Last updated: November 15, 2018

Project 81

PROPERTY OVERVIEW:



Location: Northern Ontario, Timmins - Cochrane Area
 
Target Commodity: Nickel-Cobalt (Ni-Co), Gold (Au), Chromium (Cr), Copper (Cu), Lead (Pb), Zinc (Zn), Silver (Ag)

 
Property Size: Patented and staked mineral rights covering an area of approximately 70,641 hectares (174,558 acres).It is one contiguous parcel of land covering all or parts of 14 townships, adjacent to the Kidd Creek Mine Complex near Timmins, Ontario including 448 claims contiguous to Block A covering approximately 7,252 hectares (17,920 acres) which were staked by the Company (see NR 11-11-24), an additional 10 claim blocks contiguous in Lucas, Duff and Tully Townships of approximately 2,137 hectares (5,280 acres) that the Company agreed to acquire from Metals Creek Resources (see NR 11-12-01) In 2012, the Company announced the acquisition of 3 additional claim blocks (12 claim units), totaling 192 hectares (474 acres) in the Kingsmill and Aubin townships that were not part of the original land purchase of the Project 81 area An additional 6 claim blocks (84 claim units) totaling 3,360 acres (1,359 hectares) were added in the Bradburn and Calder Twps contiguous to previous acquired ground in the area.

NR 2018-09-05:Noble announced that it had successfully staked 405 claim units, totalling approximately 8,536 hectares in two(2) blocks namely the Macdiarmid-Jamieson township block and the Mahaffy-Geary township block, Northern Ontario, Canada (Figure 1). The Mahaffy-Geary claim block ties onto Crawford and Aubin townships- that are part of the Company's ~70,000 hectare Project 81, and is approximately 4,855 hectares. The Macdiarmid-Jameison block staked is approximately 3,681 hectares. The claims staked were based on ongoing analysis and evaluation by Noble's geological and geophysical team whereby the areas staked have large EM & Mag conductors and structures similar to the Kingsmill Township Nickel-Cobalt deposit and the Crawford Township Nickel body Patented mineral rights covering an area of approximately 69,451 hectares (149,338 acres).It is one contiguous parcel of land covering 10 townships, adjacent to the Kidd Creek Mine Complex near Timmins, Ontario that also includes the additional 448 claims contiguous to Block A covering approximately 7,252 hectares (17,920 acres) which were staked by the Company (see NR 11-11-24) and the additional 10 claim blocks contiguous in Lucas, Duff and Tully Townships of approximately 2,137 hectares (5,280 acres) that the Company agreed to acquire from Metals Creek Resources (see NR 11-12-01)

 
Stage of Development: Early Stage Exploration
 
Current Work Program: NR 2018-11-15: PROJECT 81 - Exploration Update: Diamond Drilling Commences on Crawford Property
 
Potential: Large nickel body identified
 
Net Ownership: The Company owns the mineral rights to Project 81

 
JV/Strategic Partner: NOB is focused on seeking Joint Venture partners to further expand on all its exploration and development programs
 
Operator: Noble Mineral Exploration. ('NOB')


RELATED NEWS:


