(ABI – TSX Venture, ABMBF.PK) · optimized feasibility study for a 500 million lb. Zn, 13+ million ounce Ag orebody over a 10 year minelife. New simulations incorporating known

Abcourt Mines Inc.(ABI – TSX Venture, ABMBF.PK)

Abcourt now developing 3 past producers with significant known resources. Potential for significant upward re-rating of stock should company move from market perception of “exploreco” to moving aggressively to put properties into production – made possible by higher Au / Ag prices and stronger Zn long term market fundamentals.

The CompanyFocused in Quebec's prolific Abitibi Greenstone Belt, Abcourt now has several base metal properties and a gold property (all 100% owned). Elder Au. A joint venture spent $23 million in the 1980s to put this

100,000 – 200,000 oz. property into production, but the plan vaporized when Noranda decided to process material from its own Silidor Mine and additional capital could not be raised for a mill. Internal updates to the (non 43-101 compliant) feasibility study call for very modest capx and $550 - $600 cash costs/oz. The argument for attracting a financial / jv partner and moving forward to develop a mine is very compelling.

Abcourt-Barvue Zn-Ag unifies two past producers with significant exploration / development work. It has been the subject of a 2007 optimized feasibility study for a 500 million lb. Zn, 13+ million ounce Ag orebody over a 10 year minelife. New simulations incorporating known (incl. some non 43-101) resources, increasing the mining rate, and increasing Ag recovery show robust economics (~25+ after tax IRR, ~$60 million NPV(8%), ZnEq $0.50/lb cash op. costs @ $0.90 Zn, $25 Ag). Note – the “simulation” is not an updated feasibility study and should be considered speculative.

Vendome-Barvallee Zn-Cu-Ag-Au, a satellite property to the Abcourt Barvue property, with a 900,000 ton historic (non-43-101) resource. Ownership has recently been rationalized, with Xstrata selling the JV claims to Abcourt. There is potential to include some of these resources into the Abcourt-Barvue production schedule.

Aldermac Zn-Cu with known resources at the previous mine and undeveloped high grade discovery in 1987 / 88. Based on historic reports (Wright Engineers, prior to 43-101 standards) the in situ value of the 1987/88 discovery is $200+ million. There is considerable valuable underground development. Drilling since acquisition in 2007 has been very positive in confirming resources and outlining new potential.

Speculative PotentialElder Au Property

Assuming 135,000 oz Au (current M&I @ higher 0.15 opt Au cutoff), capx of $20 million, cash costs of $600 / oz and Au price of $1400, this project would generate a net pretax value of $88 million, along with a 1 year payback @ 25,000 oz / yr.

Abcourt-Barvue Zn-AgAt $1.00 Zn and $25 Ag, Ag contributes over 40% of NSR value and in today's environment, this should be considered a two product property. According to our calculations, any reasonable pricing scenario with either Zn or Ag holding up shows very good results. The long term outlook for Zn is excellent post-2012 as significant historic producers begin to go out or production. Low zinc and (necessary) new projects appear inconsistent.

Market Data

Share Data ($Cdn):Recent Price: $0.1952-week Price Range: $0.07 - $0.25Shares Outstanding (12/31/2010) (1): 110.0 millionFully Diluted Shares (1): 155.9 million

(1) Excludes pending new issue of units.

Capitalization ($Cdn):Market Capitalization: $20.9 millionWorking Capital (12/31/2010) : $3.75 millionLong Term Debt: nil

Corporate Information:President: Renault HinsePhone: 819-768-2857Website: www.abcourt.com

Investment Considerations

• It seems abundantly clear to us that the market perceives Abcourt as a company with some insitu resources but focused on exploration and resource development. These resources have been given a typical low value per lb (or oz as the case may be).

• The fact is that Abcourt has two advanced properties with considerable development. Today's commodity prices may well make these projects viable. As prices firm up, financing / JV possibilities for these projects may open up.

• There is an increasing knowledge base which points to an increasingly healthy outlook for Zn (see www.xstrata.com/content/assets/pdf/xz_speech_201010131_lme.en.pdf

With a market cap of under Cdn $25 million, there is a wide value gap that we believe can be narrowed should Abcourt reposition its assets and link programs more directly with potential to monetize properties as producers.

