Cover Letter, April 30, 2003 Production Feasibility Study by Hatch, