Chamber of Mines News Briefs – December 1 - 3, 2012 [Note: News headlines are hyperlinked to their stories in this document.] News ...... 1 Leadership candidates make their case ...... 1 NWT News...... 2 Diamonds blamed for GDP drop ...... 2 Resource Development and Energy News ...... 3 Trends shift in Canada’s northern mineral exploration investment ...... 3 Mining News Nuggets ...... 4 Canadian miners to face triple whammy in 2013 ...... 9 Nunavut down, NWT bounces back in latest exploration spending survey ...... 10 The need for assessment ...... 12 Safe development vital ...... 13 A known minefield ...... 14

NUNAVUT NEWS

Leadership candidates make their case Land claims beneficiaries to elect Nunavut Tunngavik Incorporated president Nunavut News/North – December 3, 2012 Jeanne Gagnon Land claims beneficiaries go to the polls to elect a leader of Nunavut Tunngavik Incorporated on Dec. 10. Eleven candidates are in the running for the position of president. Nunavut News/North published interviews with the first eight available contenders in the Nov. 18 edition of the newspaper. Platforms from the remaining three candidates are found below. Jerry Komaksiutiksak Komaksiutiksak said he believes, through collaboration and partnerships with interested parties, NTI could implement the land claims agreement a little bit better. "I would like to be one of the individuals to make a difference on behalf of my fellow beneficiaries," he said. Originally from Chesterfield Inlet, Komaksiutiksak attended high school in then completed the teacher education program in . He taught for seven years - two years in Whale Cove, three years in Rankin Inlet and two years at the Nunavut Sivuniksavut college-preparation program in Ottawa. Komaksiutiksak also worked for First Air's reservation call centre in Ottawa where he still lives. He is currently unemployed. Various social problems affect the implementation of the agreement, he said, so he wants to ensure those social problems, such as suicide, are dealt with so they can move forward. Komaksiutiksak said he also wants to create partnerships with government and establish mentorship programs. Human resources will be an obstacle he'll have to deal with, he added. Savikataaq Ford

Chamber News Briefs 1 Ford was raised in Rankin Inlet and previously worked at the Ekati Diamond mine near Yellowknife. Still a resident of the western Hudson Bay community, he works as a heavy equipment operator on the 24- km road to Agnico-Eagle Mines Ltd's Meliadine gold project. "I'd like to make a difference," said Ford. "That's what I'm hoping for is more jobs for the that was promised in the agreement. We haven't really seen that yet so I'm hoping to achieve that." The father of two, to be married on Dec. 12, said he does not foresee any obvious obstacles to achieve his goals. Cathy Towtongie Towtongie, the incumbent, said she's seeking re-election because she has done the work and NTI, under her leadership, has won a court case against the federal government and has managed to get a narwhal tusk export ban withdrawn across a number of communities. "I was accountable. I cut back the salary of the president and restructured NTI. As a result, NTI has a surplus of $7 million," she said. Towtongie assumed the NTI presidency in a December 2010 by-election. She also served as the organization's president in 2001 to 2003. Originally from Coral Harbour and now living in Rankin Inlet, Towtongie has been married for more than 30 years and is the mother to three children and four grandchildren. She said she has two goals: education and search-and-rescue across the territory. "We need to prepare Inuit for work when mining industry comes," she said. "Nunavut is not able to adequately carry out search-and-rescues right across." But the biggest obstacle to achieve her goals, she said, will be to partner with the federal and provincial governments, as well as the Canadian Northern Economic Development Agency, to improve infrastructure across the territory.

NWT NEWS

Diamonds blamed for GDP drop Lower production suggested as reason gross domestic product went down 5.1 per cent Northern News Services – December 1, 2012 Lyndsay Herman Gross domestic product in the NWT dropped 5.1 per cent in 2011, the largest decrease in Canada. "Any drop in GDP obviously affects the territory greatly," said Hughie Graham, president of the NWT Chamber of Commerce. "You're going to need to take a look at where the drop mostly comes from and I would say in 2011 it comes from the lowering of the quantity in production of diamonds." A report on GDP statistics from Statistics Canada agrees, stating NWT exports dropped 7.2 per cent in 2011 "as a result of lower diamond shipments to other countries." The report also indicates a decline in business investment by 7.8 per cent and shows the weakest increase in customer spending in Canada, at 1.2 per cent. "The decline that Stats Canada is reporting is an important reminder that we are a resource-based economy and our economic strength lies in the production of minerals and oil and gas," stated Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines. "That production is maturing and we need to renew it with more exploration and by seeing new mines built."

Chamber News Briefs 2 Diavik's transition from open-pit to underground mining was a major source of diamond production decline, according to Graham's observations and according to the Conference Board of Canada, a national independent and non-profit research organization. The organization predicts a GDP increase of five per cent in 2012, followed by a 0.7 per cent drop in 2013, and a one per cent drop in 2014. "From 2013 to 2015 (Diavik Diamond Mine has) planned reductions," said Jacqueline Paladini, an economist with the Conference Board of Canada. "There's also the Ekati mine. They're slowly winding down, so we don't expect that mine to contribute to growth. That's why we see the decline in GDP over the medium term. "On a brighter note, we do expect this declining trend will turn around more around 2015 to 2016 with the opening of several new metal mines." A Natural Resources Canada's survey of exploration companies expenditures in 2011 and 2012 shows some optimism as well, reporting a 44 per cent increase in 2012 exploration expenditures over 2011. Graham said while 2012 numbers look promising, the economic forecasts are indications of how important exploration is for the territory's economic stability. "(Exploration) is not pre-recession levels or anything, but it is up, so that's encouraging," said Graham. "We need to continue to encourage exploration because without exploration ... we don't have the next big project. We haven't had a project permitted in 10 years, so we're going to continue this boom-bust cycle that we're on. We need regulatory reform. We need to encourage exploration." The Conference Board of Canada completes economic forecasts twice per year and expects to release an updated version in 2013.

