Minnesota

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North America's Emerging Nickel-Copper-PGM Camp
in Minnesota, USA
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Cautionary and Forward Looking Statement

• No regulatory authority has approved or
  disapproved the information contained in this
  presentation. This presentation includes certain
  statements that may be deemed forward looking
  statements. All statements in this presentation,
  other than statement of historical facts, that
  address future production, reserve potential,
  exploration drilling, exploitation activities and
  events or developments that the Company expects
  are forward-looking statements. Although the
  Company believes the expectations expressed in
  such forward-looking statements are based on
  reasonable assumptions, statements are not
  guarantees of future performance and actual
  results or developments may differ materially
  from the forward-looking statements. Factors
  that could cause actual results to differ
  materially form those in the forward-looking
  statements include market prices, exploitation
  and exploration successes, continued availability
  of capital and financing, general economic,
  market or business conditions. Investors should
  be cautious that any such statements are not
  guarantees of future performance and that actual
  results or developments may differ materially
  from those projected in the forward-looking
  statements. The company does not undertake to
  update or revise any forward-looking statements,
  whether as a result of new information, future
  events or otherwise, save and except as may be
  required by applicable securities laws.

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Duluth Complex Location
Nokomis Deposit
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Northern Minnesota Welcomes Mining

• 100 year history of Iron Ore mining
• Currently produces 80 of US production
• Infrastructure in place
• Experienced work force
• Politically stable
• Community understands supports mining
• State wants diversification to non-ferrous metals

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New Iron Mining Investment
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The Minnesota Minerals Diversification Program

• Established by the Minnesota Department of
  Natural Resources to plan for diversified mineral
  development
• - to increase the knowledge of the States
  mineral potential
• - to stimulate the development of mineral
  resources in the State of Minnesota and
• - to promote basic mineral research.

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State Perspective on Nickel-Copper Mining
Mark Holsten Commissioner of Minnesota
Department of Natural Resources The State of
Minnesota recognizes the importance of
copper-nickel mining to the State August 12,
2008 Marty Vadis Director Minnesota
Department of Natural Resources Division of Lands
and Minerals According to the Minnesota Statute
93.001 Policy for Mineral Development It is the
policy of the state to provide for the
diversification of the States mineral economy
through longterm support of mineral exploration,
evaluation, environmental research, development,
production, and commercialization. April 24,
2008
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Metals in the Duluth Complex

• Why are base metal companies attracted to the
  Duluth Complex in Minnesota?
• One of the worlds largest nickel/copper sulphide
  bodies
• History of mining
• Mining culture
• Infrastructure
• NRRI University of Minnesota (Duluth)

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Duluth Complex 4.4 Billion Tons of
Copper-Nickel Mineralization
MGS UM (Miller et. al., 2002) estimated that
there were 13 known Cu-Ni deposits (to date) in
the Duluth Complex that combined could host a
theoretical resource of 4.4 billion tons of
copper-nickel ore averaging 0.66 Cu and 0.20 Ni
using a cut-off grade of 0.50 Cu equivalent.
Duluth Metals Nokomis Deposit is one of the
Duluth Complex properties. These resources
do not conform to NI43-101 standards.
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Ranked with the worlds Nickel/Copper Sulphide
Deposits
Duluth Complex Importance of Metals

• 3 in Nickel Content
• 2 in Copper Content
• 2 in Platinum Group Metals Content

Proportion of U.S. Resources

• 95 of U.S. Nickel Resources
• 34 of U.S. Copper Resources
• 75 of U.S. Platinum Group Metals Resources
• Based on USGS 2005 Mineral Commodity Reports
  and do not conform to NI43-101 standards.

Excellent infrastructure close to ports, rail,
workforce and power
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Duluth Complex
Reproduced from the NRRI website
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Duluth Complex
Reproduced from the NRRI website
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Non-ferrous Mining Activity
Franconia
Duluth Metals
Franconia
Franconia
Teck Cominco
Polymet
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(No Transcript)
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Nokomis DepositMineralized Areas Included in the
Interim Resource Estimate
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Nokomis Deposit NI 43-101 Interim Resource
Estimate

• NI 43-101 Estimate by Scott Wilson RPA
• dated June 2008
• Scott Wilson RPA estimated the Mineral Resource
  using average long-term metal US prices of
  1.75/lb copper, 7.00/lb nickel, 10.00/lb Co,
  600/oz Au, 1100/oz Pt and 350/oz Pd.
• Copper equivalent (CuEq) Cu 3.03 x Ni
  0.63 x Co 0.30 x Au g/t 0.76 x Pt g/t 0.24
  x Pd g/t based on expected metal prices and
  process recovery and refining charges.
• Cu Equivalent cut-off grade methodology
  approximates 0.4 Cu

