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July 10, 2014 --- Vol. 08, No. 28July 2014

Northwest Territories

DIAMONDS – Dominion Diamond Corp. July 9 said it will increase its interest in the Ekati Diamond Mine through an agreement with C. Fipke Holdings Ltd. to acquire FipkeCo’s 10 percent participating interests in Ekati at a price equivalent to the price paid to BHP Billiton in 2013 for its interests. Dominion Diamond Chairman and CEO Robert A. Gannicott said, “Although the sale by Chuck Fipke of his interest in the Ekati Project ends his financial involvement with Canada’s first diamond mine, his contribution to its discovery and success goes well beyond that. The history of Canadian mining is full of stories of accidents of fate leading to discoveries, but the discovery of diamonds in the Slave Geological Province is a story of years of dedicated technical work led by a focused technical expert with unwavering belief in the outcome.” The Ekati Mine property consists of the Core Zone, which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes with both development and exploration potential. Dominion currently holds an 80 percent participating interest in the Core Zone, with FipkeCo holding a 10 percent interest and Stewart Blusson, Ph. D., holding the remaining 10 percent interest. Dominion holds a 58.8 percent interest in the Buffer zone, with FipkeCo holding a 10 percent interest and Archon Minerals Ltd. holding the remaining 31.2 percent interest. FipkeCo will sell its interest in the Core Zone for US$50 million, subject to adjustments to reflect joint venture contributions and distributions since June 30, 2012, as well as interest from that date. The base purchase price would be payable in instalments over 31 months, and Dominion would have the right, but not the obligation, to satisfy one or more installments in common shares of the company. FipkeCo will sell its 10 percent interest in the Buffer Zone for US$17 million, subject to adjustments to reflect joint venture contributions and distributions since June 30, 2012, as well as interest from that date. The purchase price would be payable in cash on closing. The joint venture agreements governing each of the Core zone and the Buffer zone contain a right of first refusal in favor of each joint venture party, which rights are exercisable for 60 days. If Blusson exercises his right in respect of FipkeCo’s Core zone interest, Dominion would acquire an 8.89 percent participating interest from FipkeCo, rather than a 10 percent. If Archon exercises its right in respect of FipkeCo’s Buffer Zone interest, Dominion would acquire a 6.53 percent participating interest from FipkeCo, rather than a 10 percent. The completion of the transactions is expected to occur in September.

GOLD – Nighthawk Gold Corp. July 8 reported the start of the 2014 drill program at its Indin Lake gold property in the Northwest Territories. This 14,000-meter program will drill four gold targets – Colomac Main, Goldcrest, Cass and Kim. Two rigs are scheduled to complete 8,000 meters of resource expansion drilling at the Goldcrest and Colomac Main gold deposits (2,000 meters). The 6,000 meters planned for Goldcrest will focus on verifying and expanding on previous shallow, higher grade gold intersections which are open to depth. Colomac Main drilling will aim to expand Zones 2.0 and 2.5 down plunge of previously drilled higher grade shoots. Nighthawk said this work will also lay the foundation for a subsequent winter program by expanding down plunge target opportunities that are best drilled from frozen lake setups. A third rig will drill the Cass and Kim gold deposits located southwest of Colomac. About 13,500 meters of historic drilling has traced gold mineralization at Cass over a strike length of 360 meters and to a depth of 210 meters. A 4,000-meter drill program at Cass, which is situated 20 kilometers (12.5 miles) southwest of Colomac, will aim to trace and expand on historically reported high-grade intersections to depth and along strike. Detailed mapping and sampling of trenches along possible lateral extensions of the deposit will also be carried out to help generate additional drill targets. The Kim deposit, situated some 15 kilometers (nine miles) southwest of Colomac, lies within a sequence of northerly striking, steeply dipping, mafic to intermediate volcanic rocks. Mineralization is reportedly hosted by intercalated, massive and pillowed mafic volcanic units that have been traced over a strike length of 650 meters and to depths of up to 150 meters. A 2,000-meter drill program is planned to confirm and extend the mineralization to depth and along strike. More than 18,000 meters of historic Kim drill core is stored on site. Results from select historic holes will be released as they are finalized. Nighthawk President and CEO David Wiley said, “Our focus for the 2014 drill program will be to expand and upgrade our current NI 43-101 Inferred Mineral Resource estimate. We are particularly looking forward to our first drill programs at the Goldcrest, Cass and Kim gold deposits, and we remain highly optimistic of their resource expansion potential. We anticipate the Cass deposit's high-grade gold shoots will form the basis for a new resource estimate to complement our existing resource at Colomac.”

