NNAANN

NNAANN

DISCOVERY OF DISCOVERY OF THE STORLIDEN Cu-Zn VMS DEPOSITTHE STORLIDEN Cu-Zn VMS DEPOSIT

A NEW VMS TYPE IN THE SKELLEFTE MINING DISTRICTNORTHERN SWEDEN

NORTH ATLANTIC NATURAL RESOURCES AB

Uppsala, Sweden

NNAANN

A NEW EXPLORATION COMPANY

• JANUARY 1997 - FORMATION OF NAN

• JUNE 1997 - IPO ON STOCKHOLM EXCHANGE

• AUG. 1997 - AIRBORNE GEOPHYSICAL SURVEY

• FEB. 1998 - GROUND FOLLOW-UP, DRILLING

• MAR. 1998 - STORLIDEN DISCOVERY HOLES

• JUNE 1998 - HIGH-GRADE CU-ZN

• NOV. 1998 - 1.8 Mt - 10% Zn, 4% Cu

NNAANN

NAN CORPORATE STRUCTURE

• 39% BOLIDEN AB

• 39% SOUTH ATLANTIC RESOURCES LTD.

• 22% PUBLIC

• LISTED ON STOCKHOLM EXCHANGE

• 31.2 M SHARES OUTSTANDING

NNAANN

WHY SWEDEN?

• UNDER-EXPLORED PROSPECTIVE GROUND

• NEW MINING LEGISLATION - 1993

• WORLD CLASS MINERAL DEPOSITS

• EXCELLENT INFRASTRUCTURE

• LONG MINING TRADITION - 800 YEARS

• STABLE ECONOMIC & POLITICAL CLIMATE

• MINING CENTER OF EUROPE

NNAANN

SWEDEN - WORLD CLASS DEPOSITS• KIRUNA

– 2.6 Bt 63% Iron

• BOLIDEN – 8 Mt - 15.5 g\t Au (4 M oz)

• FALUN – 34 Mt - 5% Zn - 0.7% Cu - 2% Pb

• ZINKGRUVAN – 29 Mt - 8 % Zn - 4% Pb

• LAISVALL– 108 Mt - 4% Pb

NNAANN

SWEDEN - MINING CENTER OF EUROPE

MINE PRODUCTION 1997

PRODUCTION EU EUROPE % EU

GOLD (T) 7.3 1 1 34

SILVER (T) 281 1 2 48

COPPER (kT) 81 2 4 44

LEAD (kT) 113 1 1 55

ZINC (kT) 164 2 2 29

IRON Ore (MT) 22 1 1 92

NNAANN

Geological Provinces - Baltic Shield

NNAANN

NANProject Map

SWEDEN

N

500

F I N L A N D

BERGSLAGEN DISTRICT

Kilometres

Helsinki

Svartliden

Solberget Project

Stockholm

0

B a l t i c S e a

RöjnoretGrundfors

SkellefteåHögbränna

R U S S I A

Ahmavuoma

Älgtorp

Jugansbo

Vikersvik

Risliden

Hinsen

S W E D E N

Sjökälla

N o r w e g i a n S e a

Kaalasluspa

Norrliden

N O R W A Y

Oslo

Hällefors

Dubblon

Storliden

NORRBOTTEN DISTRICT

Mining District

N o r t h S e a

NAN Project

SKELLEFTE DISTRICT

September, 1998

NORRBOTTEN

SKELLEFTE

BERGSLAGEN

NNAANN

Piteå

Luleå

Skellefteå

25 km

Rönnskär Smelter

95

Boliden

Arvidsjaur

370

Norsjö

Sorsele

NorrbottenVästerbotten

Malå363

Storliden

Lycksele

E12

The Skellefte District

0 50

SKELLEFTE

SMELTER

BOLIDEN MILL

MALA

NNAANN

ORE DEPOSITS IN THE SKELLEFTE FIELD

0 50

N

KRISTINEBERG

BOLIDEN

RENSTROM

MALA

NNAANN

52 KNOWN VMS DEPOSITS: +100 KT (ALLEN, ET. AL., ECON GEOL, 1996)

10

50

100

Cum

mul

ativ

e fr

eque

ncy

%

Million Metric Tonnes30

Volcanic setting

Uncertain settingsRhyolite porphyry cryptodome-tuff cone Thin member or rhyolite porphyry cryptodome-tuffcone within other rhyolitic, dacitic or andesitic complexesDacite-andesite-basalt complex with mineralisedrhyolite porphyriesOther (and undifferentiated) rhyolite volcanoesDacite-andesite-basalt complex with no rhyoliteporphyries near ore