RESOURCE DEVELOPMENT AND ENERGY NEWS

Trends shift in Canada’s northern mineral exploration investment Mining News North of 60 – November 30, 2012 Natural Resources Canada’s survey of mineral exploration companies forecasts 2012 northern exploration expenditures decreasing from year-earlier levels in Nunavut and Yukon and increasing in the Northwest Territories, the NWT & Nunavut Chamber of Mines reported Nov. 27. NRCan’s latest semi‐annual report, “Exploration and Deposit Appraisal Expenditures, by Province and Territory,” finalized 2011 expenditures as the follows (note record highs in Nunavut and Yukon): • C$93.8 million in the NWT; • C$535.7 million in Nunavut; and, • C$331.7 million in Yukon. The survey also reported companies’ spending intentions for 2012 at: • C$135.5 million in the NWT, an increase of C$41.7 million (44 percent) from 2011; • C$426.5 million in Nunavut, a decrease of C$109.2 million (20 percent) from the previous year; and • C$291.7 million in Yukon, a decrease of C$40 million (12 percent) from a year earlier. In the overall Canadian context, total spending intentions for 2012 have been revised downwards to C$4.1 billion, a slight decrease of C$116 million (2 percent) from 2011. Nunavut continues to hold 4th place and the NWT 8th place in Canadian spending, while Yukon remains in 6th place. “While NRCan provided no details to explain its survey results, we can say that the good news is that mining projects in both the NWT and Nunavut continue to advance through the approvals processes,” said Chamber President Cathie Bolstad. “Nunavut reached record investment levels last year due to its

Chamber News Briefs 3 many large advanced projects and investment is still very robust. In fact, additional new projects have now entered the approvals stage.” “We are pleasantly surprised to see that the NWT is bucking the northern trend with a projected increase of 44 percent over last year,” said Bolstad. “We are cautiously optimistic that this reflects the good work being done by so many parties to improve the NWT’s investment climate: The Federal government with regulatory improvement and its Northern Projects Management Office; the territorial government to create a NWT Mineral Strategy; and our own Chamber’s work with the Akaitcho to strengthen that Aboriginal community’s support for mineral development.” NRCan’s data includes on‐mine‐site and off‐mine‐site activities, field work, overhead costs, engineering, economic and pre‐ or production feasibility studies, environment, and land access costs.

Mining News Nuggets Mining News North of 60 – November 29, 2012 Northwest Territories MANAGEMENT – Fortune Minerals Ltd. Nov. 29 said Mike Romaniuk, P.Eng. has joined the company as vice president operations, effective Nov. 19. Romaniuk brings extensive global engineering, mining and mineral processing operations and construction experience gained from more than 25 years in the sector, primarily with Xstrata Nickel and Falconbridge. He is based in Fortune’s head office in London, Ont. and will oversee development of the company’s NICO gold-cobalt-bismuth-copper project in Northwest Territories and Saskatchewan, and the Arctos anthracite metallurgical coal project in British Columbia. Both projects have already been assessed in positive definitive feasibility studies, test mined and pilot plant processed, and are now in permitting for their proposed development. Fortune President and CEO Robin Goad said, “Mike’s expertise managing complex global mining operations through the various stages of development and construction makes him a timely addition to our team as we advance toward our goal of becoming a reliable North American producer of metallurgical coal, gold and specialty metals.” Romaniuk, holds degrees in geological engineering – mineral processing from the University of Toronto and mine geology from Laurentian University. His prolific career includes senior positions in integrated mining, milling and smelting facilities in Sudbury, Ont. and the Montcalm mine in Timmins, Ont. He was also vice president and project director of the multibillion-dollar Koniambo ferronickel project in New Caledonia, which included operating centers in Canada, China, France, New Caledonia, Australia, and Malaysia. GOLD – Seabridge Gold Inc. Nov. 28 said results from the final 10 holes from the 2012 drill campaign at the Walsh Lake target of its Courageous Lake gold project in Canada's Northwest Territories confirm the strike continuity of this high-grade gold discovery. The Walsh Lake zone now has a strike length of 850 meters and remains open to the north, up dip and at depth. Nine of the final 10 holes cut significant mineralization, highlights include: 10.2 meters averaging 4 grams per metric ton gold in hole CL-238; 5.4 meters averaging 8.8 g/t gold in hole CL-241; 4.3 meters averaging 4.1 g/t gold in hole CL-242; and 11.3 meters averaging 26.2 g/t gold in CL-245. The Walsh Lake target area is about 10 kilometers (6.2 miles) south of the FAT deposit where Seabridge has developed a 6.5 million ounce proven and probable gold reserves. The north part of this target area is connected by a road network between the FAT deposit and the historical Tundra Gold Mine. Walsh Lake is believed to be a series of structural zones, parts of which are on strike with the deposits exploited in the Tundra Gold Mine. Seabridge Chairman and CEO Rudi Fronk noted that the Walsh Lake results could be economically significant to the overall project. An aggressive drilling program will begin this winter which is expected to result in initial resource estimation later in 2013.

