Geological Survey of Canada, Completed a Survey of Copper-Nickel Occurrences in the Pigeon River Area in 1935

2.276 PARDEE 010

INTRODUCTION

Standard Nickel Mines Limited own 14 contiguous non-patented

mining claims comprising of approximately 560 acres located in the south-

west quarter of Pardee Township, Thunder Bay Mining Division , Ontario.

The claims can be seen on the Ontario Department of Mines Plan No. M 1856

and are registered as follows:

TB 250808 TB 250815 TB 250809 TB 250816 TB 250810 TB 250817 TB 250811 TB 250818 TB 250812 TB 250819 TB 250813 TB 250820 TB 250814 TB 250821

The property is assessible from Thunder Bay by Highway No. 61

and Highway No. 597. This distance is approximately 45 miles.

HISTORY

The Standard Nickel Mines property is tied on to the west of the Great Lakes Nickel Limited property where a copper-nickel-precious

metal ore body of in excess of 100 million tons is at present being financed for production.

T. L. Tanton of the Geological Survey of Canada, completed a survey of copper-nickel occurrences in the Pigeon River area in 1935.

His paper G. S. C. 35-1, 1935 refers to the presence of copper-nickel sulphide mineralization on the Standard Nickel property: -2-

"In the northeast quarter of Lot 11, Con. VII, Pardee Township, a sill of diabase is exposed on a cliff. In the course of a traverse along this cliff an assistant collected a specimen of diabase containing sparsely disseminated grains of pyrrhotite and chalcopyrite. While returning to camp on this traverse he met Mr. Aho, a settler whose residence is about l 3/4 miles southwest of the above mentioned occurrence, and from him obtained a specimen of sulphide-bearing diabase, said to have been collected from the same cliff (precise locality not known). The latter specimen consisted of fresh-looking massive diabase, and contained pyrrhotite in about equal amount making up about 5^o of the volume of the rock. When tested chemically the specimen yielded a positive reaction for nickel. No mineral development work has been done at the local ity. Sofar as known the property is not privately owned. "

In 1966, a certain amount of diamond drilling was done by

Grasset Lake Mines Limited and the one deep hole encountered sulphide mineralization.

Open File No. 5028 in the Library of the Ontario Department of

Mines entitled "Geology of Devon and Pardee Townships and Stuart Locations© 1 by J. J. C. Geul was prepared in 1968. The following excerpt was taken from this report:

At the Grasset Lake property (now Standard Nickel Mines) 4 short holes with a total foot age of 904 feet and l long hole 1446 feet deep are mentioned. The deep hole was logged and basic intrusives found as follows:- -3-

O - 113 Diabase 700 - 706 Diabase 800 - 926 Coarse porphyritic gabbro with a 6 inch calcite vein carrying chalcopyrite 1161 - 1166 Diabase 1360 - 1365 Diabase 1378 - 1422 Porphyritic diabase

On investigating the work carried out by Grasset Lake Mines

which is on file with the Ontario Department of Mines, it was found that

there were 3 not 4 holes put down totalling 900 feet and one deep hole which

reached a depth of 1446 feet. In the records the core is logged as gabbro

with fine grained and coarse sections containing sparse pyrite and

pyrrhotite in places. Some of the intrusive sections are no doubt diabase

but some of the coarser porphyritic sections are debatable and may be

gabbro.

Originally the Great Lakes intrusive was mappe d as diabase by Government Geologists but in later mapping it was reclassified as anorthositic gabbro.

During the summer of 1970, J. Sugden, a geologist was retained by the company to carry out a geological mapping program on the

Standard Nickel property claims.

In the spring of 1972, a vertical diamond drill hole was put down on the eastern part of the property to a depth of 672 feet. Nothing of economic interest was encountered at this depth. -4-

REGIONAL GEOLOGY

The geology of the area surrounding the Standard Nickel property

consists of sediments of the Rove formation which have been intruded by i dykes and sills of Keewanaween diabase. This complex has subsequently

been intruded by a basic intrusive of anorthositic gabbro which is younger

in age and related to the Duluth gabbro. The basement rock consists of

the iron bearing Gunflint formation.

