop.  Very good access by paved highway and short gravel road to the mine site.

18.2 Sources of Information

A site visit was carried out by A. Hara, P. Eng. Principal of Hara Mining Enterprises Inc. on June 16th, 2009.

Discussions were held with the following personnel:

 Mr. Dean Thibault, P. Eng., Thibault & Associates Inc.  Mr. Gustaaf Kooiman, Consulting Geologist to Adex Mining Inc.  Mr. Trevor Boyd, Ph. D, P. Geo., Consulting Geologist to Adex Mining Inc.

Various documents, drawings, reports, studies and field notes collected during the site visit were used in the preparation of this report.

18.3 Reliance on Other Experts

This report section has been prepared by Hara Mining Enterprises Inc., for Adex Mining Inc. The information, conclusions, opinions, and estimates contained herein are based on:

 Information available to Hara Mining Enterprises Inc. while preparing this report section.  Assumptions, conditions, and qualifications as set forth in this report section.  Data, reports, and other information supplied by Adex Mining Inc. and other third party sources.

For the purpose of this report section, Hara Mining Enterprises Inc. has relied on ownership information provided by Adex Mining Inc. Hara Mining Enterprises Inc. has not researched property title or mineral rights for the project and expresses no legal opinion as to the ownership status of the property.

18.4 Mining Tin-Indium-Zinc Ore from the Deep Tin Zone (“DTZ”) Ore Lodes and Lenses

18.4.1 General

Hara Mining Enterprises Inc. prepared a Preliminary Assessment on mining Tin-Indium ore from the DTZ (Deep Tin-Indium Zone) being part of the Mount Pleasant Underground Mining Complex located 80 kilometres south of Fredericton in the province of New Brunswick. The study evaluated an underground mining scenario based on an 850 tonne of ore per day production rate from a number of ore lodes and lenses closely grouped in the DTZ and its surroundings.

A number of mining and organizational scenarios was investigated for mining the tin-indium-zinc ores at the proposed 850 tpd rate. The final consideration was given to evaluation of an open stope mining concept with the use of mechanized trackless equipment and employing a multi- skilled workforce.

18.4.2 Mining Considerations

A number of the ore lodes and lenses lie close to the surface with a few protruding to the surface. Series of these lodes and lenses stretch from near surface down to a depth of approximately 250 metres. In horizontal plane the lodes and lenses occupy an area measuring approximately 300 metres east-west and 400 metres north-south and dip predominantly towards the south (see Figure 17-16 and Figure 17-17).

It appears that a majority of the lodes and lenses can be mined as single independent stopes being vertically interconnected via sublevel cross-cuts. The stopes would predominantly be mined top down while maintaining temporary ore rib and sill pillars in close proximity to the sublevels. Most of these stopes would be left open after completion of mining. Some of these mined out stopes would be backfilled with waste rock generated from the ongoing mine development works.

Based on a review of historical mining records from the 600 Adit and Fire Tower Zone, the rock condition environment is expected to be good.

Stopes would be shaped irregularly based on the ore grade contacts. A relatively small number of rib and sill pillars would be left in situ for stability of the mined lodes and lenses. These pillars, in most cases, would consist of lower grade material.

An overall mining extraction rate for the selected mining method and configuration of the lodes and lenses can be expected to exceed 85%. For the study an 85% mining extraction rate was selected.

The study assumed the mining schedule to be based on 261 operating days a year with the mining crew working three 8 hour shifts per day 5 days per week. Mine physical data are summarized in Table 18-1 for the 850 tpd mining option.

Table 18-1: Mine Physical Data for 850 tonne/day Operation

ITEM DESCRIPTION UNITS AVERAGE VALUE PER YEAR Mine operating days days 261 Mine scheduled shift length hours 8 Shifts per working day shifts 3 Working days per week days 5 Effective shift length hours 6 Development (ore) tonne/year 28,188 Development (waste) tonne/year 98,602 Ore production per shift tonne 360 Ore production per working day tonne 1,080 Ore production per month tonne 23,490 Stoping production per year tonne 253,692 Ore production per year tonne 281,880 Production drilling meters/year 31,712 Underground LHD truck haulage per year tonne 380,482

18.4.3 Mining Method

An open stope concept with temporary rib pillars with no backfill is recommended as a primary mining method for the tin-indium-zinc deposits of the Deep Tin Zone and Upper Deep Tin Zone. The stope sizes and mining limits would be based on the resource block model interpretation.

Stope sizes would vary widely and would produce from several hundred tonnes to a few ten thousand tonnes of ore and would be relatively narrow. Each stope would have an extraction drift,

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 18-4 which would be positioned in parallel to the undercut drift with a series of draw points connected with the undercut.

In a typical stope, rows of 62.5 mm diameter production drill holes arranged in fans would be up drilled from the undercut. On a sublevel above rows of 87.5 mm diameter holes would be down drilled to follow the configuration of the stope walls and would account for the bulk of production volume for a given stope. The undercut production holes would be charged with explosives and blasted in vertical slices starting from the end of the undercut and sequentially progressed towards the limit of the stope. In a delayed sequence, the down holes drilled on the sublevel above would be charged with explosives and progressively blasted to follow the stope undercut advancement.

Only partial blast swell would be removed from the stope to provide free space for each consecutive blast. The broken ore in the stope would provide temporary passive support for the stope walls in order to prevent wall slough and to control dilution during the entire stope cycle. At the end of the mining cycle each stope would be completely mucked out and left empty. Some of the empty stopes would be filled with waste rock generated from ongoing development works in the mine.

The maximum height of the stopes, in a single lift from sublevel to sublevel, would be approximately from 15 to 20 metres. Final stope heights in some cases would triple the single lift.

Loading of the broken ore onto the trucks would be done with LHD machines. The trucks would haul the ore via the decline up to the surface to the ore storage pile.

18.4.4 Mine Development

The mine would be accessed from the surface, by a decline driven at 17% gradient from the 1165 metre level down to 985 metre level.

The ore lodes and lenses would be accessed by a series of sublevels driven off the decline and spaced vertically at approximately 20 metre intervals. From the sublevels a number of cross-cuts would be driven on 30 metres to 40 metres horizontal spacing to provide access to the various ore lodes and lenses. The cross-cut spacing would be governed by the geometry and configuration of the ore lodes and lenses.

Approximately 500 metres of wall and back slash would be done in the 600 Adit to provide second egress from the mine and also to provide adequately sized return airway for the mine ventilation requirements.

Concurrently with the decline and cross-cuts development progress, an exhaust air ventilation raise would be excavated in lifts. Each lift would be connected with the end of the cross-cut assigned as an exhaust airway from a particular sublevel.

When the decline reaches the 1025 sublevel, a pump station would be excavated and equipped with pumps. Mine water below the 1025 sublevel would be handled by a series of local submersible pumps and pumped up to the pump station.

A maintenance shop would be excavated and equipped on the 1045 sublevel above the pump station.

The subsequent stope development would be carried out in the form of under and over cuts from different points of the cross-cuts. This would be done progressively following the ongoing mine development.

18.4.5 Manpower

The manpower levels were estimated from the first principle rule. Some of the employees would be required to posses multiple skills in order to switch between certain jobs. For example; a drift miner should be able to drill production holes or to drive a conventional raise. The LHD operator would also drive the ore hauling truck. The surface truck driver would also be operating the front end loader. Therefore, the surface ore stock pile handling and ore transportation to the processing facility would be manned by only one person. Safety and training for the mine and mill would be handled by one person.

Total mine manpower requirements are estimated to include 51 full time positions including labour, engineering, geology and supervision. See Table 18-2 for details.

Table 18-2: Manpower Requirements for 850 tonne/day Ore Production from DTZ and Upper DTZ

ITEM NO. JOB TITLE NO. PERSONNEL PER SHIFT TOTAL PERSONNEL 1 Development miner 3 9 2 Production driller 2 6 3 LHD truck operator 2 6 4 Blaster [1] 1 5 Helper 2 6 6 Maintenance department [1] 4 7 Electrician [1] 2 8 Construction and service crew 2 9 Production supervision 1 3 10 Maintenance supervision 1 11 Safety and training [2] 0.5 12 Surface support 1 3 13 Surface truck loader operator 1 3 14 Engineering and surveying 2 15 Geology and grade control 1 16 Mine superintendent / chief engineer 1 17 Mine clerk 1 TOTAL 12 51.5

Table Notes: [1] Day shift only. [2] Shared position between mine and mill.

18.4.6 Equipment

Diesel powered trackless equipment was selected for the mine development and production functions for the evaluated tin-indium-zinc mining scenario. The number of equipment pieces needed to operate the mine was estimated based on manufacturer productivity charts and compared with other similar operations to the tin-indium-zinc proposed mining scenario.

The study assumes the mine would rent a new fleet of diesel equipment from a selected manufacturer. The mobile equipment fleet requirements are listed in Table 18-3 along with their associated new equipment purchase cost. Where the same equipment is available for rental, unit monthly and total annual rental costs for mobile equipment are listed in Table 18-4.

Table 18-3: Summary of Mobile Equipment Purchase Cost Estimates for 850 tonne/day Ore Production

TOTAL COST ITEM NO. EQUIPMENT TYPE NO. REQUIRED UNIT COST (CDN$) (CDN$) 1 Development jumbo 2 $750,000 $1,500,000 2 Longhole production drill 2 $450,000 $900,000 3 3.5 cubic yard LHD truck 2 $450,000 $900,000 4 5.0 cubic yard LHD truck 1 $650,000 $650,000 5 35 tonne truck 1 $650,000 $650,000 6 22 tonne truck 1 $400,000 $400,000 7 Scissor lift 2 $200,000 $400,000 8 Fuel-lube truck 1 $250,000 $250,000 9 Fork lift 1 $100,000 $100,000 10 Diamond drill 1 $150,000 $150,000 11 Auxiliary vehicles and man carriers 4 $45,000 $180,000 12 Surface truck 1 $300,000 $300,000 13 Front-end loader 1 $350,000 $350,000 TOTAL MOBILE EQUIPMENT 20 $6,730,000

Table 18-4: Summary of Mobile Equipment Rental Cost Estimates for 850 tonne/day Ore Production

UNIT RENTAL COST ANNUAL RENTAL ITEM NO. EQUIPMENT TYPE NO. REQUIRED (CDN$/MONTH / UNIT) COST (CDN$/YR) 1 Development jumbo 2 $15,625 $375,000 2 Longhole production drill 2 $9,375 $225,000 3 3.5 cubic yard LHD truck 2 $9,375 $225,000 4 5.0 cubic yard LHD truck 1 $13,542 $162,500 5 35 tonne truck 1 $13,542 $162,500 6 22 tonne truck 1 $8,333 $100,000 7 Scissor lift 2 $4,167 $100,000 8 Fuel-lube truck 1 $5,208 $62,500 9 Surface truck 1 $6,250 $75,000 10 Front-end loader 1 $7,292 $87,500 TOTAL MOBILE EQUIPMENT 14 $1,578,000 TOTAL PER TONNE ORE MINED $5.59

The cost of equipment rental was estimated based on quotes provided by one of the potential manufacturers and applying a 5% interest rate to the monthly payments.

18.4.7 Mine Capital Costs

Table 18-5: Pre-production Capital Excavations Works for 850 tonne/day Ore Production

ITEM NO. UNITS UNIT COST TOTAL COST ITEM DESCRIPTION UNITS NO. REQUIRED (CDN$) (CDN$) Mobilization, demobilization & energy costs 1 LS 1 $679,500 $679,500 (Contractor) Decline including re-muck and safety bays 2 metres 1,150 $4,200 $4,830,000 (Contractor) 3 Lateral development in waste (Owner's crew) metres 1,500 $2,012 $3,017,632 4 Vertical development, vent raises (Contractor) metres 200 $2,600 $520,000 5 Vent raise access drifts (Owner's crew) metres 100 $2,012 $201,175 6 Slash (600 Adit) metres 500 $1,006 $502,939 7 Refuge station cut-outs set 1 $10,000 $10,000 8 Underground pump station & settling sumps set 1 $40,000 $40,000 9 Explosives magazines set 1 $20,118 $20,118 10 Small maintenance shop set 1 $160,940 $160,940 11 Magazines & tool crib set 1 $60,353 $60,353 12 Miscellaneous excavations LS 1 $100,000 $100,000 TOTAL $10,142,657

The decline and return air ventilation raise would be excavated by a contractor. The estimated cost of driving the decline and the ventilation raise is based on a written quote obtained from a mining contractor. All other associated mine development works would be performed by the Adex crews. See Table 18-6 for details.

Table 18-6: Pre-production Capital Costs Summary for 850 tonne/day Ore Production

ITEM NO. ITEM DESCRIPTION COST (CDN$) 1 Mobilization $200,000 2 Excavations $10,142,657 3 Mobile Equipment [1] $430,000 4 Main ventilation and air heating $350,000 5 Electrical cable work and installation $500,000 6 Install and equip electrical substations $250,000 7 Equip mine pumping station $350,000 8 Local ventilation $200,000 9 Equip refuge stations $80,000

ITEM NO. ITEM DESCRIPTION COST (CDN$) 10 Equip powder magazines $40,000 11 Install communication system $70,000 12 Equip mobile equipment maintenance shop $500,000 13 Portal / ore waste load-out station & road upgrade $80,000 14 Mine rescue and safety supplies $150,000 15 Initial inventory of materials & spare parts $141,400 16 Computers & engineering / geology support equipment $60,000 17 Mine water discharge settling pond $70,000 18 Miscellaneous $500,000 SUBTOTAL $14,114,057 CONTINGENCY (15%) $2,117,109 TOTAL $16,231,166

Table Notes: [1] Capital cost for mobile equipment based on purchase of fork lift, diamond drill, auxiliary vehicles & man carriers from Table 18-3 only. All other mobile equipment will be rented.

18.4.8 Mine Operating Costs

The manpower, equipment rental and maintenance constitute the majority of the operating costs. The manpower cost, at CDN$13.36/tonne, is the single highest operating cost of the project. The next highest is the equipment rental cost at CDN$5.59/tonne, followed by equipment maintenance at CDN$3.55/tonne.

Table 18-7: Operating Cost Summary for 850 tonne/day Ore Production

ANNUAL COST COST PER TONNE PERCENTAGE OF OPERATING COST (CDN$) (CDN$) TOTAL (%) Manpower $3,767,188 $13.36 44.50% Diesel fuel and lubricants $781,865 $2.77 9.23% Propane $208,860 $0.74 2.47% Equipment rental $1,575,000 $5.59 18.62% Equipment maintenance $1,001,073 $3.55 11.82% Materials and supplies $645,022 $2.39 7.96% Electric energy & ventilation $456,827 $1.62 5.40% TOTAL OPERATING COST $8,463,150 $30.02 100.00%

Certain costs, such as supply of parts and materials were estimated by applying data and information from other active underground mining operations in Canada. Table 18-8 to Table 18-12 show the mine operating cost breakdown in more detail.

Table 18-8: Summary of Manpower Cost Estimates for 850 tonne/day Ore Production Rate

DEPARTMENT / JOB NO. SALARY / WAGES ANNUAL COST INCL. FB FUNCTION EMPLOYEES MINE SUPERVISION Superintendent 1 $120,000/yr $150,000 Chief mechanic 1 $80,000/yr $100,000 Foreman 3 $75,000/yr $281,250 Safety & training [1] 0.5 $37,500/yr $23,438 Mine clerk 1 $45,000/yr $56,250 SUBTOTAL 6.5 $610,938 DEVELOPMENT Miner 9 $32.00/hour $720,000 SUBTOTAL 9 $720,000 PRODUCTION LHD truck operator 6 $27.50/hr $412,500 Production drill operator 6 $27.50/hr $412,500 Blaster 1 $28.50/hr $71,250 Helper 6 $22.50/hr $337,500 SUBTOTAL 19 $1,233,750 MAINTENANCE Mechanics 4 $31.50/hr $315,000 Electricians 2 $31.50/hr $157,500 SUBTOTAL 6 $472,500 MINE SERVICES Construction crew 2 $26.00/hr $130,000 SUBTOTAL 2 $130,000 SURFACE SUPPORT Surface support 3 $22.50/hr $168,750 Truck / loader operator 3 $22.50/hr $168,750 SUBTOTAL 6 $337,500 TECHNICAL SERVICES Surveyor / technician 2 $60,000/yr $150,000 Senior geologist 1 $90,000/yr $112,500 SUBTOTAL 3 $262,500 TOTAL 51.5 $3,767,188 TOTAL PER TONNE ORE MINED $13.36

Table Notes: [1] Shared position between mine and mill.

Table 18-9: Summary of Equipment Maintenance Costs

ANNUAL COST PER TOTAL DEPARTMENT / UNIT NO. UNITS OPERATING OPERATING ANNUAL COST DESCRIPTION REQUIRED HOURS HOUR ($CDN/HR) (CDN$) PERSONNEL TRANSPORTATION SUPPORT Tractors / jeeps 4 650 $10.00/hr $26,000 Scissor lift 2 800 $15.00/hr $24,000 DEVELOPMENT 2-boom jumbo 2 1,566 $45.00/hr $140,940 3.5 cubic yard LHD truck 2 2,153 $35.00/hr $150,728 22-tonne truck 1 2,500 $30.00 $75,000 PRODUCTION 5.0 cubic yard LHD truck 1 2,153 $50.00/hr $107,663 Longhole drill 2 3,000 $35.00/hr $210,000 35-tonne truck 1 3,500 $40.00/hr $140,000 MISCELLANEOUS Diamond drill 1 800 $15.00/hr $12,000 Fuel and lube truck 1 1,000 $20.00/hr $20,000 SURFACE ORE & WASTE TRANSPORT Truck 1 3,445 $20.00/hr $68,904 Front-end loader 1 1,034 $25.00/hr $25,839 TOTAL 19 $1,001,074 TOTAL PER TONNE ORE MINED $3.55

Table 18-10: Summary of Diesel Fuel Cost

NO. UNITS FUEL CONSUMPTION TOTAL FUEL CONSUMPTION EQUIPMENT TYPE REQUIRED (LITRES/DAY) (LITRES/DAY) Development jumbo 2 20 40 Production drill 2 10 20 5.0 cubic yard LHD truck 1 450 450 3.5 cubic yard LHD truck 2 350 700 35-tonne truck 1 600 660 22-tonne truck 1 350 350 Scissor lift 2 40 80 Fork lift 1 30 30 Small vehicles 4 15 60 Surface truck 1 600 600 Front-end loader 1 180 180 Miscellaneous @ 5% LS 159 TOTAL LITRES PER OPERATING DAY 3,329 TOTAL ANNUAL OPERATING COST [1] $781,865 TOTAL COST PER TONNE ORE MINED $2.77

Table Notes: [1] Diesel fuel cost based on CDN$0.90/litre.

Table 18-11: Summary of Electricity Cost for 850 tonne/day Ore Production Rate

POWER ANNUAL POWER INSTALLED ANNUAL COST ITEM DRAWN CONSUMPTION POWER (kW) (CDN$) (kW) (kWh/YR) Main ventilation fans 203 203 1,778,149 $142,252 Auxiliary ventilation fans 149 119 1,045,970 $83,678 Air compressor 75 60 522,985 $41,839 Jumbo drill 112 28 245,149 $19,612 Longhole drill 112 67 588,358 $47,069 Diamond drill 37 15 130,746 $10,460 Small shop / wash bay 22 11 98,060 $7,845 Dewatering pumps 187 112 980,597 $78,448 Auxiliary pumps 45 22 196,119 $15,690 Lighting 11 9 78,448 $6,276 Miscellaneous 7 5 45,761 $3,661 TOTAL ELEC. ENERGY COST [1] 960 652 5,710,343 $456,830 TOTAL ELEC. ENERGY COST PER TONNE $1.62

Table Notes: [1] Electricity cost based on CDN$0.08/kWhr.

Table 18-12: Mine Consumables and Miscellaneous Operating Costs

ITEM NO. ITEM DESCRIPTION ANNUAL COST (CDN$) 1 Rock bolts $86,326 2 Screen $14,799 3 Pipes (150 mm dia.) $19,732 4 Pipes (100 mm dia.) $16,443 5 Pipes (50 mm dia.) $13,154 6 Valves and accessories $3,915 7 Drill steel and drill bits $91,740 8 Timber $6,000 9 Explosives $209,162 10 Engineering / geology supplies $5,400 11 Telephone, fax and computer $6,000 12 Electrical supplies $30,000 13 Maintenance supplies $96,000 14 Cement $6,000 15 Miscellaneous at 10% $60,467 16 Safety supplies $7,200 TOTAL MINE CONSUMABLES & MISCELLANEOUS SUPPLIES $672,337 TOTAL MINE CONSUMABLES & MISCELLANEOUS SUPPLIES COST PER TONNE $2.39

18.4.9 Ventilation

Intake ventilation would be downcast through the 4.0 m x 4.5 m new decline from a fan station located on surface, and connected with the decline via a rigid vent duct. Exhaust air from the sublevels would up cast to surface via the return air vent raise and the 600 Adit.

Local fans furnished with vent ducts would ventilate dead end drifts and other work places. A series of vent regulators and auxiliary fans would assist in distributing air flow throughout the mine. It is estimated that approximately 220,000 cfm of air would be required to maintain proper ventilation for the mine. In case there is a need to introduce more equipment in future approximately 275,000 cfm (including leakage) were allocated for the purpose of the main fan selection. See Table 18-13 showing ventilation volume estimates.

Table 18-13: Summary of Ventilation Air Volumes for 850 tonne/day Ore Production Rate

TOTAL INSTALLED FACTORED MOBILE EQUIPMENT NO. UNITS INSTALLED UTILIZATION HORSEPOWER HORSEPOWER TYPE REQUIRED HORSEPOWER FACTOR (%) (HP) (HP) (HP) Development jumbo 2 140 280 50% 140 Grader [1] 1 140 140 75% 105 3.5 cubic yard LHD truck 2 250 500 100% 500 5.0 cubic yard LHD tuck 1 380 380 100% 380 35-tonne truck 1 275 275 100% 275 22-tonne truck 1 380 380 100% 380 Scissor lift 2 85 170 50% 85 Fuel-lube truck 1 100 100 50% 50 Fork lift 1 175 175 50% 88 Explosives carrier [1] 1 125 125 50% 63 Personnel carrier 4 75 300 50% 150 TOTAL FACTORED HORSEPOWER 2,215 CFM REQUIREMENT BASED ON EQUIPMENT SELECTION 221,500 TOTAL VENTILATION CFM REQUIREMENT INCLUDING LEAKAGE 275,000

Table Notes: [1] Included in ventilation requirement estimate for potential future use.

18.4.10 Project Schedule

The pre-production period is estimated to take approximately 28 weeks before commencement of the production from stopes. See Figure 18-1.

Adex Mining Inc. – Mount Pleasant Tin Indium Mine Scoping Study Number Metres Cross WEEKS Description of of Section or Tonnes Weeks Advance Square m 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 MOBILIZATION TO SITE 2.0

SITE PREPARATION Road Upgrade from Processing Facility to 600 Adit 1.0 4,600 Road Extension from 600 Adit to New Portal 1.0 600 New Portal Site Overburden Removal and Grabbing 2.0 1,500 Level off and Dress Material Lay Down and Buildings Area 0.5 5,000 Level off and Dress Ore Pile Area 0.5 2,500 Level off and Dress Waste Pile Area 0.5 2,500 Erect Surface Infrastructure (Office First-Aid Trailer, Fuel Tanks, etc) 1.0 Erect Switch Gear and Transformer and Connect Electric Power 2.0

PORTAL Groundcondition Portal Face and Area 1.0 Excavate and Groundcondition First 10 metres of Decline Access 1.0 10 18 549 Set up Ventilation and Air Heating for Decline Driving 1.0

DECLINE EXCAVATION Drive Decline and Excavate Safety and Re-Muck Bays 23.0 1,140 18 62,535

EXPLOSIVES MAGAZINE Excavate Powder and Cap Magazine 1.0 10 18 549 Equip Powder and Cap Magazine 0.5

LATERAL DEVELOPMENT 1165 Sublevel Access Drive 2.5 75 18 4,114 1165 Sublevel Drift 6.0 200 18 10,971 1165 Sublevel X-Cuts 12.0 400 18 21,942 1145 Sublevel Access Drive 2.5 75 18 4,114 1145 Sublevel Drift 6.0 200 18 10,971 1145 Sublevel X-Cuts 12.0 400 18 21,942 1,350 74,054

REFUGE STATION Excavate Refuge Station 0.5 10 18 549 Equip Refuge Station 1.0

LATERAL DEVELOPMENT IN ORE 1165 Sublevel Stopes Under and Over Cuts 1.5 75 18 4,114 1145 Sublevel Stopes Under and Over Cuts 1.5 75 18 4,114 150 8,228

600 ADIT SLASH 7 500 8 12,190

PUMP STATION Excavate Pump Station and Settling Chamber 1.0 20 23 1,371 Equip Pump Station 1.0

STOPE DRILLING 4.0

NAINTENANCE SHOP Excavate Maintenance Shop and Tool Crib 3.0 50 23 3,428 Equip Maintenance Shop and Tool Crib 2.0

VERTICAL DEVELOPMENT Ventilation Raise From 985 Level to 1185 Level 200 20 12,342

START OF STOPE PRODUCTION IN THE 28TH WEEK DECLINE 1,160 63,632 TOTAL LATERAL DEVELOPMENT IN WASTE 1,430 79,403 TOTAL LATERAL DEVELOPMENT IN ORE 150 8,228 TOTAL VERTICAL DEVELOPMENT 200 12,342 600 ADIT SLASH 500 12,190 TOTAL WASTE TONNES (INCLUDING 15% OVERBREAK) 167,567

Figure 18-1: DTZ Preproduction Schedule for 850 tonne/day of Ore Production Rate

18.4.11 Production Schedule

The production schedule calls for one quarter of ramp up period to achieve a full monthly target of approximately 23,490 tonnes of ore from stoping, slashes and an ongoing development in ore.

Under this schedule the mine is expected to operate at full targeted production for approximately ten years. See Table 18-14 showing the proposed production schedule.

Table 18-14: Proposed Production Schedule for Extraction of Ore from DTZ and Upper DTZ

FIRST YEAR (RAMP-UP) FULL PRODUCTION ORE SOURCE TOTAL Q1 Q2 Q3 Q4 Years 2 - 9 Year 10

Stope tonnages 43,423 63,423 63,423 63,423 253,692 184,511 2,447,739

Development tonnage 7,047 7,047 7,047 7,047 28,188 5,000 258,692

TOTAL TONNAGES 50,470 70,470 70,470 70,470 281,880 189,511 2,706,431

Tin head grade (wt%) 0.71 0.71 0.71 0.71 0.71 0.71 0.71

Indium head grade (ppm) 183 183 183 183 183 183 183

Zinc head grade (wt%) 1.82 1.82 1.82 1.82 1.82 1.82 1.82

The total tonnage assumed for mining the resources from the DTZ and its associated sub-zones is approximately 2.7 million tonnes of ore at average diluted grades of 0.71% tin, 183 ppm indium and 1.82% zinc. These grades are milling grades and incorporate 10% mining dilution at 0.17% tin, 96 ppm indium and 0.95% zinc grades.

18.5 Waste Rock Handling and Storage

All waste rock generated from the mine’s development works and ongoing development, and not stored underground, will be transported to surface and dumped onto the waste storage pads from where it would be hauled away to the properly prepared waste storage piles.

The debris and sludge from the clean up during the existing workings rehabilitation process will be transported to the surface and disposed of in the assigned locations by the mine operating personnel.

18.6 Exclusions

The estimated mine capital and operating costs do not include the costs of construction and operating the processing or other facilities, which would be needed for the operation. All the cost estimates are related only to the development, rehabilitation and operation of the underground mine.

The mine general and administration costs cover only the mine supervision and mine engineering and are included in the estimates. These costs do not include the site general and processing administration costs.

In the cost estimates, there is no provision for the site camp to accommodate employees or for the employee’s transportation costs to the site.

The study assumes that the Mine Offices would to be located in the office area of the existing warehouse building.

The costs of the Feasibility Study, permitting and EPCM are omitted in the above estimates.

SECTION 19.0 PROCESSING OPTIONS AND RECOVERABILITY

19.1 Overview of Process Technology

The preliminary assessment has evaluated three different processing options for the Mount Pleasant North Zone. The common component of all three cases considered is a concentrator plant that produces a saleable grade tin concentrate and an indium-bearing zinc concentrate. The first processing option considers the concentrator plant only ("Case A"). In the second case, an add-on hydromet circuit was evaluated to assess the potential for added-value production of zinc metal and indium sponge from the zinc concentrate ("Case B"). Finally, in the third case, a tin pyromet process was also considered for production of tin chloride from a lower grade tin concentrate while still producing zinc metal and indium sponge via the hydromet process ("Case C").

All process design is considered preliminary and conceptual at this stage, and further bench and pilot scale testing will be required to confirm and optimize the flowsheets.

The flowsheet to produce tin concentrate is based on bench scale locked cycle testing completed by Cominco Engineering Services Ltd. ("CESL") (1991) which tested a flowsheet including desliming, bulk sulfide flotation, tin flotation, and centrifugal gravity separators to recover fine tin from slimes. This flowsheet was later piloted at Lakefield Research Ltd. (1995). These reports do not identify the source of the North Zone ore sample and the mineralization may differ from the areas in the North Zone being considered in this preliminary assessment. Therefore, additional testing will be required using a representative ore sample. Since the North Zone tin mineralization is relatively fine grained, the gravity recovery circuit that was previously tested for tungsten by SGS Lakefield Research Europe (SGS, 2008f), based on a flowsheet designed by Thibault & Associates Inc. for the Fire Tower Zone, would not provide optimal tin recovery.

The process flowsheet for indium recovery that was included in the 1997 North Zone Feasibility study by Kvaerner Metals (Kvaerner, 1997) was based on a bioleach process developed by the Research and Productivity Council followed by an indium hydromet circuit developed by Thibault & Associates Inc. for purification and recovery of indium from a sulphate solution.

In an effort to reduce capital and operating costs, the conceptual indium hydromet process included in the current preliminary assessment is based on a ferric chloride leach, followed by a hydrometallurgical process for indium purification and recovery from a chloride solution. Zinc is recovered by electrowinning from the chloride solution which also regenerates chlorine for the leaching operation. The ferric chloride leach process is based on previous work by CANMET (1989) for treatment of base metal sulfide concentrates. Conceptual design of the hydrometallurgical process technology by Thibault & Associates Inc. is not based on bench scale or pilot testing on ore from the North Zone. Bench scale test programs for further assessment of the hydrometallurgical process technical viability using bulk sulfide concentrate produced from the North Zone ore is presently in progress by Thibault & Associates Inc.

The tin chloride production process is based on preliminary testing that was carried out by CANMET laboratories in 1990 (CANMET, 1990) on an unidentified low grade tin concentrate from Mount Pleasant. The testing at CANMET was based on prior work by the Warren Spring Laboratory (Flett, 1984) and Charter Consolidated (1984) in the UK. The process testing to date used the chloride roast process to produce tin chloride solution which was then cemented with

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 19-2 aluminum to produce a tin metal final product. Based on this work, a conceptual process was developed for this study using the tin chloride roast to produce tin chloride as a final product rather than tin metal. Confirmation of this process through bench and pilot scale testing would be required.

The following section describes the conceptual process, which is illustrated on the block diagrams and mass balance in Appendix A and the flowsheets in Appendix B. The mass balance print-out included in Appendix A is for Case C - production of tin chloride, indium sponge and zinc metal, which is representative of the mass balance for all three cases except for the lower grade of tin concentrate (20.0% versus 46.0%) that is produced for add-on processing to tin chloride end-use product.

19.2 Process Description

19.2.1 Ore Storage and Crushing – Reference Drawing 0503-10-01

A conventional two-stage crushing plant is used to reduce the size of the run-of-mine ore to the required size for grinding. Since an autogenous grinding circuit is not used in the proposed process, pebble production that was used in the past Billiton operation is not required. The run-of- mine ore is not crushed in the mine, and is stockpiled in an outdoor ore storage pile at the plant. The crushing circuit consists of portable equipment located outdoors. The primary jaw crusher will have a grizzly feeder to remove any oversize ore that requires rock breaking. After primary size reduction by the jaw crusher, the crushed ore is conveyed to a screen with the oversize material being fed to a secondary cone crusher for final crushing. The secondary crusher product is conveyed to the same screen to remove the finished undersize material and to recycle the oversize material to the secondary crusher. Final crushed ore is stored in a fine ore storage silo.

19.2.2 Ore Grinding and Desliming - Reference Drawings 0503-20-01 and 0503-20-02

A conventional two-stage rod mill - ball mill grinding is used with the rod mill operating in open circuit and the ball mill operating in closed circuit. Size classification in the ball mill circuit is by hydrocyclones; the optional grinding classification screen shown in the drawings was subsequently removed during the cost estimating. The grind size is based on the requirements for sulphide flotation, and a regrind mill is used subsequent to sulphide flotation in order to further liberate the tin for flotation. The ground ore is deslimed to remove ultra-fine silicates and chlorites which will interfere with tin flotation and increase reagent consumption. Based on the CESL test program (Cominco, 1991), the desliming is considered non-conventional with two stages of hydrocyclones followed by the cyclone overflow (slimes) being sent to a third centrifugal gravity desliming stage to recover fine tin prior to rejecting the slimes to tailings. The hydrocyclone underflow and centrifugal gravity desliming concentrate is combined and fed to magnetic separation.

NOTE: After completion of the mass balance simulation, it was found that desliming prior to the sulphide (zinc/arsenic) flotation circuit would lead to a substantial loss of zinc (and indium) with the slimes to tailings. In addition, more slimes would be generated in the arsenic flotation regrind mill (after sulphide flotation) that would necessitate additional desliming. Therefore, it is recommended that future flowsheet development be based on moving the desliming operation to a location downstream of the sulphide flotation steps.

mass balance simulation recoveries have been adjusted based on desliming occurring after the sulphide flotation circuits.

19.2.3 Magnetic Separation Circuit - Reference Drawing 0503-31-01

The deslimed ore is fed to a low-intensity magnetic separator ("LIMS") which removes all magnetic material in the ore, such as steel grinding media, since iron is known to interfere with tin flotation. The magnetic material collected from the LIMS is sent to tailings treatment.

The use of a high-intensity magnetic separator ("HIMS") has been included as a means to separate tungsten to prevent it from reporting to and contaminating the tin concentrate. The optimum location of the HIMS circuit has not been determined and its use on a tin concentrate stream may also be considered for tungsten removal. HIMS could also be considered in future testing to determine if paramagnetic chlorites can be effectively removed by HIMS which may result in less of a need for desliming.

NOTE: Flowsheet drawings included in Appendix B of this report depict the use of HIMS as part of ore treatment. Costing of the HIMS was based on treatment of tin concentrate. Test programs would be required to confirm technical feasibility of tungsten removal from tin concentrate by HIMS.

19.2.4 Zinc Flotation Circuit - Reference Drawings 0503-31-02 and 0503-31-03

The sulphide flotation circuit as shown on the flowsheets is modeled after the 1997 test work by Lakefield Research Ltd. (Lakefield, 1997) and is based on selective sequential flotation of zinc followed by flotation of arsenic. Sulphide flowsheet configuration options are subject to further review with bench and pilot testing and an alternative configuration that may be considered is to perform a bulk sulphide flotation followed by selective flotation of copper and then zinc from the bulk sulphide concentrate.

For the purposes of the preliminary assessment, the zinc flotation circuit consists of conditioning the ore with reagents followed by rougher, scavenger, and two-stage concentrate cleaning in conventional flotation cells. Flotation reagents include lime, copper sulphate, R-3894 collector and MIBC frother. Indium is simultaneously recovered to the zinc concentrate, since the indium is mainly associated with sphalerite in the tin-zinc ore (SGS Lakefield Mineralogy Study, Nov. 2008). The cleaned zinc concentrate is thickened prior to feeding the indium hydromet circuit or alternatively it may be dried and packaged for sale as a zinc concentrate. The tailings from the zinc flotation circuit are sent to the arsenic flotation circuit.

19.2.5 Arsenic Flotation Circuit - Reference Drawings 0503-32-01 and 0503-32-02

The arsenic flotation circuit is intended to remove arsenic and any remaining sulphides to a waste concentrate product prior to tin flotation since conventional tin flotation reagents are non-selective against sulphide minerals. The zinc flotation tailings are conditioned with sulfuric acid to lower the pH and flotation reagents including PAX, R-3894 and MIBC are added. Conventional flotation cells are used in rougher, scavenger and two cleaner stages. A regrind mill is integrated into the arsenic flotation circuit which regrinds the rougher tailings down to the size required for tin flotation. Regrind classification is by hydrocyclone and the optional classification screen shown was not included in the cost estimate. The reground rougher tailings are fed to the arsenic

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 19-4 scavenger circuit. The arsenic flotation scavenger tailings are thickened prior to feeding to the tin flotation circuit, which operates at a higher pulp density.

19.2.6 Tin Flotation Circuit - Reference Drawings 0503-33-01

The tailings from arsenic flotation are conditioned with sulfuric acid, sodium silicofluoride, styrene phosphonic acid ("SPA") and MIBC based on the work by Cominco (1991) and Lakefield (1995). Further work will be required to identify alternative collectors for tin since SPA is no longer readily available. Tin is floated in conventional rougher and scavenger flotation cells, while the rougher/scavenger concentrates are cleaned in two stages of column flotation cells which will help remove fine gangue material from the concentrate. The tailings from the cleaner columns are treated in a rougher-scavenger configuration with centrifugal gravity separators. This step will remove slimes from the cleaner tails and allow recycle of the tin-containing gravity concentrate back to the rougher flotation circuit. The final tin concentrate is thickened, filtered on a belt filter, and finally dried prior to dry concentrate storage and packaging for load out.

19.2.7 Tin Chloride Pyromet - Reference Drawings 0503-41-01 through 0503-41-05

A lower grade tin concentrate from the tin flotation circuit is first mixed with calcium chloride and pulverized petroleum coke, which serves as a carbon source to create reducing reaction conditions. The mixture is then formed into pellets which will help minimize fines entrainment in the gas stream from the reaction kiln. The pellets that are too fine are screened out and recycled to the mixer/pelletizer equipment. The moist (green) pellets are then cured/hardened in a moving belt direct-fired dryer. Cured pellets are fed to the tin chlorination reactor, which is a direct-fired rotary kiln. Both the dryer and kiln are fuelled with No. 2 fuel oil. The tin chlorination reactor is operated at high temperature at or slightly below the stoichiometric requirement of air in order to maintain reducing conditions and promote the reaction of tin oxide in the concentrate with calcium chloride and carbon to form tin chloride vapor, calcium oxide solids and carbon monoxide gas. The hot solids residue leaves the kiln and is cooled in a quench tank by mixing with water and the resulting slurry is pumped to tailings treatment.

The off-gas and vapor mixture from the tin chlorination reactor is quench cooled by direct contact with water in a venturi scrubber, where tin chloride vapor is condensed into a tin chloride aqueous solution. Other impurity vapors are also condensed into the liquid phase. The off-gas from the chlorination gas quench venturi scrubber still contains impurities such as hydrochloric acid gas, and two additional scrubbing stages are required to assure that the off-gas meets environmental standards prior to venting to the atmosphere.

The crude tin chloride solution is treated in a purification circuit with lime to precipitate some of the contained impurities and the precipitate is then filtered from the solution using filter presses. After purification, the tin chloride solution is fed to the crystallization circuit.

The final purification step to make market grade tin chloride takes place within the crystallization process. Water and hydrochloric acid are evaporated, which causes tin chloride crystals to form. The tin chloride crystals are recovered by filtering the slurry on a vacuum belt filter. Filtrate off of the belt filter is recycled to the crystallizer feed with a controlled bleed stream being purged to wastewater treatment for impurity control.

The vapor that is evaporated in the crystallizer is condensed to reclaim process water and some of the hydrochloric acid. An additional acid recovery scrubber is used to further remove hydrochloric acid vapor/mist from the crystallizer off-gas. The scrubber off-gas is then directed to the tin chlorination reactor off-gas scrubber system for final acid gas removal prior to venting to the atmosphere. The acid that is recovered is dilute and is sent to wastewater treatment; however, there may be opportunities for recycling this stream to the indium hydromet circuit.

The tin chloride crystals are dried in a steam-heated tray dryer, cooled and directed to product screening to screen out fines prior to packaging. Collected fines are slurried and pumped back to the crystallizer. Sized tin chloride crystals (screen oversize) report to the tin chloride product bin and are subsequently packaged in bulk bags. Dry dust collection removes any entrained tin chloride from the dryer off-gas and packaging operations and returns the material to the product screening circuit.

19.2.8 Indium and Zinc Hydromet - Reference Drawings 0503-42-01 through 0503-42-07

Zinc concentrate from the zinc flotation circuit is slurried with aqueous recycle streams from downstream hydromet unit operations, and process water as required, and is preheated in a steam coil-heated and agitated tank, which also serves to provide buffer capacity to equalize the feed rate to the leach reactors. Pre-heated slurry is combined with regenerated ferric chloride leach solution and fed to four continuously stirred, heated leach reactor tanks arranged in series, where the leach reaction takes place. The leached pulp flows to a thickener where the solid leach residue is concentrated in the thickener underflow, then filtered and washed using a vacuum belt filter. The washed filter cake is repulped along with the solid iron oxide precipitate from oxyhydrolysis and pumped to tailings treatment. Leach residue filtrate and wash water is fed to the second stage chlorinator to optimize on recovery and regeneration of the spent leach solution.

The pregnant leach solution from the thickener overflow is collected and fed to the lead carbonate precipitation reactors, where sodium carbonate is added to the solution in order to selectively precipitate soluble lead as lead carbonate. Two plate and frame filter presses are operated batchwise, in parallel to separate the lead carbonate from the remaining pregnant leach solution. Lead carbonate solids are repulped and pumped to tailings treatment along with solids formed by arsenic / copper cementation and zinc electrolyte solution purification in the zinc electrowinning circuit.

The filtrate from the lead carbonate filters moves on to the copper / arsenic cementation stage where soluble copper and arsenic are cemented out and any ferric iron remaining in solution is reduced to ferrous iron using iron rods in two continuous mill-type reactors operated in parallel. The purified pregnant leach solution is then pumped through a precoat filter to remove the solid copper / arsenic residue and to assure removal of any other residual solid impurities before feeding the purified solution to the solvent extraction mixer-settlers.

The raffinate from the extraction stage contains the majority of the ferrous iron from the spent leach solution, any iron that was leached from the zinc concentrate and any other metals that may have been present in the pregnant leach solution and were not removed in the leach solution purification steps or extracted to the organic solvent phase. The raffinate is collected in a holding tank, pumped through activated carbon columns to remove any residual organic and then fed to the primary chlorinator for regeneration of the ferric chloride leach solution.

The primary and secondary chlorinator towers are arranged in series with the chlorine gas regenerant being fed (along with carrier air) at the bottom of the tower. Ferrous iron contained in the solvent extraction circuit raffinate is converted to ferric iron by oxidation-chlorination reactions as it flows downwards through the primary stage of the chlorinator tower. Any residual chlorine remaining in the gas stream exiting from the first stage is consumed in the second stage as ferrous iron in the leach residue filtrate and wash water stream is oxidized to ferric iron. Chlorinator off-gas is directed to an off-gas scrubber which uses caustic solution to adsorb any remaining chlorine and convert it to sodium chloride prior to venting the off-gas to the atmosphere.

Excess raffinate solution not required in the leach is bled on a continuous basis to four agitated, pressurized oxyhydrolysis reactors where oxygen is added. The reactors are operated at sufficient pressure and temperature to convert soluble iron to iron oxide (Fe2O3) solids. The discharge from the oxyhydrolysis reactors is reduced to atmospheric pressure in a flash vessel, the steam from which is used to preheat the oxyhydrolysis feed. The iron oxide solids are filtered from the solution by a plate and frame filter press, repulped and pumped to tailings treatment along with the leach residue. The filtrate, a dilute acid solution, can be reused in the solvent extraction circuit.

The conceptual design of the solvent extraction circuit is based on selection of an organic extractant that is capable of selectively loading zinc and indium while rejecting ferrous iron to the extraction stage raffinate.

In the extraction stage, the organic is contacted with the purified pregnant leach solution in four conventional mixer-settler cells where the organic becomes loaded with zinc and indium chloride complexes in a counter-current flow arrangement. From the extraction stage, the loaded organic flows to the scrub stage where zinc chloride is stripped by contacting the organic with a dilute hydrochloric acid solution in four counter-current mixer-settlers cells. The organic is further contacted with water in four primary and two secondary stripping mixer-settler cells to selectively strip the indium chloride. Two additional mixer-settler cells are provided for periodic acid washing of the stripped organic using concentrated hydrochloric acid to remove build-up of trace metal impurities and ferric iron from the organic prior to recirculating it back to the extraction stage.

19.2.9 Zinc Electrowinning - Reference Drawing 0503-43-01

The zinc chloride scrub solution is collected in a surge tank and pumped through activated carbon columns to remove any traces of the organic solvent prior to being fed into a continuous mill reactor where zinc metal is used to remove trace metal impurities by cementation. Any precipitate formed in the cementation reaction is filtered from the solution by a candle filter upstream of the zinc electrolyte holding tank. From here, the electrolyte is fed to a series of air- sparged Dynel diaphragm zinc electrowinning cells where zinc is plated-out on aluminum cathodes and liberated chlorine gas is recovered in the off-gas stream. The zinc metal plates are automatically harvested and washed by a mechanical zinc sheet harvester and the washed plates are loaded onto pallets and packaged for shipment to the end user.

Residual chlorine in the spent electrolyte is stripped with air in a packed tower, the off-gas from which joins the concentrated chlorine gas stream recovered from the electrowinning cells, and is recycled as feed scrub solution to the solvent extraction zinc scrub stage.

19.2.10 Indium Sponge Cementation - Reference Drawing 0503-44-01

Loaded strip solution from the solvent extraction containing a high concentration of indium chloride is also collected in a holding tank and pumped through activated carbon columns to removes traces of organic from the solution prior to feeding into two continuous mill-type cementation reactors. A small portion of the zinc metal produced in the zinc electrowinning circuit is used to cement-out a relatively pure (approximately 95%) indium sponge product, which is dewatered in a conventional plate and frame filter and then pressed into anodes using a hydraulic press. The indium anodes or "buttons" are shrink-wrapped to prevent oxidation of the metal and loaded onto pallets for shipment to the end user. The barren filtrate from the indium sponge filter press is recycled to the leach circuit to maximize overall indium recovery in the hydromet circuit.

19.2.11 Tailings Treatment - Reference Drawing 0503-50-01

All solid tailings from the concentrator, pyromet and hydromet circuits are pumped in slurry form to the existing tailings treatment tanks where hydrated lime is added to neutralize acidity and assure that the tailings are alkaline prior to subaerial disposal in the existing tailings pond. Interstitial process water associated with the various tailings streams is expected to be relatively benign in terms of environmental impact; nevertheless, the treated tailings stream will be thickened in a tailings thickener (existing at site) and the overflow water will be directed to the wastewater treatment plant for treatment as required to remove suspended solids, heavy metals and fluoride. The thickened tailings will be pumped out to the existing tailings pond.

19.2.12 Wastewater Management – Reference Drawing 0503-50-02 through 0503-50-04

Process wastewater, mine water and clarified effluent from the tailings thickener are collected in equalization tanks that provide surge capacity to help normalize both the flow rate and concentration of contaminants in the feed to the wastewater treatment system. The wastewater treatment system is designed to remove suspended solids, soluble metals and fluoride in three main treatment stages in association with support processes for solids removal, sludge dewatering and reagent supply.

Wastewater from the equalization tanks is first pumped into a series of three continuously stirred tank reactors ("CSTR") where hydrated lime slurry is added to increase the pH and precipitate-out the bulk of the soluble metals from solution. The effluent wastewater slurry from the primary reaction stage is sent to a clarifier, where the suspended solids are removed in the clarifier underflow and pumped to the sludge dewatering filters. The clarifier overflow and sludge dewatering filtrate streams are directed to a single polishing stage CSTR for removal of any residual soluble metals by co-precipitation with iron.

Suspended solids in the effluent from the polishing treatment stage are removed by two or more continuous backwashing sand filters operating in parallel. The reject stream is returned to the equalization tanks to enable solids to be removed from the circuit from a single point - the clarifier underflow.

The pH of the clean effluent from the sand filter is then adjusted to an optimum level for adsorption of fluoride by activated alumina. Two or more activated alumina columns will be operated in parallel in such a manner as to allow for uninterrupted treatment of the sand filter effluent even when one column is taken out of service to be regenerated. The activated alumina

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 19-8 is regenerated in-place using a 1% w/w caustic solution to strip the adsorbed fluoride ions from the media, followed by a dilute acid rinse and then a water rinse to re-equilibrate the pH in the column prior to placing it back into service.

The spent activated alumina regenerant solution is collected in a holding tank, where the initially high fluoride concentration is reduced by precipitation of calcium fluoride in a batch reaction with lime. The calcium fluoride solids are allowed to settle in the conical hopper bottom of the reaction tank and are subsequently pumped to the sludge dewatering filters for co-disposal with the bulk of the wastewater treatment solids. The decant water from lime treatment of the spent activated alumina regeneration process still contains a soluble fluoride concentration that will be slightly above the solubility limit of the calcium fluoride precipitate, which is approximately equal to 8.0 mg/L of dissolved fluoride. This water is recycled back to the polishing stage reaction such that the residual fluoride may be reduced to below the allowable discharge limit by re-filtering through the activated alumina system.

The treated effluent from the activated alumina columns is collected in a treated effluent holding tank, where the pH is adjusted with caustic to assure compliance with environmental discharge limits. The treated discharge is then released into the existing tailings pond.

19.2.13 Process and Domestic Water

Process water for the concentrator will be reclaimed from the tailings pond for re-use. Given that there is not a great deal of process water consumption in the concentrator (e.g. leaving the system with the products or by evaporation), and the fact that additional water enters the tailings pond via precipitation / site runoff and treated mine water, new facilities are not expected to be required for supply or treatment of process water.

Domestic water treatment includes carbon filtration followed by chlorination. Domestic wastewater will be collected separately from any process water and treated in the existing septic field disposal system.

19.2.14 Utilities Circuit Unit Operations Block Diagram

A boiler is not required for the standalone concentrator producing tin and zinc concentrates. Process utilities include compressed air systems, low pressure air blowers for flotation, and vacuum pumps for filtration. In the case of tin chloride pyromet and indium hydromet, a steam boiler is required (No. 2 fuel oil fired) to service process steam requirements. A boiler water treatment system is used to generate deionized water for boiler feed water.

19.2.15 Reagent Systems

All reagents will be stored, prepared, and delivered from a common reagent area within each main process area. There will be a reagent area for the concentrator, one for the indium/zinc hydromet, one for the tin pyromet, and one for wastewater/tailings treatment. The reagent systems generally include make-up tanks for slurrying solid reagents or adjusting solution strength, holding tanks and pumps for distribution to the process. A summary of the required process reagent systems is given in Table 19-1:

Table 19-1: Summary of Reagent Systems Required for each Main Process Area

MAIN PROCESS AREA / REAGENT SYSTEM REAGENT USE / PURPOSE ZINC FLOTATION Copper sulphate Activator R-3894 Collector MIBC Frother Lime pH adjustment ARSENIC FLOTATION PAX Collector R-3894 Collector MIBC Frother Sulfuric acid pH adjustment TIN FLOTATION Sodium silicofluoride Gange depressant Styrene phosphonic acid Collector MIBC Frother Sulfuric acid pH adjustment TIN CHLORIDE PYROMET Petroleum coke Carbon source for reduction Calcium chloride Tin chlorination reactant Lime pH adjustment Sodium hydroxide HCl mist scrubbing INDIUM AND ZINC HYDROMET Hydrochloric acid Aqueous stream acidity adjustment Chlorine gas Regeneration of ferric chloride Ferric chloride Leach solution makeup and initial charge Sodium hydroxide Regeneration of activated carbon Sodium carbonate Precipitation of lead Sodium sulphide Precipitation of impurity metal sulphides Sodium chloride Aqueous stream chloride concentration adjustment Iron rods or balls Cementation of Cu/As / reduction of Fe(III) to Fe(II) Diatomaceous earth Filtration aid Organic extractant reagent Solvent extraction of indium & zinc Organic diluent Solvent extraction of indium & zinc TAILINGS TREATMENT Lime pH adjustment Flocculant Improved settling of suspended solids WASTEWATER TREATMENT Lime pH adjustment Ferric chloride Co-precipitation of heavy metals Flocculant Improved settling of suspended solids Sodium hydroxide Regeneration of activated alumina Sulfuric acid Conditioning of activated alumina

19.3 Design Criteria

The process design criteria used to form a basis for conceptual flowsheet design, equipment selection, equipment sizing, product revenue potential, operating and capital costs and preliminary economic assessment / cash flow analysis is described in Table 19-2 through Table 19-15.

Table 19-2: Ore Characteristics and Mill Throughput Design Criteria

PARAMETER UNITS VALUE COMMENTS Run of mine ore moisture content wt% 4.0 Ore specific gravity 2.85 ROM ore bulk density tonne/m³ 2.15 Head grade dry basis Tin wt% Sn 0.71 Zinc wt% Zn 1.82 Indium ppm In 183

Mill design capacity ROM ore DMT/d 850 throughput Mill annual availability at design % 90 Total availability over 365 days for capacity operation at 850 tonne/d

Overall tin recovery to concentrate wt% 74.97 Preliminary - based on limited data from historic reports on previous bench scale testing of tin flotation circuits by CESL and Lakefield. Requires confirmation based on continuous pilot testing of the proposed flowsheet.

Overall tin recovery to tin chloride wt% 67.60 Conceptual based on recoveries reported product by CANMET for production of tin metal by chloride roasting North Zone ore. Tin grade for concentrate production wt% Sn 46.0 Based on limited data from historic reports on previous bench scale testing of tin flotation circuits by CESL. Requires confirmation based on continuous pilot scale testing of the proposed flowsheet.

Tin concentrate grade for producing wt% Sn 20.0 Maximum possible to prevent fusion of tin chloride calcium chloride.

Tin chloride product purity wt% Sn 62.6 Based on compliance with typical product purity specification for tin chloride anhydrous as 99.0% SnCl2.

Overall zinc recovery to concentrate wt% Zn 85.18 Preliminary based on limited historic testing data from Lakefield. Requires confirmation based on continuous pilot scale testing of the proposed flowsheet.

Overall zinc recovery to zinc metal wt% Zn 79.42 Preliminary based on typical zinc loss product through hydromet and electrowin circuits. Requires confirmation based on continuous pilot scale testing of the proposed flowsheet.

Overall indium recovery to zinc wt% In 83.05 Preliminary based on limited historic data concentrate from Lakefield. Requires confirmation based on continuous pilot scale testing of the proposed flowsheet.

Overall indium recovery to indium wt% In 75.40 Preliminary based on typical indium loss sponge product through hydromet and cementation circuits. Requires confirmation based on continuous pilot scale testing of the proposed flowsheet.

Zinc concentrate zinc grade wt% Zn 50.0 Preliminary based on typical zinc concentrate grade as input to smelter.

Zinc concentrate indium grade ppm In 4894.5 Preliminary based on overall indium recovery to zinc concentrate from item 1.10.

Zinc metal grade from electrowinning wt% Zn 99.5 Preliminary based on meeting minimum circuit end-user specifications.