Chamber News Briefs 4 EMPLOYMENT – Fortune Minerals Ltd. Nov. 27 reported that its human resources manager, Patrick Moloney, said he anticipates the need for 400 people to work on the mine construction for the Nico Gold-Cobalt-Bismuth-Copper Project in Northwest Territories in a recent article on mine training and employment opportunities published in the November 2012 edition of Mining North magazine. After an initial production phase requiring 270 people, Moloney said the mine expects to employ a permanent staff of 180 people for the duration of Nico’s 20-year mine life. Since 2007, three quarters of those working at the Nico camp have been First Nations people from the North. The Mackenzie Valley Review Board is currently preparing its Report of Environmental Assessment for Nico that will contain the recommendation on the project to the Minister of Aboriginal Affairs and Northern Development Canada. Once completed, the report will be placed on the public registry, pending ministerial review. REE – Avalon Rare Metals Inc. Nov. 26 reported an updated resource estimate for the Nechalacho rare earth elements deposit at Thor Lake, Northwest Territories. The estimate, prepared by Avalon geologists and independently audited by Roscoe Postle Associates Inc., is based on the assays from all drilling completed up to Aug. 27, 2012. The updated resource estimate further increases mineral resources in the Nechalacho deposit at the key measured level of confidence. The updated NI 43-101 technical report prepared by RPA, dated Aug. 25, 2011, recommended preparation of a mine plan for the Basal Zone part of the Nechalacho Deposit. This resource estimate for the Basal Zone will serve as the basis for the mine plan and reserves estimate in a feasibility study currently in preparation and scheduled for completion in the second quarter of 2013. Avalon also updated the resource estimate for the Upper Zone of the Nechalacho Deposit, although it does not form part of the mine plan in the RPA Technical Report. The updated estimate in the Basal Zone is highlighted by an increase in measured mineral resources to 10.88 million metric tons grading 1.67 percent total rare earth element oxides, 0.38 percent heavy rare earth element oxides and 22.91 percent HREO/TREO at the revised base case cut-off of US$320 NMR per metric ton, compared to C$260 NMR per metric ton used in the previous resource estimate. The revised base case cut-off reflects anticipated higher overall operating costs based on preliminary estimates of including separation and refining costs in the development model to be incorporated in the feasibility study. The increase in measured resources ensures that a high proportion of the resources applicable to the mineral reserves to be used in the feasibility study mine plan will be at the highest level of confidence. The presence of a high grade sub-zone within the Basal Zone resource is apparent when higher NMR cut-offs are applied, as was highlighted previously in July. For example, at the higher NMR cut-off of US$800 estimated combined measured and indicated mineral resources total 18.57 million metric tons of 2.19 percent TREO, 0.57 percent HREO and 25.78 percent HREO/TREO. The mine plan in the feasibility study will be designed to maximize the exploitation of higher grade resources in the early years of mining. Despite the use of a higher NMR cut-off in the base case, the base case updated resource estimate for the Basal Zone shows only a slight decrease in the total measured and indicated mineral resources to 65.83 million metric tons of 1.57 percent TREO and 21.86 percent HREO/TREO compared with 72.66 million metric tons of 1.53 percent TREO and 21.5 percent HREO/TREO reported previously for the Basal Zone in July. Nunavut GOLD/SILVER – Sabina Gold & Silver Corp. Nov. 27 provided a report on 2012 activities at Back River, along with an update on Xstrata Zinc Canada’s Hackett River project. In February, Sabina launched its biggest campaign at Back River to date. The objectives at Back River for 2012 were to continue to expand the known resources at depth and along strike, to complete infill drilling on the known deposits and to continue to look for new discoveries on the Goose, George and other claim blocks. Significant engineering and environmental work also comprised part of the work completed this year all with the goal of supporting the upcoming Back River pre-feasibility study and permitting phase. The Nunavut work program for 2012 was comprised of a significant drill program, facilitated from both camps at