March 28, 2011 For important disclosures see p. 17

HOWLETT RESEARCH Corp. RESEARCHREPORT

Abcourt Mines Inc. Research Report

ELDER Gold PROPERTY (100% - 947 hectares)Rouyn-Noranda mining camp, Quebec

Following a lengthy history of development, Abcourt purchased (consolidated) the various portions of the current property from 1993 – 98. It is located 10 km NW of Rouyn-Noranda and is easily accessed. The town of Rouyn-Noranda is a very active community with a long mining history that began in the 1920s with the discovery of a large copper and gold deposit. Since 1927, there have been approximately 200 mines that have produced 5 million tonnes of Cu, 6.2 million tonnes of Zn, 1860 tonnes of Au, and 5500 tonnes Ag. Mining continues to play a major role in the local economy as there are currently 3 active mines in the area (Mouska, Doyon, & LaRonde) and Xstrata's Horne Smelter.

There has been considerable development at the Elder mine. From 1947 – 66, the mine produced close to 2.23 million tons of ore @ 0.155 opt Au and 71.4% silica for a total of 348,000 ounces Au. In the last years of operation, only limited underground drilling for new ore was carried out. By June, 1966, lower gold and silica grades from the bottom levels and escalating costs made the operations uneconomical and the mine was closed.

The mine site is still well equipped with functional buildings and mining equipment (reportedly in excellent shape). The surface infrastructure consists of the following:

Three compartment, 110' high head frame50' x 50' x 20' high hoist room equipped with 350 hp 6' diameter double drum 700 tpd / 2700' hoisting capacity, cage and skips.Compressor room with 2 compressors (1700 cfm each).80' x 130' warehouse / dry / shop complex.40' x 82' office building.Substation.Operating equipment (dewatering pumps, transformers, breakers, mobile & mining equipment / spare parts, fans, mine air propane heating system, etc.0.56 hectare settling pond with pump house.

© Howlett Research Corp. For important disclosures see p. 17 Page 2

Ore was shipped to Noranda's Horne smelter as a silica flux, which resulted in a mining plan designed to maintain high silica content - >68% - rather than designed to maximize gold content – and is one of the reasons why the "proven and probable reserves" that may be mined are still accessible.

Note - For a very good discussion of Abcourt properties and other information, see http://miningmarketwatch.net/abi.htm

In 2003, Broad Oak Associates stated that the replacement cost estimate for all the surface infrastructures was Cdn $7.49 million.


Between 1984 and 1989, a joint venture spent a total of $23 million to put the property back into production. This included:

dewatering the minerehabilitating 4,268 meters (14,000 feet) of old drifts, deepening the shaft 15 meters (50 feet), establishing new stations on three upper levels in No. 2 shaft, cutting an ore pass and a waste pass system with loading pockets.installing a surface plant and purchasing equipment.drilling 142 surface and 75 underground diamond drill holes,excavating 2,130 meters (7,000 feet) of new drifts, driving ventilation raises and starting a few stopes.

At that time Proven and Probable Reserves were calculated as 753,000 tons @ 0.17 oz /ton Au. An additional "Possible" tonnage was stated as: 456,000 tons @ 0.17 oz /ton Au.- (note – these calculations were made before the publication of NI 43-101 standards).

From April – June, 1989, a total of 14,076 tons (13,200 tonnes) was produced @ 0.189 oz / ton (7.44 g/t) Au. Following a drop in the price of gold, the mine was temporarily closed. The project fell apart when Noranda decided to take gold-bearing quartz material from its own Silidor Mine located in Rouyn-Noranda and the venture was unable to raise the $8 million for a mill.

Following consolidation of several small additional properties by Abcourt, there have been several periods of activity.

1996 / 97 – Tagami property – 21 hole drilling program (2,896 m) outlines high grade gold on the West Gold showing.

1995-98 – Elder property – 16 drillholes were completed (2,496 m) which confirmed and increased the mineral resources on the east end of the mine.

The mine was also dewatered to the 12th level (509 meters) but following a drop in the price of gold in 1998, the pumps were removed and the mine was once again put on care & maintenance basis.

In 2006/2007, 35 surface holes were drilled for a total of 7,001 meters. Twenty-seven (27) of these holes were drilled at the eastern and western limits of the mine to confirm or to extend the main zone. Four holes were drilled in #4 vein and intersected a mineralized zone over 1.5 to 7.0 meters. In addition, four holes were drilled about 300 meters west of the mine area. One of these holes intersected a strong fault zone and one vein above and another vein below the fault. These veins assayed 2.39 g/t gold over 2.0 meters and 17.40 g/t gold over 1.03 meter. This discovery indicates that new veins may be found along the extension of the Elder mine main ore structure.

In July 2009, a revision of the resources for the Elder property was completed by an independent qualified person, Mr. Jean-Pierre Bérubé, P. Eng., consultant from Trois Rivières, Quebec, Canada. This revision was made according to NI 43-101 Standards.