Indium sponge grade from wt% In 95.0 Preliminary based on meeting minimum cementation circuit end-user specification for feed to conventional electro-refining circuit.

Table 19-3: Ore Storage and Crushing Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Crusher circuit daily operating hours hours/d 8 One shift per day operation Crushing circuit design ROM ore tonne/h 106 Based on 8 hour per day operation processing rate

Primary crusher: Ore crushability based on previous Fire Number of primary crushers 1 @ 100% Tower Zone operation and will require Crusher type Jaw testing to assess power requirement Circuit type Open relative to North Zone ore variability. Primary crusher ore feed rate tonne/h 106 ROM ore top size mm 400 Product 80% passing (P80) mm 51.7 Impact work index kWh/tonne 11.25

Secondary crusher: Ore crushability based on previous Fire Number of secondary crushers 1 @ 100% Tower Zone operation and will require Crusher type Cone testing to assess power requirement Circuit type Closed relative to North Zone ore variability. Secondary crusher ore feed rate 106 Feed 80% passing (F80) mm 51.7 Product 80% passing (P80) mm 9.50 Impact work index kWh/tonne 11.25

Crusher screen classification: Number of crushing screens: 1 @ 100% Screen type Double deck Fraction of feed to screen o/s wt% 50% Ore feed rate tonne/h 212 Screen size opening mm 12.0

Fine ore storage silo live capacity tonne 1700 Based on 2 days live storage capacity

Table 19-4: Grinding and Desliming Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Grinding and desliming circuit hours/d 24 operating time

Rod mill weigh feeder Number 1 @ 100% Feeder type belt Crushed ore capacity tonne/h 35.42

Rod mill feed conveyor Crushed ore capacity tonne/h 35.42

Primary grinding mill Number of primary mills 1 Mill type Rod mill Overflow, wet grind. Mill circuit type open Feed 80% passing (F80) mm 9.50 Product 80% passing (P80) mm 1.19 Size reduction ratio 7.98 Bond rod mill work index kWh/tonne 19.5 From Lakefield pilot testing of Endogranitic and Contact Crest NZ ore

Rod mill ore feed rate dry solids tonne/h 35.42 Rod mill operating solids wt% 70

Grinding classification cyclopac Rod mill cyclone cut size (d50) μm 50 Number of cyclones 2 Solids feed rate tonne/h 95.7 Feed density (% solids) wt% 50.0 Overflow density (% solids) wt% 30.0 Underflow density (% solids) wt% 70.0

Grinding classification screen Deleted

Secondary grinding mill Number of secondary mills 1 @ 100% Mill type Ball mill Mill circuit type closed Feed 80% passing (F80) mm 1.19 Product 80% passing (P80) μm 74.0 Size reduction ratio 16.08 Bond ball mill work index kWh/tonne 12.0 From Lakefield pilot testing of Endogranitic and Contact Crest NZ ore

Ball mill feed rate dry solids tonne/h 60.3 Ball mill operating solids wt% 65.0

Primary desliming cyclopac Number of cyclones 13 Cyclone cut size (d50) μm 20.0 Solids feed rate tonne/h 45.0 Feed density (% solids) wt% 21.6 Overflow density (% solids) wt% 6.1 Underflow density (% solids) wt% 70.0

Secondary desliming cyclopac Number of cyclones 8 Cyclone cut size (d50) μm 20.0 Solids feed rate tonne/h 35.4 Feed density (% solids) wt% 28.0 Overflow density (% solids) wt% 10.7 Underflow density (% solids) wt% 70.0

Desliming centrifugal separator Number of centrifugal separators 1 Solids feed rate (total) tonne/h 9.6

Table 19-5: Magnetic Separation Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Magnetic separation circuit operating hours/d 24 time

Primary magnetic separation: Number of units: 2 @ 50% Magnetic separator type wet low-intensity (WLIMS) Solids feed rate (total) tonne/h 26.3 Feed density wt% 44.1 Magnetic field strength gauss 950 Based on Eriez model SL

Secondary magnetic separation Number of units 1 @ 100% Magnetic separator type wet high-intensity (WHIMS) Solids feed rate tonne/h 26.1 Feed density wt% 35 - 40 magnetic field intensity in open air gap Magnetic field strength gauss 9,000 (20,000 in matrix) based on Eriez model CF

Table 19-6: Zinc Flotation Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Flotation circuit operating time hours/d 24

Zinc flotation conditioning tank: Holding time hour 0.25 Agitation power basis kW/m³ 0.20 Slurry flow rate m³/h 76.1 Solids concentration wt% 30.0 Zinc rougher flotation cells: Number of rougher cells 5 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 28.3 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 76.1 particle size and reagent scheme and to Solids concentration in feed wt% 30.0 confirm flowsheet configuration for Total rougher residence time min. 10 sequential flotation of zinc, arsenic and Aeration factor 0.85 tin. Air flow requirement basis m³/m³/min 1.0 Rougher conc. zinc recovery wt% 76.0

Zinc scavenger flotation cells: Number of scavenger cells 5 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 25.9 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 66.0 particle size and reagent scheme and to Solids concentration in feed wt% 31.4 confirm flowsheet configuration for Total scavenger residence time min. 10 sequential flotation of zinc, arsenic and Aeration factor 0.85 tin. Air flow requirement basis m³/m³/min 1.0 Scavenger conc. zinc recovery wt% 50.0

Zinc cleaner flotation cells: Number of cleaner cells 6 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 3.3 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 14.0 particle size and reagent scheme. Solids concentration in feed wt% 20.0 Primary cleaner residence time min. 10 Secondary cleaner residence min. 10 time Aeration factor 0.85 Air flow requirement m³/m³/min 1.0 Cleaner conc. zinc recovery wt% 80.0

Zinc concentrate thickener: Feed volumetric flowrate m³/h 6.5 Feed mass flowrate tonne/h 7.3 Feed solids concentration wt% 15.0 Underflow solids concentration wt% 65.0 Water overflow flow rate m³/h 5.6 Thickener sizing basis m3/m2h 1.0

Table 19-7: Arsenic Flotation Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Arsenic flotation conditioning tank: Holding time hour 0.25 Agitation power basis kW/m³ 0.20 Slurry flow rate m³/h 72.0 Solids concentration wt% 30.0 Arsenic rougher flotation cells: Number of rougher cells 5 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 26.8 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 72.0 particle size and reagent scheme and to Solids concentration in feed wt% 30.0 confirm flowsheet configuration for Total rougher residence time min. 20 sequential flotation of zinc, arsenic and Aeration factor 0.85 tin. Air flow requirement basis m³/m³/min 1.0 Rougher conc. arsenic recovery wt% 73.0

Arsenic scavenger flotation cells: Number of scavenger cells 3 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 24.2 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 74.2 particle size and reagent scheme and to Solids concentration in feed wt% 26.9 confirm flowsheet configuration for Total scavenger residence time min. 10 sequential flotation of zinc, arsenic and Aeration factor 0.85 tin. Air flow requirement basis m³/m³/min 1.0 Scavenger conc. arsenic wt% 30.0 recovery

Arsenic cleaner flotation cells: Number of cleaner cells 5 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 3.6 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 15.1 particle size and reagent scheme. Solids concentration in feed wt% 20.0 Primary cleaner residence time min. 15 Secondary cleaner residence min. 15 time Aeration factor 0.85 Air flow requirement m³/m³/min 1.0 Cleaner conc. arsenic recovery wt% 80.0

Arsenic flotation regrind mill: Number of regrind mills 1 @ 100% Mill type Ball mill Mill circuit type closed Feed 80% passing (F80) μm 75.0 Product 80% passing (P80) μm 45.0 Size reduction ratio 1.67 Bond ball mill work index kWh/tonne 12.0 From Lakefield pilot testing of Endogranitic and Contract Crest NZ ore Including recycle Regrind mill feed rate dry solids tonne/h 24.1 Regrind mill operating solids wt% 65.0

Regrind classification cyclopac: Number of cyclones 1 Cyclone cut size (d50) μm 50.0 Solids feed rate tonne/h 65.3 Feed density (% solids) wt% 46.8 Overflow density (% solids) wt% 26.4 Underflow density (% solids) wt% 70.0

Regrind classification screen Deleted

Arsenic flotation tailings thickener: Feed volumetric flow rate m³/h 70.3 Feed mass flow rate tonne/h 85.4 Feed solids concentration wt% 27.2 Underflow solids concentration wt% 65.0 Water overflow flow rate m³/h 20.7 Thickener sizing basis m3/m2h 1.0

Table 19-8: Tin Flotation and Gravity Separation Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Tin flotation conditioning tank: Holding time hour 1.0 Agitation power basis kW/m³ 0.20 Slurry flow rate m³/h 74.2 Solids concentration wt% 26.7

Tin rougher flotation cells: Number of rougher cells 5 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 24.0 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 74.2 particle size and reagent scheme and to Solids concentration in feed wt% 26.7 confirm flowsheet configuration for Total rougher residence time min. 15 sequential flotation of zinc, arsenic and Aeration factor 0.85 tin. Air flow requirement basis m³/m³/min 1.0 Rougher conc. tin recovery wt% 86.4

Tin scavenger flotation cells: Number of scavenger cells 3 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 20.9 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 66.3 particle size and reagent scheme and to Solids concentration in feed wt% 27.4 confirm flowsheet configuration for Total scavenger residence time min. 10 sequential flotation of zinc, arsenic and Aeration factor 0.85 tin. Air flow requirement basis m³/m³/min 1.0 Scavenger conc. tin recovery wt% 36.9

Tin cleaner 1 column flotation cell: Number of cleaner cells 1 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 3.4 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 15.6 particle size and reagent scheme. Solids concentration in feed wt% 19.2 Cleaner 1 residence time min. 25 Aeration factor 0.85 Air flow requirement m³/m³/min 1.0 Overall cleaner conc. tin recovery wt% 90

Tin cleaner 2 column flotation cell: Number of cleaner cells 1 Further testing required to determine Total solids feed rate (w/recycle) tonne/h 2.0 optimum flotation kinetics relative to Total slurry feed rate (w/recycle) m³/h 9.3 particle size and reagent scheme. Solids concentration in feed wt% 19.2 Cleaner 2 residence time min. 25 Aeration factor 0.85 Air flow requirement m³/m³/min 1.0 Overall cleaner conc. tin recovery wt% 90

Tin Rougher Centrifugal Gravity Separator: Number of units 1 Solids feed rate tonne/h 2.28

Tin Scavenger Centrifugal Gravity Separator: Number of units 1 Solids feed rate tonne/h 1.6

Tin concentrate thickener: Feed volumetric flow rate m³/h 2.5 Based on production of 46% wt% Sn in Feed mass flow rate tonne/h 2.7 concentrate Feed solids concentration wt% 15.0 Underflow solids concentration wt% 65.0 Water overflow flow rate m³/h 2.1 Thickener sizing basis m3/m2h 1.0

Tin concentrate belt filter: Number of filters 1 @ 100% Filtration rate (sizing basis) tonne/m2h 0.1 Filter cake moisture content wt% 10 Solids feed rate tonne/h 0.41 Vacuum flow requirements m3/m2min 4.0

Tin concentrate product dryer Number of units 1 Dryer type Holo-flite Solids feed rate tonne/h 0.41 Overall heat transfer coefficient W/m²oC 56.8

Tin concentrate storage bin: Live storage capacity tonne 31 Based on 3 days live storage capacity

Tin concentrate packaging Operating time hrs/day 8 Based on day-shift operation Concentrate feed rate tonne/h 1.3

Table 19-9: Tin Chloride Production Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Tin chloride production circuit hour/day 24 operating time

Tin concentrate mixer: Tin concentrate feed rate (dry) tonne/h 1.44 Pulverized coal feed rate tonne/h 0.030 Calcium chloride feed rate tonne/h 0.353 Total feed rate (w/recycle) tonne/hr 4.9 Mixing residence time min. 5 Volumetric loading ratio % 50 Power input kW/tonne 20

Tin concentrate pelletizer: Number of units 1 Total feed rate (w/recycle) tonne/h 4.9 Pelletizer residence time min. 10 Volumetric loading ratio % 10 Power input kW/tonne 20

Tin pellet screen: Number of units 1 Tin pellet feed rate tonne/h 4.9 Screen opening size mm 2.0 Screen loading tonne/m2h 3.7

Tin pellet dryer: Number of units 1 Total solids feed rate (wet) tonne/h 1.6 Feed solids moisture wt% 12.0 Product moisture wt% 2.0 Product temperature oC 175 Overall heat transfer coefficient kW/oC·m2 0.11 Dryer air flow to solids ratio t air/t pellet 7.0

Tin pellet storage bin: Live storage capacity tonne 12.7 Based on 8 hours live storage capacity

Tin chlorination reactor: Solids feed rate tonne/h 1.6 Solids residence time min. 60 Volumetric loading ratio % 3

Chlorination residue quench tank: Holding time hour 2.0 Agitation power basis kW/m³ 0.10 Slurry flow rate m³/h 5.2 Solids concentration wt% 13.3

Tin chloride solution purification tanks: Number of tanks in series 3 Holding time (total) hour 2.0 Agitation power basis kW/m3 0.20 Solution flow rate m3/h 2.1

Tin chloride solution purification filters: Number of filters 2 Filter type P & F plate and frame Solids feed rate tonne/h 0.056 Filter cake moisture content wt% 20.0

Tin chloride solution crystallizer: Number of crystallizers 1 @ 100% Water evaporation rate tonne/h 2.0

Tin chloride vapor condenser: Overall heat transfer coefficient kW/oC·m2 3.0 Effectiveness factor 0.75 Cooling water ∆T oC 15 Cooling water flow rate m3/h 72.4

Tin chloride filter Number of filters 1 Filter type horizontal vacuum Filter cake moisture content wt% 10.0 Filtration rate (sizing basis) tonne/m2h 0.1 Solids feed rate tonne/h 0.27 Vacuum flow requirements m3/m2min 4.0

Acid recovery scrubber: Scrubber type HCl absorber tower HCl flow rate tonne/h 0.115 Superficial gas velocity m/min 40.0 Scrubber L/G ratio gpm/scfm 0.20

Tin chloride product dryer Number of units 1 Dryer type Holo-flite Solids feed rate (dry basis) tonne/h 0.272 Feed solids moisture content wt% 10.0 Overall heat transfer coefficient W/m²oC 56.8

Tin chloride product bin: Live storage capacity tonne 21.7 Based on 3 days live storage capacity

Tin chloride product packaging: Operating time h/day 4.0 Product feed rate tonne/h 1.81

Table 19-10: Indium and Zinc Hydromet Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Leach circuit operating time hours/d 24

BMS concentrate grade wt% Zn 50.0 wt% In 0.49 wt% Sn 0.82 tin grade refers only to tin contained in wt% Cu 0.35 stannite wt% As 0.91 wt% Fe 3.72 iron grade refers only to iron contained in wt% Pb 1.09 pyrite

Leach circuit metal extraction wt% Zn 98.0 extraction rates to be confirmed by bench wt% In 98.0 scale test work wt% Sn 90.0 wt% Cu 97.0 wt% As 25.0 wt% Fe 70.0 wt% Pb 99.0

BMS leach feed holding tank: Holding time hour 4.0 Agitation power basis kW/m³ 0.10 Slurry discharge flow rate m³/h 0.66 Solids concentration wt% 73.8 Leach slurry preheat temperature oC 40.0 Estimated heat load kW 14.1

BMS leach tank reactors: Number of tank reactors in series 4 BMS ferric chloride leach reaction Batch residence time hour 4.0 parameters to be confirmed by bench Scale-up factor for CSTR 3.0 scale testing. Leach temperature oC 95.0 Estimated heat load (total) kW 764.2 Initial ferric iron concentration g Fe3+/L 100.0 Leach stoichiometry 0.91 HCl concentration in leach M HCl 0.0 Agitation power basis kW/m3 0.10 Leach slurry discharge flow rate m3/h 9.7 Residual solids concentration wt% 4.9

Leach residue thickener: Feed volumetric flow rate m³/h 9.7 Feed mass flow rate tonne/h 10.0 Feed solids concentration wt% 4.9 Underflow solids concentration wt% 65.0 Leach solution overflow rate m³/h 9.2 Thickener sizing basis m3/m2h 1.22

Leach solution holding tank: Holding time hour 8

Leach residue holding tank: Holding time hour 8 Agitation power basis kW/m3 0.2 Slurry flow rate m³/h 0.44

BMS leach residue filter: Number of filters 1 @ 100% Filter type horizontal vacuum Filter cake moisture content wt% 2.0 Filtration rate (sizing basis) tonne/m2h 0.3 Solids feed rate tonne/h 0.47 Vacuum flow requirement m3/m2min 4.0

Leach residue filter filtrate holding tank: Holding time hour 8 Solution flow rate m3/h 0.46

Leach residue repulper Solids feed rate (dry basis) tonne/h 0.61 Repulper target percent solids wt% 20.0

Repulped leach residue holding tank: Holding time hour 4.0 Agitation power basis kW/m3 0.2 Slurry flow rate m3/h 2.61

Chlorinator tower Number of stages 2 Solution feed rate to 1st stage tonne/h 8.0 Solution feed rate to 2nd stage tonne/h 0.47 Chlorine feed to 1st stage tonne/h 0.61 Percent flooding velocity % 60

Ferric chloride solution holding tank: Holding time hour 3.0 Solution flow rate m3/h 9.6

Ferric chloride solution pre-heater: Heater type S&T HX graphite shell and tube heat exchanger Solution outlet temperature oC 40.0 Estimated heat load kW 243

Oxyhydrolysis feed holding tank: Holding time hour 4.0 Solution flow rate m³/h 0.90 Raffinate sent to oxyhydrolysis wt% 9.6

Oxyhydrolysis feed heat exchanger: Heater type S&T HX graphite shell and tube heat exchanger Solution outlet temperature oC 140.0 Estimated heat load kW 108

Oxyhydrolysis reactors: Number of reactors in series 4 Reactor type PV Vertical, Hypalon-lined pressure vessels Reaction temperature °C 140.0 w/ helical agitator Reaction pressure kPa 500 2+ Batch residence time (4 reactors) hour 2.0 Conversion of Fe to Fe2O3 based on Scale-up factor for CSTR 3 operating pressure and temperature from Solution feed rate m³/h 0.90 literature - to be confirmed by testing Oxygen feed rate tonne/h 0.016 Estimated heat load kW 32.1 Precipitate form Fe2O3

Oxyhydrolysis filter feed tank: Holding time hour 12.0 Agitator power basis kW/m3 0.1 Slurry flow rate m3/h 0.8

Oxyhydrolysis residue filter: Number of filters 1 Number of filter cycles per day 2 Filter type P&F plate and frame Solids feed rate (daily average) kg/h 0.14 Slurry percent solids wt% 16.2 Filter cake moisture content wt% 10.0 Oxyhydrolysis dilute acid holding tank: Holding time hour 12.0 Solution flow rate m³/h 0.80

Lead precipitation reactors: Number of reactors in series 3 Reactor type CSTR continuously stirred tank reactor Batch residence time (3 tanks) hour 0.5 Scale-up factor for CSTR 3 Solution feed rate m3/h 9.3 5 wt% sodium carbonate solution is added Reagent feed rate (Na2CO3 dry) tonne/h 0.006 in stoichiometric quantity as required to Agitation power basis kW/m3 0.1 precipitate lead from solution as lead carbonate

Lead carbonate filter feed tank: Holding time hour 6.0 Agitator power basis kW/m3 0.1 Slurry flow rate m3/h 9.3

Lead carbonate filter: Number of filters 2 Number of filter cycles per day 2 Filter type P&F plate and frame Solids feed rate (daily average) kg/h 24.6 Slurry percent solids wt% 0.26 Filter cake moisture content wt% 10.0 Lead carbonate filtrate holding tank: Holding time hour 6.0 Slurry flow rate m³/h 9.3

Lead precipitate holding tank: Holding time hour 4.0 Agitation power basis kW/m3 0.2 Slurry flow rate m³/h 0.16

Copper/arsenic cementation reactor: Number of reactors in parallel 2 Reactor type CMR Continuous mill reactor w/ rotating basket CMR residence time hour 0.5 containing iron rods for cementation Solution flow rate (total) m³/h 9.4

Copper/arsenic cementation residue filter feed tank: Holding time hour 6.0 Agitation power basis kW/m3 0.1 Slurry flow rate m3/h 9.4 Operating temperature oC 50.0

Copper/arsenic cementation residue filter: Number of filters 2 Number of filter cycles per day 2 Filter type P&F plate and frame filter w/ precoat Solids feed rate (daily average) kg/h 12.6 Slurry percent solids wt% 0.1 Filter cake percent moisture wt% 10.0

Copper/arsenic residue filtrate holding tank: Holding time hour 6.0 Slurry flow rate m³/h 9.4

Extraction stage mixer-settlers: Further bench scale testing is required to Organic extractant composition confirm SX reagent selection, flowsheet - Extraction regent vol% 50 configuration and operating parameters - Low aromatic solvent vol% 50 (temperature, O/A ratio, acid and chloride Aqueous phase acid conc. M HCl < 1.0 M concentrations) Number of extraction stages 4 Mixer residence time per stage min. 5 Organic/Aqueous ratio (external) vol/vol 1 Organic volume flow rate m³/h 9.4 Aqueous volume flow rate m³/h 9.4 Settler sizing criteria m³/h·m² 4.0 Operating temperature °C 22.0

Scrub stage mixer-settlers: Further bench scale testing is required to Scrub solution acid concentration M HCl 0.01 confirm scrub solution composition, Number of scrub stages 4 flowsheet configuration and operating Mixer residence time per stage min. 5 parameters (temperature, O/A ratio, acid Organic/Aqueous ratio (external) vol/vol 4 and chloride concentrations) Organic volume flow rate m³/h 9.4 Aqueous volume flow rate m³/h 2.4 Settler sizing criteria m³/h·m² 4.0 Operating temperature °C 22.0

Strip stage mixer-settlers: Further bench scale testing is required to Strip solution acid concentration M HCl 0.0 confirm strip solution composition, Number of primary strip stages 4 flowsheet configuration and operating Number of sec. strip stages 2 parameters (temperature, O/A ratio, acid Mixer residence time per stage min. 5 and chloride concentrations) Organic/Aqueous ratio (external) vol/vol 4 Organic volume flow rate m³/h 9.4 Aqueous volume flow rate m³/h 2.4 Settler sizing criteria m³/h·m² 4.0 Operating temperature °C 22.0

Acid wash stage mixer-settlers: Further bench scale testing is required to Scrub solution acid concentration M HCl 6.0 confirm acid wash requirements, Number of acid wash stages 2 flowsheet configuration and operating Mixer residence time per stage min. 5 parameters (temperature, O/A ratio, acid Organic/Aqueous ratio (external) vol/vol 1 and chloride concentrations) Organic volume flow rate m³/h 9.4 Aqueous volume flow rate m³/h 9.4 Settler sizing criteria m³/h·m² 4.0 Operating temperature °C 22.0

SX crud mixer-settler: Crud mixer settler is used for rougher Number of stages 1 separation of organic entrained in SX area Mixer residence time per stage min. 5 wastewater Aqueous volume flow rate m³/h 5.6 Settler sizing criteria m³/h·m² 4.0 Operating temperature °C 22.0

Scrub / Strip / Wash / Organic solution preparation tanks: Holding time hour 3.0 Loaded scrub / strip solution pumping tanks: Holding time hour 3.0 SX area carbon adsorption columns: Number of carbon columns: - extraction stage raffinate 2 - loaded scrub solution 2 - loaded strip solution 2 - SX area wastewater 1 Empty bed contact time min. 35

Table 19-11: Zinc Electrowinning Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Zinc electrowinning circuit operating hours/d 24 time

Zinc chloride solution cementation reactor: Number of reactors in parallel 1 Reactor type CMR Continuous mill reactor w/ rotating basket CMR residence time hour 0.5 containing zinc metal plates for Solution flow rate (total) m³/h 2.4 cementation

Electrolyte holding tank: Holding time hour 24 Solution flow rate m3/h 2.4

Zinc electrowinning cells: Cell type Dynel diaphragm, air-sparged Zinc metal gross production rate tonne/h 0.52 Zinc chloride solution flow rate m3/h 2.4 Operating parameters to be confirmed by Inverse Faraday constant for zinc g/A·h 1.22 equipment manufacturer Current density A/m2 323 Current efficiency % 91.0 Time efficiency % 85.0 Plating area per cathode m2 1.5 Maximum cathodes per cell 66 Total no. cells required 19 Operating temperature oC 35.0 Operating pH < 2 Power requirement kWh/kg Zn 5.0 Cathode material aluminum Anode material titanium

Spent electrolyte holding tank: Holding time hour 3.0 Solution flow rate m3/h 1.3

Spent electrolyte de-chlorination tower: Solution flow rate m³/h 1.3 Operating temperature oC 50.0 Operating pH 0.8 to 1.0

Table 19-12: Indium Sponge Cementation Circuit Design Criteria

PARAMETER UNITS VALUE COMMENTS Indium cementation reactor: Number of reactors in parallel 2 Reactor type CMR Continuous mill reactor w/ rotating basket CMR residence time hour 6.0 containing zinc metal plates for Solution flow rate (total) m³/h 2.4 cementation

Indium sponge filter feed tank: Holding time hour 24 Agitation power basis kW/m3 0.1 Slurry flow rate m3/h 2.4

Indium sponge filter: Number of filters 1 Number of filter cycles per day 1 Filter type P&F plate and frame filter w/ precoat Solids feed rate (daily average) kg/h 5.14 Slurry percent solids wt% 0.22 Filter cake percent moisture wt% 10.0

Indium sponge filtrate holding tank: Holding time hour 24.0 Slurry flow rate m³/h 2.4

Indium sponge hydraulic press: Press capacity kg/anode 25 Hydraulic pressure kPa 15,000

Table 19-13: Reagent Systems Design Criteria

PARAMETER UNITS VALUE COMMENTS Zinc float reagent consumption: Copper sulphate solid g/t ore 120 Based on limited data from test reports by R3894 collector g/t ore 12 CESL and Lakefield. Further bench scale Hydrated lime g/t ore 3750 testing required to confirm reagent MIBC frother g/t ore 4.5 dosages

Arsenic float reagent consumption: PAX collector g/t ore 275 Based on limited data from test reports by R3894 collector g/t ore 5 CESL and Lakefield. Further bench scale MIBC frother g/t ore 16.5 testing required to confirm reagent Sulfuric acid (98%) g/t ore 2000 dosages

Tin float reagent consumption: Sulfuric acid (98%) g/t ore 2000 Based on limited data from test reports by Sodium silicofluoride g/t ore 500 CESL and Lakefield. Further bench scale Styrene phosphonic acid collector g/t ore 250 testing required to confirm reagent MIBC frother g/t ore 20 dosages

Tin chloride circuit reagent consumption: Pulverized coal / petcoke t C/t Sn 0.15 Based on 50% stoichiometric excess of carbon and 100% stoichiometric excess Calcium chloride t CaCl2/t Sn 1.87 of calcium chloride.

Ferric chloride leach circuit reagent consumption: Hydrochloric acid (36% HCl) M HCl 0 To be confirmed.

Chlorine gas t Cl2/t BMS 0.041 Based on 0.91 times stoichiometric requirement for oxidation of Fe(II) to Fe(III) for regeneration of leach solution and assumed BMS concentrate composition less chlorine recovered from zinc electrowinning. Leach solution purification reagent consumption: Sodium carbonate (Na2CO3) t/t Pb 0.38 Based on stoichiometric requirement for precipitation of lead carbonate from solution.

Sodium sulphide (Na2S) g/L 1.0 Dosage required to assure strong reducing conditions in Cu/As cementation reaction.

Iron rods (100% Fe) t Fe/t BSC 0.061 Based on 10% stoichiometric excess iron for conversion of 99% copper and 40% arsenic to metal and reduction of remaining Cu2+/As5+/Fe3+ in solution to Cu+/As3+/Fe2+

Diatomaceous earth t/t solids 0.05

Hydrochloric acid (36% HCl) t/t BSC 0.0002 Consumption is minimal and based on acidification of filter cake wash water to 0.1M HCl.

Solvent extraction circuit reagent consumption: Hydrochloric acid (36% HCl) t/t BSC 0.07 Based on 1% makeup HCl in extraction stage to maintain 3.5M aqueous feed acidity; continuous makeup of fresh scrub solution to 0.01 M HCl at O/A ratio of 4:1 in scrub stage; intermittent makeup of acid wash solution to 6.0M HCl based on bleed stream to maintain [Fe3+] < 150g/L in recycled wash solution and O/A ratio of 1:1 in acid wash stage. Acid requirements and flowsheet configuration to be confirmed through bench scale testing.

Extraction reagent t/t BSC 0.0005 Based on use of 75% v/v extractant at O/A of 1:1 in extraction stage and 0.01% Diluent t/t BSC 0.0002 loss of solvent in circuit.

Zinc electrowinning circuit reagent consumption: Zinc metal plate t/t BSC 0.0002 Based on stoichiometric requirement of zinc for cementation of 99.75% indium, 54% copper and 63% lead from zinc electrolyte.

Indium sponge cementation circuit reagent consumption: Hydrochloric acid (36% HCl) t/t BSC 0.02 Based on maintaining indium chloride solution at 0.1M HCl acidity. To be confirmed through bench scale testing.

Based on stoichiometric requirement of zinc for cementation of 99.75% indium. Zinc metal plate t/t BSC 0.003

Table 19-14: Process Utility Systems Design Criteria

PARAMETER UNITS VALUE COMMENTS Process electrical power total connect / total average load: Crushing/grinding/desliming circuit kW 1466 / 962 Tin concentrator circuit kW 297 / 219 Zinc/arsenic concentrator circuit kW 893 / 685 Tin chloride circuit kW 110 / 80 Indium sponge / zinc metal circuit kW 2787/ 2312 Wastewater treatment system kW 266 / 156 Process utility systems kW 751 / 250

Process Steam Consumption Tin chloride circuit kg/h 4,085 Steam consumption based on 150 psig Indium sponge & zinc metal circuit kg/h 3,191 saturated steam.

Table 19-15: Tailings and Wastewater Treatment Systems Design Criteria

PARAMETER UNITS VALUE COMMENTS Total tailings dry solids mass flow rate t/h 32.6

Tailings slurry percent solids wt% 20.0

Total wastewater volumetric flow rate m³/h 200

SECTION 20.0 SITE INFRASTRUCTURE

20.1 Overview

As discussed in Section 5.0, the Adex Mining Inc. property has a considerable amount of existing infrastructure at site which will be reused where possible. It is planned to have a run of mine ore stockpile either inside or adjacent to the existing A-frame ore storage building. Portable crushing equipment will be located outside the A-frame ore storage building and a new conveyor will deliver fine crushed ore to the existing pebble bin within the previously used crusher building.

The concentrator equipment will be located within the existing concentrator building as shown in drawings 0506-00-01, 0506-00-02, and 0506-00-03 in Appendix C.

20.2 Equipment Layout

The existing grinding area will be re-used for the rod mill / ball mill grinding units. The existing foundations from the old mills will need to be removed and replaced. The new rod and ball mill will be installed to leave space for possible future grinding expansion (e.g. for processing Fire Tower Zone ore). A new overhead crane and rails will be required.

The remainder of the equipment required to produce tin concentrate and zinc/indium concentrate will be located within the area used previously for flotation between columns 4 and 8. The two stages of existing desliming cyclopacs will be refurbished and reused. As well, five existing flotation conditioning tanks will be reused with new agitators required. Flotation cells will be located on existing foundations where possible. One existing thickener and water reclaim tank will be reused but a new rake/drive mechanism for the thickener will be required. A new high intensity magnetic separator will be installed, but it is intended to reuse the existing HIMS settling cone. New overhead cranes and rails for the flotation area will be required.

The area that was used previously for tailings and wastewater treatment will be reused for that purpose. The three existing tailings treatment tanks will be reused with new agitators required. The existing thickener located outside will be reused for tailings thickening with a new rake/drive mechanism.

There is an existing utilities area that will be reused for installation of air compressors and vacuum pumps. The existing low pressure air blowers will be refurbished. A multi-level reagent area that was used previously has been reserved for storage, preparation, and metering of reagents for the concentrator.

A boiler is not required for production of concentrate. In the case of either indium sponge/zinc metal or tin chloride production, process steam is required and two boilers will be installed in the existing boiler room with new boiler water treatment equipment.

The study included installation of new process and utility piping. Detailed inspection of pipe condition and location may allow some of the utility piping such as compressed air, low pressure air, and service water to be reused along with the existing pipe racks.

A conceptual layout was prepared to define the building footprint required based on a multi-level layout for the indium/zinc hydromet and the tin chloride pyromet processes. In the case of

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 20-2 indium/zinc hydromet, the existing hydromet area will be reused but any remaining equipment will be removed. A new addition to the building measuring 24 x 36 m will be required to accommodate all of the indium/zinc hydromet process equipment. For the tin chloride pyromet option, a new building addition of 24 x 36 m will be required. Reagent areas for the indium/zinc hydromet and tin chloride pyromet will be located in each new building addition.

20.3 Water Supply

As discussed in Section 5.0, there is an existing domestic water well which will be reused for domestic water supply with refurbishments to the distribution system. Process water will be obtained by recycling water from the tailings pond. A new water reclaim pumping station and piping will be required to deliver recycled process water back to the concentrator.

20.4 Tailings Disposal

The existing tailings pond will be used for tailings disposal without any expansions. A new hydroxide sludge storage cell will need to be constructed for wastewater treatment sludge disposal at the perimeter of the tailings pond.

20.5 Power Supply and Distribution

The site is currently served by an onsite high voltage substation connected to the provincial electric utility, NB Power. Existing switchgear in the substation will be used to connect to several distribution transformers providing the plant and mine electrical requirements. In Case A, three existing transformers will be used (one relocated) and one new one will be connected. For Cases B and C, three existing transformers will be reused (one relocated) and two new ones will be connected. New power distribution and motor control centers will distribute power throughout the plant and mine at 4160V and 600Vac. Plant motors and other loads are to be controlled from new area operator stations by automatic and manual controls. Mine motor and other loads are to be manually controlled. All new cabling and cable trays will be used.

20.6 Process Control System

The plant is to be controlled automatically wherever possible. Manual control will also be provided from area operator stations. Automatic controls will consist of programmable logic controllers that gather information throughout the plant from motor control centers, area operator stations and field instrumentation and will be networked to share that information. Operators will be able to monitor the process, the status of motors, alarms, process flows, tank levels, and other events through the use of color touch screens. The process control system and cabling will be all new equipment.

20.7 Workshops and Warehouses

There is an existing maintenance shop in the concentrator that will be reused. The existing warehouse building will be used for final product storage and general shipping/receiving.

20.8 Office Facilities

The existing warehouse building also contains offices which are currently in use for the care and maintenance operation. The office facility in the warehouse building will be reused as-is with no refurbishment. The existing administration building on site requires refurbishment; this is not

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 20-3 included in the cost estimate and the administration building will not be used for the proposed North Zone operation.

20.9 Communications

Existing telephone and internet services are in place in the warehouse/office building that will be reused. Therefore, new communications infrastructure has not been included.

SECTION 21.0 ENVIRONMENTAL CONSIDERATIONS

21.1 Background

The Mount Pleasant property is a formerly producing tungsten-molybdenum mine, which also hosts tin-indium-zinc mineralization in a separate ore zone on the property, referred to as the North Zone. The current study relates to production from the North Zone, utilizing the existing mine and mill site infrastructure to optimize on capital costs and maintain the battery limits of all project activities within the current perimeter of the Brownfield site.

The property has been under care and maintenance since 1985, during which time mine water from the Fire Tower Zone has been treated by neutralization with lime followed by a settling pond to precipitate and store metal hydroxide sludge prior to the treated mine water being discharged into the existing tailings pond. Effluent from the mine continues to be managed such that there is a single point of effluent discharge from the tailings pond to Hatch Brook through the tailings pond Decant Structure.

The mine water treatment plant is currently operated under New Brunswick Approval to Operate I-6154, which requires that the Mount Pleasant minesite be operated in such in a way as to meet the following water quality objectives for discharge of effluent from the tailings impoundment area ("TIA") discharge structure:

 the pH is between 6.5 and 9.0 at all times;  the total suspended solids are less than 10 mg/L at all times;  the aluminum concentration is less than 0.4 mg/L at all times;  the arsenic concentration is less than 0.3 mg/L at all times;  the fluoride concentration is less than 3.0 mg/L at all times;  the zinc concentration is less than 0.4 mg/L at all times; and,  the effluent is non-acutely lethal to aquatic life at all times.

Under the current approval to operate (dated October 31, 2007), Adex has monitored and reported the tailings pond discharge water quality on a monthly basis to the New Brunswick Department of Environment ("NBDOE"). Water quality parameters analyzed in monthly grab samples have consistently been in compliance with the prescribed limits.

The Decant Structure, Tailings Dam and Emergency Spillway structures were repaired and upgraded in 2008 to meet Canadian Dam Safety Guidelines (Canadian Dam Association, 2007). The new decant structure allows the water level and rate of discharge from the tailings pond to be controlled via a system of wooden stop logs. New piezometers were also installed in 2008 to monitor dam stability.

Detailed engineering design of a new sludge pond to accommodate lime neutralization (metal hydroxide) sludge generated from wastewater treatment for future mine operations and/or continued mine water treatment was completed in 2008 by Jacques Whitford Limited. Construction of the new sludge pond is currently on hold pending the outcome of this preliminary assessment and more detailed feasibility studies.

21.2 Related Environmental Studies

21.2.1 Wastewater Treatability Studies

As an integral part of development of the Mount Pleasant property, discussions regarding environmental standards for operation of the mine were initiated with members of New Brunswick's Standing Committee on Mining and the Environment, which includes officials from the NB Department of Natural Resources ("NBDNR"), NBDOE and Environment Canada. Through these meetings, and based on the fact that a specific effluent limit for fluoride has been imposed for the operation of the existing mine water treatment system / tailings pond discharge, it is apparent that fluoride removal from both the mine water and concentrator plant will be required for wastewater treatment related to the proposed re-opening of the mine.

Currently, fluoride levels in the raw mine water range between 5.0 and 8.0 mg/L and the existing lime neutralization treatment process does not remove fluoride. Furthermore, fluoride is typically added to the flotation circuit in the form of sodium silicofluoride as a gangue suppressant and this was the case during the previous operation producing tungsten and molybdenum concentrates.

In June of 2008, an independent study by ADI Limited was commissioned to identify a wastewater treatment process that would be capable of treating the raw mine water for removal of both heavy metals and fluoride to levels that would be safely below the limits set out in the current approval to operate at the point of discharge from the mine water treatment plant. The ADI study (ADI Limited, 2008) determined that effluent metals concentration limits could be met by pH adjustment with lime to pH 8.5 and that the effluent zinc and arsenic concentrations could be further reduced by addition of soluble ferric iron to the metals precipitation stage in a commercially proven wastewater treatment process referred to as co-precipitation.

The ADI report identified two technically viable means of reducing effluent fluoride concentrations to below 3.0 mg/L - alum coagulation (Nalgonda technique) and adsorption with activated alumina. Alum coagulation is commonly used for defluoridation of drinking water in developing countries and is relatively simple and easy to implement; however, the high operating cost for purchase of aluminum sulphate reagent does not support its use for industrial wastewater treatment. Activated alumina systems are commercially proven for large-scale defluoridation of drinking water; however, limited testing has been done on industrial or mining effluents.

In the fall of 2009, Adex commissioned a second study by Thibault & Associates Inc. to i) assess the treatability of simulated high concentration wastewater that could potentially be generated from hydrometallurgical processing of the North Zone ore, ii) assess the technical feasibility of removing fluoride from the effluent using regenerable activated alumina; and, iii) assess leachability of fluoride from previously submerged and un-submerged tailings and from a sample of ore from the North Zone. The results of the study have not been finalized and will be used to confirm the wastewater flowsheet and design parameters as defined herein, relative to the proposed metallurgical process.

21.2.2 Baseline Environmental Effects Monitoring

In September of 2008, a Baseline Aquatic Survey for Environmental Effects Monitoring ("EEM") was conducted in Hatch Brook by Jacques Whitford Stantec (Jacques Whitford Stantec, 2009) in order to document present environmental and aquatic conditions in the area of the Mount

Pleasant property. The study was conducted in a manner consistent with the federal EEM program administered by Environment Canada such that the results could be used to support future EEM studies, as would be required under MMER in the event that the mine re-opens.

The baseline aquatic survey included sampling and analysis of water and sediment chemistry, benthic community analysis, assessment of fish habitat and analysis of fish tissues for metals at three sampling stations along Hatch brook including a i) reference station - located upstream from the former Mount Pleasant mine site, ii) exposure station - located immediately downstream of the discharge from the tailings pond, and iii) far field exposure station - located approximately 1.6 km downstream from the tailings pond discharge.

Overall, water quality in Hatch Brook was good and most general water quality parameters, as well as trace metals and mercury, were similar across all stations.

Benthic invertebrate assemblage structure showed no evidence of adverse effects and was noted as being "rich, diverse and similar to assemblages elsewhere in the brook" at all three stations.

The fish and fish habitat assessment showed that there is abundant suitable fish habitat in the study locations and nine species of fish were collected for analysis, with the catch per unit effort (CPUE) being highest at the exposure station. There were no exceedances of the Health Canada guideline for mercury in fish for human consumption.

21.3 Environmental Impact and Management

21.3.1 Proposed Plan for Water Management and Operation of Tailings Impoundment Area

The development plan for the proposed re-opening of the Mount Pleasant mine is based on the management of process water, wastewater and tailings, which will all be controlled through the operation of the tailings impoundment area. As stated previously, all treated effluent from the mine operations will be discharged to Hatch Brook at a single point from the tailings pond through the existing decant structure.

All process water required for the concentrator plant, indium-zinc hydromet circuit and tin chloride production facility will be reclaimed from the tailings pond to minimize the need for fresh water from ground water sources. Process wastewater from the various unit operations, decant water from tailings thickening and mine water will be collected and treated in a central, integrated wastewater treatment (WWT) facility. The new wastewater treatment process will be designed such that treated effluent at the discharge from WWT will meet the water quality objectives set out in the current approval to operate I-6154 and applicable MMER standards. In this manner, the tailings pond will act as polishing pond and a source of clean water for reclaim to the process.

The proposed tailings treatment process is based on thickening of the tailings prior to discharge into the tailings pond. Flotation tailings and other environmentally stable solid residues from the process will be collected, treated by neutralization with lime to pH 11-12 in the existing tailings treatment tanks and thickened prior to being pumped to the tailings impoundment area.

The overall tailings deposition and water management plan will be designed to assure that the discharge of effluent from the decant structure will comply with all applicable Federal and Provincial regulations for discharge to the environment.

21.3.2 Wastewater Treatment Sludge Management

Solids generated in the wastewater treatment process are mainly comprised of metal hydroxides from wastewater neutralization and heavy metals precipitation and calcium fluoride sludge generated from periodic regeneration of activated alumina. The wastewater treatment sludge will be dewatered by a filter press prior to being disposed in the planned sludge disposal cell, to be constructed directly adjacent to and within the current perimeter of the existing tailings impoundment area.

21.3.3 Waste Rock Disposal

Waste rock from the previous Fire Tower Zone operation has been deposited in designated areas and has been used at several locations on the site for building materials for roadways and dams. It is proposed that waste rock from the North Zone operation will continue to be placed in designated on-site storage piles and that it may be used in the construction of site infrastructure or in the site reclamation process upon closure.

21.3.4 Domestic Wastewater Treatment

Domestic (sanitary) wastewater will be collected and treated using the existing domestic wastewater treatment system.

21.3.5 Construction and Site Infrastructure

The majority of the existing site infrastructure from the previous operation at the Mount Pleasant property remains in excellent condition and will be re-used. The existing concentrator building, ore storage bin, core shed, and tailings impoundment area will be refurbished as required and/or modified to suit the new operation; thereby greatly reducing the amount of site construction and environmental disturbance that would normally be associated with a Greenfield site.

For any new construction projects and upgrades to site infrastructure, Adex will employ strategies and implement control measures to minimize any environmental disturbances. All new construction and refurbishment of existing site infrastructure related to project activities will be maintained within the current site perimeter, and further disturbance to any surrounding areas that are not currently impacted by the previous operation will remain undisturbed.

Adex will also incorporate standard environmental protection clauses into contract documents and tenders for all construction activities at the site such that Contractors will be contractually obligated to comply with the environmental protection standards set by the Owner, in addition to any general guidelines set by Federal and Provincial regulatory agencies.

21.4 Permits

Requirements for obtaining provincial and federal permits related to the proposed re-opening of the Mount Pleasant mine and a review of applicable government regulations was completed by Jacques Whitford Stantec as part of the Fire Tower Zone Scoping Study completed by Aker Solutions for Adex Mining Inc. in 2008. A summary of that information is contained in the following sections.

21.4.1 Provincial Regulations and Permits

The following is a list of legislation, regulations and required permits that are administered by the Province of New Brunswick and are applicable to the current operation of the mine water treatment plant (care and maintenance related site activity), potential construction and pre- production activities associated with the re-opening of the mine.

Clean Environment Act (Chapter C-6: The Clean Environment Act is administered by the New Brunswick Department of Environment ("NBDOE") and provides the general legislative framework for protection of the environment in New Brunswick. Handling, storage and disposal of hazardous wastes is managed as part of a stewardship program under this Act.

Water Quality Regulation 82-126: This instrument is administered by NBDOE under the Clean Water Act (Chapter C-6.1) for regulation of discharge of liquid effluents to bodies of water in the Province and requires that any operator of a source of contaminants or release of contaminants that may cause water pollution must obtain a Certificate of Approval to Operate. The Certificate of Approval to Operate defines the terms and conditions that the operator of the source must comply with in order to remain in compliance with the Regulation and to prevent pollution of the waters of the Province. The terms and conditions are specific to the operation in question and are determined by NBDOE on a case- by-case basis. An effluent sampling and analysis program is typically required and limits are imposed on concentrations of specific contaminants for that site. A copy of the current Approval to Operate I-6154 is attached in Appendix D. Provincial requirements for conducting Environmental Effects Monitoring ("EEM") studies are also mandated by the Certificate Approval to Operate and a Baseline Aquatic Survey for EEM was conducted in the fall of 2008. to fulfill this condition.

Air Quality Approvals Regulation 97-133: This regulation was implemented under the Clean Air Act and is analogous to Water Quality Regulation 82-126 in that the NBDOE requires that any operator of a source of contaminants or release of contaminants to the air that may cause air pollution must obtain a Certificate of Approval to Operate. The Mount Pleasant property currently does not require any Approvals under the Clean Air Act, as there are no sources of contaminants being released to the air on the site. If, during the project, one or more sources of emissions to the air are installed (e.g. boilers, kilns, vent scrubbers, etc.), an Approval will be required.

Environmental Impact Assessment (EIA) Regulation 87-83: The EIA Regulation 87-83 is administered by NBDOE under the Clean Environment Act and is intended to assure that all "undertakings" in the Province are identified, reviewed and that any potential adverse environmental effects associated with the proposals are mitigated in advance of their implementation. The term, "undertakings" includes proposed construction, operation, modification, extension, abandonment, demolition or rehabilitation of projects or activities as described in Schedule A of the Regulation. The proposed activities for resuming production at Mount Pleasant from the North Zone will have to be registered under the EIA Regulation, which requires that a registration document (report) be prepared and submitted to NBDOE for a Determination Review. The registration document must i) describe the project in a sufficient level of detail to allow for a full technical review and, ii) assess all potential environmental impacts and

Mining Act (Chapter M-14.1): The Mining Act is administered by the New Brunswick Department of Natural Resources (NBDNR) and provides the legislative framework for regulation of all activities related to exploitation of mineral resources in New Brunswick. This Act addresses all issues related to prospecting, exploration, drilling, claim staking, ownership and allocation of minerals, land use, royalties, documentation of mining operations, damage and securities. The requirement for a person or company to produce a Feasibility Study, apply for a Mining Lease, produce a Reclamation Plan and provide NBDNR with a Reclamation Bond prior to producing minerals from a mineral claim is regulated through the New Brunswick Mining Act.

Petroleum Product Storage and Handling Regulation 87-97: The regulation requires that the storage of petroleum products in excess of 2,000 litres on a site requires a licence to assure that petroleum products are stored in a safe manner in a registered storage vessel. The Mount Pleasant site does not currently hold any Petroleum Storage Site licences; however, it will require licences and a certificate of insurance for proposed propane storage, diesel fuel storage and Bunker C fuel oil storage (for boilers, if required).

Crown Lands and Forests Act (C-38.1): Administered by NBDNR, this act provides legislation for activities related to development, utilization, protection and management of resources located on Crown Lands. The Crown Lands and Forests Act does not apply to the Mount Pleasant property, which is wholly owned by Adex Mining Inc.

Other Provincial Acts and Regulations: Other Provincial acts and regulations that may apply to the care and maintenance, construction, pre-production and prospective operation of the Mount Pleasant property include:

 Water Classification Regulation (NB Regulation 2002-13 under the Clean Water Act)  Watershed Protected Area Designation Order (NB Regulation 2001-83 under Clean Water Act)  Wellfield Protected Area Designation Order (NB Regulation 2000-47 under Clean Water Act)  Potable Water Regulation (NB Regulation 93-203 under Clean Water Act)  Fees for Industrial Approvals Regulation (NB Regulation 93-201 under Clean Water Act)  Protected Area Exemption Regulation (NB Regulation 90-120 under Clean Water Act)  Watercourse and Wetland Alteration Regulation (NB Regulation 90-80 under Clean Water Act)  Water Well Regulation (NB Regulation 90-79 under Clean Water Act)  Used Oil Regulation (NB Regulation 2002-19 under Clean Environment Act)  Public Participation Regulation (NB Regulation 2001-98 under Clean Air Act)  Ozone Depleting Substances Regulation (NB Regulation 97-132 under Clean Air Act)

All of the above referenced Provincial Acts and Regulation are available to be viewed on the government of New Brunswick website at http://www.gnb.ca/0062/acts/acts-e.asp.

21.4.2 Federal Regulations and Permits

The following is a summary of legislation, regulations and required permits that are administered at the Federal level in Canada and which may be applicable to the care and maintenance of the site and to any activities related the potential future operation of the mine.

Federal Fisheries Act: The Fisheries Act is jointly administered by both Environment Canada and the Department of Fisheries and Oceans Canada ("DFO") and provides legislation to protect aquatic environments, fish and fish habitat from the harmful effects of pollutants, termed "deleterious substances" in the Act. Deleterious substances can be interpreted to include a broad scope of materials, but is typically considered to be any substance (e.g. industrial effluent, tailings, refuse, etc.) that is or has the potential to be acutely lethal to fish. The Act also contains provisions for preventing the harmful alteration, disruption or destruction of fish habitat and enables DFO to impede "undertakings" or work that proposes to do this. Where the harmful alteration, disruption or destruction of fish habitat cannot is proposed in the execution of an undertaking, DFO requires that the Owner complete an Environmental Assessment under the Canadian Environmental Assessment Act ("CEAA"). The outcome of such an assessment may require the Owner to implement certain measures and/or adhere to certain conditions to mitigate these effects, or the undertaking may be completely blocked from proceeding in the manner proposed.

The existing Tailings Impoundment Area ("TIA") or Tailings Pond is a fully permitted, man-made and self-contained structure that was constructed by Billiton Exploration Canada Ltd in the early 1980's to support the mineral production operation. In 1981, Billiton obtained Approval to Construct (No. 22-15-8) a "waste stabilization pond" (a.k.a the Tailings Pond) as well as a Permit for Watercourse Alteration from the New Brunswick Department of Environment. In this regard, all issues of compensation, water diversions and other regulatory requirements related to the deposition of tailings in the TIA were settled by the previous Owner in the early 1980's. Since 1985, the site has been placed on care and maintenance and the TIA, which currently receives mine water effluent and is fully permitted under NBDOE Approval to Operate I-6154, has not changed in purpose or character since production was suspended.

Canadian Environmental Assessment Act: The requirement for completion of an Environmental Assessment under the federal Canadian Environmental Assessment Act ("CEAA") depends on the specific nature and scope of an undertaking as well as other factors such as i) sources of funding for the project, ii) permitting requirements, and iii) land requirements. In order for CEAA to apply the proposed undertaking must have a certain "trigger" under Section 5(1) of the Act. Triggers which could be applicable to the re-opening of the Mount Pleasant mine include:

 if a federal government department of agency is a proponent of the undertaking;  if funding for the project or other forms of financial assistance are to be provided by a federal government department or agency;  if the undertaking is to be constructed on federal lands or if federal lands must be transferred to allow the work to proceed; and,  if a permit, approval or authorization is required to be issued by a federal government department or agency to allow the project to proceed.

Canadian Environmental Protection Act: The Canadian Environmental Protection Act ("CEPA") is administered by Environment Canada and contains the Metal Mining Effluent Regulations ("MMER"), which is a federal guideline for maximum allowable contaminant concentrations for mining and ore processing facilities. For discharge of effluent to the environment, the MMER requires that:

 concentrations of deleterious substances in the effluent do not exceed the limits in Table 21-1;  the pH is between 6.0 and 9.5;  the effluent is not acutely lethal to fish;

Table 21-1: MMER Authorized Limits of Deleterious Substances

MAXIMUM AUTHORIZED MAXIMUM AUTHORIZED MAXIMUM AUTHORIZED DELETERIOUS MONTHLY MEAN CONCENTRATION IN A CONCENTRATION IN A SUBSTANCE CONCENTRATION COMPOSITE SAMPLE GRAB SAMPLE Arsenic 0.50 mg/L 0.75 mg/L 1.00 mg/L Copper 0.30 mg/L 0.45 mg/L 0.60 mg/L Cyanide 1.00 mg/L 1.50 mg/L 2.00 mg/L Lead 0.20 mg/L 0.30 mg/L 0.40 mg/L Nickel 0.50 mg/L 0.75 mg/L 1.00 mg/L Zinc 0.50 mg/L 0.75 mg/L 1.00 mg/L Total suspended solids 15.00 mg/L 22.50 mg/L 30.00 mg/L Radium 226 0.37 Bq/L 0.74 Bq/L 1.11 Bq/L

The MMER also defines specific conditions for depositing a deleterious substance in a Tailings Impoundment Area, including the requirement for the Owner to conduct Environmental Effects Monitoring ("EEM") studies. Refer to the Environment Canada website at http://www.ec.gc.ca/nopp/docs/regs/mmer/mmer.pdf to view the complete MMER. The Canadian Environmental Protection Agency also administers the National Pollutant Release Inventory (NPRI) and manages the Canadian Environmental Quality Guidelines, including the Canadian Water Quality Guidelines for the Protection of Aquatic Life, which can be applied to the release of industrial effluent to aquatic environments under certain circumstances.

21.5 Reclamation Plan

A scoping level reclamation plan approach was developed by Jacques Whitford as part of the Fire Tower Zone Scoping Study (Aker Solutions, 2008) that would meet the requirements of Regulation 86-98, Sections 30(2) and 30(3) under the provincial Mining Act. For the purpose of the North Zone Preliminary Assessment, it is assumed that a similar approach would be used for reclamation of the site following production from the North Zone. The following points summarize the goals and major processes associated with the reclamation plan developed by Jacques Whitford:

 removal and/or capping and revegetation of the majority of the physical features and structure associated with the site;  establishment of vegetation that will facilitate the natural recovery of the area for use by local wildlife;

 control and mitigation of site drainage issues from surface waste materials and underground openings;  control and mitigation of discharge water from the Tailings Impoundment Area;  permanent closure of mine portals, access ramps, raises by back-filling and installation of structurally engineered plugs;  removal of any environmentally hazardous materials from underground mine workings prior to closure;  flattening of the downstream portions of both the Diversion Dam and the Tailings Dam to improve long-term stability of the unmonitored dams following closure;  salvage of any equipment and building materials (e.g. processing equipment, mobile equipment, windows, doors, cable, transformers, etc.);  demolition of all light frame buildings;  demolition, removal and disposal of concrete structures and foundations;  removal of any on-site power lines and electrical equipment; and,  implementation of a post-closure monitoring and treatment program.