2018-11-15 PROJECT 81 - Exploration Update: Diamond Drilling Commences on Crawford Property
2018-11-06 Project 81: Exploration Update Airborne EM & MAG Survey Completed Gravity Gradiometer Final Results Received
2018-11-01 Project 81: Exploration Update -Carnegie JV Partners commences Airborne Orientation Survey
2018-10-22 Project 81: Exploration Update -Noble commences Airborne EM & MAG Survey Mahaffy, MacDiarmid & Calder Township Properties
2018-09-28 Spruce Ridge signs LOI with Private Group regarding the Crawford Township Property
2018-09-05 PROJECT 81: Exploration Update - Noble Stakes Additional Mineral Claims Contiguous to Project 81
2018-08-27 PROJECT 81: Exploration Update - CGG commences Falcon Gravity Gradiometer Survey
2018-08-01 Noble provides Cobalt Results and Private Placement
2018-07-17 Project 81: Exploration Update - Crawford Twp. Property - CARDS-Artificial Intelligence (AI) Report
2018-07-12 Project 81 - Exploration Update: CARDS-Artificial Intelligence (AI) Report
2018-07-05 Lucas Gold Deposit: Twinned Holes Assay Comparison & Exploration Potential
2018-06-27 PROJECT 81: Lucas Gold Deposit - 2018 Winter Drilling Program -- Assay Results
2018-05-17 Project 81: Exploration Update - Carniegie Twp Property Commences Epxloration. Artificial Intellignce Ananlysis Underway
2018-05-08 Noble Signs Option and Joint Venture Agreement with Spruce Ridge on Project 81 - Crawford Township Property
2018-05-03 Project 81: Exploration Update CARDS - Artificial Intelligence (AI) Technology Interpretation
2018-04-05 Project 81 : Lucas Gold Provides Update
2018-03-15 Kingsmill Nickel Deposit Contains Anomalous Cobalt; NOB to fire assay 2012 drill core for Cobalt; Additional Drill Indicated Nickel Discoveries to be tested for Cobalt
2018-03-01 Noble Updates Current Drilling Progress on the Lucas Township Gold Project; Results of Annual Meeting of Shareholders
2018-02-12 Noble Commences Diamond Drilling, Lucas Twp. Gold Project, Timmins, Ontario
2018-01-11 Project 81: 2018 Exploration Update
2017-10-02 Peat Resources Options Noble Mineral's Project 81 Dargavel Township Property
2017-09-25 Noble Signs Binding Letter of Intent for Option and Joint Venture on Crawford Township property
2017-09-18 Noble Mineral Exploration Partners with ORIX Geoscience Inc on Project 81
2017-09-14 Exploration Update: Noble Initiates High Definition Airborne Gravity Gradiometer Survey HD-AGG (TM) with Gedex Inc. on Project 81 in Timmins
2017-08-25 Noble provides exploration update, earn-in on Carnegie Township properties and private placement
2017-06-07 Balch Exploration Consulting has Mobilized the Heliborne EM/Mag Survey over Carnegie and Crawford Townships on Noble's Project 81
2017-05-24 Noble Experiments with Airborne Audio-Magnetotellurics (AMT) Geophysical Survey for target identification -- Dargavel Twp
2017-05-08 Project 81 - Noble Commissioned Airborne EM/MAG Geophysical Survey over Carnegie and Crawford Townships
2017-01-03 Noble Mineral Exploration Releases Lucas Gold Project - NI43-101 Report (Review of the 2012 Diamond Drilling Program)
2014-09-24 Noble Repays Debt through the Transfer of 50% Carbon Royalty and Block B of Project 81
2014-06-23 Noble Announces Shareholder Approval of Transfer of 50% Carbon Royalty and Block B of Project 81
2014-04-29 Noble Closes Sale of Timber and Surface Rights to Block A of Project 81 and Announces Imposition of Mining Land Taxes
2014-04-21 Noble Shareholders Approve Sale of Timber and Surface Rights to Block A of Project 81
2014-02-12 Noble Proceeds with Sale of Surface Rights to Block A of Project 81
2013-06-03 Noble Provides Update on Project 81
2013-04-03 Noble Provides Project 81 Update
2013-03-06 Noble Announces Results of Shareholders' Meeting
2012-2013 The Year in Review
2012-11-20 Noble Provides Project 81 Carbon Sequestration Update
2012-10-23 Noble Completes $1.5 Million Refinancing and Purchase of Project 81
2012-10-10 Noble Mineral Exploration Inc. Announced Refinancing of $1.5 Million Vendor-Take-Back Mortgage
2012-09-10 NOB Commissions Full Feasibility on Carbon Sequestration Modelling - Project 81 contains in excess of 500,000 tonnes/yr CO2 Capture Potential
2012-08-22 Noble Mineral Exploration Inc. Advances Carbon Sequestration Modelling, Provides Kingsmill Nickel Target Metallurgical Update on Project 81
2012-07-23 Noble Mineral Exploration Inc. Provides Exploration Update on Project 81
2012-05-30 Noble Minerals Identifies Awaruite in the Kingsmill Nickel Depost; Continues Drilling of Lucas Gold Target.
2012-05-04 Noble Mineral Exploration Inc. Announces Acquisition of Additional Claims,Kingsmill & Aubin Twps.
2012-05-04 Noble Mineral Exploration Inc. Commences Diamond Drilling on the Lucas Gold Target
2012-04-16 Noble Mineral Exploration Inc. Announces a Private Placement of Shares and Mobilization of Lucas Gold Target Drill Program
2012-04-12 Noble Mineral Exploration Inc. Announces Final Drill Results on the Kingsmill Nickel Anomaly
2012-04-02 Noble Mineral Exploration Inc. Announces IP Survey Results over the Lucas Gold Target
2012-03-29 Noble Mineral Exploration Announces the Confirmation of an Extensive Mineralized Nickel Deposit at Kingsmill
2012-03-05 ROF Confirms Extensive Width of Mineralized Nickel Body at Kingsmill
2012-02-28 ROF Intersects 502.6m of 0.25% Ni in 2nd Drill Hole at Kingsmill, Project 81 (Drill Hole terminated in mineralization)
2012-02-21 ROF Intersects 437.6m of 0.28% Ni at Kingsmill, Project 81
2012-02-06 ROF Receives Final Heliborne Magnetic Geophysical Interpretation over the Kingsmill Anomaly
2012-01-23 ROF Commences Drilling on the Kingsmill Nickel Target
2012-01-17 ROF Signs Memorandum of Understanding with First Nations
2012-01-12 ROF Receives Preliminary Heliborne Geophysical Results and Signs Drill Contract
2011-12-05 Ring of Fire Resources Inc. Reports Additional Historic Results from Lucas Township Primary Gold Target, Project 81
2011-12-01 Ring of Fire Resources Inc. Reports Historic Results from Lucas Township Primary Gold Target, Project 81
2011-11-30 Ring of Fire Resources Inc. Acquires Mineral Claims in Lucas, Duff & Tully Townships, Timmins, Ontario from Metals Creek Resources
2011-11-24 Ring of Fire Resources Inc. Stakes Potential Faulted Extension of its Kingsmill Nickel target - Project 81
2011-11-15 Ring of Fire Announces Commencement of Airborne Geophysical Survery - Project 81
2011-10-19 Ring of Fire Signs Contract to Initiate Airborne Survey over Project 81; Engages IBK Capital for the Private Placement of Common Share Units
2011-10-11 Ring of Fire Closes Acquisition of Project 81
2011-10-05 Franco-Nevada Commits to Funding Ring of Fire Resources' Purchase of Project 81; Ring of Fire Executes Definitive Purchase and Sale Agreement with Abibow Canada Inc.
2011-07-19 Ring of Fire Resources Presents Historical Data for Project "81" Mineral Properties near Timmins, Ontario
2011-07-15 Ring of Fire Resources Inc. Signs Exclusivity Agreement to Purchase High Potential Mineral Properties near Timmins, Ont.


