SR1 Project

SR1 Property Map

• Property lies within the Cape Smith Belt, approximately 55 km southwest of the coastal community of Kangiqsujuaq
• Property is 45 km long by 14 km wide, covering 35,761 ha. It is comprised of 864 claims.
• Pure Nickel purchased the properties as part of the Xstrata Nickel Land Property Purchase in 2007. Xstrata retains certain rights with respect to the mining claims including (i) a 2% NSR on each property (Pure Nickel has 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.

SR1 Claim Map

Exploration:

• Exploration by Falconbridge (now Xstrata) from 2003 to 2005 included a 2,778 line kilometre of AeroTEM survey, 397 sample soil geochemical study, and a ground HLEM and Crone TEM survey. The best value obtained was from the Spirit area was Pyroxenite with 0.29 % Ni, 0.32% Cu, 0.01 ppm Au, 0.06 ppm Pt and 0.22 ppm Pd for 4.96% S
• In 2008 Pure Nickel contracted Geotech Ltd. to conduct an airborne VTEM and magnetometer survey. Operating out of Wakeham Bay, Québec, a total of 1096 line-kilometres were flown along north-south flight lines that were 300 metres apart. A number of conductive and magnetic anomalies were identified.
• In 2009 a team field checked anomalies identified by the survey. Several occurrences of disseminated sulphide mineralization were discovered in and near mafic intrusives. 141 grab samples from sites with either visible sulphides or a rusty appearance analyzed. Nickel ranged from 500 to 2000 ppm in 18 of the samples, copper from 1000 to 19300 ppm (1.93%) in 17 samples and cobalt from 75 to 175 ppm in 18 samples. Selected samples, near the northwest end of the property, returned up to 0.061 ppm platinum and 0.199 ppm palladium.