Exploration has continued since then. In 2010, it was announced diamond drilling 20 definition holes totaling 3,331 m on the NE half of the West Gold Zone of the Tagami property, combined with results obtained in holes drilled previously, outlined a continuous zone of mineralization 400 meters long in a


Importantly, Abcourt was successful in verifying the historic resources calculated in earlier programs.


north-east direction, partly in a flat zone and partly in a shear zone dipping 40-60° to the east. This zone has been traced from surface to a depth of 147 meters with an average vertical thickness of 2 meters and a grade of 8 grams of gold per tonne. Preliminary calculations by management indicated a potential of 225,000 tonnes with a gold content of 60,000 ounces. It was noted that the potential quantity and grade is conceptual in nature. It is not certain that enough exploration has been done to do a 43-101 resources calculation and if further exploration will result in the discovery of a mineral resource. It was also noted that definition drilling in the SW part of the West Gold Zone could add significantly to the gold potential of the West Gold structure.

In addition, Abcourt finished a drilling program on Elder in December 2010, drilling 13,000m in 2010 and encountered very favorable results as the mineralized system is expanded on the western section and remains open to the east, the north and at depth.



Thus, what we seem to have is as follows:The mine site is still well equipped with functional buildings, mining equipment, infrastructure.

A current 200,000+ oz. 43-101 compliant resource.

Potential for a further 60,000+ ounces at Tagami West, with possibility for more.

Past initial mining of the currently known resource in 1989, which may point the way to a mining scenario today.

From what we understand, the potential economics of re-opening the mine have been investigated in detail. A summary is given below.

(source: http://miningmarketwatch.net/abi.htm, company management)

(source: http://miningmarketwatch.net/abi.htm, company management)

In 2009, the revised 43-101 resource estimate recommended a $14 million exploration and development program (basically the first two components of the capital costs given above). No mention was made regarding potential mining scenarios and we can only attribute this to the fact that the gold price was only beginning to escalate at that time. In our discussions with management of Abcourt, we understand that the only real obstacle to pursuing a mining strategy is one of finance and to raise such a large amount for a company with a ~$0.20 stock price and ~$20 million market cap (until just recently). Accordingly, we see it as proper to evaluate the property from this point of view.

Given the above, the analysis is rather basic

Taking just the M&I ounces at the 0.10 opt cutoff, we have some 135,000 ounces.

Assume a $20 million capx.

Assume the higher$600 / oz cash cost.

For now assume any sustaining capital is included in cash costs.

Net Value = 135,000 x ($1400 Au price - $600 cash costs) - $20 million capx = $88 million.

The economics become even more compelling if one considers the following


Abcourt Mines Inc. Research Report Depending on the cutoff, a higher number of ounces available. We understand from Management that they are looking at the 0.10 opt cutoff, bringing M&I resources to ~170,000 oz.

The potential to develop inferred resources. From management, we understand that the current program is successfully upgrading (some portion) of Inferred resources to Indicated.

The potential to mine Tagami ounces at the West Gold Structure (60,000 oz ?).

Exploration potential, which Abcourt management is emphatic on. We understand that the current program is already successful in finding some new Au ounces.

In addition, we note that if one looks at the distribution of the known resources, they occur at virtually every level of existing mine workings. What this indicates to us, on perhaps a very simplistic basis, is that rather than going down to 8 level and below, dewatering, and spending millions on later development and drilling at these deeper levels, one might consider putting the mine into production with material from the upper levels, and paying for the lower level development over time. In other words, dewater and rehabilitate to the levels necessary to get the mining operation going – which we understand would be down to the 8 level. If the initial capx can be reduced by several million dollars while at least in theory the resource remains the “same”), the economics of the venture become extremely attractive.

Naturally, this analysis rests up the normal “if this, and if that, then...”. What we believe the project needs is to continue with the present program of dewatering and necessary surface drilling (to refine resources to the 7 level) along with dusting off and reworking the Feasibility Study (non 43-101 compliant as it predates these standards) to verify all parameters of the project to ensure that it can be successful. We understand from management that there is a great deal of study completed regarding detailed mine planning which should form the basis of such a study. It will also be necessary to attract the necessary joint venture financing. It will also be necessary to ensure that the proper operating team is fully in place. Should all these events occur, we certainly see a bright future for the Elder Mine and for Abcourt as a stock. Shorter term, if the market can see this as happening, we would see potential for the market to adjust its thinking of the company and begin to view it as a potential producer, which we do not believe the market sees or believes at the moment.


Some Positive Indications• Flat lying lens combined with

room & pillar mining. • 0.1 opt cutoff allows good

continuity in mining.• Considerable study completed.