Chamber News Briefs 5 Goose and George. Also, two new deep diamond drills were mobilized to Goose to test the deeper G2 Zone at Umwelt for a total of eight drill holes in the region in 2012. Significant capital projects were undertaken at both camps including construction of an all-weather airstrip. Although construction of the airstrip is not yet complete, even in its current stage of construction, it will enable a more efficient mobilization of fuel and supplies to site in 2013. Some highlights at Back River in 2012 include completing a positive preliminary economic assessment and 69,661 meters of drilling including 23,801meters of infill, 24,698 meters of extension, 14,795 meters of new target drilling and 6,367 meters of geotech drilling. Sabina also extended both the Umwelt and Llama deposits 400 meters to the south of previous drilling; identified several new opportunities to discover large open-pitable deposits; entered the permitting process by filing a project description with relevant Nunavut authorizing agencies; engaged engineering team and commenced the PFS; completed significant environmental baseline data collection to support the permitting phase and PFS; and constructed additional buildings and infrastructure at both George and Goose camps to support larger field programs and work forces in 2012 and beyond. Currently work is focused on assessing all drill data from 2012 to enable a new Back River resource calculation as well as completing a high-level strategic review of the PEA and relating trade-off studies to support the upcoming PFS. Plans for 2013 include updating the resource calculation for Back River by the end of the first quarter; conducting a field program to support the PFS and ongoing exploration efforts; completing the PFS in the third quarter; filing of a Draft Environmental Impact Statement by year-end 2013; and all the while applying fiscal responsibility to preserve the strength of the company’s balance sheet. A more detailed 2013 fieldwork plan and budget is expected to be announced early in the New Year. At Xstrata Zinc’s high-grade zinc-silver Hackett River Project located some 50 kilometers (31 miles) from Sabina’s flagship Back River gold project and is envisaged as a 10,000-20,000 metric-ton-per-day open- pit and underground operation with an expected mine life of more than 15 years. Sabina holds a significant silver production royalty on Hackett River comprising 22.5 percent of the first 190 million ounces of silver produced and 12.5 percent of all the silver produced thereafter. Xstrata Zinc’s 2012 Hackett River accomplishments include completing 51,000 meters of drilling; conducting environmental and socio-economic baseline studies (mostly completed); starting an engineering and pre-feasibility study in September (engaged Hatch Canada Ltd. ) and conducting preliminary assessment of tailings, waste rock, airstrip and new exploration camp locations. “We are continuing with our exploration activities at the Hackett River site and view the property as one of our leading potential projects in Canada,” said Neil Wardle, chief operating officer, Xstrata Zinc Canada. Pease said Sabina was pleased to see such significant progress at Hackett River, “which will help create value for Sabina shareholders through continued de-risking of our silver royalty.” Sabina’s primary assets, all located in Nunavut, consist of: the Back River gold project, currently in the pre-feasibility and permitting phase; the Wishbone claims, a vastly prospective grassroots project; and the Hackett River silver royalty, a silver production royalty on Xstrata Zinc’s Hackett River project comprising 22.5 percent of the first 190 million ounces produced and 12.5 percent of all the silver produced thereafter. Sabina had cash of C$129.1 million at Sept. 30, and plans to end the year with about C$118 million in the treasury. URANIUM – Kivalliq Energy Corp. Nov. 27 posted results from 80 diamond drill holes from within the Lac 50 Trend, including high-grade uranium assays from the J4 Zone. Discovered on July 1, the J4 zone is located about two kilometers (1.24 miles) southeast of the Lac Cinquante uranium deposit and is one of five mineralized zones discovered this year within the 252,830-acre Angilak property in Nunavut. Final results have now been reported from drilling within the Lac 50 Trend in 2012. Highlights of the assay results include: 2.42 percent U3O8, 0.25 percent copper, and 137.4 grams-per-metric-ton silver over 3.8 meters (*estimated true width) in hole 12-J4-029; 2.86 percent U3O8 and 29.2 g/t silver over 1.5 meters* in hole 12-J4-038; 3.91 percent U3O8 and 18.3 g/t silver over 0.9 meters* in hole 12-J4-028;

Chamber News Briefs 6 2.85 percent U3O8, 0.66 percent copper and 20.6 g/t silver over 1.1 meters* in hole 12-J4-062; and 0.30% U3O8 and 10.1 g/t silver over 24.1 meters* in hole 12-J4-050. Drilling at J4 intersected uranium over a strike length of 800 meters and; to a vertical depth of 383 meters, the deepest uranium intercept on the Angilak property to date. “This year’s drilling at J4 Zone has returned assay results with both high grades, and now with Hole J4-12-050, broad intervals of uranium mineralization,” said Kivalliq President Jeff Ward. “We look forward to incorporating results from this significant 2012 discovery into a revised resource estimate, scheduled for early 2013.” The J4 zone is defined by an electromagnetic conductor located 1.8 kilometers southeast of the Lac Cinquante’s Eastern Extension and about 300 meters north of the Ray Zone. Significant uranium mineralization has now been intersected along 800 meters of strike length in 49 of 63 holes drilled from 24 sites at the J4 zone. A total of 12,756 meters were drilled at J4 zone in 2012. Uranium mineralization at J4 is hosted by two sub-parallel mineralized horizons, 10 to 45 meters apart, referred to as the J4 Upper Zone and the J4 Lower Zone. These zones have been intersected at vertical depths of between 35 meters and 383 meters, the deepest uranium interval drilled on the Angilak property to date. The Ray Zone is expressed as a subtle EM conductor, parallel to J4 and located two kilometers (1.24 miles) along strike and southeast of Lac Cinquante’s Eastern Extension. In 2012, a total of 2,796 meters were drilled at the Ray zone from five sites along 310 meters of strike length and uranium mineralization was intersected in 10 of the 16 holes drilled at vertical depths between 25 meters and 129 meters. The fourth quarter of 2012 will be dedicated to initial metallurgical and engineering studies, technical analysis and resource modeling with the goal of identifying new target areas and updating the NI 43-101 mineral resource before the end of the first quarter of 2013. On Sept. 24, 2012, Kivalliq reported the completion of an aggressive exploration program, which included 38,856 meters of core and reverse circulation drilling focused on adding inferred resources and testing new mineralized target areas within the Lac 50 Trend. The Lac 50 Trend is a three-kilometer- (2 miles) wide by 15-kilometer- (9.6 miles) long southeast striking structural trend within Archean volcanic rocks adjacent to an unconformity with Proterozoic sediments of the Angikuni sub-basin. In addition to the Lac Cinquante uranium deposit, the Lac 50 Trend is host to 10 significant uranium occurrences discovered by Kivalliq since 2010, including five new uranium discoveries drilled this season. The company said its exploration work and the identification of new mineralized zones continue to validate the “district- scale” potential of the Angilak property. IRON – Advanced Explorations Inc. Nov. 26 reported encouraging results from the recently completed 2012 drill campaign at its Tuktu 2 iron project located 60 kilometers (37 miles) north of the Roche Bay iron project on the Melville Peninsula in Nunavut. This drill program was launched to validate the existence of very high-grade iron mineralization typical of deposits containing direct ship ore-type material. The drill results indicate a consistent existence of DSO material in drill core over several intersections, and the company believes that an intensive follow-up drill program of some 5,000 meters is required, along with metallurgical studies, to define a DSO resource that would support more advanced studies as to the potential of an economic DSO mining operation at Tuktu. The company’s 2012 exploration program at the Tuktu 2 Project was comprised of surface sampling and prospecting, ground magnetometer and gravity surveys and 1,536 meters of diamond drilling in 11 drill holes, four holes (12TK001-004, 413 meters) at the T2-A Prospect and seven holes (12TK005-011, 1,123 meters) at the T2-H Prospect. The most significant drill results were obtained from the Tuktu 2-H occurrence that was discovered during this summer’s prospecting and mapping program. High-grade pods of iron mineralization occur within an alteration zone ranging from 50-150 meters in width. From mapping and geophysics, the inferred strike length of the banded iron formation which hosts the mineralization is about 1,500 meters. Orientation drilling tested only 300 meters of the apparent strike. All holes intersected high-grade sections of +50 percent iron with the best intersections in hole 12TK007 with

