Royal Nickel Corp. RNKLF

RE:Conclusion

[ProfBaIthazar]

Agree Herman! 100%

You never know with RNX management - does Selby plan to issue another billion shares to start Dumont disaster ... LOL

HandsomeHerman wrote: Its all about the high grade. Dumont is for another lifetime. Not this one.

INTERPRETATION & CONCLUSIONS The following conclusions arise from the information provided in the previous sections: • The Dumont deposit represents a significant ore reserve that remains open at depth and along strike to the northwest. • Reserves are reported at a cut-off grade of 0.15% nickel inside an engineered pit design based on a LG optimized pit shell that was generated using a nickel price of US$5.58/lb, which is 62% of the long-term forecast of US$9.00/lb, average metallurgical recovery of 43%, marginal processing and G&A costs of US$6.30/t milled, long-term exchange rate of C$1.00 equal US$0.90, overall pit slopes of 42° to 50° depending on the sector and a production rate of 105 kt/d. Mineral reserves include mining losses of 0.28% and dilution of 0.49% that will be incurred at the bedrock overburden interface, which corresponds to mining losses of 1 m and 2 m of dilution along this contact. • It has been demonstrated that the deposit can be economically developed using large-scale open pit methods. • This scope of design is estimated to require an initial capital investment of $1,357 M, an expansion capital investment of $801 M and sustaining capital of $815 M. • Over the 33-year project life, Dumont is expected to produce 2,774 Mlbs of payable nickel and the equivalent of a further 150 Mlbs payable nickel in by-product cobalt and PGE. The average cost to produce nickel over the entire life is $4.79/lb and includes lower costs of $4.44/lb in the initial five years of production. • Based on a long-term Ni price of US$9.00/lb and C$ exchange rate of US$0.90, the after-tax NPV8% for the project is $1.3 billion while the after tax IRR is 16%. There is consequently justification for approving construction of the project.

Herman