A brief summary of key option terms relating to Teck Resources Ltd. earn-in are below:

Teck optioned the Lorraine project in June, 2005 and has now incurred a total of $9.0 million of expenditures to earn a 51% interest in the property, including direct expenditures of $7.5 million and $1.5 million in indirect expenditures through an earlier loan funding agreement which has been forgiven.

Teck has also completed an earn-in for a 100% interest in the adjoining Jan-Tam-Misty property by making a final option payment to the vendors and these claims now constitute part of the Lorraine project. Jan-Tam-Misty is subject to certain royalty rights. The combined property now covers an area of approximately 39,046 ha (96,481 acres).

Teck may now increase its interest in the Lorraine project to 60% by sole funding a feasibility study. Teck also has the option to earn an additional 5% interest in the project if a positive production decision is made by finding financing for Lorraine Copper. The maximum ownership of Teck under the option agreement is 65%.

Teck shall incur a minimum of $500,000 in expenditures per calendar year until the completion of a feasibility study or earlier termination of the right to earn-in up to 65%. If for three consecutive years Teck has not incurred a minimum program then the right to earn the additional interest shall terminate and a JV will be formed and Teck shall have no further obligation to sole fund Expenditures.

To summarize the option agreement, Teck's ownership in the property can go up to 65% if a production decision is made and in this situation Lorraine Copper would be a 35% owner in a producing mine.