Jacques Whitford estimated that, based on the reclamation plan approach as outlined above for the FTZ Scoping Study, financial securities in the amount of CDN$2.87 million would be required for reclamation (Jacques Whitford, 2008b).

SECTION 22.0 MARKETS

22.1 Tin Concentrate

Pure tin is a silvery white soft, ductile and malleable metal that is most often recovered from cassiterite (SnO2) ores. Tin also occurs naturally in the form of complex sulphide minerals such as stannite (Cu2FeSnS4) and cylindrite (Pb3Sn4FeSb2S14); however, the complex nature of these minerals presents significant technical challenges for upgrading of the tin due to low selectivity for tin over copper and iron in conventional gravity or flotation circuits. The majority of the tin ore within the Mount Pleasant property's North Zone is present as cassiterite.

Thibault & Associates Inc. has identified a conceptual flowsheet for the primary upgrading of cassiterite ore to produce a tin concentrate product with grade based on a wide range of typical end user quality guidelines. Revenue potential calculated in Section 27.0 is based on production of tin concentrate to meet the typical product quality specifications presented in Table 22-1.

Table 22-1: Tin Concentrate Product Grade Estimate Used for Preliminary Assessment

VALUE SPECIFICATION PARAMETER UNITS MIN MAX Tin % Sn 46.0 --

Moisture % H2O -- 5.000

Silica % SiO2 -- 15.000 Iron % Fe -- 1.270 Sulfur % S -- 1.230 Copper % Cu -- 0.370 Lead % Pb -- 0.010 Zinc % Zn -- 0.620 Arsenic % As -- 1.260 Antimony % Sb -- 0.010

Tungsten % WO3 -- 0.310 Molybdenum % Mo -- 0.000 Bismuth % Bi -- 0.080 Thorium02 + Uranium308 % Th02 + U308 -- 0.300 Fluorine % F -- 0.500

The major uses of tin are in the production of solders, tin plate, tin chemicals, bronze and brass as illustrated in Figure 22-1.

Other, 9.2% (33,500 tonne/year)

Float Glass, 2.1% (7,700 tonne/year)

Bronze and Brass, 5.5% (19,900 tonne/year)

Chemicals, 13.9% (50,600 tonne/year) Solders, 52.9% (192,100 tonne/year)

Tinplate, 16.4% (59,400 tonne/year)

Reference: International Tin Research Institute (ITRI) w ebsite at w w w .itri.co.uk

Figure 22-1: World Refined Tin Consumption by Application

The world mine production of tin by country is presented in Figure 22-2. Planned annual production from the proposed Mount Pleasant operation at 850 tonne of ore per day (basis for nameplate capacity) equates to 1,486 tonne/year of contained tin, or 0.49% of the total annual world mine production in 2007.

Other, 5.4% Bolivia, 5.9% (16,100 tonne/year) (18,000 tonne/year) Brazil, 4.0% Russia, 1.3% (12,000 tonne/year) (4,000 tonne/year)

Peru, 12.5% (38,000 tonne/year)

China, 42.9% (130,000 tonne/year) Indonesia, 28.0% (85,000 tonne/year)

Reference: USGS Tin Commodity Summary, 2008

Figure 22-2: World Mine Production of Tin by Country

Prospective buyers of tin concentrates can be grouped into three major categories:

 commodity traders;  smelters, and;  manufacturers of tin end use products (solder, tinplate and tin chemicals industry).

The main differences between the three prospective buyer categories are i) allocation of marketing and sales responsibilities and ii) price structure. Smelters typically offer two options for processing concentrates:

 toll processing - where a set percentage (net smelter return) of the refined tin is available for direct sale to an end user by the owner, in which case the owner is responsible for marketing and shipping of the refined tin to the purchaser.  direct sale of contained tin in concentrates to the smelter, in which case the smelter is responsible for marketing and shipping of the final product to an end user.

For the purpose of the subject preliminary assessment, only commodity traders and smelters have been identified. The following is a non-exhaustive list of well-established prospective buyers for tin concentrate. There are currently no tin smelting facilities in North America.

Smelters:  Malaysia Smelting Corporation (Malaysia)  Yunnan Tin (China)  PT Timah (Indonesia)  Thaisarco (Thailand)  Liuzhou China Tin (China)  Minsur (Peru)

Commodity Traders:  Amalgamated Metal Corporation (AMC) Trading Group (Worldwide)  China Minmetals (China)  RJH Trading Ltd. (England)  Glencore International (Worldwide)  Trafigura Beheer (Worldwide)  Metmar Limited (South Africa)  Marco International (United States)

The quality specifications and value of the concentrate as defined for the preliminary assessment is not based on end user contractual agreement.

A formal contract or off-take agreement with an end user will typically include a smelter schedule that defines the terms of the purchase agreement and sets the basis for calculation of treatment charges, penalty charges, unit deductions and/or price discounts relative to the concentrate quality.

Various smelters were contacted in order to formulate the preliminary smelter schedule terms that were used as the calculation basis for estimation of revenue potential from tin concentrate for the Mount Pleasant North Zone preliminary assessment. These terms are described in detail in Section 27.0.

The three-year average Kuala Lumpur Tin Market ("KLTM") tin price spanning from September, 2006, to August, 2009, has been calculated as CDN$16.25/kg. Dynamic charting of the KLTM monthly average tin price for this time period is given by Figure 22-3.

KLTM Price Trend for Tin Metal (CDN$/kg) 3-Year Trend (September 2006 - August 2009) $30.00

$25.00

3-Year Average Plus 35% = CDN$21.94/kg

$20.00

3-Year Average KLTM Price of CDN$16.25/kg

$15.00

3-Year Average Minus 35% = CDN$10.56/kg Tin Price (CDN$/kg) Price Tin $10.00

$5.00

$0.00

6 7 7 7 7 8 8 8 9 9 9 0 -08 0 -0 0 09 l-07 v-0 p-0 Ju ep-0 Jul-08 ar-0 ay-0 Jul- Sep- Nov-06 Jan-07 Mar-0 May-0 S No Jan Mar- May Sep- Nov-08 Jan-09 M M Se

Figure 22-3: Dynamic Three-Year Price Chart for Tin

For the purpose of the Mount Pleasant North Zone preliminary assessment, a base case life-of- mine tin price of CDN$16.25/kg Sn was adopted based on the three-year trailing average from September, 2006, to August 2009, of the KLTM price. A life-of-mine forecast pricing structure has not been determined and Thibault & Associates Inc. offers no opinion on expected price trends or floor values going forward. Plus or minus 35% of the base case metal price was selected as an adequate range for assessment of the cash flow sensitivity with respect to fluctuating metal prices. This range is equivalent to a low price of CDN$10.56/kg Sn and a high price of CDN$21.94/kg Sn.

22.2 Tin Chloride

Tin chloride, or tin chloride anhydrous (chemical formula SnCl2) is a white crystalline, inorganic tin chemical that is typically produced from tin scrap, but in this case, will be produced from low- grade tin concentrates as explained in Section 19.0. Tin chloride is a strong reducing agent that finds applications in pharmaceutical manufacturing; catalysts; thin film plating of electrical conductors; glass and paper manufacture; production of dyes, polymers, phosphors and textiles; tin galvanizing; silvering mirrors; as a stabilizer in perfumes and soaps; and in soldering fluxes. Typical product specifications for tin chloride anhydrous were obtained from several well- established tin chemical producers and are given in Table 22-2.

Table 22-2: Typical Product Specifications for Tin Chloride Anhydrous

VALUE SPECIFICATION PARAMETER UNITS MIN MAX Tin wt% Sn 61.35 62.6

Tin Chloride wt% SnCl2 98.00 100.00 Lead wt% Pb 0.003 (typ.) 0.01 Copper wt% Cu 0.0005 (typ.) 0.001 Antimony wt% Sb 0.003 (typ.) 0.005 Iron wt% Fe 0.003 (typ.) 0.005

Specific production and consumption data for tin chloride anhydrous is not published; however, the global consumption of primary tin for production of tin chemicals in general is reported to be in the range of 40 to 44,000 tonnes per year (RTM Ltd., 2006). In the United States, consumption of primary tin for production of tin chemicals was reported as 9,290 tonnes in 2006 and 6,070 tonnes in 2007 (USGS Minerals Yearbook - Tin, 2007). US consumption of secondary tin (i.e. scrap, recycled tin) for production of tin chemicals is "withheld to avoid disclosing company proprietary data" (USGS Minerals Yearbook - Tin, 2007).

Planned annual production of tin chloride from the proposed Mount Pleasant operation at 850 tonne of ore per day nameplate capacity equates to 1,327 tonne/year of contained tin, or 3.0% of the annual global consumption of primary tin for production of tin chemicals reported by RTM Ltd.

Potential buyers of tin chloride are generally end users that will utilize the product as a reducing agent in manufacturing processes, as a catalyst or in thin film plating processes; but could also be a chemical distribution company or a chemical trading company. Potential buyers of tin chloride have been identified as follows:

End Users:  Qingdao Best Glass Company Ltd. (China)  AGC Flat Glass (Europe)

Chemical Distribution Companies:  Brenntag (Canada)

Chemical Trading Companies:  Tianjin Kaiyuan Chemical Trading Company Ltd. (China)  Wuhan Star Trading Company Ltd. (China)  Todini & Company SPA (Italy)

Historical pricing of tin chloride is not available; however, tin chemical pricing is assumed to follow a similar trend as tin metal or tin scrap prices. Spot pricing for a 20-tonne bulk shipment of tin chloride anhydrous was obtained from two well-established tin chemical manufacturers during the month of August, 2009. Spot pricing for tin chloride was quoted as CDN$15.40/kg (US$6.35/lb) and CDN$21.80/kg (US$8.99/lb) 99% SnCl2 from the two suppliers, respectively. It was noted that the lower of the two prices equates to CDN$24.85 per kilogram of contained tin or just over 150% of the spot Kuala Lumpur Tin Market tin metal price for August, 2009.

For the purpose of calculating product revenue for the tin chloride anhydrous (SnCl2) product for the Mount Pleasant North Zone preliminary assessment, a base case life-of-mine tin chloride

price of CDN$15.23/kg 99% SnCl2 or CDN$24.57 per kilogram of contained tin was adopted, which corresponds to approximately 150% of the three-year average tin metal pricing assumed as the base case for the production of tin concentrate. High and low-end product pricing for analysis of cash flow sensitivity was again based on taking plus / minus 35% of the base case tin chloride price. The estimated range for sensitivity analysis is equivalent to a low price of

CDN$9.90/kg 99% SnCl2 and a high price of CDN$20.56/kg 99% SnCl2.

Since, in this case, the product will be shipped directly to an end user, it has been assumed that this pricing represents the gross revenue received by the mine for tin chloride and no price discounts or penalty charges have been included in the product revenue calculations described in Section 27.0.

22.3 Indium Bearing Zinc Concentrate

Pure zinc is a bluish to pale grey transition metal, which is valued for its hardness, relatively high corrosion resistance, strength and ductility. Zinc is primarily recovered from sphalerite (ZnS) ores, but also occurs naturally in the form of marmatite - a zinc-iron sulphide, smithsomite (zinc carbonate) or hemimorphite (zinc silicate).

Thibault & Associates Inc. has reviewed options for a sequential flotation process for production of an indium-bearing zinc concentrate by selective recovery of the sphalerite mineralization in the North Zone ore. The conceptual design of the sequential flotation process is intended to produce a zinc concentrate enriched in indium having typical product grade based on meeting a wide range of end user quality guidelines. The product revenue calculated in Section 27.0 is based on production of zinc concentrate to meet the typical product quality specifications presented in Table 22-3.

Table 22-3: Zinc Concentrate Product Grade Estimate Used for Preliminary Assessment

VALUE SPECIFICATION PARAMETER UNITS MIN MAX Zinc % Zn 50.0 -- Indium % In 0.49 [1] --

Moisture % H2O -- 8.000

Silica % SiO2 -- 10.000 Iron % Fe -- 8.000 Lead % Pb -- 1.090

Molybdenum % MoS2 -- 0.600 Tin % Sn -- 0.820 Arsenic % As -- 0.910

Aluminum % Al2O3 -- 0.400 Cadmium % Cd -- 0.250 Copper % Cu -- 0.350 Calcium % CaO -- 0.100 Magnesium % MgO -- 0.100 Manganese % MnO -- 0.050

Tungsten % WO3 -- 0.090 Chromium % Cr -- 0.005 Antimony % Sb -- 0.005 Bismuth % Bi -- 0.670 Chlorine ppm Cl- -- 500

VALUE SPECIFICATION PARAMETER UNITS MIN MAX Fluorine ppm F- -- 20

Table Notes: [1] Indium grade of 0.49% in zinc concentrate is based on conceptual process design criteria and recoveries as defined in Section 19.0.

The major application sectors of zinc are in steel galvanizing; brass manufacture; zinc metal alloys used in die casting; manufactured products (e.g. metal roofing, eavestrough, etc.); zinc compounds and zinc chemicals used in vulcanized rubber and manufacture of ceramics, rubber, paint and pharmaceuticals; and in the manufacture of zinc-based batteries. The distribution of primary zinc demand by use is illustrated in Figure 22-4.

Other, 4.0% (0.5 MM tonne/year) Manufactured Products, 7.0% (0.8 MM tonne/year)

Zinc Compounds & Chemicals, 7.0% (0.8 MM tonne/year)

Steel Galvanizing, 47.0% (5.4 MM tonne/year)

Zinc-Based Alloys & Die Casting, 16.0% (1.8 MM tonne/year)

Brass, 19.0% (2.2 MM tonne/year)

Reference: International Zinc Association website at www.zincworld.org

Figure 22-4: Global Zinc Consumption by End-Use

The world mine production of zinc by country is presented in Figure 22-5. Planned annual production from the proposed Mount Pleasant operation at 850 tonne of ore per day nameplate capacity equates to 4,329 tonne/year of contained zinc or 0.04% of the total annual mine production in 2008. 42.4 tonne/year of contained indium (calculated at 4N8 purity) is co-produced and sold with the zinc concentrate.

Other, 25.1% Kazakhstan, 3.7% (2.84 MM tonne/year) (0.42 MM tonne/year)

Mexico, 4.1% (0.46 MM tonne/year)

Canada, 5.8% (0.66 MM tonne/year)

United States, 6.8% (0.77 MM tonne/year)

Peru, 12.8% (1.45 MM tonne/year) China, 28.3% (3.20 MM tonne/year)

Australia, 13.4% (1.51 MM tonne/year)

Reference: USGS Zinc Commodity Summary, 2008

Figure 22-5: World Mine Production of Zinc by Country

Prospective buyers of zinc concentrates can be grouped into two major categories:

 commodity traders;  smelters, and;  manufacturers of zinc end products (steel industry, brass manufacturers, die-casting industry).

 toll processing - where a set percentage (net smelter return) of the refined zinc is available for direct sale to an end user by the owner, in which case the owner is responsible for marketing and shipping of the refined zinc to the purchaser.  direct sale of contained zinc in concentrates to the smelter, in which case the smelter is responsible for marketing and shipping of the final product to an end user.

For the purpose of the preliminary assessment, only prospective buyers within the first two categories have been identified. The following is a non-exhaustive list of well-established prospective buyers for indium-bearing zinc concentrate.

Smelters:  Xstrata Kidd Creek (Ontario, Canada)  Teck Cominco (British Columbia, Canada)  Chelyabinsk Zinc (Russia)  Laibin Smeltery (China)  Dowa Mining (Japan)  Korea Zinc (Korea)  Lundin Mining (Portugal)  Mitsui Mining (Peru)  Nyrstar

Commodity Traders:  Amalgamated Metal Corporation (AMC) Trading Group (Worldwide)  Glencore International AG (Worldwide)  Euromin SA / Vitol (Worldwide)  ANI Metal and Chemicals (Turkey)  Ocean Partners (United States)  Traxys (Belgium)  Marco International (United States)

As was the case for tin concentrate, a formal contract or off-take agreement with an end user for zinc concentrate would include a smelter schedule that defines the terms of the purchase agreement and sets the basis for calculation of treatment charges, penalty charges, premiums paid for payable metals in the concentrate (e.g. silver, gold, platinum, indium), unit deductions and/or price discounts relative to the concentrate quality.

Typical smelter schedules for several zinc smelters were obtained and used to define the terms for estimation of the revenue potential from indium bearing zinc concentrate for the Mount Pleasant North Zone preliminary assessment. These terms are described in detail in Section 27.0, along with calculation of the revenue potential from the sale of this product.

For the North Zone preliminary assessment, the cash flow model described in Section 27.0 was generated using the pricing structure as defined herein. The three-year average London Metal Exchange ("LME) cash settlement zinc price has been calculated as CDN$2.70/kg. Dynamic charting of the LME monthly average cash settlement zinc price for the past three years is given by Figure 22-6.

Price Trend for Zinc Metal (CDN$/kg) 3-Year Trend (September 2006 - August 2009) $6.00

$5.00

$4.00 )

3-Year Average Plus 35% = CDN$3.65/kg

$3.00

3-Year Average Price of CDN$2.70/kg Zinc Price (CDN$/kg Price Zinc $2.00

3-Year Average Minus 35% = CDN$1.76/kg

$1.00

$0.00

7 0 Jul-07 Jul-08 Jul-09 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Sep-07 Nov- Jan-08 Mar-08 May-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Sep-09

Figure 22-6: Dynamic Three Year Price Chart for Zinc Metal

For the purpose of the Mount Pleasant North Zone preliminary assessment, a base case life-of- mine zinc price of CDN$2.70/kg Zn was adopted based on a three-year average of the LME price. A life-of-mine forecast pricing structure has not been determined and Thibault & Associates Inc. offers no opinion on expected metal price trends or floor values going forward. Plus or minus 35% of the base case metal price was selected as an adequate range for assessment of cash flow sensitivity to metal pricing. This estimated range for sensitivity analysis is equivalent to a low price of CDN$1.76/kg Zn and a high price of CDN$3.65/kg Zn (zinc prices exceeded the "high- end" for 11 consecutive months from September, 2006 to August, 2007).

Dynamic charting of the monthly average settlement value for 4N grade (99.99% In) indium ingot, as published by MinorMetals.com, is given by Figure 22-7.

Price Trend for 99.99 Indium Ingot (CDN$/kg) 3-Year Trend (September 2006 - August 2009) $1,400.00

$1,200.00

$1,000.00

) 3-Year Average Plus 35% = CDN$863.55/kg

$800.00

3-Year Average Price of CDN$639.67/kg

$600.00 Indium Price (CDN$/kg Price Indium

$400.00 3-Year Average Minus 35% = CDN$415.79/kg

$200.00

$0.00

9 9 -06 08 ep-06 Jul-07 Jul-08 Jul-0 S Nov Jan-07 Mar-07 May-07 Sep-07 Nov-07 Jan-08 Mar- May-08 Sep-08 Nov-08 Jan-09 Mar-09 May-0 Sep-09

Figure 22-7: Dynamic Three Year Price Chart for 99.99% Indium Ingot

Based on the three-year trailing average, the base case life-of-mine indium price was selected as CDN$639.67/kg for 4N grade. Plus or minus 35% of the base case indium price was determined to represent an adequate range for assessment of cash flow sensitivity to metal price. This estimated range for sensitivity analysis is equivalent to a low price of CDN$415.79/kg and a high price of CDN$863.55/kg.

For zinc concentrate grading 50.0 wt% zinc and 0.49 wt% indium, and penalty elements estimated as per Table 22-3, the revenue potential is defined in Section 27.0.

22.4 High Grade Zinc Metal

With the addition of a hydrometallurgical processing circuit as described in Section 19.0, zinc metal plate would be produced on site for direct sale to an end user or metal trader. Product specifications as defined by the London Metal Exchange for special high grade zinc are given in Table 22-4.

Table 22-4: LME Specifications for Special High Grade Zinc Metal

VALUE SPECIFICATION PARAMETER UNITS MIN MAX Nominal zinc content wt% Zn 99.995 -- Lead wt% Pb -- 0.003 Cadmium wt% Cd -- 0.003 Iron wt% Fe -- 0.002 Tin wt% Sn -- 0.001 Copper wt% Cu -- 0.001 Aluminum wt% Al -- 0.001 Total of all impurities wt% -- 0.005

As defined previously, annual global consumption of zinc metal in 2008 was approximately 11.3 million tonnes. Planned annual production of high grade zinc metal from the proposed Mount Pleasant operation at 850 tonne per day of ore nameplate capacity equates to 4,056 tonne/year, or 0.036% of the annual world primary zinc production.

For the purpose of calculating product revenues from production of zinc plate for the Mount Pleasant North Zone preliminary assessment, the same zinc metal pricing structure that is used to calculate revenue potential from zinc concentrate will be used for the base case (CDN$2.70/kg Zn), low (CDN$1.76/kg Zn) and high (CDN$3.65/kg) price cases. Since, in this case, the product will be sold directly to an end user, it has been assumed that this pricing represents the gross revenue received by the mine for electrolytic grade zinc (minimum purity of 99.5%) and no price discounts, penalty charges or refining charges have been included in the product revenue figures calculated in Section 27.0.

22.5 Indium Sponge

Indium is a soft, ductile, low melting point metal with a bright lustre that predominately occurs in nature in association with sphalerite (ZnS) mineralization at concentrations of less than 100 parts per million in the ore.

Indium sponge of 95% purity is intended to be co-produced from the hydrometallurgical circuit as described in Section 19.0, and will allow for the direct sale of a separate, higher value indium product to an end user. The major consumer use of indium is for production of transparent conductive indium-tin oxide ("ITO") coatings used in the manufacture of LCD, flat panel, touch screen and plasma displays for televisions, computers and hand-held electronic devices. Other major uses are for production of indium compounds and chemicals, as an alloy in low melting point solders and in the manufacture of semi-conductors. A typical breakdown of indium consumption by end-use is shown in Figure 22-8.

Indium Compounds & ITO Manufacturing, 83.0% Chemicals, 9.0% (423.3 tonne/year) (45.9 tonne/year)

Alloys / Solder, 5.0% (25.5 tonne/year)

Semi-conductors, 3.0% (15.3 tonne/year)

Reference: Asian Metal Ltd.

Figure 22-8: Global Indium Consumption by End Use

Annual global production of refined indium (i.e., minimum 99.99% In) in 2008 was reported as 568 tonnes by the US Geological Survey's Annual Indium Mineral Commodity Summary and is broken down by country in Figure 22-9. Planned annual production of indium sponge of minimum 95% purity from the proposed Mount Pleasant operation at 850 tonne per day nameplate capacity is 40.5 tonne/year, which is equivalent to 38.5 tonne/year at 99.99% purity, or 6.8% of the annual global production of refined indium reported in 2008.

Japan, 10.6% (60 tonne/year)

Canada, 8.8% (50 tonne/year)

China, 58.1% Korea, 8.8% 330 tonne/year) (50 tonne/year)

Belgium, 5.3% (30 tonne/year)

Russia, 2.1% (12 tonne/year)

Peru, 1.1% (6 tonne/year)

Other, 5.2% (30 tonne/year)

Reference: USGS Mineral Commodity Summary - Indium 2008

Figure 22-9: Global Refined Indium Production by Country

The indium sponge would be pressed into blocks, packaged and stacked on pallets for shipment to a buyer who would typically be a processor with electro-refining capabilities for upgrading the indium sponge into high-grade indium metal ingot and/or indium end use products that are marketed directly by the processor. Potential buyers of indium sponge have been identified as follows:

End Users/Processors:  Indium Corporation of America (New York, United States)  Umicore Group (Belgium)  MCP Metalspecialties Inc. (Connecticut, United States)  ESPI Corporation (Oregon, United States)  AIM Specialty Materials Division (Rhode Island, United States)

Typical product specifications for indium sponge have not been fully defined; however, 95% minimum indium content is considered typical and potential end users have indicated that arsenic, cadmium and thallium are the primary impurities of concern and special care should be taken in designing the process to assure that these elements are removed from the leach solution as completely as possible prior to the indium cementation stage. Other elements of concern may also include lead, tin and copper.

A definitive pricing structure for indium sponge has also not yet been agreed upon; however, some well-established end users were able to provided Adex with typical values of i) price

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 22-16 discount used in long-term off-take contract agreements, ii) refining charges for upgrading 95% to 99% indium sponge to 4N8 grade indium metal and iii) refining yield, which are described in detail in Section 27.0.

For the purpose of calculating base case product revenues and analysis of cash flow sensitivity, the same base case (CDN$639.67), low price case (CDN$415.79) and high price case (CDN$863.55) per kilogram of 4N grade indium ingot were used as for the indium-bearing zinc concentrate product.

SECTION 23.0 CONTRACTS

At this time no contracts have been tendered or awarded for mining, concentrating, smelting, handling, sales, hedging or forward sales of products from the proposed Mount Pleasant concentrator or hydromet process. Terms used for calculation of revenue potential for cash flow analysis are described in detail in Section 27.0 and are considered to be typical of industry standards based on discussions with end users and commodity traders in the tin, zinc and indium sectors.

SECTION 24.0 TAXES

24.1 Federal and Provincial Income Tax

The general corporate income tax rates for Canadian controlled private corporations were taken from the Federal and Provincial 2009 budgets as summarized in Table 24-1.

Table 24-1: Federal and Provincial Income Tax Rates

JURISDICTION EFFECTIVE DATE TAX RATE Federal July 1, 2012 15.0% Provincial January 1, 2012 8.0%

Based on current regulations, depreciable and depletable expenditures prior to commercial production are deductible against income, until the un-depreciated capital cost balance is drawn down to zero. All of the mine and process pre-production capital cost has been treated as a depreciable and depletable expenditure. The general capital cost allowance was taken as 25% of the un-depreciated capital cost balance or the income before tax, whichever is the lesser amount. An accelerated capital cost allowance up to 100% of the remaining capital cost balance was then used to offset any remaining income for that tax year. The total of the general and accelerated capital cost allowance cannot exceed the annual income such that a loss is created. The federal and provincial income taxes were assessed on the net income after the capital cost allowances and mining tax were deducted.

The simplified income tax calculations used in the economic model are based only on the capital cost allowance and no deductions were considered for other tax credits such as: carry forward of losses from any tax years prior to production, Canadian development expenses and Canadian exploration expenses.

24.2 Mining Tax

The mining tax was calculated according to the New Brunswick Metallic Minerals Tax Act dated March 30, 2007 including the associated forms and schedules for mining tax returns. The mining tax is a total of two contributions:

 2% of net revenue  16% of net profits greater than $100,000 less other eligible process research expenditures.

Net revenue before processing allowance ("NRBPA") is calculated as gross revenue less process operating costs and transportation costs for product sold. Net revenue is calculated as the greater of 75% of NRBPA or NRBPA less 8% of the original capital cost of all assets used for processing.

The net profit is calculated as gross revenue less operating costs for administration, mining and processing, less net revenue tax, less depreciation allowance for mine and processing assets, less a processing allowance of 8% of the original capital cost of processing assets, all within the prescribed limits. The depreciation allowance was maximized each year until it is depleted so that mining tax on net profit is minimized initially in the project.

SECTION 25.0 CAPITAL COST ESTIMATES

25.1 Capital Cost Estimate Basis

The capital cost estimate includes all direct and indirect costs up to the point that the plant is commissioned and ready for operation. This includes all costs for purchase and delivery of equipment, installation by local contractors, engineering, construction management and commissioning. Prior sunk costs, owner's costs, and deferred or sustaining capital costs are not included. The capital cost estimate is based on factored estimating methods where the process equipment purchase cost is defined by vendor budget quotes and all remaining direct and indirect cost items are derived by applying a factor relative to the process equipment purchase cost. All factors used for the preliminary assessment were based on similar metallurgical projects. A detailed breakdown of the capital costs for all three production scenarios is given by Appendix E.

The conceptual process flowsheets included in Appendix B were used to define process equipment requirements. An equipment sizing and costing model was developed to calculate the cost of each piece of process equipment for a user-entered plant run-of-mine ore processing capacity. The initial capital cost estimates were prepared for a range of process plant sizes from 250 to 1000 tonne/day run-of-mine ore. Based on the available mineable resource estimate at target grades defined in Section 17.0, it was concluded that a plant capacity of 850 tonne/day run-of-mine ore operating for 10 years provided the best economy of scale. Further economy of scale improvement by increasing plant size would depend on definition of additional resources at the target grades.

Based on the level of definition of the project, the preliminary factored capital cost estimate is considered to be class IV according to the Association for the Advancement of Cost Engineers ("AACE") under guidelines 17R-97 (article AACE.05) with an estimated accuracy in the range of - 10% +35%. The preliminary capital cost estimate is based upon the following:

 Processing plant nominal design capacity of 850 tonne/day run-of-mine ore.  Current and previous vendor quotes for process equipment adjusted to first quarter 2009 Canadian dollars based on the Marshall & Swift Mine and Mill cost indices.  Currency exchange rate of $1.10 Canadian Dollars = $1.00 US Dollars.

Mine development and mining equipment purchase installation costs were developed by Hara Mining Enterprises Inc. as defined in Section 18.0 and the costs were included in the overall pre- production capital cost presented in this section.

25.2 Capital Cost Estimate Summary

A summary of the capital cost breakdown for each of the three production options defined below is presented in Table 25-1.

Case A: Production of tin concentrate and zinc concentrate with contained indium. Case B: Production of tin concentrate, zinc metal, and indium sponge. Case C: Production of tin chloride, zinc metal, and indium sponge.

Table 25-1: Capital Cost Breakdown Summary for Different North Zone Processing Options

ITEM DESCRIPTION CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge DIRECT COSTS Process Equipment Purchase $6,833,281 $22,072,415 $30,813,970 Process Equipment Delivery $375,942 $659,733 $853,634 Process Equipment Installation $939,854 $1,649,333 $2,134,086 Process Piping Materials & Installation $1,879,709 $3,298,667 $4,268,172 Process Control Systems & Instrumentation $1,503,767 $2,309,067 $2,560,903 Power Distribution $4,699,272 $5,277,867 $5,548,624 Instrumentation Wiring $312,032 $458,515 $529,253 Building, Foundation, Structure & Services $2,067,680 $6,597,334 $10,670,431 Analytical/Metallurgical Laboratory Equipment $250,000 $250,000 $250,000 Office Furniture & Equipment $30,000 $30,000 $30,000 Warehouse & Yard Management Equipment $120,000 $120,000 $120,000 Spare Parts for Process Equipment $187,971 $659,733 $853,634 Subtotal Direct Costs $19,199,507 $43,382,664 $58,632,710 INDIRECT COSTS Plant Engineering & Design $1,869,799 $3,257,815 $4,230,028 Procurement & Contract Management $183,864 $320,352 $415,953 Construction Supervision & Field Cost $183,864 $320,352 $415,953 Plant Commissioning $249,307 $434,375 $564,004 Subtotal Indirect Costs $2,486,832 $4,332,894 $5,625,937 SUBTOTAL DIRECT AND INDIRECT COSTS $21,686,339 $47,715,558 $64,258,647 CONTINGENCY (15%) $3,252,951 $7,157,334 $9,638,797 TOTAL PROCESS PLANT & INFRASTRUCTURE $24,939,290 $54,872,892 $73,897,444 MINING, MINE INFRASTRUCTURE & CONTINGENCY $16,231,166 $16,231,166 $16,231,166 TOTAL PREPRODUCTION CAPITAL COST $41,170,456 $71,104,058 $90,128,610

Table Notes: [1] All costs are in Canadian Dollars.

The distribution of the overall preproduction capital cost for each of the three cases is illustrated in Figure 25-1 to Figure 25-3.

Process Equipment Installation, 2.63% Process Piping, 5.25% Process Equipment Delivery, 1.05% Process Control & Instrumentation, 4.20% Process Equipment Purchase, 19.09%

Power Distribution, 13.13%

Instrumentation Wiring, 0.87%

Building, Foundation, Structure & Services, 5.78%

Laboratory Equipment, 0.70%

Office Furniture & Equipment, 0.08%

Warehouse & Yard Management Equipment, 0.34% Spare Parts for Process Equipment, 0.53%

Mining, Mine Infrastructure, Plant Engineering & Design, 39.42% 5.22%

Plant Commissioning, 0.70% Procurement & Contract Construction Supervision & Management, 0.51% Field Cost, 0.51%

Figure 25-1: Case A Capital Cost Breakdown for Tin Concentrate and Zinc/Indium Concentrate Production

Process Equipment Process Equipment Delivery, Installation, 2.67% 1.07% Process Piping, 5.34%

Process Control & Instrumentation, 3.73%

Power Distribution, 8.54% Process Equipment Purchase, 35.70% Instrumentation Wiring, 0.74%

Building, Foundation, Structure & Services, 10.67%

Laboratory Equipment, 0.40%

Office Furniture & Equipment, 0.05%

Warehouse & Yard Management Equipment, 0.19% Spare Parts for Process Equipment, 1.07%

Plant Engineering & Design, 5.27%

Procurement & Contract Mining, Mine Infrastructure, Management, 0.52% 22.83% Construction Supervision & Plant Commissioning, 0.70% Field Cost, 0.52%

Figure 25-2: Case B Capital Cost Breakdown for Tin Concentrate, Zinc Metal and Indium Sponge Production

Process Equipment Delivery, 1.09% Process Equipment Installation, 2.72%

Process Piping, 5.45%

Process Control & Instrumentation, 3.27% Process Equipment Purchase, 39.32%

Power Distribution, 7.08%

Instrumentation Wiring, 0.68%

Building, Foundation, Structure & Services, 13.61%

Laboratory Equipment, 0.32%

Office Furniture & Equipment, 0.04%

Warehouse & Yard Management Equipment, 0.15% Spare Parts for Process Mining, Mine Infrastructure, Equipment, 1.09% 18.01% Plant Engineering & Design, Plant Commissioning, 0.72% 5.40% Procurement & Contract Construction Supervision & Management, 0.53% Field Cost, 0.53%

Figure 25-3: Case C Capital Cost Breakdown for Tin Chloride, Zinc Metal and Indium Sponge Production

25.3 Direct Cost

25.3.1 Process Equipment Purchase, Delivery and Installation

Process equipment purchase cost was based on a blend of new and used/refurbished process equipment for all cases. Process equipment costs were derived using both recent budget quotes from vendors and quotes on file previously obtained from vendors. An equation for capital cost as a function of the main equipment sizing/capacity parameter (e.g. tank volume) was developed for each piece of process equipment to allow an assessment of capital cost for various plant sizes using the simulation model. Used process equipment quotes were also obtained from vendors and from a database of past projects in order to develop a typical factor for used equipment cost relative to the new purchase option.

The capital cost presented includes used process equipment only for systems where this would be expected to have a minimum impact on the overall plant operating availability. Used equipment costs are estimates only and are based on refurbishment of the used equipment as required to be ready for service. Used equipment pricing and availability is subject to market conditions and therefore the availability of any used equipment or its price is subject to change.

Used process equipment was included extensively in the concentrator section of the plant. However, some new equipment was included in the following areas of the concentrator based on either the requirement to maintain plant availability or limited availability in the used equipment market:

 pump boxes and pumps  tanks and agitators

 centrifugal gravity separators  low and high intensity magnetic separators  flotation columns  screw conveyors

The tin chloride circuit uses mostly specialty equipment and, as such, all process equipment costing was based on new equipment with the exception of product filters, dryers and packaging equipment. Similarly, for the indium and zinc hydromet circuit, all process equipment costing was based on new equipment with the exception of filters. Tailings and wastewater treatment was based on new equipment costing except for the existing tanks and thickener which would be refurbished and reused for tailings treatment. All reagents and utilities systems were based on new equipment costs except for used boilers and refurbishment of the existing low pressure air blowers.

Spare parts costing was included in all cases based on a factor of the total purchase price of 100% new process equipment.

Costing for 100% installed spare capacity for pumps was only included in critical areas such as the grinding circuit and some of the indium/zinc hydromet circuit. Other process areas use one pump per service.

Delivery and installation of process equipment is a factored cost relative to the total purchase price of 100% new equipment for cases A through C. Detailed estimates of installation man-hours have not been completed for this study. The factors developed were based on installation by local contractors. Installation cost factors include costs for the contractor to set up temporary construction support facilities and storage areas.

The breakdown of the total process equipment cost by process area is shown in Table 25-2 and Figure 25-4 to Figure 25-6 for the three production cases.

Table 25-2: Distribution of Process Equipment Cost by Process Area For North Zone Processing Options

PROCESS AREA CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge Metallurgical Processing $5,015,897 $16,034,811 $24,126,783 Tailings and Wastewater Management $567,753 $2,693,856 $2,685,253 Process and Domestic Water $138,466 $310,164 $298,427 Utilities Systems $310,327 $1,428,166 $1,829,866 Reagent Systems $800,838 $1,605,418 $1,873,642 Subtotal Process Equipment Purchase Cost $6,833,281 $22,072,415 $30,813,970

Table Notes: [1] All costs are in Canadian Dollars.

Tailings and Wastewater Management, 8.31%

Process and Domestic Water, 2.03%

Utilities Systems, 4.54%

Concentrator, 73.40% Reagent Systems, 11.72%

Figure 25-4: Case A Equipment Cost Breakdown for Tin Concentrate and Zinc/Indium Concentrate Production

Tailings and Wastewater Management, 12.20% Indium/Zinc Hydromet, 50.22%

Process and Domestic Water, 1.41%

Utilities Systems, 6.47%

Reagent Systems, 7.27%

Concentrator, 22.42%

Figure 25-5: Case B Equipment Cost Breakdown for Tin Concentrate, Zinc Metal and Indium Sponge Production

Indium/Zinc Hydromet, 36.59%

Tailings and Wastewater Management, 8.71%

Process and Domestic Water, 0.97%

Utilities Systems, 5.94%

Reagent Systems, 6.08%

Tin Chloride Pyromet, 24.74%

Concentrator, 16.96%

Figure 25-6: Case C Equipment Cost Breakdown for Tin Chloride, Zinc Metal and Indium Sponge Production

25.3.2 Process Piping

The process piping materials and installation cost is not layout specific and a detailed materials take-off has not been completed. A percentage factor for installation of all new piping materials relative to the total process equipment purchase price for 100% new equipment has been used.

25.3.3 Power Distribution, Process Control, Instrumentation and Wiring

All electrical power distribution and disconnect and instrumentation/controls installation is based on new equipment pricing to assure compliance with codes and standards without modifications that may be required for used equipment. Electrical and controls equipment costing is based on a factor and confirmed by preliminary estimates relative to an electrical equipment list and material take-off for each production option.

25.3.4 Building, Foundation, Structure and Services

The existing concentrator building and the warehouse/office building will be reused and an allowance has been made for refurbishment as required and demolition and installation of new equipment foundations, support steel and platforms. Cost for building services in the concentrator, including heat, lights and domestic water are based on a cost for refurbishment.

Reuse of the administration building or sample lab/assay lab has not been included and therefore refurbishment costs of these areas are not included in the capital cost estimate.

25.3.5 Support Equipment

The capital cost estimate includes the cost for purchase of new analytical laboratory equipment and office furniture/computers for staff. There is also an allowance for the purchase of warehouse and yard equipment (e.g. forklift) for the operation.

25.3.6 Site Infrastructure

The following infrastructure items already exist in serviceable condition at the site and therefore no direct costs have been included:

 main access road, site roads, contouring and drainage  fuel storage  sewage disposal  communications  tailings disposal pond  power transmission to site  fire protection

25.4 Indirect Cost

25.4.1 Engineering, Procurement and Construction Management (EPCM)

Costs for plant engineering, equipment procurement and contract management, and construction supervision and field costs have been factored relative to the total direct costs for the purchase of 100% new process equipment. The factors used are lower than typical due to the use of the existing concentrator building. Costs in this section exclude mine design which is defined separately according to Section 18.0.

25.4.2 Plant Commissioning

The cost for start-up and commissioning the plant is included as a factored cost relative to the total direct cost based on 100% new process equipment.

25.5 Contingency

Based on the preliminary nature (conceptual) of the process design used in this study, the contingency provides an allowance for unforeseen changes in the capital cost within the project work scope as currently defined. The contingency covers presently undefined items of work or equipment or uncertainty in estimated quantities and unit prices for labour, equipment and materials. The contingency does not cover work scope changes, project exclusions or project execution strategy changes. The potential increase in capital costs is included as a contingency of 15% of the total direct and indirect costs (excluding mining) for a blend of new and used process equipment. The mining capital cost contingency is included separately as defined in Section 18.0.

25.6 Sustaining, Deferred and Working Capital Costs

Sustaining, deferred and working capital costs are not included in the pre-production capital cost presented in Table 25-1. No sustaining capital costs have been defined for the process or mine.

Working and deferred capital costs are included in the cash flow economic analysis presented in Section 27.0.

25.6.1 Working Capital

The working capital includes the cash on hand that is required during operations (processing only - mining costs excluded). Working capital is withdrawn at the end of the project. The following items are included:

 Accounts receivable (30 days)  Product inventory (15 days)  Salaries for operating and administration personnel (60 days)  Initial reagent fill (30 days)

25.6.2 Reclamation and Closure Costs

The requirements for reclamation and closure at the end of the operation are summarized in Section 21.0 with a total cost of CDN$2.87 million. No resale or salvage value was considered for any of the assets such as buildings or equipment at the end of the project.

25.7 Capital Cost Qualifications and Exclusions

25.7.1 Qualifications

 The capital cost estimate is based on the availability of used process equipment where included in the cost estimate.  Changes to the project execution strategy or timeline may impact the capital cost estimate.  Installation cost estimates are based on factored estimating methods and are not based on man-hour estimates for specific trades or material take-off.

25.7.2 Exclusions

The following cost items are not included in the capital cost estimate:

 Price escalation for materials, equipment or labour  Changes in project work scope definition  Interest charges during construction  Project financing costs  Currency exchange rate fluctuations  Costs for permits and fees  Costs for sludge disposal cell upgrade  Costs for refurbishment of existing administration building and former assay labs  Sunk costs (costs prior to this study)  Owner's costs (e.g. Owner's staff wages and office facility costs prior to production)  Sustaining capital costs  Deferred capital costs  Working capital costs (included with economic analysis)  Taxes and duties  Legal fees  Project or construction insurance

 Process royalty fees  Costs for exploration drilling programs  Metallurgical study costs and metallurgical test program costs  Preparation of feasibility study

SECTION 26.0 OPERATING COST ESTIMATES

26.1 Operating Cost Estimate Basis

The operating cost estimate includes labour, electrical power, fuel, reagents, consumables and administration costs for the operation of the mine, processing plant and site administration. A detailed breakdown of the operating costs for all three production scenarios is given by Appendix F.

Based on the level of definition of the project, the operating cost estimate is considered to be class IV according to the Association for the Advancement of Cost Engineers ("AACE") under guidelines 17R-97 (article AACE.05) with an estimated accuracy in the range of -10% +35%. The preliminary operating cost estimate is based upon the following:

 Processing plant nominal design capacity of 850 tonne/day run-of-mine ore.  Processing plant availability factor of 90%.  All costs are presented in first quarter 2009 Canadian dollars.  Currency exchange rate of $1.10 Canadian Dollars = $1.00 US dollars.

Mine operating costs were developed by Hara Mining Enterprises Inc. as defined in Section 18.0 and the costs were included in the operating cost estimate presented in this section.

26.2 Operating Cost Estimate Summary

A summary of the operating cost breakdown for each of the three production options defined below is presented in Table 26-1.

Table 26-1: Operating Cost Breakdown Summary for Different North Zone Processing Options

ITEM DESCRIPTION CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge ANNUAL OPERATING COST CDN$/year CDN$/year CDN$/year Mine Operating Cost [1] $8,382,413 $8,382,413 $8,382,413 Processing Operating Cost $8,866,208 $13,654,458 $20,719,698 Site Administration Operating Cost $504,000 $913,500 $1,407,000 Total Annual Operating Cost $17,752,621 $22,950,371 $30,509,112 OPERATING COST PER TONNE PROCESSED CDN$/tonne CDN$/tonne CDN$/tonne Mining Operating Cost $30.02 $30.02 $30.02 Processing Operating Cost $31.75 $48.90 $74.20 Site Administration Operating Cost $1.80 $3.27 $5.04 Total Operating Cost Per Tonne $63.58 $82.19 $109.26

Table Notes: [1] Annual mine operating cost based on average annual mill feed tonnage, accounting for mill availability.

26.3 Mine Operating Cost

The mine operating cost includes labour, diesel fuel and lubricants, propane, equipment rental, equipment maintenance, materials and supplies, electrical energy and ventilation. The basis for the mining operating cost estimate and the breakdown of the various contributions to the overall mining operating cost is included in Section 18.0.

26.4 Processing Operating Cost

The overall operating cost for processing the run-of-mine ore to saleable products consists of the individual contributions summarized in Table 26-2. The processing operating cost breakdown is also illustrated in Figure 26-1 to Figure 26-3.

Table 26-2: Breakdown of Processing Operating Cost

ITEM DESCRIPTION CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge ANNUAL PROCESS OPERATING COST CDN$/year CDN$/year CDN$/year Reagents $2,279,796 $3,291,681 $5,722,706 Concentrator Consumables $674,050 $674,050 $674,050 Power $1,278,639 $2,600,704 $2,648,954 No. 2 Fuel Oil $0 $1,686,818 $4,155,055 Labour $1,543,000 $2,436,000 $3,801,000 Maintenance Consumables $202,213 $521,185 $705,712 Support Laboratories $260,000 $490,000 $710,000 Health & Safety $17,000 $20,750 $26,750 Consultant Technical Support $77,000 $157,000 $257,000 Marketing & Sales $304,950 $620,628 $660,628 Packaging & Shipping $1,807,359 $505,429 $371,190 Contingency $422,200 $650,212 $986,652 Total Annual Process Operating Cost $8,866,208 $13,654,458 $20,719,698 PROCESS OPERATING COST PER TONNE CDN$/tonne CDN$/tonne CDN$/tonne Reagents $8.16 $11.79 $20.49 Concentrator Consumables $2.41 $2.41 $2.41 Power $4.58 $9.31 $9.49 No. 2 Fuel Oil $0.00 $6.04 $14.88 Labour $5.53 $8.72 $13.61 Maintenance Consumables $0.72 $1.87 $2.53 Support Laboratories $0.93 $1.75 $2.54 Health & Safety $0.06 $0.07 $0.10 Consultant Technical Support $0.28 $0.56 $0.92 Marketing & Sales $1.09 $2.22 $2.37 Packaging & Shipping $6.47 $1.81 $1.33 Contingency $1.51 $2.33 $3.53 Total Process Operating Cost Per Tonne $31.75 $48.90 $74.20

Maintenance Consumables, Support Laboratories, 3.1% 2.4% Health & Safety, 0.2% Labour, 18.3% Consultant Technical Support, 0.9%

Marketing & Sales, 3.6%

No. 2 Fuel Oil, 0.0%

Packaging & Shipping, 21.4%

Pow er, 15.1%

Concentrator Consumables, 8.0%

Reagents, 27.0%

Figure 26-1: Case A Processing Operating Cost for Tin Concentrate and Zinc/Indium Concentrate Production

Maintenance Consumables, Support Laboratories, 3.8% 4.0%

Labour, 18.7% Health & Safety, 0.2% Consultant Technical Support, 1.2% Marketing & Sales, 4.8%

Packaging & Shipping, 3.9%

No. 2 Fuel Oil, 13.0%

Reagents, 25.3%

Pow er, 20.0% Concentrator Consumables, 5.2%

Figure 26-2: Case B Processing Operating Cost for Tin Concentrate, Zinc Metal and Indium Sponge Production

Maintenance Consumables, Labour, 19.3% 3.6%

Support Laboratories, 3.6%

Health & Safety, 0.1% Consultant Technical Support, 1.3% Marketing & Sales, 3.3% Packaging & Shipping, 1.9%

No. 2 Fuel Oil, 21.1%

Reagents, 29.0%

Pow er, 13.4%

Concentrator Consumables, 34%

Figure 26-3: Case C Processing Operating Cost for Tin Chloride, Zinc Metal and Indium Sponge Production

26.4.1 Reagents

For each process option, the consumption of each reagent was calculated in the mass balance simulation based on theoretical consumptions or data from operations that have similar operating practices. Reagent costs were based on vendor budgetary quotes including delivery FOB the minesite.

26.4.2 Concentrator Consumables

Wear parts in the concentrator section of the process were accounted for using typical values for a crushing, grinding and flotation plant concentrator. Process specific consumption based on test data was not defined for the study. The concentrator consumables include wear parts for crusher liner and bowl, screen replacements, rod and ball mill liner replacements, rod and ball mill grinding media, and filter cloth. Pricing was based on budgetary quotations from vendors.

26.4.3 Electrical Power

Based on all the process equipment required, a motor and electrical load list was prepared for each process option. The average operating electrical load was estimated by defining the fraction of each day that each motor operates and the percentage of rated motor power consumed during operation. An average blended electrical power cost of CDN$80/MWh was used including the demand charge and the usage charge.

26.4.4 Fuel

No fuel is required in Case A for concentrate production only. In Cases B and C, a boiler is required for process steam and in Case C, fuel is used in a direct fired kiln and dryer for tin chloride production. All fuel usage is based on No. 2 Fuel oil and a price of CDN$0.90/L was used.

26.4.5 Labour

The labour cost for the processing facilities includes management and support staff, assay technicians, process operators (including labourers), and maintenance staff (including tradesmen and labourers). The number of employees required for each duty was based on 12 hour shift operations and typical operating productivities and maintenance requirements from similar operations. Management, support and technical staff work on day shift only. The labour costs were provided by Adex Mining Inc. and are based on non-unionized personnel employed by the owner and not contract labour services. The labour cost for each position includes base salary plus 20% for overhead and burden. The number of employees required for each production case is summarized in Table 26-3.

Table 26-3: Number of Employees Required for Processing Plant Operation

PERSONNEL CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge MANAGEMENT, SUPPORT AND TECHNICAL STAFF Plant Manager 1 1 1 Mill Clerk 1 1 1 Metallurgist 0 1 2 Technicians / Assayers 2 4 6 Subtotal 4 7 10 OPERATORS, LABOURERS, AND SUPERVISION

Shift Foreman 0 0 4 Crusher Operators 2 2 2 Grinding Operators 4 4 4 Flotation Operators 8 8 8 Hydromet Operators 0 8 8 Pyromet Operators 0 0 8 Product Handling Operators 2 2 3 Mobile Equipment / General Labourers 2 3 6 Subtotal 18 27 43 MAINTENANCE AND LABOURERS

Maintenance Forman 1 1 1 Millwrights 2 3 3 Electrical and Instrumentation Technicians 1 3 4 Welders 1 1 4 Trades Helper 1 1 2 Subtotal 6 9 14 TOTAL PROCESSING OPERATING PERSONNEL 28 43 67

26.4.6 Maintenance Consumables

The maintenance consumables cost was based on a factor of the original capital cost of all of the process equipment, based on a blend of new and used process equipment. Maintenance consumables include repairs and maintenance such as bearings, belts, motors, pump impellers, etc. An allowance has also been made for grease and lubricants and repairs to piping, valves and chutes based on a factor relative to the original piping capital cost.

26.4.7 Support Laboratories

The cost for metallurgical assays has been included based on an estimated number of assays for each production case and an allowance for assay equipment maintenance.

26.4.8 Health and Safety

The health and safety estimate includes expenses for training of employees and safety or personnel protection equipment.

26.4.9 Consultant Technical Support

An allowance has been included for on-going assistance from consultants for technical assistance with metallurgical process issues and environmental compliance. The annual environmental permitting fees have also been included in this section.

26.4.10 Marketing and Sales

Marketing and sales expenses have been included as a percentage of the total product sales value and an allowance has also been included for general public relations.

26.4.11 Packaging and Shipping

Tin concentrate: Product packaging costs include concentrate packaging in standard sized (875 mm x 875 mm x 1250 mm) 6.5 oz woven polypropylene bulk bags at a budget cost of CDN$10.00 per bag. Each bulk bag will be loaded with one tonne of concentrate, yielding an estimated packaging cost of CDN$10.00/DMT concentrate.

The mode of transportation and hence, shipping costs are dependant on the location of the end user's facility. Since there are currently no tin smelters in North America, it has been assumed that the tin concentrate will be shipped by transport truck to the Port of Halifax, where it will be loaded onto ocean freighters and shipped to somewhere in Asia (e.g. China, Malaysia). Costs for road transport of concentrate from the mine site to the Port of Halifax have been calculated as CDN$65.000/DMT from budget quotations for container transport and including fuel surcharge of 12%. Costs for ocean transport from the Port of Halifax to Malaysia have been quoted as CDN$70.00/DMT. The total packaging and shipping cost is, therefore, estimated to be CDN$145.00/DMT of concentrate.

Tin chloride: Since this product is hygroscopic (will adsorb water from ambient air), packaging of tin chloride will be in vacuum-sealed plastic bags shipped inside a 45 kg fibre drum, or alternative packaging per the customer's specifications. Packaging and shipping costs for tin chloride will be paid by the end user at the time of purchase and are not included as operating costs to the mine.

Indium-bearing zinc concentrate: For the preliminary assessment, packaging in standard sized (875 mm x 875 mm x 1250 mm) 6.5 oz woven polypropylene bulk bags with fill spout is assumed at a budget cost of CDN$10.00 per bag. Each bulk bag will be loaded with one tonne of concentrate, yielding an estimated packaging cost of CDN$10.00/DMT.

The mode of transportation and hence, shipping costs are dependant on the location of the end user's facility. Since there are currently no zinc smelters in Canada that have the capability to recover and/or pay for indium contained in zinc concentrates, it was assumed that the concentrate would be shipped by transport truck to the Port of Halifax, from where it will be

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 26-8 loaded onto ocean freighters and shipped to Asia. Costs for road transport of concentrate from the mine site to the port of Halifax have been calculated as CDN$65.00/DMT from budget quotations for container transport using a fuel surcharge of 12%. Costs for ocean transport from the Port of Halifax to China have been quoted as CDN$85.00/DMT. The total packaging and shipping cost is, therefore, estimated to be CDN$160.00/DMT of concentrate.

Zinc metal plates: Zinc metal is produced from the electrowinning cells in the form of plates with approximate dimensions of 1.0 m by 0.75 m. The plates are stacked on pallets and wrapped for shipment to the end user. The wooden pallets can be re-used and; therefore, packaging costs are expected to be relatively low for zinc metal product. A total packaging cost of CDN$10.00/tonne Zn has been assumed.

The mode of transportation and hence, shipping costs are dependant on the location of the end user's facility. Since the steel industry consumes almost half of the global zinc supply, it was assumed that the zinc plates would be shipped by transport truck to the north-eastern United States (e.g. Pittsburgh or Detroit), which is generally considered to be the center of the North American steel industry. Costs for road transport have been calculated as CDN$205.00/tonne Zn from budget quotations and using a fuel surcharge of 12%. The total packaging and shipping cost is, therefore, estimated to be CDN$215.00/tonne Zn.

