Mr. Bob Komarechka reports

SUPREME METALS CORP. ACQUIRES COBALT PROJECT IN IOCG SETTING

Supreme Metals Corp. has entered into an agreement to acquire the Mount Thom copper-cobalt-gold deposit and surrounding project area. The Mount Thom property is believed to be an IOCG-type copper-cobalt-gold prospect located in central Nova Scotia, Canada, approximately 22 kilometres east of Truro. The project consists of 39 mineral claims over five contiguous licences and covers approximately 1,560 acres.

Highlights:

• IOCG-style deposit discovered by Imperial Oil in 1970s, only tested for copper;
• Levels of cobalt into the thousands of parts per million were later recognized in mineralized outcrop and rubble crop from the trenches with historical assays up to 0.57 per cent Co;
• Non-National Instrument 43-101-compliant historical resource of 300,000 tonnes of copper grading 1.5 per cent;
• Over 3,500 metres of existing drill core ready for immediate reassay, not yet tested for cobalt;
• Untested regional targets offering significant cobalt exploration potential;
• Infrastructure rich with both a highway and power line within the project.

Bob Komarechka, PGeo, chief executive officer of the company, commented: "The Mount Thom cobalt project includes a historic deposit explored before the IOCG-style deposit model was well understood. IOCG targets can contain rich and mass tonnage orebodies that have the ability to be world-class in scale, such as the supergiant 2.95-billion-tonne Olympic Dam deposit in Southern Australia.

"A 2001 study by the Nova Scotia Department of Resources, conducted over 20 years after Imperial Oil made its discovery at Mount Thom, concluded that significant similarities exist between the copper-gold occurrences along the Cobequid-Chedabucto fault zone, such as Mount Thom, with those of IOCG deposits, like Olympic Dam.

"Nova Scotia is an extremely mining-friendly environment, and we are fortunate to have well-archived core to accelerate our understanding of this project from day one, by, amongst other things, testing the existing core for a suite of metals and minerals that may have been overlooked prior to the understanding of the geological setting underlying the project.

"With easy access to the project by way of the Trans-Canada Highway, we look forward to deploying modern-day exploration methods and technology to not only re-evaluate the identified deposit but also to explore for additional mineralization and new deposits over the 1,560-acre project area.

"We're pleased to add Mount Thom as a near-drill-ready cobalt exploration prospect to our growing cobalt project portfolio."

About the Mount Thom cobalt project

The Mount Thom property covers a historical copper deposit discovered in the early 1970s by Imperial Oil. The deposit is now recognized as having affinities to IOCG-style deposits. Assays of up to 1.66 per cent copper over 15.5 feet were reported by Imperial Oil. IOCG deposits were essentially unknown at the time of the discovery of Mount Thom, and Imperial Oil did not accordingly have benefit of this model to guide its exploration. Subsequent to Imperial Oil, the mineralization was found to contain high concentrations of cobalt assaying up to 0.57 per cent cobalt (see Nova Scotia assessment report AR2005-005).

At the time of discovery, Imperial Oil drilled 49 largely shallow diamond-drill holes at the project for a total of 3,185 metres (see also Nova Scotia minerals update, "Does the Mt. Thom Cu-Co-Au prospect have an igneous parent? fall 2011"). A non-NI 43-101-compliant historical resource of 300,000 tonnes of copper grading 1.5 per cent was estimated from that past drilling (see Nova Scotia assessment report AR95-074). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the issuer is not treating the historical estimate as current mineral resources or mineral reserves. The company cautions that there is a risk further exploration will not result in the delineation of a current mineral resource.

Moving forward, Supreme Metals believes modern-day exploration techniques at the Mount Thom project will also benefit from the infrastructure-rich nature of the project. The four-lane Trans-Canada Highway No. 104 crosses the southern portion of the property, and a network of secondary roads makes the project highly accessible. In addition, a major power transmission line also crosses the property.

Transaction terms

The company is acquiring the Mount Thom Cobalt project from arm's-length parties in exchange for 2.5 million common shares of the company, a cash payment of $20,000 and the granting of a 1.5-per-cent gross royalty.

Qualified person

Mr. Komarechka, PGeo, a qualified person under NI 43-101 regulations, has reviewed the technical data for accuracy.

About Supreme Metals Corp.

Supreme Metals is a Canadian-based exploration company with a focused approach in the area of green and energy metals in the Western world adjacent to anticipated downstream manufacturing projects that will have a significant need for these metals.

We seek Safe Harbor.