FROM THE

MINERAL, MINING & EXPLORATION NEWS

SITE PROFILE: NORTH AMERICAN TUNGSTEN’S MACTUNG PROPERTY

Volume 2 Issue 1 Spring 2009

North American Tungsten’s Mactung project is by far the company’s largest asset because of its size, grade and location. It is one of the largest known, undeveloped, high-grade, tungsten-skarn deposits in the world. The Mactung property is located 250 kilometres northeast of Ross River on the Yukon/NWT border, approximately eight kilometres northwest of MacMillan Pass. The Mactung deposit was discovered in 1962 by James Allan, a geologist of Amax Northwest Mining Co. Ltd. (Amax). The deposit was originally known as MacMillan Pass Tungsten and then as MacMillan Tungsten before it became known as Mactung.

Amax sold the Mactung property to Canada Tungsten Mining Corporation (CTMC) in 1986 as part of a larger sale that included the Cantung mine. CTMC merged with Canamax Resources and Minerex Resources in 1993 to become Canada Tungsten Inc.. In August 1994, Aur Resources Inc. (Aur) purchased a 48% interest in Canada Tungsten Inc. and in January 1997, the two companies merged. In October 1997, the property, along with the Cantung Mine and other Aur assets, were sold to North American Tungsten Corporation Ltd. (NATCL), the present owner.

In 2005, NATCL drilled 25 surface diamond drill holes (6,639 m) to better define the west end of the

In this edition...Site profile – North American Tungsten ........ 1

Did you know .......... 2 & 3

District Profile — Watson Lake: Gateway to Yukon ......................... 2

Yukon Legislature Approves Quartz Mining Act and Miners Lien Act Amendments ................... 3

This newsletter is produced by the Mineral Resources branch of Yukon government’s department of Energy, Mines and Resources. For more information please contact the branch at: mining@gov.yk.ca or (867) 667-3163.

Top photo: Mactung portal, North American Tungsten

Bottom photo: Mactung site, North American Tungsten

Energy, Mines and Resources

deposit and to upgrade the resource classification of some mineral resource blocks from the “Inferred” to “Indicated” category.

The project is National Instrument 43-101 (NI43-101) compliant with indicated resources of 33 Million tonnes (Mt) grading an average of 0.88% Tungsten trioxide (WO3), and an inferred mineral resource estimate of 11.3Mt grading 0.78% WO3. NI43-101 requires listed companies to provide technical audit trails which link their public statements, their work plans and results, and geology as a whole, in a rational way.

Wardrop Engineering Inc. reviewed the historical feasibility studies to produce an updated economic assessment on Mactung in October 2007, after which a feasibility study commenced on the project. North American Tungsten has submitted a project proposal for assessment of the development of the mine and production of tungsten to the Executive Committee, Yukon Environmental and Socio-economic Assessment Board in December 2008. The bankable feasibility study has been completed and once appropriate regulatory approvals have been received, the company will begin construction with a view to full operations by 2012.

DISTRICT PROFILE — WATSON LAKE: GATEWAY TO YUKON

Did you know...

Tungsten has the highest melting point of any metal.

Tungsten carbide is the second hardest substance in the world. Only diamonds are harder.

Tungsten originates from the Swedish words ‘tung sten’ meaning heavy stone. It was formerly called Wolfram, hence the symbol of the element — W.

Tungsten is classified as a “Transition Metal” and is located in Groups 3–12 of the Periodic Table. An element classified as a Transition Metal is ductile, malleable, and able to conduct electricity and heat.

The world famous Sign Post Forest is Watson Lake’s best known attraction. So famous, it is known — and mimicked — around the world.

The forest was started in 1942 by homesick U.S. Army G.I. Carl K. Lindley of Illinois. While working on the Alaska Highway, he erected a sign pointing the way and stating the mileage to his hometown. Others followed his lead and continue to add signs today. In July 1990, Olen and Anita Walker of Ohio placed the 10,000th sign. Carl K. Lindley and his wife visited the site in 1992, 50 years after his first post was erected.

Photo: Watson Lake’s famous Sign Post Forest,

Yukon government

Photo: Northern Lights Space and Science Centre, Yukon government

Mining’s role in Yukon’s history is well known and the Watson Lake district’s contribution to this history is evident. There are a number of projects that have been developed or are in the exploration phase and there is considerable mineral potential in the area. Today, there are several large exploration sites and planned mine development sites in the Watson Lake district. This, along with the active staking and exploration activity, keeps the staff of the Watson Lake Mining Recorder’s office very busy.