Indium sponge: The indium sponge packaging process will be somewhat more complex than that for the zinc metal plates, as each piece of pressed sponge (button) must be individually shrink-wrapped to prevent oxidation of the indium metal. Therefore, a total packaging cost of CDN$25.00/tonne indium sponge has been assumed.

The mode of transportation and hence, shipping costs are dependant on the location of the end user's facility. Since three of the major American producers of refined indium are located in the north-eastern United States (e.g. Utica, N.Y., Rhode Island, Connecticut), a cost for road transport of CDN$205.00 per tonne of indium sponge has been carried for the preliminary assessment and is based on budget quotations for road transport and a fuel surcharge of 12%. The total packaging and shipping cost is, therefore, estimated to be CDN$230.00/tonne indium.

26.4.12 Contingency

A contingency of 5% of the total process operating cost has been applied to allow for unforeseen changes such as estimated quantities, consumptions or unit pricing of consumables.

26.5 Site Administration Cost

The individual components included in the site administration cost are summarized in Table 26-4.

Table 26-4: Breakdown of Site Administration Operating Cost

ITEM DESCRIPTION CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge ANNUAL SITE ADMINISTRATION OPERATING COST CDN$/year CDN$/year CDN$/year Labour $385,000 $680,000 $910,000 Site General Maintenance $75,000 $160,000 $345,000 Legal and Accounting Support Services $20,000 $30,000 $85,000 Contingency $24,000 $43,500 $67,000 Total Annual Site Administration Operating Cost $504,000 $913,500 $1,407,000 ADMINISTRATION OPERATING COST PER TONNE CDN$/tonne CDN$/tonne CDN$/tonne Labour $1.38 $2.44 $3.26 Site General Maintenance $0.27 $0.57 $1.24 Legal and Accounting Support Services $0.07 $0.11 $0.30 Contingency $0.09 $0.16 $0.24 Total Site Administration Operating Cost Per Tonne $1.80 $3.27 $5.04

Table Notes: [1] All costs are in Canadian Dollars.

26.5.1 Labour

The labour cost for site administration includes management, accounting, warehouse, site maintenance and security staff. The number of employees required was based on staffing for day shift only with the exception of security which requires shift work for 24 hour presence. The labour cost was provided by Adex Mining Inc. and is based on non-unionized personnel employed by Adex and no contract labour services. The labour cost for each position includes base salary plus 20% for overhead and burden. The number of employees required for each production case is summarized in Table 26-5.

Table 26-5: Number of Employees Required for Site Administration

PERSONNEL CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge MANAGEMENT AND ACCOUNTING STAFF Site Manager 0 0 0 Office Clerical 0 0 2 Human Resources Manager 0 1 1 Safety Supervisor 0.5 1 1 Chief Accountant 1 1 1 Subtotal 1.5 3 5 WAREHOUSE STAFF

Purchasing Agent 0.5 1 1 Warehouse Receiver 1 2 4 Subtotal 1.5 3 5

PERSONNEL CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge SITE MAINTENANCE AND SECURITY

Gate Security 3 4 4 Site Maintenance and Buildings Upkeep 1 2 3 Subtotal 4 6 7 TOTAL SITE ADMINISTRATION PERSONNEL 7 12 17

26.5.2 Site General Maintenance

The site general maintenance cost includes an allowance for materials for building upkeep and for mobile equipment repair. Fuel is included for site maintenance mobile equipment.

26.5.3 Legal and Accounting Support Services

An allowance is included for consulting services for legal and accounting requirements.

26.5.4 Contingency

All site administration costs are subjected to a contingency of 5% to account for currently unforeseen costs.

26.6 Operating Cost Qualifications and Exclusions

26.6.1 Qualifications

 Labour costs are based on employees of Adex Mining Inc. only (no contract labour).

26.6.2 Exclusions

The following cost items are not included in the operating cost estimate:

 Price escalation for reagents, materials, equipment or labour  Changes in project work scope definition  Currency exchange rate fluctuations  Research and development or exploration expenses  Mining or process technology royalty fees  Interest  Sales taxes (HST/GST)  Property taxes  Corporate (Toronto) office costs  Insurance

SECTION 27.0 ECONOMIC ANALYSIS The capital and operating costs and product revenues defined by this study were used as inputs to construct a discounted cash flow ("DCF") financial model of the project that was used to evaluate the internal rate of return ("IRR") and net present value ("NPV") over the life of the project along with the payback period.

27.1 Cash Flow Parameters

The key assumptions and parameters that were used in the DCF model are given in Table 27-1:

Table 27-1: Cash Flow Financial Model Parameter Summary

PARAMETER VALUE NOTES Currency Canadian Dollars Constant exchange rate of CDN$1.10 = US$1.00. Year -1 is preproduction, production for years 1 through 10 DCF Time Frame 12 years total followed by closure and reclamation in year 11. Other than ramp-up in year one, ore production rate is Mining Production Schedule Constant constant for years 2 through 9. In year 10, mine production does not occur for the full year due to resource depletion. Mining and processing rate is 90% of maximum rate in first Processing Ramp-up 90% year 1 year to account for start-up and commissioning. Processing of ore ceases 79% (288 days) into year 10 due Processing in Final Year 79% year 10 to resource depletion. All costs and revenues are assumed as a single point DCF Incremental Time Period 1 year average for a complete year. Project Financing 100% equity The cash flows represent those seen by an equity investor. Results are shown pre-tax and then post-tax results were Taxes Before and After evaluated using current tax rates and regulations. Tax rates are constant over the life of the project. Integration None The project is evaluated as a standalone venture. Inflation None Constant dollars are used in the model. No terminal value for resale or salvage is considered for any Salvage Value None of the mining or processing assets or site infrastructure. Discount Rate for NPV 8% Typical for mining projects. Plant Annual Availability 90% @ 850 DMT/d Constant over project life.

Run of Mine Ore Head Grades Run of mine ore head grades remain constant over the life Tin 0.71% of the mine. Zinc 1.82% Indium 183 ppm

Metal Recoveries Tin to Concentrate 74.97% All metal recoveries remain constant over the life of the Tin to Tin Chloride 67.60% project as per the mass balance simulation and design Zinc to Concentrate 85.18% criteria (Section 19.3). Zinc to Metal 79.42% Indium to Concentrate 83.05% Indium to Sponge 75.40%

Metal/Chemical Prices Tin Metal CDN$16.25/kg Based on 3-year trailing average prices as per Section 22.0. Tin Chloride CDN$15.23/kg Zinc Metal CDN$2.70/kg Indium Metal CDN$639.67/kg

PARAMETER VALUE NOTES Calculated based on conceptual smelter schedules for net Product Revenue smelter return, treatment charges and penalties as per Section 27.2.

27.2 Product Revenue

The net revenue from sale of products was determined using the three-year trailing average commodity prices defined in Section 22.0 along with the relevant charges for treatment by a smelter or refiner and penalties for any defined impurity elements in the product specifications in Section 22.0. Table 27-2 shows a summary of the treatment charges and annual revenue for all products considered in the three production cases. The methods used to define treatment charges, smelter returns and unit deductions are presented in the following sections.

Table 27-2: Product Revenue Summary For All Production Options

TIN TIN ZINC/INDIUM ZINC METAL INDIUM PARAMETER UNITS CONCENTRATE CHLORIDE CONCENTRATE SPONGE

DMT/ Annual 3,231 2,142 8,658 4,056 40.5 year Production Rate 50% Zn, Product Grade wt% 46.0 wt% Sn 99% SnCl 99.5% 95% In 2 0.49% In $2.70/kg Zn, $15.23/kg $639.67/kg In Market Price CDN$/ $16.25/kg Sn $639.67/kg In $2.70/kg Zn 99% SnCl (4N) kg 2 (4N)

CDN$/ Market Price N/A N/A N/A N/A 81.38% [1] kg Adjustment

CDN$/ Total Treatment $783.37 $0 $390.60 $0 $66,000 [2] DMT Charges

Total Unit wt% 3.70% Sn 0% 8.00% Zn 0% 0% Deductions

CDN$/ Annual $19,677,222 $32,623,978 $10,501,992 $10,951,904 $17,486,964 year Revenue

Revenue 54.3% for Zinc Relative to Percent 81.5% 100% 15% for Indium 100% 71.1% 100% Market [3] Price Table Notes: [1] Market price adjustment factor accounts for loss of indium in refining process to 4N8 grade and a price discount for indium sponge relative to the price for 4N indium. [2] Indium sponge treatment charges are per tonne of 4N8 indium metal recovered after refining losses. [3] Assumed value for indium from smelter credit as per discussions with zinc smelter operations in Asia with existing integrated indium recovery systems. Definitive value of indium credit to be confirmed.

27.2.1 Tin Concentrate

The tin concentrate revenue was determined based on a typical tin smelter schedule, which combines treatment charges per tonne of concentrate processed and unit deductions. The unit deductions involve subtracting part of the actual tin concentrate grade prior to calculating amount

Table 27-3: Tin Smelter Schedule Terms For Tin Concentrate Revenue Calculations

PARAMETER UNITS VALUE NOTES Base Treatment Charge CDN$/DMT $473.00 Base value for all concentrates The charge is for concentrates less than Low Grade Treatment Charge CDN$/DMT/1%Sn $5.50 70% tin and is $5.50 for each 1% less than 70% Sn.

Penalty Treatment Charges Individual up to 0.01% free CDN$/DMT/1% $110.00 Pb/Sb/Bi/As Individual up to 0.02% free CDN$/DMT/1% $55.00 Cu/Zn Individual up to 0.5% free CDN$/DMT/1% $10.00 F/S Combined up to 0.3% free CDN$/DMT/1% $110.00 ThO2 + U3O8 Base Unit Deduction %Sn 1.3% Base value for all concentrates The unit deduction is for concentrates Low Grade Unit Deduction %Sn/1%Sn 0.1% less than 70% tin and is 0.1% for each 1% less than 70% Sn.

Penalty Unit Deductions %Sn/1% 0% Individual up to 2.5% free

Fe or WO3 < 2.5% %Sn/1% 0.1% Individual up to 5.0% deduct one-tenth of

Fe or WO3 < 5.0% impurity percentage from gross tin assay %Sn/1% 0.2% Individual up to 10.0% deduct one-fifth of

Fe or WO3 < 10.0% impurity percentage from gross tin assay %Sn/1% 0.4% Individual greater than 10.0% deduct

Fe or WO3 > 10.0% two-fifths of impurity percentage from gross tin assay

Based on the smelter schedule terms for 46% tin concentrate with impurities defined in Table 22-1, a total treatment charge of CDN$783.37/DMT and a total unit deduction of 3.70% Sn was used to define the annual revenue as CDN$19,677,222.

27.2.2 Tin Chloride

As explained in Section 22.0, it is assumed that tin chloride would be marketed directly to end- users and therefore no refining, treatment or penalty charges would apply. The final refining has already taken place in the pyrometallurgical process at the minesite. Therefore, product revenue was calculated using 100% of the tin chloride price without charges to give a total annual revenue of CDN$32,623,978.

27.2.3 Zinc/Indium Concentrate

The zinc smelter schedule terms used to determine the revenue from zinc concentrate are listed in Table 27-4. No penalty charges have been defined and it has been assumed for the study that the zinc concentrate can be produced such that impurity element charges can be avoided. Discussions are ongoing with traders and smelters to define credits available for contained indium in the zinc concentrate. No definitive payment terms for indium in zinc concentrate have been negotiated and the product revenue calculations were based on an indium pay factor of 15% for the contained indium metal value based on the pricing of 4N grade indium defined in Section 22.0.

Table 27-4: Zinc Smelter Schedule Terms For Zinc Concentrate Revenue Calculations

PARAMETER UNITS VALUE NOTES

Base value for all concentrates, used to Net Smelter Return - NSR % of Zn contained 85.0 wt% determine the calculated unit deduction. (Payable Zinc) Minimum deduction from the assayed Minimum Unit Deduction % Zn grade 8.00 wt% zinc concentrate grade. Zn Assay - Zn Actual unit deduction used is the greater Calculated Unit Deduction % Zn grade Assay x NSR of the minimum or calculated value. Base value for all concentrates when Zn Base Treatment Charge CDN$/DMT $218.35 price is CDN$1.375/kg. Additional treatment charge if actual Zn (Zn Price $/kg- Actual Zinc Price Treatment price is greater than CDN$1.375/kg or CDN$/DMT $1.375/kg) x 130 Charge Adjustment reduction in treatment charge if Zn price $/DMT/($/kg Zn) is less than CDN$1.375/kg. Total of the base treatment charge and Total Treatment Charge CDN$/DMT Base + Adjustment zinc price treatment charge adjustment.

Based on the smelter schedule terms for 50% zinc concentrate with 0.49% indium content, a total treatment charge of CDN$390.60/DMT and a total unit deduction of 8.00% Zn was used to define the annual revenue as CDN$10,501,992 (CDN$6,436,102 from zinc and CDN$4,065,890 from indium).

27.2.4 Zinc Metal

It has been assumed that electrolytic grade zinc metal of minimum 99.5% purity would be sold directly to end-users and no price discounts, penalty charges or refining charges have been included in the revenue calculation. Revenue from zinc metal was calculated using the three year trailing average LME zinc market price defined in Section 22.0 to give a total annual revenue from zinc metal of CDN$10,951,904.

27.2.5 Indium Sponge

Based on discussions with indium refiners, typical off-take agreement parameters shown in Table 27-5 were used to define the revenue from indium sponge. Payment is based on the actual amount of 4N8 indium recovered after the refining process.

Table 27-5: Indium Refining Terms For Indium Sponge Revenue Calculations

PARAMETER UNITS VALUE NOTES

Price Discount Factor For % 87.5% Typical discount for pricing indium Indium Sponge sponge relative to 4N grade indium.

Recovery of Indium in Refining wt% 93.0% No payment is received for indium lost Process during refining process.

Total Refining and Penalty CDN$/kg 4N8 In $66.00 Charge based on refining 95 wt% indium Charge sponge to 4N8 grade indium.

Based on the typical refining terms for 95% indium sponge, a net payment to the mine of CDN$431.81/kg of 95% indium sponge was used to define the annual revenue from indium sponge as CDN$17,486,964.

27.3 Base Case Economic Results

Cash flow model results for the three production options are included in Appendix G. Table 27-6 summarizes the financial results for the three scenarios under the base case conditions.

Table 27-6: Summary of Base Case Cash Flow Economic Model Results

PARAMETER CASE A CASE B CASE C Tin Concentrate, Tin Concentrate, Tin Chloride, Zinc/Indium Zinc Metal, Zinc Metal, Concentrate Indium Sponge Indium Sponge Pre-production Capital Investment (Mine and Process) $41,170,456 $71,104,058 $90,128,610 Working Capital $3,204,714 $6,770,290 $8,416,112 Reclamation & Closure Costs [2] $2,871,000 $2,871,000 $2,871,000 Annual Revenue at 90% Plant Availability Tin Concentrate Sales $19,677,222 $19,677,222 Tin Chloride Sales $32,623,978 Zinc Concentrate Sales $6,436,102 Zinc Metal Sales $10,951,904 $10,951,904 Indium in Zinc Concentrate Sales $4,065,890 Indium Sponge Sales $17,486,964 $17,486,964 Total $30,179,215 $48,116,090 $61,062,846 Annual Operating Cost at 90% Plant Availability Site Administration $504,000 $913,500 $1,407,000 Mining $8,382,413 $8,382,413 $8,382,413 Process $8,866,208 $13,654,458 $20,719,698 Total $17,752,621 $22,950,371 $30,509,112 Cumulative Taxes Life of Project Federal/Provincial Income $15,115,624 $33,351,256 $39,852,551 Mining $11,778,934 $25,514,168 $29,690,587 Total $26,894,558 $58,865,424 $69,543,137 Pre-tax Financials Cumulative Cash Flow Life of Project $74,628,040 $167,648,629 $200,091,547 Net Present Value, NPV (8% discount) $32,777,842 $79,897,754 $93,411,456 Internal Rate of Return, IRR 23.49% 28.87% 27.37% Payback Period (years) 4.26 3.46 3.65 Post-tax Financials Cumulative Cash Flow Life of Project $47,733,481 $108,783,205 $130,548,409 Net Present Value, NPV (8% discount) $18,063,806 $47,184,226 $54,962,773 Internal Rate of Return, IRR 18.00% 22.55% 21.39% Payback Period (years) 5.55 4.43 4.67 Table Notes: [1] All costs are in Canadian Dollars. [2] Based on reclamation cost developed by Jacques Whitford for Fire Tower Zone Scoping Study.

Case B shows a slight increase in internal rate of return over Case A as a result of making the additional investment for hydrometallurgical production of zinc and indium. Case B also increases the revenue potential for sale of indium as indium sponge (which is recognized in the indium metal industry as an intermediate in the manufacture of high purity indium end use products) relative to the sale of indium based on indium contained in zinc concentrate.

When making the additional investment to produce tin chloride, the internal rate of return for the project actually decreases. This, along with the additional risk of entering the tin chloride market, leaves little incentive for pursuing Case C. Figure 27-1 and Figure 27-2 illustrate the cumulative cash flow for each year during the project for Cases A, B and C, before and after taxes, respectively.

$250,000,000

Case A

$200,000,000 Case B Case C

$150,000,000

$100,000,000

$50,000,000

Notes: Case A: Production of tin concentrate -$50,000,000

Pre-Tax Cumulative Cash Flow (CDN$) and zinc/indium concentrate Case B: Production of tin concentrate, zinc metal and indium sponge Case C: Production of tin chloride, zinc -$100,000,000 metal and indium sponge

-$150,000,000 -11234567891011

Project Life (Years)

Figure 27-1: Cumulative Project Pre-Tax Cash Flow For Different Production Options

$250,000,000

Case A

$200,000,000 Case B Case C

$150,000,000

$100,000,000

$50,000,000

Notes: Case A: Production of tin concentrate -$50,000,000 and zinc/indium concentrate Post-Tax Cumulative Cash Flow (CDN$) Flow Cash Cumulative Post-Tax Case B: Production of tin concentrate, zinc metal and indium sponge Case C: Production of tin chloride, zinc -$100,000,000 metal and indium sponge

-$150,000,000 -11234567891011

Project Life (Years)

Figure 27-2: Cumulative Post-Tax Cash Flow For Different Production Options

27.4 Sensitivity Analysis

The sensitivity of the post-tax internal rate of return for the three production scenarios under consideration for development of the Mount Pleasant property is illustrated by Figure 27-3 to Figure 27-5 for an 850 tonne of ore per day operation.

At an ore production rate of 850 tonne per day, the earning potential of the project for all three production cases has been evaluated based on a capital and operating cost estimate accuracy in the range of minus 35% to plus 35%; and to the value of tin, zinc and indium commodities in the range of +/- 35% of the three year trailing average prices.

40.00% Tin M etal Value

Zinc M etal Value 35.00% Indium M etal Value

Capital Costs

30.00% Operating Costs

Not es: 25.00% 1.) CDN t o US exchange = 1.10 2.) Project lif e = 10 years 3.) Plant capacit y = 850 tpd ROM ore 4.) Plant online availabilit y = 90% 20.00% 5.) ROM t in grade = 0.71% 6.) ROM zinc grade = 1.82% 7.) ROM indium grade = 183 ppm 8.) Base t in met al value = CDN$16.25/ kg 15 . 0 0 % 9.) Base zinc met al value = CDN$2.70/ kg 10.) Base indium met al value = CDN$639.67/ kg 11.) Base capital cost = CDN$41.2 million 12.) Base operating cost = CDN$17.8 million/year 13.) Base operating earnings = CDN$30.2 million

Post-Tax Internal Rate of Return (%) 10 . 0 0 % 14.) Annual inf lat ion = Nil

5.00%

0.00% -60-50-40-30-20-100 102030405060 Change from Base Case Value (%)

Figure 27-3: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'A' Relative to Changes in the Commodity Values, Capital and Operating Costs

Case A for production of tin and zinc concentrates is the most sensitive of the three production cases to changes in operating costs, capital costs and tin pricing. However, the earning potential of Case A is not as sensitive to indium and zinc metal pricing as the other two production scenarios where indium sponge and zinc metal are produced. For Case A, a 25% decrease in the tin price limits the economic viability of the project and a 35% decrease produces no net post tax IRR. On the other hand, a 5% increase in the tin metal price from CDN$16.25 to CDN$17.06 increases the base case post-tax IRR by from 18.0% to 20.3%.

Assuming that metal recovery through the process remains constant, the sensitivity of the IRR to individual changes in tin, zinc and indium ore grade would have the same effect as an equivalent percent change in metal pricing.

40.00% Tin M etal Value

Zinc M etal Value 35.00% Indium M etal Value

Capital Costs

30.00% Operating Costs

Not es: 25.00% 1.) CDN t o US exchange = 1.10 2.) Project lif e = 10 years product ion 3.) Plant capacit y = 850 tpd ROM ore 4.) Plant online availabilit y = 90% 20.00% 5.) ROM t in grade = 0.71% 6.) ROM zinc grade = 1.82% 7.) ROM indium grade = 183 ppm 8.) Base t in met al value = CDN$16.25/ kg 15 . 0 0 % 9.) Base zinc met al value = CDN$2.70/ kg 10.) Base indium met al value = CDN$639.67/ kg 11.) Base capital cost = CDN$71.1 million 12.) Base operat ing cost = CDN$23.0million/year 13.) Base operat ing earnings = CDN$48.1 million

Post-Tax Internal Rate of Return (%) 10 . 0 0 % 14.) Annual inf lat ion = Nil

5.00%

0.00% -60-50-40-30-20-100 102030405060 Change from Base Case Value (%)

Figure 27-4: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'B' Relative to Changes in the Commodity Values, Capital and Operating Costs

The analysis of the post-tax IRR relative to the accuracy of the capital and operating cost estimates for Case B demonstrated less sensitivity than for Case A. The earning potential of the project is considered positive within the accuracy of the capital and operating cost estimate of minus 10% to plus 35% and, in fact, remains positive (greater than 12% post tax IRR) across the range of commodity pricing variability assumed for the study (minus 35% to plus 35%). The economic viability of the Case B production option is less sensitive to variations in the tin market price and operating costs than Case A, which will result in a more economically robust operation.

40.00% Tin Chloride Value

Zinc M etal Value 35.00% Indium M etal Value

Capital Costs

30.00% Operating Costs

Not es: 25.00% 1.) CDN t o US exchange = 1.10 2.) Project lif e = 10 years product ion 3.) Plant capacit y = 850 tpd ROM ore 4.) Plant online availabilit y = 90% 20.00% 5.) ROM t in grade = 0.71% 6.) ROM zinc grade = 1.82% 7.) ROM indium grade = 183 ppm 8.) Base t in chloride value = CDN$15.23/ kg 15 . 0 0 % 9.) Base zinc met al value = CDN$2.70/ kg 10.) Base indium met al value = CDN$639.67/ kg 11.) Base capital cost = CDN$90.1 million 12.) Base operat ing cost = CDN$30.5million/year 13.) Base operat ing earnings = CDN$61.1 million

Post-Tax Internal Rate of Return (%) 10 . 0 0 % 14.) Annual inf lat ion Nil

5.00%

0.00% -60-50-40-30-20-100 102030405060 Change from Base Case Value (%)

Figure 27-5: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'C' Relative to Changes in the Commodity Values, Capital and Operating Costs

The economic analysis for Case C is very similar to that of Case B and has approximately the same level of sensitivity of the post-tax IRR to changes in capital costs, operating costs and commodity pricing. There is little merit in pursuing the Case C option over Case B as there was no increase in the post-tax IRR to justify the additional capital and operating expenses associated with production of tin chloride from tin concentrate.

Figure 27-6 to Figure 27-8 show the sensitivity of the post-tax net present value for the same three production scenarios.

100.0 Tin M etal Value

Zinc M etal Value

Indium M etal Value 80.0 Capital Costs

Operating Costs

60.0 Not es: 1.) CDN t o US exchange = 1.10 2.) Project lif e = 10 years 3.) Plant capacit y = 850 t pd ROM ore 4.) Plant online availability = 90% 40.0 5.) ROM t in grade = 0.71% 6.) ROM zinc grade = 1.82% 7.) ROM indium grade = 183 ppm 8.) Base t in met al value = CDN$16.25/ kg 9.) Base zinc met al value = CDN$2.70/ kg 10.) Base indium met al value = CDN$639.67/ kg 20.0 11.) Base capital cost = CDN$41.2 million 12.) Base operat ing cost = CDN$17.8 million/ year 13.) Base operat ing earnings = CDN$30.2 million 14.) Annual inf lat ion = Nil Post-TaxNet PresentCDN$) Value (MM

0.0

-20.0 -60-50-40-30-20-100 102030405060 Change from Base Case Value (%)

Figure 27-6: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'A' Relative to Changes in the Commodity Values, Capital and Operating Costs

100.0 Tin M etal Value

Zinc M etal Value

Indium M etal Value 80.0 Capital Costs

Operating Costs

60.0 Not es: 1.) CDN t o US exchange = 1.10 2.) Project lif e = 10 years 3.) Plant capacit y = 850 tpd ROM ore 4.) Plant online availability = 90% 40.0 5.) ROM t in grade = 0.71% 6.) ROM zinc grade = 1.82% 7.) ROM indium grade = 183 ppm 8.) Base t in met al value = CDN$16.25/ kg 9.) Base zinc met al value = CDN$2.70/ kg 10.) Base indium met al value = CDN$639.67/ kg 20.0 11.) Base capital cost = CDN$71.1 million 12.) Base operat ing cost = CDN$23.0 million/year 13.) Base operat ing earnings = CDN$48.1 million 14.) Annual inf lat ion = Nil Post-Tax Net Present Value (MM CDN$)

0.0

-20.0 -60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 Change from Base Case Value (%)

Figure 27-7: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'B' Relative to Changes in the Commodity Values, Capital and Operating Costs

100.0 Tin Metal Value

Zinc M etal Value

Indium M etal Value 80.0 Capital Costs

Operating Costs

60.0 Not es: 1.) CDN t o US exchange = 1.10 2.) Project lif e = 10 years 3.) Plant capacit y = 850 tpd ROM ore 4.) Plant online availabilit y = 90% 40.0 5.) ROM t in grade = 0.71% 6.) ROM zinc grade = 1.82% 7.) ROM indium grade = 183 ppm 8.) Base t in chloride value = CDN$15.23/ kg 9.) Base zinc met al value = CDN$2.70/ kg 10.) Base indium met al value = CDN$639.67/ kg 20.0 11.) Base capit al cost = CDN$90.1 million 12.) Base operat ing cost = CDN$30.5 million/year 13.) Base operat ing earnings = CDN$61.1 million 14.) Annual inf lat ion = Nil Post-Tax NetPresent Value(MM CDN$)

0.0

-20.0 -60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 Change from Base Case Value (%)

Figure 27-8: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'B' Relative to Changes in the Commodity Values, Capital and Operating Costs

SECTION 28.0 PROJECT EXECUTION

28.1 General

The project is likely to continue with a development program to define an optimum mine plan, process chemistry and process flowsheet that will provide more definitive design parameters for mine and metallurgical plant design and for economic assessment. A feasibility study would be conducted based on completion of a development program and the successful completion of test programs that would clearly define operating parameters that influence product quality and yield.

The execution of the project through the next phase of development studies will include:

 further exploration and drilling programs within the North Zone to improve on grade and tonnage definition within the various ore blocks;  refinements to the geological model and mine plan to confirm production rates and grade control;  the development of the flotation process technology based on batch flotation, lock cycle and pilot plant tests to confirm tin and zinc-indium concentrate grade and recovery, development of parameters for definition of optimum reagent consumptions and confirmation of concentrate quality relative to smelter schedules;  the development of the hydrometallurgical process technology based on bench scale and pilot testing to confirm quality of zinc metal and indium sponge, reagent consumption and flowsheet design parameters;  development of end user preliminary agreements and confirmation of product specification and price schedule, and;  continuing development of wastewater treatment process technology based on wastewater characteristics defined by the pilot programs.

28.2 Existing Site Development

The existing site remains in care and maintenance and the mine is currently flooded.

The proposed development of the mine and refurbishment of the processing facilities will be dependent on the outcome of the test programs and feasibility study.

The refurbishment of the tailings pond dam was completed in 2008 to assure compliance with present day guidelines. The reuse of the existing tailings pond for the proposed project is considered viable. The addition of a sludge storage pond for disposal of sludge from the wastewater treatment system is currently under review. The design for the sludge pond was completed in 2009 and approved for construction by NBDOE. Construction of the sludge pond for commercial production is on hold pending results of the feasibility and finalized design of a wastewater treatment system.

The reuse of certain existing site buildings (concentrator building) with upgrades to allow for the installation of the comminution circuit, concentrator flotation circuit and hydrometallurgical circuit has been proposed. Preliminary design of the process equipment layout has indicated that an addition to the existing concentrator building will be required to house indium and zinc hydrometallurgical operations. The plant layout as defined by this study is considered preliminary

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 28-2 and the scope of work for refurbishment of existing buildings for the proposed project would be dependent on the outcome of the feasibility study.

The project as defined herein is based on the reclaim of process water from the tailings pond. Existing power transmission lines and site transformer will be reused for the proposed project. Therefore, the existing site infrastructure for supply of electrical power and process water will not require extensive upgrades.

The existing mine water treatment system was installed for treatment of the mine water during care and maintenance of the property. The treated mine water is routed to the existing tailings pond and the final discharge is currently controlled through the decant structure (refurbished in 2008) and monitored to assure compliance with the final effluent guidelines as defined by the Department of Environment. The existing mine water treatment system operates within compliance and modifications to the existing mine water treatment system are not required for continued care and maintenance of the property. A fully integrated wastewater treatment system (capable of treating mine water, tailings and wastewater from the hydrometallurgical operations) is planned for the proposed project pending the results of the feasibility study.

28.3 Process Technology Development Plan

In addition to the preliminary assessment of the production economics as defined by this study, bench scale testing is in progress to develop an optimum process technology for removal of fluoride from wastewater, confirmation of concentrator (flotation) flowsheet design and for the production of indium sponge by hydrometallurgical processing. The processing flowsheets as defined by Appendix B of the Independent Technical Report are conceptual with revisions in progress relative to the bench scale and pilot test programs. The flowsheet design as proposed for the economic assessment is based on standard industrial processing practices and Adex Mining Inc. is developing novel process technology to optimize on the removal of fluoride from wastewater and to achieve optimum purity of indium sponge. The development of the process technology for wastewater and hydrometallurgical processing using bench scale development methods is presently under contract to Thibault & Associates Inc. Test programs for development of the concentration process are being completed by SGS Lakefield. Based on the results of the bench scale development programs, a pilot program is being planned for first quarter of 2010.

28.4 Project Schedule

The development programs, including the bench scale and pilot test programs for the development of the concentration (flotation) process and the indium / zinc hydrometallurgical process are planned for completion as of end of second to third quarter of 2010. In the event that the pilot programs are successful, the feasibility leading to a production decision is proposed for third to fourth quarter of 2010.

SECTION 29.0 INTERPRETATION AND CONCLUSIONS

29.1 General

The primary objectives of the North Zone preliminary assessment study were to review previous development studies completed on the property, identify alternative production opportunities for tin, zinc and indium that have commercial potential and develop a preliminary economic assessment for each option. The results of the preliminary assessment will be used by Adex Mining Inc. to focus efforts on the commercial strengths of the North Zone and to establish a production strategy for the North Zone in addition to the production strategy that was previously developed for co-production of molybdenum and tungsten from the Fire Tower Zone.

29.2 Geology

A detailed technical assessment of the North Zone mineral resources estimate was completed to determine an optimum grade for run-of-mine ore relative to the production economics. The objectives were based on production options for tin, indium and zinc with provisions to control the arsenic content in run-of-mine ore.

Preliminary production economic models were developed as an integral part of the study in addition to the three dimensional geological models to more fully characterize the 43-101 compliant resource estimates prepared on the North Zone in 2009 by Watts Griffis and McOuat and SGS - Geostat. A total of 97 high grade tin-indium and zinc blocks of mineralization from the surface to 250 meters depth were identified from within the North Zone inferred and indicated resources. The blocks were subsequently modelled using GEMCOM solid models to identify undiluted tonnages of 1,894,000 tonnes at 0.76% tin, 1.93% zinc and 212 gram per tonne of indium from the indicated resource and 1,000,000 tonnes at 0.74% tin, 1.82% zinc and 154 per tonne of indium from the inferred resource. Once the appropriate dilution and recovery factors are applied, these results can be used to estimate a tonnage and head grade for preliminary assessment level economic analysis.

29.3 Mining

After extensive review of mine accessibility through existing ramps and historical mining records from the 600 Adit, complete with three dimensional modeling of the resources, a conceptual mine plan was developed for the preliminary economic assessment. After a review of alternative mining methods, an open stope concept was identified with temporary rib pillars with no backfill. Based on GEMCOM solid models referred to in 29.2 above and a preliminary assessment of the proposed mine plan, it was concluded that the conceptual mine plan is capable of sustaining a production rate of 850 tonnes per day for a period of 10 years.

The mine development layout and stope scheduling needs further investigation and calibration work to increase the level of certainty. Therefore, there is a need for more exploration and delineation drilling in the vicinity of the upper parts of the DTZ lodes.

29.4 Processing

Three mineral processing scenarios were considered in the preliminary assessment with varying levels of upgrading to different final products as follows:

Case A: Production of tin concentrate and indium-bearing zinc concentrate using crushing, grinding, flotation and gravity separation unit operations.

Case B: Production of tin concentrate, indium sponge and zinc metal using the Case A process plus add-on hydrometallurgical operations for indium/zinc production including leaching, solution purification, solvent extraction, cementation and electrowinning operations.

Case C: Production of tin chloride, indium sponge and zinc metal using the Case B process plus add-on pyrometallurgical treatment of lower grade tin concentrate to produce tin chloride using high temperature chlorination, off-gas treatment, solution purification and crystallization unit operations.

The design of the conceptual flowsheets was based on interpretation of various metallurgical test programs on the North Zone (1960 to present), technical publications on metallurgical processing of similar ores and from previous operating/design experience on Mount Pleasant ores since 1981. The conceptual flowsheets employ industrial standard unit operations and the efficiency of each unit operation has been predicted by Thibault & Associates Inc. by modelling based on standard operating practices for metallurgical operations of similar type ore. Bench scale / pilot testing of the flowsheets will be required to confirm flowsheet configuration, equipment sizing and operating parameters that impact on operating cost (such as reagent and electrical power consumption).

The hydrometallurgical process makes use of conventional process equipment for production of indium sponge and zinc metal; however, the design of a process flowsheet to separate tin, indium and zinc and obtain an optimum purity for indium sponge and zinc metal is considered proprietary technology that is currently being developed by Adex Mining Inc.

The overall technical viability of the proposed hydrometallurgical process technology is based on purity of indium and zinc. Preliminary specifications for indium sponge have been developed as part of the study and are based on initial discussion with potential end users. Further testing of the proposed flowsheet will be required to assure product purity and acceptance by the end users.

29.5 Environmental

The environmental impact of the proposed project has not been fully assessed and is subject to further review. Treatment technologies as defined by the preliminary assessment for wastewater and tailings from the proposed metallurgical flowsheet are conventional and are considered commercially proven. Wastewater treatability test program are required to assess optimum operating parameter and to confirm compliance with environmental guidelines.

29.6 Economic Analysis

The results of the preliminary economic assessment indicate that there are two potentially viable production options for the North Zone including the co-production of tin concentrate and indium- bearing zinc concentrate and the added value production of indium sponge and zinc metal from the indium-zinc concentrate. For a processing capacity of 850 tonnes per day and a project life of 10 years, the preliminary economic assessment shows a pre-tax internal rate of return (IRR) for

Thibault & Associates Inc. Applied Process Chemical Engineering NI 43-101 Independent Technical Report Rev 02 January 22nd, 2010 Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 29-3 production of tin and indium-zinc concentrate (Case A processing option) at 23.49% and for production of tin concentrate, indium sponge and zinc metal (Case B processing option) at 28.87%. Further assessment will be required to confirm the revenue potential for indium contained in zinc concentrate (based on a definitive smelter return for indium and zinc) and to confirm the proposed hydrometallurgical flowsheet based on the results of bench scale and pilot test programs.

The economic assessment considered production of tin chloride as an added value tin product. The pre-tax IRR of 27.37% for the production of tin chloride, indium sponge and zinc metal (Case C) was considered positive; however, the pre-tax IRR is slightly lower than for Case B, which requires less capital investment than Case C. The high capital investment, high operating costs and marketability of tin chloride in specialized markets favours the production of tin concentrate as a preliminary development strategy.

It is noted from the sensitivity analysis that an increase in the capital or operating cost within the accuracy of the estimate for all production cases considered (defined as minus 10% to plus 35%) still retains a positive post-tax IRR. Based on an assessment of the sensitivity of the three production cases to changes in the capital and operating costs, the earning power for the hydrometallurgical process (Case B) is considered to be slightly stronger than that of the standalone concentrator process (Case A). Similarly, a decrease in the metal prices or run-of-mine grades will have less of an impact on the hydrometallurgical development concept (Case B).

Although the potential economic viability of the process technologies as defined herein is considered strong, the economics are very dependent on the use of a blend of new and used equipment for the concentrator. Used equipment was readily available for procurement during the preparation of this report; however, the ability to access used equipment in the future cannot be verified. Nevertheless, the market for used crushing, grinding and flotation equipment as defined by the study has been relatively strong over the last three years and the study is based on price trending of used relative to new equipment pricing.

SECTION 30.0 RECOMMENDATIONS

30.1 Process Development

In order to develop the North Zone, it is recommended that Adex Mining Inc. continue development of the concentration and hydrometallurgical process flowsheet to assure optimum product quality and yield. This would include bench scale and pilot test programs at a scale that will enable scale-up and design of the production facility. As an integral part of the metallurgical test program, wastewater and tailings generated by the testing should be used to confirm the proposed treatability methods. The budgetary cost for the bench scale and pilot programs is estimated in the range of CDN$1.0 to 1.6 million.

30.2 Geology

An indicated NI 43-101 compliant resource classification is required for all of the sub-zones to be incorporated into a bankable feasibility study. It is recommended that a program of 2,500 metres of diamond drilling, surface sampling and additional indium analyses of historical core be completed to ensure that #1-3 Tin Lode, North Adit and #5 Tin Lode can be upgraded from a NI 43-101 inferred resource level to an indicated resource level. Diamond drilling is also recommended in the vicinity of the projected path of proposed decline accessing the Deep Tin Zone in order to complete geotechnical assessment of its roof pillar. The total cost of the program is expected to be approximately CDN$650,000.

30.3 Mining

Future work should include stope modeling and sequencing. This can be initiated after additional exploration and delineation drilling campaign is completed. Estimated cost for this exercise is approximately $20,000.

SECTION 31.0 REFERENCES

Adex Mining Inc., Mount Pleasant- Report Feasibility Study, New Brunswick Volume 3 of 3, (1997)

Adex Mining Inc. (1995) - Summary Pre-feasibility Study, Adex Mineral Limited, Mount Pleasant Property, 15 p.

Adex Mining Corp., Volume 1 Prefeasibility Study Piskahegan Resources Limited Mount Pleasant Property, (1995)

Adex Mining Inc., Volume 3 CESL- Preliminary Mill Design Piskahegan Resources Limited Mount Pleasant Property, (1995)

Adex Mining Inc. (Nov. 2006) - Report of Work on Mount Pleasant Claim Group, covering exploration work on 02 Claims, 227950–338051 in Group 1505 held under prospecting license 14338 by Adex Mining Inc. from October, 2005 to July, 2006, report, 8 p., plus Appendices.

ADI, Mount Pleasant Mine Water Treatment Study Adex Mining Inc. Bench Scale Treatability, (2008)

Aker Solutions Canada Inc. (2008) - Adex Minerals Corp. Mount Pleasant Fire Tower Zone Scoping Study.

Atkinson, J.R., Kooiman, G. and Coates, H.J. (1981) - Geology of Mount Pleasant Tungsten, New Brunswick, Canadian Mining Journal, pp. 73-75.

Boyd, T. (Sep. 2008) - Report of Work Consisting of Diamond Drilling with Additional Sampling of Historical Drill Core and Geochemical Analysis on the Mount Pleasant Claim Group (Phase 1 of 2008 work Program), assessment report prepared for Adex Mining Inc., 23 p., plus Appendices.

Behre Dolbear & Company (1963) - Appendices to Preliminary Report of August 5, 1963, on Estimates of Ore Reserves, North Zone-Mount Pleasant, Charlotte County, New Brunswick, Canada, prepared for Mount Pleasant Mines Limited. Appendix A-F.

Billiton Canada Ltd. (1985a) - Mount Pleasant Tungsten (MPT), Part 1, The Fire Tower Orebodies: report under cover of Mount Pleasant Tungsten Mine, St. George, New Brunswick, 23 p.

Billiton Canada Ltd. (1985b) - Mount Pleasant Tungsten (MPT), Part II, The North Zone Tin: report under cover of Mount Pleasant Tungsten Mine, St. George, New Brunswick, 40 p.

Brunswick Tin Mines Ltd. (1976) - Summary Report on the Geology of the Mount Pleasant Project, 371 p.

Canadian Dam Association (2007) - Dam Safety Guidelines 2007, 82 p.

Canadian Institute of Mining, Metallurgy and Petroleum (2002) - CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines Adopted by CIM Council November 14, 2004, 10 p.

CANMET, The CANMET Ferric Chloride Leach Process for the Treatment of Bulk Base Metal Sulphide Concentrates, Report MSL 89-67, (June 1989).

CANMET, Progress Report #1, Mount Pleasant Tin Process, Nova Gold Resources Inc., 1990.

CANMET, Process Development for Recovery of Tin and Indium From Mount Pleasant North Tin Zone, (1995)

Charter Consolidated Services Ltd., Engineering of a Chloride Roasting Process for Recovering Tin From Complex Ores and Residues, (1984).

Cominco Engineering Services LTD. Vancouver, B.C., Recovery of Tin by Flotation for NovaGold Resources Inc. Mt. Pleasant Property, (1991)

Cooperation Agreement on Mineral Development, An Investigation into the Recovery of Indium and Bismuth from Mount Pleasant Ore Samples, (1995)

Cooperation Agreement on Mineral Development, Capital and Operating Cost Study, Mount Pleasant Tin Project, New Brunswick, For NovaGold Resources Inc., (1991)

Cooperation Agreement on Mineral Development, Recovery of Tin by Flotation for NovaGold Resources Inc. Mount Pleasant Property, New Brunswick, (1991)

Cooperation Agreement on Mineral Development, Report on the Production of a Sulphide Concentrate From Mount Pleasant Ore, New Brunswick, (1993)

D.M. Fraser Services Inc. (1994) - Financial Summary, Piskahegan Resources Limited, Mount Pleasant Property.

D.M. Fraser Services Inc. (1995) - Pre-feasibility Study, Mount Pleasant Property, prepared for Adex Mining Corp., 83 p.

Davy Canada Inc. (1990) - Watts, Griffis and McOuat Limited for Nova Gold Resources Inc., Mount Pleasant Tin Feasibility Study.

Flett, D.S., Holt, G., Voyzey, R.B.G, Chaston, I.R.M., Chloride Roasting Process for Recovery of Tin From Complex Ores and Residues, Transactions of the Institute of Mining and Metallurgy, (1984).

Groupe Minier Sullivan Ltee, Brunswick Tin Mines LTD Comparative Capital and Operating Costs Flotation and Gravity Flowsheets, (1976)

Hosking, K.F.G. (1985) - Report on the North Tin Zone of Mt. Pleasant, New Brunswick, Canada, Mount Pleasant Tungsten Mine, report to Billiton Canada Ltd. (Included in their 1985b report), 6 p.

Jacques Whitford, Background and Documentation for Tailings Flooding Contingency Plan-Mount Pleasant Mine, (2008a)

Jacques Whitford, Scoping Level Review of Requirements and Costs Associated with Environmental Regulatory Requirements to Re-Open the Mount Pleasant Mine,(2008b)

Jacques Whitford Stantec Limited (2009) - Baseline Aquatic Survey for Environmental Effects Monitoring, Mount Pleasant Property, New Brunswick.

Kooiman, G.J.A. (2005), Correspondence to Adex re: Exploration Potential at Mount Pleasant, 4 p.

Kooiman, G.J.A (2004) - Exploration and Development, 20-year Summary Report, Mount Pleasant Property, prepared for Adex Mining Inc., 16 p.

Kooiman, G.J.A., McLeod, M.J. and Sinclair, W.D. (1986), Porphyry Tungsten-Molybdenum Orebodies, Polymetallic Veins and Replacement Bodies, and Tin-Bearing Greisen Zones in the Fire Tower Zone, Mount Pleasant, New Brunswick: in Economic Geology, v. 81, pp. 1356-1373.

Kvaerner Metals Davy Ltd. (1997) - Adex Mining Inc. Mount Pleasant Feasibility Study, New Brunswick: Reference 144900, v. I, II and III (including appendices).

Lac Minerals Limited, Mount Pleasant Tin Feasibility Report, (1988).

Lac Minerals Limited, A Pilot Plant Investigation of The Recovery of Tin from Samples of Mount Pleasant Ore, (1987).

Lakefield Research, A Preliminary Investigation of the Recovery of Tin from a Sample of Mt. Pleasant Tin Ore Submitted by Piskahegan Resources LTd. Progress Report No. 3, (1995).

Lakefield Research, A Preliminary Investigation of The Recovery of Zinc Indium and Bismuth from Mount Pleasant Ore Samples Submitted by Watts, Griffis & Mcouat LTD. Progress Report No.1. (1994).

Lakefield Research, An Investigation of the Recovery of a Selective Zn-In Concentrate from a Mount Pleasant Project Sample, Progress Report No. 1, (1997).

Minerals Associates, Summary Report Mineral Processing Development Programs Phase 2 Detailed Laboratory Testwork Mount Pleasant Mine, (1996).

Mount Pleasant Mines Limited (1963) - Progress Summary and Position at April, 1963.

Mount Pleasant Tungsten Mine (1985) - Mount Pleasant Tungsten Mine Geological Department Mothball Report. Mothball Report, v. I.

Natural Resources and Energy, Mineral Resources, New Brunswick (1990) - Geology, Geochemistry, and Related Mineral Deposits of the Saint George Batholith, Charlotte, Queens, and Kings Counties, New Brunswick. M.J. McLeod, Mineral Resource Report 5, 169 p.

Nieuwenhuis, J.A.M., Recovery of Tin by Chlorination in a Fluidized Bed, Advances in Extractive Metallurgy, Institute of Mining and Metallurgy, (1968).

Parrish, I.S. (1973) - Correspondence from Brunswick Tin Mines Ltd., Sullivan Mining Group re 1973 Ore Reserves, North Zone, Tin #4 Lode, 2 p

Parrish, I.S. and Tully, J.V. (1978) - Porphyry Tungsten at Mt. Pleasant, N.B. Economic Geology and Mineralogy: in the CIM Bulletin, dated June 28th, pp. 93-100.

Resources & Technology Marketing Services Pty Limited (2006) - A Summarized Market Review of the Global Tin Industry for Metals Exploration Limited.

Roskill Information Services Ltd., (2004) - The Economics of Tin Eighth Edition, 2004, Section 7.2.

RPC, Mount Pleasant Mine Flowsheet Development Bench Scale Arsenic Flotation and SCoping Tungsten Leach Tests, (2009)

Ruitenberg, A.A. (1967) - Stratigraphy, Structure and Metallization, Piskahegan-Rolling Dam Area (Northern Appalachians, New Brunswick, Canada), Leidse Geologiche medeligon, v. 40, pp. 79- 120.

SGS Lakefield Research Limited (Oct. 2008) - An Investigation by High Definition Mineralogy into The Mineralogical Characteristics of Seven Head Samples From Mount Pleasant Mine, New Brunswick, project 11911-001, MI5010-May08, MI5012-May08, MI5013-May08, MI5027-Jun08, MI5001-Aug08, – Draft Report.

SGS, An Investigation by High Definition Mineralogy into The Mineralogical Characteristics of Seven Head Samples from Mount Pleasant Mine, New Brunswick, (2008a)

SGS, Mount Pleasant Fire Tower Zone Wolfram Phase 1A Test Program, (2008b)

SGS, Mount Pleasant Fire Tower Zone Wolfram Phase 1B Conceptual Flow Sheet Test Program, (2008c)

SGS, Mount Pleasant Fire Tower Zone Wolfram and North Zone Tin Primary Grind Jigging Test Work, (2008d)

SGS, Mount Pleasant North Zone Tin Phase 1A Test Program, (2008e)

SGS, Mount Pleasant North Zone Tin Phase 1B Conceptual Flow Sheet Test Program, (2008f)

Sinclair, W.D., Kooiman, G.J.A., Martin, D.A. and Kjarsgaard, I.M. (2005) - Geology, Geochemistry and Mineralogy of Indium Resources at Mount Pleasant, New Brunswick, Canada: in Press, Ore Geology Reviews, 23 p.

Sinclair, W.D. (Lefebure, D.V. and Ray, G.E. (editors)). ( 1995a) - Porphyry Mo (Climax-type): in Selected British Columbia Mineral Deposit Profiles, v. 1 – Metallics and Coal, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pp. 105-108.

Sinclair, W.D. (Lefebure, D.V. and Ray, G.E. (editors)). (1995b) - Porphyry Sn: in Selected British Columbia Mineral Deposit Profiles, v. 1 – Metallics and Coal, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pp. 97-100.

Sinclair, W.D., Kooiman, G.J.A. and Martin, D.A. (1988) - Geological Setting of Granites and Related Tin Deposits in the North Zone, Mount Pleasant, New Brunswick: in Current Research, Part B, Geological Survey of Canada, Paper 88-1B, pp. 201-208.

Stantec, Baseline Aquatic Survey for Enviromental Effects Monitoring, Mount Pleasant Property, New Brunswick, (2009)

Strathcona Mineral Services Limited, Feasibility Study of the Brunswick Tin Project MT. Pleasant, New Brunswick Canada, (1979)

Strathcona Mineral Services Limited (1979) - Feasibility Study of the Brunswick Tin Project, Mt. Pleasant, New Brunswick, Canada, prepared for Billiton Exploration Canada Limited, v. II, Final Report, v. III Drawings.

T. Clarke & Associates Consulting Engineers. (1964) - Unpublished Report on Indicated ore on Mount Pleasant Property, July, 1964. 28p.

United States Geological Survey (2007) - 2007 Minerals Yearbook for Tin.

Watts, Griffis and McOuat Limited (P. Dunbar, A. Hara, R. de l'Etoile and T. Boyd) (2006) - A Technical Review of the Mount Pleasant Property, Including A Mineral Resource Estimate on the Fire Tower Zone, Southwestern New Brunswick for Adex Mining Inc.

Watts, Griffis and McOuat Limited (P. Dunbar, Dorota El-Rassi and John S. Rogers). (2008) - A Technical Review of the Mount Pleasant Property Including An Updated Mineral Resource Estimate on the Fire Tower Zone, Southwestern New Brunswick for Adex Mining Inc., 155 pp.

Watts, Griffis and McOuat Limited (P. Dunbar and Robert de l'Etoile of SGS-GeoStat Ltd. (2009) - A Technical Review of the Mount Pleasant Property, Including A Mineral Resource Estimate on the North Zone, Southwestern New Brunswick for Adex Mining Inc., 228 p

SECTION 32.0 DATE AND SIGNATURE PAGE AND CERTIFICATES OF QUALIFIED PERSONS

32.1 Date and Signature Page

The undersigned have prepared the technical report entitled “NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment”, with effective date January 22nd, 2010. The format and content of this report are intended to conform to form 43-101F1 of National Instrument 43-101 (NI 43-101) of the Canadian Securities Administrators.

“J. Dean Thibault” “Tim R. McKeen”

J. Dean Thibault, P. Eng. Tim R. McKeen, P. Eng. Thibault & Associates Inc. Thibault & Associates Inc.

“Stephanie M. Scott” “Trevor Boyd”

Stephanie M. Scott, P. Eng. Trevor Boyd, P. Geo. Thibault & Associates Inc. Adex Mining Inc.

“Andrew Hara”

Andrew Hara, P. Eng. Hara Mining Enterprises Inc.

32.2 Certificates of Qualified Persons

Certificates of qualified persons responsible for preparation of this Technical Report are included in the following pages.

J. Dean Thibault, P.Eng., Principal / Senior Process Chemical Engineer

I, J. Dean Thibault, of Fredericton, New Brunswick, Canada, author of Sections 1.1, 1.5, 1.6, 3.0, 16.0, 25.0, 26.0, 27.0, 28.0, 29.1, 29.4, 29.5, 29.6 and 30.1 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment" with effective date January 22nd, 2010, hereby certify that:

 I am a chemical engineer and principal of Thibault & Associates Inc. with a business address at 330 Alison Blvd., Fredericton, New Brunswick, Canada E3C 0A9.  I am a graduate of Chemical Engineering from the University of New Brunswick 1980.  I have practiced in my profession as a process chemical engineer continuously for a total of 29 years since graduation.  I am a member in good standing of the Association of Professional Engineers and Geoscientists of New Brunswick (APEGNB) with Registration #3689.  My relevant experience for the purpose of the Technical Report includes: i) past experience as a consultant on numerous metallurgical operations and projects around the world for technical and economic assessments, process development and design, operations expansions and troubleshooting; ii) past experience on scoping, pre-feasibility and feasibility studies for mining projects; and iii) past experience as process engineer for NBDNR's technical programs, assessment of feasibility studies and development of process technologies, and;. iv) past experience as a concentrator and hydrometallurgical operations process engineer.  Since 1981, I have worked periodically on various studies related to the development of the Mount Pleasant property; including providing technical input to the 2008 report on "Adex Minerals Corp. Mount Pleasant Fire Tower Zone Scoping Study" (Aker, 2008).  I am specifically responsible for preparing Sections 1.1, 1.5, 1.6, 3.0, 16.0, 25.0, 26.0, 27.0, 28.0, 29.1, 29.4, 29.5, 29.6 and 30.1 of the Technical Report and for supervising the preparation of the overall Technical Report; however, with respect to the sections of the Technical Report not prepared by Thibault & Associates Inc., I have relied upon the qualified persons responsible for preparing such sections.  I visited the Mount Pleasant property on several occasions to gather information for the Technical Report, with my most recent site visit occurring on September 29th, 2009.  I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which would cause the Technical Report to be misleading.  As of the date of this certificate; to the best of my knowledge, information and belief; the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.  I have no interest, direct or indirect, in the Mount Pleasant Property or in other Adex properties, nor do I have any beneficial interest, direct or indirect, in the securities of Adex Mining Inc.  I am independent of the issuer as defined by Section 1.4 of NI 43-101.  I have read National Instrument 43-101 and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

Signed and dated this 22nd day of January, 2010, at Fredericton, New Brunswick

“J. Dean Thibault” J. Dean Thibault, P.Eng. (Thibault & Associates Inc.)

