Willow Creek Mine - Project Update

April 2006

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CAUTIONARY STATEMENTThe TSX has not reviewed and does not accept responsibility for the adequacy oraccuracy of this information.

CAUTIONARY STATEMENT

This information contains certain “forward looking statements”, as defined in the UnitedStates Private Securities Litigation Reform Act of 1995, that involve a number of risks anduncertainties including but not limited to economic, competitive, governmental andgeological factors effecting the Company’s operations, markets, products and prices andother risk factors. There can be no assurances that such statements will prove to beaccurate and actual results and future events could differ materially from those anticipatedin such statements. Factors that could cause future results to differ materially from thoseanticipated in these forward-looking statements include the Company’s dependence onthe steel industry, volatility in coal prices, accidents and other risks associated withmining operations, the Company’s need for and availability of additional financing, therestrictions imposed under the Company’s existing debt arrangements and its debt servicerequirements and the other risk factors discussed in greater detail in the Company’svarious filings with the Securities and Exchange Commission and Canadian securitiesregulators, including the Company’s Form 20-F dated September 30, 2005.

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Agenda

Company Overview

Coal Products

Overview of Operations

Financial Outputs

Growth Opportunities

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Company Overview

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Achievements

Successfully developed the first “greenfield” metallurgical coalmine in Canada in the last 20 years

– Mining commenced July 2004

– First product shipment in September 2004 – PCI Coal

Completed construction of infrastructure (coal washing plant) inNovember 2005 to increase potential capacity to 180,000 t/month

– Completed first full winter of operation

– Plant now operating on a stable and effective basis

Delivered 1 Million tonnes of PCI coal to customers

Deliveries of hard coking coal commencing in May, 2006– Coking coal sales have been secured in Japan and Europe

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Strategy

Achieve long term supply arrangements for coking coal and PCI tokey Pine Valley customers

Increase output from the Willow Creek deposit to full plant capacityof 2.2 million tonnes per year

Maintain low cost position

Explore nearby mineral property interests

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Location and Infrastructure

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Technical Use of PCI and Coking Coal

PCI– Replaces coke in the furnace– Assists in maintaining furnace stability– Reduces silicon content of pig iron– Improves consistency of the quality of hot metal

– All major steel mills have PCI facilities or are seeking to increase(optimize) injection rates

Coking Coal– Used to make coke which holds the iron mix in the blast furnace and

provides carbon to the metal

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Crude Steel Making Process

64% of total steel production is based on the smelting of iron ore inblast furnaces(1)

PCI is a direct replacement for coke in the blast furnace

Coal requirements per tonneof hot metal

– 350 – 400 kg coke madefrom 525 – 600 kg cokingcoal

– 100 – 200 kg of PCI coal

(1) World Coal Institute

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Diversified Portfolio of CustomersBuilding business with top steel producers

– Customers in Japan, Korea and Europe

Shipping samples to 21 different customers for testing

Customers want to support independent producers

Current Customers Top Active Prospects

Company Rank 04 Prod Region Company Rank 04 Prod Region

Arcelor 1 46.9 Europe US Steel 7 20.8 U.S.

Nippon Steel 3 32.4 Japan ThyssenKrupp 9 17.6 Europe

JFE 4 31.6 Japan Gerdau 13 14.6 Brazil

POSCO 5 30.2 Korea China Steel 19 10.9 China

Corus Group 8 19.0 Europe Stelco 52 4.9 Canada

Riva Acciao (Ilva) 11 16.7 Europe USIMINAS 53 4.7 Brazil

Sumitomo 14 13.0 Japan Dofasco 57 4.4 Canada

Kobe Steel 27 7.7 Japan Tata Iron & Steel 58 4.2 India

Note: Ranked by 2004 production, millions of metric tonnes

Source: Company reports; the International Iron and Steel Institute (www.worldsteel.org)

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Overview of Operations

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Willow Creek Plant Site

27 June 2004 9 July 2004

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Overview of Mine Development

May 2005

April 2005April 2005

July 2005

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Plant Site

October 2005

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Mining Operation

Coal Seams:

Coking PCI

1 5

2 6

3 7

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Cross Section of Willow Creek Central Pits

200

100

0

(100)

(200)

Gray shading

designates

mining areas

Actual exploration

drill holes shown asblack lines (roughly

perpendicular to

seams)

Dis

tance A

bove /

(Belo

w)

Refe

rence P

oin

t (M

ete

rs)

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Mine Site

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Environmental Management

Monitoring– Air quality– Water quality (surface and sub-surface)

Managing– Wildlife interaction– ML/ARD– Traffic and access

Reporting– Weekly/monthly to Govt– Annual reclamation

1824 April 06

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Production Forecast and Product Mix

Coking coal commercial productionin 2006

– Coking coal specifications arebeing well received by customers

Production forecast based on thefollowing:

– No production outside WillowCreek

Flexibility to increase percentage ofcoking coal produced.

Note: Fiscal year ends March 31

Source: Technical Report, 28 Jul 2005, pg. 25-17 and recent press

releases

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

JFY 2004 JFY 2005 JFY 2006M

illions

of

Tonnes

Willow Creek Coking

Willow Creek PCI

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Key Willow Creek Statistics

LV PCI saleable reserve: 7.1 mm tonnes

Coking coal saleable reserve: 7.7 mm tonnes

Mine production capacity: 2.2 mm tonnes/yr

LOM Stripping ratio: 5.0:1

Mine Life: 8 years approx

Processing feed rate: 450 tph

Total plant capital costs: $33 million

Area to be disturbed: 528 Ha

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Financial Impacts

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Employment - Direct

1575152Grand total

110-110Total

5-5Salaried

105-105Hourly

Mining contractor

47542Total

19514Salaried

28-28Hourly

PVM employees

TotalVancouverMine Site

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Employment - Indirect

Chetwynd region– Suppliers of equipment parts and office goods– Suppliers of services (water, rubbish, tires)– Accommodation and meals

Other BC– CN Rail crews– Neptune and Ridley port crews– Consultants - environmental, mining (PG, Van)– Legal advice – contracts, purchases (Vanc)– Financial – auditors, bankers (Vanc, Tor)– Fuel supply (PG)

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Financial Impacts - 2006

Wages paid – Tercon and PVM $13 million

Charges paid to CN / Ports $31.8 million

Paid to mining contractor $42 million

Goods/services from northern BC $14.5 million

Goods/services from remainder of BC $1.2 million

Taxes/licences $3 million

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Growth Opportunities

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Growth Opportunities

Processing infrastructure in place to support additional tonneage– Current facility has a processing feed rate of 450 tph– Additional capacity could be added with minimal Cap. Ex.

Drilling program complete at Pine Pass for structure and brand split– Data gathering commenced for permitting process– Production decision targeted for mid 2006– Additional quality drilling ongoing

Other prospective properties for exploration depending on marketfundamentals

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Other Exploration PropertiesExploration completed by Gulf Canada and Shell Canada in the 80’s identified presence ofcoal seams at other sites (not NI 43-101 compliant)

– Fisher Creek– Crassier Creek– Falling Creek– Willow Creek South and West

Following completion of Pine Pass theCompany will turn its attention toexploration work on other properties ifmarket conditions warrant

Other licenses are in close proximity toWillow Creek Project

Thank You