About Kyle Lake

• 104 mineral claims

• 100% owned by Metalex (Kel-Ex Development Ltd holds a 10% free carried interest).

• January 2012 - signed letter agreement with Dundee Corporation whereby a fund managed by Dundee can acquire up to 51% of the project through a staged investment of C$51 million.

• The region seems exceptionally fertile for diamond mineralization with commercial grade kimberlites being found in several areas (Victor, Renard)

METALEX WORK

• In 2006, a 28,620 line kilometer airborne geophysical survey was flown which identified 34 targets which were then staked.

• Priority targets were drill-tested resulting in the discovery of three new kimberlites (referred to U1, U2 and U2NW).

• 12 NQ inclined delineation holes have been completed to date

• 450 ton bulk sample collected to test for economic quantities and qualities of diamonds.

INFORMATION ABOUT U2

• Approx 9.3 hectares (24 acres) in size

• Second largest diamond bearing kimberlite discovery in northern Ontario.

• Initial core drilling of U2 yielded 17 diamonds from a 142.3 kg sample. The diamonds have a course size distribution and are predominantly gem quality similar to those recovered from DeBeers’ Victor Mine.

BULK SAMPLE RESULTS

• Processing of the 11 bulk sample holes has been completed. The size distribution of the U2 diamonds is very coarse with a high proportion of the diamonds being in the large size categories. This is important for a high average carat value.

• The following table contains the size distribution of the diamonds recovered:

• The 86 largest (+1.7mm) diamonds totaled 15.95 carats with 73 of the diamonds classified as white, six as brown, five as grey and two as colored (yellow and pinkish brown). This equates to 88.8% white, 7.3% brown, 2.8% grey and 1.1% colored by weight.

• The two largest diamonds (2.61 and 1.25 carats) recovered from U2 will cut as high quality white gems.

• Below are pictures of some of the diamonds recovered to date including the 2.61, 1.25 and 0.72 carat stones: