Geology and Cu-Ni-PGE mineralization in

the South Kawishiwi Intrusion, Duluth

Complex, Minnesota

Dean M. Peterson

Senior Vice President, Exploration

May 5, 2009

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Forward Looking Statement

No regulatory authority has approved or disapproved the information contained in this presentation. This presentation includes certain statements that may be deemed “forward looking statements”. All statements in this presentation, other than statement of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially form those in the forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors should be cautious that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

No regulatory authority has approved or disapproved the information contained in this presentation.

This presentation includes certain statements that may be deemed “forward looking statements”. All

statements in this presentation, other than statement of historical facts, that address future production,

reserve potential, exploration drilling, exploitation activities and events or developments that the

Company expects are forward-looking statements. Although the Company believes the expectations

expressed in such forward-looking statements are based on reasonable assumptions, statements are

not guarantees of future performance and actual results or developments may differ materially from

the forward-looking statements. Factors that could cause actual results to differ materially form those

in the forward-looking statements include market prices, exploitation and exploration successes,

continued availability of capital and financing, general economic, market or business conditions.

Investors should be cautious that any such statements are not guarantees of future performance and

that actual results or developments may differ materially from those projected in the forward-looking

statements. The company does not undertake to update or revise any forward-looking statements,

whether as a result of new information, future events or otherwise, save and except as may be

required by applicable securities laws.

Outline

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• Regional Geology

• South Kawishiwi Intrusion

• Crystal-rich Slurries

• Thinking Outside the Gossan

• Details on the Maturi Cu-Ni-PGE Deposit

Size Comparison of Camps/Deposits

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Mid-Continent Mantle Plume

The 1.1 billion year old Mid

Continent Rift mantle

plume was centered

on Lake Superior

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Mineral System Approach

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The mineral system approach to exploration attempts to

understand ore deposits as the final expression of multi-scale

systems encompassing the Earth that focus mass and

transfer energy to ultimately form ore deposits.

This approach to mineral exploration leads to systematic, scale-

dependent targeting models and allows for the recognition of

the largest-scale footprints of ore-forming systems.

Bedrock Geology, NE Minnesota

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Virginia Fm.

Sulfur source

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Sulfide Saturation, Where??

Gravity

Inversion

Model (State Data)

The Reason Why is Physical Process?

Mantle melts become

sulfur-saturated when

they first encounter

bedded rocks in their

140 km rise from the

mantle, the sulfidic

Virginia Fm.

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Sulfide-bearing crystal-rich magmas intrude upwards

Sulfide-free crystal-bearing magmas intrude upwards

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Basic Gravity Field Model

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Tectonics & Horizontal Magma Injection

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Exotic Inclusions in the NLM

It is physically impossible for the NLM to carry

very large, high density exotic xenoliths from

great depths to their present position at troctolite

liquid viscosities. The magma must have been

more viscous (ie., a crystal-liquid slurry)

Nonmagnetic Basalt

Biwabik Iron Fm.

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Regional Magmatic Flow Model

1. Magma ascends through a mantle feeder dike

2. Sulfide saturation occurs while magma incorporates

sedimentary rocks (Virginia Fm sulfidic argillites)

3. Rift-parallel faulting opens a sub-horizontal space (NLM)

that magma traverses to the SW along

4. Subhorizontal sill intersects an active

transform fault and magma sills out (to

NNW) to form the Spruce Road Deposit

5. Continued flow lifts the hangingwall

Anorthosite as sill-like magma fingers

traverse to the WSW

6. Much Later – The Bald Eagle Intrusion

intrudes in a “Trap Door” fashion structurally

higher than the SKI

Idealized Magma Flow Model

Figures from Peterson, 2008

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Bedrock Geology Map

A Fundamental Tenet: Describing Rocks

DESCRIPTION OF MAP

UNITS

We attempt to interpret the

magmatic history and

processes that formed the

mafic intrusions of the

Duluth Complex

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Initial Conditions

• The most critical part of analyzing and understanding

magmatic processes involves a clear and concise knowledge

of the nature of the system at the outset: when it all began !!

• The initial magmatic conditions that we think about include:

The geometry of the system;

The composition and initial state of crystallinity of the

magma;

The sequence of emplacement of the magma; and

The location of channelized magma flow and its resultant

variable ores.

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Initial Conditions, SKI

• What was the initial geometry of SKI magmas?

– Granitoid and/or locally sedimentary footwall

– Anorthosite hangingwall

– Sill-like bodies that intruded horizontally via the NLM

• What were the initial conditions of the magma?

– Troctolitic composition silicate melts (essentially Basalt)

– Phenocrysts of olivine and plagioclase (a crystal-liquid slurry)

– Initially sulfur super-saturated melts

• Therefore, contained sulfide droplets

• Sulfide droplets enriched in metals

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SKI Plagioclase Phenocryst

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Heterogeneous Troctolite

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Heterogeneous Troctolite

Textures of SKI Rocks & Ores

Back to 1st Principals

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Detailed Geology & Cross Sections

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Maturi Cross Sections: East

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Maturi Cross Sections: West

Cross Section Interpretations

We must go back to the

INITIAL CONDITIONS of the system.

The magma intruded as a sub-horizontal sill

Therefore one must rotate sections back ~24o to the horizontal!