ABCOURT-BARVUE Zn-Ag OREBODY (100%), Abitibi Greenstone Belt, Quebec

(3174.71 hectares)

Originally discovered in 1950, this property has a long history of development, along with production in two periods – 1952-57 (5.5 million t @3.09% Zn, 1.13 opt Ag) as an open pit and by Abcourt from 1985-90 (697,016 tons @ 5.04% Zn, 3.85 opt Ag) as an underground mine. In 1990, with the falling price of Zn and Ag, the mine was shut down. Difficult to make money at $0.40 - $0.60 / lb. Zn.

In 2003, Abcourt began to reactivate the project, drilling 10 holes in 2003, 24 holes in 2004, and 46 holes in 2005. This was followed by a 43-101 resource update in 2006 (MRB & Associates) and a Feasibility Study in 2007 by Genivar. Current resources are as follows:

In the Feasibility Study, the production schedule was established on a 10-year basis (6,446,000 t) because it was estimated that subsequent years of production have minor influence on the economics of the project. It is noteworthy that there are slightly more than 3 additional years of production at the same milling rate. After year 10, this represents a tonnage of about 2 Mt grading 47.88 g/t Ag and 2.43 % Zn for a zinc-equivalent grade of 3.43%. This could be extended further with inferred resources after additional exploration and development.

Economics were established as follows:



These figures have been updated by Abcourt in a January 2011 presentation as follows:


Com parison of scenarios A and B w ith feasibility study base case Base Case Scenario A Scenario B

as per March/07 (w ith used (w ith usedFeasibility Study mill equipment) mill equipment)

Au ($US/oz) 560 515 517

9.54 8.97 9,00

1.15 0.89 0,90 Exchange rate ($C/$US) 1.15 1.18 1,18

Zinc price variation from 2009 (Year 1) to 2018 (Year 10) 1,36 (Y1 to Y3) 1,31 (Y1); 1,18 (Y2); 1,04 (Y3)1,36 (Y4 to Y6) 0,91 (Y4); 0,81 (Y5)

0,85 (Y7 to Y10) 0,75 (Y6 to Y10) Econom ics

Total Revenue (NSR) 435 171 700 $ 361 755 600 $ 341 107 100 $

(67 879 000 $) (53 467 000 $) (43 059 000 $)

(24 417 800 $) (23 739 800 $) (35 043 200 $)

(200 825 484 $) (208 164 633 $) (193 085 045 $) 60% debt / 40% equity financial evaluation BEFORE TAXES

Return on equity (ROE) 40.27% 27.31% 32,50%

$130,752,405 $62,276,633 62 513 720 $ Net present value (8%) $59,899,543 $24,299,264 24 859 700 $ Project IRR 25.31% 17.57% 20,15%

3.75 4.69 4,08 60% debt / 40% equity financial evaluation AFTER TAXES

Taxes $46,445,792 $22,197,846 $21,759,879Return on equity (ROE) 33.66% 22.98% 27.45%

$84,306,613 $45,078,788 $40,753,842Net present value (8%) $35,189,886 $13,534,846 $14,089,619Project IRR 20.27% 14.26% 16.26%

3.76 4.69 4,08 Other economics param eters -100% equity

EBITDA 234 346 216 $ 153 590 967 $ 148 022 055 $ TAXES (50 740 916 $) (25 660 530 $) (24 575 691 $) BARE-BONES VALUATION 183 605 300 $ 127 930 437 $ 123 446 364 $

Weighted Avg Metal prices and Exchange rate over the 10-year period (2)

Ag ($US/oz)

Zn ($US/lb)

Near term prices ($US/lb Zn)

Medium term prices ($US/lb Zn)

Long term prices ($US/lb Zn)

Preproduction Capex

On-going Capex

Total Opex

Cumulative Cashf low

Payback Period

Cumulative Cashf low

Payback Period


In addition, Abcourt has conducted a “simulation” to investigate the economics of the property under the assumption that the mining rate increases to 1 million tonnes per year over a 13 year minelife. What happens is that with the operating costs drop by $5 / tonne, from over $29 to under $25, with only a modest increase in capx. Rates of return increase substantially, as does the project NPV.

The obvious question becomes – where do the increased resources come from to get to the assumed 13 million tonnes of required ore for this model to work. The answer is that the initial Feasibility Study did not include several million tonnes, which are now part of the “simulation”.

The remaining known reserves at the end of the 10 year production period evaluated in the 2007 Feasibility Study, combined with other known “marginal resources”. This adds a total of 4.2 million tonnes @ 1/2 opt Ag and 1.40 % Zn to a production plan.

Other remaining ore reserves & M&I ± resources (0.9 million tonnes).

Assuming that 0.4 million tonnes of the 1.5 million inferred resources are upgraded and included in the mine plan.