PROPERTY LOCATION AND OWNERSHIP:



NOB's Project 81 property is located in the Timmins - Cochrane area of Northern Ontario and consists of, in total, approximately 79,000 hectares.
The original property consisted of 2 blocks (Block A and Block B - collectively named 'Project 81') and additional claims contiguous to Block A.

Block A was comprised of an area of approximately 51,531 hectares (128,827 acres) and is one contiguous parcel of land covering 10 townships adjacent to the Kidd Creek Mine Complex near Timmins, Ontario (subsequently additional claims have been added)

NR 2018-09-05 Noble staked additional mineral claims contiguous to Project 81. The Company successfully staked 405 claim units, totalling approximately 8,536 hectares in two(2) blocks namely the Macdiarmid-Jamieson township block and the Mahaffy-Geary township block, Northern Ontario, Canada. The Mahaffy-Geary claim block ties onto Crawford and Aubin townships- that are part of the Company's ~70,000 hectare Project 81, and is approximately 4,855 hectares. The Macdiarmid-Jameison block staked is approximately 3,681 hectares. The claims staked were based on ongoing analysis and evaluation by Noble's geological and geophysical team whereby the areas staked have large EM & Mag conductors and structures similar to the Kingsmill Township Nickel-Cobalt deposit and the Crawford Township Nickel body


NR 11-11-24: An additional 448 mineral claims (approximately 17,920 acres [approximately 7,252 hectares]), contiguous to Block A, have been staked in Bradburn and Calder Townships over what the Company believes to be the potential faulted extension of its Kingsmill nickel target on Block A, Project 81.




NR 11-11-30:The Company also agreed to acquire, from Metals Creek Resources, a 100% interest in an additional 10 claim blocks contiguous to Block A in Lucas, Duff and Tully Townships totalling 132 claim units, comprising approximately 2,137 hectares (5,280 acres)

NR 12-05-23:Noble announced the acquisition of a 100% title and interest in an additional 3 claim blocks, totalling 12 claim units covering approximately 192 hectares (474 acres),located in the Kingsmill and Aubin Townships.