Chamber News Briefs 7 about 59 percent iron content over 64 meters and hole 12TK007 with more than 37.5 meters of 66.3 percent iron. Delineation of shallow (<150 meters from surface) high grade iron resources (>58 percent iron) within the zone will require tighter drill spacing than used on traditional BIF program, but average depth of the holes will be substantially lower. The company anticipates initiation of the delineation drill program in the spring of next year. Drilling along the original prospect, Tuktu 2-A intersected similar style mineralization but within a narrower zone of alteration and similarly narrower lenses of high grade iron (>60 percent iron). Holes drilled immediately beneath the high-grade channel samples collected over the summer of 2012 intersected shallow zones of east-dipping mineralization associated with specular schist characterized by fine- to medium-grained specular hematite (10 percent magnetite, 90 percent hematite). All holes intersected high-grade sections of +50 percent iron with the best intersection in hole 12TK002 with 10.51 meters of 65.6 percent iron content. The high-grade lenses associated with this style of mineralization typically pinch and swell along strike. The mineralization is open along strike to the east and southeast, and the company believes there is still substantial potential for the discovery of additional high-grade iron along the 1.6 kilometers magnetic anomaly which hosts the T2-A prospect. Another showing 1.6 kilometers south of T2-A has yet to be drilled where a 62.26 percent iron surface grab sample was found at the T2-E prospect. T2-E may prove to be the strike extension of the T2-A zone as suggested by the geophysics and limited geologic exposures. A definition drill program also would further investigate this prospect. SILVER – Aura Silver Resources Inc. Nov. 26 said it has discovered a strong and newly-identified drill target for silver at the northeast end of its Greyhound project in Nunavut. The northeast Greyhound claims were staked in the late summer of 2011. This silver target has been defined through SGH geochemical analysis of surface soils completed by Activation Laboratories Ltd. of Ancaster, Ont. The new target is some 20 kilometers (12.4 miles) from the previously reported gold and silver targets close to Aura Lake. During 2011, Aura Silver conducted its first prospecting of the newer northeast claims and discovered multiple high-grade surface rock samples and also completed an extensive soil sampling grid over the northeast claims. Aura Silver geologists continue to successfully employ the deep-penetrating SGH organic geochemistry developed by Activation Laboratories Ltd. to unravel and pinpoint anomalous trends across the entire Greyhound project area. Actlab’s SGH analysis detects the organic decomposition products from bacteria and microbes that feed directly on mineral or petroleum targets and provide a forensic signature identifying the target buried at depth. SGH has been highly successful in the analysis of surficial samples prospected over potential mineral and petroleum targets. The analysis involves the testing for 162 hydrocarbon compounds in the C5-C17 carbon series range in a wide variety of sample types. The observation of a specific set of hydrocarbon classes provides a forensic signature of mineral identification related to the hydrocarbons synthesized by bacteria that are in contact with the mineral target at depth. The geochromatographic dispersion of the SGH classes in the overburden has been successful in delineating mineral targets found at more than 700 meters in depth. SGH analysis has experienced a high success rate in the past with over 900 exploration targets interpreted for a range of major mining companies to junior explorers in both the mining and petroleum industries. The northeast Greyhound SGH analysis provided compelling results and has defined a significant silver target. This target resides where no previous drilling or detailed prospecting has occurred. The target is quite broad (in the range of 500 square meters) indicating a moderate depth potential of several hundred meters. The analysis also identified a gold target but this did not bear the same high-quality attributes of the more compelling silver target. Aura Silver CEO and President Robert Boaz said, “In addition to our drill ready gold and silver targets close to Aura Lake in the southwest of the property we have now determined that mineralization at Greyhound is much more widespread than previously thought. This highlights the potential for the Greyhound project to host multiple gold/silver targets across the strike length of the Archean greenstone belt covered by our claims.” Aura Silver is currently in the process of renewing its licenses to allow for future drilling programs to proceed.

