Orvana is committed to responsible environmental stewardship in preparation for a potential mining operation. Orvana’s priority is to operate in full compliance with all regulatory requirements and permits, and supports the goal of environmentally sustainable economic development. The Company is committed to developing and operating its projects in full compliance with recognized international and local standards. Orvana is proud of how it designs and builds the required infrastructure in such a way as to minimize its footprint.

Part 632 of Michigan’s Non-Ferrous Metallic Mining regulation clearly outlines the studies required as part of a mine permit application. In September 2009, Orvana contracted STS (AECOM), a professional services firm with global reach, specializing in site planning, design and construction engineering, to conduct the base line studies for the Environmental Impact Assessment (EIA) at the Copperwood Project.

In January 2009, the EIA’s initial phase of surface and subsurface water sampling was completed. This is the first step in the two-year long process of developing a seasonal and long-term characterization of the site. In completing this phase of the assessment, 20 holes for 4,065 feet (1,239 metres) were drilled, packer-tested, and completed as groundwater monitoring wells. These drill holes encountered between 70 and 108 feet (21 to 33 metres) of fine-grained, unconsolidated glacial sediments overlying the bedrock. Fourteen drill holes were completed in bedrock above the copper-bearing interval and six holes intersected the copper-bearing interval. Also, 14 shallow water monitoring wells were completed.

In addition, a meteorological and air-quality monitoring station was installed on the site and data collection commenced on December 18, 2008. Other studies required as part of the EIA, including studies of the site’s ecosystem, habitat features and terrestrial and aquatic flora and fauna, have also commenced.

A scoping-level environmental geochemical examination has been completed on eight reject samples of mineralization, hanging wall and footwall rocks from three historic drill holes located in T49N, R46W Section 2 and T50N, R46W, Section 36. Interpretation of the scoping-level geochemical test results by Geochimica, Inc. indicates that Copperwood rocks are very unlikely to generate acid drainage and, consequently, may be characterized as non-reactive under Michigan mining laws. In addition, the rock pile created by the extraction of copper-bearing rock from underground workings in the 1950s was recently trenched and sampled. This rock pile has been subjected to approximately 50 years of wet, oxidizing conditions. Based on visual observations, the rocks appear to be non-reactive. Orvana will undertake additional environmental geochemical studies to validate these test results and observations.