BRIDGE FINANCING ARRANGED FOR PINEHOUSE DEVELOPMENT

Saskatchewan Northern Affairs is providing $83,000 in bridge financing to help Pinehouse Business North Development undertake additional drilling this summer as it moves to the next phase in developing a limestone quarry.

Pinehouse Business North Development is spearheading a major limestone exploration project near Pinehouse Lake. The project involves collecting geological, geotechnical and hydrogeological data to determine if limestone in the Pinehouse Lake deposit would be suitable for production of quicklime for northern Saskatchewan's uranium mines.

Almost $400,000 in funding has been secured for further exploration work including participation from the uranium mining companies, Cogema and Cameco. The project has also been approved under the Corporate Exploration Incentive Program (CEIP) administered by Saskatchewan Industry and Resources. Under CEIP, financial assistance of up to 25 per cent of eligible exploration expenditures is available to approved projects. Since provincial CEIP funding will not be available until this fall, Saskatchewan Northern Affairs is providing bridge financing to enable drilling work this summer.

"We want to give the further development of the Pinehouse limestone project every opportunity to move forward and to become a commercial reality benefiting the local economy of Pinehouse," Minister of Northern Affairs Buckley Belanger said.

"Northern Affairs Minister and staff have been a tremendous help," Pinehouse Mayor Cecile Caisse said. "Whenever we have needed assistance, they have been there. We are hoping everything will work out and the lime will be of use. But, we are still in the exploration stage and trying to be cautious."

It is anticipated that data collection for the Limestone Project will be completed this summer and will include a prefeasibility study. Further studies and an environmental impact statement will be required before moving into the next phase of development.

The long-term plan could see a start up in two to three years of a facility producing up to 40,000 tonnes of quicklime per year with more than 20 full-time positions and more than 20 part-time jobs.

-30-

For More Information, Contact:

John Charlton Northern Affairs Regina Phone: (306)787-5061