Tim R. McKeen, P.Eng., Process Chemical Engineer

I, Tim R. McKeen, of New Market, New Brunswick, Canada, author of Sections 2.0, 4.0, 5.0, 19.0, 20.0 and 24.0 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment" with effective date January 22nd, 2010, hereby certify that:

 I am a chemical engineer with Thibault & Associates Inc. with a business address at 330 Alison Blvd., Fredericton, New Brunswick, Canada E3C 0A9.  I am a graduate of Chemical Engineering (B.Sc.) from the University of New Brunswick 2000 and Chemical Engineering (M.Sc.) from the University of Saskatchewan 2003.  I have practiced in my profession as a process chemical engineer continuously for a total of 7 years since graduation.  I am a member in good standing of the Association of Professional Engineers and Geoscientists of New Brunswick (APEGNB) with Registration #6082.  My relevant experience for the purpose of the Technical Report includes: i) process design at various levels of detail from conceptual to detailed design for several mineral processing projects involving flotation and hydrometallurgical operations. ii) past experience on scoping, pre-feasibility and feasibility studies for mining projects.  Since 1998, I have worked periodically on various studies, bench scale and pilot test programs related to the development of the Mount Pleasant property; including providing technical input to 2008 report on "Adex Minerals Corp. Mount Pleasant Fire Tower Zone Scoping Study" (Aker, 2008).  I have read the definition of a “qualified person” as defined in National Instrument 43-101 (NI 43-101) and certify that, by reason of my education, affiliation with a professional association as defined in NI 43-101 and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purpose of NI 43-101.  I am specifically responsible for Sections 2.0, 4.0, 5.0, 19.0, 20.0 and 24.0 of the Technical Report.  I visited the Mount Pleasant property on several occasions to gather information for the Technical Report, with my most recent site visit occurring on September 29th, 2009.  I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which would cause the Technical Report to be misleading.  As of the date of this certificate; to the best of my knowledge, information and belief; the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.  I have no interest, direct or indirect, in the Mount Pleasant Property or in other Adex properties, nor do I have any beneficial interest, direct or indirect, in the securities of Adex Mining Inc.  I am independent of the issuer as defined by Section 1.4 of NI 43-101.  I have read National Instrument 43-101 and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

Signed and dated this 22nd day of January, 2010, at Fredericton, New Brunswick

“Tim R. McKeen” Tim R. McKeen, P.Eng. (Thibault & Associates Inc.)

Stephanie M. Scott, P.Eng., Process Chemical Engineer

I, Stephanie M. Scott, of Durham Bridge, New Brunswick, Canada, author of Sections 21.0, 22.0 and 23.0 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment" with effective date January 22nd, 2010, hereby certify that:

 I am a chemical engineer with Thibault & Associates Inc. with a business address at 330 Alison Blvd., Fredericton, New Brunswick, Canada E3C 0A9.  I am a graduate of Chemical Engineering (B.Sc.) from the University of New Brunswick 2002.  I have practiced in my profession as a process chemical engineer continuously for a total of 7 years since graduation.  I am a member in good standing of the Association of Professional Engineers and Geoscientists of New Brunswick (APEGNB) with Registration #6565.  My relevant experience for the purpose of the Technical Report includes: i) process design at various levels of detail from conceptual to detailed design for several mineral processing and wastewater treatment projects. ii) past experience on preparation of scoping, pre-feasibility and feasibility studies for mining projects.  Since 2008, I have worked periodically on various studies, bench scale and pilot test programs related to the development of the Mount Pleasant property; including providing technical input to 2008 report on "Adex Minerals Corp. Mount Pleasant Fire Tower Zone Scoping Study" (Aker, 2008).  I have read the definition of a “qualified person” as defined in National Instrument 43-101 (NI 43-101) and certify that, by reason of my education, affiliation with a professional association as defined in NI 43-101 and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purpose of NI 43-101.  I am specifically responsible for Sections 21.0, 22.0 and 23.0 of the Technical Report.  I have visited the Mount Pleasant property on several occasions, with my most recent site visit occurring on September 17th, 2008.  I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which would cause the Technical Report to be misleading.  As of the date of this certificate; to the best of my knowledge, information and belief; the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.  I have no interest, direct or indirect, in the Mount Pleasant Property or in other Adex properties, nor do I have any beneficial interest, direct or indirect, in the securities of Adex Mining Inc.  I am independent of the issuer as defined by Section 1.4 of NI 43-101.  I have read National Instrument 43-101 and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

Signed and dated this 22nd day of January, 2010, at Fredericton, New Brunswick

“Stephanie M. Scott” Stephanie M. Scott, P.Eng. (Thibault & Associates Inc.)

Trevor Boyd, P.Geo., Geological Consultant

I, Trevor Boyd of Toronto, Ontario, Canada, author of Sections 1.2, 1.3, 7.0 to 15.0 (inclusive), 17.0, 29.2 and 30.2 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment" with effective date January 22nd, 2010, hereby certify that:

 I reside at 148 Lascelles Blvd., Toronto, Ontario, M5P 2E6  In 1988 I earned a M.Sc.(A) Minex degree in Earth Science from McGill University, Montreal, Quebec and a Ph.D. in Geology in 1996 from University of Toronto, Toronto, Ontario.  I am a member in good standing with the Association of Professional Geoscientists of Ontario (Membership Number 1023).  I have worked as a professional geoscientist for a total of 17 years since the completion of my M.Sc. degree. My relevant experience for the purpose of this Technical Report is: i) Worked extensively on projects in the exploration for gold, uranium, other precious metal and base metal deposits, including VMS-type, magmatic-type, vein-type and porphyry- type deposits; and ii) Held positions as Exploration Geologist and Project Supervisor for major and junior Canadian mining companies in Canada.  I have read the definition of a “qualified person” as defined in National Instrument 43-101 (NI 43-101) and certify that, by reason of my education, affiliation with a professional association as defined in NI 43-101 and past relevant work experience, I fulfil the requirements to be a “qualified person” for the purpose of NI 43-101.  I am a Geological Consultant and qualified person directly working for Adex Mining Inc. to provide geological and logistical support to Thibault & Associates Inc. in the preparation of this report.  I am specifically responsible for Sections 1.2, 1.3, 7.0 to 15.0 (inclusive), 17.0, 29.2 and 30.2 including the geological, exploration, and mineral resources estimation portions of this report.  I have earned the majority of my income during the preceding two years from Adex Mining Inc.  I, directly and indirectly, hold securities of Adex Mining Inc.  I am a qualified person for the purpose of National Instrument 43-101 acting in a non- independent capacity.  I have visited the Adex Mount Pleasant property numerous times since October 2005, with the most recent site visit on June 4th and 5th, 2009.  I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which would cause the Technical Report to be misleading.  As of the date of this certificate; to the best of my knowledge, information and belief; the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.  I have read National Instrument 43-101 and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

Signed and dated this 22nd day of January, 2010, at Fredericton, New Brunswick

“Trevor Boyd” Trevor Boyd, P.Geo. (Adex Mining Inc.)

Andrew Hara (Harasimowicz), P.Eng., Mining Engineer

I, Andrew Hara (Harasimowicz), of Mississauga, Ontario, Canada, author of Sections 1.4, 18.0, 29.3 and 30.3 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant North Zone Preliminary Assessment" with effective date January 22nd, 2010, hereby certify that:

 I am a mining engineer with Hara Mining Enterprises Inc. with a business address at 1577 Camelford Rd., Mississauga, Ontario, Canada, L5J 3C8.  I am a graduate of the Academy of Mining and Metallurgy Krakow-Poland (B.Sc. Eng., 1975).  I have practiced in my profession as a mining engineer continuously for a total of 35 years since graduation.  I am a member in good standing of the Association of Professional Engineers of Ontario (APEO) with Registration #90247024.  My relevant experience for the purpose of the Technical Report includes: i) prepared conceptual mine plan for inclusion with "Adex Minerals Corp. Mount Pleasant Fire Tower Zone Scoping Study" by Aker Solutions (Aker, 2008); ii) reviewing and reporting as a consultant on a number of mining operations and projects around the world for due diligence, operations expansions and troubleshooting; iii) past experience on scoping, pre-feasibility and feasibility studies for mining projects; iv) past experience as the Director of Mining with a Major Canadian Mining Corporation; v) past experience as a Mine Superintendent; vi) past experience as a Chief Mine Engineer, and; vii) past experience as a Senior Project Engineer, Researcher and Production Supervisor  I have read the definition of a “qualified person” as defined in National Instrument 43-101 (NI 43-101) and certify that, by reason of my education, affiliation with a professional association as defined in NI 43-101 and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purpose of NI 43-101.  I am specifically responsible for Sections 1.4, 18.0, 29.3 and 30.3 of the Technical Report.  I visited the Mount Pleasant property on several occasions and most recently on June 16th, 2009, to gather information for the Technical Report.  I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which would cause the Technical Report to be misleading.  As of the date of this certificate; to the best of my knowledge, information and belief; the Technical report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.  I have no interest, direct or indirect, in the Mount Pleasant Property or in other Adex properties, nor do I have any beneficial interest, direct or indirect, in the securities of Adex Mining Inc.  I am independent of the issuer as defined by Section 1.4 of NI 43-101.  I have read National Instrument 43-101 and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

Signed and dated this 22nd day of January, 2010, at Mississauga, Ontario

“Andrew Hara” Andrew Hara, P.Eng. (Hara Enterprises Inc.)

Thibault & Associates Inc. Applied Process Chemical Engineering Mount Pleasant Property North Zone Preliminary Assessment

Appendix A

Process Block Diagrams and Mass Balance

Mount Pleasant Property as of 1985. Concentrator and ore storage A-Frame buildings remain on site as of January 2010

Adex Mining Inc. Mount Pleasant North Zone - Tin and Indium Development

Drawing Legends Unit Operations Breakdown Reagents / Consumables Plant Area Codes

Coarse Particle Size Separation – Coarse Fraction 01 Crushing 02 Grinding 01 Crushing Bowls Fines Particle Size Separation – Fine Fraction 03 Size Classification 02 Crushing Wear Plates 10 Crushing 04 Gravity Separation 03 Grinding Media – Rods 20 Grinding Conc Concentrate – recoverable metal 04 Magnetic Separation 04 Grinding Media - Balls 31 Magnetic Separation / Zinc Flotation 05 Flotation 05 Grinding Mill Liners 32 Arsenic Flotation Tail Tailings – nonrecoverable metal 06 Dewatering: 33 Tin Flotation 06 Zinc Flotation 41 Tin Chloride Pyromet O/S Oversize from screening operations 06A Filtration 06B Clarification 06A Collector: 42 Indium and Zinc Metal Hydromet 06B Frother: 50 Tailings and Wastewater Treatment U/S Undersize from screening operations 06C Thickening 07 Solids Drying 06C Depressant: 60 Process and Domestic Water 06D Activator: 70 Utilities O/F Overflow (fines) from cyclone operations 08 Liquid Heat Exchange 09 Atmospheric Leaching 80 Reagent Systems U/F Underflow (coarse) from cyclone operations 10 Pressure Leaching 07 Arsenic Flotation 11 Neutralization 07A Collector: PW Process Water 12 Precipitation 07B Frother: 13 Pelletization 07C Depressant: ST Steam 14 Cementation 07D Activator: 15 Solvent Extraction CW Cooling Water 16 Electrowinning 08 Tin Flotation Drawing Number Code 17 Electrolysis 08A Collector: 3.02 Stream number – mass and energy balance 18 Electro-Smelting 08B Frother: 08C Depressant: Solid – Liquid Separation 19 Scrubbing and Absorption S/L 20 High Temperature Chlorination 08D Activator: Discipline Code 21 Hot Gas Condensing Plant Area Code Page Number 22 Crystallization 09 Flocculant (05 process design) L/G Liquid - Gas Separation 23 Ion Exchange 10 Lime 24 Product Packaging 11 Ferric Chloride 12 Caustic (sodium hydroxide) S/G Solid – Gas Separation 25 Reagent Systems 26 Fuel Systems 13 Hydrochloric Acid Stream Color Legend 27 Steam Boiler 14 Chlorine Heat Exchanger 28 Oxygen Generation 15 Sodium Carbonate 29 Compressed Air Systems 16 Sodium Sulfide 30 Dust and Fume Control 17 Diatomaceous Earth Water and Wastewater Unit operations which define mixing, 18 Calcium Chloride Unit Operation reaction, conversion and/or separation. 19 Diluent (kerosene low aromatic) Concentrator Solids 20 Solvation SX Reagent 21 Flux (to be determined) Hydromet Stream 22 Activated Alumina Main process stream 23 Zinc Plate / Rods Solid Waste Stream 24 Liquid Fuel (No 2 Fuel Oil) Duct Works – Low pressure Gas Stream 25 Sodium Chloride Pyromet Stream 26 Pulverized Coal Alternative process stream 27 Agglomeration Binder Reagent Recycle Electrical power used for conversion Air or Gas Duct Works

Battery Limits – inside battery limit (ISBL)

Organic Stream (solvent extraction)

Copyright © Thibault & Associates Inc. 2009: This drawing is confidential and exclusive rights of Thibault & Associates Inc. No unauthorized use, copy, change or disclosure is permitted without prior written agreement of Thibault & Associates Inc.

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Block Diagram Title Sheet Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260501 00 00 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 North Zone Run-of-Mine Ore

Reclaim Process Water

Comminution Crushing and Grinding

Tin Concentrate Beneficiation (Flotation, Magnetic and Zinc Concentrate Gravity Separation)

Treated Tail Gas Indium / Zinc Fuel Mine Water Tin Pyromet Hydromet Air

Wastewater Tailings Tin Chloride Treatment Disposal Cells Leachate Zinc Residue

Indium Metal

Wastewater Treatment

Precipitation

Hydroxide Sludge Disposal Cell

Treated Wastewater to Hatch Brook Tailings Disposal Pond (existing)

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDT AVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. North Zone Ore Processing Process Overview Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project Number Drawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 6526 0501 00 02 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 North Zone Run-of-Mine Ore Treated Tail Gas

Concentrate Dewatering Crushing Pelletization Magnetic Reactor Separation Gas Treatment

Zinc Concentrate Metal Sulfides Leach Fuel Grinding Zinc Flotation Ambient Air Chlorination Gas Quench S/L Reactor Scrubber

Solution Reduction Desliming Precipitation Magnetic Concentrate Magnetic Solution Purification Arsenic Solids Quench Precipitation Fine Heavy Concentrate Heavy Fine

Flotation Concentrate Tin Slimes S/L Ferric Chloride S/L Fines Gravity Separation

Arsenic Concentrate Arsenic Solvent Tin Flotation Extraction Gravity Separation Mine Water Tin Chloride Crystallization Indium Cementation

Tailings Treatment Chlorine Dewatering Tin Chloride Concentrate S/L Dewatering Dewatering Tailings Zinc Drying Drying Chlorination Electrowinning Iron Oxyhydrolysis

Reclaim Process Water Indium Metal Tin Chloride Electrorefining Zinc Metal

Indium Metal

Tin Concentrate

Treated Wastewater Wastewater Solid Disposal Cell Leachate Treatment

WWT Solid Residue Copyright © Thibault & Associates Inc. 2009: This drawing is confidential and exclusive rights of Thibault & Associates Inc. No unauthorized use, copy, change or disclosure is permitted without prior written agreement of Thibault & Associates Inc.

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Concentrator, Indium Hydromet and Tin Pyromet Systems Overview Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260501 00 03 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 North Zone Run-of-Mine Ore From Mining Operations

Ore Storage

U/S Secondary Fine Ore Screening

O/S Dust Free Air Vent to Atmosphere O/S Oversize Screening

Wear Plates Dust Dust U/S Collector Wear Plates

Dust

Secondary Crushing Oversize Ore Breaker Primary Crushing

Sweep Air

Crushed Ore Storage Coarse Ore Coarse

Crushed Ore

To Grinding Circuit

Coarse Ore Storage

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Crushing Circuit Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 10 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Process Water Crushed Ore From Crushing Circuit

Process Water O/F Fines Classification Cyclone

U/F Grinding Media Primary Grinding Process O/F Slimes Water Primary Desliming

U/F

Process O/S Classification Water Screen

U/S Process Water O/F Secondary Desliming Process Water Grinding U/F Media Secondary Grinding

Conc Centrifugal Gravity Separation

Tail

Slimes To Tailing Treatment

Ground Ore

To Magnetic Separation

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Grinding, Desliming and Gravity Circuit Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 20 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Ground Ore Process Water Make-up Lime or Acid From Grinding Desliming Circuit

Collector Process Water

Frother

Conc Magnetic Separation Depressant Conc Zinc Flotation Cleaner Tail Activator Tail

Magnetics Distribution Reclaim Water Flotation Zinc To Tailings Treatment Zinc Flotation Conditioning

Zinc Concentrate Dewatering

Conc Zinc Flotation Zinc Flotation Water Bleed Rougher To Tailings / Wastewater Treatment

Tail

Zinc / Indium Concentrate Conc To Indium Zinc Hydromet Circuit Leach Zinc Flotation Scavenger

Tail

Tin – Arsenic Ore To Arsenic Flotation

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Magnetic Separation and Zinc Flotation Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 31 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Lime or Acid

Collector

Tin – Arsenic Ore Frother From Zinc Flotation Circuit

Depressant Conc Arsenic Concentrate Arsenic Flotation Process Cleaner To Tailings Treatment Water Activator Tail

Arsenic Flotation Conditioning

O/F Arsenic Float Regrind Classsification

Process U/F Water

Process Conc Water Arsenic Flotation Rougher O/S Arsenic Float Tail Regrind Classification Screen

U/S

Conc Arsenic Float Arsenic Flotation Regrind Scavenger Arsenic Flotation Arsenic Flotation Water Tailings Thickener To Wastewater Treatment Tail

Tin Ore To Tin Flotation

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Arsenic Flotation Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 32 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Lime / Acid

Tin Ore Collector From Arsenic Flotation

Frother

Process Water Depressant Conc Tin Flotation Cleaner Activator Tail Tin Flotation WaterReclaim Distribution

Process Water Tin Flotation Conditioning

Tin Concentrate Dewatering

Conc Tin Centrifugal Gravity Concentrator Rougher Conc Tin Flotation Tin Flotation Water Bleed Tail Rougher To Tailings / Wastewater Treatment Hot Oil Tin Concentrate Heater Drying Tail Hot Oil Heating system is optional to Tin Concentrate steam as heating Conc Tin Centrifugal medium. To Tin Chloride Pyromet Circuit Gravity Concentrator Process Scavenger Water Tail Tin Concentrate Conc Packaging Tin Flotation Scavenger Tin Concentrate Tail To End User – Tin Smelter

Tailings To Tailings Treatment

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Tin Flotation Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 33 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Vent

Tin Concentrate From Dewatering Chlorination Off-Gas Pulverized Coal/Coke Dust Collection To Gas Treatment

Calcium Chloride

Fines Recycle Process Water

Tin Concentrate Vent Gas Quench Pelletizer Venturi Scrubber

Tin Chloride Wash Solution From Tin Chloride Air Exhaust Process Water Dewatering / Washing

Fuel Oil Concentrate Pellet Venturi Scrubber Air Dryer Tank

Lime

Reagents

Fuel Oil Chlorination Combustion Gas and Chlorination Vapors Tin Chloride Combustion Air Reactor Solution Purification Vent

Process Water Vapor/Dust Process Water Venturi Scrubber

Chlorination Residue Impurity Precipitate Impurity Precipitate Quench Process Water Filtration and Wash To Tailings Treatment

Slurry Purge Venturi Scrubber Tank Tin Chloride Solution To Crystallization Chlorination Residue To Tailings Treatment Recycle

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: TRMAVP JDT NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Tin Chloride Pyrometallurgical Circuit Unit Operations Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 41 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Sodium Hydroxide

Process Water Treated Off-Gas To Atmosphere

Off-gas Recovered Condensate Acid Recovery Trace Acid Scrubber Scrubber To Wastewater Treatment

Acid Scrubber Blowdown To Wastewater Treatment Tin Chloride Solution From Purification

Cooling Water Cooling Water

Condenser

Crystallizer Feed

Steam and hydrochloric acid gas Drying Off-gas

Tin Chloride Crystallization Dust Collection

Evaporator Steam Condensate

Steam

Air Tin Chloride Drying Process Water (Wash) Condensate

Tin Chloride Wash Solution L Solid / Liquid S Separation To Tin Chloride Venturi Scrubber Recovered Tin Chloride Fines

Dust From Packaging

Tin Chloride Packaging (Drums)

Tin Chloride To Market

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: TRMAVP JDT NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Tin Chloride Crystallization Circuit Unit Operations Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 41 02 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Treated Vent Gas Zinc Concentrate To Atmosphere From Zinc Flotation Dewatering Caustic Solution SX Wash Bleed From Solvent Extraction

Process Water Chlorinator Dross and Anode Slimes Off-Gas From Indium Electrorefining Chlorinator Off-Gas Scrubber Blowdown Vent Scrubber System To Wastewater Treatment

ST Slurry Preheat Vent Leach Residue Wash Solution

Vent

Second Stage Chlorinator Splash Preheating Tower Vent

ST Raffinate Metal Sulfide From Solvent Extraction Leach

First Stage Vent Raffinate Chlorinator

ST Leach Residue Leach Solution Oxyhydrolysis Separation To Solution Purification Reactor

ST Pressurized Oxygen From Oxygen Generator (Utilities) ST Process Water

Pressure Reactor Leach Residue Let Down System Wash / Dewatering

Hydrochloric Acid

Process Water

Iron Oxide Solids Wash / Dewatering Metal Sulfide Leach Residue To Tailings Treatment Iron Oxide Solids To Tailings Treatment Chlorine Gas Make-up Iron Oxide Wash Water From Tonner Cylinder To Wastewter Treatment

Chlorine Gas Copyright © Thibault & Associates Inc. 2009: This drawing is From Zinc Electrowinning confidential and exclusive rights of Thibault & Associates Inc. No unauthorized use, copy, change or disclosure is permitted without prior written agreement of Thibault & Associates Inc.

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Base Metal Sulfide Leach Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 42 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Hydrochloric Acid Leach Solution Process Water From Metal Sulfide Leach

Sodium Carbonate Precoat Diatomaceous Earth Leach Solution Solid Residue Solution Clarification To Tailings Treatment (Filtration)

CW Crystallization (Solution Cooling)

Solvent Extraction Extraction Stage Hydrochloric Acid

Process Water Trace Organic Recovery Hydrochloric Acid

Lead Carbonate Residue SX Raffinate (Fe) To Tailings Treatment To Iron Chlorination Circuit Solution Fltration Spent Electrolyte From Zinc Electrowinning Solvent Extraction Scrub Stage

Sodium Chloride Trace Organic ST Recovery Hydrochloric Acid Sodium Sulfide SX Scrub - Zinc Chloride Solution Iron Powder To Zinc Electrowinning Process Water Solvent Extraction Strip Stage

Copper / Arsenic Cementation Trace Organic Recovery

SX Strip – Indium Chloride Solution Hydrochloric Acid To Indium Cementation / Electro-refining

Process Water Solvent Extraction Acid Wash SX Solvent (Solvation Organic) and Diluent Kerosene

From Reagent Preparation System

Solvent Extraction Organic Wash Bleed Solution CW Organic Make-up To Wastewater Treatment

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Leach Solution Purification Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 42 02 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Spent Electrolyte Indium Chloride (Strip Solution) To Zinc Solvent Extraction Scrub From Solvent Extraction Circuit Zinc Chloride (Scrub Solution) From Solvent Extraction Circuit Hydrochloric Acid Sodium Hydroxide Process Water

Indium Electrowinning Cementation Off-Gas Electrolyte Scrubber Purification Hydrochloric Acid Hydrochloric Acid Electrowinning Scrubber Blowdown To Wastewater Treatment Process Water Process Water

Zinc Electrolyte Impurities Residue Wash Cement Wash Indium Cement Washwater Dewatering Dewatering To Wastewater Treatment To Leach

Optional Indium Electro-refining Circuit

Anode Assembly Solution Recycle Solution

Chlorine Gas (electrowinning off-gas) Indium Anode Slimes ZincMetal Platefor Indium Cementation To Chlorinator Purification Solution for Plate Metal Zinc Electroysis Emergency Blowdown

Flux Sodium Hydroxide Zinc Electrowinning

Indium Indium Melt Dross Dross and Slimes Melt and Cast To Leach Circuit Emergency Electro-smelting Chlorine Scrubber Process Water

Sodium Hypochlorite Process Water

Indium Metal Indium Metal Washwater Wash / Dewatering To Wastewater Treatment

Zinc Plate Washwater Zinc Plate wash Indium Metal To Wastewater Treatment To End User Market Zinc Electrolytic Plate To End User Market

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Indium and Zinc Metal Recovery Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 42 03 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Zinc Flotation Water Bleed

Slimes Tin Flotation Water Bleed From Grinding and Desliming Circuit

Magnetics Chlorination Residue From Magnetic Separation From Tin Chlorination Quench System

Arsenic Concentrate From Arsenic Flotation

Tailings From Tin Flotation

Iron Oxide Solids From Base Metal Sulfide leach / Oxyhydrolysis

Metal Sulfide Leach Residue From Metal Sulfide Leach Circuit

Lead Carbonate Residue From Leach Solution Purification

Lime Copper / Arsenic Residue From Leach Solution Purification

Cooling Water (hot return)

Tailings Neutralization

Flocculant Treated Tailings

To Existing Tailings Pond

Overflow From Tailings Dewatering Tailings Dewatering To Wastewater Treatment System

Tailing dewatering and disposal of tailings as dry disposal will be dependent on control of soluble fluoride in final effluent. Copyright © Thibault & Associates Inc. 2009: This drawing is confidential and exclusive rights of Thibault & Associates Inc. No unauthorized use, copy, change or disclosure is permitted without prior written agreement of Thibault & Associates Inc.

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Tailing Treatment Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 50 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Process Water Bleed From Process Water System

Chlorinator Off Gas Blowdown From BM Sulfide Leach Circuit

Organic Wash Bleed Solution Primary Reaction From Leach Solution Purification

Zinc Electrolyte Impurities From Zinc Electrowinning Metal Recovery

Zinc Plate Washwater From Zinc Electrowinning Metal Recovery

Indium Cement Washwater Clarification From Indium Metal Recovery

Electrowinning Scrubber Blowdown From Indium and Zinc Metal Recovery Circuits Polishing Reaction Boiler Feedwater Treatment Backwash From Utilities – Boiler Feedwater Treatment System Sludge Dewatering

Acid Scrubber Blowdown From Tin Chloride Crystallization Circuit

Mine Water Secondary From Mine (Existing Continuous Overflow From Portal) Clarification

Fluoride Removal Ion Exchange

Backwash Neutralization

Backwash Sedimentation Acidity Control

Dewatered Sludge To Sludge Disposal Cell Treated Wastewater To Existing Tailings Pond

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Wastewater Treatment Block Diagram Mount Pleasant North Zone 00 July 30 2009 Project NumberDrawing Number Revision Preliminary ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 50 02 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Reclaim Water from Tailings Dewatering (optional) From Tailings Treatment Make-up Process Water From Polishing Pond (Tailings Pond) Pumping System

Water from Well – Ground water Supply System

Domestic Water Storage Distribution System Process Water

To Concentrator – Beneficiation Circuit

Water Distribution for Domestic Use – Miners Dry Process Water To Indium Hydromet Circuit

Water Distribution for Domestic Use – Process Facility

Process Water

Water Distribution for Emergency Eye Wash / Shower – Processing Facility To Tin Pyromet Circuit

Process Water Make-up Water for Boiler Systems To Reagent Preparation Circuit To Boiler Make-up Water Treatment System

Fire Water Distribution System Process Water Bleed To Wastewater Treatment

Cooling Water Distribution System

Process Water Storage Distribution

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Process and Domestic Water Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 60 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Ground Water Supply From Domestic Water Supply System

Fuel delivery (No 2 Fuel Oil)

Pressurized Oygen ST Oxygen Generator Fuel Storage Management

Nitrogen Blanketing of Tanks Air Nitrogen (Leach Solution Blanketing) Chlorination Reaction Fuel Supply To Tin Chlorination Reactor Burner System

Boiler Feedwater Treatment System

Flue Gas

Compressed Air – Instrumentation Air and Maintenance Air Systems Air Air Compressor Air Steam Boiiler

Fuel Storage In-tank Heaters Flue Gas

Tin Concentrate Drier (hot oil heater optional for concentrate production as sole production)

Diesel Emergency Power Back-up Slurry Preheat for Base Metal Sulfide Leach Air Back-up Generator (pre-selected motors on compressors, pumps, fans, etc.) Metal Sulfide Leach Reactor – Metal Sulfide Leach Circuit

Oxyhydrolysis Reactor – Base metal Sulfide Leach Circuit

Heat Exchangers for Process Water - Metal Sulfide Leach Circuit

Heat Exchangers for Ferric Chloride Solution - Metal Sulfide Leach Circuit Backwash from Boiler feedwater Treatment To Wastewater Treatment Heat Exchangers for Leach Solution - Leach Solution Purification Circuit

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Utilities Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 70 01 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 Reagent Storage Reagent Preparation Reagent Distribution Process Water (reagent preparation systems)

Lime (Calcium Oxide) Solution 95% CaO Powder / 20 tonne Bulk Shipment Bulk Storage Lime Solution Distribution Line (single line throughout plant) Preparation (Silo) (10% to 15% CaO)

Flocculant

Solution Neat Flocculant Dry Powder / 1 tonne bulk bag Bulk Bag Preparation Storage Area (0.5% solution)

Ferric Chloride

12% Fe Solution / 20 tonne bulk shipment Bulk Storage ( tank)

Caustic (Sodium Hydroxide)

Solution 50% NaOH Solution / 20 tonne bulk shipment Bulk Storage Preparation (tank) (5% solution)

Chlorine

99% Chlorine Gas / 1 tonne bulk shipment (tonner cylinder) Tonner (tonner storage area)

Sodium Carbonate

Solution 95% CaCO3 Powder / 1 tonne bulk bag Bulk Bag Preparation Storage Area (5% solution)

Sodium Sulfide

Solution 50% NaS2 Solution / tote tanks Tote Preparation Storage Area (1% solution)

Diatomaceous Earth

Solution 95% Silicates / 1 tonne bulk bag Bulk Bag Preparation Storage Area (20 % solids slurry))

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Calcium Chloride

95% CaCl2 / 1 tonne Bulk Bags Bulk Bag Storage Area

Diluent (low aromatic kerosene)

100% Diluent / 45 gallon drums Drums Blend Storage Area System

Solvation Solvent Extraction Reagent

100% Reagent / 45 gallon drums Drums Storage Area

Flux

Bulk Bag Storage Area

Activated Aluminia

100% Activated Aluminia/ 1 tonne Bulk Bags Bulk Bag Storage Area

Zinc Plate / Rods

100% Zinc / Drums Drums Storage Area

Client / Site: Designed By Drawn By Checked By Approved By Scale Project: JDTAVP TRM NTS Mount Pleasant North Zone Tin and Indium Development

Drawing Title: Adex Mining Inc. Reagent Systems Block Diagram Mount Pleasant North Zone Preliminary 00 July 30 2009 Project NumberDrawing Number Revision ® St. George, New Brunswick Drawing Number Description Description Rev. Date 65260502 80 02 00 Reference Drawings Status / Revision © Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Tin Ore Crushing, Grinding and Gravity Concentration Checked By: J. Dean Thibault, P.Eng. Page: 1 of 14 Revision: 00 Plant Area 10 - Tin Ore Crushing Circuit Stream Number and Description 10.01 10.02 10.03 10.04 10.05 10.06 Run of Mine Primary Primary Secondary Secondary Crushed Ore Parameter Units Ore Crusher Feed Crusher Prod. Screen Feed Crusher Feed To Grinding Solid Phase Sn Concentration wt% 0.71% 0.71% 0.71% 0.71% 0.71% 0.71% Sn Mass Flow kg/hr 251.5 251.5 251.5 502.9 251.5 251.5 Sn Distribution1 wt% 100.00% 100.00% 100.00% 200.00% 100.00% 100.00% Total Solids Mass Flow tonne/hr 35.4 35.4 35.4 70.8 35.4 35.4 Liquid Phase Sn Concentration g/L ------Sn Mass Flow tonne/hr ------Water Mass Flow tonne/hr 0.000 0.000 0.000 0.000 0.000 0.000 Total Solution Mass Flow tonne/hr 0.000 0.000 0.000 0.000 0.000 0.000 Total Solution Volume Flow m³/hr 0.000 0.000 0.000 0.000 0.000 0.000 Chemical Mass Flow tonne/hr ------Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 Overall Total Mass Flow tonne/hr 35.417 35.417 35.417 70.834 35.417 35.417 Total Volumetric Flow m³/hr 12.427 12.427 12.427 24.854 12.427 12.427 Solids - Percent wt% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Slurry Specific Gravity - 2.850 2.850 2.850 2.850 2.850 2.850 Temperature °C ------General Notes 10 - Tin Ore Crushing Parameters 10 - Run of Mine Ore Grades 1. Tin distribution is calculated as percent of tin in each stream Parameter Units Value Parameter Units Value relative to tin in fine ore feed Run of mine ore feed rate (dry basis) tonne/hr 35.4170 Tin wt% 0.71% (stream 10.01). Secondary crusher screen feed oversize wt% 50.0% Indium ppm 182.73 2. Crushing circuit mass balance is Zinc wt% 1.82% based on 24 hour per day operation. Copper wt% 0.22% For crushing less than 24 hours per day Lead wt% 0.04% (e.g. day shift), flowrates as presented Arsenic wt% 1.42% will need to be adjusted. Tungsten wt% WO3 0.09%

Molybenum wt% MoS2 0.000% Bismuth wt% 0.0700%

Plant Area 20 - Grinding and Desliming Circuit Stream Number and Description 10.06 20.01 60.01 20.02 60.02 20.03 20.04 20.05 20.06 60.03 20.07 60.04 20.08 20.09 20.10 20.11 20.12 20.13 20.14 60.05 1° Mill 1° Mill ProcessWater Grind Cyclone ProcessWater Grind Cyclone Grind Cyclone Grind Screen Grind Screen Grind Screen 2° Mill ProcessWater Fine Ore 1° Desliming 1° Desliming 1° Desliming 2° Desliming 2° Desliming 2° Desliming ProcessWater Parameter Units Feed Discharge To 1° Mill Feed To Cyclone Overflow Underflow Undersize Oversize ProcessWater Discharge To 2° Mill To Desliming Feed Overflow Underflow Feed Overflow Underflow To 2° Desliming Solid Phase Sn Concentration wt% 0.71% 0.71% 0.00% 0.71% 0.00% 0.71% 0.71% 0.71% 0.71% 0.00% 0.71% 0.00% 0.71% 0.61% 0.31% 0.69% 0.69% 0.23% 0.86% 0.00% Sn Mass Flow kg/hr 251.5 251.5 0.0 679.6 0.0 203.9 475.7 47.6 428.2 0.0 428.2 0.0 251.5 273.9 29.9 244.1 244.1 22.5 221.6 0.0 Sn Distribution1 wt% 100.00% 100.00% 0.00% 270.27% 0.00% 81.08% 189.19% 18.92% 170.27% 0.00% 170.27% 0.00% 100.00% 108.93% 11.87% 97.06% 97.06% 8.93% 88.13% 0.00% Total Solids Mass Flow tonne/hr 35.42 35.42 0.00 95.72 0.00 28.72 67.01 6.70 60.30 0.00 60.30 0.00 35.42 44.97 9.58 35.39 35.39 9.56 25.84 0.00 Liquid Phase Sn Concentration g/L ------Sn Mass Flow tonne/hr ------Water Mass Flow tonne/hr 1.476 15.179 13.703 95.722 48.071 67.005 28.716 16.512 15.076 2.872 32.472 17.396 83.517 163.457 148.288 15.169 91.013 79.940 11.073 75.844 Total Solution Mass Flow tonne/hr 1.476 15.179 13.703 95.722 48.071 67.005 28.716 16.512 15.076 2.872 32.472 17.396 83.517 163.457 148.288 15.169 91.013 79.940 11.073 75.844 Total Solution Volume Flow m³/hr 1.476 15.179 13.703 95.722 48.071 67.005 28.716 16.512 15.076 2.872 32.472 17.396 83.517 163.457 148.288 15.169 91.013 79.940 11.073 75.844 Chemical Mass Flow tonne/hr ------Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Overall Total Mass Flow tonne/hr 36.893 50.596 13.703 191.443 48.071 95.722 95.722 23.212 75.381 2.872 92.776 17.396 118.934 208.431 157.868 50.563 126.407 89.496 36.911 75.844 Total Volumetric Flow m³/hr 13.903 27.606 13.703 129.308 48.071 77.081 52.227 18.863 36.236 2.872 53.631 17.396 95.944 179.237 151.649 27.588 103.432 83.293 20.139 75.844 Solids - Percent wt% 96.0% 70.0% 0.0% 50.0% 0.0% 30.0% 70.0% 28.9% 80.0% 0.0% 65.0% 0.0% 29.8% 21.6% 6.1% 70.0% 28.0% 10.7% 70.0% 0.0% Slurry Specific Gravity - 2.654 1.833 1.000 1.481 1.000 1.242 1.833 1.231 2.080 1.000 1.730 1.000 1.240 1.163 1.041 1.833 1.222 1.074 1.833 1.000 Temperature °C ------General Notes 20 - Primary Mill Grinding Parameters 20 - Grind Classification Parameters 20 - Secondary Mill Grinding Parameters 20 - Desliming Parameters 1. Tin distribution is calculated as percent of tin in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value relative to tin in fine ore feed Tin fine ore feed rate tonne/hr 35.42 Classification cyclone feed solids content wt% 50.0% Secondary mill operating solids content wt% 65.0% Primary desliming solids recovery to U/F wt% 78.7% (stream 10.01). Tin fine ore grade wt% Sn 0.71% Classification cyclone underflow solids wt% 70.0% Primary desliming tin recovery to U/F wt% 89.1% Tin fine ore moisture content wt% 4.0% Classification cyclone solids recovery to U/F wt% 70.0% Primary desliming underflow solids content wt% 70.0% Tin ore solids specific gravity - 2.85 Classification screen oversize solids content wt% 80.0% Secondary desliming feed solids content wt% 28.0% Tin concentrate solids specific gravity - 5.50 Classification screen solids recovery to O/S wt% 90.0% Primary desliming solids recovery to U/F wt% 73.0% Primary mill operating solids content wt% 70.0% Wash water addition to classification screen wt% 10.0% Primary desliming tin recovery to U/F wt% 90.8% Primary desliming underflow solids content wt% 70.0% MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Tin Ore Crushing, Grinding and Gravity Concentration Checked By: J. Dean Thibault, P.Eng. Page: 2 of 14 Revision: 00 Plant Area 20 - Centrifugal Separation Desliming Circuit Stream Number and Description 20.15 20.16 20.17 60.06 Centrifugal Centrifugal Deslimed Ore ProcessWater Parameter Units Sep. Tail Sep. Con To Mag Sep To Centrifugal Solid Phase Sn Concentration wt% 0.22% 2.09% 0.88% 0.00% Sn Mass Flow kg/hr 19.8 10.0 231.6 0.0 Sn Distribution1 wt% 7.88% 3.99% 92.12% 0.00% Total Solids Mass Flow tonne/hr 9.10 0.48 26.32 0.00 Liquid Phase Sn Concentration g/L ---- Sn Mass Flow tonne/hr ---- Water Mass Flow tonne/hr 148.235 22.329 33.402 22.276 Total Solution Mass Flow tonne/hr 148.235 22.329 33.402 22.276 Total Solution Volume Flow m³/hr 148.235 22.329 33.402 22.276 Chemical Mass Flow tonne/hr ---- Liquid Specific Gravity - 1.000 1.000 1.000 1.000 Overall Total Mass Flow tonne/hr 157.335 22.808 59.719 22.276 Total Volumetric Flow m³/hr 151.428 22.497 42.636 22.276 Solids - Percent wt% 5.8% 2.1% 44.1% 0.0% Slurry Specific Gravity - 1.039 1.014 1.401 1.000 Temperature °C ---- General Notes 20 - Centrifugal Gravity Desliming Parameters 20 - Overall Desliming Circuit Recoveries 20 - Ore Grades To Magnetic Separation 1. Tin distribution is calculated as percent of tin in each stream Parameter Units Value Parameter Units Value Parameter Units Value relative to tin in fine ore feed Centrifugal separator solids recovery to con wt% 5.0% Tin wt% 92.12% Tin wt% 0.88% (stream 10.01). Centrifugal separator tin recovery to con wt% 33.6% Indium wt% 100.00% Indium ppm 245.92 Centrifugal separator con solids content wt% 90.0% Zinc wt% 100.00% Zinc wt% 2.45% Centrifugal rinsed concentrate solids content wt% 2.1% Copper wt% 100.00% Copper wt% 0.30% Lead wt% 100.00% Lead wt% 0.05% Arsenic wt% 100.00% Arsenic wt% 1.91% Tungsten wt% 92.12% Tungsten wt% 0.11% Molybenum wt% 100.00% Molybenum wt% 0.00% Bismuth wt% 100.00% Bismuth wt% 0.09%

Revision based on desliming after sulfide flotation MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Magnetic Separation and Zinc Flotation Circuit Checked By: J. Dean Thibault, P.Eng. Page: 3 of 14 Revision: 00 Plant Area 31 - Magnetic Separation and Zinc Flotation Circuit Stream Number and Description 31.01 31.02 60.07 31.03 60.08 31.04 31.05 31.06 31.07 31.08 31.09 31.10 31.11 Magnetics Non-magnetics ProcessWater Zinc Rougher ProcessWater Zinc Rougher Zinc Rougher Zinc Scav Zinc Scav Zinc Cleaner Zinc Cleaner Zinc Cleaner Dewatered Parameter Units To Tailings To Zinc Float To Mag Sep Float Feed To Zinc Float Float Con Float Tails Float Con Float Tails Float Feed Float Con Float Tail Zinc Con Solid Phase Zn Concentration wt% 1.05% 2.46% 0.00% 2.75% 0.00% 25.00% 0.72% 10.00% 0.37% 20.75% 50.00% 6.21% 50.00% Zn Mass Flow kg/hr 1.93 642.66 0.00 779.92 0.00 592.74 187.18 93.59 93.59 686.33 549.07 137.27 549.07 Zn Distribution1 wt% 0.30% 99.70% 0.00% 121.00% 0.00% 91.96% 29.04% 14.52% 14.52% 106.48% 85.18% 21.30% 85.18% Total Solids Mass Flow tonne/hr 0.18 26.13 0.00 28.34 0.00 2.37 25.97 0.94 25.03 3.31 1.10 2.21 1.10 Liquid Phase Water Mass Flow tonne/hr 4.421 33.168 4.187 66.129 25.956 9.484 56.646 3.744 52.902 13.23 6.223 7.005 0.591 Total Solution Mass Flow tonne/hr 4.421 33.168 4.187 66.129 25.956 9.484 56.646 3.744 52.902 13.23 6.223 7.005 0.591 Total Solution Volume Flow m³/hr 4.421 33.168 4.187 66.129 25.956 9.484 56.646 3.744 52.902 13.23 6.223 7.005 0.591 Chemical Mass Flow kg/hr ------Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Overall Total Mass Flow tonne/hr 4.605 59.301 4.187 94.471 25.956 11.855 82.616 4.680 77.936 16.53 7.321 9.213 1.689 Total Volumetric Flow m³/hr 4.486 42.338 4.187 76.074 25.956 10.048 66.025 3.966 62.059 14.015 6.484 7.531 0.853 Solids - Percent wt% 4.0% 44.1% 0.0% 30.0% 0.0% 20.0% 31.4% 20.0% 32.1% 20.0% 15.0% 24.0% 65.0% Slurry Specific Gravity - 1.027 1.401 1.000 1.242 1.000 1.180 1.251 1.180 1.256 1.180 1.129 1.223 1.981 Temperature °C ------General Notes 31 - Magnetic Separation Parameters 31 - Magnetic Separation and Zinc Flotation Parameters 31 - Zinc Flotation Parameters 31 - Zinc Flotation Parameters 1. Zinc distribution is calculated as percent of Zinc in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value relative to Zinc in run of mine ore Overall metals loss to magnetics wt% 0.30% Solids recovery to magnetics wt% 0.70% Rougher float concentrate zinc grade wt% 25.0% Cleaner float concentrate zinc grade wt% 50.0% (stream 10.01). Magnetics solids content wt% 4.0% Rougher flotation zinc to concentrate wt% 76.0% Cleaner flotation zinc to concentrate wt% 80.0% Non-magnetics feed grade to zinc flotation Rougher flotation feed solids content wt% 30.0% Cleaner flotation con. solids content wt% 15.0% Tin wt% 0.88% Concentrate specific gravity - 4.2 Rougher flotation concentrate solids content wt% 20.0% Indium ppm 246.9 Tailings specific gravity - 2.85 Thickened zinc concentrate solids content wt% 65.0% Zinc wt% 2.46% Scavenger float concentrate zinc grade wt% 10.0% Process water reclaimed for flotation tonne/hr 5.63 Copper wt% 0.30% Scavenger flotation zinc to concentrate wt% 50.0% Lead wt% 0.05% Scavenger flotation con. solids content wt% 20.0% Arsenic wt% 1.92% Tungsten wt% 0.11% Molybenum wt% 0.00% Bismuth wt% 0.09% Plant Area Stream Number and Description

Parameter Units Solid Phase

Liquid Phase

Overall

General Notes 31 - Zinc Flotation Recoveries 31 - Final Zinc Concentrate Grade 31 - Final Zinc Concentrate Recoveries From ROM Ore 31 - Zinc Flotation Circuit Reagent Dosages

Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value Tin wt% 3.9% Tin wt% 0.82% Tin wt% 3.58% Copper sulfate to roughers g/tonne ore 100.0 Indium wt% 83.3% Indium ppm 4894.50 Indium wt% 83.05% Copper sulfate to cleaners g/tonne ore 20.0 Zinc wt% 85.4% Zinc wt% 50.00% Zinc wt% 85.18% Collector (R-3894) to roughers g/tonne ore 10.0 Copper wt% 5.0% Copper wt% 0.35% Copper wt% 4.99% Collector (R-3894) to cleaners g/tonne ore 2.0 Lead wt% 85.0% Lead wt% 1.09% Lead wt% 84.75% Hydrated lime to roughers g/tonne ore 3500.0 Arsenic wt% 2.0% Arsenic wt% 0.91% Arsenic wt% 1.99% Hydrated lime to cleaners g/tonne ore 250.0

Tungsten wt% 3.5% Tungsten wt% WO3 0.09% Tungsten wt% 3.21% Frother (MIBC) to roughers g/tonne ore 4.0

Molybenum wt% 75.0% Molybenum wt% MoS2 0.00% Molybenum wt% 0.00% Frother (MIBC) to cleaners g/tonne ore 0.5 Bismuth wt% 29.6% Bismuth wt% 0.67% Bismuth wt% 29.51% Other Gangue wt% 10.00% MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Arsenic Flotation Circuit Checked By: J. Dean Thibault, P.Eng. Page: 4 of 14 Revision: 00 Plant Area 32 - Arsenic Flotation Circuit Stream Number and Description 32.01 60.09 32.02 32.03 32.04 32.05 32.06 32.07 32.08 60.10 60.11 32.09 32.10 32.11 32.12 32.13 32.14 32.15 Arsenic Rough ProcessWater Arsenic Rough Arsenic Rough Arsenic Float Arsenic Float Arsenic Float Arsenic Float Arsenic Float ProcessWater ProcessWater Arsenic Float Arsenic Scav Arsenic Scav Arsenic Scav Arsenic Clean Arsenic Clean Arsenic Clean Parameter Units Float Feed To Arsenic Fl Float Con Float Tails Cyclone Feed Cyclone O/F Cyclone U/F Screen U/S Screen O/S To Screen To Regr Mill Regrind Disch Float Feed Float Con Float Tails Float Feed Float Tails Float Con Solid Phase As Concentration wt% 2.04% 0.00% 15.00% 0.61% 0.61% 0.61% 0.61% 0.61% 0.61% 0.00% 0.00% 0.61% 0.61% 5.00% 0.45% 12.50% 5.00% 20.00% As Mass Flow kg/hr 547.67 0.00 399.80 147.87 399.65 119.89 279.75 27.98 251.78 0.00 0.00 251.78 147.87 44.36 103.51 444.16 88.83 355.33 As Distribution1 wt% 108.90% 0.00% 79.49% 29.40% 79.47% 23.84% 55.63% 5.56% 50.06% 0.00% 0.00% 50.06% 29.40% 8.82% 20.58% 88.32% 17.66% 70.65% Total Solids Mass Flow tonne/hr 26.81 0.00 2.67 24.14 65.26 19.58 45.68 4.57 41.11 0.00 0.00 41.11 24.14 0.89 23.26 3.55 1.78 1.78 Liquid Phase Water Mass Flow tonne/hr 62.557 5.513 10.661 51.896 74.033 54.456 19.577 11.257 10.278 1.958 11.859 22.137 65.71 3.549 62.164 14.21 4.143 10.068 Total Solution Mass Flow tonne/hr 62.557 5.513 10.661 51.896 74.033 54.456 19.577 11.257 10.278 1.958 11.859 22.137 65.71 3.549 62.164 14.21 4.143 10.068 Total Solution Volume Flow m³/hr 62.557 5.513 10.661 51.896 74.033 54.456 19.577 11.257 10.278 1.958 11.859 22.137 65.71 3.549 62.164 14.21 4.143 10.068 Chemical Mass Flow kg/hr ------Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Overall Total Mass Flow tonne/hr 89.367 5.513 13.327 76.041 139.289 74.033 65.256 15.825 51.389 1.958 11.859 63.249 89.86 4.436 85.421 17.763 5.918 11.844 Total Volumetric Flow m³/hr 71.964 5.513 11.296 60.368 96.930 61.325 35.605 12.860 24.703 1.958 11.859 36.562 74.185 3.760 70.324 15.056 4.766 10.491 Solids - Percent wt% 30.0% 0.0% 20.0% 31.8% 46.8% 26.4% 70.0% 28.9% 80.0% 0.0% 0.0% 65.0% 26.9% 20.0% 27.2% 20.0% 30.0% 15.0% Slurry Specific Gravity - 1.242 1.000 1.180 1.260 1.437 1.207 1.833 1.231 2.080 1.000 1.000 1.730 1.211 1.180 1.215 1.180 1.242 1.129 Temperature °C ------General Notes 32 - Arsenic Flotation Feed Grades 32 - Arsenic Flotation Parameters 32 - Arsenic Flotation Parameters 32 - Arsenic Flotation Regrind Parameters 1. Arsenic distribution is calculated as percent of Arsenic in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value relative to Arsenic in run of mine ore Tin wt% 0.89% Concentrate specific gravity - 4.2 Classification cyclone underflow solids wt% 70.0% (stream 10.01). Indium ppm 40.19 Tailings specific gravity - 2.85 Scavenger float concentrate arsenic grade wt% 5.0% Classification cyclone solids recovery to U/F wt% 70.0% Zinc wt% 0.35% Scavenger flotation arsenic to concentrate wt% 30.0% Classification screen oversize solids content wt% 80.0% Copper wt% 0.28% Rougher float concentrate arsenic grade wt% 15.0% Scavenger flotation con. solids content wt% 20.0% Classification screen solids recovery to O/S wt% 90.0% Lead wt% 0.01% Rougher flotation arsenic to concentrate wt% 73.0% Wash water addition to classification screen wt% 10.0% Arsenic wt% 1.83% Rougher flotation feed solids content wt% 30.0% Cleaner float concentrate arsenic grade wt% 20.0% Arsenic float regrind mill operating solids wt% 65.0% Tungsten wt% 0.11% Rougher flotation concentrate solids content wt% 20.0% Cleaner flotation arsenic to concentrate wt% 80.0% Molybenum wt% 0.00% Cleaner flotation con. solids content wt% 15.0% Bismuth wt% 0.06%

Plant Area Stream Number and Description

Parameter Units Solid Phase

Liquid Phase

Overall

General Notes 32 - Arsenic Flotation Recoveries 32 - Final Arsenic Concentrate Grade 32 - Final Arsenic Concentrate Recoveries From ROM Ore 32 - Arsenic Flotation Circuit Reagent Dosages

Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value Tin wt% 4.2% Tin wt% 0.52% Tin wt% 3.71% Sulfuric acid to roughers g/tonne ore 2000.0 Indium wt% 47.2% Indium ppm 267.31 Indium wt% 7.34% Sulfuric acid to cleaners g/tonne ore 0.0 Zinc wt% 42.0% Zinc wt% 2.07% Zinc wt% 5.69% Collector (PAX) to roughers g/tonne ore 250.0 Copper wt% 55.4% Copper wt% 2.15% Copper wt% 49.00% Collector (PAX) to cleaners g/tonne ore 25.0 Lead wt% 50.0% Lead wt% 0.06% Lead wt% 6.98% Collector (R-3894) to roughers g/tonne ore 5.0 Arsenic wt% 77.4% Arsenic wt% 20.00% Arsenic wt% 70.65% Collector (R-3894) to cleaners g/tonne ore 0.0

Tungsten wt% 4.2% Tungsten wt% WO3 0.06% Tungsten wt% 3.48% Frother (MIBC) to roughers g/tonne ore 16.0