ECONOMIC GEOLOGY

The younger anorthositic gabbro intrusive mentioned above

has been located on the adjacent Great Lakes Nickel property and acts as

the host rock for the copper-nickel mineralizatiai that extends for several

miles. On the Great Lakes Nickel property this younger mineralized gabbro has been found intruding the older series and near the eastern end is located near the Gunflint formation at depths of over 3, 000 feet. Since intrusives of this favourable anorthositic gabbro occur adjacent to the claims of StandardNickel Mines it is conceivable that such an intrusive exists on the property. It can be either underlain or overlain by the Rove sediments or diabase.

Preliminary work completed on the Standard Nickel claims indicate that the area is underlain by the Rove formation which has been intruded by the Keewanaween diabase. The deepest hole drilled on these -5- claims to date is 1422 feet. Near the base of this hole porphyritic diabase was reported which may be related to the Duluth gabbro and part of this younger intrusive.

Since the property has not been tested to the depth of the

Gunflint formation it is not known whether or not a favourable layer of mineralized younger intrusive exists on the property. Because this younger gabbro has been found immediately adjacent to the property it is conceivable that such an intrusive also underlays the claims of Standard Nickel Mines.

RECOMMENDATIONS

1) One or two holes should be deepened to over 2, 500 feet in

order to determine the geology down to this depth. (Gunflint).

2) After completion of the above program, an assessment of the

geological information should be made by an expert on the

region, such as Dr. J. A. McCuaig. Following on Dr. McCuaig©s

recommendations, consideration should be given to deepening

a hole to a depth that will intersect the basement rock on

Gunflint formation.

3) Theestimated cost of these holes to a depth of 2, 500 feet and

making this geological assessment will amount to $15, 000. Respectfully submitted, 52A*4SWei07 2 .276 PARDEE 020

STANDARD NICKEL MINES LIMITED Pardee Township-Ontario

A geological examination and a prospecting program was carried out by the writer^ a s si ste d by Mr. Allan Speed on a 14 claim property in Pardee Township, Ontario. The field work was carried out during September 1970. The results of the geological survey are plotted on the accompanying map at a scale of l inch to 500 feet.

There were no recent picket lines available. However, the mapping was controlled adequately by means of the east-west surveyed line between Concession VJ and VII across lin- entire proper t y. Jn addition the topographic relief of the area is very prominent and air photos at a scale of l inch to 1/4 mile were used with a pocket stereo scope for control purposes.

PROPERTY

The property comprises 14 contiguous claims in Concessions

VI and VII, Pardee Township, Thunder Bay District, Ontario. These are numbered as follows:-

250B9B to 25032.1 inclusive - 14 claims

These claims are located only 41/2 miles north of the Internat ional Boundary along the Pigeon River.

The eastern boundary of this group is adjacent to the Larsen gravel road, about 9 miles westerly along this road from its junction with

Highway 61. The Larsen road intersects Highway 6l about 30 miles southerly from the city of Thunder Bay. The property of ©Great Lakes

Nickel Limited lies just east of the claim group described in this report. IONOGRAPHY

The topographic relief is more than 500 feet across the properly i^™.——^—- which consists mainly of a flat-topped mesa bordered oy precipitous cliffs with basal talus slopes rising above a flat plain at an elevation of less than l, 100 feet above sea level. The mesa is .slice-l S/ ;i number o 1 steep .linear valleys trending mainly easterly to .E. N. E.

IDI\^YIOF S. WORK

Grasset Lake Mines Limited held this property during 1965-66.

They drilled 4 vertical holes as located on the accompanying geological map. The cores are stored at the sites and the logs of these holes are indicated on the geological map. There is some remaining evidence of a series of picket lines dating from this work-period. s u CT. I

GE OJu O 3ICA L COL UMN^ P ROT EJU)Zpj (^

Keweenawan - Late Diabase Dykes Logan Diabase Sheets and Sills Animikie - Rove formation - Argillite and ureyxvacke GEOLOGY AND STRUCTURE - cont©d

The Rove sediments underlie the entire area, dipping at angles of less than 10 except where there is local disturbance near the borders of intrusives. These are mainly rather thinly-bedded argillites of fine grain varying from dark grey to black in colour. They are interbedded with paler grey to dark grey greywacke, generally thicker-bedded. Near the; eastern limit of the claims, a rusty zone within the sediments is exposed along the cliff below the diabase cap of the mesa. This rust is

Hue to oxidation of very fine: grained disseminated pyrite, apparent l y o! syngenetic origin in the sediments.

