Mr. Thomas Morris reports

NORTHERN SUPERIOR RESPONDS TO GOVERNMENT OF ONTARIO'S "FRESH AS AMENDED" STATEMENT OF DEFENCE

Northern Superior Resources Inc. received on April 15, 2014, the government of Ontario's revised statement of defence in response to the company's $110-million lawsuit against Ontario for failure to consult with first nations.

Ontario's revised response acknowledges that beyond sending a standard form letter identifying Sachigo Lake First Nation (SLFN) among others as an aboriginal community to be contacted, Ontario did not undertake any consultation nor did it assist Northern Superior in engaging with the community or in assessing the impact of the company's activities until after Northern Superior had been evicted from the area by SLFN and other first nations. Ontario also acknowledges that Northern Superior did all it could reasonably do to meaningfully engage with SLFN.

Ontario's "fresh as amended statement of defence" once again makes the same arguments heard previously from them and fails to address several key items of the company's lawsuit. Northern Superior is confident it can overcome these arguments as it believes they have no support in the law and are based on incorrect facts.

The position of Ontario is that the company has no right to complain when the government does nothing to discharge its constitutional obligation to consult with aboriginal communities, despite repeated and clear direction from the courts to the contrary, and the company is left to fend for itself at its own expense, particularly when issues arise with first nations, whether justified or not.

Ontario's position in the lawsuit also reaffirms that in Ontario, exploration and mining companies who retreat from areas from which they have been evicted by aboriginal communities and ensure that the rule of law is upheld will be left to their own devices, while companies that, in similar situations, risk or bring about civil disobedience and escalate matters, will be compensated through a government buyout of their mineral claims.

Ontario's revised response to the lawsuit further clouds the waters surrounding the reason for the creation in 2012, of the 23,000-square-kilometre mining exclusion zone in the area of Northern Superior's mineral claims. It also starkly highlights the risk for mineral exploration companies from action of this sort, which Ontario says it can take without any regard to the impact on companies conducting exploration nearby.

Northern Superior will be delivering a formal reply to Ontario's defence shortly, and looks forward to seeing Ontario's evidence and documentary support.

We seek Safe Harbor.