Mr. Paul Jones reports

PRAIRIE LAKE METALLURGICAL STUDY CONTINUES TO PROVIDE IMPRESSIVE RESULTS

Nuinsco Resources Ltd. has released continued positive results from a second round of metallurgical testing from its 100-per-cent-owned Prairie Lake phosphorus-rare-metals project in Northwestern Ontario. Results continue to indicate the potential to produce a saleable phosphorus concentrate from Prairie Lake rock.

Recently received partial results refer specifically to the size range and purity of the apatite grains contained within the phosphorus concentrate produced. The primary use of apatite is in the manufacturing of fertilizer, and the fact that this mineral can be liberated by conventional methods is a further indication that a viable saleable phosphorus concentrate can be produced. As previously reported, preliminary results of metallurgical testing confirmed that a concentrate can be produced to meet the principal requirements of the fertilizer industry, namely, phosphorus (P2O5) content of greater than 30 per cent, and magnesium oxide (MgO) content less than 1 per cent, with calcium oxide/P2O5 less than or equal to 1.6.

"With these positive results and more expected, we can now consider discussions with potential buyers of the product," said Paul Jones, president of Nuinsco. "All indications so far are that Prairie Lake is an extremely valuable asset within Nuinsco's portfolio and these new metallurgical results serve to reinforce that belief."

A study of apatite grains contained within the concentrate revealed that a high proportion (greater than 75 per cent) of these grains are between 20 and 300 micrometres in size, and are very clear with few, if any, inclusions (which are typically other apatite grains, carbonate and very rarely other silicates). Typically, they are free grains having been well liberated by the grinding process; when not completely liberated, they are, for the most part, associated with carbonates and would be amenable to liberation due to a contrast in hardness between the minerals. On average, the apatite grains contain 43.1 per cent P2O5, 53.8 per cent CO2 and 4.61 per cent fluorine (average of 30 grains analyzed by electron microprobe). All of these factors point to ease of liberation and production of a clean apatite concentrate, and the amenability of the Prairie Lake rock to produce viable phosphorus concentrate.

An apatite concentrate was produced during initial metallurgical testing at COREM in Quebec City on a 1,000-kilogram sample submitted in September, 2011. In this second round of testing, the material was subjected to a more comprehensive study than in previous testing (see press release from April, 2012).

Prairie Lake is one of the largest deposits of its type in the world. Not only does it have tremendous scale, but its location near existing infrastructure and transportation networks, the relative ease with which it could be exploited from surface using quarry methods, the continuing potential for expansion of the known mineralization and now favourable phosphorus metallurgy all point to Prairie Lake being a very valuable asset within Nuinsco's property portfolio.

The National Instrument 43-101-compliant exploration target mineralization is 515 million to 630 million tonnes grading between 0.09 per cent to 0.11 per cent niobium (Nb2O5) (0.9 kilogram per tonne to 1.1 kilograms per tonne) and 3 per cent to 4 per cent P2O5. If this were confirmed as a resource, it would make Prairie Lake one of the world's 10 largest carbonatite-hosted niobium deposits (and in North America second only to the Iron Hill project in Colorado, United States, in contained tonnes). The current metallurgical work establishes the project as a substantial, recoverable phosphorus inventory. 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). A current economic analysis has not been completed and economic viability has not been established.

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. In January, 2012, Nuinsco bought back a 2-per-cent production royalty, making the property royalty free.

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 kilograms per tonne) and 3 per cent to 4 per cent P2O5 (see news release dated Oct. 26, 2011). 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, and Laura Giroux, PGeo, senior geologist, who act as Nuinsco's qualified persons under NI 43-101. Mr. Jones and Ms. Giroux have reviewed and approved the technical 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.