The top of the hill is covered by a diabase sheet or sill which is about 100 feet thick. This intrusion is essentially conformable with the underlying sediments. It is a typical medium grained diabase which shows a well chilled margin where exposed. Because of the overlying talus blocks of diabase relatively little of the wide spread and continuous

Rove formation is actually exposed on the property.

A total of 4 vertical diamond drill holes were put down on the property. The deepest hole was put down near the eastern edge of the property. This hole was drilled to a depth of l, 446 feet. The hole went to h. d epth of ] l 3. O in diabase with disseminated pyrite- and pyrrhotite according to the log. It then entered slates and continued to a depth of

879 feet in slates. From here it entered three other sections of diabase or gabbro with sulphide mineralization.

The linear valleys which intersect the mesa as shown on the ! goological tnap are obscured along their a^es by glacial debris and talus.

Those appear to be the surface expressions of late normal faulting, trending mainly east-northeasterly. Dip-slip displacements are probably quite small because the 100 foot thick diabase sheet is continuous across a aeries of linear valleys. The late diabase dykes have been intruded into pre-existing fractures of this type.

A careful search was made for the mineralized site noted as a nickel showing (//46) on G. S. C. Map 355A, Sheet 2-by T. L. Taillon (1935)

There is a reference to this occurren ce also in G . S . C. Paper 35-1

©©Preliminary Report, Copper-Nickel Occxirrenc.es in Pigeon River Area,

Ontario", by T. L. Tanton (page 3). Talus debris obscures much of the bedrock above the Rove formation on the south-facing slope of the mesa.

During the thirty-five years since Tanton 1 s field work, his showing may have been covered by sliding material. However, there is obviously no exposed extension of this reported occurrence.

Reference: O. D. M. Prel. Geol. Map No. P4u7"Pardee Township Stuart. Location" 1^1/4 mile. J. J. C. ©Jcul, 1967

t yf * (J U VT J.Sugden,.Sugd M. A. Toronto, Ontario Fell ow of the December 5th, l 970 Geological Assoc. of Canada -----—— ------' - S2AMSWm7 2.876 PARDEE

——————————SUMMARY v\ x -, - J ^ /y/ , "v © -. Standard Nickel Mines Limited have acquired 14 contiguous non-patented mining claims comprising approximately 560 acres located in the southwest quarter of Pardee Township. The claim group is located about 45 miles to the southwest of Thunder Bay and is accessible by means of a first class highway.

The claims are registered with the Ontario Department of Mines as follows: TB 250808 - TB 250821 inclusive.

Standard Nickel Mines claim group ties on to the west of the

Great Lakes Nickel Limited property, where a copper-nickel precious metal orebody in excess of 100, 000 tons is at present being financed for production.

Grasset Lake Mines Limited, a former owner, drilled 4 holes on the property in 1965-66 and the deepest hole encountered sulphide mineral ization. T. L. Tanton, a Government Geologist, noted copper mineralization on the property back in 1930.

The geology of the property consists of sediments of the Rove

Formation which has been intruded by diabase and related rocks.

A program of surface geological mapping has been carried out over the property by J. Sugden during 1971 and one diamond drill hole has been put down by Standard Nickel Mines Limited. This hole was drilled to a depth of 672 feet, and was completed during 1972. -2-

It is recommended that this hole and one other be deepened to

2, .500 feet to determine the geology to this depth.

The estimated cost of these holes and related work will amount to $15 f 000.

Respectfully submitted,

G. P. Thoday, P. Eng.

Toronto, Ontario.

14th November 1972 STANDARD NICKEL i 52AMSweie7 2 .276 PARDEE 040 Suite 203 * 8 King Street East Toronto l, Ontario

NEW ISSUE: This is an offering of up to but not more than 500, 000 treasury shares which will be offered on a best efforts basis. The shares will be offered by the Corporation to the public at the best price the market will permit through the medium of .jregistered security dealers acting as agents who will be paid ,; ^C"©* commissions not exceeding 257o per share, provider! that in no : ;-© x case shall the Corporation receive less than 20^ per share after \^-~ deducting the said commission.

.TJrts offering will be made for a period of not less than 90 days 1 ^following acceptance of this Prospectus by the Ontario Securities V Commission. If payments for purchase orders are not received sufficient to net the Corporation a minimum of S20, 000 within the aforesaid 90 day period, then all subscription monies will be returned to the subscribers without any deduction therefrom following the expiration of the said 90 day period. All subscription monies will be held in trust by The Royal Trust Company for payment to the Corporation or return to subscribers. If the minimum sum of |20,000.00 is raised within 90 days the offering may continue until a total of 500, 000 treasury shares have been sold to the public.