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Now We Can Interpret The Facts

… and understand magma channelization and its effects on

ore types and their associated grades & tonnages

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Maturi Ore Deposit Model, circa 2009

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Eastern High-Grade PGE Zone

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Now in 2013, Prefeasibility Drill Holes

The 2013 Maturi Stratigraphy & Model

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The goal is to best model the

Maturi Deposit based on all

available geological evidence.

The goal is to best model the

Maturi Deposit based on all

available geological evidence.

Intrusive History Model

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Stage 1 Barren

Stage 2 Lower Grade

Stage 3 Higher Grade

Stage 1 Barren

Stage 2 Lower Grade

Stage 3 Higher Grade

Principal Component Analysis

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Sulfide

Mineralization

Interstitial

Oxide-Augite

Footwall

Contamination

Mineralogical Control on Ores

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There clearly are Geometallurgical implications of the new Geological Model

Stage 3 Mineralized Zones Stage 2 Mineralized Zones

Hole by Hole Interpretation

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@0.5% Cu cut-off From (ft.) To (ft.) Length (ft.) Cu (wt%) Ni (wt%) Au (ppm) Pt (ppm) Pd (ppm) Ag (ppm)

4032 4192 160 0.81 0.25 0.14 0.31 0.75 3.15

Distinct Stage 3 Magma Lobes

Lobe 3

Lobe 2

Lobe 1

Stage 1: Thickness of the Zone

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Stage 2, Thickness of the Zone

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Stage 3, Thickness of the Zone

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Maturi, Stage 3 Block Model

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1 Kilometer

Maturi Stage 3 Block Model, Copper

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1 Kilometer

Maturi Stage 3 Block Model, Nickel

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1 Kilometer

Maturi Stage 3 Block Model, Pt+Pd+Au

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Maturi Indicated Mineral Resources Cu Cutoff Tons Cu Ni Pt Pd Au

(%) (Mt) (%) (%) (ppm) (ppm) (ppm)

0.2 1,137 0.57 0.18 0.151 0.343 0.081

0.3 1,065 0.59 0.19 0.157 0.356 0.085

0.4 936 0.63 0.20 0.167 0.379 0.090

0.5 739 0.67 0.21 0.185 0.419 0.099

0.6 538 0.72 0.23 0.200 0.454 0.107

Maturi Inferred Mineral Resources Cu Cutoff Tons Cu Ni Pt Pd Au

(%) (Mt) (%) (%) (ppm) (ppm) (ppm)

0.2 782 0.43 0.14 0.118 0.266 0.060

0.3 542 0.51 0.17 0.140 0.320 0.072

0.4 383 0.57 0.19 0.164 0.375 0.083

0.5 256 0.63 0.20 0.197 0.443 0.098

0.6 141 0.70 0.22 0.237 0.531 0.116

Maturi Deposit, NI 43-101 Resources

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Maturi Stage 3 Indicated Mineral Resources Maturi Stage 2 Indicated Mineral Resources Cu Cutoff Tons Cu Ni Pt Pd Au Cu Cutoff Tons Cu Ni Pt Pd Au

(%) (Mt) (%) (%) (ppm) (ppm) (ppm) (%) (Mt) (%) (%) (ppm) (ppm) (ppm) 0.2 643 0.68 0.22 0.198 0.449 0.105 0.2 440 0.45 0.14 0.092 0.210 0.053

0.3 643 0.68 0.22 0.198 0.449 0.105 0.3 405 0.46 0.15 0.094 0.215 0.054

0.4 641 0.68 0.22 0.198 0.449 0.105 0.4 292 0.50 0.16 0.100 0.228 0.058

0.5 622 0.69 0.22 0.199 0.451 0.106 0.5 117 0.58 0.18 0.111 0.253 0.065

0.6 500 0.72 0.23 0.206 0.468 0.109 0.6 38 0.67 0.20 0.119 0.276 0.071

Maturi Stage 3 Inferred Mineral Resources Maturi Stage 2 Inferred Mineral Resources Cu Cutoff Tons Cu Ni Pt Pd Au Cu Cutoff Tons Cu Ni Pt Pd Au

(%) (Mt) (%) (%) (ppm) (ppm) (ppm) (%) (Mt) (%) (%) (ppm) (ppm) (ppm) 0.2 234 0.62 0.20 0.206 0.464 0.100 0.2 240 0.41 0.14 0.084 0.200 0.049

0.3 232 0.62 0.20 0.208 0.466 0.101 0.3 199 0.44 0.15 0.087 0.210 0.052

0.4 225 0.63 0.20 0.210 0.472 0.102 0.4 127 0.49 0.16 0.095 0.228 0.057

0.5 198 0.65 0.21 0.222 0.495 0.107 0.5 50 0.56 0.18 0.105 0.252 0.064

0.6 129 0.70 0.22 0.248 0.554 0.120 0.6 11 0.64 0.20 0.115 0.277 0.070

Maturi Deposit, NI 43-101 Resources

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The Duluth Metals Success Story

We had an intuitive geologic thought in 2006

east of the Maturi gossan and it seems to have

some legs via our recent resource estimate….

We had an intuitive geologic thought in 2006

east of the Maturi gossan and it seems to have

some legs via our recent resource estimate….

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Thank You