Molybenum wt% 50.0% Molybenum wt% MoS2 0.00% Molybenum wt% 0.00% Frother (MIBC) to cleaners g/tonne ore 0.5 Bismuth wt% 57.7% Bismuth wt% 0.53% Bismuth wt% 37.82% MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Tin Flotation Circuit Checked By: J. Dean Thibault, P.Eng. Page: 5 of 14 Revision: 00 Plant Area 33 - Tin Flotation Circuit Stream Number and Description 33.01 33.02 33.03 33.04 33.05 33.06 60.12 33.07 60.13 33.08 33.09 60.14 33.10 33.11 33.12 33.13 33.14 33.15 33.16 Tin Rougher Tin Rougher Tin Rougher Tin Scavenger Tin Scavenger Tin Rougher ProcessWater Tin Rougher ProcessWater Tin Rougher Tin Scavenger ProcessWater Tin Scavenger Tin Cleaner Tin Cleaner Tin Cleaner Dewatered Dried Combined Tails Parameter Units Float Feed Float Con Float Tails Float Con Float Tails Centrif Feed To Centr Feed Centrif Con To Centr Con Centrif Tails Centrif Con To Centr Con Centrif Tails Float Feed Float Con Float Tails Tin Con Tin Con To Tailings Solid Phase Sn Concentration wt% 0.97% 10.94% 0.14% 4.80% 0.09% 1.65% 0.00% 3.58% 0.00% 0.83% 1.03% 0.00% 0.69% 10.22% 20.00% 1.89% 20.00% 20.00% 0.11% Sn Mass Flow kg/hr 229.12 197.96 31.16 11.50 19.66 25.39 0.00 16.50 0.00 8.89 4.44 0.00 4.44 209.45 188.51 20.95 188.51 188.51 24.10 Sn Distribution1 wt% 91.11% 78.72% 12.39% 4.57% 7.82% 10.10% 0.00% 6.56% 0.00% 3.53% 1.77% 0.00% 1.77% 83.29% 74.97% 8.33% 74.97% 74.97% 9.59% Total Solids Mass Flow tonne/hr 23.72 1.81 21.91 0.24 21.67 1.54 0.00 0.46 0.00 1.08 0.43 0.00 0.65 2.05 0.94 1.11 0.94 0.94 22.32 Liquid Phase Water Mass Flow tonne/hr 64.58 7.238 57.346 1.357 55.989 10.757 5.244 2.420 2.396 10.733 2.259 2.236 10.710 8.60 5.341 3.25 0.508 0.050 66.70 Total Solution Mass Flow tonne/hr 64.58 7.238 57.346 1.357 55.989 10.757 5.244 2.420 2.396 10.733 2.259 2.236 10.710 8.60 5.341 3.25 0.508 0.050 66.70 Total Solution Volume Flow m³/hr 64.58 7.238 57.346 1.357 55.989 10.757 5.244 2.420 2.396 10.733 2.259 2.236 10.710 8.60 5.341 3.25 0.508 0.050 66.70 Chemical Mass Flow kg/hr ------Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Overall Total Mass Flow tonne/hr 88.303 9.047 79.256 1.597 77.659 12.294 5.244 2.881 2.396 11.809 2.689 2.236 11.356 10.64 6.284 4.36 1.450 0.992 89.01 Total Volumetric Flow m³/hr 72.907 7.873 65.034 1.441 63.592 11.297 5.244 2.582 2.396 11.110 2.410 2.236 10.937 9.314 5.672 3.642 0.838 0.380 74.53 Solids - Percent wt% 26.9% 20.0% 27.6% 15.0% 27.9% 12.5% 0.0% 16.0% 0.0% 9.1% 16.0% 0.0% 5.7% 19.2% 15.0% 25.4% 65.0% 95.0% 25.1% Slurry Specific Gravity - 1.211 1.149 1.219 1.108 1.221 1.088 1.000 1.116 1.000 1.063 1.116 1.000 1.038 1.143 1.108 1.197 1.730 2.609 1.194 Temperature °C ------General Notes 33 - Tin Flotation Feed Grades 33 - Tin Flotation Parameters 33 - Tin Flotation Parameters 33 - Tin Flotation Parameters 1. Tin distribution is calculated as percent of tin in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value relative to tin in run of mine ore Tin wt% 0.91% Concentrate specific gravity - 4.2 Scavenger float concentrate tin grade wt% 4.8% Tin rougher centrifugal feed solids content wt% 12.5% (stream 10.01). Indium ppm 22.84 Tailings specific gravity - 2.85 Scavenger flotation tin to concentrate wt% 36.9% Tin rougher centrifugal solids recovery to con wt% 30.0% Zinc wt% 0.22% Scavenger flotation con. solids content wt% 15.0% Tin rougher centrifugal tin recovery to con wt% 65.0% Copper wt% 0.13% Rougher float concentrate tin grade wt% 10.9% Tin rougher centrifugal concentrate solids wt% 95.0% Lead wt% 0.00% Rougher flotation tin to concentrate wt% 86.4% Cleaner float concentrate tin grade wt% 20.0% Tin rougher centrifugal rinsed con solids wt% 16.0% Arsenic wt% 0.45% Rougher flotation feed solids content wt% 30.0% Cleaner flotation tin to concentrate wt% 90.0% Tin scav centrifugal solids recovery to con wt% 40.0% Tungsten wt% 0.11% Rougher flotation concentrate solids content wt% 20.0% Cleaner flotation con. solids content wt% 15.0% Tin scav centrifugal tin recovery to con wt% 50.0% Molybenum wt% 0.00% Tin scav centrifugal concentrate solids wt% 95.0% Bismuth wt% 0.03% Dewatered tin concentrate solids content wt% 65.0% Tin scav centrifugal rinsed con solids wt% 16.0% Dried tin concentrate moisture content wt% 5.0% Tin concentrate dryer heat load kW 172.1 Process water recovered for recycle tonne/hr 4.834 Steam heating option steam consumption tonne/hr 0.308 Plant Area Stream Number and Description

Parameter Units Solid Phase

Liquid Phase

Overall

General Notes 33 - Tin Flotation Recoveries 33 - Final Tin Concentrate Grade 33 - Final Tin Concentrate Recoveries From ROM Ore 33 - Tin Flotation Circuit Reagent Dosages

Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value Tin wt% 88.7% Tin wt% 20.00% Tin wt% 74.97% Sulfuric acid to roughers g/tonne ore 2000.0 Indium wt% 5.0% Indium ppm 28.18 Indium wt% 0.41% Sulfuric acid to cleaners g/tonne ore 0.0 Zinc wt% 5.0% Zinc wt% 0.27% Zinc wt% 0.39% Sodium silicofluoride to roughers g/tonne ore 500.0 Copper wt% 5.0% Copper wt% 0.16% Copper wt% 1.97% Sodium silicofluoride to cleaners g/tonne ore 0.0 Lead wt% 5.0% Lead wt% 0.01% Lead wt% 0.35% Collector (SPA) to roughers g/tonne ore 230.0 Arsenic wt% 5.0% Arsenic wt% 0.55% Arsenic wt% 1.03% Collector (SPA) to cleaners g/tonne ore 0.0

Tungsten wt% 88.7% Tungsten wt% WO3 2.38% Tungsten wt% 70.29% Frother (MIBC) to roughers g/tonne ore 20.0

Molybenum wt% 5.0% Molybenum wt% MoS2 0.00% Molybenum wt% 0.00% Frother (MIBC) to cleaners g/tonne ore 0.0 Bismuth wt% 5.0% Bismuth wt% 0.04% Bismuth wt% 1.39% Iron wt% 0.55% Sulfur wt% 0.53% Thorium02 + Uranium308 wt% 0.00% MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Tin Chloride Circuit Checked By: J. Dean Thibault, P.Eng. Page: 6 of 14 Revision: 00 Plant Area 40 - Tin Concentrate Pelletizing 40 - Tin Concentrate Chlorination Roast Stream Number and Description 33.15 80.01 80.02 60.15 41.01 41.02 41.03 41.04 41.05 41.06 41.07 41.08 60.16 41.09 41.10 41.11 60.17 Low Grade Pulverized Calcium ProcessWater Pellets To Air To Fuel Oil To Dried Con. Fuel Oil To Comb. Air To Chlorinator Chlorinator ProcessWater Quench Slurry Chlorinator Crude SnCl2 ProcessWater Parameter Units Concentrate Coal/Coke Chloride To Pulverizer Dryer Pellet Dryer Pellet Dryer Pellets Chlorinator Chlorinator Gas Product Solid Residue To Quench To Tailings Gas To Treat Solution To SnCl2 Scrub Solid Phase Sn Concentration wt% 20.00% 0.00% 0.00% 0.00% 13.14% 0.00% 0.00% 13.14% 0.00% 0.00% 0.00% 0.49% 0.00% 0.49% 0.00% 0.00% 0.00% Sn Mass Flow kg/hr 188.51 0.000 0.000 0.000 188.508 0.000 0.000 188.508 0.000 0.000 0.000 3.770 0.000 3.770 0.000 0.000 0.000 Sn Distribution1 wt% 75.0% 0.0% 0.0% 0.0% 75.0% 0.0% 0.0% 75.0% 0.0% 0.0% 0.0% 1.5% 0.0% 1.5% 0.0% 0.0% 0.0% Chemical Mass Flow kg/hr - 28.61 349.00 - - 0.00 0.00 - 0.00 0.00 0.00 0.00 - 0.00 0.00 0.00 - Total Solids Mass Flow tonne/hr 0.943 0.030 0.349 0.000 1.435 0.000 0.000 1.435 0.000 0.000 0.000 0.768 0.000 0.768 0.000 0.005 0.000 Liquid Phase Sn Concentration g/L 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 93.9 0.0 Sn Mass Flow kg/hr 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 179.196 0.000 Sn Distribution1 wt% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 71.3% 0.0% Water Mass Flow tonne/hr 0.050 0.000 0.113 0.146 0.196 0.000 0.000 0.145 0.000 0.000 0.000 0.000 5.022 5.022 0.000 1.813 1.668 Total Solution Mass Flow tonne/hr 0.050 0.000 0.113 0.146 0.196 0.000 0.073 0.145 0.064 0.000 0.000 0.000 5.022 5.022 0.000 2.099 1.668 Total Solution Volume Flow m³/hr 0.050 0.000 0.113 0.146 0.196 0.000 - 0.145 - 0.000 0.000 0.000 5.022 5.022 0.000 1.908 1.668 Chemical Mass Flow tonne/hr ------0.000 - 0.000 ------Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 - 1.000 - 1.000 1.000 1.000 1.000 1.000 1.000 1.100 1.000 Gas Phase Sn Mass Flow kg/hr ------184.738 - - - 5.542 - - Sn Distribution1 wt%------Total Gas Mass Flow tonne/hr -----10.045 - - - 0.628 1.504 - - - 1.068 - - Overall Total Mass Flow tonne/hr 0.992 0.030 0.462 0.146 1.631 10.045 0.073 1.580 0.064 0.628 1.504 0.768 5.022 5.790 1.068 2.104 1.668 Total Volumetric Flow m³/hr 0.259 - - 0.146 0.515 - - 0.464 ----5.022 5.192 - 1.908 1.668 Solids - Percent wt% 95.0% 100.0% 100.0% 0.0% 88.0% 0.0% 0.0% 98.0% 0.0% 0.0% 0.0% 100.0% 0.0% 13.3% 0.0% 0.2% 0.0% Slurry Specific Gravity - 3.830 - - 1.000 3.169 ------1.000 1.115 - 1.103 1.000 Temperature °C 20.0 20.0 20.0 20.0 20.0 20.0 20.0 175.0 20.0 20.0 875.0 875.0 15.0 50.0 72.5 72.5 20.0 General Notes 40 - Tin Concentrate Pelletizing Parameters 40 - Tin Chlorination Reactor 40 - Tin Chlorination Reactor 40 - Tin Chlorination Residue and Gas Quench 1. Tin distribution is calculated as percent of tin in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value relative to tin in run of mine ore Tin concentrate moisture content wt% 8.0% Concentrate pellet feed moisture content wt% 2.0% Chlorination reactor operating temperature °C 875.0 Residue Quench (stream 10.01). Tin concentrate solids specific gravity - 4.5 Concentrate pellet feed iron content wt% 10.0% Chlorination reactor burner thermal efficiency % 75.0% Residue quench tank operating temperature °C 50.0 Pellet moisture content wt% 12.0% Concentrate pellet feed fluoride content wt% 5.0% Ore calcination relative to solids heat-up % 40.0% Process water temperature to quench tank °C 15.0 Calcium chloride stoichiometry ratio - 2.0 Reactor off-gas products Volatilization Off-Gas Heat loss relative to solids heat-up % 40.0% Residue quench tank heat load kW 204.3 Carbon stoichiometry ratio - 1.5 Tin 98.0% kg/hr 184.738 Chlorination reactor heat load Coal/Coke carbon content wt% 95.0% Zinc 81.0% kg/hr 2.053 Solids heat-up kW 323.7 Gas Quench/Scrubbing Calcium chloride purity as CaCl22H2O wt% 100.0% Copper 13.0% kg/hr 0.200 Ore calcination reactions kW 129.5 Tin chloride concentration g/L SnCl2 150.0 Pelletizer feed temperature °C 20.0 Lead 90.0% kg/hr 0.045 Heat loss kW 129.5 Tin chloride solution density tonne/m³ 1.10 Concentrate solids heat capacity kJ/kg°C 1.16 Arsenic 99.0% kg/hr 5.124 Total kW 582.6 Dryer outlet temperature °C 175.0 Tungsten 0.0% kg/hr 0.000 Total heat load as fuel kW 776.8 Pellet dryer air flow ratio kg air/kg pellet 7.0 Molybenum 20.0% kg/hr 0.000 Pellet dryer burner thermal efficiency % 75.0% Iron 19.0% kg/hr 17.908 Fuel For Dryer tonne/hr 0.073 Pellet dryer heat load kW 882.8 Fluoride 20.0% kg/hr 9.425 Fuel For Chlorination Reactor tonne/hr 0.064 MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Tin Chloride Circuit Checked By: J. Dean Thibault, P.Eng. Page: 7 of 14 Revision: 00 Plant Area 40 - Tin Chloride Solution Purification 40 - Tin Chloride Crystallization Circuit Stream Number and Description 41.12 41.13 41.14 90.01 41.15 41.16 60.18 41.17 41.18 41.19 41.20 41.21 Impurity SnCl2 Soln Crystallizer Steam To Crystallizer Condensate Condenser Tin Chloride Mother Liquor Mother Liquor Wet SnCl2 Dry SnCl2 Parameter Units Precipitate To Crystallizer Feed Crystallizer Vapor To WWT Cooling Water Crystal Slurry Filtrate Purge to WWT Crystals Crystals Solid Phase Sn Concentration wt% 16.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 62.60% 0.00% 0.00% 62.60% 62.60% Sn Mass Flow kg/hr 8.96 0.000 0.000 0.000 0.000 0.000 0.000 170.094 0.000 0.000 170.094 170.094 Sn Distribution1 wt% 3.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 67.6% 0.0% 0.0% 67.6% 67.6% Chemical Mass Flow kg/hr 46.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Solids Mass Flow tonne/hr 0.056 0.000 0.000 0.000 0.000 0.000 0.000 0.272 0.000 0.000 0.272 0.272 Liquid Phase 0 Sn Concentration g/L 0.0 81.5 81.5 0.0 0.0 0.0 0.0 400.0 400.0 400.0 0.0 0.0 Sn Mass Flow kg/hr 0.000 170.236 170.236 0.000 0.000 0.000 0.000 226.417 226.417 0.142 0.000 0.000 Sn Distribution1 wt% 0.0% 67.7% 67.7% 0.0% 0.0% 0.0% 0.0% 90.0% 90.0% 0.1% 0.0% 0.0% Water Mass Flow tonne/hr 0.000 1.994 1.994 0.000 0.000 1.994 71.707 0.318 0.318 0.000 0.030 0.000 Total Solution Mass Flow tonne/hr 0.000 2.224 2.224 0.000 0.000 0.000 0.000 0.679 0.679 0.000 0.030 0.000 Total Solution Volume Flow m³/hr 0.000 2.090 2.090 0.000 0.000 0.000 0.000 0.566 0.566 0.000 0.030 0.000 Chemical Mass Flow tonne/hr 0.000 ------Liquid Specific Gravity - 0.000 1.065 1.065 1.000 1.000 1.000 1.000 1.200 1.200 1.200 1.000 1.000 Gas Phase 0 Sn Mass Flow kg/hr ------Sn Distribution1 wt% ------Total Gas Mass Flow tonne/hr - - - 2.352 1.994 ------Overall 0 Total Mass Flow tonne/hr 0.056 2.224 2.224 2.352 1.994 1.994 71.707 0.951 0.679 0.000 0.302 0.272 Total Volumetric Flow m³/hr - 2.090 2.090 ------0.000 - - Solids - Percent wt% - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 40.0% 40.0% 0.0% 90.0% 100.0% Slurry Specific Gravity - - 1.065 1.065 - - - - 0.000 1.200 - - Temperature °C - 72.5 72.5 - 90.0 90.0 30.0 90.0 90.0 90.0 70.0 20.0 General Notes 40 - Gas Quench Scubber Parameters 40 - Solution Purification Parameters 40 - Tin Chloride Crystallizing Parameters 40 - Tin Chloride Final Product

Parameter Solution Precipitate Gas Solution Flow Parameter Precipitate Solution Flow Parameter Units Value Parameter Crystallizer Solids Flow Impurities Recovery Recovery Recovery kg/hr Recovery kg/hr Crystallizer evaporation rate wt% 100.0% Recovery kg/hr ppm Tin 97.0% 0.0% 3.0% 179.196 Tin 5.0% 170.236 Crystallizer operating temperature °C 90.0 Tin 99.9% 170.094 Zinc 97.0% 0.0% 3.0% 1.991 Zinc 1.0% 1.971 Tin chloride heat of crystallization kJ/kg 238.0 Zinc 5.0% 0.099 359.9 Copper 97.0% 0.0% 3.0% 0.194 Copper 1.0% 0.192 Steam heating value kJ/kg 2010.0 Copper 5.0% 0.010 35.0 Lead 97.0% 0.0% 3.0% 0.043 Lead 1.0% 0.043 Cooling water inlet temperature °C 15.0 Lead 5.0% 0.002 7.8 Arsenic 5.0% 95.0% 0.0% 0.256 Arsenic 30.0% 0.179 Cooling water outlet temperature °C 30.0 Arsenic 5.0% 0.009 32.7 Tungsten 0.0% 100.0% 0.0% 0.000 Tungsten 1.0% 0.000 Tin chloride crystal slurry solids content wt% 40.0% Tungsten 5.0% 0.000 0.0 Molybenum 5.0% 92.0% 3.0% 0.000 Molybenum 1.0% 0.000 Dewatered tin chloride moisture content wt% 10.0% Molybenum 5.0% 0.000 0.0 Iron 97.0% 0.0% 3.0% 17.371 Iron 1.0% 17.197 Iron 5.0% 0.860 3139.5 Fluoride 97.0% 0.0% 3.0% 9.143 Fluoride 1.0% 9.051 Fluoride 0.0% 0.000 0.0 Crystallizer evaporator heat load kW 1313.4 Wash water addition to precipitate filtration wt% 10% Tin chloride dryer heat load kW 56.8 Tin Chloride Purity as SnCl2 wt% 99.2% Lime addition rate kg/kg ppt 5.0 Steam heating option steam consumption tonne/hr 0.102 MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 8 of 14 Revision: 00 Plant Area 42 - Bulk Sulfide Concentrate Leaching Circuit Stream Number and Description 42.01 70.01 42.02 42.03 42.04 70.02 42.05 42.06 42.07 42.08 42.35 80.12 42.36 42.37 42.38 70.08 42.39 42.40 42.41 80.12 o BS Conc from ProcessWater Slurry Preheat MS Leach Leach Residue ProcessWater Washed Leach Leach Residue 2 Cl2 Recycle Leach Sol'n to Extr. Raff. Cl2 Gas Make Discharge FeCl3 Sol'n to Extr. Raff. Pressurized O2 Oxyhydrolysis Depressuriz. Vent Gas from HCl to Fe2O3 o o o o Parameter Units Float Circuit Slurry Preheat Discharge Discharge from Thickener to Resid Wash Resid to Tails Filtrate to 2 Cl2 To Leach Purification to 1 Cl2 up to 1 Cl2 From 1 Cl2 MS leach Bleed to OxyH to Oxyhydr. Discharge Discharge Depressuriz. Wash / Filter Solid Phase Indium Concentration wt% 0.49% - 0.49% 0.02% 0.02% - 0.02% 0.02% 0.02% 0.02% 0.00% - 0.00% 0.02% 0.00% - 0.00% 0.00% - - Indium Mass Flow tonne/hr 0.005375 - 0.005 1.07E-04 1.05E-04 - 1.03E-04 2.11E-06 2.11E-06 2.15E-06 1.94E-10 - 1.94E-10 2.11E-06 2.06E-11 - 2.06E-11 2.06E-11 - - Zinc Concentration wt% 50.00% - 50.00% 2.27% 2.27% - 2.27% 2.27% 2.27% 2.27% 0.03% - 0.03% 2.25% 0.03% - 0.00% 0.00% - - Zinc Mass Flow tonne/hr 0.549 - 0.549 1.10E-02 1.08E-02 - 1.05E-02 2.15E-04 2.15E-04 2.20E-04 1.99E-08 - 1.99E-08 2.15E-04 2.11E-09 - 2.11E-09 2.11E-09 - - Iron Concentration wt% 4.71% - 4.71% 3.71% 3.71% - 3.71% 3.71% 3.71% 3.71% 10.15% - 10.15% 3.75% 10.15% - 69.94% 69.94% - - Iron Mass Flow tonne/hr 0.052 - 0.052 1.80E-02 1.76E-02 - 1.73E-02 3.52E-04 3.52E-04 3.59E-04 6.06E-06 - 6.06E-06 3.58E-04 6.43E-07 - 0.101 0.101 - - Total Solids Mass Flow tonne/hr 1.098 - 1.098 0.484 0.475 - 0.465 0.009 0.009 0.010 5.97E-05 - 5.97E-05 0.010 6.33E-06 - 0.145 0.145 - - Solids Specific Gravity - 4.000 - 4.000 2.600 2.600 - 2.600 2.600 2.600 2.600 8.241 - 8.241 2.635 8.241 - 6.114 6.114 - - Aqueous Phase Indium Concentration g/L - - 0.130 0.587 0.587 - 0.000 0.328 0.328 0.587 0.011 - 0.011 0.026 0.011 - 0.012 0.014 0.000 - Indium Mass Flow tonne/hr - - 5.04E-05 5.566E-03 1.50E-04 - 0.000 1.50E-04 1.50E-04 5.42E-03 9.79E-05 - 9.79E-05 2.48E-04 1.04E-05 - 1.04E-05 1.04E-05 0.000 - Zinc Concentration g/L - - 1.658 59.500 59.500 - 0.000 33.273 33.273 59.500 1.163 - 1.083 2.613 1.163 - 1.220 1.402 0.000 - Zinc Mass Flow tonne/hr - - 6.45E-04 0.564 0.015 - 0.000 0.015 0.015 0.549 0.010 - 0.010 0.025 1.05E-03 - 1.05E-03 1.05E-03 0.000 - Iron(III) Concentration g/L - - 24.910 - - - 0.000 - - - 0.068 - 102.371 97.522 0.068 - 0.000 0.000 0.000 - Iron(III) Mass Flow tonne/hr - - 0.010 - - - 0.000 - - - 5.80E-04 - 0.938 0.938 6.15E-05 - 0.00E+00 0.00E+00 0.000 - Iron(II) Concentration g/L - - - 108.800 108.800 - 0.000 60.841 60.841 108.800 112.127 - 2.088 4.881 112.127 - 0.000 0.000 0.000 - Iron(II) Mass Flow tonne/hr - - - 1.031 0.028 - 0.000 0.028 0.028 1.003 0.957 - 0.019 0.047 0.101 - 0.00E+00 0.00E+00 0.000 - Total Aqueous Mass Flow tonne/hr 0.000 0.318 0.389 9.477 0.256 0.211 0.009 0.457 0.457 9.221 8.035 - 8.630 9.087 0.852 - 0.812 0.750 0.062 6.40E-04 Total Aqueous Volume Flow m³/hr 0.000 0.318 0.389 9.477 0.256 0.211 0.009 0.457 0.457 9.221 8.531 - 9.162 9.618 0.904 - 0.862 0.750 0.062 5.42E-04 Aqueous Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.942 - 0.942 0.945 0.942 - 0.942 1.000 1.000 1.180 Organic Phase Indium Concentration g/L ------Indium Mass Flow tonne/hr ------Zinc Concentration g/L ------Zinc Mass Flow tonne/hr ------Iron Concentration g/L ------Iron Mass Flow tonne/hr ------Extractant Mass Flow tonne/hr ------Diluent Mass Flow tonne/hr ------Total Organic Mass Flow tonne/hr ------Total Organic Volume Flow tonne/hr ------Organic Specific Gravity ------Overall Total Mass Flow tonne/hr 1.098 0.318 1.487 9.961 0.730 0.211 0.475 0.467 0.467 9.231 8.035 0.044 8.630 9.097 0.852 0.016 0.957 0.895 0.062 6.40E-04 Total Volumetric Flow m³/hr 0.275 0.318 0.664 9.663 0.438 0.211 0.188 0.461 0.461 9.225 8.531 - 9.162 9.622 0.904 - 0.886 0.774 0.062 5.42E-04 Solids - Percent wt% 100.0% 0.0% 73.8% 4.9% 65.0% 0.0% 98.0% 2.0% 2.0% 0.1% 0.0% - 0.0% 0.1% 0.0% - 15.2% 16.2% 0.0% 0.0% Slurry Specific Gravity - 4.000 1.000 2.241 1.031 1.667 1.000 2.519 1.013 1.013 1.001 0.942 - 0.942 0.945 0.942 - 1.080 1.157 1.000 1.180 Temperature °C 20.0 20.0 40.0 100.0 80.0 20.0 20.0 20.0 20.0 80.0 20.0 - 20.0 40.0 20.0 - 140.0 100.0 100.0 20.0 General Notes 42 - Bulk Sulfide Concentrate Grade Basis 42 - Bulk Sulfide Concentrate Metal Extraction Rates 42 - Bulk Sulfide Concentrate Leaching Circuit Parameters 42 - Bulk Sulfide Concentrate Leach Heat Load Calculations 1) It is assumed that oxide minerals and gangue material does not dissolve during Bulk Sulfide Concentrate Composition Units Value Leach Circuit Metal Extraction Units Value Parameter Units Value Parameter Units Value ferric chloride leach. Tin (contained in Cassiterite) wt% 0.25% Tin (contained in Cassiterite) wt% 0.00% Stoichiometric ferric ion requirement t Fe3+/hr 1.0414 Preheat slurry average specific heat capacity kJ/kgoC 1.49 2) Saturated steam @ 150 psig is used Tin (contained in Stannite) wt% 0.57% Tin (contained in Stannite) wt% 90.00% Target iron concentration in leach g Fe3+/L 100.00 Slurry preheat heat loss (% sensible heat) % 15.00% to supply all heat load requirements. Indium (contained in InS) wt% 0.49% Indium (contained in InS) wt% 98.00% Ferric chloride stoichiometric excess - 0.91 Slurry preheat heat load kW 14.11 Zinc (contained in Sphalerite) wt% 50.00% Zinc (contained in Sphalerite) wt% 98.00% Total ferric chloride requirement t Fe3+/hr 0.9477 Slurry preheat steam consumption tonne/hr 0.03

Copper (contained in Chalcopyrite) wt% 0.35% Copper (contained in Chalcopyrite) wt% 97.00% Chlorine gas requirement t Cl2/hr 0.0443 o Lead (contained in Galena) wt% 1.09% Lead (contained in Galena) wt% 99.00% Excess ferrous chloride to blowdown t FeCl2/hr 0.2125 FeCl3 sol'n average heat capacity kJ/kg C 4.18

Arsenic (contained in Arsenopyrite) wt% 0.91% Arsenic (contained in Arsenopyrite) wt% 25.00% FeCl3 sol'n preheat heat loss (% sensible heat) % 15.00%

Tungsten (contained in Wolframite) wt% 0.09% Tungsten (contained in Wolframite) wt% 0.00% Leach thickener U/F percent solids wt% 65.00% FeCl3 sol'n preheat heat load kW 242.94

Molybdenum (contained in Molybdenite) wt% 0.00% Molybdenum (contained in Molybdenite) wt% 0.00% Leach thickener solids recovery wt% 98.00% FeCl3 sol'n preheat steam consumption tonne/hr 0.44 Bismuth (contained in Bismuthinite) wt% 0.67% Bismuth (contained in Bismuthinite) wt% 54.00% Iron (contained in Pyrite) wt% 3.72% Iron (contained in Pyrite) wt% 70.00% Leach residue filter cake solids start of wash wt% 90.00% Leach slurry average heat capacity kJ/kgoC 4.00 Gange Materials wt% 15.00% Gangue Materials wt% 0.00% Leach residue cake wash vol. displacement factor 4.00 Leach reactor heat loss (% sensible heat) % 15.00% Leach residue filter cake final dryness wt% 98.00% Leach reactor heat load kW 764.16 Bulk Sulfide Concentrate Solids Specific Grav. - 4.00 Leach Residue Solids Specific Gravity - 2.60 Leach residue filter solids capture wt% 98.00% Leach reactor steam consumption tonne/hr 1.37 Bulk Sulfide Concentrate Percent Solids wt% 100.00% Bulk Sulfide Concentrate Solids Heat Capacity kJ/kgoC 0.53 Percentage total tin in conc. as cassiterite wt% 30.00% MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 9 of 14 Revision: 00 Plant Area 42 - Bulk Sulfide Concentrate Leaching Circuit Stream Number and Description 70.09 42.42 (deleted) 42.43 (deleted) 42.44 42.45 42.64 42.65 42.66 80.18 42.67 42.68 o o Process Water Vent Gas from Liquid from Fe2O3 Wash Fe2O3 Solids 1 Cl2 Offgas Misc. Vent Gas 2 Cl2 Off-gas NaOH Sol'n Treated Vent Cl2 Scrubber o Parameter Units to Fe2O3 Wash Knock-out Knock-out Filtrate to WW to Tails to 2 Cl2 to Cl2 Scrubber to Cl2 Scrubber to Cl2 Scrubber to Atmosphere Bleed to WWT Solid Phase Indium Concentration wt% - 0.00% 0.00% - - Indium Mass Flow tonne/hr - 4.12E-13 2.02E-11 - - Zinc Concentration wt% - 0.00% 0.00% - - Zinc Mass Flow tonne/hr - 4.21E-11 2.06E-09 - - Iron Concentration wt% - 69.94% 69.94% - - Iron Mass Flow tonne/hr - 2.03E-03 0.099 - - Total Solids Mass Flow tonne/hr - 2.90E-03 0.142 - - Solids Specific Gravity - - 6.114 6.114 - - Aqueous Phase Indium Concentration g/L - 0.013 0.000 - - Indium Mass Flow tonne/hr - 1.04E-05 0.00E+00 - - Zinc Concentration g/L - 1.318 0.000 - - Zinc Mass Flow tonne/hr - 1.05E-03 0.00E+00 - - Iron(III) Concentration g/L - 0.000 0.000 - - Iron(III) Mass Flow tonne/hr - 0.00E+00 0.00E+00 - - Iron(II) Concentration g/L - 0.000 0.000 - - Iron(II) Mass Flow tonne/hr - 0.00E+00 0.00E+00 - - Total Aqueous Mass Flow tonne/hr 0.063 0.798 0.016 - - Total Aqueous Volume Flow m³/hr 0.063 0.798 0.016 - - Aqueous Specific Gravity - 1.000 1.000 1.000 - - Organic Phase Indium Concentration g/L ------Indium Mass Flow tonne/hr ------Zinc Concentration g/L ------Zinc Mass Flow tonne/hr ------Iron Concentration g/L ------Iron Mass Flow tonne/hr ------Extractant Mass Flow tonne/hr ------Diluent Mass Flow tonne/hr ------Total Organic Mass Flow tonne/hr ------Total Organic Volume Flow tonne/hr ------Organic Specific Gravity ------Overall Total Mass Flow tonne/hr 0.063 0.801 0.158 0.012 -0.005 Total Volumetric Flow m³/hr 0.063 0.798 0.039 - - Solids - Percent wt% 0.0% 0.4% 90.0% - - Slurry Specific Gravity - 1.000 1.003 4.045 - - Temperature °C 20.0 20.0 20.0 - - General Notes 42 - Chlorination & Oxyhydrolysis Reaction Parameters 42 - Chlorination & Oxyhydrolysis Reaction Parameters 42 - Leach Residue Wash Sol'n Preheat Parameters 40 - Tungsten Leaching Parameters 1) It is assumed that oxide minerals and gangue material does not dissolve during Parameter Units Value Parameter Units Value Parameter Units Value ferric chloride leach. Oxyhydrolysis reaction percent completion % 100.00% Oxyhydrolysis pressure let-down drum temp. oC 100.00 Wash sol'n average heat capacity kJ/kgoC 4.18 o O2 stoiciometric excessfor oxyhydrolysis factor 1.10 1 stage chlorinator reaction efficiency % 98.00% Heat loss (% sensible heat) % 15.00% Oxyhydrolysis reaction temperature oC 140.00 2o stage chlorinator reaction efficiency % 98.00% Leach residue wash sol'n preheat temp. oC 80.00 Oxyhydrolysis reaction pressure kPa 500.00 Leach residue wash sol'n preheat heat load kW 16.91 Iron oxide filter cake dryness at start of wash wt% 90.00% Leach residue preheatsteam consumption tonne/hr 0.03 Oxyhydrolysis feed stream average heat cap. kJ/kgoC 4.18 Iron oxide cake wash displacement volumes factor 4.00 Oxyhydrolysis feed preheat heat loss % 15.00% Iron oxide cake wash water acidity M 0.10 Oxyhydrolysis feed preheat discharge temp. oC 55.51 Iron oxide filter cake final dryness wt% 90.00% Iron oxide filter solids capture wt% 98.00% Oxyhydrolysis feed heater heat load kW 108.00 Oxyhydrolysis feed heater steam consumption tonne/hr 0.193 Knock-out drum operating temperature oC Knock-out drum cooling loss (% sensible heat) % 10.00% Oxyhydr. reactor heat loss (% sensible heat) % 10.00% Knock-out drum cooling load kW Oxyhydr. heat of reaction (approx. at STP) kJ/kg Fe2+ 586.23 Knock-out drum cooling water consumption tonne/hr Oxyhydrolysis reactor heat load kW 32.07 Oxyhydrolysis reactor steam consumption tonne/hr 0.06 MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 10 of 14 Revision: 00 Plant Area 42 - Leach Solution Purification Stream Number and Description 42.08 (copy) 80.01 42.09 70.03 80.02 42.10 42.11 80.03 80.04 42.12 70.04 80.05 42.13 (deleted) 42.14 80.06 42.15 42.16

Leach Sol'n to Na2CO3 to Cooled ProcessWater 36wt% HCl PbCO3 Leach Sol'n to Na2S to Fe Powder to Cu/As Cement ProcessWater 36wt% HCl Cu/As Residue Cu/As Cement Dia. Earth to Leach Sol'n Leach Sol'n

Parameter Units Purification Sol'n Cooling Leach Sol'n PbCO3 Wash PbCO3 Wash to Tails Cu/As Cement Cu/As Cement Cu/As Cement Discharge Residue Wash Residue Wash to Tails Sol'n to Filtrat. Sol'n Filtration Res. to Tails Filtrate to SX Solid Phase Indium Concentration wt% 0.022% - 0.009% - - 0.01% 0.01% - - 0.00% - - 0.00% - 0.00% 0.00% Indium Mass Flow tonne/hr 2.15E-06 - 2.15E-06 - - 2.11E-06 4.30E-08 - - 4.30E-08 - - 4.30E-08 - 4.28E-08 2.15E-10 Zinc Concentration wt% 2.27% - 0.89% - - 0.89% 0.89% - - 0.03% - - 0.03% - 0.03% 0.03% Zinc Mass Flow tonne/hr 2.20E-04 - 2.20E-04 - - 2.15E-04 4.39E-06 - - 4.39E-06 - - 4.39E-06 - 4.37E-06 2.20E-08 Iron Concentration wt% 3.71% - 1.46% - - 1.46% 1.46% - - 10.66% - - 10.66% - 10.15% 10.15% Iron Mass Flow tonne/hr 3.59E-04 - 3.59E-04 - - 3.52E-04 7.19E-06 - 0.067 1.34E-03 - - 1.34E-03 - 1.33E-03 6.71E-06 Total Solids Mass Flow tonne/hr 0.010 0.006 0.025 - - 0.024 4.92E-04 0.009 0.067 0.013 - - 1.26E-02 6.29E-04 1.31E-02 6.61E-05 Solids Specific Gravity - 2.600 2.530 5.025 - - 5.025 5.025 1.856 7.850 8.500 - - 8.500 2.200 8.241 8.241 Aqueous Phase Indium Concentration g/L 0.587 - 0.581 - - 0.000 0.580 - - 0.576 - - 0.576 - 0.000 0.576 Indium Mass Flow tonne/hr 0.005 - 0.005 - - 0.000 0.005 - - 0.005 - - 0.005 - 0.000 0.005 Zinc Concentration g/L 59.500 - 58.840 - - 0.000 58.788 - - 58.388 - - 58.388 - 0.000 58.325 Zinc Mass Flow tonne/hr 0.549 - 0.549 - - 0.000 0.549 - - 0.549 - - 0.549 - 0.000 0.549 Iron(III) Concentration g/L -----0.000 10.750 ------0.000 - Iron(III) Mass Flow tonne/hr -----0.000 0.100 ------0.000 - Iron(II) Concentration g/L 108.800 - 107.593 - - 0.000 96.747 - - 113.722 - - 113.722 - 0.000 113.599 Iron(II) Mass Flow tonne/hr 1.003 - 1.003 - - 0.000 0.903 - - 1.069 - - 1.069 - 0.000 1.069 Total Aqueous Mass Flow tonne/hr 9.221 0.112 9.324 0.011 1.11E-04 2.68E-03 9.333 0.000 - 9.397 0.006 5.92E-05 9.397 0.006 1.46E-03 9.407 Total Aqueous Volume Flow m³/hr 9.221 0.112 9.324 0.011 9.39E-05 2.68E-03 9.333 0.000 - 9.397 0.006 5.01E-05 9.397 0.006 1.46E-03 9.407 Aqueous Specific Gravity - 1.000 1.000 1.000 1.000 1.180 1.000 1.000 1.000 - 1.000 1.000 1.180 1.000 1.000 1.000 1.000 Organic Phase Indium Concentration g/L ------Indium Mass Flow tonne/hr ------Zinc Concentration g/L ------Zinc Mass Flow tonne/hr ------Iron Concentration g/L ------Iron Mass Flow tonne/hr ------Extractant Mass Flow tonne/hr ------Diluent Mass Flow tonne/hr ------Total Organic Mass Flow tonne/hr ------Total Organic Volume Flow tonne/hr ------Organic Specific Gravity ------Overall Total Mass Flow tonne/hr 9.231 0.118 9.349 0.011 1.11E-04 0.027 9.333 0.009 0.067 9.409 0.006 5.92E-05 9.409 0.006 1.46E-02 9.407 Total Volumetric Flow m³/hr 9.225 0.115 9.329 0.011 9.39E-05 0.007 9.333 0.005 0.008 9.398 0.006 5.01E-05 9.398 0.006 3.06E-03 9.407 Solids - Percent wt% 0.10% 5.00% 0.26% 0.00% 0.00% 90.00% 0.01% 100.00% 100.00% 0.13% 0.00% 0.00% 0.13% 10.00% 90.00% 0.00% Slurry Specific Gravity - 1.001 1.031 1.002 1.000 1.180 3.583 1.000 1.856 7.850 1.001 1.000 1.180 1.001 1.058 4.780 1.000 Temperature °C 80.00 20.00 20.00 20.00 20.00 20.00 50.00 20.00 20.00 50.00 20.00 20.00 20.00 20.00 20.00 20.00 General Notes 42 - Leach Solution Purification Circuit Parameters 42 - Cu/As Cementation Circuit Parameters 42 - Leach Solution Precoat Filter Parameters 40 - Tungsten Leaching Parameters

Parameter Units Value Parameter Units Value Parameter Units Value o 2+ Theor. solubilityof PbCO3 in water @ 20 C g/L 0.0011 Mass flow Cu in stream 42.11 tonne/hr 0.0098 Diatomaceous earth consumption basis t/t solids 0.05 5+ Mass flow PbCl2 in stream 42.08 tonne/hr 1.55E-02 Mass flow As in stream 42.11 tonne/hr 0.0025 Leach solution precoat filter solids capture wt% 99.50% Cooling losses (% sensible heat) % 5.00% Percent aq. Fe present as Fe3+ stream 42.11 % 10.00% Leach sol'n residue cake solids start of wash wt% 90.00% Lead crystallization cooling load kW 675.22 Sodium sulfide dosage g/L 1.00 Leach sol'n residue wash water acidity M 0.10 Lead crystallization cooling water demand tonne/hr 38.77 Percent conversion of Cu2+ to copper metal % 99.00% Leach sol'n residue wash vol. displacement factor 4.00 Percent conversion of As5+ to arsenic metal % 40.00% Leach solution residue filter cake final dryness wt% 90.00% Lead carbonate filter cake solid start of wash wt% 90.00% Iron powder stoichiometric excess factor 1.10 Filter cake wash water acidity M 0.10 Percent unreacted iron powder stream 42.12 % 2.00% Lead carbonate cake wash vol. displacement factor 4.00 Lead carbonate filter cake final dryness wt% 90.00% Precoat filter feed cooling loss (% sens. heat) % 5.00% Lead carbonate filter solids capture wt% 98.00% Precoat filter feed cooling load kW 344.14 Precoat filter feed cooling water demand tonne/hr 19.76 Cementation feed preheat loss (% sens. heat) % 15.00% Heat load preheat Cu/As cementation feed kW 373.87 Cementation feed preheat steam consumption tonne/hr 0.67 MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 11 of 14 Revision: 00 Plant Area 42 - Solvent Extraction Circuit Circuit Stream Number and Description 42.16 (copy) 80.07 42.17 42.18 42.19 80.08 70.05 42.20 42.21 80.09 80.10 70.06 42.22 42.23 80.11 70.07 42.24 42.25 42.26 42.27 Leach Sol'n 36wt% HCl Organic to SX Extraction Loaded Org. 36wt% HCl ProcessWater Loaded Scrub Scrub. Organic NaCl Sol'n 36wt% HCl ProcessWater Loaded Strip Stripped Org. 36wt% HCl ProcessWater Loaded Acid AcidWash Sol AcidWash Sol Washed Org. Parameter Units Filtrate to SX to Aq.SX Feed Extr. Stage Raffinate to Scrub Stage Scrub Stage to Scrub Stage Aqueous Sol'n to Strip Stage to Strip Stage to Strip Stage to Strip Stage Aqueous Sol'n to Acid Wash to Acid Wash to Acid Wash Wash Sol'n to Lea Preheat Recycle Rec. to Extr. Solid Phase Indium Concentration wt% 0.00% - - 0.00% - - - 89.25% ----0.00% - - - 0.00% 0.000% 0.000% - Indium Mass Flow tonne/hr 2.15E-10 - - 2.15E-10 - - - 5.42E-06 ----0.000 - - - 0.000 0.000 0.000 - Zinc Concentration wt% 0.03% - - 0.033% - - - 0.000% ----0.000% - - - 0.000% 0.000% 0.000% - Zinc Mass Flow tonne/hr 2.20E-08 - - 2.20E-08 - - - 0.00E+00 ----0.000 - - - 0.000 0.000 0.000 - Iron Concentration wt% 10.15% - - 10.153% - - - 0.000% ----0.000% - - - 0.000% 0.000% 0.000% - Iron Mass Flow tonne/hr 6.71E-06 - - 6.71E-06 - - - 0.00E+00 ----0.000 - - - 0.000 0.000 0.000 - Total Solids Mass Flow tonne/hr 6.61E-05 - - 6.61E-05 - - - 6.07E-06 ----0.00E+00 - - - 0.00E+00 0.00E+00 0.00E+00 - Solids Specific Gravity - 8.241 - - 8.241 - - - 7.283 ----8.241 - - - 8.241 8.241 8.241 - Aqueous Phase Indium Concentration g/L 0.576 - - 1.15E-02 - - - 1.13E-01 ----2.116 - - - 0.780 0.780 0.780 - Indium Mass Flow tonne/hr 0.00542 - - 1.08E-04 - - - 2.66E-04 ----4.99E-03 - - - 7.36E-03 5.04E-05 7.31E-03 - Zinc Concentration g/L 58.325 - - 1.163 - - - 273.567 ----8.844 - - - 9.984 9.984 9.984 - Zinc Mass Flow tonne/hr 0.549 - - 0.011 - - - 0.645 ----0.021 - - - 9.42E-02 6.45E-04 0.094 - Iron(III) Concentration g/L 1.136 - - 0.068 - - - 1.712 ----0.084 - - - 150.000 150.000 150.000 - Iron(III) Mass Flow tonne/hr 1.07E-02 - - 6.41E-04 - - - 4.04E-03 ----1.98E-04 - - - 1.415 0.010 1.406 - Iron(II) Concentration g/L 113.599 - - 112.127 - - - 0.00E+00 ----0.00E+00 - - - 0.000 0.000 0.000 - Iron(II) Mass Flow tonne/hr 1.058 - - 1.058 - - - 0.00E+00 ----0.00E+00 - - - 0.000 0.000 0.000 - Total Aqueous Mass Flow tonne/hr 9.407 0.033 - 8.887 - 0.0024 1.080 2.359 - 0.000 0.000 2.359 2.385 - 0.039 0.031 10.380 0.071 10.308 - Total Aqueous Volume Flow m³/hr 9.407 0.028 - 9.435 - 0.0020 1.080 2.359 - 0.000 0.000 2.359 2.359 - 0.033 0.031 9.435 0.065 9.370 - Aqueous Specific Gravity - 1.000 1.180 - 0.942 - 1.180 1.000 1.000 - 1.189 1.180 1.000 1.011 - 1.180 1.000 1.100 1.100 1.100 - Organic Phase Indium Concentration g/L - - 2.67E-05 - 0.563 - - - 0.534 ----5.34E-03 - - - - - 2.67E-05 Indium Mass Flow tonne/hr - - 2.52E-07 - 5.31E-03 - - - 5.04E-03 ----5.04E-05 - - - - - 2.52E-07 Zinc Concentration g/L - - 3.42E-04 - 56.988 - - - 2.280 ----0.068 - - - - - 3.42E-04 Zinc Mass Flow tonne/hr - - 3.23E-06 - 0.538 - - - 0.022 ----6.45E-04 - - - - - 3.23E-06 Iron(III) Concentration g/L - - 5.14E-03 - 1.070 - - - 1.048 ----1.027 - - - - - 5.14E-03 Iron(III) Mass Flow tonne/hr - - 4.85E-05 - 1.01E-02 - - - 9.89E-03 ----9.69E-03 - - - - - 4.85E-05 Iron(II) Concentration g/L - - 0.00E+00 - 0.00E+00 - - - 0.00E+00 ----0.00E+00 - - - - - 0.00E+00 Iron(II) Mass Flow tonne/hr - - 0.00E+00 - 0.00E+00 - - - 0.00E+00 ----0.00E+00 - - - - - 0.00E+00 Extractant Mass Flow tonne/hr - - 1.899 - 1.899 - - - 1.899 ----1.899 - - - - - 1.899 Diluent Mass Flow tonne/hr - - 5.696 - 5.696 - - - 5.696 ----5.696 - - - - - 5.696 Total Organic Mass Flow tonne/hr - - 7.595 - 8.148 - - - 7.632 ----7.606 - - - - - 7.595 Total Organic Volume Flow m³/hr - - 9.435 - 9.435 - - - 9.435 ----9.435 - - - - - 9.434 Organic Specific Gravity - - - 0.805 - 0.864 - - - 0.809 ----0.806 - - - - - 0.805 Overall Total Mass Flow tonne/hr 9.407 0.033 7.595 8.887 8.148 0.0024 1.080 2.359 7.632 0.000 0.000 2.359 2.385 7.606 0.039 0.031 10.380 0.071 10.308 7.595 Total Volumetric Flow m³/hr 9.407 0.028 9.435 9.435 9.435 0.0020 1.080 2.359 9.435 0.000 0.000 2.359 2.359 9.435 0.033 0.031 9.435 0.065 9.370 9.434 Solids - Percent wt% 0.00% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Slurry Specific Gravity - 1.000 1.180 0.805 0.942 0.864 1.180 1.000 1.000 0.809 #DIV/0! #DIV/0! 1.000 1.011 0.806 1.180 1.000 1.100 1.100 1.100 0.805 Temperature °C 20.00 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 General Notes 42 - SX Extraction Stage Parameters 42 - SX Scrub Stage & Indium Strip Stage Parameters 42 - SX Organic Acid Wash Stage Parameters 1) It is assumed that oxide minerals and gangue material does not dissolve during Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value ferric chloride leach. Target aqueous HCl concentration in extr. M 3.50 Target aqueous HCl concentration in scrub M 0.01 Target aqueous NaCl concentration in strip M 0.00 Target aqueous HCl conc. in acid wash M 6.00 Theoretical 36wt% HCl demand tonne/hr 3.33 Scrub stage organic/aqueous ratio (external) factor 4.00 Target aqueous HCl concentration in strip M 0.00 Acid wash stage organic/aqueous ratio factor 1.00 Actual 36wt% HCl makeup required % of theo. 1.00% Indium (III) extraction to aqueous scrub sol'n wt% 5.00% Strip stage organic/aqueous ratio (external) factor 4.00 Percent aq. Fe as Fe3+ in stream 42.16 wt% 1.00% Extraction organic/aqueous ratio (external) factor 1.00 Zinc (II) extraction to aqueous scrub sol'n wt% 96.00% Indium (III) extraction to aqueous strip sol'n wt% 99.00% Indium (III) extraction to acid wash sol'n wt% 99.50% Stoichiometric CYANEX 923 required tonne/hr 5.87 Iron (II) extraction to aqueous scrub sol'n wt% 100.00% Zinc (II) extraction to aqueous strip sol'n wt% 97.00% Zinc (II) extraction to acid wash sol'n wt% 99.50% Stoichiometric CYANEX 923 conc. in solvent wt% 77.33% Iron (III) extraction to aqueous scrub sol'n wt% 2.00% Iron (II) extraction to aqueous strip sol'n wt% 100.00% Iron (II) extraction to acid wash sol'n wt% 99.50% Actual CYANEX 923 concentration in solvent wt% 25.00% Lead(II) extraction to aqueous scrub solution wt% 96.00% Iron (III) extraction to aqueous strip sol'n wt% 2.00% Iron (III) extraction to acid wash sol'n wt% 99.50% Solubility of organic in aqueous phase mg/L 5.00 Copper(II) extraction to aqueous scrub sol'n wt% 98.00% Lead(II) extraction to aqueous strip solution wt% 96.00% Max. tolerable [Fe3+] streams 42.24, 25 & 26 g Fe3+/L 150.00 Indium (III) extraction to organic phase wt% 98.00% Copper(II) extraction to aqueous strip solution wt% 98.00% Overall solvent loss complete SX circuit vol% 0.01% Zinc (II) extraction to organic phase wt% 98.00% Iron (II) extraction to organic phase wt% 0.00% Iron (III) extraction to organic phase wt% 94.00% Lead(II) extraction to organic phase wt% 15.00% Copper(II) extraction to organic phase wt% 60.00% MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 12 of 14 Revision: 00 Plant Area 42 - Solvent Extraction Circuit Circuit Stream Number and Description 42.28 42.29 42.30 42.31 42.32 42.33 42.34

Rec. Organic Rec. Organic Rec. Organic Fresh Organic Extr. Raff. ZnCl2 Sol'n to InCl3 Sol'n to Parameter Units from Extr. from Scrub from Strip Makeup Rec. to Leach Electrowinning Cementation Solid Phase Indium Concentration wt% - 0.00% 89.25% 0.00% Indium Mass Flow tonne/hr - 2.15E-10 0.000 0.000 Zinc Concentration wt% - 0.033% 0.000% 0.000% Zinc Mass Flow tonne/hr - 2.20E-08 0.000 0.000 Iron Concentration wt% - 10.153% 0.000% 0.000% Iron Mass Flow tonne/hr - 6.71E-06 0.000 0.000 Total Solids Mass Flow tonne/hr - 6.61E-05 0.000 0.000 Solids Specific Gravity - - 8.241 7.283 8.241 Aqueous Phase Indium Concentration g/L - 1.15E-02 1.13E-01 2.1 Indium Mass Flow tonne/hr - 1.08E-04 2.66E-04 0.005 Zinc Concentration g/L - 1.163 273.567 8.844 Zinc Mass Flow tonne/hr - 0.011 0.645 0.021 Iron(III) Concentration g/L - 0.068 1.712 0.084 Iron(III) Mass Flow tonne/hr - 6.41E-04 4.04E-03 1.98E-04 Iron(II) Concentration g/L - 112.127 0.000 0.000 Iron(II) Mass Flow tonne/hr - 1.058 0.000 0.000 Total Aqueous Mass Flow tonne/hr - 8.887 2.359 2.385 Total Aqueous Volume Flow m³/hr - 9.435 2.359 2.359 Aqueous Specific Gravity - - 0.942 1.000 1.011 Organic Phase Indium Concentration g/L 0.000 - - - Indium Mass Flow tonne/hr 0.000 - - - Zinc Concentration g/L 0.000 - - - Zinc Mass Flow tonne/hr 0.000 - - - Iron(III) Concentration g/L 0.000 - - - Iron(III) Mass Flow tonne/hr 0.000 - - - Iron(II) Concentration g/L 0.000 - - - Iron(II) Mass Flow tonne/hr 0.000 - - - Extractant Mass Flow tonne/hr 0.000 - - - Diluent Mass Flow tonne/hr 0.001 - - - Total Organic Mass Flow tonne/hr 0.001 - - - Total Organic Volume Flow m³/hr 0.001 - - - Organic Specific Gravity - 0.805 - - - Overall Total Mass Flow tonne/hr 0.001 8.887 2.359 2.385 Total Volumetric Flow m³/hr 0.001 9.435 2.359 2.359 Solids - Percent wt% 0.0% 0.0% 0.0% 0.0% Slurry Specific Gravity - 0.805 0.942 1.000 1.011 Temperature °C 20.0 20.0 20.0 20.0 General Notes 1) It is assumed that oxide minerals and gangue material does not dissolve during ferric chloride leach. MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 13 of 14 Revision: 00 Plant Area 40 - Zinc Electrowinning Circuit Stream Number and Description 42.33 (copy) 80.13 42.46 80.14 70.10 42.47 42.48 42.49 42.50A 42.50B 70.11 42.51 42.52 42.53 42.54