Inclusion of a portion of the 900,000 ton (historic non 43-101 compliant) “resource” from the Vendome-Barvallee Zn-Cu-Ag-Au satellite property (assumed to be 0.4 million tonnes from Vendome). This property has historically suffered from a disjointed ownership structure which has recently been resolved with the Abcourt purchase of Xstrata's interest.

This simulation is highly positive on several fronts.Processing the additional amounts using virtually the same pit significantly lowers mining operating costs per tonne – from $29.21 per tonne to $24.81 per tonne.

Processing the marginal material means that expensive containment in the tailings area does not have to be done (i.e. for the Zn which leaches).

Changing the process design away from cyanidation has actually resulted in an increase in recovery for Ag, from 70% to 89%.

Doubling the production rate comes with relatively low increased capx.

Because of these factors, the payback period goes to 3 years and after tax IRR goes to over 25% (after tax). NPV(8%) goes to over $50 million.

Cautionary note - This simulation is not a revision of the Abcourt feasibility study. Such forecasts, plans and mining possibilities are speculative statements and are subject to risks and uncertainties. It is not certain that these statements are correct; eventual results and future events may be greatly different from those expected.




The Abcourt-Barvue mineralization remains untested laterally and at depth.


The cautionary note above is particularly relevant when considering that the simulation was done in 2009 and incorporates cost assumptions at that time. Under the assumption that costs are increased (arbitrarily) by let's say 15%, the returns and NPV are reduced – with the IRR going to 10?% - 20% and NPV(8%) going to approx. the mid-teens (this is with Zn @ $0.88 / lb, Ag @ $15 / oz, Cu @ $2.50 / lb, Fx @ 1.01). The positive news is that the project is very robust, with ZnEq / lb. cash costs of production at less than $0.60 / lb. (dividing the total ZnEq payable lbs divided by life of mine operating costs, including ongoing sustaining capital).

So, the argument is not so much about the robustness of the project and whether the cost structure is too high, it really more about how commodity pricing affects bottom line economics. With this property, there is little doubt that this project has been regarded as a Zn project with a minor amount of Ag (and even more minor Cu) as byproduct revenue. However, if you look at the project using a Zn price of $1.00 / lb. and Ag price of $35/lb., the Ag represents almost one half of the payable NSR. If Ag rises to $40 / oz, over 50% of the NSR is represented by Ag. Plus at these levels (Zn @ $1.00, Ag @ $40 / oz.) the IRR and NPV become very high indeed (after tax IRR approaching 50% and NPV(8%) well over $100 million).

An interesting and important point here is that as one of the commodities goes up – for example if Ag goes to $25 / oz (Zn remaining at a low $0.88 / lb), the returns actually are quite attractive (25+%, $50+ million NPV(8%) by our calculations. The same result holds if Zn just goes to $1.10 / lb. and Ag holds @ what would seem today to be a low $15 / oz. In other words:

You only have to believe in one of these commodities – whether it be Ag or Zn – to be positive on the project. The Zn price could actually go down by a significant amount – let's say to $0.80 / lb. but if Ag holds at just $25 / oz, the project still has a very high IRR and NPV (i.e. 20+% IRR, $40+ million NPV).

Today, what we seem to have increasingly is positive support for both Ag and Zn long term fundamentals (see “Note on Zinc Market” later for reference to Xstrata discussion).


Left, from p.73Feas. Study


Another argument is regarding the effect that transportation and smelter charges have on the project. Given that more than 30% of the gross value of recovered metals goes to these charges, in a future environment where concentrate is in short supply this could have a material effect on terms, and in turn on this project.

Finally, with new financing structures gaining popularity, including new royalty participation streams, there may be potential to finance part of the project. Of course, generally speaking, conventional debt is the least expensive form of financing so if this were available project economics would be enhanced.

Of course, another answer is to find another, hopefully higher grade orebody at surface – even a relatively small one – which could be mined in the early years and serve to increasing overall returns and NPV. Management is emphatic regarding the exploration potential for the property, with potential for extensions at the east end (1300 m), at the west end (1300m) and at depth. For reference the main zone occur over a 2000 m in length.

To summarize:Robust project economics at current levels.

Positive long term market outlook for both commodities.

Possibilities for innovative financing structures.

Lower prices for both Zn and Ag still generates good (10% - 20%) returns.

Prolonged period of status quo (i.e. prices maintained at current levels) is highly positive for the project.

Realization that this is a two product mine has important implications for risk perception.

Possibilities for revision to significant smelting terms in future.

Need to firm up current project costing estimates.

Exploration potential.

Based on this analysis, we see this project as an attractive development scenario – and perhaps in this case time is on the side of Abcourt, given the shorter term potential to do something with Elder – succeed with that project, then move on to Abcourt. In the meantime, it seems clear to us that firming up the asset as it stands already, moving the inferred into mineable tonnes as they are doing, evaluating the ability to mine the Vendome-Barvallee deposit, and then firming up the Feasibility Study again to attract interest would seem to be well considered strategy.