An additional 6 claim blocks (84 claim units) were added totaling 3,360 acres (1,359 hectares) in the Bradburn and Calder >

Original Deal Terms:

  • Under its agreement with Metals Creek, ROF has agreed that the purchase price for the property would consist of 750,000 shares, 375,000 issuable at closing and 375,000 issuable on or before June 1, 2012 and $50,000 in cash, with $25,000 payable on or before June 1, 2012;
  • In addition, Metals Creek would be granted a 2% Net Smelter Return royalty (NSR) or a 10% Net Profits Interest (NPI) at their election in connection with the property, with ROF having the right to buy back up to 1% of the NSR or 5% of the NPI (whichever is applicable) at a price of $1,000,000.

    NR-2017-09-25Toronto, Ontario -- September 25, 2017 -- Noble Mineral Exploration Inc. announced that it has signed a binding Letter of Intent (LOI) with Spruce Ridge Resources Ltd ("Spruce Ridge") (TSXV: SHL) to earn up to a 75 percent interest in specific target areas having a size of up to 2,000 hectares (the "Crawford Property") in Noble's 9,000-hectare Crawford Township property, which comprises part of Noble's Project 81. The Crawford Property lies approximately 13 kilometres north of Glencore Canada's world class Kidd Creek zinc-copper-silver mine, currently celebrating its 50th year of continuous operation. The property is underexplored and there is a high potential to find another world class mineral deposit. Results of a high definition, airborne gravity - gradiometer survey currently being carried out over 6,000 line kilometers by Gedex Inc. for Noble will be used to prioritize potential base metal targets identified from preliminary results of a recently completed modern, state of the art Heliborne EM/Mag survey. Under the terms of the option proposed by the LOI, Spruce Ridge can earn an initial 51% interest in the Crawford Property by making a cash payment of $100,000, issuing 6,000,000 common shares, issuing 6,000,000 warrants exercisable at the lowest exercise price permitted by the TSX.V and having a term expiring five (5) years after issuance, and incurring a minimum of $1,000,000 of qualifying expenditures in the twelve months following the execution of the option agreement. Spruce Ridge can earn an additional 24% interest in the Crawford Property by issuing 6,000,000 common shares to Noble, issuing 6,000,000 warrants to Noble exercisable at the greater of $0.15 per share or such lower exercise price as may be permitted by the TSXVE and having a term expiring five (5) years after issuance, and incurring a further $1,000,000 of qualifying expenditures on or before the second anniversary of the execution of the option agreement. Once 75% is earned (or 51% should Spruce Ridge elect not to acquire a 75% interest), the Crawford Property will be operated as a participating Joint Venture. The transactions described in the LOI are subject to due diligence and to the approval of the TSX Venture Exchange. The Crawford Property is located just north of Timmins and has access to all the amenities necessary to carry out an extensive exploration program including personnel, contractors, road, power and water. Vance White, Noble's President and CEO commented: "We're pleased to welcome the team of experts associated with Spruce Ridge to get this ~70,000 Hectare Project Area back on track as we feel there is a tremendous opportunity to identify mineral wealth on what has been a relatively underexplored project area in close proximity to very satisfactory infrastructure. A number of drill ready targets have already been identified in the 12 townships that comprise this project area. Noble believes that VMS deposits of the Kidd Creek type occur in clusters.". Randy S C Singh P.Geo. (ON), P.Eng. (ON), VP Exploration & Project Development of Noble and a "qualified person" as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of the Company.

    NR 11-12-01:The Company reported on recently uncovered historic diamond drill results from 12 diamond drill holes out of 30 mineralized holes on its Project 81/Lucas Township Primary Gold Target acquired from AbiBow Canada Inc.(now Resolute Forest Products)in the Timmins area of Northern Ontario

    NR 11-12-05:The Company reported on additional historic diamond drill results from 30 mineralized diamond drill holes on its Project 81/Lucas Township Primary Gold Target.


    The Lucas Township gold claims were the subject of exploration programs in the early 1960's, 70's and 80's that included diamond drilling that had interesting fold intercepts. There has been no significant mineral exploration work done in the project area since the 1980's. All results reported below are historic and non NI 43-101 compliant.


