Wallbridge Mining Company Limited - Xstrata Nickel JV - Wallbridge - Xstrata Nickel Joint Ventures

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Xstrata Nickel JV and Royalty Properties
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Exploration on the Frost Lake, Wisner and Graham joint venture properties continued with mapping, prospecting,borehole geophysics and 3D modelling of new and historic data to better define exploration targets for 2010.

The 3D model for the Frost Lake property was updated in 2009 to take into account the new PGE mineralization discovered in 2008 and new structural mapping data collected in 2009. This work demonstrated that exploration for the discovery of new occurrences of low sulphide PGE mineralization should be
concentrated in the mafic to intermediate gneissic rocks exposed to the north of the Amy Lake trenches and that structural trends to the north-east and south-west likely were conduits for mineralizing fluids. Drilling is proposed to test this target in 2010.

In 2006, the 4X Joint Venture between Wallbridge and Xstrata Nickel, which previously covered three properties (Frost Lake, Wisner, and Parkin) was restructured into four separate agreements, (Wisner, Frost Lake, Parkin, Broken Hammer) in order to allow Wallbridge to pursue a wider range of development options for the Broken Hammer and Parkin resources and to allow Xstrata Nickel flexibility in funding the exploration of the other properties.

Under the terms of the new agreements Wallbridge acquired Xstrata Nickel's 36% interest in the Broken Hammer resource on the Wisner Property, as well as the Parkin Offset Property to become sole owner, subject to Xstrata Nickel's royalty interest, on both properties. In return, Xstrata Nickel will increase its interest to 50% in the Frost Lake Property, as well as the remainder of the Wisner Property, excluding the six claims surrounding the Broken Hammer Zone, subject to Xstrata Nickel retroactively funding its 50% of the exploration expenditures incurred on these properties since January 1, 2005.

Exploration on both of these properties will continue in Joint Venture with Xstrata Nickel with Wallbridge as Operator. Should Xstrata Nickel elect not to fund the expenditures on either of the Frost Lake or Wisner properties, its interest will be diluted in proportion to the unfunded expenditures.