shareholder update, page-2

Courtesy of Vipassana

http://www.directnickel.com/indonesian-sample-arrives-in-australia-stage-1-commissioning-on-track-for-january-start/

Indonesian Sample Arrives in Australia – Stage 1 Commissioning on Track for January Start

Shareholder Update – 17 December 2012

Indonesian Sample Arrives in Australia – Stage 1 Commissioning on Track for January Start

With the arrival of the 200T laterite ore sample from Indonesia at Port Fremantle, another significant step forward with the Stage 1 flowsheet program at the Test Plant in Perth has been made.

Over the past few weeks:

The sample has been transported from Fremantle wharf to Cook Industrial Minerals for grinding to size in readiness for start up in the first week of January

All Plant operators have undertaken a week of induction and training

Equipment commissioning activities include acid introduced throughout the circuit

After incurring some delays (as a result of changes in Indonesian export regulations) with shipping the 200T sample from Indonesia to Perth, the Jakarta based PT Direct Nickel Team completed export formalities necessary ahead of sailing to the port of Fremantle. The sample was loaded onto the ship, which departed from Jakarta on 7th December and arrived on time in Fremantle on the 12th. Access to the wharf for collection of the twelve shipping containers was arranged for the 14th and delivery will have been completed by 18th December.

A full week of induction and operator training activities has been completed in readiness for commencing commissioning activities from 7th January when the CSIRO premises re-open after a break over Christmas.

DNi’s Technical Program Process Engineer, Dr Fiona McCarthy, said “While we have been able to take advantage of the delays with delivery of the sample from Indonesia by working through the pre commissioning activities we are really pleased the feed for the Plant has arrived in Australia. With the operating team being assembled this week for familiarisation and training the momentum is building well for a start to the program in the New Year.”

Construction of the Stage 2 portion of the flowsheet remains on track to be ready by the time Stage 1 has been hot commissioned.

In parallel with the activities in Perth, meetings have been held in Indonesia with suppliers of the sample, PT Antam, to determine the basis for their further participation and co-operation with DNi. A Perth visit by the Antam team to conduct workshops with DNi is tentatively arranged for early January – following a visit to Perth in the week of 7th January by Teck’s senior executive and technical management.