PURPOSE OF ISSUE:

The purpose of this issue is to provide funds for the carrying out of development work on the Corporation©s property in Pardee Township, Ontario. (See captions "USE OF PROCEEDS" and "PROPERTIES".)

SECONDARY OFFERING:

52,434 shares, the proceeds of which will accrue to the selling shareholders and not to the Treasury of the Corporation. (See captions "PLAN OF DISTRIBUTION" and "PROPERTIES".) These shares will only be sold upon completion of the offering.

THERE IS NO MARKET.

THESE SECURITIES ARE SPECULATIVE.

Registrar and Transfer Agent

THE ROYAL TRUST COMPANY Royal Trust Tower Toronto-Dominion Centre k Toronto l, Ontario

No Securities Commission or similar authority in Canada has in any way passed upon the merits of the securities offered hereunder and any representation to the contrary is an offence.

The date of this Prospectus is December l, 1972. 52*845*8107 2 .276 PARDEE 040C

TABLE OF CONTENTS

Page

The Corporation l

History and Business l

Properties l

(i) Location and Title l

(ii) Vendors 1-2

(iii) History of Area and Geology Z

(iv) .Work Program 2

Capitalization 3©

Description of Capital Stock 3

Dividends 3

Escrowed Shares 3 Plan of Distribution 4 Secondary Offering 4

Prior Sales 4 Purchaser©s Right of Rescission 5

Use of Proceeds 6

Remuneration of Directors and Senior Officers 7

Promoter

Interest of Management k Others in Material Transactions 7

Directors and Officers 6-7

Principal Holders of Securities 7

Auditors 8

Registrar and Transfer Agent 8

Material Contracts 8

Other Material Facts 8

Financial Statements 9-13

Certification 14 THE CORPORATION

INCORPORATION:

Standard Nickel Mines Limited (hereinafter called "the Corporation") was incorporated under Part IV of The Corporation Act of the Province of Ontario by Letters Patent dated the 23rd day of December, 1964 under the name Deerpark Petroleums Limited. By Supplementary Letters Patent dated the 16th day of July, 1969 the name was changed to Deerpark Mines Limited. By further Supplementary Letters Patent dated the 29th day of June, 1970, the name was changed to Standard Nickel Mines Limited. By Articles of Amendment dated December 8, 1971, the shares of the Corporation were changed from shares having a par value of One Dollar ^1.00) each into shares without par value. The address of the head office and principal office is Suite 203, 8 King Street East, Toronto l, Ontario. HISTORY AND BUSINESS; The Corporation was incorporated for the purpose of acquiring, exploring and developing mining properties. The first venture of the Corporation was in June 1970 when the Corporation acquired 14 unpatented mining claims situated in Pardee Township, Thunder Bay Mining Division, in the Province of Ontario (hereinafter called the "Pardee Claims").

Management implemented and carried out a program of surface and geological mapping over the Pardee Claims and in addition thereto one diamond drill hole was drilled to a depth of 672 feet at a total cost of |10, 095. No mineralization was encountered however management plans to test the property by deepening the holes to over 2500 feet (See caption "PROPERTIES-PROGRAM ")

In December 1970 at a cost of S7, 500 the Corporation acquired from Us-ca-mex Exploration Limited a 507o interest in an option agreement to purchase approximately 900 acres of mining claims in Dalet Township, Quebec, from Jacque Duval, 1193-lst Avenue, Val d©Or, Quebec. The Corporation spent a total of fy\6, 5 60 and carried out a Line cutting and geophysical program including a limited amount of diamond drilling. No positive results were obtained. The Corporation©s option on the Dalet Township claims was allowed to lapse on the recommendation of the Corporation©s engineer.

The Pardee Claims are without a known body of commercial ore and the Corporation©s program is merely exploratory searches for ore. There is no surface or underground plant or equipment of any kind on the Corporation©s properties.

PROPERTIES

PARDEE TOWNSHIP CLAIMS:

(i) Location and Title;

The Pardee Claims consist of 14 contiguous unpatented mining claims comprising approximately 560 acres located in the southwest quarter of Pardee Township, Ontario. The Pardee Claims can be located on Ontario Department of Mines Plan M 1856. These claims are recorded with the Mining Recorder, Thunder Bay Mining Division, as claims nos. T.B. 250808 to T.B. 250821, both inclusive.