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Nokomis Deposit CONTAINED METALS IN EXPANDED
NOKOMIS RESOURCE
Based on resource estimated at 1.0 copper
equivalent cut-off. Reference January 18, 2008
Technical Report on the Preliminary
Assessment on the Nokomis Project, Minnesota,
U.S.A.
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Scoping Study Results1
Base Case Prices 1.75/lb Cu 7.00/lb Ni
10.00/lb Co 1,100/oz Pt 350/oz Pd 600/oz
Au. Market Case Prices As of January 13,
2008 prices. 1 Reference January 18, 2008
Technical Report on the Preliminary Assessment
on the Nokomis Project, Minnesota, U.S.A.
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Scoping Study Results

• Annual Production

Reference January 18, 2008 Technical Report on
the Preliminary Assessment on the Nokomis
Project, Minnesota, U.S.A.
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Metal Value Contributions
Base Case Metal Distribution Reference January
18, 2008 Technical Report on the Preliminary
Assessment on the Nokomis Project, Minnesota,
U.S.A.
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Forecast Production Cost
Viewed as a Copper Mine (with all other metals as
by-product credits)
Including Capital Costs
Not Including Capital Costs
4 6 2 0 -2 -4 -6 -8 -10
4 6 2 0 -2 -4 -6 -8 -10
Base Case
Market Case
Base Case
Market Case
Cost per Pound of Production
0.02
-0.44
-2.08
-1.62
Based on NI 43-101 January 2008 Scoping Study
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Forecast Production Cost
Viewed as a Nickel Mine (with all other metals as
by-product credits)
Including Capital Costs
Not Including Capital Costs
4 6 2 0 -2 -4 -6 -8 -10
4 6 2 0 -2 -4 -6 -8 -10
Market Case
Base Case
Base Case
Market Case
Cost per Pound of Production
-0.27
-2.21
-8.04
-9.97
Based on NI 43-101 January 2008 Scoping Study
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Proposed Nokomis Operations
UNDERGROUND MINE
HYDROMET REFINE
CRUSH GRIND
PLATINUM/GOLD REFINERY
FLOAT CONCENTRATE
ELECTRO-WIN COPPER/NICKEL
METAL MARKETS CONSUMERS
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Metallurgical Test Results
SGS Lakefield Metallurgical Tests
Processing undertaken in autoclaves, not
smelters.
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The PLATSOL Process
Very high extractions of Cu, Ni, Co, Au, Pt, Pd
( some Ag) in one step Ores from the Duluth
Complex respond well to bulk flotation Can also
produce saleable Cu concentrate Best value from
paymetals if bulk concentrate
hydrometallurgical treatment of conc. Could
start selling concentrate (Bulk Selective) to
generate revenues while building a
hydrometallurgical plant
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Platsol Uses Conventional Technologies

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Permitting Process A 3-way State, Federal
Duluth Metals Partnership
 
State of MN
Federal Govt.
Duluth Metals
Duluth Metals recognizes environmental
guardianship as an important corporate priority,
and is working closely with State and Federal
agencies to establish policies, programs and
practices for conducting our business in an
environmentally sound manner.
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Environmental Stewardship

• Environmental planning and coordination is
  critical to the success of the Nokomis Project,
  and Duluth Metals has made this a PRIORITY
  ACTIVITY in the permitting process.
• Environmental work is currently being undertaken
  for
• Baseline Data Collection ? EIS ? Permitting
• Pre-Feasibility Study ? Feasibility Study ? EIS ?
  Permitting
• Pilot Plant Testing ? Waste Analysis ?
  Engineering Studies ? EIS ? Permitting
• Waste Characterization ? Engineering Studies ?
  EIS ? Permitting
• Preference Right Lease Conversion ? EIS ?
  Permitting
• Baseline environmental studies are performed
  to characterize conditions prior to operating and
  provide information necessary for the permitting
  process.
•  

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Duluth Metals Permitting - Current Status -

• 30 Environmental contracts and work orders are
  currently underway, with current spending of
  approximately 2.0 M.
• Dedicated environmental professional staff
  working together with our lead environmental
  consultants.
• Major baseline studies ongoing, including water
  quality (surface and sub-surface), flora and
  fauna, noise and visual studies, among others.
• Frequent meetings with State and Federal
  officials.
• Already reached agreement with Agencies on
  certain process items relating to what is to be
  studied and evaluated, including specific surface
  and sub-surface water issues.
• The Minnesota Department of Natural Resources
  (DNR) and the Minnesota Pollution Control Agency
  (MPCA) have been helpful in providing feedback on
  the development and advancement of the Nokomis
  Project.

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Project Schedule

• In 2008
• Updated Resource Estimate received June 2008
• Scoping Study - received January 2008
• Ongoing Drilling includes infill drilling on
  Western area and step out drilling on Eastern
  and Southern areas
• Ongoing Studies, including
• - Metallurgical Studies for optimization
• - Bulk Sampling for Large Scale Metallurgical
  Testing
• - Environmental Studies Permitting
  Assessments
• - Mining Engineering Planning Studies
• - Infrastructure Studies
• - Labor Studies
• Initiation of Pre-Feasibility Study

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Duluth Metals Limited
TSXDM