Chamber News Briefs 8 Canadian miners to face triple whammy in 2013: higher costs, lower ore grades and global uncertainty Mining.com – November 30, 2012 Cecilia Jamasmie Canadian mining companies should invest now to ensure they can fulfill future global demand for commodities even as they face combine challenges affecting the global sector, according to the latest report from Deloitte released this week. In Tracking the trends 2013, Deloitte’s fifth annual global mining report, the experts said miners need to set their direction and hold their course through turbulent times where nervous investors, governments intent on gaining a bigger slice of the resources pie, and demand uncertainty are all going to take their toll. The study adds that, in the long term, commodity prices will climb as global demand grows. “Medium to longer term, I see higher commodity prices coming,” Deloitte chairman Glenn Ives, who is also Deloitte’s mining leader for the Americas, said in a statement. According to the Deloitte report, these are the top 10 issues for the mining sector in 2013, along with some of the things companies can do to mitigate them: Higher costs: This remains the number one trend for the second year in a row. Currency volatility, high operating costs, and lower grades are affecting decisions around continued production, expansions and the delinking of corporate equity from commodity prices. To get costs under control, mining companies must pinpoint their cost drivers, automate, improve asset efficiency with analytics, improve their operating model and streamline the supply chain initiatives. Demand uncertainty: China’s deceleration of growth, combined with the widening gap between its official global demand data and observable reality, has adversely affected commodity prices and investment decisions. Rather than halting production and risking an inability to meet future demand, mining companies should consider applying game theory to enhance their scenario planning to guide their capital project decisions. Capital project deceleration: Although mining executives are hesitant to authorize new capital expenditures at a time of tightened margins and ongoing pressure to pay shareholder dividends, the report suggests the correct response may be less about freezing projects or waiting until commodity prices and government intentions settle and more about making disciplined investment decisions through such measures as project rationalization, improved capital efficiency, data analytics and project delivery quality assurance. Increased M&A volumes: As a result of limited debt financing, some mining companies are seeking to enter deals pre-emptively with partners of their choice through “proactive and rescue M&As,” with transaction volumes likely to rise into 2013 and Asian investors remaining frequent providers of development capital. To improve the odds of transactional success, the report suggests engaging in more comprehensive due diligence to assess potential partners and planning in advance for the integration. Resource nationalism: Governments around the world are exercising several forms of resource nationalism, from mining industry privatization and expropriation to windfall taxes, resource taxes and export controls, making it harder for mining companies to accurately forecast production schedules, understand long-term risk profiles or develop models to guide decision making over time. Miners need to work to strengthen their relationships with national governments, diversify their commodity mix and geographic area of focus, and demonstrate the industry’s value to local governments and citizens.

Chamber News Briefs 9 Combatting corruption: Mining companies are already adopting global transparency standards to counter the risks posed by corruption, but they will need even more responsible practices in the face of heightened regulatory scrutiny, both of themselves and their partners, suppliers, service providers, vendors, agents and intermediaries. Combatting corruption will require the adoption of strong corporate practices and procedures, including third-party relationship management, internal compliance programs, and investigation readiness. A new level of responsible behaviour: Corporate social responsibility extends beyond impact assessments and now requires meeting the expectations and demands from Non- Government Organizations (NGOs) and other relevant stakeholders, and operating with higher levels of transparency and sustainability. Mining companies will need to commit to a higher level of responsible behaviour by embedding sustainability into their internal metrics, their capital project methodologies and their negotiations with local communities, governments, NGOs and regulators. Skills shortages: While the immediate pressure on the labour force has temporarily eased in some jurisdictions as mining companies postpone projects or reduce production, the looming skills shortage in the long run remains chronic. Mining companies should tackle the skills shortage by strengthening their team’s skillset, re-training existing workers to fulfill different functions, recruiting from non-traditional labour pools, sponsoring university programs and engaging in workforce planning. Analytics to improve safety outcomes: The dangers associated with mining are on the rise, particularly as companies move to more remote and less hospitable regions. To better understand the factors that cause safety incidents, mining companies should implement predictive modeling and apply new analytical tools and technologies to existing processes to improve preventative maintenance, identify at- risk segments and improve safety outcomes. Getting the most out of emerging — and existing — technologies: Despite demonstrated willingness to innovate, many mining companies fail to leverage back-end technology such as data analytics or properly integrating disparate technology platforms following an M&A. To improve operations while reducing costs, they should revisit their IT strategies and consider investing in programmable logic controllers (PLCs), supervisory control and data acquisition (SCADA) systems, manufacturing execution systems (MES), business intelligence systems, data analytics and advanced manufacturing systems. The Deloitte report concludes that mining companies that proactively resolve these endemic issues will be better able to meet future commodity requirements despite today’s volatile conditions and are likely to increase their role in the advancement of local communities, support of undeveloped economies and growth of jobs and skilled talent around the world.

