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Highbank Resources Ltd.

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TSX VENTURE: HBK | OTC: HBKRFAggregate Production on the Doorstep of Northern Construction Boom

aggregate products. A proposed 200 t/hour processing plant will be constructed to process the material. The loading facility

“Over 30 billion dollars in infrastructure development is slated for the northwestern BC ... With the massive infrastructure developments about to be undertaken in the

northern BC ports, an enormous quantity of aggregate will be needed.”

Both precious and base metals have been disappoint-ing investment sectors over recent years as investors have largely avoided economically sensitive sectors and stocks, despite a general upswing in both North Ameri-

can and global economic forecasts. Exceptions can be found, to be sure, but it is always difficult for a junior to fight the broader market tides.

Resource sector investors may be interested in a new min-ing opportunity developing in BC’s north that lies well outside the conventional metals markets. Massive developments at the northern coast ports of Prince Rupert, Stewart and Kitimat are being planned to build the infrastructure needed to support BC’s emerging liquefied natural gas (LNG) and shipping in-dustry. Enormous amounts of concrete will be poured for the LNG plants, power stations, and port facilities.

THE SWAMP POINT NORTH AGGREGATE DEPOSIT

Highbank’s Swamp Point North Aggregate (SPNA) Deposit is a NI 43-101 compliant multi-million tonne sand and gravel resource that lies on deep tide water on the Portland Canal some 78 miles north of Prince Rupert and 38 miles south of Stewart. The deposit’s location near the construction sites miti-gates much of the delivery cost and gives the company a distinct advantage to be a significant supplier of aggregates to these projects, as transportation costs dictate that the most economi-cal source of aggregate is usually that found closest to where it is needed.

The deposit is described as a glacial outwash complex com-posed primarily of well-sorted gravel and sand, with an aver-age thickness of about 37 metres. Highbank commissioned an NI 43-101 Technical Report by Associated Geosciences of Calgary in 2007 that included a resource calculation showing measured and indicated resources of over 70 million tonnes of material.

Processing of the aggregates will require screening, crush-ing, and washing to produce a variety of high quality sand and Swamp Point North Aggregate Property in Northwestern British Columbia.

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planning through to testing, development, marketing, production and reclamation.

Company president Victor N. Bry-ant, MAusIMM; IEng, has over 40 years in the mining industry in such capacities as operations and project engineer, plant manager, senior process metallurgist, and mill/concentrator superintendent. He has brought several deposits around the world into production with noted engineering firm Flour Daniel, and worked for such majors as Billiton International, Sherritt Gordon, and Anglo American.

CFO Gary Musil is a long-time figure in the Vancouver mining community, serving on the management and boards of several junior exploration companies operating in-ternationally and in British Columbia, and previously served as the financial controller for a producing silver-lead-zinc mine in BC.

DYNAMIC CONCLUSION

With only a minor royalty payable on pro-duction and minimal processing needed to meet client specifications, the major cost to deliver aggregate lies in the shipping. The Swamp Point North project is ideally situated to supply the essential component to the developing north coast regional con-struction boom.

The deposit’s location allows easy load-ing of product for water-borne delivery to the ports, which has the side benefit of help-ing keep heavy trucks off of the local roads.

The local market for the aggregates is the near-term driver for bringing the deposit into production, but once up and running, markets farther afield will pro-vide further sales opportunities.

Shares Outstanding: 73 million6 Month High: $0.13 / Low $0.03

FOR MORE INFORMATION

T: (604) 683-6648E: highbank@telus.net

www.highbankresources.com

submitted major LNG project propos-als in response to a provincial call for expression of interest to situate facilities on Crown land 20 miles north of Prince Rupert at Grassy Point.

Aggregate is the principal component of both concrete and asphalt, and so is an essential material for all modern building projects. With the massive infrastructure developments about to be undertaken in the northern BC ports, enormous quan-tities of aggregates will be needed. As a point of comparison, the construction of just the third runway at Vancouver Inter-national Airport consumed 2.5 million tonnes of aggregates.

Highbank has received its first com-mitment to purchase 100,000 tonnes of ag-gregate from its SPNA deposit from West Fraser Concrete which operates the only concrete plant in Prince Rupert.

STRONG FIRST NATIONS SUPPORT

Relations with the Metlakatla First Na-tion have been very constructive. Late in 2012, Highbank and the band announced a Cooperation Agreement to provide the Metlakatla with the opportunity to partici-pate in the economic benefits arising from the development of the SPNA within their traditional territory. Among other things, the agreement ensures the project will be operated in an environmentally-responsi-ble manner and will provide band mem-bers with both opportunities for employ-ment and to provide goods and services to the project. Highbank Resources has also agreed to sponsor the Northern Aboriginal Machinery School, a heavy duty machinery training school for First Nations students preparing them for full-time employment with mining, oil and gas, and construction companies.

EXPERIENCED TEAM

Highbank’s board of directors includes newly appointed James Place, P.Geo., who has more than 25 years of experience in the aggregate and engineering fields. Jim received his degree from the University of Victoria, and has worked throughout northern and coastal BC on all phases of aggregate projects from exploration and

will be designed around either a convey-or or direct barge loadout. The estimated capital costs are in the order of $2.6 mil-lion dollars.

The company is currently working with BC’s Ministry of Energy, Mines and Natural Gas to fine tune its permit appli-cation to advance the project to the pro-duction stage. Highbank plans to produce, load and deliver aggregate at a trial rate of 235,000 tonnes in their first year of opera-tion. The company anticipates ramping up annual production to 1.5 million tonnes as early as the fourth year after full permit-ting has been obtained.

Aggregate is an essential resource, but the aggregate industry is often an un-popular neighbour because of the noise, dust and the heavy truck traffic it can create. The Swamp Point deposit escapes these criticisms by virtue of its remote lo-cation with no road access.

REGIONAL AGGREGATES REQUIREMENTS

Over 30 billion dollars in infrastructure development over the next decade is slat-ed for northwestern BC, including road and rail capacity, construction of lique-fied natural gas plants, expansions of bulk and container terminal capacity and a large upgrade of Rio Tinto’s aluminum smelter at Kitimat.

In addition, four more multinational companies, including Nexen, Imperial Oil/Exxon Mobil, Australia’s Woodside Petroleum and Korea’s SK E&S have

WRITTEN APRIL 2013

“Late in 2012, Highbank and the band announced a Cooperation Agreement to provide the Metlakatla with the opportunity to participate in the economic benefits arising from the development of the Swamp Point North Aggregate deposit within

their traditional territory.”

Exploration drilling at the Swamp Point North Aggregate Deposit