ZnCl2 Sol'n to Zn Metal to Electrolyte Pur. 36wt% HCl ProcessWater Zn Electrolyte Zn Elect.Res. Electrowinning Spent Electro. Zinc Metal Fr. ProcessWater Zn Metal Zn Metal Zn Metal Zn Metal o Parameter Units Electrowinning Electrolyte Pur. Discharge Impurity Wash Impurity Wash Solid Impurities Wash / Filtrate Gas to 1 Cl2 to SX Scrub Electrowinning Zn Metal Wash Wash Effluent Total Product Final Product In Cementation Solid Phase Indium Concentration wt% 89.25% 0.00% 89.25% - - 89.25% 89.25% - 89.25% 0.00% - - 0.00% 0.00% 0.00% Indium Mass Flow tonne/hr 5.42E-06 0.00E+00 2.71E-04 - - 2.65E-04 5.42E-06 - 5.42E-06 0.00E+00 - - 0.00E+00 0.00E+00 0.00E+00 Zinc Concentration wt% 0.000% 99.500% 0.000% - - 0.000% 0.000% - 0.000% 99.500% - - 99.500% 99.500% 99.500% Zinc Mass Flow tonne/hr 0.00E+00 2.59E-04 0.00E+00 - - 0.00E+00 0.00E+00 - 0.00E+00 0.516 - - 0.516 0.512 4.25E-03 Iron Concentration wt% 0.000% 0.000% 0.000% - - 0.000% 0.000% - 0.000% 0.000% - - 0.000% 0.000% 0.000% Iron Mass Flow tonne/hr 0.00E+00 0.00E+00 0.00E+00 - - 0.00E+00 0.00E+00 - 0.00E+00 0.00E+00 - - 0.00E+00 0.00E+00 0.00E+00 Total Solids Mass Flow tonne/hr 6.07E-06 2.60E-04 3.03E-04 - - 2.97E-04 6.07E-06 - 6.07E-06 0.519 - - 0.519 0.514 4.27E-03 Solids Specific Gravity - 7.283 7.100 7.283 - - 7.283 7.283 - 7.283 7.100 - - 7.100 7.100 7.100 Aqueous Phase Indium Concentration g/L 1.13E-01 - 2.82E-04 - - 0.000 2.82E-04 - 5.21E-04 ------Indium Mass Flow tonne/hr 2.66E-04 - 6.65E-07 - - 0.00E+00 6.65E-07 - 6.65E-07 ------Zinc Concentration g/L 273.567 - 273.682 - - 0.000 273.683 - 101.119 ------Zinc Mass Flow tonne/hr 0.645 - 0.646 - - 0.00E+00 0.646 - 0.129 ------Iron(III) Concentration g/L 1.712 - 1.626 - - 0.000 1.626 - 3.004 ------Iron(III) Mass Flow tonne/hr 4.04E-03 - 3.84E-03 - - 0.00E+00 3.84E-03 - 3.84E-03 ------Iron(II) Concentration g/L 0.00E+00 - 0.00E+00 - - 0.000 0.00E+00 - 0.00E+00 ------Iron(II) Mass Flow tonne/hr 0.00E+00 - 0.00E+00 - - 0.00E+00 0.00E+00 - 0.00E+00 ------Total Aqueous Mass Flow tonne/hr 2.359 - 2.359 0.00E+00 0.00E+00 6.07E-06 2.359 - 1.277 - 0.519 0.519 - - - Total Aqueous Volume Flow m³/hr 2.359 - 2.359 0.00E+00 0.00E+00 6.07E-06 2.359 - 1.277 - 0.519 0.519 - - - Aqueous Specific Gravity - 1.000 - 1.000 1.180 1.000 1.000 1.000 - 1.000 - 1.000 1.000 - - - Organic Phase Indium Concentration g/L ------Indium Mass Flow tonne/hr ------Zinc Concentration g/L ------Zinc Mass Flow tonne/hr ------Iron(III) Concentration g/L ------Iron(III) Mass Flow tonne/hr ------Iron(II) Concentration g/L ------Iron(II) Mass Flow tonne/hr ------Extractant Mass Flow tonne/hr ------Diluent Mass Flow tonne/hr ------Total Organic Mass Flow tonne/hr ------Total Organic Volume Flow tonne/hr ------Organic Specific Gravity ------Overall Total Mass Flow tonne/hr 2.359 2.60E-04 2.359 0.00E+00 0.00E+00 3.03E-04 2.359 0.563 1.277 0.519 0.519 0.519 0.519 0.514 0.004 Total Volumetric Flow m³/hr 2.359 3.67E-05 2.359 0.00E+00 0.00E+00 4.69E-05 2.359 - 1.277 0.073 0.519 0.519 0.073 0.072 0.001 Solids - Percent wt% 0.0% 100.0% 0.0% 0.0% 0.0% 98.0% 0.0% - 0.0% 100.0% 0.0% 0.0% 100.0% 100.0% 100.0% Slurry Specific Gravity - 1.000 7.100 1.000 #DIV/0! #DIV/0! 6.470 1.000 - 1.000 7.100 1.000 1.000 7.100 7.100 7.100 Temperature °C 20.0 20.0 20.0 20.0 20.0 20.0 20.0 - 35.0 35.0 20.0 20.0 35.0 35.0 20.0 General Notes 42 - Zinc Electrolyte Purification Circuit Parameters 42 - Zinc Electrowinning Circuit Parameters 42 - Zinc Electrowinning Circuit Parameters 1) It is assumed that oxide minerals and gangue material does not dissolve during Parameter Units Value Parameter Units Value Parameter Units Value ferric chloride leach. Mass flow Cu2+ in stream 42.33 tonne/hr 5.79E-05 Electrowinning circuit operating temperature oC 35.00 Electrowinning current efficiency % 91.00% Mass flow Pb2+ in stream 42.33 tonne/hr 1.15E-06 Electrolyte average specific heat capacity kJ/kgoC 4.18 Mass flow Cu2+ in stream 42.46 tonne/hr 2.66E-05 Electrolyte heating loss (% sensible heat) % 15.00% Mass flow Pb2+ in stream 42.46 tonne/hr 4.24E-07 Electrolyte heat load kW 47.24 Zinc overall recovery: 79.42% Percent removal of indium to cement % 99.75% Electrolyte heating steam consumption tonne/hr 0.08 Percent removal of copper to cement % 54.00% Percent removal of lead to cement % 63.00% Zinc electrowinning power requirement kWh/kg Zn 5.00 Percent removal of ferric iron to cement % 5.00% Zinc electrowinning electricity consumption kW 2582.16 Electrolyte impurity cake solids start of wash wt% 90.00% Conversion aqueous zinc to zinc metal % 80.00% Electrolyte impurity cake wash vol. displace. factor 0.00 Electrolyte impurity cake wash water acidity M 0.10 Zinc metal wash water requirement m3/t Zn 1.00 Electrolyte impurity cake final dryness wt% 98.00% Electrolyte impurity filter solids capture wt% 98.00% MASS AND ENERGY BALANCE SIMULATION Thibault & Associates Inc. Applied Process Chemical Engineering Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 14 of 14 Revision: 00 Plant Area 40 - Indium Electrorefining Stream Number and Description 42.34 (copy) 80.15 42.55 80.16 70.12 42.56 42.57 42.58 80.17 70.13 42.59 42.60 42.61 42.62 80.18 70.14 42.63

InCl3 Sol'n to 36wt% HCl In Cementation 36wt% HCl ProcessWater In Sponge In Sponge to Electrorefining Flux to In ProcessWater Dross/Slimes In Metal In Metal Electrorefining NaOH to In ProcessWater Off-gas Scrub. Parameter Units Cementation In Cementation Discharge Sponge Wash Sponge Wash Wash to WWT Electrorefining Sol'n Recycle Electrorefining Electrorefining From Electror. Wash to WWT Market Product Gas to Scrub. Off-gas Scrub. Off-gas Scrub. Bleed to WWT Solid Phase Indium Concentration wt% 0.00% - 95.00% - - 95.00% 95.00% Indium Mass Flow tonne/hr 0.00E+00 - 4.98E-03 - - 9.96E-05 4.88E-03 Zinc Concentration wt% 0.000% - 0.000% - - 0.000% 0.000% Zinc Mass Flow tonne/hr 0.00E+00 - 0.00E+00 - - 0.00E+00 0.00E+00 Iron Concentration wt% 0.000% - 0.000% - - 0.000% 0.000% Iron Mass Flow tonne/hr 0.00E+00 - 0.00E+00 - - 0.00E+00 0.00E+00 Total Solids Mass Flow tonne/hr 0.00E+00 - 5.24E-03 - - 1.05E-04 5.14E-03 Solids Specific Gravity - 8.241 - 7.310 - - 7.310 7.310 Aqueous Phase Indium Concentration g/L 2.116 - 0.005 - - 0.005 0.000 Indium Mass Flow tonne/hr 4.99E-03 - 1.25E-05 - - 1.25E-05 0.00E+00 Zinc Concentration g/L 8.844 - 10.545 - - 10.423 0.000 Zinc Mass Flow tonne/hr 2.09E-02 - 2.51E-02 - - 2.51E-02 0.00E+00 Iron(III) Concentration g/L 0.084 - 0.083 - - 0.082 0.000 Iron(III) Mass Flow tonne/hr 1.98E-04 - 1.98E-04 - - 1.98E-04 0.00E+00 Iron(II) Concentration g/L 0.000 - 0.000 - - 0.000 0.000 Iron(II) Mass Flow tonne/hr 0.00E+00 - 0.000 - - 0.000 0.000 Total Aqueous Mass Flow tonne/hr 2.385 0.024 2.408 2.31E-05 2.26E-03 2.41E+00 5.71E-04 Total Aqueous Volume Flow m³/hr 2.359 0.020 2.382 1.95E-05 2.263E-03 2.41E+00 5.71E-04 Aqueous Specific Gravity - 1.011 1.180 1.011 1.180 1.000 1.000 1.000 Organic Phase Indium Concentration g/L ------Indium Mass Flow tonne/hr ------Zinc Concentration g/L ------Zinc Mass Flow tonne/hr ------Iron(III) Concentration g/L ------Iron(III) Mass Flow tonne/hr ------Iron(II) Concentration g/L ------Iron(II) Mass Flow tonne/hr ------Extractant Mass Flow tonne/hr ------Diluent Mass Flow tonne/hr ------Total Organic Mass Flow tonne/hr ------Total Organic Volume Flow tonne/hr ------Organic Specific Gravity ------Overall Total Mass Flow tonne/hr 2.385 0.024 2.413 2.31E-05 2.26E-03 2.410 5.71E-03 Total Volumetric Flow m³/hr 2.359 0.020 2.382 1.95E-05 2.26E-03 2.410 1.27E-03 Solids - Percent wt% 0.00% 0.00% 0.22% 0.0% 0.0% 0.004% 90.0% Slurry Specific Gravity - 1.011 1.180 1.013 1.180 1.000 1.000 4.482 Temperature °C 20.0 20.0 30.0 20.0 20.0 20.0 20.0 General Notes 42 - Indium Cementation Reaction Parameters 1) It is assumed that oxide minerals and gangue material does not dissolve during Parameter Units Value ferric chloride leach. Target HCl conc. in cementation reactor M 0.10 Percent conversion to indium metal % 99.75% Zinc metal purity % 99.50%

Indium sponge dryness at start of wash wt% 90.00% Indium sponge wash displacement volumes factor 4.00 Indium sponge wash water acidity M 0.10 Indium sponge final dryness wt% 90.00% Indium sponge filter solids capture wt% 98.00% Indium Sponge Purity wt% 95.00%

Indium Overall recovery: wt% 75.40% Mount Pleasant Property North Zone Preliminary Assessment

Appendix B

Process Flowsheets

Mount Pleasant Property as of 1985. Concentrator and ore storage A-Frame buildings remain on site as of January 2010

Adex Mining Inc.

Mount Pleasant Property North Zone Preliminary Assessment

Appendix C

Process Equipment Layout

Mount Pleasant Property as of 1985. Concentrator and ore storage A-Frame buildings remain on site as of January 2010

Adex Mining Inc.

Mount Pleasant Property North Zone Preliminary Assessment

Appendix D

Environmental and Permitting

Mount Pleasant Property as of 1985. Concentrator and ore storage A-Frame buildings remain on site as of January 2010

Adex Mining Inc. New _17- . Nouveau ~ BrUnS\VIC k

APPROVAL TO OPERATE

1-6154

Pursuant to paragraph 8(1) of the Water Quality Regulation - Clean Environment Act, this Approval to Operate is hereby issued to:

Adex Minerals Corp. for the operation ofthe Minewater Treatment Plant at the Mount Pleasant Minesite

Description of Source: The Minewater Treatment Plant at the Mount Pleasant Minesite

Source Classification: Fees for Industrial Approvals Class lA Regulation - Clean Water Act

Parcel Identifier: 01242957, 01219823, 15011372, 01240852, 01242932, 01242858, 15059108, 15159551

Mailing Address: 372 Bay St. Suite 800 Toronto, ON M5H 2W9

Conditions of Approval: See attached Schedule" A" of this Approval

Supersedes Approval: New

Valid From: October 31, 2007

Valid To: September 30, 2012

Recommended bY~Enviro mental~ Management Division

dJ,p.r.1 I.. :1001 Date ADEX MINERALS CORP. 1-6154 Page 1 of7

SCHEDULE "A"

A. DESCRIPTION AND LOCATION OF SOURCE

Adex Minerals Corp.'s polymetalic mine, located in the County of Charlotte and the Province of New Brunswick, currently in Care & Maintenance but with an operating minewater treatment plant, is hereby approved to operate, subject to the following:

B. DEFINITIONS

1. "Adex" means Adex Minerals Corp. and includes any contractors or consultants working on the site under the direct control of, under contract to, or with the permission of Adex. Adex is hereby identified as the "person responsible for the source" pursuant to Section 2(1) ofthe Water Quality Regulation.

2. The "Department" means the New Brunswick Department of Environment, the "Project Assessment & Approvals Branch" means the Project Assessment & Approvals Branch of the Department in Fredericton and the "Saint John Regional Office" means the Region 4 Office of the Department in Saint John.

3. The Mount Pleasant minesite "property" means the properties with the following PID numbers: 01240852, 01219823, 15011372, 01242957, 01242932, 01242858, 15059108 and 15159551.

4. The "Mount Pleasant minesite" means the Mount Pleasant minesite property and without limiting the generality of the term, includes all land and works that are used, mayor have been used, may be affected or have been affected by the operation, Care & Maintenance or reclamation activities at the Mount Pleasant minesite. Adex's Mount Pleasant minesite is hereby identified as a "source" pursuant to Section 2(1) of the Water Quality Regulation, and specifically includes:

(a) the underground mine; (b) the mill buildings and equipment; (c) the minewater treatment plant, including the lime plant and the sludge pond; (d) the Tailings Impoundment Area (TIA); (e) the Hatch Brook Diversion Channel; and, (f) service roads and trails on the minesite property.

5. For the purposes of Approval to Operate 1-6154, the term "operate" authorizes Adex to conduct the following activities at the Mount Pleasant minesite:

(a) to operate the minewater treatment plant and to release contaminants into Hatch

BrookattheTIAdischargestructure;' ~ ' ADEX MINERALS CORP. 1-6154 Page 2 of7

(b) to carry out any activities necessary to maintain the Mount Pleasant minesite in Care & Maintenance; (c) to repair the TIA dam pursuant to Condition 13; (d) to carry out equipment inspections within the mill buildings and on the minesite property; (e) to conduct exploration activities which includes drilling, surface and borehole geophysical surveys, induced polarization (IP) surveys, surface trenching and sampling, and to take bulk samples on the minesite property subject to approval from the NB Department of Natural Resources; (f) to operate metallurgical bench or pilot scale milling tests and to conduct minewater characterization and treatment studies; (g) to upgrade the minewater treatment plant sludge pond and to construct sludge storage cell(s) pursuant to Condition 14(h); (h) to maintain and repair the service roads on the property; (i) to carry out any other activities approved by the Project Assessment & Approvals Branch subject to any further Terms & Conditions deemed necessary by the Project Assessment & Approvals Branch; CD but does not approve Adex to dewater or operate the underground mine.

6. "Parameter List A" means aluminum, arsenic, copper, fluoride, hardness, iron, lead, pH, total suspended solids and zinc. "Parameter List Bit means Parameter List A plus molybdenum, tin, indium and tungsten. C. TERMS AND CONDITIONS

7. Emenzencv Reportin2: Adex shall immediately report water quality related emergencies where there has been, or is likely to be, the release of a contaminant to the environment including, but not limited to treated or untreated minewater, petroleum products or hazardous materials, or violation of the Clean Environment Act, the Water Quality Regulation, or of this Approval and the release is of such a magnitude or duration that:

(1) there is concern for the health or safety of the general public, and/or, (2) there has been, or could be, significant harm to the environment, and/or, (3) the release has generated public complaints,

during normal business hours to the Saint John Regional Office at 658-2558. After hours, or when there is no answer at the Saint John Regional Office, Adex shall immediately report the environmental emergency to the Canadian Coast Guard by phone to 1-800-565-1633.

If available at the time of reporting, this initial verbal Emergency Report shall include:

(a) a description of the source, including the name of the owner or operator; (b) the nature, extent, duration and environmental impact of the environmental emergency; ~ ADEX MINERALS CORP. 1-6154 Page 3 of7

(c) the cause or suspected cause of the environmental emergency; and, (d) any remedial action taken, or to be taken, to prevent a recurrence of the environmental emergency.

Within 24 hours of the time of the initial verbal notification, a written Preliminary Emergency Report shall be faxed to the Saint John Regional Office at 658-3046 and to the Project Assessment & Approvals Branch at 457-7805. The Preliminary Emergency Report shall include as much information as is available at the time about the environmental emergency.

If the information in (a) to (d) above is not available at the time of Preliminary Emergency Reporting, follow-up Emergency Reports containing this information shall be submitted as soon as possible, but in no case later than 10 days following the incident, by fax to the Saint John Regional Office and to the Project Assessment & Approvals Branch.

8. Non-Emen~encv Reportine: Adex shall report to the Saint John Regional Office by fax to 658-3046 and to the Project Assessment & Approvals Branch by fax to 457-7805, by the end of the following work day, unapproved releases of contaminants to the environment which are not environmental emergencies, or any other environmental incidents or situations which result in violation of the Clean Environment Act, the Water Quality Regulation, or of this Approval to Operate and giving a brief explanation of the cause and corrective action taken.

9. Approval Classification: Adex's Mount Pleasant minesite is hereby designated as a Class 1A source pursuant to the Feesfor Industrial Approvals Regulation 93-201 under the Clean WaterAct.

10. Method of Analvsis: Adex shall follow the test procedures outlined in Standard Methods, where "Standard Methods" means Standard Methods for the Examination of Water and Wastewater, 19th or later Edition, or other method deemed acceptable by the Project Assessment & Approvals Branch, for all analyses required by this Approval. Metals shall be tested for "total metals" (i.e.: unfiltered). Acute lethality testing shall follow the procedures described in EPSIl/RM/13 and shall be done at a laboratory which is accredited by the Standards Council of Canada.

11. Hazardous Waste: Adex shall manage hazardous waste, where "hazardous waste" means any waste material intended for disposal or recycling, that is identified as a hazardous waste by the federal Export and Import of Hazardous Wasteand Hazardous Recyclable Material Regulations,

(

. and/or is included in Class 1 and/or Class 7 of the federaJ Transportation oj Dangerous ~ I ~ GoodsRegulations,asfollows: ~ ADEX MINERALS CORP. 1-6154 Page 4 of7

(a) Adex shall ensure that all hazardous waste at the Mount Pleasant minesite is stored as follows:

1. all hazardous waste shall be stored in a dedicated hazardous waste storage area, secured in sealed and chemically resistant containers, away from high traffic areas, protected from vehicle impacts, away from electrical panels and in a containment area that is designed to prevent contact between incompatible materials; 11. all hazardous waste shall be stored in a containment area that has secondary containment adequate to contain 110% of the nominal volume of the largest container in the containment area; 111. all hazardous waste shall be stored in a containment area designed to prevent the release or discharge of hazardous waste to the environment as a result of a spill;

(b) Adex shall keep a record of all hazardous waste put into the hazardous waste storage area, including as a minimum, the date the waste was put into storage, a description of each hazardous waste put into storage and the amount of each hazardous waste put into storage;

(c) Adex shall ensure that all hazardous waste generated at the Mount Pleasant minesite is collected and transported offsite by a Hazardous Waste Collection and Transportation provider that is approved by the Department;

(d) Adex shall keep a record of all hazardous waste that is transported offsite including as a minimum, the name and identifying number of the generator, a description of each hazardous waste transported, the amount of each hazardous waste transported, the name and identifYing number of the. Hazardous Waste Collection and Transportation provider, the date of the collection, the class of each hazardous waste collected (under the federal Transportation of Dangerous Goods Act), and the name, location, and identifying number of the intended Receiver of each hazardous waste.

12. Beaver Dams: Adex shall inspect the Hatch Brook Diversion Channel, where the Diversion Channel means the Diversion Channel as shown in Jacques Whitford Figures 1008943-1, 1008943-2 and 1008943-3, and shall inspect Hatch Brook 100 meters below the Channel once per week for blockage, or more frequently if blockages are regularly observed, and shall remove the blockage and restore normal flow in the channel as soon as possible after discovering the blockage. If the diversion channel blockage is due to beaver dams, Adex shall follow the procedures provided by the Project Assessment & Approvals Branch. ~ ADEX MINERALS CORP. 1-6154 Page 5 of7 13. Tailin2s Impoundment Area -Dam Repairs: Adex may complete repairs and modifications to the TIA dam, discharge structure and emergency spillway subject to the following:

(a) prior to the start of construction, Adex shall provide copies of construction drawings to the Project Assessment & Approvals Branch for review and approval that show the construction details of the repairs and modifications to the TIA dam, discharge structure and emergency spillway and a tentative schedule indicating the various phases of construction;

(b) pursuant to Section 3(3)(b.3) of the Watercourse and Wetland Alteration Regulation - Clean Water Act, Adex is hereby exempted from the requirement to apply for and obtain a permit under paragraph 15(1)(b) of the Clean Water Act, for the activities described above that would otherwise require a permit, but Adex shall follow any Terms & Conditions deemed necessary by the Project Assessment & Approvals Branch for those activities;

(c) prior to flooding the tailings in the TIA, Adex shall submit to the Project Assessment & Approvals Branch for review and approval, a Tailings Flooding Contingency Plan in case the flooding begins to release metal concentrations greater than shown in Condition 15(g).

14. Operation of Minewater Treatment Plant: Adex shall operate the minewater treatment plant as follows:

(a) the flow from the mine portal shall be recorded daily; (b) a grab sample of the minewater from the mine portal shall be tested once per month, on a mutually agreeable day, for Parameter List A and annually for Parameter List B; (c) sufficient lime shall be added to the untreated minewater such that the pH at the outlet of the hydroxide sludge pond is, at all times, ~ 8.5; (d) the pH at the discharge of the sludge pond shall be grab sampled and tested daily for pH; (e) the sludge pond shall be inspected daily for proper operation and the level of sludge in the pond noted; (f) sludge shall be removed from the sludge pond as required to ensure proper operation; (g) the sludge removed from the sludge pond shall be disposed of in a location acceptable to the Project Assessment & Approvals Branch; (h) if acceptable sludge storage from (g) includes construction of new sludge cells, prior to the start of construction Adex shall provide copies of construction drawings to the Project Assessment & Approvals Branch for review and approval

' that show the details of the sludge cell cons1ruction and a tentative schedule 11\ OJI k .

indicating the various phases of construction. 'f0r'" . ADEX MINERALS CORP. 1-6154 Page6of7

15. Oueration of Tailine:s Imuoundment Area: Adex shall operate the TIA as follows:

(a) the tailings dam shall be visually inspected daily and the flow through the TIA discharge structure noted; (b) if there is flow through the TIA discharge structure, the flow shall be estimated; (c) the flow through the TIA discharge structure shall be grab sampled once per month and tested for Parameter List A; (d) the flow through the TIA discharge structure shall be grab sampled once per year and tested for acute lethality and Parameter List B; (e) the Mount Pleasant minesite shall be operated such that the only direct discharge of contaminants to the environment is from the TIA discharge structure; (f) no wastes shall be deposited in the TIA, without prior approval in writing from the Project Assessment & Approvals Branch; (g) Adex shall endeavor to operate the Mount Pleasant minesite such that the flow through the TIA discharge structure meets the following water quality objectives:

(i) the pH is, at all times, greater than 6.5 and less than 9.0; (ii) the total suspended solids are, at all times, less than 10mg/l; (iii) the aluminum concentration is, at all times, less than 0.4 mg/l; (iv) the arsenic concentration is, at all times, less than 0.3 mg/1; (v) the fluoride concentration is, at all times, less than 3.0 mg/l; (vi) the zinc concentration is, at all times, less than 0.4 mg/l; (vii) the water is, at all times, non-acutely lethal.

16. Surface Water Monitorine:Proe:ram: , Adex shall grab sample the following surface water locations once per month, on a day mutually agreeable to by Adex and the Project Assessment & Approvals Branch:

(a) Hatch Brook approximately 10 meters upstream of the confluence of Hatch Brook and the TIA spillway; (b) Hatch Brook approximately 10 meters downstream of the confluence of Hatch Brook and the TIA spillway, including a flow estimate, in l/sec, at the time of sampling showing a cross-section of the brook at the sampling station and the flow calculations; (c) Hatch Brook approximately 1300 meters downstream of the confluence of Hatch Brook and the TIA spillway at the bridge known as the Mine Road Bridge;

and shall analyze the samples Parameter List A. If the sample locations are not accessible, for example, due to winter weather conditions, the affected samples are not required but this shall be noted in the Monthly Water Quality Report.

17. Environmental Effects Monitorine:: By March 31, 2008, Adex shall submit to the Project Assessment & Approvals Branch a proposal for an Environmental Effects Monitoring study in the Hatch Brook Watershed. The proposal shall include, as a minimum: ADEX MINERALS CORP. 1-6154 Page 70f7

(a) an Adult Fish Survey to determine population levels and species composition; (b) a heavy metals in flesh and livers survey to determine the heavy metals content in fish; (c) the proposal shall recommend a field work schedule and a report submission schedule.

The Environmental Effects Monitoring study shall be completed in the manner, and on the schedule, as directed by the Project Assessment & Approvals Branch.

18. Monthlv Water Qualitv Report: By the end of the following month, Adex shall submit to the Saint John Regional Office and to the Project Assessment & Approvals Branch, a Monthly Water Quality Report for the previous month, which may be in electronic format, containing the following information:

(a) A cover letter, signed by an Adex official, stating that the information in the Monthly Water Quality Report has been reviewed and found to be accurate and highlighting any water quality related events that occurred during the month;

(b) A summary of any water quality related incidents reported pursuant to Condition 7 or 8, of any violations of the Clean Environment Act, the Water Quality Regulation, or of this Approval and a summary of any operating problems related to the minewater treatment plant or the TIA;

(d) Minewater sampling and flow monitoring data required pursuant to Condition 14 and 15;

(e) Surface water monitoring data required pursuant to Condition 16.

Prepared by: n QR. Murray,P.Eng. Industrial Approvals Engineer, Project Assessment and Approvals Branch

Reviewed bY:~ M~ Paul Vanderlaan,P.Eng. Director,ProjectAssessmentandApprovalsBranch Mount Pleasant Property North Zone Preliminary Assessment

Appendix E

Capital Cost Summary

Mount Pleasant Property as of 1985. Concentrator and ore storage A-Frame buildings remain on site as of January 2010

Adex Mining Inc. CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost)

Processing facility name Plate Capacity (based on dry tonnes per day (tpd) of run-of-mine ore: 850.01 Plant availability factor at nameplate capacity: 0.900 Maximum operating hours on annual basis: (based on 365 days per year and 24 hours per day maximum operating time) 8,760.0 Total annual tonnage of ore processed: 279,227.63

Line Items A Main Process Equipment for Each Unit Operation

1.00 Crushing Circuit (Ref Drw: 0503-10-01) Constant size crushing plant - operating hours per day change as throughput changes.

Oversize Screen / Grizzly REV 02 DELETED Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.000 $68,785 $0 $0

Ore Hopper Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.100 $31,100 $3,110 $3,110

Primary Crusher Feeder Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.500 $36,000 $18,000 $18,000

Transfer Chute A REV 02 DELETED Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.000 $9,000 $0 $0

Primary Jaw Crusher Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.500 $232,559 $116,280 $116,280

Jaw Crusher Transfer Conveyor Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.500 $200,000 $100,000 $100,000

Fine Ore Screen Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.250 $120,671 $30,168 $30,168

Transfer Chute B REV 02 DELETED Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.000 $10,927 $0 $0

Secondary Crusher Feed Bin REV 02 DELETED Charge Capacity (tonne per hour of dry solids):

1 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Cost Curve Estimate ($CDN): 0.000 $30,595 $0 $0

Secondary Crusher Feeder Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.500 $34,342 $17,171 $17,171

Transfer Chute C REV 02 DELETED Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.000 $10,927 $0 $0

Secondary Cone Crusher Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.500 $316,624 $158,312 $158,312

Secondary Cone Crusher Conveyor Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.500 $36,003 $18,002 $18,002

Crusher Circuit Dust Collector System REV 02 DELETED Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.000 $30,000 $0 $0

NOTE: Cost for use crusher equipment using factors as shown is compatible to purchase of used potable crusher units c/w jaw and cone crusher circuits (including screens, transfer conveyors, etc.)

Crusher Circuit Yard Transfer Conveyor to Silo REV 02 REFURBISHED USED SUPPLIER Charge Capacity (tonne per hour of dry solids): Cost Curve Estimate ($CDN): 0.300 $265,000 $79,500 $79,500

Yard Transfer Conveyor Support System Foundation and structural steel for 2 support columns Cost Curve Estimate ($CDN): 1.000 $60,000 $60,000 $60,000

Subtotal Process Equipment Line A: (supply and installed) $1,492,533 $600,542 $600,542

2.00 Grinding and Classification Circuit (Ref Drw: 0503-20-01)

Fine Ore Storage Silo used cost based on refurbishment of existing silo 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.050 63,486.83 0.49 $364,584 $18,229 $18,229

Rod Mill Feeder REV 02 REFURBISHED USED SUPPLIER Charge Capacity (tonne per hour of dry solids): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.100 20,046.00 0.25 $48,902 $4,890 $4,890

2 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Rod Mill Weight meter Charge Capacity (tonne per hour of dry solids): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.500 14,075.86 0.15 $24,036 $12,018 $12,018

Rod Mill Feed Conveyor REV 02 REFURBISHED USED SUPPLIER Charge Capacity (tonne per hour of dry solids): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.300 33,411.26 0.25 $81,507 $24,452 $24,452

Rod Mill Charge Capacity (power requirement kW): 161.68 Cost Curve Estimate ($CDN): 1,573.00 0.300 54,063.67 0.65 $1,474,138 $442,241 $442,241

Grinding Area O/H Crane REV 02 REFURBISHED USED SUPPLIER Charge Capacity (tonne per hour of dry solids): 161.68 Cost Curve Estimate ($CDN): 1,573.00 0.300 175,000.00 0.10 $291,008 $87,302 $87,302

Grinding Media- Ball Bin REV 02 DELETED Charge Capacity (tonne per hour of dry solids): 161.68 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,000.00 0.10 $9,977 $0 $0

Ball Mill Charge Capacity (power requirement kW): 463.57 Cost Curve Estimate ($CDN): 1,573.00 0.300 42,508.11 0.65 $2,298,506 $689,552 $689,552

Grinding Classification Cyclopac Charge Capacity (tonne per hour of dry solids): 95.72 Cost Curve Estimate ($CDN): 1,573.00 0.500 6,054.21 0.42 $41,880 $20,940 $20,940

Grinding Classification Screen NOT REQUIRED Charge Capacity (tonne per hour of dry solids): 0.00 Cost Curve Estimate ($CDN): 1,573.00 0.000 12,000.00 0.42 $0 $0 $0

Grinding Classification Pump Box Charge Capacity (tank volume m3): 10.78 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $16,066 $16,066 $16,066

Grinding Classification Pump A Charge Capacity (m3 per hour of slurry): 129.31 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,976 $12,976 $12,976

Grinding Classification Pump B Charge Capacity (m3 per hour of slurry): 129.31 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,976 $12,976 $12,976

Primary Desliming Pump Box Charge Capacity (tank volume m3): 8.00

3 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $12,541 $12,541 $12,541

Primary Desliming Pump A Charge Capacity (m3 per hour of slurry): 95.94 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,415 $12,415 $12,415

Primary Desliming Pump B Charge Capacity (m3 per hour of slurry): 95.94 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,415 $12,415 $12,415

Grinding Area Sump Pump REV 02 NOT REQUIRED Charge Capacity (m3 per hour of slurry): 17.71 Cost Curve Estimate ($CDN): 1,573.00 0.000 677.29 0.82 $7,150 $0 $0

Subtotal Process Equipment Line A: (supply only) $4,721,077 $1,379,013 $1,379,013

3.00 Desliming Circuit (Ref Drw: 0503-20-02)

Primary Desliming Cyclopac Used cost based on refurbishment of existing 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.200 1,921.64 1.06 $84,302 $16,860 $16,860

Desliming Area Sump Pump Charge Capacity (m3 per hour of slurry): 17.71 Cost Curve Estimate ($CDN): 1,573.00 1.000 677.29 0.82 $7,150 $7,150 $7,150

Second Stage Desliming Pump Box REV 02 REFURBISHED Charge Capacity (tank volume m3): 8.62 Cost Curve Estimate ($CDN): 1,573.00 0.100 2,233.51 0.83 $13,348 $1,335 $1,335

Second Stage Desliming Pump A Charge Capacity (m3 per hour of slurry): 103.43 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,554 $12,554 $12,554

Second Stage Desliming Pump B Charge Capacity (m3 per hour of slurry): 103.43 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,554 $12,554 $12,554

Secondary Desliming Cyclopac Used cost based on refurbishment of existing 35.39 Cost Curve Estimate ($CDN): 1,573.00 0.400 1,921.64 1.06 $84,244 $33,698 $33,698

Third Stage Desliming Tank Used cost based on refurbishment to existing Charge Capacity (tank volume m3): 151.65 Cost Curve Estimate ($CDN): 1,573.00 0.050 2,233.51 0.83 $144,240 $7,212 $7,212

4 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Third Stage Desliming Agitator Charge Capacity (agitator drive power Kw): 15.16 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $36,789 $36,789 $36,789

Third Stage Desliming Pump A Charge Capacity (m3 per hour of slurry): 151.65 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $13,286 $13,286 $13,286

Third Stage Desliming Pump B REV 02 USE PRIMARY STAGE PUMP SPARE 9DULE SERVICE Charge Capacity (m3 per hour of slurry): 151.65 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $13,286 $13,286 $13,286

Desliming Centrifuge Separators REV 02 DELETED Charge Capacity (number of units): 9.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 52,923.00 0.42 $136,883 $136,883 $136,883

Subtotal Process Equipment Line A: (supply only) $558,634 $291,604 $291,604

4.00 Magnetic Separation Circuit (Ref Drw: 0503-31-01)

Splitter Box Charge Capacity (tank volume m3): 3.40 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,168 $6,168 $6,168

Low Intensity Magnetic Separator LIMS A Charge Capacity (tonne per hour of dry solids): 26.32 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,691.12 0.60 $54,718 $54,718 $54,718

Low Intensity Magnetic Separator LIMS B Charge Capacity (tonne per hour of dry solids): 0.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,691.12 0.60 $0 $0 $0

LIMS Magnetics Pump Box REV 02 REFUSBISH EXISTING Charge Capacity (tank volume m3): 0.37 Cost Curve Estimate ($CDN): 1,573.00 0.200 2,233.51 0.83 $987 $197 $197

LIMS Magnetics Transfer Pump A Charge Capacity (m3 per hour of slurry): 4.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,887 $7,887 $7,887

LIMS Magnetics Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 4.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,887 $7,887 $7,887

LIMS Non- Magnetics Pump Box

5 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Charge Capacity (tank volume m3): 3.53 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,360 $6,360 $6,360

LIMS Non- Magnetics Transfer Pump A Charge Capacity (m3 per hour of slurry): 42.34 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $10,998 $10,998 $10,998

LIMS Non- Magnetics Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 42.34 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $10,998 $0 $0

High Intensity Magnetic Separator ( HIMS ) Cost revision based on treatment of the tin concentrate Charge Capacity (tonne per hour of dry solids): 0.41 Cost Curve Estimate ($CDN): 1,573.00 1.000 150,000.00 0.60 $87,828 $87,828 $87,828

HIMS Non- Magnetic Settling Cone Used cost based on refurbishment of existing cones Charge Capacity (tank volume m3): 135.93 Cost Curve Estimate ($CDN): 1,573.00 0.020 2,233.51 0.83 $131,720 $2,634 $2,634

HIMS Non- Magnetic Pump Box Charge Capacity (tank volume m3): 0.37 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $987 $987 $987

HIMS Non- Magnetic Transfer Pump A Charge Capacity (m3 per hour of slurry): 4.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,887 $7,887 $7,887

HIMS Non- Magnetic Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 4.49 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $7,887 $0 $0

Subtotal Process Equipment Line A: (supply only) $342,313 $193,553 $193,553

6 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) 5.00 Zinc Flotation Circuit (Ref Drw: 0503-31-02)

Zinc Flotation Conditioning Tank - Use cost based on refurbishment to existing tank Charge Capacity (tank volume m3): 19.02 Cost Curve Estimate ($CDN): 1,573.00 0.150 2,233.51 0.83 $25,746 $3,862 $3,862

Zinc Flotation Conditioning Agitator Charge Capacity (agitator drive power Kw): 3.80 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $14,019 $14,019 $14,019

Zinc Rougher (RO) Flotation Cell A Charge Capacity (tank volume m3): 2.96 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $37,951 $18,975 $18,975

Zinc Rougher (RO) Flotation Cell B Charge Capacity (tank volume m3): 2.96 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $37,951 $18,975 $18,975

Zinc Rougher (RO) Flotation Cell C Charge Capacity (tank volume m3): 2.96 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $37,951 $18,975 $18,975

Zinc Rougher (RO) Flotation Cell D Charge Capacity (tank volume m3): 2.96 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $37,951 $18,975 $18,975

Zinc Rougher (RO) Flotation Cell E Charge Capacity (tank volume m3): 2.96 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $37,951 $18,975 $18,975

Zinc Scavenger (Sc) Flotation Cell A Charge Capacity (tank volume m3): 2.98 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $38,081 $19,041 $19,041

Zinc Scavenger (Sc) Flotation Cell B Charge Capacity (tank volume m3): 2.98 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $38,081 $19,041 $19,041

Zinc Scavenger (Sc) Flotation Cell C Charge Capacity (tank volume m3): 2.98 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $38,081 $19,041 $19,041

Zinc Scavenger (Sc) Flotation Cell D Charge Capacity (tank volume m3): 2.98 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $38,081 $19,041 $19,041

7 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost)

Zinc Scavenger (Sc) Flotation Cell E Charge Capacity (tank volume m3): 2.98 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $38,081 $19,041 $19,041

Zinc Cleaner (CL) Flotation Cell A Charge Capacity (tank volume m3): 1.43 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $25,665 $12,833 $12,833

Zinc Cleaner (CL) Flotation Cell B Charge Capacity (tank volume m3): 1.43 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $25,665 $12,833 $12,833

Zinc Cleaner (CL) Flotation Cell C Charge Capacity (tank volume m3): 1.43 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $25,665 $12,833 $12,833

Zinc Cleaner (CL) Flotation Cell D Charge Capacity (tank volume m3): 1.43 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $25,665 $12,833 $12,833

Zinc Cleaner (CL) Flotation Cell E Charge Capacity (tank volume m3): 1.44 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $25,677 $12,839 $12,839

Zinc Cleaner (CL) Flotation Cell F Charge Capacity (tank volume m3): 1.44 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $25,677 $12,839 $12,839

Zinc Ro. Flotation Conc. Pumps A Charge Capacity (m3 per hour of slurry): 10.05 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $8,700 $8,700 $8,700

Zinc Ro. Flotation Conc. Pumps B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 10.05 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $8,700 $0 $0

Zinc Flotation CL. Conc Pump A Charge Capacity (m3 per hour of slurry): 6.48 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $8,117 $8,117 $8,117

Zinc Flotation CL. Conc Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 6.48 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $8,117 $0 $0

8 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Zinc Cleaner Recycle Pump A Charge Capacity (m3 per hour of slurry): 6.48 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $8,117 $8,117 $8,117

Zinc Cleaner Recycle Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 6.48 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $8,117 $0 $0

Zinc Sc. Flotation Conc. Pumps A Charge Capacity (m3 per hour of slurry): 3.97 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $7,509 $7,509 $7,509

Zinc Sc. Flotation Conc. Pumps B - VEA /DELETED Charge Capacity (m3 per hour of slurry): 3.97 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $7,509 $0 $0

Zinc Flotation Sc. Tailings Pump Box - VEA /DELETED Charge Capacity (tank volume m3): 5.17 Cost Curve Estimate ($CDN): 1,573.00 0.000 2,233.51 0.83 $8,736 $0 $0

Zinc Flotation Sc. Tailings Transfer Pump A - VEA / DELETED Charge Capacity (m3 per hour of slurry): 62.06 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $11,639 $0 $0

Zinc Flotation Sc. Tailings Transfer Pump B -VEA / DELETED Charge Capacity (m3 per hour of slurry): 62.06 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $11,639 $0 $0

Zinc Flotation CL Tailings Pump Box - VEA / DELETED Charge Capacity (tank volume m3): 0.63 Cost Curve Estimate ($CDN): 1,573.00 0.000 2,233.51 0.83 $1,517 $0 $0

Zinc Flotation CL Tailings Transfer Pump A Charge Capacity (m3 per hour of slurry): 7.53 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,516 $8,516 $8,516

Zinc Flotation CL Tailings Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 7.53 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $8,516 $0 $0

Subtotal Process Equipment Line A: (supply only) $689,392 $325,929 $325,929

9 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) 6.00 Zinc Concentrate Dewatering Circuit (Ref Drw 0503-31-03)

Zinc Flotation Reclaim Water Holding Tank REV 02 REFURBISHED EXISTING Charge Capacity (tank volume m3): 25.96 Cost Curve Estimate ($CDN): 1,573.00 0.100 2,233.51 0.83 $33,328 $3,333 $3,333

Zinc Flotation Reclaim Water Pump A Charge Capacity (m3 per hour of slurry): 25.96 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $10,229 $10,229 $10,229

Zinc Flotation Reclaim Water Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 25.96 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $10,229 $0 $0

Zinc Concentrate Thickener Charge Capacity (equivalent diameter of settle area m): 2.68 Cost Curve Estimate ($CDN): 1,573.00 0.500 98,943.84 0.42 $149,170 $74,585 $74,585

Zinc Concentrate Thickener U/F Pump A Charge Capacity (m3 per hour of slurry): 0.85 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $6,168 $6,168 $6,168

Zinc Concentrate Thickener U/F Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 0.85 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $6,168 $0 $0

Zinc Concentrate Holding Tank Charge Capacity (tank volume m3): 3.41 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,184 $6,184 $6,184

Zinc Concentrate Holding Tank Agitator Charge Capacity (agitator drive power Kw): 3.41 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $12,993 $12,993 $12,993

Zinc Concentrate Transfer Pumps A Charge Capacity (m3 per hour of slurry): 0.85 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $6,168 $6,168 $6,168

Zinc Concentrate Transfer Pumps B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 0.85 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $6,168 $0 $0

Zinc Flotation Area Sump Pump Charge Capacity (m3 per hour of slurry): 17.71 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,666 $9,666 $9,666

10 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Zinc Concentrate Product Filter Charge Capacity (m2 of filtration area): 21.96 Cost Curve Estimate ($CDN): 1,573.00 0.300 200,000.00 0.11 $282,944 $84,883 $84,883

Zinc Concentrate Product Filter Filtrate Receiver REV 02 REFURBISH TO EXISTING Charge Capacity (tank volume m3): 3.00 Cost Curve Estimate ($CDN): 1,573.00 0.300 2,233.51 0.83 $5,559 $1,668 $1,668

Zinc Concentrate Product Filter Filtrate Tank REV 02 REFURBISH TO EXISTING Charge Capacity (tank volume m3): 3.00 Cost Curve Estimate ($CDN): 1,573.00 0.300 2,233.51 0.83 $5,559 $1,668 $1,668

Zinc Concentrate Product Filter Filtrate Pump A Charge Capacity (m3 per hour of slurry): 3.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,431 $7,431 $7,431

Zinc Concentrate Product Filter Filtrate Pump B REV 02 DELETD Charge Capacity (m3 per hour of slurry): 3.00 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $7,431 $0 $0

Zinc Concentrate Screw Conveyor B REV 02 REFURBISHMENT ON USED Charge Capacity (tonne per hour of wet solids): 1.00 Cost Curve Estimate ($CDN): 1,573.00 0.250 16,459.14 0.31 $16,459 $4,115 $4,115

Zinc Concentrate Bucket Elevator Charge Capacity (tonne per hour of wet solids): 1.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $16,459 $16,459 $16,459

Zinc Concentrate Storage Bin REV 02 DELETD Charge Capacity (tank volume m3): 3.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,600.00 0.83 $16,427 $16,427 $16,427

Zinc Concentrate Packaging (not included with tin chlorination system / for tin concentrate production only) REV 02 DELETED Charge Capacity (kg per hour of dry solids): 1.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 25,737.96 0.13 $25,738 $25,738 $25,738

Subtotal Process Equipment Line A: (supply only) $640,480 $287,715 $287,715

7.00 Arsenic Flotation (Ref Drw 0503-32-01)

Arsenic Flotation Conditioning Tanks - Used cost based on refurbishment of existing equipment. Charge Capacity (tank volume m3): 17.99 Cost Curve Estimate ($CDN): 1,573.00 0.150 2,233.51 0.83 $24,586 $3,688 $3,688

11 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Arsenic Flotation Conditioning Agitator Charge Capacity (agitator drive power Kw): 3.60 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $13,486 $13,486 $13,486

Arsenic Rougher (RO) Flotation Cell A Charge Capacity (tank volume m3): 5.60 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $53,499 $26,749 $26,749

Arsenic Rougher (RO) Flotation Cell B Charge Capacity (tank volume m3): 5.60 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $53,499 $26,749 $26,749

Arsenic Rougher (RO) Flotation Cell C Charge Capacity (tank volume m3): 5.60 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $53,499 $26,749 $26,749

Arsenic Rougher (RO) Flotation Cell D Charge Capacity (tank volume m3): 5.60 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $53,499 $26,749 $26,749

Arsenic Rougher (RO) Flotation Cell E Charge Capacity (tank volume m3): 5.60 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $53,499 $26,749 $26,749

Arsenic Ro. Flotation Concentration Pump A Charge Capacity (m3 per hour of slurry): 11.30 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $8,863 $8,863 $8,863

Arsenic Ro. Flotation Concentration Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 11.30 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $8,863 $0 $0

Arsenic Scavenger (SC) Flotation Cell A Charge Capacity (tank volume m3): 5.19 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,356 $25,678 $25,678

Arsenic Scavenger (SC) Flotation Cell B Charge Capacity (tank volume m3): 5.19 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,356 $25,678 $25,678

Arsenic Scavenger (SC) Flotation Cell C Charge Capacity (tank volume m3): 5.19 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,356 $25,678 $25,678

12 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Arsenic SC Conc. Pump A Charge Capacity (m3 per hour of slurry): 3.76 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $7,446 $7,446 $7,446

Arsenic SC Conc. Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 3.76 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $7,446 $0 $0

Arsenic Cleaner (CL) Flotation Cell A Charge Capacity (tank volume m3): 2.76 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $36,535 $18,268 $18,268

Arsenic Cleaner (CL) Flotation Cell B Charge Capacity (tank volume m3): 2.76 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $36,535 $18,268 $18,268

Arsenic Cleaner (CL) Flotation Cell C Charge Capacity (tank volume m3): 2.76 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $36,535 $18,268 $18,268

Arsenic Cleaner (CL) Flotation Cell D Charge Capacity (tank volume m3): 2.75 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $36,465 $18,232 $18,232

Arsenic Cleaner (CL) Flotation Cell E Charge Capacity (tank volume m3): 2.75 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $36,465 $18,232 $18,232

Arsenic CL Con Transfer Pump A Charge Capacity (m3 per hour of slurry): 10.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $8,760 $8,760 $8,760

Arsenic CL Con Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 10.49 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $8,760 $0 $0

Arsenic Cleaner Recycle Pump A Charge Capacity (m3 per hour of slurry): 10.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,036.67 0.16 $8,760 $8,760 $8,760

Arsenic Cleaner Recycle Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 10.49 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,036.67 0.16 $8,760 $0 $0

13 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Arsenic CL Tail Pump Box Charge Capacity (tank volume m3): 0.40 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $1,038 $1,038 $1,038

Arsenic CL Tail Transfer Pump A Charge Capacity (m3 per hour of slurry): 4.77 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,958 $7,958 $7,958

Arsenic CL Tail Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 4.77 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $7,958 $0 $0

Arsenic Flotation Tailing Pump Box REV 02 DELETED Charge Capacity (tank volume m3): 5.86 Cost Curve Estimate ($CDN): 1,573.00 0.000 2,233.51 0.83 $9,691 $0 $0

Arsenic Flotation Tailing Pump Box Transfer Pump A REV 02 DELETED Charge Capacity (m3 per hour of slurry): 70.32 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $11,856 $0 $0

Arsenic Flotation Tailing Pump Box Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 70.32 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $11,856 $0 $0

Arsenic Flotation Area Sump Pump Charge Capacity (m3 per hour of slurry): 17.71 Cost Curve Estimate ($CDN): 1,573.00 1.000 677.29 0.82 $7,150 $7,150 $7,150

Subtotal Process Equipment Line A: (supply only) $767,333 $369,196 $369,196

8.00 Arsenic Flotation Regrind (Ref Drw 0503-32-02)

Tin Flotation Conditioning Tank - Used cost based on refurbishment of existing equipment. Charge Capacity (tank volume m3): 65.26 Cost Curve Estimate ($CDN): 1,573.00 0.100 6,054.21 0.42 $35,601 $3,560 $3,560

Arsenic Regrind Classification Screen - VEA DELETED Charge Capacity (tonne per hour of dry solids): 45.68 Cost Curve Estimate ($CDN): 1,573.00 0.000 12,000.00 0.42 $59,740 $0 $0

Arsenic Flotation Regrind Pump Box Charge Capacity (tank volume m3): 8.08 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $12,648 $12,648 $12,648

14 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Arsenic Flotation Regrind Transfer Pump A Charge Capacity (m3 per hour of slurry): 96.93 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,433 $12,433 $12,433

Arsenic Flotation Regrind Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 96.93 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $12,433 $0 $0

Arsenic Flotation Regrind Mill Charge Capacity (power draw kW): 150.90 Cost Curve Estimate ($CDN): 1,573.00 0.200 42,508.11 0.65 $1,108,209 $221,642 $221,642

Arsenic Regrind Mill Media Bin REV 02 DELETED Charge Capacity (tank volume m3): 42.39 Cost Curve Estimate ($CDN): 1,573.00 0.000 2,233.51 0.83 $50,072 $0 $0

As Float Reclaim Water Pump Box REV 02 DELETED Charge Capacity (tank volume m3): 1.73 Cost Curve Estimate ($CDN): 1,573.00 0.000 2,233.51 0.83 $3,515 $0 $0

As Float Reclaim Water Transfer Pump A Charge Capacity (m3 per hour of slurry): 20.72 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,894 $9,894 $9,894

As Float Reclaim Water Transfer Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 20.72 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $9,894 $0 $0

Arsenic Flotation Tailings Thickener REV 02 DLETED Charge Capacity (equivalent diameter of settle area m): 5.14 Cost Curve Estimate ($CDN): 1,573.00 0.000 98,943.84 0.42 $195,701 $0 $0

As Float Tailings Thickener Underflow Pump A REV 02 DLETED Charge Capacity (m3 per hour of slurry): 49.60 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $11,259 $0 $0

As Float Tailings Thickener Underflow Pump B REV 02 DLETED Charge Capacity (m3 per hour of slurry): 49.60 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $11,259 $0 $0

Subtotal Process Equipment Line A: (supply only) $1,532,658 $260,177 $260,177

15 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) 9.00 Tin Flotation Circuit (Ref Drw 0503-33-01)

Tin Flotation Conditioning Tank Charge Capacity (tank volume m3): 74.15 Cost Curve Estimate ($CDN): 1,573.00 0.100 2,233.51 0.83 $79,649 $7,965 $7,965

Tin Flotation Conditioning Agitator Charge Capacity (agitator drive power Kw): 14.83 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $36,220 $36,220 $36,220

Tin Rougher (RO) Flotation Cell A Charge Capacity (tank volume m3): 5.13 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,004 $25,502 $25,502

Tin Rougher (RO) Flotation Cell B Charge Capacity (tank volume m3): 5.13 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,004 $25,502 $25,502

Tin Rougher (RO) Flotation Cell C Charge Capacity (tank volume m3): 5.13 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,004 $25,502 $25,502

Tin Rougher (RO) Flotation Cell D Charge Capacity (tank volume m3): 5.13 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,004 $25,502 $25,502

Tin Rougher (RO) Flotation Cell E Charge Capacity (tank volume m3): 5.13 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $51,004 $25,502 $25,502

Tin Scavenger (SC) Flotation Cell A Charge Capacity (tank volume m3): 4.99 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $50,276 $25,138 $25,138

Tin Scavenger (SC) Flotation Cell B Charge Capacity (tank volume m3): 4.99 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $50,276 $25,138 $25,138

Tin Scavenger (SC) Flotation Cell C Charge Capacity (tank volume m3): 4.99 Cost Curve Estimate ($CDN): 1,573.00 0.500 21,134.00 0.54 $50,276 $25,138 $25,138

Tin Cleaner (CL) Flotation Column A Charge Capacity (column diameter for 10 to 12 m high - m): 0.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 128,555.21 0.28 $128,127 $128,127 $128,127

16 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Cleaner (CL) Flotation Column B Charge Capacity (column diameter for 10 to 12 m high - m): 0.76 Cost Curve Estimate ($CDN): 1,573.00 1.000 128,555.21 0.28 $119,086 $119,086 $119,086

Tin Final Tails Pump Box Charge Capacity (tank volume m3): 6.75 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $10,901 $10,901 $10,901

Tin Final Tails Pump A Charge Capacity (m3 per hour of slurry): 81.04 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $12,108 $12,108 $12,108

Tin Final Tails Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 81.04 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $12,108 $0 $0

Tin Ro-Sc Concentrate Pump Box REV 02 DELETED Charge Capacity (tank volume m3): 0.78 Cost Curve Estimate ($CDN): 1,573.00 0.000 2,233.51 0.83 $1,810 $0 $0

Tin Ro-Sc Concentrate Pump A REV 02 DELETED Charge Capacity (m3 per hour of slurry): 9.31 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $8,789 $0 $0

Tin Ro-Sc Concentrate Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 9.31 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $8,789 $0 $0

Tin Ro Tail Pump Box Charge Capacity (tank volume m3): 5.52 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $9,226 $9,226 $9,226

Tin Ro Tail Pump A Charge Capacity (m3 per hour of slurry): 66.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $11,753 $11,753 $11,753

Tin Ro Tail Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 66.28 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $11,753 $0 $0

Tin Cl Tail Pump Box Charge Capacity (tank volume m3): 0.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $1,402 $1,402 $1,402

17 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Cl Tail Pump A Charge Capacity (m3 per hour of slurry): 6.85 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,397 $8,397 $8,397

Tin Cl Tail Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 6.85 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $8,397 $0 $0

Tin First Cl Conc. Pump Box Charge Capacity (tank volume m3): 0.21 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $601 $601 $601

Tin First Cl Conc. Pump A Charge Capacity (m3 per hour of slurry): 2.47 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,219 $7,219 $7,219

Tin First Cl Conc. Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 2.47 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $7,219 $0 $0

Tin Second Cl Conc. Pump Box Charge Capacity (tank volume m3): 0.21 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $601 $601 $601

Tin Second Cl Conc. Pump A Charge Capacity (m3 per hour of slurry): 2.47 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,219 $7,219 $7,219

Tin Second Cl Conc. Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 2.47 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $7,219 $0 $0

Subtotal Process Equipment Line A: (supply only) $904,440 $563,749 $563,749

10.00 Tin Gravity Separation (Ref Drw 0503-33-02)

Tin Centrifugal Gravity Separator Holding Tank Charge Capacity (tank volume m3): 27.39 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $34,852 $34,852 $34,852

Tin Centrifugal Gravity Separator Holding Tank Agitator Charge Capacity (agitator drive power Kw): 2.74 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $11,150 $11,150 $11,150

18 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Centrifugal Gravity Separator Feed Pump A Charge Capacity (m3 per hour of slurry): 16.74 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,586 $9,586 $9,586

Tin Centrifugal Gravity Separator Feed Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 16.74 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $9,586 $0 $0

Tin Centrifugal Gravity Separator Sc Pump Box Charge Capacity (tank volume m3): 1.37 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $2,903 $2,903 $2,903

Tin Centrifugal Gravity Separator Sc Feed Pump A Charge Capacity (m3 per hour of slurry): 16.46 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,562 $9,562 $9,562

Tin Centrifugal Gravity Separator Sc Feed Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 16.46 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $9,562 $0 $0

Tin Centrifugal Gravity Separator Rougher Charge Capacity (Number of Units): 2.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 52,923.00 0.42 $74,829 $74,829 $74,829

Tin Centrifugal Gravity Separator Scavenger Charge Capacity (Number of Units): 1.59 Cost Curve Estimate ($CDN): 1,573.00 1.000 52,923.00 0.42 $64,395 $64,395 $64,395

Tin Flotation Gravity Sep. Area Sump Pump Charge Capacity (m3 per hour of slurry): 17.71 Cost Curve Estimate ($CDN): 1,573.00 1.000 677.29 0.82 $7,150 $7,150 $7,150

Subtotal Process Equipment Line A: (supply only) $233,574 $214,426 $214,426

11.00 Tin Concentration Dewatering (Ref Drw: 0503-33-03)

Tin Flotation Reclaim Water Tank Charge Capacity (tank volume m3): 4.20 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $7,354 $7,354 $7,354

