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NWI
:TSX
Nuinsco Resources Limited
Building …on a Proven Track Record
Directors
Robert Wardell
, Chairman
René Galipeau
, Vice-Chairman
George Archibald
Dr. J.M. Franklin
Ed Guimaraes
W. Warren Holmes
Marvin Singer
Officers
René Galipeau
, CEO
Paul Jones
, President
Alison Sutcliffe
, VP, Finance
and Chief Financial Officer
Sean Stokes
, Corporate
Secretary and VP, Corporate
Affairs
Dr. David Mchaina
,
VP Environment & Sustainable
Development
Margaret Lai
, Controller
Auditors
BDO Canada LLP
,
Chartered Accountants,
Licensed Public Accountants,
Toronto, Ontario
Legal Counsel
Norton Rose Canada
Toronto, Ontario
Corporate Information
Transfer Agent
& Registrar
Computershare Trust
Company of Canada,
Toronto, Ontario
Corporate Office
Nuinsco Resources Limited
80 Richmond St. W.,
18th Floor
Toronto, Ontario
M5H 2A4
Tel: 416.626.0470
Fax: 416.626.0890
Email: admin@nuinsco.ca
www.nuinsco.ca
Investor Relations
CHF Investor Relations
Tel: 416.868.1079
Fax: 416.868.6198
cathy@chfir.com
Annual General Meeting
The annual general
meeting of shareholders
will be held at The Toronto
Board of Trade, 1 First
Canadian Place, Toronto,
Ontario, Monday, June
18th, 2012 at 4:00 p.m.
(local time).
Forward-Looking Information:
This document contains forward-looking information. All statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This
forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking
information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the
forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected
consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other
things: the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed
in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than
those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under
on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or
failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management
and personnel; changes to regulations or policies affecting the Company’s activities; the uncertainties involved in interpreting geological data; and the other risks
disclosed under the heading “Risk Factors” and elsewhere in the Company’s annual information form dated March 31, 2012 filed on SEDAR at www.sedar.com.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. All exploration work is supervised by
Paul Jones, President, who acts as QP under National Instrument 43-101.
LETTER TO SHAREHOLDERS
continued from page 1
As the year progressed, it became
increasingly apparent that there would
be no quick solution to the issues we,
and other companies, were facing in the
MENA region. As a result, early in 2012 we
announced the decisions not to exercise our
option in Sudan and later not to pursue full
tenure on the Egyptian properties.
It’s important for shareholders to
understand why these decisions were
made. It’s not because we didn’t believe
in the quality of the projects - we got very
encouraging exploration results. It’s not
because we didn’t believe in the ability
of Egypt or other countries in the MENA
region to build a viable mining industry to
capitalize on their underexplored and highly
prospective geology.
Nuinsco is an exploration company.
It needs to be actively exploring because
that is how we will create value for
shareholders. Without tenure in Egypt,
meaningful exploration was not possible,
and without political stability neither was
financing.
Recent political events have meant
greatly reduced valuations for projects
in certain MENA countries. The equity
markets continue to reflect uncertainty
from economic question marks around the
globe, and political instability like Egypt is
experiencing only adds to this perception of
risk. All this impacts on project valuations.
All this impacts the share price.
The terms of our concession agreements
in Egypt reflected the reality of the equity
and gold markets at the time, 2009, when
they were negotiated. But, this reality has
changed and so too must the terms of the
deals going forward. We are very pleased
with the relationship we have developed
with the Egyptian mining authorities and
with our Egyptian Partner, Quartz Core
Corp. (see page 5). We will maintain these
relationships that will hopefully give us a
competitive advantage in future bid rounds
for gold properties once political stability
returns and we are willing to participate
again under reasonable terms.
What the events of 2011 in the MENA
region have highlighted is the benefit of
Nuinsco’s diverse portfolio of projects. By
focusing on exploration and having a variety
of projects in different commodities and
political regions we can offset any negative
impact of events in one region or metal and
still work to create value for shareholders.
Earlier I mentioned Chibougamau,
a group of assets that we have always
believed has tremendous value both
in terms of production potential and
unrecognized exploration upside. The old
adage is “the best place to look for a new
mine is in the shadow of a headframe,” and
the Chibougamau mining camp is a case in
point. There is tremendous untapped value
in these assets, and with Roland Horst on
board to lead CBay Minerals (see page 5),
the process of unlocking that value has
begun. Our immediate goal is to publicly list
CBay on the TSX before the end of the year,
and we are confident that this will mark
merely the end of the beginning of the value
recognition process. Such an opportunity
rarely comes to a junior exploration
company. There is much more to come,
so stay tuned.
At the same time, we are continuing
to advance our other projects in Canada.
The Prairie Lake phosphorus/rare metals
project (see page 6) hosts one of the
largest deposits of its type in the world
containing a vast array of valuable minerals
including rare earth elements (REEs).
Preliminary results show that we can
produce an attractive concentrate using
proven, conventional processing techniques
that will be in high demand with fertilizer
producers and other potential buyers.
At the Diabase Peninsula uranium
project (see page 7) we continue to get all
the right indications. Everything, that is,
except the deposit - yet. Deposits in the
Athabasca Basin are very small but very
rich in uranium value making it harder
to find but worth the hunt. We’ve done
the basic exploration so now the focus is
squarely on diamond drilling, which we did
this winter, and there will be more to come.
We were also pleased to announce
recently that our joint venture partner in
Turkey Xstrata Copper Canada has decided
to drill the Berta copper/gold project (see
page 7). This follow-up to excellent drill
results that included 710.9 metres grading
0.28% copper starting at surface should
start in June, and we look forward to rapid
turnaround of good drill results.
Challenging times call for tough choices.
It was not easy to make the decisions about
Egypt and Sudan, but it was necessary. With
the scarcity of financial resources today,
companies need to devote their energy and
funds where they have the best potential to
create shareholder value in the near-term.
For Nuinsco, this is to focus on exploration
in our own backyard while continuing
to scan the horizon for good projects in
countries other than Canada.
In closing, I’d like to thank our directors,
employees, suppliers and partners for their
loyalty and support. Most of all, I give a big
thank you to our other shareholders who
have stuck with us during difficult times
and who have seen the excitement of a
new discovery. We truly believe you are
in for an exciting ride and we at Nuinsco
will continue to put everything we can into
creating value on your behalf.
René R. Galipeau
Vice-Chairman and Chief Executive Officer
May 14, 2012
with Roland Horst on board
to lead CBay Minerals, the
process of unlocking value
has begun
Printed in Canada using vegetable based inks on chlorine-free paper containing post consumer product and which is 100% recyclable. Project Management and Production: Walter J. Mishko & Co. Inc. Design: Goodhoofd Inc.