NEMI starts mining coal at Trend (December 20, 2005)

Vancouver – With final regulatory approvals in place, NEMI Northern Energy and Mining (NNE.A-V, NNEMF-O) has risen to the ranks of coal producer after commencing mining at its Trend Small mine (TSM) near Tumbler Ridge in northeastern British Columbia.

After receiving its Mines Act permit earlier this year, the final environmental and water permits allow the company to initiate mining operations enroute to launching its processing circuit in January 2006.

NEMI anticipates initial production rates at TSM of about 40,000-60,000 tonnes per month of medium volatile bituminous coking coal.

Haul agreements are in place with a contractor to deliver the coal from the plant site to the loadout facility. A 16-km rail line along the Tumbler Ridge branch line and the 3.5-km in the NEMI rail loop have been completed and is ready for coal shipments. Transportation agreements are also in place with CN to ship the coal and with Ridley Terminals, in Prince Rupert, for its handling facility.

The Japanese trading company Itochu has been appointed exclusive marketing agent for the metallurgical grade coal. Itochu has also approved NEMI’s feasibility study and has advanced the second and final $10-million tranche of its $20-million loan to the company.