The Pardee Claims are distant approximately 45 miles from Thunder Bay, Ontario, by means of first class Highway 61 and Highway 597.

(ii) Vendors;

Title to the Pardee Claims was acqiired by the Company pursuant to Agreement dated the 30th day of June, 1970, with the Vendors, three of whom are directors, namely, James A. McCuaig, Ph. D, 2.

C. Christopher, B.Se., P.Eng., and Keith Christopher, and Cheryl Paige, 3 McNicol Street, Willowdale, Ontario, and Barry Paquette, 186 Sunview, Waterloo, Ontario. The said Vendors caused the Pardee Township area to be prospected and as a result thereof staked the Pardee Claims and thereafter sold the same to the Corporation.

Tile consideration paid by the Corporation for these claims was 750,000 fully paid and non-assessable shares of the Corporation, lO^o of which shares are free and 90^o escrowed. {See caption "ESCROWED SHARES" for particulars of escrow). The vendors© shares were allotted by the Directors at the arbitrary price of 1^ per share. This price per share does not necessarily bear any relation to the actual worth of the properties or the costs to the vendors. The vendors© cost of staking and prospecting was approximately $3,000.00.

The said vendors and June McCuaig, 3769 The Boulevard, Westmount, P.Q., wife of the Vice-President, are the only persons who received a greater than 5^o interest in the Vendors© consideration.

(iii) History of Area:

The Pardee Claims are tied on to the west of the Great Lakes Nickel Limited property where a copper nickel precious metal ore body of in excess of 100 million tons is located. At the present time Great Lakes is driving an underground adit, delineating the stoping area and other work preparatory to considering production.

T. L. Tanton of the Geological Survey of Canada, completed a survey of copper nickel occurrences in the Pigeon River area in 1935. His paper G.S. C. 35-1 1935 refers to the presence of copper nickel sulphide mineralization on the Corporation©s property.

In 1966 some diamond drilling was done by Grassett Lake Mines Limited being two short holes each not over 324 feet and one deep hole to a depth of 1446 feet.

(iv) Work Program:

Preliminary work program was completed by the Corporation consisting of geological mapping and a vertical diamond drill hole was put down in the eastern part of the Pardee Claims to a depth of 672 feet. Nothing of economic interest was encountered at this depth.

On the adjacent Great Lakes Nickel property the younger mineralized gabbro has been found intruding the older series at depths of over 3000 feet. Since intrusiveB of this favourable anorthositic gabbro occur adjacent t-o the Pardee Claims it is conceivable that such intrusive exists on the Corporation©s properties.

Accordingly, management intends to implement the recommendations of its engineer, G.P. Thoday, P.Eng. and deepen one or two holes to over 2500 feet in order to determine the geology down to this depth.

The estimated cost of this work program is approximately |15,000.

Reference is made to report of G.P. Thoday, P.Eng., dated the 14th day of November, 1972, which is available for inspection during business hours at the offices of the Ontario Securities Commission, pursuant to which the foregoing program is being carried out. USE OF PROCEEDS

The estimated minimum net proceeds to be received by the Corporation from the sale of its shares is approximately $l6 > 500 after deducting the cost of this Prospectus estimated at $3 I 500. The Corporation intends to use the net proceeds to implement the recommendations of its engineer, G. P. Thoday, P.Eng. (see caption "PROPERTIES") estimated at $15 > 000. Of the S8,674.00 shown as the liabilities on the balance sheet, the sum of $7, 600.00 is owing to the Directors and to the Auditor who have agreed to subrogate their claims and not call for payment until the Company is in a position to make payment after the recommended program and cost of the issue have been provided for. Other monies which may be raised under this offering will be used to implement any further recommendations of its engineer depending on the results obtained. Excess monies form part of the general working capital of the Company and will be used for general operating expenses. Its treasury, as available, may also be used to defray programs of acquiring, staking, optioning exploring and developing other properties, either alone or in concert with others and to generally carry out exploration programs as opportunity and finances may permit. In the event that excess monies shall be used as aforesaid during the course of distribution an amendment to this prospectus will be filed.

