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Spotty Hill is a historical showing consisting of disseminated sulphide mineralization hosted in norite and exposed on surface over an area approximately 250 by 100 meters. KO drilled five shallow (less than 60 m long) holes in a range of orientations to test the showing. All the holes intersected disseminated sulphides and the best intersection was 12.94 m @ 0.52% Ni and 0.26% Cu.

In 2012, NAN's VTEM survey detected a strong conductor along the southwest edge of the showing. Maxwell modeling of the conductor in three-dimensions indicated it was pipe-like with a near vertical dip. The top of the conductor was interpreted to be 30 to 50 meters below surface.

MQ-12-005 was drilled to test the centre of the VTEM anomaly and it intersected 123.94 m of disseminated to locally near massive sulphide in norite. The entire 123.94 m averaged 0.81% Ni, 0.21% Cu, 0.03% Co and 0.26 g/t precious metals (Pt+Pd+Au) including a 24.20 m section containing 1.75% Ni, 0.34% Cu, 0.06% Co and 0.52 g/t precious metals. The nickel tenor of the sulphide mineralization averaged 9.0% Ni recalculated to 100% sulphide.

The high-grade mineralization does not appear to extend to the northwest because MQ-12-009, drilled approximately 75 m northwest of MQ-12-005, intersected only weakly disseminated sulphide mineralization averaging 0.17% Ni and 0.03% Cu over a core length of 119 meters. The high-grade mineralization does, however, remain open down-dip and southeast of MQ-12-005.

FOSSILIK II and P-59 VTEM CONDUCTOR (Figures 9 and 10: http://media3.marketwire.com/docs/NAN0115.pdf)

The Fossilik II showing is located 10 km southwest of the Imiak and Spotty Hill occurrences. It is a poorly exposed gossan located on a steep, talus-covered slope at the southwest tip of a large (8 km2) norite body. In 1968, KO drilled a short (35 m) inclined hole (FoII-1) beneath the gossan and intersected 12.89 m of mineralization grading 2.24% Ni and 0.63% Cu. A second hole (FoII-2), drilled the following year intersected 27.37 m of mineralization averaging 0.56% Ni and 0.98% Cu approximately 10 m below the intersection in FoII-1. Two other holes (FoII-3 and 13) drilled 40 to 50 m to the east of the gossan intersected only minor amounts of mineralization.

NAN's VTEM survey detected a conductor coincident with the Fossilik II gossan and interpretation indicated that the mineralization might extend beneath holes FoII-1 and 2 as well as to the southwest and northeast. The VTEM survey also detected a conductor approximately 250 m northwest of the Fossilik II gossan. This conductor, referred to as the P-59 conductor, was interpreted to lie about 85 m below surface, to be pipe-like in shape and to dip about 60 degrees to the southeast. P-59 was not tested by any previous drilling.

MQ-12-006 was laid out to test the Fossilik II gossan approximately 45 m beneath KO's holes and to intersect VTEM conductor P-59 at a depth of about 330 m below surface (total planned hole length approximately 400 m). The hole intersected 3.21 m of mineralized gabbro grading 0.63% Ni and 0.10% Cu 40 m directly beneath KO hole FoII-2. The hole was aborted at a depth of 109.11 m because its azimuth was deviating such that it would miss conductor P-59.

MQ-12-007 was collared at the same location and with the same dip as MQ-12-006 but its azimuth was adjusted by a few degrees in an attempt to compensate for deviation. The hole intersected similar mineralization to that encountered in MQ-12-006 but it too wandered off course and was terminated at a depth of 120.7 m.