Name of the Project
NorthMet copper/nickel/precious metals project.

Location
The project is located near Hoyt Lakes, Minnesota, in the US.

Project Owner/s
PolyMet Mining Inc, a subsidiary of PolyMet Mining Corp.

Project Description
NorthMet will be developed in two distinct phases.

Phase 1 involves the proposed development of 225-million tons – nearly one-third of NorthMet’s known resource – into an operating mine processing 32 000 t/d over a 20-year mine life. It also includes rehabilitating the former LTV Steel Mining Company processing plant.

Under Phase 1, which includes revenues based only on concentrate sales, payable metals in the concentrate are estimated at 1.1-billion pounds of copper, 133-million pounds of nickel, a combined 1.1-million ounces of platinum, palladium and gold, one-million ounces of silver and 5.6-million pounds of cobalt.

Phase 2 involves the proposed construction and operation of a hydrometallurgical plant to treat nickel sulphide concentrates into upgraded nickel/cobalt hydroxide, and recover additional copper and platinum-group metals.

Under Phase 2, payable metals in enriched cop­per concentrates and products from the hydro­­metallurgical plant are estimated at 1.2-billion pounds of copper, 174-million pounds of nickel, 1.6-million combined ounces of platinum, palladium and gold, one-million ounces of silver and 6.2-million pounds of cobalt. Palladium is the predominant precious metals group product, totalling 1.2-million ounces.

NorthMet has proven and probable reserves of 290-million tons and a measured and indicated resource of 795-million tons.

Potential Job Creation
The project is expected to create more than 1 000 direct and spin-off jobs, and about two million-hours of construction labour.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 7% discount rate, of $173-million for Phase 1 and $271-million including Phase 2.

The project has an internal rate of return of 9.6% for Phase 1 and 10.3% including Phase 2.

Capital Expenditure
Capital costs for Phase 1 are estimated at $945-million and include refurbishment of the existing primary crushing circuit and replacing the existing rod and ball mill circuits with a new, modern semiautogenous grinding mill, ball mill and flotation circuit. It also includes rail upgrades, mining equipment and a state-of-the-art wastewater treatment plant.

Phase 2 will increase the project’s capital costs by about $259-million.

Planned Start/End Date
Not stated.

Latest Developments
Polymet has filed a petition for review to the Minnesota Supreme Court, seeking to overturn a state Court of Appeals ruling on March 23, which remanded the company’s air permit to the Minnesota Pollution Control Agency.

PolyMet is seeking Supreme Court review to clarify when a court of appeals can require an agency to make additional findings and whether it can presume, without evidence, that an agency will not enforce its permits.

This is the second petition the company has made to the Supreme Court to review a Court of Appeals’ decision. The Supreme Court on March 25 granted petitions for review from PolyMet and the Department of Natural Resources (DNR) on a ruling from the lower court, remanding the permit to mine and dam safety permits to the DNR.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Polymet Mining investor relations, Tony Gikas, tel +1 651389 4110 or email investorrelations@polymetmining.com.