DIRECTORS AND OFFICERS

During the past five years, the principal occupation of each of the Directors and Officers has been as indicated below:

President and IVAN CHESTER CHRISTOPHER, Consulting geologist on Director B.Se., P.Eng., his own behalf. 52 Sunnydene Crescent, President of Us-ca-mex Toronto 12, Ontario. Explorations Ltd., Director of New Picton Uranium Mines Limited, Midland Nickel Corp. Ltd.,

Vice-President JAMES AULEY McCUAIG, Ph.D., P.Eng. and Director 3769 The Boulevard, Engineer on his own behalf. Westmount, P. Q.

Secretary-Treasurer BERNARD PATRICK WICKHAM, President of Pendell and Director 132 Bessborough Drive, Boiler Limited since Toronto 17, Ontario. August l, 1965. For six months prior thereto Assistant General Manager of Metropolitan Trust Company and prior thereto for nine years Department Manager for Montreal Trust Company. Di ree! u r of Us-Ga-M ex Exploration.©; Limited. Director KEITH CHRISTOPHER, B.A. Speech Pathologist 331 Glenridge Avenue, St. Catherines, Ontario.

REMUNERATION OF DIRECTORS AND SENIOR OFFICERS

No fees or other remuneration have been paid to any director or officer.

PROMOTER

Under the definition set forth in The Securities Act, Ivan C. Christopher, is deemed to be a Promoter.

INTEREST OF MANAGEMENT AND OTH ERS IN MATERIAL TRANSACTIONS

James A. McCuaig, Ivan C. Christopher and Keith Christopher, directors of the Corporation, were vendors to the Corporation of the properties referred to under the section VENDORS and received the consideration therein set out.

The Option Agreement covering the Dalet Township Claims referred to under caption HISTORY and BUSINESS was entered into with Us-ca-mex Explorations Ltd., Ivan C. Christopher, the President and Bernard P. Wickham, the Secretary-Treasurer and also the President and Directors respectively of Us-ca-mex Explorations Ltd.

During the last fiscal year the Corporation paid I. C. Christopher Ltd. the sum of $3, 527 for providing head office and office services.

PRINCIPAL HOLDERS OF SECURITIES

as at November 30, 1972

Designation Type of Number of Percentage Name and Address of Class Ownership Shares Owned of Class

James A. McCuaig, Beneficial 3769 The Boulevard, Common and 189,251 Westmount, P.Q. Direct

June McCuaig, Beneficial 3769 The Boulevard, Common and 178,750 17^0 Westmount, P. Q. Direct 10.

STANDARD NICKEL MINES LIMITED

BALANCE SHEET October 31, 1972

Unaudited Unaudited ASSETS October 31, October 31, LIABILITIES October 31, October 31, 1972 1971 1972 1971 Current Assets Current Liabilities Cash 752 Bank-overdraft 163 Due from US-CA-MEX Explorations Limited l, 183 4.648 Accounts payable and accrued expenses 3, 511 l, 191 Loans payable 5,000 l, 183 5,400 8,674 l, 191 Mining claims and options, at cost 7, 500 7, 500 SHAREHOLDERS© EQUITY Deferred Expenditures and Other Assets, at cost Deferred exploration and administrative expenses 27,244 15,919 Capital Stock Organization expense 5.475 5. 100 Authorized 3, 000, 000 shares of no par value 32.719 21,019 Issued (note 1) l, 123, 005 shares 56,788 56.788

Deficit 24,060) 24,060)

32.728 32.728

.402 $33,919

Approved on behalf of the Board

"I.C. CHRISTOPHER" NOTES TOFINANCIAL STATEMENTS Director October 31, 197Z

"BERNARD P. WICKHAM© Director 1. Mining claims were acquired for 750, 000 shares of the company©s capital stock valued by the directors at $7, 500. 373, 005 shares were issued for cash in the amount of S 49,288.

2. Subsequent to October 31, 1972 the company has offered,by way of a prospectus,to sell up to, but not more than 500, OOOshares on a best effort basis, subject to the company receiving a minimum of S20, 000 within 90 days of the acceptance of the prospectus by the Ontario Securities Commission.

