McFauld's Lake Area-Hawk/Noront JV Property, Ontario

PROPERTY OWNERSHIP:
Hawk has an option agreement with Noront Resources Ltd to acquire a 50% interest in 10 claim units – 160 claims totaling approximately 2,590 hectares (6,400 acres) in the McFauld’s Lake area, James Bay Lowlands, Ontario, to the north of Noront’s 2007 nickel-copper-PGM discovery.

PROPERTY DESCRIPTION:
The Hawk claim area is located approximately 400km northwest of Moosonee, 59km east of the community of Webequie, in the McFauld’s Lake Area of the James Bay Lowlands of Northern Ontario, better known as the ‘Ring of Fire’.

PROPERTY GEOLOGY AND HISTORY:
In September 2007, Noront announced the discovery of a magmatic massive sulphide (MMS) occurrence within its Double Eagle Project that yielded some exceptional grades including 5.9% nickel (Ni), 3.1% copper (Cu), 2.87g/t platinum (Pt) and 9.78 g/t palladium (Pd) over 68.3 metres (see NOT 07-05) as well as 6.3% nickel, 2.8% copper, 1.9 g/t platinum and 10.2 g/t palladium over 46.2 metres (see NOT 07-27), as well as more recent indications of rhodium over significant widths on its Eagle One deposit. The Eagle Two discovery is approximately 2km south-west of the Eagle One deposit. Media coverage of the Eagle One and the Double Eagle Projects have compared this new discovery to the discovery at Voisey Bay in the 1990’s (141 million tonnes 1.6% Ni - 32 million tonnes 2.8% Ni and 1.59% Cu). Noronto, however, has not made this comparison, but suggests analogies to Xstrata’s nickel project in Raglan or the Jinchuan MMS deposit in China.

Publicly released drill results since the discovery have helped define and expand a mineralized zone that remains open to the south and at depth.

Noront confirms that it has completed 5,047 metres of diamond drilling in 27 drill holes. Current published drill results include values up to 117 metres grading 4.1% nickel, 2.2% copper, 2.1 g/t platinum, and 7.1 g/t palladium beginning 7 metres below the surface. The discovery of this type of high grade mineralization is rare, especially when occurring close to the surface. The deposit was masked by Paleozoic limestones overlain by a few metres of muskeg swamp and as such went undetected by others exploring in the general area.

The infrastructure associated with the DeBeers’ Victory diamond mine site located 150 miles to the east attests to mining companies overcoming the logistical challenges of building a mine in this environment – this project is scheduled for full production during 2008 and may provide all the companies working in the area with better access to the entire region, and could improve the economics of these projects.

WORK COMPLETED:
Noront, as exploration manager on the 10 claim units of the Hawk 50/50 JV Project, has completed in excess of 345km of helicopter-borne AeroTEM II and Magnetic Survey at 100m line spacing by Aeroquest International Ltd. Ground detail follow-up consisted of approximately 132 line km of ground geophysical surveys, including HLEM - Max-Min (horizontal loop electromagnetics), ground magnetometer and VLF (very low frequency) electromagnetic surveys. A second airborne electromagnetic and magnetic survey was flown over the property using Geotech Ltd – VTEM technology.

Scott Hogg & Associates was retained to conduct the interpretation of the airborne geophysical surveys and submitted the preliminary interpretation. The airborne geophysical targets identified were followed up by a number of ground geophysical surveys including HLEM – Max-Min, magnetic and gravity surveys to better define the airborne geophysical targets.

CURRENT WORK PROGRAM:
An initial 3-hole diamond drill program totalling 450m is scheduled to begin during the first week of October 2008 on the Hawk/Noront JV Property.