NICKEL MINING: Crowflight crews to take over Bucko Lake operations

MANITOBA - Crowflight Minerals of Toronto intends to take over operation of its Bucko Lake nickel mine near Wabowden using its own crews and equipment. To facilitate the change from contract mining, Crowflight is temporarily suspending production at the mine to address certain operational issues. Meanwhile it is sourcing the equipment it requires and hiring its own mining team.

King Place Enterprises, the company's largest shareholder and creditor, has agreed in principle to help arrange a $20-million debt facility to cover equipment and other costs while mining is suspended.

Crowflight intends to rely less on contracted services. In this regard, Crowflight notes that it received written correspondence from Dumas Mining Contractors on Sept. 29, 2010, stating that Dumas intends to perfect a lien in respect of the Bucko Lake mining lease for work performed to date. Crowflight has disputed the amount that Dumas has claimed to be owed.

Water quality has also significantly affected milling operations. Crowflight continues to work with governmental authorities to obtain the required federal governmental permits to use Bucko Lake as its permanent tailings facility, which Crowflight believes will mitigate the water quality issues that have been encountered.

Visit www.Crowflight.com for further details regarding the restart of mining in the coming weeks.