Mr. Renaud Hinse reports

UPDATE ON ELDER

Abcourt Mines Inc. has made progress at the Elder mine project.

Shafts, stations, drifts and escapeway rehabilitation

Repair work in the shaft is advanced. The rebuilding of the water catchers and the rocks catchers is the only work that remains to be done. The escapeway has been rehabilitated from surface to the eighth level at a depth of 331 metres. The company has to continue to the 10th level, and is presently working between the eighth and ninth levels. Some drifts have been rehabilitated and this work is continuing. To save money while waiting for the results of the preliminary economic assessment (PEA) study, the company is limiting the size of its rehabilitation crew to 18 persons.

PEA report

The PEA report being prepared by Roche, Groupe-Conseil, was expected to be completed at the end of August. There is going to be a small delay. The company will receive this week a few chapters in draft form to check and the rest of the report will follow soon. The final report should be available before the end of September.

Purchase of mine equipment

In the company's April, 2011, financing, an amount of $2.7-million was budgeted for the purchase of equipment, mainly locos, mine cars and drills. To date, in addition to pumps purchased for the mine dewatering and the radiotelephone system that it installed in the mine, the company has purchased 34 mine cars, 17 drills and several other prices of equipment. It is always looking for good used equipment. Purchases to make total a little more than $1-million.

We seek Safe Harbor.