    Historic Gold Results - Lucas Township: Project 81

    Historic Gold Results - Lucas Twp* (PDF)

    Hole ID From (m) To (m) meters g/t Incl (g/m) Incl (g/m)
    L-80-4 94.49 131.52 37.03 2.967 3.081/35.66 4.386/7.62
    L-80-8 152.55 166.73 14.17 0.933    
    L-80-10 118.41 124.05 5.64 2.547 3.497/3.66  
    L-80-11 103.94 109.58 5.64 1.816 2.668/3.50  
    L-80-11 129.84 138.99 9.14 3.145    
    L-80-12 72.24 82.30 10.06 1.023    
    L-80-13 118.87 131.06 12.19 2.778 3.421/9.14  
    L-80-14 87.78 106.68 18.90 1.028    
    L-81-25 173.13 185.62 12.50 1.149    
    L-81-30 165.81 174.65 8.84 3.507    
    L-81-36 54.25 59.44 5.18 1.610    
    L-81-36 80.16 91.44 11.28 2.679 3.567/7.01  
    L-81-36A 54.86 103.63 48.77 1.940 2.321/39.62  
    904-73-14 141.91 148.13 6.22 1.174    
    904-73-14 160.32 180.69 20.06 1.222     
    *All results are historic and are NI 43-101 non compliant


    Additional results from recently uncovered historic diamond drill results (non NI 43-101 compliant) from 30 mineralized diamond drill holes on the Lucas Township Primary Gold Target were announced (see news release 2011.12.05)

    Additional Historic Gold Results - Lucas Township *

    Hole ID From (m) To (m) meters Au g/t Incl
    (Au g/t/m)
    Incl
    (Au g/t/m)
    27063 N/A N/A 2.8 4.7    
    27069A n/a n/a 3.0 0.9    
    904-73-14** 141.91 148.13 6.22 1.174    
    904-73-14** 160.32 180.69 20.06 1.222    
    L-80-2 433.43 434.95 1.52 0.933    
    L-80-3 106.98 111.56 4.57 0.622    
    L-80-3 112.78 124.05 11.28 0.782    
    L-80-4** 94.49 131.52 37.03 2.967 4.386/7.62 3.081/35.66
    L-80-4 166.68 169.77 2.90 4.895    
    L-80-6 65.53 72.39 6.86 0.646    
    L-80-7 136.25 137.46 1.22 2.177    
    L-80-7 148.13 149.66 1.52 1.337    
    L-80-8 105.16 106.68 1.52 1.550    
    L-80-8 108.20 112.78 4.57 0.933    
    L-80-8** 152.55 166.73 14.17 0.933    
    L-80-8 194.46 199.64 5.18 1.336    
    L-80-9 81.38 84.43 3.05 1.400    
    L-80-10 80.31 83.52 3.20 0.985    
    L-80-10** 118.41 124.05 5.64 2.547 3.497/3.66  
    L-80-11** 103.94 109.58 5.64 1.816 2.668/3.50  
    L-80-11** 129.84 138.99 9.14 3.145    
    Hole ID From (m) To (m) meters Au g/t Incl
    (Au g/t/m)
    Incl
    (Au g/t/m)
    L-80-12** 72.24 82.30 10.06 1.023    
    L-80-13** 118.87 131.06 12.19 2.778 3.421/9.14  
    L-80-14** 87.78 106.68 18.90 1.028    
    L-81-15 126.80 129.08 2.29 3.560    
    L-81-16 64.92 70.41 5.49 1.019    
    L-81-17 93.57 99.67 6.10 1.073    
    L-81-18 117.35 117.65 0.30 1.555    
    L-81-19 113.39 116.13 2.74 2.246    
    L-81-20 46.63 47.85 1.22 2.022    
    L-81-20 49.99 52.73 2.74 1.296    
    L-81-21 141.88 144.48 2.59 0.778    
    L-81-23 138.99 143.56 4.57 1.648    
    L-81-25** 173.13 185.62 12.50 1.149    
    L-81-25 194.61 199.95 5.33 2.106    
    L-81-27 229.21 231.04 1.83 2.229    
    L-81-29 192.33 196.29 3.96 1.507    
    L-81-30** 165.81 174.65 8.84 3.507    
    L-81-32 229.82 231.95 2.13 1.822    
    L-81-36** 54.25 59.44 5.18 1.610    
    L-81-36** 80.16 91.44 11.28 2.679 3.567/7.01  
    L-81-36A** 54.86 103.63 48.77 1.940 2.321/39.62  
    L-81-43 254.66 257.25 2.59 1.409    
    L-82-49 110.03 110.95 0.91 4.043    
    *All results are historic and are NI 43-101 non-compliant and cannot be relied upon
    ** Previously released in news release of Dec 1, 2011

    The Lucas Township gold project is the subject of a current helicopter borne Gradiometer Mag, VLF,Radiometric and TEM Survery in anticipation of diamond drilling in 2012 to confirm and expand these results.


