May 7, 2008
Adex Mining Inc.
Interview on Resource World Radio
Guest: Kabir Ahmed, President and CEO, Adex Mining Inc.

ROBERT GRAHAM: The mining story for this edition of the Resource World Radio show is focused on New Brunswick and eastern Canada. That's where Adex Mining Inc. is working to make the case for restarting an old moly-tungsten mine that used to belong to BHP Billiton. Joining us is the President and Chief Executive Officer of Adex Mining, Kabir Ahmed. Kabir, welcome to the program.

KABIR AHMED: Thank you Robert for inviting me to your program.

GRAHAM: How long did BHP Billiton operate the mine in question at this site in New Brunswick which your company now owns? What metals were pulled out of the ground by BHP Billiton, and why did that mine close?

AHMED: BHP Billiton owned the Mount Pleasant Mine property between 1982 and '85. The Mount Pleasant Mine property, which is now owned by Adex, was operated by BHP Billiton at that time. They milled approximately one million tonnes of a molybdenum-tungsten ore, and they produced a tungsten ore concentrate which was eventually sold in the marketplace. In 1985, metal prices generally speaking collapsed, and the mine became uneconomic. BHP decided to simply close down the mine and shut down operations. The project has been abandoned since then and has gone through a number of different ownerships. Adex picked up the property in 1995 and since that time has basically left the project dormant. In 2006, with the reemergence of metal prices globally, we felt that the project was now economic again. Our view for the management team is to bring the project back and resume mineral production.

GRAHAM:  Okay, in addition to tungsten and moly, there is also tin and a rare metal, indium, on the property. Any idea as to how much of this stuff is still left in the ground and can be brought up to the surface at a reasonable cost? What sort of shape is this site in today in terms of facilities, both above ground and below ground?

AHMED: The Mount Pleasant mine project is very unique in the sense that it does host two defined deposits. That first deposit as you referenced, Robert, is the tungsten and molybdenum deposit. What we know from an inferred resource estimate that was done by Watts, Griffis and McQuat in 2006 is that the tungsten and molybdenum deposit hosts approximately 13 million tonnes of ore with approximate grading of tungsten at 0.35% and moly at 0.21%. In simple language, what that means is that there is an approximate in-ground content of 60 million pounds of molybdenum and 100 million pounds of tungsten. With current metal prices, just the in-ground value, now I am not talking about recovery rates, but the in-ground value is in excess of C$2 billion. The extraction of that is relatively simple because it was a past producing mine. We would have to, of course, rehabilitate some of the infrastructure and equipment, but with the proper methodology, which is always present today, we would be able to bring that into production relatively quickly. The tin and indium deposit was not mined prior, but there is a known deposit there. Back in 1997, Aker Kvaerner Metals, which is a world renowned engineering consulting firm, did a resource estimate. At that time. they estimated that there was 3.7 million tonnes of ore with tin at 0.8% and indium at 107 parts per million. Those are very high and significant numbers.

GRAHAM: Everybody knows what tin is used for, at least a lot of people have a very good idea, but indium, as I mentioned, is a rare metal. Where can we find that metal today in terms of use?

AHMED: Well, indium is used as a thin film coating for flat-screen TVs - LCD and plasma screen TVs. It is also used for your laptop computer screens as well as cell phone technology. An emerging application for Indium is also as a coating for photovoltaic cells in solar energy, and that is probably where most of the demand will be over the next few years as we move towards alternative approaches and long-term sustainability in terms of energy use.

GRAHAM: So what do you do now to advance this property and get to the stage where perhaps you are in a position to seriously take a look at kick-starting operations and getting mining back on track? What has to take place between today and then?

AHMED: Well, the pathway to resuming mineral production is probably going to be easier on the tungsten-molybdenum zone simply because it was a past-producing mine and all of the infrastructure is relatively intact, including the presence of a fully permitted tailings dam, which if we were to do today would cost us maybe C$20 million and maybe two years of regulatory approvals timeline. So we are closer to production on the tungsten and molybdenum deposit. Nevertheless, we need to do a program of definition drilling on both deposits to bring the resource estimates to current National Instrument 43-101 standards and preferably to the 'indicated' level of confidence. Why that is significant is that you need a minimum of an indicated resource estimate to move forward to the feasibility phase. So our pathway to production really follows a program of definition drilling, which we actually have already initiated in February. We have completed drilling on the North Zone, which hosts the tin and indium, and we have now moved to a definition drilling program on the Fire Tower Zone which hosts the tungsten-molybdenum. Over the next few months, once drill results are available and have been assayed and the analytical results are back, we will then be engaging Watts, Griffis and McQuat to do an upgraded resource estimate on both deposits. Once we are able to do that we will then engage a consulting firm to commission a feasibility study for us which will determine the economic viability and potential of both deposits being put into production. If we have a positive feasibility study, which we believe we should have because of the robust market prices for all four metals today, we can then move forward to mine development and regulatory approval from the Province of New Brunswick.

GRAHAM: Does your company today have what it takes to become a producing company? Do you have the expertise on staff and all of that?

AHMED: Yes we do. We have both the management as well as the technical expertise on the ground in New Brunswick moving the project forward.

GRAHAM: Do you have the money in the bank to see this through to that ultimate day when you get the yea or nay in terms of resuming production?

AHMED: Well we were very successful in 2007, when we did a total of C$12 million of financing; that should carry us for the next 24 months and move this project to feasibility without having to go back to the market for additional sources of financing.

GRAHAM: Can you see this company going it alone right through to the very end? Or when you do get to that final stage, then we could start asking about the possibility of joint venture partners or whatever?

AHMED: Adex management believes that we can go it alone and we certainly have the technical as well as the management expertise to move this project to production. However, when we do achieve [the] feasibility phase study, and I'm hoping that the feasibility report will be a positive report, we would be very open to looking at joint venture partners with the majors who could perhaps assist us in actually moving the mine into production. So that would certainly be open to us.

GRAHAM: Kabir, we'll end it there. Thank you very much for this and good luck with this project, sir.

AHMED: Thank you so much Robert. It was a pleasure to be on your program.

GRAHAM: That was Kabir Ahmed, President and CEO of Adex Mining Inc. Adex Mining's stock trades on the TSX Venture Exchange, under the ticker symbol ADE.