The North Zone is situated in the northwestern part of the Mount Pleasant property (see inset map on Geology page). It hosts ten subzones containing significant resources of zinc, indium and tin. The most economically important of these are the Deep Tin, Upper Deep Tin, and # 4 Tin Lode subzones. The North Zone also hosts the North W–Mo subzone, an anomalous area of metal concentration with noteworthy quantities of tungsten and molybdenum.

Resource Estimate. The following tables show the latest estimate of mineral resources in the North Zone. These figures have been prepared from the 2012 study on behalf of Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers of Toronto (WGM) and are fully compliant with National Instrument 43-101, Standards of Disclosure for Mineral Projects. See news release dated March 1, 2012 for more information.

February 2012 Mineral Resources – North Zone, Mount Pleasant Property

Mineral Resources Class	Tonnage (Millions of tonnes)	Sn Grade, Cut (%)	Zn Grade, Cut (%)	In Grade, Cut (ppm)
Indicated	12.4	0.38	0.86	64
Inferred	2.8	0.30	1.13	70

Note: Reported at a cutoff of 0.41% Sn equivalent

Contained Metal, North Zone Mount Pleasant Property (Capped*)

Mineral Resources Class	Contained Sn (kg)	Contained Zn (kg)	Contained In (kg)
Indicated	47,000,000	107,000,000	789,000
Inferred	8,600,000	32,000,000	198,000

Mine Plan. The mine plan for the North Zone stipulates the open-stope mining method to remove rock, in combination with a decline access to the underground area, and truck haulage to surface. The mine will use mechanized, trackless equipment and employ a multi-skilled workforce to make the most efficient use of manpower.

Production Statistics. The expected overall mine life is 26 years. The mine will produce a total of 3.1 million tonnes of ore over the first ten years. Beginning in year eleven, production will increase to maintain output during a planned reduction in feed grade. The mill will process zinc metal, indium sponge, and tin concentrate, as summarized in the following table (data from the 2010 scoping study by Thibault & Associates Inc., referenced below).

	Zinc Metal	Indium Sponge	Tin Concentrate
In the Mill
Feed grade	1.82%	183 g/t	0.71%
Concentrate grade	50%	4,900 g/t	46%
Metal recovery	79%	75%	75%
Final Products
Total production	4,000 t/y	40 t/y	3,200 t/y
Estimated revenue	$8 million	$20 million	$20 million
Price in $US/kg (2010 scoping study)	2.45	580	14.70
Current price ($US/kg)	2.00	575	21.78

Financials. According to the projected mine plan and production statistics, the North Zone will achieve a pre-tax Internal Rate of Return (IRR) of 29% over its ten years of operation. The following table shows additional financial information for the North Zone (figures from the 2010 scoping study by Thibault & Associates Inc.).

Initial mine life	10 years
Mill production rate	850 t/day
Pre-production capital	$71 million
Annual revenue	$48 million
Annual operating cost	$23 million
Annual cash flow	$25 million
Pre-tax net present value @ 8%	$80 million
Pre-tax internal rate of return	29%

Development Programs. Adex engaged SGS Lakefield to perform bench scale performance, locked cycle testing and pilot plant operations to produce tin concentrate and zinc-indium concentrates. More than 60 tonnes of North Zone resource material over a 120 hour period were reported. A zinc/indium concentrate grading 48.2% zinc and assaying 5,310 parts per million (ppm) indium with 95.6% zinc and 91.7% indium recovery was produced in locked cycle test work completed in early 2011.

During late 2010 and early 2011, Adex completed a pilot program to advance the development of its hydromet process for the production of indium sponge metal and zinc metal.  This hydrometallurgical test work, developed by Thibault and Associates Inc. in Fredericton, New Brunswick, resulted in for the production of indium sponge metal grading 96.25% indium and zinc metal grading 98.89% zinc. Adex is considering patent applications with respect to certain aspects of this hydromet process technology.

Adex also engaged Xstrata Process Support of Sudbury, Ontario, in 2011 to develop pyrometallurgical flowsheets for the production of tin metal from tin concentrate. Adex anticipates tin metal assaying higher than 95% tin from the initial flowsheet. The company believes that the potential production of tin metal, as a final saleable product, could have a significant impact on the economics of a mining operation at the North Zone. Final test results are pending.

The North Zone testing that was completed to date has given Adex good direction in how to handle the metallurgy of that resource, but further testing is required.

Drill Results and Resource Estimate. Results from the 2011 drill program were released on January 31, 2012 and identified new intercepts containing high-grade tungsten, molybdenum and bismuth at the North Zone and Saddle Zone, which lies between the North Zone and Fire Tower Zone about 500 metres from each. The high-grade drill results from our fall campaign have shown the potential for a significantly longer mine life for our tungsten-molybdenum-bismuth project. Results from the updated NI 43-101 on the North Zone were announced on March 1, 2012.

Exploration and Development provides information about recent development work on this zone.

References Cited

NI 43-101 independent technical report, Mount Pleasant North Zone, preliminary assessment, Mount Pleasant Property, southwestern New Brunswick, Canada. 2010. Report prepared by Thibault & Associates Inc., Fredericton, New Brunswick, January 22, 2010. [scoping study]