Nunavut down, NWT bounces back in latest exploration spending survey Up Here Business – No Date Up Here Business has obtained the latest, hot-off-the-press Natural Resources Canada estimates on what companies spent this year on exploration and deposit appraisal in the territories. And the results very much clash with prior expectations. In the NWT and Yukon, spending was up compared to prior estimates, while the original estimate for Nunavut was optimistic by 25% - due no doubt to Newmont Mining Corporation’s abrupt pull-out of the Kitikmeot region, announced earlier this year. Here, we’ve handily rounded up all the vital stats. ……………………………………………………… THE HARD NUMBERS THE YUKON

Chamber News Briefs 10 The original 2012 estimate: $285 million The revised 2012 estimate: $292 million Increase from original estimate: 2.5% Decrease from 2011 spending: 12% THE NWT The original 2012 estimate: $124 million The revised 2012 estimate: $136 million Increase from original estimate: 10% Increase from 2011 spending: 45% NUNAVUT The original 2012 estimate: $569 million The revised 2012 estimate: $427 million Decrease from original estimate: 25% Decrease from 2011 spending: 20% ……………………………… SEVEN-YEAR COMPARISON Here’s how the value of mineral exploration spending has fared over the past seven years. THE YUKON 2006: $106.4 million 2007: $144.7 million 2008: $134 million 2009: $90.9 million 2010: $156.9 million 2011: $332million 2012: $292 million THE NWT 2006: $176.2 million 2007: $193.7 million 2008: $147.7 million 2009: $44.1 million 2010: $81.7 million 2011: $94 million 2012: $136 million NUNAVUT 2006: $210.6 million 2007: $338 million 2008: $432.6 million 2009: $187.6 million 2010: $256.7 million

Chamber News Briefs 11 2011: $536 million 2012: $427 million ……………………………… HOW THE TERRITORIES ARE RANKING NATIONALLY THIS YEAR 1. Ontario: $982 million 2. Quebec: $800 million 3. British Columbia: $747 million 4. NUNAVUT: $427 million 5. Saskatchewan: $324 million 6. THE YUKON: $292 million 7. Newfoundland and Labrador: $182 million 8. THE NWT: $136 million 9. Manitoba: $122 million 10. Alberta: $44.5 million 11. New Brunswick: $29.6 million 12. Nova Scotia: $21.3 million TOTAL IN CANADA: $4.1 billion Together, the three territories accounted for 20.8% of Canadian mineral exploration spending this year, down 22.7% last year.

The need for assessment NWT News/North – December 3, 2012 Antoine Mountain Friends, the need for environmental impact assessments is one of the very basic necessities when a company such as the MGM Energy Corporation want to come into the North to start exploration and drilling. This company has withdrawn its application to continue its plans for horizontal drilling in the Sahtu Region because of what it chooses to call "timing." They just don't feel that this is the right time for the Sahtu Land and Water Board to ask them to reconsider the possible effects of procedures such as fracking on the water table, for instance. How this potentially dangerous use of high pressure can change the natural world in any given area and result in some mighty permanent damage is a modern global concern. Fracking is even outright outlawed in some places. From my studies here on the environment at York University, this company's pleas of bad timing is really a non-issue at best. Truth be told, the fact that MGM Energy does not want to pay for any environmental assessment at all for its planned operations in the Sahtu pretty well tells you where they are really at with this. For instance, there were some very basic issues with the new national park planned for the area across from Norman Wells, because of it being home to caribou and Dall sheep and the grizzly bear denning there. The way in which these exploration companies usually work is to spend billions lobbying in places such as Ottawa and Washington, D.C., to have their plans pushed ahead with the bare minimum of these bothersome environment assessments done.

Chamber News Briefs 12 In fact, for every dollar they spend on lobbying they receive a ridiculously high return in revenues later. Were it not for bodies such as the Sahtu Land and Water Board, an outfit such as MGM would simply apply for a land use permit directly from the federal government and go right ahead, without so much as a 'by your leave' from the local band councils, on whose land they invariably operate. As a resident of the Sahtu, I am very proud that the people of my region have seen wise enough to demand these kinds of measures. Over the last few years you could all but hear the cash registers already a-humming. At any rate, I for one am also glad that there are these sorts of checks and balances in place to help stem the tide of wanton developments on our lands. On a recent and short run down to New York City, after seeing the New Jersey shoreline and the Pennsylvania area, it became quite clear to me that in the end it is only ordinary people who can help restore their lives back to some semblance of order after a disaster such as hurricane Sandy. When even the government refuses to point to the human-made effects such as global warming, it is good for myself as a citizen to see that there are bodies such as the Sahtu Land and Water Board here ready and willing to put the brakes on these companies. The question of sustainability is a very big one these days, friends, and I much prefer to simply take the stand with nature and nothing we do as humans hellbent on living an easier life is sustainable. By and large we choose to do all we can to leave a wasted land wherever it is we go, be it in the name of war or peace. At any rate, it feels good to just lean back and be able to take a breath of fresh air from my Northern homeland.

