Huldra Receives $2.28M in Smelter Payments

The Company continues to see significant monthly increases in production and shipments of concentrates. Since the modifications made to the crushing circuit and screening of mill feed announced on February 5, 2013, 55.1 dry metric tonnes of lead/silver concentrate and 53.9 dry metric tonnes of zinc concentrate were shipped to the smelter for the first lot period of the month, being February 1 to February 15, 2013. The Company has received 85% provisional payments for the first lot period totaling US$445,061 plus HST. In the second lot period, being February 15 to 27, 2013, an estimated 96 dry metric tonnes of lead/silver concentrate and 58 dry metric tonnes of zinc concentrate were shipped to the smelter. Once the 85% provisional payments for the second lot period have been received, a February provisional monthly total will be released. The total smelter payments received up to and including the first lot period are US$2,228,043, including all provisional payments and any final payments received to date. All payments are made pursuant to the previously announced concentrate purchase agreements. Provisional payments are based on the best available information at the time of invoicing. Final payments are subject to adjustment based on independent assay results and metal prices.

The Company continues to make adjustments to the mill equipment and processes to maximize metallurgical recovery and throughput. Since the last update, the gravel screening plant allowed for a significant increase in throughput. Permanent adjustments to the crushing circuit have also been implemented to deal with higher moisture content. We expect that the temporary screening can be discontinued in the near future due to the permanent changes that have been implemented. There are still minor modifications and adjustments being made to the equipment and processing that requires brief stoppages. However, the total utilization of the mill continues to increase and we expect monthly production of concentrates will continue to increase. The Company expects to announce commercial production in the first quarter of 2013.
To date, a total of 18,000 tonnes of mill feed has been transferred from the Treasure Mountain Mine to the Merritt Mill site. The Company is currently trucking approximately 185 tonnes per day from the stockpiled mill feed from level 1, stope 1, and once that is completed, the Company will begin hauling mill feed from the level 1, stope 3.

The underground drill program is planned to commence by March 15, 2013. Two diamond drill platforms totaling 174m in size have been constructed. A drill contract for the 4,400m underground diamond drill program has been signed.

The Company has completed 150m of raise and bulkhead development for upcoming mining of level 1, stope 2, which is the third stope to be mined from the uppermost level of the mine. Development of the drawpoints for stope 2 is complete, with 78 metres of drawpoints completed. The first lift of mining within stope 2 has already been drilled in preparation for production. Based on current development rates, Huldra expects to commence mining of stope 2 on or around March 6, 2013.

Information in this news release, related to the underground diamond drill program, has been approved by Mark Williams, P. Geo. Information in this news release related to mining activities has been approved by Al Beaton, P. Eng and Mine Manager. For more information about the Company’s Treasure Mountain Property, see the technical report entitled “Technical Report, Project Update, Treasure Mountain Property” dated June 7, 2012, available under Huldra’s profile on SEDAR at www.sedar.com.