FINANCE – North American Tungsten Corporation Ltd. July 2 reported the completion of a US$12 million loan with Queenwood Capital Partners II LLC, to replace its $12 million working capital loan with HSBC Bank, which expired June 30. The maturity date for the Queenwood II Loan is Oct. 1. The company owns CanTung tungsten mine in Northwest Territories and the MacTung development project in Yukon Territory, making it one of the few tungsten producers with a strategic asset in the western world. MacTung is one of the world’s largest known undeveloped high-grade tungsten-skarn deposits. Interest is payable on the Queenwood II Loan at the annual rate of 12 percent, and such interest is payable by the company quarterly in arrears on March 31, June 30, Sept. 30 and Dec. 31 of each year, with any remaining accrued and unpaid interest payable on the maturity date. The Queenwood II Loan is secured by a charge over all of the assets of the company pursuant to a general security agreement. Two directors of the company, Ronald Erickson and Kurt Heikkila, collectively own all of the issued and outstanding units of Queenwood II. On the basis that Queenwood II is considered an “insider” of the company, the Queenwood II Loan may be considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special. As a result, the following additional disclosure details are provided, following the listing of disclosure in section 5.2 of MI 61-101. The distribution of an information circular to shareholders, the preparation and distribution of a formal valuation and the seeking of shareholder approval for, and in connection with, the Queenwood II Loan is not necessary under MI 61-101. As the terms of the Queenwood II loan were only recently finalized, the company said it was not able to file a material change report 21 days prior to the closing of the Queenwood II loan.

AWARD – Geoscientists Canada June 30 reported that Gary Vivian, P.Geo., of Yellowknife, Nwt., is the recipient of the 2014 Canadian Professional Geoscientist Award, which recognizes the achievements of an individual who has made an outstanding contribution to the development and practice of professional geoscience and who has advanced public recognition of the profession in Canada in his or her capacity as a registered professional geoscientist. To be eligible for the award a nominee must meet a number of specified criteria, which include: a solid career as a professional geoscientist, an outstanding record of voluntary service to the community, and service to Geoscientists Canada or to one of the provincial or territorial professional associations that regulate geoscience in Canada. The award, which consists of a labradorite and marble sculpture made by a Canadian geoscientist artist, is given to a person in mid-to-late career. Vivian is president of Aurora Geosciences Ltd in Yellowknife, NWT. His career as a professional geoscientist spans more than 25 years of geological mapping, prospecting, sampling and geophysical surveying – predominantly on projects “North of 60.” Earlier in his career, Vivian worked for Noranda in Timmins, Ont., and Bathurst, N.B. He later joined Covello, Bryan and Associates, leading to the growth of that firm and its ultimate transition to become Aurora Geosciences Ltd. Vivian earned bachelor’s and master’s degrees in geology at the University of Alberta. He has been actively involved with his profession both at the provincial and national level. At the Association of Professional Engineers and Geoscientists of NWT and Nunavut, he sits on the Geoscience Committee and is currently its chairman. Gary served on NAPEG Council from 1991 to 1993, where he was later on a committee that developed NAPEG’s practice guideline, “Reporting of Diamond Exploration Results, Identified Mineral Resources, and Ore Reserves.” For a number of years, this was the only guideline document of its kind in use in Canada. At Geoscientists Canada, Vivian served as NWT-Nunavut director from 2006; he later assumed the role of President of Geoscientists Canada 2009-2010; and he continues to contribute valuable input on several committees. More recently, he became actively involved in the NWT and Nunavut Chamber of Mines, serving as its secretary/treasurer. In addition to serving his profession and the mining industry, Vivian is a longtime and committed hockey volunteer. In announcing the award, Geoscientists Canada President Paul Rennick, P.Geo, said, “We are delighted that Gary Vivian was chosen by our judges to be this year’s award recipient. I have known Gary for many years through his involvement in Geoscientists Canada. His work as a geoscientist in Canada’s north and his commitment and contribution to both his profession and the mining industry are exemplary. It is also impressive that Gary gives of his organizational and leadership abilities back to his community and to its youth, through his volunteering for hockey - both at the territorial and national level. Gary is most deserving of this year’s award.” The citation for the 2014 award, which will be presented to Vivian at a later date, will read as follows: “Presented to Gary Vivian, P.Geo in recognition of his outstanding contributions to his community, his profession and its professional associations.” The mission of Geoscientists Canada is to develop consistent high standards for licensure and practice of geoscience, to facilitate national and international mobility, and to promote recognition of Canadian professional geoscientists.


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