United Reef-Nickel Offsets Review and Hants County Update

As a result of the report, new safety fencing and signagewere installed around the hazards to prevent inadvertentpublic access. The Company is evaluating the consultant'sother recommendations including, installation of new concretecaps on the two shafts at an estimated cost of $25-35,000each, covering the exposed tailings beach at an estimatedcost of $90,000 and continued periodic environmental waterquality sampling and reporting estimated at a cost of $10-15,000to add to the knowledge data base on the property.

Mine waste rock was visually inspected and classified intorock types and representative samples have been sent foracid:base account testing. Results are expected in December.

The Nickel Offsets property is approximately 885-acres consistingof both patented and unpatented mining claims. The propertyincludes the past-producing Nickel Offset (Ross) Mine (1943-1957)and is prospective for its nickel, copper and platinum groupmetals potential.

Hants County, Nova Scotia: Source of 12-km by 300-m magneticanomaly remains untested

The Company also reports that it has completed the compilationof its summer auger and diamond drilling program on its100%-owned Hants County Property located in the Kennetcook(Windsor) Basin of north-central Nova Scotia. The main explorationtarget on the property is a prominent 12-km long by 200to 300-m wide positive magnetic anomaly which extends alongthe length of the entire property from the Rawdon Hillsgold belt to the south to the centre of the sedimentarybasin to the north. The magnetic anomaly was initially observedon a total magnetic intensity image derived from an aeromagneticsurvey undertaken for hydrocarbon exploration in 2001 byNorthstar Energy. United Reef confirmed the location andintensity of the anomaly via a ground magnetic survey completedin March 2007.

In the summer, the Company undertook a 4-hole, 2-fence drillprogram to test a 3-km portion of the magnetic anomaly whichextends along the length of the 262 claim property (totalarea of 41 km2). Four vertical holes totalling 503 ft. (153.3m) were drilled. Maximum depth drilled into the predominantlytill-covered basin was 165 ft (50.3 m) and bedrock was notencountered in any of the holes.

Ten-foot composite samples were submitted to SGS MineralsServices in Toronto, Ontario for geochemical analysis. Theresults suggest that within the first 50 metres of till,there is no prominent change in major and minor elementgeochemistry either down hole or laterally between holes.Representative samples were also submitted to ODM Laboratoryin Nepean, Ontario for gold grain counting and heavy mineralconcentrate (HMC) processing with only one gold grain recovered.The HMC's returned low values for the processed till samplesranging from 0.14 to 3.10% (total weight) of the tabledmaterial. Based on these results, there does not seem tobe a concentrating mechanism in the upper 50 metres of tillsection that is responsible for the magnetic anomaly.

The depth of the magnetic source remains unknown. Effortsto obtain the original geophysical data from the aeromagneticsurvey have been unsuccessful. However interpretation ofthe magnetic intensity profiles obtained from the groundsurvey suggests a depth to the top of the magnetic bodyof between 80 and 96 metres.

Several possible explanations for the source of the magneticanomaly have been postulated by the Company, based on informationcompiled to date, which are: a bedrock-hosted concentrationof base metals along a fissure or fault below the till cover;a sedimentary exhalative occurrence at depth (an examplewould be the Walton deposit) hosted by the Scotch Villageshales or Windsor Group shales and evaporites; or the presenceof heavy mineral sands (such as iron and titanium) in analluvial channel derived from mafic rocks to the north.The Company is planning a deeper diamond drilling programto test the magnetic anomaly feature below depths of 50metres to verify these hypotheses.

Gary Nassif, P.Geo., Exploration Manager of United Reef,is the Qualified Person responsible for the technical informationon the Hants County property reported in this news release.

For further information about United Reef please visit ourwebsite at .

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