Page 26 Contd from pg 24 principal shareholders regarding the the debt before its maturity The Lockerby Mine is located south west of the City of Sudbury and was developed and operated by Falcon bridge Limited from 1974 until 2004 extracting over 8 million tonnes of ore during that period FNI acquired the Lockerby Mine in June 2005 and commenced commercial production in 2006 extracting an additional 364000 tonnes to October 2008 when the mine was placed on care and maintenance due to low metal prices After careful planning and further de velopment work at the project site in cluding the preparation of a 2009 fea sibility study on the development and mining of the Depth Zone at the Lock erby Mine which demonstrated that cial case for development that could years First Nickel recommenced production on certain portions of the mine with a focus on the Lockerby Depth Zone in September 201 1 The company declared commercial production on July 1 2012 Accord ing to the Lockerby T echnical Report duction the Lockerby Mine focused on the Lockerby Depth Zone is ex pected to produce approximately 10 million pounds of nickel and 7 mil lion pounds of copper annually at a total cash operating cost of approxi mately 556 per pound of nickel The Lockerby Mine achieved its full tar geted annualized production rate of 100 million pounds of payable nickel in 2013 As well as having an operating mine First Nickel has four properties with great potential the W est Graham the Bel mont the Dundon ald and the Raglan Hills The W e st Graham property is located southwest of the City of Sudbury and was optioned from Landore Resources Canada Inc in Au gust of 2006 where by FNI has met all of the terms of the Op tion Agreement and earned a 70 inter est in the property The W e st Graham Property and the Conwest NiCu De posit forms the eastern portion of a contigous property package that con tains the Lockerby Mine The Con west Deposit represents the updip projection of FNI s Lockerby East Deposit and contains in excess of 84 million pounds of nickel and 58 mil lion pounds of copper within an Indi cated Resource Category Exploration and delineation programs resulted in major increase in the re source base for the Conwest Deposit as reported in the T echnical Report SEDAR on February 20 2009 The Belmont Project represents one of the company s exciting grass roots exploration projects The property comprises approximately 5500 hect ares in 69 unpatented mining claims in eight separate blocks in Limerick W o llaston Lake Marmora and Bel mont T ownships FNI s staked mining claims cover many nickel and copper occurrences posit Inventory and have tar g eted ar T ype deposits The Dundonald Property was ac quired by FNI from Falconbridge Limited based primarily on its po tential to host economic Kambalda style Ni Cu Co PGE sulphide volcanics in the Dundonald South and Dundeal Zones FNI also recognized the potential for lower grade but lar ger tonnage nickel deposits in the Dundonald South area for CuZn base metal deposits in the T e rminusDundeal area and for bulk tonnage PGE deposits in the Dundon ald Sill The Dundonald Property is situated approximately 60 km northeast of the City of T immins and totals 56 mining claim units covering 946 ha in Dun donald and Cler gue townships The property is owned 100 by FNI with gr eat potential SUDBUR Y MINING REPOR T 2014 FNI has four pr operties