Prospectors and Developers Association of Canada president tells Australia's 
mining and exploration industry that Canada's flow-through tax credit has been 
an important contribution to the country's global leadership in mining.

     The president of the Prospectors and Developers Association of Canada 
(PDAC), Scott Jobin-Bevans, told the Association of Mining and Exploration 
Companies' (AMEC) annual convention on Wednesday that Canada's flow-through tax 
credit is a cost-effective method of increasing domestic mineral exploration 
and has contributed to Canada becoming the global leader in mining. He 
supported the Australian industry's interest in the introduction of such a tax.

     "The challenge for our industry is find a way to finance exploration,
which by its nature is both high risk and expensive," said Dr. Jobin-Bevans.
"That is the wisdom behind the Canadian flow-through tax credit. It helps
raise exploration finance by reducing the risk borne by investors, not
companies. By reducing risk to investors, companies are able to raise more
capital than they would if investors, alone, carried it."

     The Canadian government has estimated the current average annual cost of
the flow-through program at about CDN $250 million. If flow-through finance
leads to the discovery of just one mineral deposit that becomes a mine, it
more than offsets the government's cost of the program for several years, the
PDAC president said.

     Flow-through financing has contributed to the discovery of most of the
major mineral deposits in Canada in the last 30 years, Jobin-Bevans said. It
is particularly useful for: early-stage exploration; grassroots/greenfields
exploration and also as a stimulus for regional economic development.

     He cautioned against the introduction of the proposed resource super tax
in Australia, calling it short-sighted and imprudent.

     "It fails to understand the high-risk nature of raising finance for
exploration and mining," Jobin-Bevans said. "Mining is a capital intensive
business. As a result, policies that cause capital to take flight are
counterproductive."

     Canada became the top country in the world for mineral exploration
spending in 2002, following the introduction of the current enhanced
flow-through program. It supplanted Australia which is now No. 2. Exploration
expenditures in Canada accounted for 16 per cent of the world's total in 2009,
compared with Australia, which accounted for 13 per cent last year.

     Dr. Jobin-Bevans' full presentation is on the PDAC's website at
www.pdac.ca.

     About the PDAC:

     The Prospectors and Developers Association of Canada is a national
association representing the mineral exploration and development industry. Its
7,000 individual and corporate members are involved in the exploration,
discovery and development of new mines and new wealth. The PDAC's annual
convention is the world's largest annual gathering of the mineral industry.
PDAC 2011 will be held March 6-9 in Toronto.

    SOURCE: Prospectors & Developers Association of Canada

    CONTACT: Scott Jobin-Bevans, 
             President, Prospectors and Developers Association of Canada,      
             sjbevans(at)pdac.ca; 

             Saley Lawton, 
             Director Communications, Prospectors and Developers Association  
                of Canada, 
             +1 (416) 362-1969 ext 225, 
             slawton(at)pdac.ca