To: Terry J. Crebs who wrote (11198 ) 9/8/2001 4:05:31 PM From: Rocket Red Respond to of 11676 Falconbridge gets 50% Tech retains its 50% whats left for DML? Get Ready for another P&D SVB project. Donner Minerals Ltd - News Release Donner et al enter option agreement with Falconbridge Donner Minerals Ltd DML Shares issued 45,224,657 Sep 6 2001 close $.150 Friday Sep 7 2001 News Release Mr. Harvey Keats reports Together with Donner Minerals' majority-owned subsidiaries, SVB Nickel Company Ltd. (SVBN), Northern Abitibi Mining Corp. (Northern Abitibi), Major General Resources Ltd. (Major General) and Pallaum Minerals Ltd. (Pallaum), Donner has entered into an option earn-in agreement with Falconbridge Limited, whereby Falconbridge can earn a 50-per-cent interest in the entire South Voisey Bay project by spending $23-million on exploration. The ownership of SVBN is as follows: Donner Minerals Ltd. 76.69 per cent; Cypress Development Corp. 11.36 per cent; NDT Ventures Ltd. 6.55 per cent; Rcom Venture Corp. 4.20 per cent; and Curion Ventures Corp. 1.20 per cent. The South Voisey Bay project comprises the following properties: 20 licences covering about 549.5 kilometres held 100 per cent by SVBN with the exception of a 37.5-square-kilometre portion in which Pallaum has a 25-per-cent interest (the SVBN property); one licence covering about 39.5 kilometres, owned 52.41 per cent by Donner and 47.59 per cent by Northern Abitibi (the Donner/Northern Abitibi property); and one licence covering about 35.5 kilometres and owned 52.06 per cent by Donner and 47.94 per cent by Major General (the Donner/Major General property). The SVBN property, the Donner/Northern Abitibi property and the Donner/Major General property (the combined property), is centred 75 kilometres west of the Labrador Sea coast, 90 kilometres south of Inco's nickel-copper-cobalt deposits at Voisey Bay. Falconbridge has the option to earn a 50-per-cent participating joint venture interest in each of the three properties (the option) for a period from Sept. 1, 2001, to Dec. 31, 2006 (the option period), by incurring the following expenditures on exploration and related work (expenditures) on or before the end of the option period: in order to vest its 50-per-cent interest in the SVBN property, Falconbridge is required to incur $14-million of expenditures on the SVBN property; in order to vest its 50-per-cent interest in the Donner/Northern Abitibi property, Falconbridge is required to incur $5-million of expenditures on the Donner/Northern Abitibi property; and in order to vest its 50-per-cent interest in the Donner/Major General property, Falconbridge is required to incur $4-million of expenditures on the Donner/Major General property. In order to keep the option in good standing, Falconbridge will incur a total of at least $2-million of expenditures on the combined property on or before Dec. 31, 2002, and $2-million in each of the subsequent calendar years during the option period on the combined property. Falconbridge may abandon its option on one or more of the properties or parts thereof at any time during the option period. Falconbridge will be the operator during the option period. A management committee will be formed comprising all of the parties to develop and finalize all exploration programs. Teck Corporation is also a signatory to the agreement discussed above and retains its right to earn 50 per cent of Donner's interest in any deposits discovered and developed on the combined property, after adjusting for Falconbridge's 50-per-cent interest in the property. Teck can earn this interest by financing Donner's share of feasibility costs and arranging Donner's share of production financing. As part of Donner's continuing efforts to build a strong working relationship with the Innu Nation, Donner and Falconbridge are close to finalizing agreements to address environmental and archaeological issues and Innu business and employment opportunities at South Voisey Bay. Falconbridge and Donner believe that the South Voisey Bay project is a high-quality nickel-copper-cobalt exploration project that will require a strong commitment over the next few years. Falconbridge and Donner will dedicate to the project an experienced exploration team with expertise in nickel deposits, closely integrating geology, geophysics and geochemistry. Deep-seeking geophysics will be very important to the South Voisey Bay project. Falconbridge has been using a number of innovative geophysical methods specifically designed to find massive sulphide nickel in Sudbury, Raglan and elsewhere worldwide. Advanced geophysical methods integrated with expert geological knowledge of magmatic systems and nickel deposits are assets that Falconbridge will bring to this project in order to find an orebody at South Voisey Bay. Falconbridge will also bring its expertise in developing and operating mines, smelting, refining and marketing nickel, copper, cobalt and platinum group metals. Falconbridge is focused on profitably growing its nickel business and is interested in discovering and developing new supplies of nickel sulphide ore in Canada. This will be an important exploration project for Falconbridge. Archaeological work will begin immediately and starting in early October, Falconbridge will carry out gravity and deep-seeking EM, together with geological mapping and relogging of drill core. Falconbridge will then review and integrate all exploration data over the winter in order to plan and carry out a substantial drill program next spring. 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