Rob Ferguson
Mineral Development Coordinator
Northeast Mineral Development Office
Ontario Government Complex
P.O. Bag 3060
Timmins, ON P0N 1H0 Fax: (705) 235-1620

Dear Sir:

Re: Uranium Exploration in Ardoch Algonquins’ Territory

I am writing in response to your February 2, 2008 letter. We agree that the mediation process has ended without any agreements.

The mediated negotiation ended when Mr. Clark, MNDM negotiator, withdrew support for a fundamental understanding which had been agreed upon by all parties and had been the basis for moving forward with a consultation framework. The parties attending the negotiations had agreed that a consultation process must begin with the expectation of a wide range of possible outcomes, one of which might be that no further exploration would take place. AAFN’s collaboration in building a framework for a consultation was predicated on MNDM’s commitment to that principle stated above. When the MNDM negotiator retracted his support for this principle and insisted that the exploration activities, including drilling, must be concurrent with consultation, AAFN saw little reason to continue discussions.

Although your letter expressed an interest in beginning consultations with our community in connection with the activities of Frontenac Ventures Corporation, we do not regard your offer as genuine.

As we have said repeatedly, it is our view the discussions between Ontario and our community should begin by focusing on whether mineral claims can be registered within AAFN territory and, if so, what types of claims can be registered and what consultations should occur prior to the registration of those claims. Once these discussions have progressed we will be in a position to discuss particular project proposals relating to any lands which remain open for mineral exploration.

However, in clear violation of Canadian law which requires consultation with affected First Nation communities prior to the alienation of land which is claimed by them, or the issuance of any exploration rights with respect to those lands, the government of Ontario did not consult with our community before allowing FVC to stake claims and register those claims. The failure to consult with the First Nation community most affected by this program of exploration renders the mineral claims recorded to date invalid.