The Turnagain Nickel project is located in British Columbia and it consists of 65 contiguous mineral claims covering an area of approximately 33,220 hectares. Nickel and copper sulphides were first identified on the property in 1956 with Falconbridge Nickel Mines completing the first exploration programs during the period from 1966 to 1973. Exploration to date on the Turnagain property has included geological mapping, geophysical and geochemical surveys and more than 75,620 metres of diamond drilling in 304 drill holes.

The mineral resource for the Turnagain deposit was estimated by Mr Ronald Simpson of GeoSim Services Incorporated and classified in accordance with the CIM Definition Standards and Best Practices referred to in the NI 43-101 guidelines which have a reasonable expectation of economic extraction. The mineralization of the project satisfies criteria to be classified into Measured, Indicated and Inferred mineral resource categories.

The mining assessment for the Turnagain deposit was performed by Mr Robert Fong of Moose Mountain Technical Services and is based on typical industry standards for a preliminary assessment study with regard to the nature and mineability of the resource.

Based on the findings of this preliminary assessment, it has been concluded that the project is potentially mineable and recommendations have been made to HNC to proceed to pre feasibility level.

This Preliminary Assessment includes the use of inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. The study is preliminary in nature and there is no assurance the mining, metal production, or cash flow scenarios outlined in this report would ever be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.