On a final note, consider the following argument – if one takes on a pessimistic stance on Zn, what will possibly drive future development for the needed Zn mines required to replace the massive amount of Zn that is going to be taken out of production post-2012. If the Zn market begins to firm up long term at all and perceptions begin to change regarding Zn, this property may well have a very bright future.VENDOME-BARVALLE Zinc-Copper-Silver PROPERTY,

11 km S of Abcourt-Barvue, Satellite Property(100% - 1560 hectares)

This property is located near the Abcourt-Barvue property. It is a property with considerable past work on two separate claims – the “royalty” claims (original Vendome discovery and later Belfort discovery) and the adjacent Abcourt claims (Barvalle discovery). A small resource on 100% owned Abcourt claims was not significant enough to warrant major exploration effort if only focused on that area.

Recently, on February 28, 2011, Abcourt announced that Xstrata has agreed to sell to Abcourt its interest in the Vendome property, consolidating the property. The



property is the site of past exploration and development. In the 1950s, a small ore body was discovered (royalty claims) and development was as follows:

A 3 compartment shaft was sunk to a depth of 525' (160m).'

3 levels were established at 250', 375', and 500' (76 m, 114 m, & 152 m).

A total of 7000' (2134 m) of drifts and raises were excavated.

A total of 351 holes were drilled underground (64,600', or 19,700 m).

At the same time, two deposits, the Barvallee on the Abcourt (100%) claims and the Belfort (royalty claims) were found on strike to the west by surface drilling.

In 1987, a surface plant was installed and a short (76m) ramp was excavated on the Barvallee part of the property. In 1988, the company drilled 9 holes (1505 m) in the Barvallee sector with encouraging results – rock types, alteration, and the widespread sulphide mineralization with significant Au, Ag, Cu, and Zn values intersected are characteristic of proximal zones found around volcanogenic massive sulphide ore deposits.

Resources are as follows:On the Barvallee claims, the inferred historical resources, as reported in the Canadian Mines Handbook 1998-99, were 181,000 tonnes grading 5.71% Zn, 1.23% Cu and 44.23 g/t Ag.

The Vendome historical measured diluted resources, as indicated in the Canadian Mines Handbook 1998-99, are 495,000 tonnes grading 8.07% Zn, 0.48% Cu, 52.46 g/t Ag and 1.20 g/t Au.

The Belfort inferred historical resources, as reported in the Quebec government's report MB 98-06, total 227,000 tonnes grading 7.0% Zn, 0.21% Cu, 20.92 g/t Ag and 0.41 g/t Au.

These resources were calculated before NI 43-101 was published and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources.



The addition of this property will be greatly beneficial to the Abcourt-Barvue project located only 13 km north of this property – to increase tonnage which not only adds to the value of the Abcourt-Barvue property, it also helps to facilitate a higher mining rate, which reduces cash operating costs per tonne.

ALDERMAC Zinc-Copper PROPERTY, Satellite Property to Abcourt-Barvue, Abitibi, Quebec,

(100% option, 303 hectares)

In January, 2007, Abcourt acquired an option on the Aldermac property, the site of an operating mine from 1936 – 43. Past work points to a meaningful existing resource and good exploration potential. Salient points include:

Past production . Serviced by a 3 compartment, 495 m shaft and drifts on 9 levels. Past production was two million tons of ore with a grade of 1.78% Cu, 0.2 oz/t Ag, 0.02 oz/t Au and 1.50% ± Zn.

1987 / 88 Program & Resource Calculation . In 1987, prior to the discovery of the # 7 and # 8 zones, Seadrift International Exploration Ltd. (later becoming Deak Resources Corporation and subsequently A.J. Perron Gold Corporation) estimated ore reserves in the old shaft area at 600,000 tons grading 1.60% Cu with low Ag and Au values, as well as an undetermined amount of zinc (see note below for qualification). If this is accurate, this would represent a total of over 20 million lbs. Cu.

Exploration – new zones . Subsequently, detailed stratigraphic drilling during 1987 / 88 to the east of the Aldermac mine site resulted in the discovery by Seadrift of 3 new mineralized massive sulphide lenses less than 30 m from an exploration drift on the 9 th level . After the initial discovery hole in august of 1987, a total of 25 drill holes totaling some 12,622 m of diamond drilling were collared to delineate these lenses. Historic reports (Wright Engineers) indicate a (non-compliant 43-101) resource of 1.15 million tons @ 1.5% Cu, 4.13% Zn, 0.91 oz / ton Ag, and 0.014 oz / ton Au (see following note for qualification).

