Mr. Paul Jones reports

NUINSCO TESTING TO ENHANCE CONCENTRATE PRODUCTION AT PRAIRIE LAKE HAS BEGUN

Nuinsco Resources Ltd.'s optimized metallurgical evaluation is under way to produce separate niobium (Nb2O5) and fertilizer-grade phosphorus (P2O5) concentrates from Prairie Lake mineralization. Already the second largest deposit of its kind in North America, this testing is designed to enhance Prairie Lake's economic viability.

"We've shown that Prairie Lake is big and has the potential to become much bigger, and demonstrated that we can produce a concentrate grading up to 23.6 per cent P2O5 using a non-optimized metallurgical process," said Paul Jones, president. "The potential to produce a concentrate containing greater than 30 per cent P2O5, as well as an Nb2O5 concentrate by optimizing the process is very real. This testing, if successful, combined with its location near existing power and transportation infrastructure, will greatly enhance Nuinsco's ability to create value from the Prairie Lake project."

The tests will take several months to complete, and will evaluate optimized gravity, flotation and magnetic separation methods. A 1,000-kilogram sample was submitted to Corem in Quebec City to evaluate production of an apatite concentrate that can attain the requirements of the fertilizer industry -- namely P2O5 content of greater than 30 per cent, calcium oxide/P2O5 less than 1.6 per cent and magnesium oxide (MgO) content less than 1 per cent. COREM conducted an earlier metallurgical program on Prairie Lake mineralization (see news release dated Nov. 4, 2010) in which it was demonstrated that the production of high-grade phosphorus concentrates is possible. Production of a second and distinct niobium/pyrochlore concentrate will also be investigated.

About Prairie Lake

Located about 45 kilometres northwest of Marathon, Ont., Nuinsco's Prairie Lake property covers the entire 2.8-square-kilometre (at surface) Prairie Lake carbonatite complex and is easily accessible from the TransCanada Highway. The Prairie Lake project hosts an exploration target mineralization inventory (ETMI) of 515 million to 630 million tonnes grading between 0.09 per cent to 0.11 per cent Nb2O5 (0.9 kilogram per tonne to 1.1 kg/t) and 3.0 per cent to 4.0 per cent P2O5 (see news release dated Oct. 26, 2011).

The ETMI increase places Prairie Lake well within the ranks of the 10 largest carbonatite-hosted niobium deposits in the world. In North America, Prairie Lake is second only to the Iron Hill project in Colorado, owned by Colorado Rare Earths Inc., in contained tonnes (the average grade at Prairie Lake is, however, greater). All of the mineralization is exposed at surface and could be exploited by simple quarrying methods. The suite of minerals of potentially economic significance also includes tantalum (Ta), uranium (U) and rare-earth elements (REE) (including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y)).

The ETMI was undertaken by Eugene Puritch, PEng, and Antoine Yassa, PGeo, of P&E Mining Consultants Inc. of Brampton, Ont. All exploration work is supervised by Paul Jones, PGeo, president, who acts as Nuinsco's qualified person under National Instrument 43-101. Mr. Jones has reviewed and approved the contents of this news release. The potential quantity and grade of the ETMI are conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the discovery of a mineral resource.

We seek Safe Harbor.