Maurliden EPetiknäs N

Svansele S & MensträskKankberg

Norrliden & SvanseleLångdal Petiknäs S

Boliden RenströmLångsele

Kristineberg Rackejaur

0.1 1.0 100 Mt20105

MEDIAN: 1.1 MT

NNAANN

The Skellefte District Simplified Geology

Malå

Revsund granitesEarly orogenic granitoidsEarly orogenic gabbro

Mafic volcanicsFelsic volcanicsMetasedimentary rocks

KRISTENEBERG

MALA

BOLIDEN

NAN in The SKELLEFTE DISTRICT

Norsjö Boliden

Adak

0 10 20 km

N

KRISTINEBERG

MALA

BOLIDEN

NNAANN

NAN in The SKELLEFTE DISTRICT

STORLIDESTORLIDENN

Norsjö

Malå

Kristineberg

Boliden

Adak

0 10 20 km

N

KRISTINEBERG

BOLIDEN

MALA

NNAANN

ORE DEPOSITS IN THE SKELLEFTE FIELD

0 50

N

KRISTINEBERG

BOLIDEN

RENSTROM

MALA

STORLIDEN

NNAANN

COLORED AIRMAG WITH GEOTEM ANOMALIES

0 2 km

N

NNAANN

GEOTEM Airborne Discovery Profile

STORLIDEN ANOMALY

Line 1264Anomaly: ACTP: 61 siemensDepth: 58 metresNC: 12A

NNAANN

COLORED AIRMAG WITH EM & SCOUT DH

NNAANN

HLEM Profile with DH 1 and DH 2

NNAANN

THE STORLIDEN PROJECT

NNAANN

TEM ProfilewithDrill Results

Interpreted TEM Conductor

Low grade lens massive sulphide

High grade lens massive sulphide

NNAANN

TEM Survey and Scout Drill Holes

NNAANN

Cross section 20200 E

MASSIVE CU-ZN SULPHIDE STRINGER ZONE

SEDIMENTS

TUFFITES

TILLSURFACE

NNAANN

DEPOSIT CHARACTERISTICS

DIP : 20º SW

STRIKE LENGTH : 400 M

WIDTH : 60-80 M

DEPTH : 100 - 160 M

ORE DENSITY : 3.4 g\cc

OVERBURDEN : 20-25 M TILL

OUTCROP : 1.5 KM SE

NNAANN

DEPOSIT CHARACTERISTICS

MINERALIZATION : MASSIVE, COARSE-GRAINED HIGH-GRADE CPY, ZNS W/ PO

HOSTROCK : TUFFITES, SEDIMENTS, DIKES

ALTERATION : CORDIERITE, ACTINOLITE, CARB.

MODE : “STACKED”, STRATIFORM LENSES

ZONING : CU RICH - SOUTHERN CU-ZN RICH - CENTRAL ZN RICH - NORTHERN

PBS, AU, AS - SOUTH MARGIN

GENESIS : SUB-SEAFLOOR REPLACEMENT?

NNAANN

A NEW VMS DEPOSIT• GRADES : 3X ZN, 4X CU

• LOW AU, AG, AS

• LOW ANGLE DIP

• LACK OF PYRITE

• LACK OF DEFORMATION

• HIGH STRATIGRAPHIC POSITION?

• COARSE GRAINED ORE TEXTURE

NNAANN

OUTLINE OF DEPOSIT AND DRILL HOLES

A

B

NNAANN

STORLIDEN - CROSS SECTION 20200 E

DDH From To Length Cu (%) Zn (%) Ag(ppm) Au(ppm)98018 145.00 176.60 31.60 3.38 7.95 23.70 0.34

(154.30 165.40 11.10 3.92 21.03 26.50 0.21) 98022 110.00 147.30 37.30 6.03 12.29 26.27 0.22 (110.00 123.20 13.20 5.48 5.17 22.10 0.18)

(126.20 147.30 21.10 7.23 18.49 28.67 0.26) 98068 102.40 106.40 4.00 0.84 1.32 39.78 0.27

110.00 111.000 1.00 1.86 2.59 21.10 0.18118.05 122.05 4.00 2.18 7.00 19.69 0.36126.50 150.05 23.55 6.40 21.09 25.43 0.30

98020 145.00 151.55 6.55 5.00 24.00 21.20 0.23

A B

NNAANN

STATEMENT OF RESOURCE

57 Drill Holes

RESOURCE TONNES %ZN %CU g\t AG g\t AU

INDICATED 1,500,000 11.5 4.4 28 0.3

INFERRED 300,000 3.4 2.4 33 0.3_______________________________________________

COMBINED 1,800,000 10.0 4.0 29 0.3

IN-SITU METAL IN TONNES

ZINC 182,500

COPPER 73,000

NNAANN

TYPICAL SKELLEFTE VMS DEPOSIT

GRADE 3% Zn, 0.7% Cu, 0.4% Pb, 2 g\t Au, 50 g\t Ag

TONNAGE 1.1 Million Tonnes (Median)

AGE Early Proterozoic 1.90 - 1.87 Ga

HOST Felsic Volcanics near Sedimentary Contact

ALTERATION Quartz-Sericite-Pyrite

ORE TYPES Sphalerite-Chalcopyrite-Galena withPyrite-Pyrrhotite-Arsenopyrite-Chlorite

