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In 2010 an NI 43-101 compliant resource estimation was made on the Carlin Vanadium deposit by Dr. Bart Stryhas of SRK for Energy Metal Corp. (EMC). The technical steps and components of the study can be found in Cornerstone’s Technical Report, History Section.

The results of the 2010 resource estimation provided a CIM classified Inferred Mineral Resource as shown in Table 1-1 below at a Cut-off grade CoG of 0.3% V2O5. The quality of the historical data was good and the Mineral Resource was classified as inferred mainly due to the fact that the rotary drilling has not been verified by a modern program. This figure shows the Plan View of the 2010 Historic Resource Estimate Block Model.


 

 

 

 

 

 

 

 

Table 1‑1: 2010 Historic Carlin Vanadium Mineral Resource

Resource Category

% CoG

Total (Mst)

V2O5 Grade (%)

Contained V2O5 (Mlb)

Inferred

0.3

28

0.515

289

The 0.3% V2O5 CoG was chosen in 2010 for resource reporting based on the reasonable potential for economic extraction under a conceptual open pit mining and milling scenario. The CoG was calculated using US$2.30/st mining cost, US$35/st milling cost, US$0.50/st admin cost, 65% recovery, 95% selling pay-for, 1% freight charge, 0% royalty and a US$10.46/lb V2O5 value. The results reported in the historic resource statement are rounded to reflect the approximation of grade and quantity, which can be achieved at this level of resource estimation. Table 1-2 provides the historic resource at different cut-off grades.

Table 1-2: 2010 Historic Resource Estimate Sensitivity Table

% CoG

Total (Mst)

V2O5 Grade (%)

Contained V2O5 (Mlb)

0.1

64

0.341

439

0.2

47

0.404

384

0.3

28

0.515

289

0.4

18

0.616

217

0.5

11

0.708

161

0.6

7

0.806

115

0.7

5

0.893

82

Source: SRK, 2010

The 2010 mineral resource estimate has been declared a historic resource by the QP of Cornerstone’s Technical Report and will remain a historic resource until such time as Cornerstone has it updated with current metal pricing and costs. The Company is not treating the historic mineral resource estimate as current and as such they should not be relied upon.

This figure is an example cross-section view of 2010 historic mineral resource block model, demonstrating the near surface nature and shallow dip of the deposit which lends itself to open pit mining methods.

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