- 2 - - 3 - 11. STANDARD NICKEL MINES LIMITED

STATEMENT OF DEFICIT

Ten Months Ended Year Ended October 31, December 31, (Unaudited) 1972 1971 1971 1970 1969 1968 1967

Balance, beginning of period S24,060 $

Add: Dalet Township Option expired 7,500 7,500 Write-off of deferred exploration expenses 16,560 16,560

Balance, end of period

- 4 - - 5 - 12

STANDARD NICKEL MINES LIMITED

STATEMENT OF DEFERRED EXPLORATION AND ADMINISTRATIVE EXPENSES

Ten Months Ended Year Ended October 31, December 31, (Unaudited) 1972 1971 1971 1970 1969 1968 1967 Exploration Pardee Township, Thunder Bay Mining Division, Ontario Prospecting and geological mapping $ 703 $ S $ 9,419 $ S $ Claims expense and travel 450 . - - - Engineering fees and reports - 158 299 300 - . Diamond drilling 4, 500 - - - - Transfer fees - . - 77 -

5,653 158 299 9,796 Balance, beginning of period 10,095 9,796 9,796 - . Balance, end of period 15,748 9,954 10,095 9,796 - Dalet Township, Province of Quebec Engineering fees and reports 135 135 750 Line cuttins: - 150 150 878 . Geophysical survey - - 500 - - . Geologists© fees and reports - 2,816 2,816 300 - - - Transportation - 75 75 278 - Assays - 120 120 15 - - Field expense - 9, 088 9,088 - - - . Machine rental . 885 885 - - - - Diamond drilling . 535 535 - - - - Claims expense . 35 35 - - -

. 13,839 13,839 2,721 - Balance, beginning of year - 2,721 2,721 - - .

16, 560 16, 560 2,721 Less: Written-off to deficit - 16,560 16. 560 - -

Administrative Audit 600 200 600 400 Corporation fees and taxes 256 107 112 20 - - Legal - . 380 572 - - ^ 100 100 100 150 - ^ t and office services 2,343 3.455 3.527 226 . Share issue expense and transfer fees 361 521 612 214 ~ *" v - .-avel 923 . . - -

- 6 - - 7 - 13.

STANDARD NICKEL MINES LIMITED

Ten Months Ended October 31, Year Ended (Unaudited) December 31, 1972 1971 1971 1970 1969 1968 1967 S 4,583 $ 4,383 Balance, beginning of period 6,913 1.582 S 5 ,331 1,582 1,582 Balance, end of period 11,496 5,965 6,913 l, 582 Deferred exploration and administrative expenses

STATEMENT OF SOURCE .AND APPLICATION OF FUNDS

Ten Months Ended October 31, Year Ended (Unaudited) December 31, 1972 1971 Source of Funds 1971 1970 1969 1968 1967 Sale of shares S S 4,258 S 4,258 S52, 525 S - $ S - Application of Funds Organization expense - - Purchase of mining claims, Pardee 375 100 . Township Interest in option on mining claims, - 7,500 - Da let Township Exploration expenses 5,653 13,997 . 7,500 - Administrative expenses 4,583 4,383 14, 138 12,517 - - - 5,331 1,582 - . 10,236 18,380 19,844 29, 199 - (Decrease) Increase in working capital ( 10,236) ( 14, 122) ( 15,586) 23, 326 - Working capital (deficiency), beginning of period 2,745 18,331 18.331 ( 4.995) ( 4,995) ( 4,995) ( 4.995) (Working capital) deficiency, end of period $ 7,491 (f 4, 209) (S 2,745) (S 1 8, 331) S 4,995 $ 4,995 * 4.995

- 8 - - 9 - THE TOWNSHIP OF PEARSON TWR-M.-I857 * ' : T^ - .. ' PARDEE

DISTRICT OF ;—H B—™wfw*(Ccscr^(*T* THUNDER BAY THUNDER BAY MINING DIVISION SCALE:i-INCH^40 CHAINS LEGEND

PATENTED LAND CROWN LAND SALE LEASES LOCATED LAND LICENSE OF OCCUPATION MINING RIGHTS ONLY SURFACE RIGHTS ONLY ROADS IMPROVED ROADS KING'S HIGHWAYS RAILWAYS POWER LINES MARSH OR MUSKEG MINES tt CANCELLED c.

NOTES

400 reserve around all lakes and rivers to Dept. of Lands and Forests.

thus 1 . - '. withdrawn from staking pursuant to the provisions in of sec 34{d) of the Mirmg Act RSO I960, Chapter CD 241

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28717* 1287178 (287195 1287199 1287201 1287204

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MINNESOTA U.S,A. ; ; PUN NO.- M-1856 ONTARIO DEPARTMENT OF MINES AND NORTHERN AFFAIRS

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