Resource

The Tomichi deposit contains an Inferred mineral resource estimated at 711 million tonnes at a grade of 0.21% copper, 0.035% molybdenum, 0.017 g/t gold, 2.0 g/t silver and 0.22 g/t rhenium containing 3.3Blbs copper, 555Mlbs molybdenum, 393koz gold, 46Moz silver and 339klbs of rhenium. The resource exhibits reasonable prospects for eventual economic extraction using open pit mining methods. Table 1 shows the sensitivity of the resource, listed at a variety of cut-off grades for comparison purposes, contained inside a resource limiting pit shell that has been generated based on a copper price of $3/lb and a molybdenum price of $10/lb. The base case resource assumes a cut-off grade of 0.25% copper equivalent. The copper equivalent number only includes molybdenum and excludes gold, silver and rhenium as older drill holes were not assayed for those minerals.

SENSITIVITY OF INFERRED MINERAL RESOURCES TO CUT-OFF GRADE

Cut-off
CuEq%
Million
tonnes
Average Grade Contained Metal
    CuEq*
(%)
Cu
(%)
Mo
(%)
Au
(g/t)
Ag
(g/t)
Re
(ppm)
Cu
(Blbs)
Mo
(Mlbs)
Au
(koz)
Ag
(Moz)
Re
(klbs)
0.1 1,002 0.29 0.19 0.031 0.015 1.8 0.193 4.17 689 493 57.2 426
0.15 990 0.30 0.19 0.032 0.015 1.8 0.194 4.15 687 490 56.9 423
0.2 906 0.31 0.20 0.033 0.016 1.8 0.202 3.93 655 460 53.7 402
0.25 711 0.33 0.21 0.035 0.017 2.0 0.216 3.31 555 393 45.6 339
0.3 480 0.36 0.23 0.039 0.019 2.1 0.231 2.42 412 287 33.2 244
0.35 264 0.39 0.25 0.043 0.020 2.3 0.247 1.43 249 168 19.8 144

Notes: Limited inside $3.00/lb CuEq pit shell. Base case cut-off is 0.25% CuEq. CuEq number excludes Ag, Au, and Re. Mineral resources are not mineral reserves because the economic viability has not been demonstrated