Safe development vital NWT News/North – December 3, 2012 When is the right time to do an environmental assessment of an oil or gas project? MGM Energy insists the wrong time is at the exploration stage, before the economic basis of any potential project has been determined. That view is not shared by the Sahtu Land and Water Board, which has triggered an environmental assessment of MGM's application to drill an exploratory horizontal well on one of its Sahtu properties. Nor is it the view of a wide range of organizations that reviewed the application, from the Tulita Dene Band Council to the National Energy Board, 29 in all. The environmental assessment referral now pushes the application into that black hole known as the Mackenzie Valley Environmental Impact Review Board. That's a red tape jungle where only the most patient with deepest pockets do not fear to tread, essentially multi-national resource development companies that can withstand the organic mix of politics and science undefined by either timelines or commitment to any particular process. MGM, not surprisingly, has said thanks but no thanks and has withdrawn the application. That must have hurt, especially since Shell Canada had agreed to pick up the tab for the work had the horizontal drilling been approved. This comes on the heels of the recently granted application for the exploratory well MGM is working on this winter. Not a voice was raised in objection to the drilling, no environmental assessment requested. What's the difference between the two applications? Intervenors were more concerned about the fracking process and the territory's lack of experience with a similar project. Fracking involves cracking the rock with pressurized water or other fluids to get at the gas or oil.

Chamber News Briefs 13 Yes, fracking is the bugaboo of the oil and gas world. It has been blamed for everything from killing cows and poisoning towns' water supplies to triggering earthquakes, horror stories which may or may not be true. Yet the much touted energy independence of the United States by 2020 is greatly dependent upon fracking, so it is being done everywhere it is economically viable and the environmental damage is being managed. We are not suggesting fracking should be given the green light in the Sahtu without delay or scrutiny. But it is clear from the comments of the organizations reviewing MGM's application that what's lacking is fundamental baseline data on the potential negative effects of fracking on Sahtu lands and water. MGM admits as much, but argues such an exploratory horizontal well would provide relevant information. We agree. MGM vice-president of exploration John Hogg also acknowledged to News/North that not only is there a great need for more such information, but that it should be presented, if not researched by, independent third parties such as territorial or federal government agencies. He frankly admitted people might well suspect the credibility of industry-supplied information. We agree again. In fact, if governments wore moccasins instead of lead boots, they would view the MGM/Shell horizontal/fracking drilling proposal as a fact-finding opportunity and grant a special experimental drilling licence. The GNWT knows how critical oil and gas development is to the future of the Sahtu, the NWT and Canada, not to forget primarily Norman Wells. Territorial energy Minister David Ramsay took Sahtu MLA Norman Yakeleya and Yellowknife Centre MLA Robert Hawkins to Calgary in August on a hydraulic fracturing fact-finding mission. That's a good start. It's not enough to accept business as usual and rely on regulatory boards alone to decide the fate of development opportunities. It's time to get involved and take charge. That's what devolution is all about. NWT News/North – December 3, 2012

A known minefield Nunavut News/North – December 3, 2012 A company hoping to further explore for uranium in the Thelon Basin straddling the Nunavut/NWT border is abandoning a property due to regulatory scrutiny, but it should have been prepared to weather the storm. Uravan Minerals' CEO says an environmental review on an exploration company is too onerous - it will add too much time and, in the mining business, time is money. A year or two of consultations, reviews and reports is beyond the company's threshold. Larry Lahusen, the CEO in question, paints a picture of Uravan stepping into a minefield without being told a landmine exists. Uravan isn't new to Nunavut. The company has had high hopes of proving a substantial uranium deposit at Garry Lake for several years, at least since 2004. By 2009 Lahusen said Uravan was reconsidering its prospects due to regulatory obstacles. At the time, it was known to the company that it was proposing to do exploratory work on the calving grounds of the Beverly caribou herd, close to 250 km northwest of Baker Lake. Garry Lake consists of more than 335,553 hectares, and its effects on the caribou herd are uncertain. Actually, much remains a mystery about the herd's status.

Chamber News Briefs 14 The outcome of a population survey done this summer won't be known until at least January. The last survey, close to 18 years ago, showed an estimated 276,000 animals but field counts have indicated a decline. While Lahusen puts a priority on mining, he underestimates Inuit and Dene reliance on hunting caribou meat. The fate of the Beverly herd means a great deal to them and, in fact, the rest of the world. Mining projects have gone ahead in Nunavut: Jericho and Meadowbank, while Mary River is heading in that direction. It only takes a few to maximize jobs and contracts that Inuit can fulfil. And, as a member of the regulatory review board pointed out, despite Uravan's protests over the environmental red tape in Nunavut, the territory is reaping the rewards of enormous amounts of money sunk into exploration, an estimated $568 million this year. In a Fraser Institute survey of global mining destinations, Nunavut ranked 36th out of 93 locations in 2012, better than the NWT's 48th. While the regulatory regime stands to improve, our territory at least lacks the corrupt government, violent guerrillas and natural disasters that plague other countries around the world. Finally, uranium prices spiked to $136 per pound in 2007, but stand at under $42 per pound now. Where will prices be in five years? We don't know, but if it's high enough another company will be interested in Garry Lake, and if that company has the money and the patience maybe it will get the prize.

Chamber News Briefs 15