NICHROMET Extractions Inc. has concluded a joint venture agreement with CVRD for the exploration and development of the Guatemala Nickel properties.

Based on the results of the aeromagnetic survey recently concluded over central Guatemala, we increased our land position to almost 5,000 square kilometres of new potential laterite targets. This represents an area similar in size to that of the Cuban laterites, which currently represents near 30% of the world laterite reserves. On June 15 we finished a drilling program over La Union-Barios target located at the western portion of Baja Verapaz. The drilling identified laterite profiles of up to 53 meters, averaging 33 meters in thickness. The most important discovery here was the presence of garnierite in the rock and in the saprolite which is usually an indication of high nickel grades, usually more than 1%.

We are currently planning on conducting a GPR survey over 127 linear kilometres over a target at Sierra de Santa Cruz ophiolitic complex and a similar area at the Baja Verapaz ophiolitic complex. The objective is to define the volumes of the laterite on these targets. This will be follow by a drilling program that should start after the raining season on September.

CVRD has approved a budget of 5.5 million US dollars for 2008 which includes regional mapping, geochemical sampling, auger and trade sampling, pitting, metallurgical testing and drilling of nearly 25,000 meters on two targets while advancing the reconnaissance on another four targets.