Tin Flotation Reclaim Pump A Charge Capacity (m3 per hour of slurry): 2.10 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,050 $7,050 $7,050

19 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Flotation Reclaim Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 2.10 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $7,050 $0 $0

Tin Concentrate Thickener Charge Capacity (equivalent diameter of settle area m): 1.64 Cost Curve Estimate ($CDN): 1,573.00 0.500 98,943.84 0.42 $121,470 $60,735 $60,735

Tin Concentration Thickener U/F Pump A Charge Capacity (m3 per hour of slurry): 0.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,438 $5,438 $5,438

Tin Concentration Thickener U/F Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 0.36 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $5,438 $0 $0

Tin Concentrate Filter Feed Tank Charge Capacity (tank volume m3): 1.46 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $3,054 $3,054 $3,054

Tin Concentrate Filter Feed Agitator Charge Capacity (agitator drive power Kw): 1.46 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $7,181 $7,181 $7,181

Tin Concentrate Filter Feed Pump A Charge Capacity (m3 per hour of slurry): 0.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,438 $5,438 $5,438

Tin Concentrate Filter Feed Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 0.36 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $5,438 $0 $0

Tin Concentrate Product Filter Charge Capacity (m2 of filtration area): 8.20 Cost Curve Estimate ($CDN): 1,573.00 0.300 200,000.00 0.11 $253,296 $75,989 $75,989

Tin Concentrate Product Filter Filtrate Receiver Charge Capacity (tank volume m3): 2.62 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $4,970 $4,970 $4,970

Tin Concentrate Product Filter Filtrate Tank Charge Capacity (tank volume m3): 0.40 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $1,040 $1,040 $1,040

20 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Concentrate Product Filter Filtrate Pump A Charge Capacity (m3 per hour of slurry): 0.20 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $4,973 $4,973 $4,973

Tin Concentrate Product Filter Filtrate Pump B REV 02 DELETED Charge Capacity (m3 per hour of slurry): 0.20 Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $4,973 $0 $0

Subtotal Process Equipment Line A: (supply only) $444,163 $183,222 $183,222

12.00 Tin Concentrate Packaging

Tin Concentrate Product Drier Charge Capacity (kg per hour of dry solids): 409.80 Cost Curve Estimate ($CDN): 1,573.00 0.300 170,665.23 0.16 $451,166 $135,350 $135,350

Tin Concentrate Product Drier Hot Oil Heater Charge Capacity (kg per hour of dry solids): 409.80 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,000.00 0.60 $73,888 $73,888 $73,888

Tin Concentrate Screw Conveyor A Charge Capacity (tonne per hour of wet solids): 1.29 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $17,821 $17,821 $17,821

Tin Concentrate Screw Conveyor B Charge Capacity (tonne per hour of wet solids): 1.29 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $17,821 $17,821 $17,821

Tin Concentrate Bucket Elevator Charge Capacity (tonne per hour of wet solids): 1.29 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $17,821 $17,821 $17,821

Tin Concentrate Storage Bin Charge Capacity (tank volume m3): 11.29 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,600.00 0.83 $49,364 $49,364 $49,364

Tin Concentrate Packaging Charge Capacity (kg per hour of dry solids): 1294.11 Cost Curve Estimate ($CDN): 1,573.00 0.200 25,737.96 0.13 $66,039 $13,208 $13,208

Tin Concentrate Drier- Off Gas Filter Charge Capacity (kg per hour of drier dry solids): 1294.11 Cost Curve Estimate ($CDN): 1,573.00 0.500 12,000.00 0.10 $24,568 $12,284 $12,284

21 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Concentrate Drier- Off Gas Fan Charge Capacity (kg per hour of drier dry solids): 1294.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 4,500.00 0.10 $9,213 $9,213 $9,213

Tin Concentrate Screw Conveyor (to chlorination) ALL PACKAGING ELEMINATED - TO USE BULK LOAD OUT Charge Capacity (tonne per hour of wet solids): 1.29 Cost Curve Estimate ($CDN): 1,573.00 0.000 16,459.14 0.31 $17,821 $0 $0

Subtotal Process Equipment Line A: (supply only) $745,522 $346,769 $346,769

13.00 Tin Concentrate Pelletizing (Ref Drw: 0503-41-01)

Tin Concentrate Mixer Charge Capacity (tonne per hour of wet solids): 1.03 Cost Curve Estimate ($CDN): 1,573.00 1.000 88,750.00 0.65 $90,506 $90,506 $90,506

Tin Concentrate Pelletizer Charge Capacity (tonne per hour of wet solids): 3.09 Cost Curve Estimate ($CDN): 1,573.00 1.000 20,000.00 0.65 $41,655 $41,655 $41,655

Tin Pellet Conveyor Charge Capacity (length of conveyor fully enclosed meters): 10.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.70 $37,382 $37,382 $37,382

Tin Pellet Screen Charge Capacity (tonne per hour solids): 3.09 Cost Curve Estimate ($CDN): 1,573.00 1.000 20,000.00 0.70 $43,954 $43,954 $43,954

Tin Pellet Fines Conveyor Charge Capacity (length of conveyor fully enclosed meters): 10.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.70 $37,382 $37,382 $37,382

Tin Pellet Dryer Feed Conveyor Charge Capacity (length of conveyor fully enclosed meters): 10.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.70 $37,382 $37,382 $37,382

Tin Pelletizer Venting Scrubber Charge Capacity (tonne per hour of wet solids): 1.03 Cost Curve Estimate ($CDN): 1,573.00 1.000 10,000.00 0.70 $10,212 $10,212 $10,212

Tin Pelletizer Venturi Tank Charge Capacity (tank volume m3): 2.51 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $4,800 $4,800 $4,800

22 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Pelletizer Venturi Tank Agitator Charge Capacity (agitator drive power Kw): 0.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $3,992 $3,992 $3,992

Tin Pelletizer Venturi Pump Charge Capacity (m3 per hour of slurry): 7.54 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,518 $8,518 $8,518

Tin Pelletizer Venturi Fan Charge Capacity (m3 per hour of slurry): 7.54 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,518 $8,518 $8,518

Tin Pellet Dryer Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 128,500.00 0.65 $120,594 $120,594 $120,594

Dry Tin Pellet Conveyor Charge Capacity (length of conveyor fully enclosed meters): 5.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.70 $23,050 $23,050 $23,050

Tin Pellet Storage Bin Charge Capacity (tank volume m3): 3.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,600.00 0.83 $19,222 $19,222 $19,222

Tin Pellet Weigh Feeder Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.65 $14,077 $14,077 $14,077

Tin Pellet Bucket Elevator Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 25,000.00 0.65 $23,462 $23,462 $23,462

Subtotal Process Equipment Line A: (supply only) $524,705 $524,705 $524,705

14.00 Tin Concentrate Chlorination (Ref Drw: 0503-41-02)

Tin Chlorination Reactor Charge Capacity (kiln volume m³): 15.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 115,000.00 0.65 $671,627 $671,627 $671,627

Chlorination Residual Quench Venturi Scrubber Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 645,000.00 0.65 $605,315 $605,315 $605,315

23 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Chlorination Residual Quench Venturi Tank Charge Capacity (tank volume m3): 4.77 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $8,173 $8,173 $8,173

Chlorination Residual Quench Venturi Pump A Charge Capacity (m3 per hour of slurry): 14.32 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,367 $9,367 $9,367

Chlorination Residual Quench Venturi Pump B Charge Capacity (m3 per hour of slurry): 14.32 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,367 $9,367 $9,367

Chlorination Residual Quench Venturi Fan A Charge Capacity (m3 per hour of slurry): 14.32 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,367 $9,367 $9,367

Chlorination Residual Quench Venturi Fan B Charge Capacity (m3 per hour of slurry): 14.32 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,367 $9,367 $9,367

Chlorination Residue Quench Tank Charge Capacity (tank volume m3): 1.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $2,432 $2,432 $2,432

Chlorination Residue Quench Agitator Charge Capacity (agitator drive power Kw): 0.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $1,190 $1,190 $1,190

Chlorination Residue Quench Pump A Charge Capacity (m3 per hour of slurry): 0.55 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,787 $5,787 $5,787

Chlorination Residue Quench Pump B Charge Capacity (m3 per hour of slurry): 0.55 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,787 $5,787 $5,787

Chlorination Gas Quench Venturi Scrubber Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 10,000.00 0.70 $9,341 $9,341 $9,341

Chlorination Gas Quench Venturi Tank Charge Capacity (tank volume m3): 2.52 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $4,809 $4,809 $4,809

24 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Chlorination Gas Quench Venturi Tank Agitator Charge Capacity (agitator drive power Kw): 0.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $3,998 $3,998 $3,998

Chlorination Gas Quench Venturi Pump A Charge Capacity (m3 per hour of slurry): 7.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,521 $8,521 $8,521

Chlorination Gas Quench Venturi Pump B Charge Capacity (m3 per hour of slurry): 7.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,521 $8,521 $8,521

Chlorination Gas Quench Venturi Fan Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 20,000.00 0.70 $18,682 $18,682 $18,682

Chlorination Off Gas Scrubber Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 25,000.00 0.70 $23,353 $23,353 $23,353

Chlorination Off Gas Tank Charge Capacity (tank volume m3): 2.52 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $4,809 $4,809 $4,809

Chlorination Off Gas Tank Agitator Charge Capacity (agitator drive power Kw): 0.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $3,998 $3,998 $3,998

Chlorination Off Gas Pump A Charge Capacity (m3 per hour of slurry): 7.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,521 $8,521 $8,521

Chlorination Off Gas Pump B Charge Capacity (m3 per hour of slurry): 7.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,521 $8,521 $8,521

Chlorination Off- Gas Aerosol Scrubber and Demister Charge Capacity (tonne per hour of solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 25,000.00 0.70 $23,353 $23,353 $23,353

Chlorination Off- Gas Aerosol Tank Charge Capacity (tank volume m3): 2.52 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $4,809 $4,809 $4,809

25 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Chlorination Off- Gas Aerosol Tank Agitator Charge Capacity (agitator drive power Kw): 0.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $3,998 $3,998 $3,998

Chlorination Off- Gas Aerosol Pump A Charge Capacity (m3 per hour of slurry): 7.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,521 $8,521 $8,521

Chlorination Off- Gas Aerosol Pump B Charge Capacity (m3 per hour of slurry): 7.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,521 $8,521 $8,521

Chlorination Off- Gas Aerosol Fan Charge Capacity (m3 per hour of slurry): 7.56 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,521 $8,521 $8,521

Subtotal Process Equipment Line A: (supply only) $1,498,576 $1,498,576 $1,498,576

15.00 Tin Chloride Solution Purification (Ref Drw: 0503-41-03)

Tin Chloride Solution Purification Tank A Charge Capacity (tank volume m3): 1.39 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $2,941 $2,941 $2,941

Tin Chloride Solution Purification Tank B Charge Capacity (tank volume m3): 1.39 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $2,941 $2,941 $2,941

Tin Chloride Solution Purification Tank C Charge Capacity (tank volume m3): 1.39 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $2,941 $2,941 $2,941

Tin Chloride Solution Purification Agitator A Charge Capacity (agitator drive power Kw): 0.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $2,264 $2,264 $2,264

Tin Chloride Solution Purification Agitator B Charge Capacity (agitator drive power Kw): 0.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $2,264 $2,264 $2,264

Tin Chloride Solution Purification Agitator C Charge Capacity (agitator drive power Kw): 0.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $2,264 $2,264 $2,264

26 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Purifications Filter Feed Tank Charge Capacity (tank volume m3): 12.54 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $18,218 $18,218 $18,218

Purifications Filter Feed Agitator Charge Capacity (agitator drive power Kw): 1.25 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $6,464 $6,464 $6,464

Purifications Filter Feed Pump A Charge Capacity (m3 per hour of slurry): 1.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $6,950 $6,950 $6,950

Purifications Filter Feed Pump B Charge Capacity (m3 per hour of slurry): 1.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $6,950 $6,950 $6,950

Tin Chloride Solution Purification Filter A Charge Capacity (m3 of dewater solids per batch): 0.43 Cost Curve Estimate ($CDN): 1,573.00 0.300 161,451.40 0.66 $92,265 $27,680 $27,680

Tin Chloride Solution Purification Filter B Charge Capacity (m3 of dewater solids per batch): 0.43 Cost Curve Estimate ($CDN): 1,573.00 0.300 161,451.40 0.66 $92,265 $27,680 $27,680

Tin Chloride Solution Purification Conveyor A Charge Capacity (tonne per hour of wet solids): 8.26 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $31,554 $31,554 $31,554

Tin Chloride Solution Purification Conveyor B Charge Capacity (tonne per hour of wet solids): 8.26 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $31,554 $31,554 $31,554

Tin Chloride Purification Residue Repulp Tank Charge Capacity (tank volume m3): 0.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $1,583 $1,583 $1,583

Tin Chloride Purification Residue Repulp Agitator Charge Capacity (agitator drive power Kw): 0.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $4,134 $4,134 $4,134

Tin Chloride Purification Residue Repulp Pump A Charge Capacity (m3 per hour of slurry): 0.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $4,555 $4,555 $4,555

27 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Chloride Purification Residue Repulp Pump B Charge Capacity (m3 per hour of slurry): 0.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $4,555 $4,555 $4,555

Subtotal Process Equipment Line A: (supply only) $316,660 $187,488 $187,488

16.00 Tin Chloride Crystallization

Tin Chloride Crystallizer Feed Tank Charge Capacity (tank volume m3): 12.54 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $18,218 $18,218 $18,218

Tin Chloride Crystallizer Feed Pump A Charge Capacity (m3 per hour of slurry): 2.09 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,044 $7,044 $7,044

Tin Chloride Crystallizer Feed Pump B Charge Capacity (m3 per hour of slurry): 2.09 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,044 $7,044 $7,044

Tin Chloride Crystallizer Feed Tank Agitator Charge Capacity (agitator drive power Kw): 1.25 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $6,464 $6,464 $6,464

Tin Chloride Crystallizer Recycle Pump A Charge Capacity (m3 per hour of slurry): 4.18 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,805 $7,805 $7,805

Tin Chloride Crystallizer Recycle Pump B Charge Capacity (m3 per hour of slurry): 4.18 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,805 $7,805 $7,805

Tin Chloride Crystallizer System (Evap and Cond) Charge Capacity (evaporation rate tonne per hour): 1.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,981,736.00 0.55 $4,358,232 $4,358,232 $4,358,232

Acid Recovery Scrubber Charge Capacity (column diameter m): 0.54 Cost Curve Estimate ($CDN): 1,573.00 1.000 45,890.00 0.83 $27,647 $27,647 $27,647

Acid Recovery Scrubber Tank Charge Capacity (tank volume m3): 14.86 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $20,982 $20,982 $20,982

28 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Acid Recovery Scrubber Tank Agitator Charge Capacity (agitator drive power Kw): 1.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $7,278 $7,278 $7,278

Acid Recovery Scrubber Pump A Charge Capacity (m3 per hour of slurry): 14.86 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,419 $9,419 $9,419

Acid Recovery Scrubber Pump B Charge Capacity (m3 per hour of slurry): 14.86 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $9,419 $9,419 $9,419

Tin Chloride Filter Feed Tank Charge Capacity (tank volume m3): 4.05 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $7,129 $7,129 $7,129

Tin Chloride Filter Feed Agitator Charge Capacity (agitator drive power Kw): 0.40 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $2,938 $2,938 $2,938

Tin Chloride Filter Feed Pump A Charge Capacity (m3 per hour of slurry): 0.67 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,958 $5,958 $5,958

Tin Chloride Filter Feed Pump B Charge Capacity (m3 per hour of slurry): 0.67 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,958 $5,958 $5,958

Tin Chloride Filtrate Tank Charge Capacity (tank volume m3): 3.40 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,162 $6,162 $6,162

Tin Chloride Filtrate Pump A Charge Capacity (m3 per hour of slurry): 0.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,805 $5,805 $5,805

Tin Chloride Filtrate Pump B Charge Capacity (m3 per hour of slurry): 0.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,805 $5,805 $5,805

Tin Chloride Filter Charge Capacity (m2 of filtration area): 5.43 Cost Curve Estimate ($CDN): 1,573.00 0.300 200,000.00 0.11 $241,871 $72,561 $72,561

29 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Chloride Filter - Filtrate Receiver Charge Capacity (tank volume m3): 4.81 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $8,224 $8,224 $8,224

Subtotal Process Equipment Line A: (supply only) $4,777,205 $4,607,895 $4,607,895

17.00 Tin Chloride Drying and Packaging (Ref Drw: 0503-41-05)

Tin Chloride Filter Cake Conveyor Charge Capacity (tonne per hour of wet solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $15,964 $15,964 $15,964

Tin Chloride Product Drier Charge Capacity (kg per hour of dry solids): 301.89 Cost Curve Estimate ($CDN): 1,573.00 0.300 170,665.23 0.16 $429,426 $128,828 $128,828

Dried Tin Chloride Conveyor Charge Capacity (tonne per hour of wet solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $15,964 $15,964 $15,964

Tin Chloride Bucket Elevator Charge Capacity (tonne per hour of wet solids): 0.91 Cost Curve Estimate ($CDN): 1,573.00 1.000 16,459.14 0.31 $15,964 $15,964 $15,964

Tin Chloride Product Bin Charge Capacity (tank volume m3): 7.90 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,600.00 0.83 $36,708 $36,708 $36,708

Tin Chloride Packaging Charge Capacity (kg per hour of dry solids): 1811.34 Cost Curve Estimate ($CDN): 1,573.00 0.200 25,737.96 0.13 $69,024 $13,805 $13,805

Tin Chloride Product Screening Charge Capacity (kg per hour of dry solids): 1811.34 Cost Curve Estimate ($CDN): 1,573.00 0.200 15,000.00 0.13 $40,227 $8,045 $8,045

Tin Chloride Packaging Dust Collector Charge Capacity (kg per hour of drier dry solids): 1811.34 Cost Curve Estimate ($CDN): 1,573.00 0.500 12,000.00 0.10 $25,409 $12,704 $12,704

Tin Chloride Packaging Dust Fan Charge Capacity (kg per hour of drier dry solids): 1811.34 Cost Curve Estimate ($CDN): 1,573.00 1.000 4,500.00 0.10 $9,528 $9,528 $9,528

30 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Tin Chloride Repulp Tank Charge Capacity (tank volume m3): 4.05 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $7,129 $7,129 $7,129

Tin Chloride Repulp Tank Agitator Charge Capacity (agitator drive power Kw): 0.40 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $2,938 $2,938 $2,938

Tin Chloride Repulp Pump A Charge Capacity (m3 per hour of slurry): 0.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $4,574 $4,574 $4,574

Tin Chloride Repulp Pump B Charge Capacity (m3 per hour of slurry): 0.11 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $4,574 $4,574 $4,574

Subtotal Process Equipment Line A: (supply only) $677,428 $276,724 $276,724

18.00 Base Metal Sulfide (BMS) Leach (Ref Drw 0503-42-01)

BMS Leach Feed Holding Tank Charge Capacity (tank volume m3): 2.65 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $5,023 $5,023 $5,023

BMS Leach Feed Holding Tank Agitator Charge Capacity (agitator drive power Kw): 0.27 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $2,189 $2,189 $2,189

BMS Leach Feed Holding Heater Charge Capacity (tank volume m3): 2.65 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $6,095 $6,095 $6,095

BMS Leach Feed Holding Pump A Charge Capacity (m3 per hour of slurry): 0.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,943 $5,943 $5,943

BMS Leach Feed Holding Pump B Charge Capacity (m3 per hour of slurry): 0.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,943 $5,943 $5,943

BMS Leach Reactor A Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 4,467.02 0.83 $73,058 $73,058 $73,058

31 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) BMS Leach Reactor B Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 4,467.02 0.83 $73,058 $73,058 $73,058

BMS Leach Reactor C Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 4,467.02 0.83 $73,058 $73,058 $73,058

BMS Leach Reactor D Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 4,467.02 0.83 $73,058 $73,058 $73,058

BMS Leach Heater A Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $27,194 $27,194 $27,194

BMS Leach Heater B Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $27,194 $27,194 $27,194

BMS Leach Heater C Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $27,194 $27,194 $27,194

BMS Leach Heater D Charge Capacity (tank volume m3): 28.99 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $27,194 $27,194 $27,194

BMS Leach Agitator A Charge Capacity (agitator drive power Kw): 2.90 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $31,517 $31,517 $31,517

BMS Leach Agitator B Charge Capacity (agitator drive power Kw): 2.90 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $31,517 $31,517 $31,517

BMS Leach Agitator C Charge Capacity (agitator drive power Kw): 2.90 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $31,517 $31,517 $31,517

BMS Leach Agitator D Charge Capacity (agitator drive power Kw): 2.90 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $31,517 $31,517 $31,517

32 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) BMS Leach Thickener Charge Capacity (equivalent diameter of settle area m): 3.18 Cost Curve Estimate ($CDN): 1,573.00 1.000 98,943.84 0.42 $160,176 $160,176 $160,176

BMS Leach Thickener U/F Pump A Charge Capacity (m3 per hour of slurry): 0.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,589 $5,589 $5,589

BMS Leach Thickener U/F Pump B Charge Capacity (m3 per hour of slurry): 0.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,589 $5,589 $5,589

BMS Leach Solution Holding Tank Charge Capacity (tank volume m3): 73.80 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $79,335 $79,335 $79,335

BMS Leach Solution Holding Heater Charge Capacity (tank volume m3): 73.80 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $48,792 $48,792 $48,792

BMS Leach Solution Holding Pump A Charge Capacity (m3 per hour of slurry): 9.22 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,776 $8,776 $8,776

BMS Leach Solution Holding Pump B Charge Capacity (m3 per hour of slurry): 9.22 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $8,776 $8,776 $8,776

BMS Leach Residue Holding Tank Charge Capacity (tank volume m3): 3.51 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,327 $6,327 $6,327

BMS Leach Residue Holding Heater Charge Capacity (tank volume m3): 3.51 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $7,253 $7,253 $7,253

BMS Leach Residue Holding Agitator Charge Capacity (agitator drive power Kw): 0.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $4,310 $4,310 $4,310

BMS Leach Residue Holding Pump A Charge Capacity (m3 per hour of slurry): 0.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,589 $5,589 $5,589

33 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) BMS Leach Residue Holding Pump B Charge Capacity (m3 per hour of slurry): 0.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,589 $5,589 $5,589

BMS Leach Area Sump Pump Charge Capacity (m3 per hour of slurry): 5.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 677.29 0.82 $2,737 $2,737 $2,737

Subtotal Process Equipment Line A: (supply only) $901,108 $901,108 $901,108

19.00 BMS Leach Residue Wash/ Chlorinator (Ref Drw 0503-42-02)

BMS Leach Residue Filter Charge Capacity (m2 of filtration area): 1.58 Cost Curve Estimate ($CDN): 1,573.00 0.500 200,000.00 0.11 $210,581 $105,291 $105,291

BMS Leach Residue Filtrate Receiver A Charge Capacity (tank volume m3): 0.50 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $1,256 $1,256 $1,256

BMS Leach Residue Filtrate Receiver B Charge Capacity (tank volume m3): 0.50 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $1,256 $1,256 $1,256

BMS Leach Residue Filtrate Receiver C Charge Capacity (tank volume m3): 0.50 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $1,256 $1,256 $1,256

BMS Filter Filtrate Holding Tank Charge Capacity (tank volume m3): 3.69 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,596 $6,596 $6,596

BMS Filter Filtrate Pump A Charge Capacity (m3 per hour of slurry): 0.46 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,631 $5,631 $5,631

BMS Filter Filtrate Pump B Charge Capacity (m3 per hour of slurry): 0.46 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,631 $5,631 $5,631

BMS Filter Wash Holding Tank Charge Capacity (tank volume m3): 1.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $2,234 $2,234 $2,234

34 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) BMS Filter Wash Pump Charge Capacity (m3 per hour of slurry): 0.32 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,341 $5,341 $5,341

BMS Leach Residue Holding Tank Charge Capacity (tank volume m3): 10.43 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $15,636 $15,636 $15,636

BMS Leach Residue Holding Tank Agitator Charge Capacity (agitator drive power Kw): 2.09 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $25,051 $25,051 $25,051

BMS Leach Residue Pump A Charge Capacity (m3 per hour of slurry): 0.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,589 $5,589 $5,589

BMS Leach Residue Pump B Charge Capacity (m3 per hour of slurry): 0.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,589 $5,589 $5,589

Chlorinator Tower Charge Capacity (column diameter m): 0.88 Cost Curve Estimate ($CDN): 1,573.00 1.000 45,890.00 0.83 $41,164 $41,164 $41,164

Ferric Chloride Solution Holding Tank Charge Capacity (tank volume m3): 28.86 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $36,399 $36,399 $36,399

Ferric Chloride Solution Pump A Charge Capacity (m3 per hour of slurry): 9.62 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,619 $17,619 $17,619

Ferric Chloride Solution Pump B Charge Capacity (m3 per hour of slurry): 9.62 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,619 $17,619 $17,619

BMS Leach Residue Repulper Charge Capacity (tonne per hour of wet solids): 0.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $4,011 $4,011 $4,011

Chlorinator Heat Exchanger Charge Capacity (m3 per hour of solution): 9.62 Cost Curve Estimate ($CDN): 1,573.00 1.000 28,686.69 0.47 $82,745 $82,745 $82,745

Subtotal Process Equipment Line A: (supply only) $491,207 $385,916 $385,916

35 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) 20.00 Oxyhydrolysis Reactor (Ref Drw 0503-42-03)

Oxyhydrolysis Filter Feed Tank Charge Capacity (tank volume m3): 3.62 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,493 $6,493 $6,493

Oxyhydrolysis Feed Pump A Charge Capacity (m3 per hour of slurry): 0.90 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $12,414 $12,414 $12,414

Oxyhydrolysis Feed Pump B Charge Capacity (m3 per hour of slurry): 0.90 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $12,414 $12,414 $12,414

Oxyhydrolysis Heat Exchanger Charge Capacity (m3 per hour of solution): 0.97 Cost Curve Estimate ($CDN): 1,573.00 1.000 28,686.69 0.47 $28,230 $28,230 $28,230

Oxyhydrolysis Reactor A Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 32,000.00 0.83 $49,602 $49,602 $49,602

Oxyhydrolysis Reactor B Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 32,000.00 0.83 $49,602 $49,602 $49,602

Oxyhydrolysis Reactor C Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 32,000.00 0.83 $49,602 $49,602 $49,602

Oxyhydrolysis Reactor D Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 32,000.00 0.83 $49,602 $49,602 $49,602

Oxyhydrolysis Reactor Heater A Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.63 $10,436 $10,436 $10,436

Oxyhydrolysis Reactor Heater B Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.63 $10,436 $10,436 $10,436

Oxyhydrolysis Reactor Heater C Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.63 $10,436 $10,436 $10,436

36 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Oxyhydrolysis Reactor Heater D Charge Capacity (tank volume m3): 1.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.63 $10,436 $10,436 $10,436

Oxyhydrolysis Reactor Agitator A Charge Capacity (agitator drive power Kw): 1.02 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $15,181 $15,181 $15,181

Oxyhydrolysis Reactor Agitator B Charge Capacity (agitator drive power Kw): 1.02 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $15,181 $15,181 $15,181

Oxyhydrolysis Reactor Agitator C Charge Capacity (agitator drive power Kw): 1.02 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $15,181 $15,181 $15,181

Oxyhydrolysis Reactor Agitator D Charge Capacity (agitator drive power Kw): 1.02 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $15,181 $15,181 $15,181

Oxyhydrolysis Reactor Heating Tower Charge Capacity (tank volume m3): 2.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.83 $13,333 $13,333 $13,333

Oxyhydrolysis Reactor Flash Cooling Tower Charge Capacity (tank volume m3): 1.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 7,500.00 0.83 $7,500 $7,500 $7,500

Oxyhydrolysis Filter Feed Tank Charge Capacity (tank volume m3): 12.39 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $18,034 $18,034 $18,034

Oxyhydrolysis Filter Feed Tank Agitator Charge Capacity (agitator drive power Kw): 1.24 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $17,414 $17,414 $17,414

Oxyhydrolysis Filer Feed Pump A Charge Capacity (m3 per hour of slurry): 2.13 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,092 $14,092 $14,092

Oxyhydrolysis Filter Feed Pump B Charge Capacity (m3 per hour of slurry): 2.13 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,092 $14,092 $14,092

37 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Oxyhydrolysis Residue Filter Charge Capacity (m3 of dewater solids per batch): 0.47 Cost Curve Estimate ($CDN): 1,573.00 0.300 161,451.40 0.66 $97,762 $29,328 $29,328

Oxyhydrolysis Dilute Acid Holding Tank Charge Capacity (tank volume m3): 12.77 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $18,502 $18,502 $18,502

Oxyhydrolysis Dilute Acid Pump A Charge Capacity (m3 per hour of slurry): 0.80 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $12,187 $12,187 $12,187

Oxyhydrolysis Dilute Acid Pump B Charge Capacity (m3 per hour of slurry): 0.80 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $12,187 $12,187 $12,187

Oxyhydrolysis Residue Repulper Charge Capacity (tonne per hour of wet solids): 0.16 Cost Curve Estimate ($CDN): 1,573.00 1.000 25,000.00 0.70 $6,900 $6,900 $6,900

Subtotal Process Equipment Line A: (supply only) $592,428 $523,995 $523,995

21.00 Leach Solution Purification (Ref Drw: 0503-42-04)

Lead Precipitation Reactor A Charge Capacity (tank volume m3): 4.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $8,019 $8,019 $8,019

Lead Precipitation Reactor B Charge Capacity (tank volume m3): 4.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $8,019 $8,019 $8,019

Lead Precipitation Reactor C Charge Capacity (tank volume m3): 4.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $8,019 $8,019 $8,019

Lead Precipitation Reactor Agitator A Charge Capacity (agitator drive power Kw): 0.47 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $8,812 $8,812 $8,812

Lead Precipitation Reactor Agitator B Charge Capacity (agitator drive power Kw): 0.47 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $8,812 $8,812 $8,812

38 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Lead Precipitation Reactor Agitator C Charge Capacity (agitator drive power Kw): 0.47 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $8,812 $8,812 $8,812

Lead Precipitation Reactor Heater A Charge Capacity (tank volume m3): 4.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $8,672 $8,672 $8,672

Lead Precipitation Reactor Heater B Charge Capacity (tank volume m3): 4.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $8,672 $8,672 $8,672

Lead Precipitation Reactor Heater C Charge Capacity (tank volume m3): 4.66 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,309.02 0.63 $8,672 $8,672 $8,672

Lead Carbonate Filter Feed Tank Charge Capacity (tank volume m3): 74.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $80,080 $80,080 $80,080

Lead Carbonate Filter Feed Tank Agitator Charge Capacity (agitator drive power Kw): 7.46 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $22,435 $22,435 $22,435

Lead Carbonate Filter Feed Pump A Charge Capacity (m3 per hour of slurry): 34.98 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $21,331 $21,331 $21,331

Lead Carbonate Filter Feed Pump B Charge Capacity (m3 per hour of slurry): 34.98 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $21,331 $21,331 $21,331

Lead Carbonate Filter Charge Capacity (m3 of dewater solids per batch): 0.05 Cost Curve Estimate ($CDN): 1,573.00 0.300 161,451.40 0.66 $20,974 $6,292 $6,292

Lead Carbonate Repulper Charge Capacity (tonne per hour of wet solids): 0.03 Cost Curve Estimate ($CDN): 1,573.00 1.000 155,000.00 0.70 $12,408 $12,408 $12,408

Lead Precipitate Holding Tank Charge Capacity (tank volume m3): 1.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $2,234 $2,234 $2,234

39 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Lead Precipitate Holding Tank Agitator Charge Capacity (agitator drive power Kw): 0.20 Cost Curve Estimate ($CDN): 1,573.00 1.000 15,000.00 0.70 $4,881 $4,881 $4,881

Lead Precipitate Pump A Charge Capacity (m3 per hour of slurry): 0.19 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $9,875 $9,875 $9,875

Lead Precipitate Pump B Charge Capacity (m3 per hour of slurry): 0.19 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $9,875 $9,875 $9,875

Copper/ Arsenic Cementation Heat Exchanger Charge Capacity (m3 per hour of solution): 9.33 Cost Curve Estimate ($CDN): 1,573.00 1.000 28,686.69 0.47 $81,574 $81,574 $81,574

Copper/ Arsenic Cementation Reactor A Charge Capacity (tank volume m3): 4.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 23,203.40 0.65 $63,440 $63,440 $63,440

Copper/ Arsenic Cementation Reactor B Charge Capacity (tank volume m3): 4.70 Cost Curve Estimate ($CDN): 1,573.00 1.000 23,203.40 0.65 $63,440 $63,440 $63,440

Copper/ Arsenic Cementation Recycle Pump Charge Capacity (m3 per hour of slurry): 9.40 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,558 $17,558 $17,558

Copper/ Arsenic Cementation Holding Tank Charge Capacity (tank volume m3): 75.19 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $80,571 $80,571 $80,571

Copper/ Arsenic Cementation Holding Tank Agitator Charge Capacity (agitator drive power Kw): 7.52 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $22,550 $22,550 $22,550

Copper/ Arsenic Pump A Charge Capacity (m3 per hour of slurry): 35.24 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $21,355 $21,355 $21,355

Copper/ Arsenic Pump B Charge Capacity (m3 per hour of slurry): 35.24 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $21,355 $21,355 $21,355

40 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Copper/ Arsenic Cement Filter Charge Capacity (m3 of dewater solids per batch): 0.02 Cost Curve Estimate ($CDN): 1,573.00 0.300 161,451.40 0.66 $11,119 $3,336 $3,336

Copper/ Arsenic Cement Repulper Charge Capacity (tonne per hour of wet solids): 0.01 Cost Curve Estimate ($CDN): 1,573.00 1.000 75,000.00 0.70 $3,932 $3,932 $3,932

Purified Leach Solution Holding Tank Charge Capacity (tank volume m3): 75.25 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $80,632 $80,632 $80,632

Purified Leach Solution Holding Pump A Charge Capacity (m3 per hour of slurry): 9.41 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,561 $17,561 $17,561

Purified Leach Solution Holding Pump B Charge Capacity (m3 per hour of slurry): 9.41 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,561 $17,561 $17,561

Subtotal Process Equipment Line A: (supply only) $784,577 $762,112 $762,112

22.00 Solvent Extraction- Liquid Contact (Ref Drw: 0503-42-05)

Solvent Extraction - Extraction Mixer / Settler A Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Extraction Mixer / Settler B Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Extraction Mixer / Settler C Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Extraction Mixer / Settler D Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Scrub Mixer / Settler A Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

41 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Solvent Extraction - Scrub Mixer / Settler B Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Scrub Mixer / Settler C Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Scrub Mixer / Settler D Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Strip Mixer / Settler A Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Strip Mixer / Settler B Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Strip Mixer / Settler C Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Strip Mixer / Settler D Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Strip Mixer / Settler E Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Strip Mixer / Settler F Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Wash Mixer / Settler A Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Solvent Extraction - Wash Mixer / Settler B Charge Capacity (mixer tank volume m3): 1.57 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $104,693 $104,693 $104,693

Subtotal Process Equipment Line A: (supply only) $1,675,093 $1,675,093 $1,675,093

42 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) 23.00 Solvent Extraction Solution Management (Ref Drw: 0503-42-06)

SX Scrub Solution Preparation Tank Charge Capacity (tank volume m3): 7.08 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $11,333 $11,333 $11,333

SX Scrub Solution Preparation Tank Agitator Charge Capacity (agitator drive power Kw): 0.71 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $4,337 $4,337 $4,337

SX Scrub Solution Preparation Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

SX Scrub Solution Preparation Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

SX Strip Solution Preparation Tank Charge Capacity (tank volume m3): 7.08 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $11,333 $11,333 $11,333

SX Strip Solution Preparation Tank Agitator Charge Capacity (agitator drive power Kw): 0.71 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $4,337 $4,337 $4,337

SX Strip Solution Preparation Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

SX Strip Solution Preparation Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

SX Wash Solution Preparation Tank Charge Capacity (tank volume m3): 28.31 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $35,813 $35,813 $35,813

SX Wash Solution Preparation Tank Agitator Charge Capacity (agitator drive power Kw): 2.83 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $11,407 $11,407 $11,407

SX Wash Solution Preparation Pump A Charge Capacity (m3 per hour of slurry): 9.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,568 $17,568 $17,568

43 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost)

SX Wash Solution Preparation Pump B Charge Capacity (m3 per hour of slurry): 9.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,568 $17,568 $17,568

SX Organic Holding Tank Charge Capacity (tank volume m3): 28.31 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $35,813 $35,813 $35,813

SX Organic Transfer Pump A Charge Capacity (m3 per hour of slurry): 9.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,568 $17,568 $17,568

SX Organic Transfer Pump B Charge Capacity (m3 per hour of slurry): 9.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,568 $17,568 $17,568

SX Crud Mixer Settler Charge Capacity (mixer tank volume m3): 0.47 Cost Curve Estimate ($CDN): 1,573.00 1.000 63,818.14 1.09 $27,880 $27,880 $27,880

SX Crud Settler Transfer Pump A Charge Capacity (m3 per hour of slurry): 5.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $16,274 $16,274 $16,274

SX Crud Settler Transfer Pump B Charge Capacity (m3 per hour of slurry): 5.63 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $16,274 $16,274 $16,274

Solvent Extraction Area Sump Pump Charge Capacity (m3 per hour of slurry): 5.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 677.29 0.82 $2,737 $2,737 $2,737

Subtotal Process Equipment Line A: (supply only) $305,040 $305,040 $305,040

24.00 Solvent Extraction Organic Recovery (Ref Drw: 0503-42-07)

Raffinate Holding Tank Charge Capacity (tank volume m3): 28.31 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $35,813 $35,813 $35,813

Raffinate Transfer Pump A Charge Capacity (m3 per hour of slurry): 9.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,568 $17,568 $17,568

44 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Raffinate Transfer Pump B Charge Capacity (m3 per hour of slurry): 9.44 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,568 $17,568 $17,568

Loaded Scrub Holding Tank Charge Capacity (tank volume m3): 7.08 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $11,333 $11,333 $11,333

Loaded Scrub Transfer Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

Loaded Scrub Transfer Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

Loaded Strip Holding Tank Charge Capacity (tank volume m3): 7.08 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $11,333 $11,333 $11,333

Loaded Strip Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

Loaded Strip Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

SX Carbon Column Strip Solution Holding Tank Charge Capacity (tank volume m3): 3.27 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $5,977 $5,977 $5,977

SX Carbon Column Strip Solution Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

SX Carbon Column Strip Solution Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

Solvent Extraction Carbon Column A Charge Capacity (tank volume m3): 5.50 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,350.26 0.83 $13,798 $13,798 $13,798

45 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Solvent Extraction Carbon Column B Charge Capacity (tank volume m3): 5.50 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,350.26 0.83 $13,798 $13,798 $13,798

Solvent Extraction Carbon Column C Charge Capacity (tank volume m3): 1.38 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,350.26 0.83 $4,366 $4,366 $4,366

Solvent Extraction Carbon Column D Charge Capacity (tank volume m3): 1.38 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,350.26 0.83 $4,366 $4,366 $4,366

Solvent Extraction Carbon Column E Charge Capacity (tank volume m3): 1.38 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,350.26 0.83 $4,366 $4,366 $4,366

Solvent Extraction Carbon Column F Charge Capacity (tank volume m3): 1.38 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,350.26 0.83 $4,366 $4,366 $4,366

Solvent Extraction Carbon Column G Charge Capacity (tank volume m3): 3.20 Cost Curve Estimate ($CDN): 1,573.00 1.000 3,350.26 0.83 $8,804 $8,804 $8,804

Subtotal Process Equipment Line A: (supply only) $239,303 $239,303 $239,303

25.00 Zinc Electrowinning (Ref Drw: 0503-43-01)

Scrub Solution Cementation Reactor Charge Capacity (tank volume m3): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 23,203.40 0.65 $40,532 $40,532 $40,532

Scrub Solution Cementation Heat Exchanger Charge Capacity (m3 per hour of solution): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 28,686.69 0.47 $42,861 $42,861 $42,861

Scrub Solution Cementation Filter Charge Capacity (m3 of dewater solids per batch): 0.00 Cost Curve Estimate ($CDN): 1,573.00 0.300 161,451.40 0.66 $1,806 $542 $542

Scrub Solution Cementation Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

46 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Scrub Solution Cementation Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

Zinc Plate Wash Tank Charge Capacity (tank volume m3): 11.23 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $16,626 $16,626 $16,626

Zinc Plate Wash Pump Charge Capacity (m3 per hour of slurry): 0.52 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $11,434 $11,434 $11,434

Electrolyte Tank Charge Capacity (tank volume m3): 56.61 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $63,663 $63,663 $63,663

Electrolyte Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

Electrolyte Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,308 $14,308 $14,308

Electrowin Cell Recycle Pump A Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $271,843 $271,843 $271,843 NUMBER OF BANKS: 19.0

Electrowin Cell Recycle Pump B Charge Capacity (m3 per hour of slurry): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $271,843 $271,843 $271,843 NUMBER OF CELL BANKS: 19.0

Electrowin Cell Recycle Heat Exchanger Charge Capacity (m3 per hour of solution): 2.36 Cost Curve Estimate ($CDN): 1,573.00 1.000 28,686.69 0.47 $814,346 $814,346 $814,346 NUMBER OF CELL BANKS: 19.0

Spent Electrolyte Holding Tank Charge Capacity (tank volume m3): 3.83 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $6,809 $6,809 $6,809

Spent Electrolyte Holding Pump A Charge Capacity (m3 per hour of slurry): 1.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $13,064 $13,064 $13,064

47 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost)

Spent Electrolyte Holding Pump B Charge Capacity (m3 per hour of slurry): 1.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $13,064 $13,064 $13,064

De-Chlorination Tower / Column Charge Capacity (column diameter m): 3.81 Cost Curve Estimate ($CDN): 1,573.00 1.000 45,890.00 0.83 $139,332 $139,332 $139,332

De-Chlorination Tower Transfer Pump A Charge Capacity (m3 per hour of slurry): 1.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $13,064 $13,064 $13,064

De-Chlorination Tower Transfer Pump B Charge Capacity (m3 per hour of slurry): 1.28 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $13,064 $13,064 $13,064

Zinc Electrowin Cell System Charge Capacity (volume of each cell bank): 8.24 Cost Curve Estimate ($CDN): 1,573.00 1.000 150,911.80 0.65 $4,028,093 $4,028,093 $4,028,093 NUMBER OF CELL BANKS: 19.0

Zinc Electrowin Overhead Crane Charge Capacity (tonne per hour of dry solids): 0.52 Cost Curve Estimate ($CDN): 1,573.00 1.000 60,000.00 0.10 $56,191 $56,191 $56,191

Subtotal Process Equipment Line A: (supply only) $5,874,865 $5,873,601 $5,873,601

26.00 Indium Sponge Cementation (Ref Drw: 0503-44-01)

Indium Cementation Reactor A Charge Capacity (tank volume m3): 14.29 Cost Curve Estimate ($CDN): 1,573.00 1.000 23,203.40 0.65 $130,739 $130,739 $130,739

Indium Cementation Reactor B Charge Capacity (tank volume m3): 14.29 Cost Curve Estimate ($CDN): 1,573.00 1.000 23,203.40 0.65 $130,739 $130,739 $130,739

Indium Cementation Heat Exchanger Charge Capacity (m3 per hour of solution): 2.38 Cost Curve Estimate ($CDN): 1,573.00 1.000 28,686.69 0.47 $43,061 $43,061 $43,061

Indium Cementation Transfer Pump A Charge Capacity (m3 per hour of slurry): 8.93 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,427 $17,427 $17,427

48 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Indium Cementation Transfer Pump B Charge Capacity (m3 per hour of slurry): 8.93 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $17,427 $17,427 $17,427

Indium Cementation Recycle Pump A Charge Capacity (m3 per hour of slurry): 2.38 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,329 $14,329 $14,329

Indium Cementation Recycle Pump B Charge Capacity (m3 per hour of slurry): 2.38 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,329 $14,329 $14,329

Indium Cementation Filter Feed Tanks Charge Capacity (tank volume m3): 76.24 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $81,504 $81,504 $81,504

Indium Cementation Filter Feed Pumps A Charge Capacity (m3 per hour of slurry): 57.18 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $22,941 $22,941 $22,941

Indium Cementation Filter Feed Pumps B Charge Capacity (m3 per hour of slurry): 57.18 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $22,941 $22,941 $22,941

Indium Cementation Filtrate Holding Tanks Charge Capacity (tank volume m3): 76.24 Cost Curve Estimate ($CDN): 1,573.00 1.000 2,233.51 0.83 $81,504 $81,504 $81,504

Indium Cementation Solution Holding Pumps A Charge Capacity (m3 per hour of slurry): 2.41 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,353 $14,353 $14,353

Indium Cementation Solution Holding Pumps B Charge Capacity (m3 per hour of slurry): 2.41 Cost Curve Estimate ($CDN): 1,573.00 1.000 12,600.00 0.15 $14,353 $14,353 $14,353

Transfer Dumpster Charge Capacity (tank volume m3): 0.06 Cost Curve Estimate ($CDN): 1,573.00 1.000 75,000.00 0.83 $7,372 $7,372 $7,372

Indium Press Sump Pump Charge Capacity (m3 per hour of slurry): 5.49 Cost Curve Estimate ($CDN): 1,573.00 1.000 677.29 0.82 $2,737 $2,737 $2,737

49 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Indium Sponge Filter Press Charge Capacity (m3 of dewater solids per batch): 0.03 Cost Curve Estimate ($CDN): 1,573.00 0.300 4,036,285.00 0.66 $401,303 $120,391 $120,391

Sponge Press and Anode Molds Charge Capacity (kg per hour of metal): 5.71 Cost Curve Estimate ($CDN): 1,573.00 1.000 65,000.00 0.25 $100,466 $100,466 $100,466

Subtotal Process Equipment Line A: (supply only) $1,117,523 $836,612 $836,612

27.00 Tailings and Wastewater Management (Ref Drw: 0503-50-XX to XX)

Cost for Refurbishment to existing Tailings Treatment Tanks: Unit Cost: 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.100 25,000.00 0.60 $212,553 $21,255 $21,255

Tailing Treatment Tank Agitator A Charge Capacity (agitator drive power Kw): 10.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $27,515 $27,515 $27,515

Tailing Treatment Tank Agitator B Charge Capacity (agitator drive power Kw): 10.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $27,515 $27,515 $27,515

Tailing Treatment Tank Agitator C Charge Capacity (agitator drive power Kw): 10.00 Cost Curve Estimate ($CDN): 1,573.00 1.000 5,520.31 0.70 $27,515 $27,515 $27,515

Tailings Thickening and Pumping REV 03 REVISED Charge Capacity ISBL (tonne per hour of solids): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.200 81,753.55 0.65 $830,796 $166,159 $166,159

Wastewater Treatment System REV 03 REVISED Charge Capacity ISBL (m3 per hour of wastewater): 177.09 Cost Curve Estimate ($CDN): 1,573.00 0.100 102,943.47 0.65 $2,977,947 $297,795 $297,795

Subtotal Process Equipment Line A: (supply only) $4,103,839 $567,753 $567,753

28.00 Process and Domestic Water Management (Ref Drw: 0503-60-XX to XX)

Process Water System REV 02 Charge Capacity ISBL (tonne per hour ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.500 25,071.09 0.65 $254,777 $127,389 $127,389

50 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Domestic Water System REV 02 Charge Capacity ISBL (tonne per hour ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.200 5,450.24 0.65 $55,386 $11,077 $11,077

Subtotal Process Equipment Line A: (supply only) $310,164 $138,466 $138,466

29.00 Utility Systems (Ref Drw: 0503-70-XX to XX)

Low Pressure Steam Boiler System (1050 kPa) NOT REQUIRED FOR CONCENTRATE PRODUCTION (USE OF HOT OIL SYSTEM FOR DRIERS) Charge Capacity (steam generation rate tonne per hour): 5.41 Cost Curve Estimate ($CDN): 1,573.00 0.500 0.00 0.65 $0 $0 $0

Oxygen Generation System Charge Capacity (ore tonne per hour): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 0.00 0.65 $0 $0 $0

Cooling Water System Charge Capacity (ore tonne per hour): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 0.00 0.60 $0 $0 $0

High Pressure Air Compressor System Charge Capacity (ore tonne per hour): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.600 25,000.00 0.60 $212,553 $127,532 $127,532

Low Pressure Air Blower System - Used cost based on refurbishment to existing units Charge Capacity (ore tonne per hour): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.100 15,000.00 0.60 $127,532 $12,753 $12,753

Chlorine Emergency Scrubber System Charge Capacity (ore tonne per hour): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 0.00 0.60 $0 $0 $0

Vacuum System Charge Capacity (ore tonne per hour): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 20,000.00 0.60 $170,042 $170,042 $170,042

Subtotal Process Equipment Line A: (supply only) $510,127 $310,327 $310,327

30.00 Reagent Systems (Ref Drw: 0503-80-XX to XX)

Copper Sulfate Charge Capacity ( tonne per hour of ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 22,528.00 0.20 $45,980 $45,980 $45,980

51 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Collector R-3894 Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 30,037.77 0.20 $61,307 $61,307 $61,307

Frother MIBC Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 23,154.60 0.20 $47,258 $47,258 $47,258

Collector PAX Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 27,535.20 0.20 $56,199 $56,199 $56,199

Depressant SSF Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 11,890.20 0.20 $24,268 $24,268 $24,268

Collector SPA Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 11,890.20 0.20 $24,268 $24,268 $24,268

Sulfuric Acid Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 31,290.00 0.20 $63,863 $63,863 $63,863

Lime Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 162,708.00 0.20 $332,087 $332,087 $332,087

Flocculent Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 93,870.00 0.20 $191,588 $191,588 $191,588

Ferric Chloride Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 1.000 0.00 0.20 $0 $0 $0

Caustic Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Hydrochloric Acid Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

52 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) Chlorine Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Sodium Carbonate Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Sodium Sulfide Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Calcium Chloride Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Diluent and SX Reagent Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Coke Handling System Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Fuel (No 2 Fuel Oil) Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Sodium Chloride Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 Cost Curve Estimate ($CDN): 1,573.00 0.000 0.00 0.20 $0 $0 $0

Subtotal Process Equipment Line A: (supply only) $800,838 $800,838 $800,838

SUBTOTAL CONCENTRATOR (1 to 12): $13,072,119 $5,015,897 $5,015,897

SUBTOTAL TIN CHLORINATION PYROMET (13 to 17): $0 $0 $0

SUBTOTAL INDIUM / ZINC HYDROMET (18-26): $0 $0 $0

SUBTOTAL TAILINGS AND WASTEWATER MANAGEMENT (27): $4,103,839 $567,753 $567,753

53 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost)

SUBTOTAL PROCESS AND DOMESTIC WATER (28): $310,164 $138,466 $138,466

SUBTOTAL UTILITIES SYSTEMS (29): $510,127 $310,327 $310,327

SUBTOTAL REAGENT SYSTEMS (30): $800,838 $800,838 $800,838

TOTAL PROCESS EQUIPMENT PURCHASE - LINE A $18,797,087 $6,833,281 $6,833,281

Line B Delivery of process equipment to site: (shipment FOB site) 0.020 $375,942 $375,942 (1% to 7% of process equipment)

Line C Installation of process equipment: (install only) 0.050 $939,854 $939,854 (5% to 20% of process equipment)

Line D Process piping materials and installation: (supply and install) 0.100 $1,879,709 $1,879,709 (7% to 35% of process equipment)

Line E Process control systems and field instrumentation: (supply and install) 0.080 $1,503,767 $1,503,767 (5% to 20% of process equipment)

Line F Power distribution, wiring and power disconnect: (supply and install) 0.250 $4,699,272 $4,699,272 (13% to 50% of process equipment)

Line G Instrumentation wiring: (supply and install) 0.017 $312,032 $312,032 (5% to 10% of process equipment)

Line H Process building, foundation, structure and services: (supply and install) 0.110 $2,067,680 $2,067,680 (based on refurbishment to existing facilities)

Line I Site infrastructure and support facilities: (supply and install) EXISTING (variable)

Line J Power Transmission to site: (supply and install) EXISTING (variable)

Line K Site works (grubbing, excavation, roads, drainage: (supply and install) EXISTING (variable)

Line L Tailing disposal: (supply and install) EXISTING

Line M Analytical / Metallurgical Laboratory Equipment (supply) $250,000 $250,000

Line N Office Furniture, Computers and Equipment (supply) $30,000 $30,000

54 of 55 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate CLIENT: Adex Mining Inc. REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost)

Line O Warehouse and Yard Management Equipment (supply) $120,000 $120,000

Line P Spare Parts for Process Equipment (supply) 0.01 $187,971 $187,971

SUBTOTAL DIRECT (Line A to P): $31,163,313 $19,199,507

Line Q Plant engineering and design: 0.0600 $1,869,799 $1,869,799 (8% to 11% of direct) Line R Procurement and contract management: 0.0059 $183,864 $183,864 (2% to 5% of direct) Line S Construction supervision and field cost: 0.0059 $183,864 $183,864 (3% to 7% of direct) Line T Plant commissioning, shake-down: 0.0080 $249,307 $249,307 (2% to 5% of direct)

SUBTOTAL OF INDIRECT (Line Q to T): $2,486,832 $2,486,832

SUBTOTAL DIRECT AND INDIRECT: $33,650,146 $21,686,339

CONTINGENCY: 15.00% $5,047,522 $3,252,951

TOTAL INSTALLATION ESTIMATE: $38,697,667 $24,939,290 (does not include underground works, mine development or site administration)

RANGE OF ESTIMATE - AACE.05 CLASS IV Study cost estimate - conceptual / preliminary flowsheet.

MINIMUM ESTIMATE (high probability of cost overrun): 10% $34,827,901 $22,445,361 MAXIMUM ESTIMATE (cost overrun minimized): 35% $52,241,851 $33,668,042

55 of 55 WORKING CAPITAL SUMMARY CASE: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity Production of Tin Concentrate and Indium-Bearing Zinc Concentrate

1) All cost are in Canadian dollars.

Plant design name plate capacity: 850.01 tonne per day of dry ore Plant availability factor: 0.90 Maximum Annual Operating Hours: 8,760.00 Annual On-line Operating Hours: 7,884.00 Annual Tonnage of Ore Processed: 279,227.63 tonne of dry solids per year

Accounts Receivable days 30 $21,453,896 $1,763,334 Payment on product delivery - terms net 30 days on receipt.

Product Inventory days 15 $21,453,896 $881,667 Delay in shipping / product in transit.

Operating Cost days 60 $1,928,000 $316,932 Salary for processing and administration only.

Initial Reagent Fill days 30 $2,953,846 $242,782 Reagent and consumables inventory on start up.

SUBTOTAL WORKING CAPITAL COST: $3,204,714

CONTINGENCY: % 0.00% $0

TOTAL WORKING CAPITAL: $3,204,714

RANGE OF ESTIMATE AT -10% TO 35% (order of magnitude cost estimate) MINIMUM OF ESTIMATE: Minus 10.00% $2,884,243 MAXIMUM OF ESTIMATE: Plus 35.00% $4,326,364

1 of 1 CAPEX Processing Cost-Curve (Order of Magnitude Estimate) CASE: B - Tin Concentrate and Hydromet Plant 850 tpd Nameplate Capacity Production of Tin Concentrate, Indium Metal and Zinc Metal CLIENT: Adex Mining Inc. PROJECT NUMBER: 6526-03 REVISION: 07 PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class IV Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost (Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost)