Mr. Paul Jones reports

NUINSCO ANNOUNCES THAT PROCESSING OF PRAIRIE LAKE BULK SAMPLE HAS BEGUN

Nuinsco Resources Ltd. has commenced initial processing of a 30-tonne sample of carbonatite rock extracted from its Prairie Lake phosphorus-rare metals-niobium project in Northwestern Ontario.

Nuinsco shipped the 30-tonne sample late last year (see news release dated Nov. 7, 2013), for processing by a leading United States-based mineral technology company that has developed a proprietary method to cost-effectively recover certain high-value minerals, including the suite of rare earth elements (REEs) present in Prairie Lake mineralization.

Now that processing has started, the next step is for the mineral technology company, which Nuinsco is working with under the terms of a non-disclosure agreement, to provide an initial report on extraction rates and cost analysis for REEs. Scheduled completion is in the first quarter of 2014. Secondary product analysis, recovery rates and cost estimates are expected to be available in the second quarter of 2014. Samples from the processed rock have been sent to a third party lab for independent verification of mineral/elemental content.

"Although this study has been designed to evaluate the broad number of elements that might potentially be economically extracted, the focus is on the REEs identified at Prairie Lake, as these can be difficult to liberate using conventional processing," said Paul Jones, chief executive officer.

Extensive mineralogical analysis done by COREM in Quebec City indicates that the phosphate mineral apatite at Prairie Lake contains unusually high concentrations, relative to other carbonatite intrusive complexes, of light rare earth oxides (LREO) and in particular neodymium oxide. Amongst the light rare earths, neodymium is particularly valued because of the critical importance of neodymium-based permanent magnets in the manufacture of a range of new technological products, including the high-performance electric motors and generators used in, for example, hybrid electric vehicles and megawatt-scale wind turbines.

"Given that the known size of the Prairie Lake phosphate mineralization (National Instrument 43-101-compliant exploration target mineralization inventory (ETMI) of 515 to 630 million tonnes) is much larger than most commercial REE deposits, the potential for the recovery of neodymium from Prairie Lake concentrate takes on added significance," said Mr. Jones.

About Prairie Lake

Located about 45 kilometres northwest of Marathon, Ont., Nuinsco's 100-per-cent-owned, royalty free 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 suite of minerals of potentially economic significance also includes tantalum, uranium, niobium and REEs (including lanthanum, cerium, samarium, neodymium and yttrium). The NI-43-101-compliant ETMI (see news release issued Oct. 26, 2011) is 515 million to 630 million tonnes with combined REEs (Ta plus Ce plus Sm plus Nd and Y) of 1,370 to 1,660 grams per tonne, and also grading between 0.09 per cent to 0.11 per cent niobium pentoxide (0.9 to 1.1 kilograms per tonne) and 3 per cent to 4 per cent phosphorus pentoxide, making 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, U.S., in contained tonnes -- the grade at Prairie Lake is however greater). The current metallurgical work establishes the project as a substantial, recoverable, phosphorus inventory. The ETMI, calculated on only a small proportion of the entire Prairie Lake intrusion, was undertaken by Eugene Puritch, PEng, and Antoine Yassa, PGeo, of P&E Mining Consultants Inc. of Brampton, Ont.

All exploration work at Prairie Lake is supervised by Laura Giroux, PGeo, senior geologist, who acts as Nuinsco's qualified person under NI 43-101. Ms. Giroux has 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.