Diamond Rights:

Property Size:
51 Mineral Claims - 81,684 acres (33,057 Ha)

Location:
Located approximately 300km northeast of the community of Baker Lake in the Nunavut Territory.

Value:
Significantly diamondiferous kimberlite NQN001 discovered on property. Based on ground geophysical data, NQN-001 is a large kimberlite body with a minimum surface area of 4.5 hectares. Numerous geophysical targets and multiple kimberlite indicator mineral trains have been identified at Nanuq North and remain to be tested.

Overview:
The Nanuq North mineral claims were acquired to capture the potential source(s) of a kimberlite indicator mineral train with diamond inclusion chemistry, identified by Peregrine Diamonds on the Nanuq property.

Till sample results suggest that several kimberlites remain to be discovered on the Nanuq North Diamond Project. The kimberlite indicator minerals recovered include garnets and chromites with highly prospective diamond inclusion chemistry. Several samples yielded pyrope garnets with kelyphite rims and one sample yielded a pyrope garnet with a kimberlite mantle, indicating a close proximity to source. The property has been flown with high resolution airborne magnetics identifying numerous targets.

Kimberlite NQN-001 was discovered during a short, late season drill campaign. Based on ground geophysical data, NQN-001 is interpreted as having a minimum surface area of 4.5 hectares. The discovery hole, inclined at -58°, terminated in kimberlite after a continuous intersection from 7m to 87m.

Microdiamond analysis carried out at the Saskatchewan Research Council laboratory returned 206 diamonds from a 153 kg sample of the NQN-001 kimberlite. The entire sample is significantly diamond bearing and contains a phase of kimberlite with an exceptionally high stone count and coarse diamond size distribution. The majority of the diamonds described are characterized as white/colorless with no inclusions.

MicroDiamond Analysis

Eager to bring NQN-001 to the bulk-sampling stage, Indicator's technical team is in the process of finalizing its plans for the 2009 field season.

Exploration expenditures on the Nanuq North property are currently funded on a 50/50 basis by Peregrine Diamonds Ltd. ("Peregrine") (TSX: PGD) and Indicator Minerals Inc. Under the terms of a letter agreement, the Hunter Exploration Group ("Hunter") retains a 20 percent interest and Peregrine and Indicator each retain 40 percent interests in 16 "core" claims covering 11,605 Ha, including the claim that hosts NQN-001. Hunter also retains a two percent gross overriding royalty on these claims and their 20 percent interest is carried through completion of a scoping study. Peregrine and Indicator each have an undivided 50 percent interest in the remaining 21,451 Ha of claims at Nanuq North. Indicator is the operator of the project.