(note – as stated in the Abcourt press release, The historic resources were prepared before the introduction of National Instrument 43-101 and would today be considered as resources of various categories. No additional information is available at this time and the historical resources have not been verified and should not be relied upon. That being said, the company believes that these estimates were prepared by competent persons.).

# 8 Zone # 7 Zone

• Lies approximately 300 m east of the shaft to the east of the mine site.

• Understood to be an irregularly-shaped pod or lens, along an E-W axis on strike with the mine series hosting the ore lenses at the old mine.

• Dimensions established to be 91 m along strike, 107 m down-dip, with a thickness of 18 m.

• An "upper zone" occurs 30 m up-dip from the # 8 pod.

• May be a faulted extension of the # 8 lens.

• Lies about 60 m to the S & E of the main # 8 zone.

• Possible to enlarge the zone with further drilling.


Past Production2 million tons of massive sulphides

• 1.78% Cu, 0.2 opt Ag, 0.02 opt Au, ~1.5% Zn (not recovered).

Description Tons Cu (%) Zn (%) Old Workings (125m – 213m depth 373,480 1.76 Not determined

100,000 1.50 – 2.00 Not determined1954 Drilling (223m - 343m depth) 150,000 1.11 3.59

623,480 ~ 1.60 Not determined

Shaft Pillar (1st to 9th levels)

Description – 1988 discovery Tons Cu Zn Ag"Proven & Probable" 1,150,000

Grade 1.50% 4.13% 0.91Lbs. / oz 38,029,350 104,707,477 1,046,500

$3.00 $1.00 $25.00Approx. Gross Value (US $ m illions) $114.1 $104.7 $26.2

TOTAL $245.0

Comm od. Price ($US)

Abcourt Mines Inc. Research Report 2008 Drilling. As most of the earlier plans were lost or are incomplete, Abcourt's initial drilling objectives were first to locate and outline the old underground openings (drifts and stopes), validate the historical resources and possibly find new ones.

To that end, a 2008 winter program consisting of a 22-hole drilling program totaling 5,514 meters was completed. Several excellent values over important widths were cut. Following this and a subsequent round of financing, 8 additional holes totaling 1,842 meters were completed in October / November of 2008.

This program was successful – Abcourt confirmed in 2008 the additional Cu / Zn / Ag zone originally discovered in 1987 / 88. This zone is within 30 m of an existing drift (9 level)

In addition, Abcourt drilled several holes to the east of the old shaft, intersecting a new zone of massive sulphides.

Holes 08-17, 08-18 & 08-20 (drilled to confirm 08-16 and located 213 m east of the shaft) also gave excellent values over meaningful widths

08-17 0.54% Cu, 8.99% Zn, 22.76 g/t Ag, 0.025 g/t Au over 4.37 m0.90% Cu, 18.94% Zn, 34.06 g/t Ag, 0.044 g/t Au over 4.37 m

08-18 0.49% Cu, 7.20% Zn, 22.66 g/t Ag, 0.126 g/t Au over 8.83 m08-20 2.12% Cu, 13.03% Zn, 60.70 g/t Ag, 0.387 g/t Au over 6.1 m

In addition, we have hole 08-14 which intersected the main zone between the 8 and 9 levels, located outside the historical resources. The intersection, from 354.08m to 393.6 m, assayed 1.94% Cu, 3.58% Zn, 0.58 g/t Au, 28.84 g/t Ag, and % Co. Follow up holes 08-23 to 08-25 gave good results.

What we seem to have at Aldermac is as follows:Known resources at the previous mine which have been confirmed by Abcourt drilling following acquisition in 2007. The gross value of this resource is certainly something to “play with” at today's commodity prices.

There is a significant amount of valuable underground development, which is also proximate to the new zone for increased possibility of future development.

Known potential for a significant massive sulphide deposit – detailed core logging in 1987 / 88 by Seadrift geologists indicated that the new mineralization clearly represents a classical Noranda type massive sulphide deposit, as evidenced by the crude metal zoning between the copper and zinc mineralization as well as the presence of an underlying hydrothermal vent containing stringer-type copper mineralization (known to be spatially associated with a near-ore environment elsewhere in the Noranda camp). The North Chance tuff is a favorable stratigraphic horizon typical of those in other locations in the camp which have guided exploration geologists towards discovery of massive sulphides. Historical reports indicate that several drill holes from surface and underground intersected massive sulphides in the area NW of the mine.

As mentioned earlier, 2008 drilling appears to have provided evidence in support of this theory.