Here is an introduction to Energy, Mines and Resources employees working at the Watson Lake Mining Recorder’s office.

Patti McLeod is the Watson Lake Mining Recorder and has worked with Mineral Resources since January 1974. She started work on a two week contract and, as she says: “it’s been a long two weeks”. Patti moved to Watson Lake in 1977 and hasn’t looked back. There are endless opportunities for her to get involved with the community. She enjoys working directly with the public and finds this to be the best part of her job. While retirement from the Yukon government is on the horizon, Patti doesn’t have any immediate plans to leave Watson Lake. Patti will certainly be missed around the office.

Nancy Moore is the Mining Lands Officer and has worked for Mineral Resources for 28 years. Nancy and Patti have worked all 28 of these years together and have discovered that the secret to a successful long term relationship is separate homes! Nancy is originally from Ontario and like most Yukon stories,

she only came for a short visit to Watson Lake in 1979 and simply never left. Nancy’s favourite part of her job is doing the math! She loves a mathematical challenge and finds it especially gratifying to find math errors that others have made. Fortunately, she gets the opportunity to put that passion to work both professionally and as a volunteer. Nancy is also the Mayor of Watson Lake and there is always number crunching to do when running the affairs of a bustling Yukon municipality.

The Watson Lake Mining Recorder’s staff can be reached at (867) 536-7335 and are available to assist with all staking related questions and issues.

From the Trenches Page 2 Spring 2009

Photo: Robert Campbell Highway, Yukon government.

Did you know...

The northern lights (aurora borealis) are visible in Yukon between November and March. First Nations legends say the lights represent ancestors and that whistling at them sends messages of remembrance.

Despite the midnight sun, you can experience the northern lights during the summer months. The Northern Lights Space and Science Centre in Watson Lake features a state of the art panoramic video and surround-sound system showcasing dancing northern lights. The centre also features interactive displays explaining the science and folklore of the aurora borealis phenomenon.

Yukon Highway 4, known as the Robert Campbell Highway, links Watson Lake to the communities of Carmacks, Faro and Ross River. The highway begins at the world famous Sign Post Forest.

The first portion of the Robert Campbell highway was built in the early 1960s as part of a project to complete road access to Tungsten, NWT.

Travel along the Robert Campbell Highway’s 583 kilometers is mostly on a gravel surface, which has seen active use over the years by prospectors and haulage of mine supplies and concentrates.

YUKON LEGISLATURE APPROVES QUARTZ MINING ACT AND MINERS LIEN ACT AMENDMENTS

The Yukon Legislative Assembly passed the amendments to the Quartz Mining Act (QMA) and the Miners Lien Act (MLA) in the fall sitting of 2008. The amendments were given assent by The Honorable Geraldine Van Bibber, Commissioner of Yukon on November 27, 2008.

Brad Cathers, Minister of Energy, Mines and Resources, said: “The amended Quartz Mining Act and Miners Lien Act provide valuable clarity and certainty to Yukon’s mineral sector during this time of global economic uncertainty.”

“This legislation will encourage a mining industry that yields the most benefit to Yukoners, while remaining competitive with other jurisdictions,” added Cathers.

The amendments to the Miners Lien Act, administered by the department of Community Services, provides the opportunity for contractors and suppliers to lien mine and mineral assets in situations where they have not been paid for a good or service.

Language and definitions in the act have been amended to provide clarity and certainty for suppliers, the mining industry and lenders that provide debt capital for mine development.

The amendments to the Miners Lien Act will become effective on April 1, 2009.

Additionally, the amendments to the claim provisions of the Quartz Mining Act will also become effective on April 1, 2009.

These changes include new staking procedures, grouping limits, timelines for registration of claims and fees for tags.

A copy of the amended act and the regulations are available at www.yukonmining.com. A consolidated version of the QMA will be prepared and published in the coming months.

This consolidated version will provide a comprehensive act that reflects the amendments along with original provisions of the act.

Workshops were recently held by the department of Energy, Mines and Resources with claim holders, mining companies and staking companies to provide an overview of the implementation, explain the guidelines and answer questions. Full implementation of the amendments will be effective on April 1, 2009 in each of the Mining Recorder district offices.

The department is currently developing regulations that will enable the amendments to the royalty provisions of the act. These regulations along with proclamation of the amendments to these sections of the QMA are due to follow later this year.

Please watch www.yukonmining.com for further updates as this process moves to completion.

From the Trenches Page 3 Spring 2009