Mr. Rene Galipeau reports

NUINSCO BUYS BACK 2% ROYALTY INTEREST ON PRAIRIE LAKE PROPERTY

Nuinsco Resources Ltd. has purchased back the 2-per-cent production royalty on its Prairie Lake phosphate and rare metals project in consideration for the issuance of 3,157,894 common shares of Nuinsco. The royalty was obtained by Stares Contracting Corp. in 2001.

"The buyback of this royalty enables Nuinsco shareholders 100-per-cent participation as the company moves forward to capitalize on the significant tonnage and tremendous upside potential at Prairie Lake," said Rene Galipeau, vice-chairman and chief executive officer. "Already the second largest deposit of its kind in contained tonnes in North America, we know that the tonnage at Prairie Lake has the potential to become much larger. The property is now royalty-free as we await the results of the ongoing metallurgical evaluation program."

Phosphorus rock represents a vital, non-renewable, resource that can be neither substituted nor recycled in agricultural applications. Hence total world demand must be met through the mining, beneficiation and processing of naturally derived sources. The increased needs of world food production assure the long-term growth in world phosphate rock demand (excerpted from Sis and Chander, 2003).

Optimized metallurgical evaluation is under way to produce separate niobium (Nb2O5) and fertilizer-grade phosphorus (P2O5) concentrates from Prairie Lake mineralization. It has already been demonstrated that a concentrate grading up to 23.6 per cent P2O5 can be produced using a non-optimized metallurgical process. The target is to produce a concentrate containing greater than 30 per cent P2O5 as well as a distinct Nb2O5 concentrate.

The testing is evaluating 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 Trans-Canada Highway. The Prairie Lake project hosts an exploration target mineralization inventory (ETMI) of 515 million to 630 million tonnes grading between 0.09 and 0.11 per cent Nb2O5 (0.9 to 1.1 kilograms per tonne) and 3.0 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.