Manibridge Project

The Property

• Site of past producing mine, property consists of two claims covering the shaft, ore body and tailings of former operating mine
• Partnered with Crowflight Minerals in a 50-50% joint venture to explore the lands surrounding the past producing mine.
• The property is located 130 km southwest of Thompson and 32 km southwest of the town of Wabowden.
• Pure Nickel purchased the properties as part of the Xstrata Nickel Land Property Purchase. Xstrata retains certain rights with respect to the mining claims including (i) a 2% NSR on each property (Pure Nickel and Crowflight have the right to reacquire 1% thereof for C$1,000,000); (ii) off-take and marketing rights for all concentrate or product produced from the properties; and (iii) a onetime back-in right to 50% for any mining project with an economic threshold of 15,000,000 tonnes of resources unless such right has been previously exercised in respect of another property that was part of the Xstrata - Pure Nickel transaction.

The Past Producing Mine

The Manibridge Mine was an underground nickel mine, operated by Falconbridge Nickel Mine Ltd (now Xstrata) between 1971 and 1977. The mine had a mineral inventory of 1,409,000 tons (including 15% dilution) at 2.25% Ni, 0.27% Cu to a depth of 1250 feet and recovered grades (including smelting and refining losses) of 1.65% Ni, 0.125% Cu and 0.02% Co. The operation ran into continual problems, never reaching design production levels (250,000 t.p.y. milled and 13,700,000 lbs Ni).

The surface buildings were all removed and a comprehensive mine closure plan has been followed, site rehabilitation was completed and post closure environmental monitoring continues.

Manibridge Mine circa 1975

Crowflight Joint Venture

In 2007 Crowflight Minerals Inc. and Pure Nickel entered into a 50-50% joint venture to explore for and develop nickel deposits on properties controlled by both parties.

2008 exploration resulted in the discovery of two new zones of mineralization located within 400 metres of the past-producing ore body; confirming an extension of the deposit itself at depth. Six holes were drilled for a total of 2,496 metres. Downhole EM surveys were conducted on each drill hole. The table below summarizes results from this year's drilling program.

Photo of 2008 Drill Program

Highlights of the program include:

• Hole MN-08-01: 16.75 metres grading 1.38% Ni
• Hole MN-08-02: 5.45 metres grading 1.18% Ni
• Hole MN-08-04: 6.3 metres grading 1.37% Ni