ZONING Cu Central, Zn & Pb distal

GENESIS Submarine Volcanism

NNAANN

GEOLOGICAL SETTING - MALÅ 23 I

NNAANN

52 KNOWN VMS DEPOSITS: +100 KT (ALLEN, ET. AL., ECON GEOL, 1996)

10

50

100

Cum

mul

ativ

e fr

eque

ncy

%

Million Metric Tonnes30

Volcanic setting

Uncertain settingsRhyolite porphyry cryptodome-tuff cone Thin member or rhyolite porphyry cryptodome-tuffcone within other rhyolitic, dacitic or andesitic complexesDacite-andesite-basalt complex with mineralisedrhyolite porphyriesOther (and undifferentiated) rhyolite volcanoesDacite-andesite-basalt complex with no rhyoliteporphyries near ore

Maurliden EPetiknäs N

Svansele S & MensträskKankberg

Norrliden & SvanseleLångdal Petiknäs S

Boliden RenströmLångsele

Kristineberg Rackejaur

0.1 1.0 100 Mt20105

MEDIAN: 1.1 MT

STORLIDEN

NNAANN

MOST VALUABLE DEPOSITS - SKELLEFTE DIST.

MINE Mt %Zn %Cu %Pb g/tAu g/tAg $/t GIV MUS$ 1. Kristeneberg 22 3.2 1.2 0.4 1.0 32 73 1600

2. Boliden 8 0.9 1.4 0.3 15.5 50 184 1500

3. Renstrom 9 6.5 0.8 1.5 2.8 155 144 1300

4. Langsele 12 3.9 0.6 0.3 0.9 25 67 800

5. Petiknäs 6 4.8 1.1 0.9 2.3 108 115 750

6. Ravlidmyran 8 3.9 1.0 0.6 0.8 51 79 600

7. Udden 7 4.3 0.4 0.3 0.7 36 68 455

8. Maurliden W. 7 3.4 0.2 0.4 0.9 49 59 407

9. STORLIDEN 2 10.0 4.0 0.1 0.3 30 210 378

NNAANN

STRATIGRAPHY & ORE DEPOSITS

Skellefte Group Volcanics

Vargfors Sediments

1890 Ma

1882 Ma

1873 Ma

SENW

ALLEN, ET. AL.

STORLIDEN?

LANGSELELANGDAL

MAURLIDEN

MENSTRASK

HOLMTJARN

NNAANN

LOCATION MAP

365 m365 m

707 m

250 m

760 m

250 m

985

m

385 m

260 m

735 m

365 m

Shortest distanceNorth 707 mSouth 985 m

Ramp options

NNAANN

UNDERGROUND MINING OPERATION

SCHEMATIC CROSS SECTION

ORECU-ZN

RAMP

PORTAL

Drill holes N

NNAANN

SWEDENS NEWEST MINE

90 KM FROM BOLIDEN MILL

140 KM FROM BOLIDEN SMELTER

2 KM FROM ASPHALT HIGHWAY

3 KM FROM POWERLINE

8 KM FROM TOWN OF MALA

TRAINED WORK FORCE

YEAR-ROUND ACCESS

NNAANN

PROJECT TIMETABLE

PROJECT NET CASH FLOW WITH DIFFERENT METAL PRICES

-25

-15

-5

5

15

25

35

45

55

65

75

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007US$

mil l

ions

ENVIRONMENTALFEASIBILITYCONSTRUCTIONDEVELOPMENTPRODUCTIONREHABILITATION

NNAANN

SKELLEFTE EXPLORATION TARGETS

NANTARGET INVENTORY

Skellefte District, Feb. 5, 1999

Production

Development

Feasibililty

Pre-feasibility

Reserve

Resource

Detailed Drilling

Definition Drilling

Scout Drilling

Ground Surveys

Target Selection

TARGETS

NNAANN

MAIN OFFICE: UPPSALA

FIELD OFFICES: 2 - SKELLETE DISTRICT

30 EMPLOYEES

2,500 KM2 IN SKELLEFTE MINING DISTRICT

AIRBORNE SURVEY TARGETS

AGGRESSIVE DRILL PROGRAM

$10 MILLION CASH

DISCOVERY OF THE STORLIDEN CU-ZN DEPOSIT

DEVELOPMENT OF NORRLIDEN CU-ZN DEPOSIT

NAN TODAY

NNAANN

NNAANN

NNAANN

STORLIDEN - LN. 20100E CROSS SECTION

A B

NNAANN

MAJOR

TECTONIC

UNITS

SWEDEN

NNAANN

STRATIGRAPHY & ORE DEPOSITS

Skellefte Group Volcanics

Vargfors Sediments

1890 Ma

1882 Ma

1873 Ma

SENW

ALLEN, ET. AL.

LANGSELELANGDAL

MAURLIDEN

MENSTRASK

HOLMTJARN