So, we have some very positive signs – a valuable in situ resource and valuable development. That being said, all the data concerning the old mine is not available which is unfortunate insofar as pushing forward vis a vis other projects such as Elder Au and Abcourt-Barvue Zn-Ag from a mining perspective. That being said, the 2008 drilling was really quite successful in accomplishing a number of exploration goals. Once they get the other projects off the ground, this project definitely has considerable merit as an additional development project.

NOTE ON ZINC MARKET

One of the “issues” in the past with respect to the Abcourt-Barvue Zn-Ag mine has been that it has been a relatively “pure” Zn property. Because Zn is often produced as a by product in many mines the price can often be artificially “low”, trading between $0.40 - $0.80 / lb. as the metal is simply sold into whatever market price has prevailed. This is beginning to change as worldwide demand has increased substantially and significant mines become depleted. An excellent presentation that summarizes these


HOLE # From (m) To (m) Int. (m) Dip Cu (%) Zn (%) Ag (g/t) Au (g/t) Location08-11 256 280 23.47 1.22% 5.06% 26.3 0.22 270 m east of the shaft08-12 290 320 30.00 0.39% 2.54% 12.4 0.99 245 m east of the shaft

328 368 40.30 1.16% 5.42% 35.9 0.46 245 m east of the shaft08-13 270 301 31.68 1.09% 3.15% 16.7 0.03 305 m east of the shaft

83ºN-50ºS-50ºS-83ºN


critical trends can be found on Xstrata's website – see www.xstrata.com/content/assets/pdf/xz_speech_201010131_lme.en.pdf

There are several similar presentations available, particularly on the websites of other Zn companies. CONCLUSION

Given the nature of its properties and a market cap of less than Cdn $25 million, Abcourt is clearly being viewed by the market as one step above an early stage exploration stage company – in other words an exploration company with some (small) defined resources. With the rise in commodity prices and the apparent firming up of the zinc market (particular in the future), both the Elder Au project and the Abcourt-Barvue Zn-Ag property clearly deserve attention as near term producers. It is entirely likely that the market sees a low share price and the lack of an ability to finance a large project at these levels and therefore dismisses this possibility. However, once the numbers are tallied up and the potential to attract JV financing is seen, a re-rating of Abcourt stock should result in significant upside to the stock. We emphasize that this is contingent on Abcourt executing a strategy of successfully repositioning its assets and refocusing current efforts on activities with a potential production emphasis.


Note - For a very good discussion of Abcourt properties and other information, see http://miningmarketwatch.net/abi.htm

Jeff Howlette-mail: [email protected] website: www.howlett-research.com

Jeff Howlett is a financial analyst who for over the past 15+ years has provided research services to companies lacking adequate coverage. Mr. Howlett was previously affiliated with a major Canadian investment firm specializing in Mergers & Acquisitions and has received a B.Sc. in Economics from the Wharton School of the University of Pennsylvania..

http://www.howlett-research.com/

mailto:[email protected]



© Howlett Research Corp. All rights reserved. The material presented above is based on information and sources believed to be reliable but its accuracy or completeness cannot be guaranteed. Howlett Research Corp. accepts or assumes no liability for the foregoing material. There can be no assurances of the company reaching forecasts or projections as outlined in this report. Howlett Research Corp. has relied on management for information and data presented in this report and has not verified its accuracy. The analysis contained herein does not purport to be a complete study of the featured company and any views expressed are as of the date hereof and are subject to change without notice. This report contains and refers to forward looking information. Readers should be aware that forward looking statements are subject to significant known and unknown risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Any forward looking statements included in this report are made as of the date hereof and Howlett Research Corp. assumes no responsibility to update them or revise them to reflect new events or circumstances. The information provided in the Report may become inaccurate upon the occurrence of material changes, which affect the company and its business. All information in this report is provided “as is” without warranties ,expressed or implied, or representations of any kind.

References to historical resources and / or amounts that predate NI 43-101 standards, or are not in compliance with NI 43-101, are meant for historical reference only and should not be relied upon.This report is for information only and is not intended as an offer or solicitation with respect to the purchase or sale of any security, nor should any information or opinions expressed in this report be construed as investment advice. Companies mentioned herein may carry a high investment risk; and readers should carefully review the companies thoroughly with their registered investment advisor or registered stockbroker. This report does not take into account the investment objectives, financial situation or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Howlett Research Corp. has accepted a cash fee of under $10,000 in preparing this report which represents the total consideration due . No other consideration has been paid or is payable by any person or entity. Howlett Research Corp. does not own shares of Abcourt Mines Inc. and does not trade in its shares.

Documents

(ABI – TSX Venture, ABMBF.PK) · optimized feasibility study for a 500 million lb. Zn, 13+ million ounce Ag orebody over a 10 year minelife. New simulations incorporating known