    INITIATION OF PROJECT 81


    ROF NR 11-10-11:The Company announced that it had closed the funding transactions with Franco-Nevada Corporation, and had completed the purchase of Project 81 (the Iroquois Falls and Smooth Rock Falls land package) from AbiBow Canada Inc.


    ROF NR 11-10-05:The Company announced the Franco-Nevada Corporation had agreed to fund part of ROF;s purchase for Project 81 from AbiBow Canada Inc., for a total funding commitment from Franco-Nevada to ROF of up to $4,000,000

    The Company announced (see ROF news release of July 15, 2011) that it had entered into an agreement in connection with the potential purchase of a 100% title and interest in approximately 60,701 hectares (149,995 acres) of land in the Smooth Rock Falls, Iroquois Falls and Timmins area of Northern Ontario. The property consists of 2 blocks (Block "A" & Block "B"- collectively named Project "81") of prime mineral exploration and productive forestlands in 15 townships in Northern Ontario. Block "A" comprises an area of approximately 58,314 hectares (144,096 acres) and is one contiguous parcel of land covering 10 townships, adjacent to the Kidd Creek Mine Complex near Timmins, Ontario. Block "B" comprises an area of approximately 2,387 hectares (5,876 acres) and consists of 35 parcels of land covering 5 townships around Iroquois Falls and Smooth Rock Falls.

    Deal Terms:
    • Franco-Nevada has agreed to purchase a three-year secured convertible debenture issued by ROF in the principal amount of $2,000,000, convertible into common shares at a price of $0.20 per share, and earning 5% interest annually (the debentures and underlying shares would be subject to a four month hold period);

    • Franco-Nevada has agreed in principle, if necessary, to backstop the $1,500,000 property payment due to AbiBow in 180 days or the final $1,500,000 property payment due in 365 days using a convertible debenture with similar terms (except the conversion price will be based upon the then current market price); and

    • Franco-Nevada has agreed to pay ROF $500,000 to acquire certain rights ROF would otherwise obtain with respect to a royalty that will be granted to AbiBow in connection with the purchase of Project 81.
    Description Amount
    Convertible debenture $2,000,000
    Property purchase backstop commitment $1,500,000
    Rights with respect to royalty    $500,000
    Total funds committed to ROF from Franco-Nevada $4,000,000


    ROF NR 11-07-05: The Company announced that it had entered into an agreement with AbiBow Canada Inc. in connection with the potential purchase of a 100% title and interest in approximately 60,701 hectares (149,995 acres) of land in the Smooth Rock Falls, Iroquois Falls and Timmins area of Northern Ontario. The property consists of 2 blocks (Block "A" & Block "B"- collectively named Project "81") of prime mineral exploration and productive forestlands in 15 townships in Northern Ontario. Block "A" comprises an area of approximately 58,314 hectares (144,096 acres) and is one contiguous parcel of land covering 10 townships, adjacent to the Kidd Creek Mine Complex near Timmins, Ontario. Block "B" comprises an area of approximately 2,387 hectares (5,876 acres) and consists of 35 parcels of land covering 5 townships around Iroquois Falls and Smooth Rock Falls.
    Under its agreement with AbiBow, ROF is required to pay AbiBow a total of $6,500,000 in cash, issue 3,000,000 treasury shares of ROF and grant to AbiBow a 5% net smelter returns royalty from the sale of minerals produced from the property. Of this, $3,500,000 will be paid on closing. An additional payment of $1,500,000 is the subject of a secured vendor take-back note due 180 days after closing, and a further $1,500,000 is the subject of a secured vendor take-back note due one year after closing. If ROF requires funding to make one of these payments, Franco-Nevada has agreed to purchase from ROF an additional $1,500,000 secured convertible debenture under the same terms (with a conversion price based upon the then current market price.)