Carbine Tungsten signs agreement with Mitsubishi Unimetals

Payment terms for the shipment are 85% payment upon bill of lading, followed by the balance of payment which will be made after receipt of the product by the customer, and adjustment for any applicable penalties relating to the final bulk assays of the product quality. Similar terms are anticipated for future bulk shipments.

As advised by the Company on the 8 May 2012, the product grade is much higher than had previously been anticipated from the original feasibility model, and this represents a potential increased income from sales should the grade be consistently achievable over the full production cycle of the tailings recovery campaign of the plant.

The Company continues to successfully ramp up its tailings recovery production facility, which has improved significantly in its peak production throughput capability in the past two weeks. The Company considers that the fundamental tailings recovery process is now well proven and looks forward to further increasing production output and plant reliability in the near future.

The forthcoming visit by senior technical and financial management of MCU to explore the funding options for CNQ’s hard rock project is scheduled to take place during July 2012. The hard rock project is designed to raise the monthly product production target to 30,000 MTU per month from the current production target of 5,000 MTU per month.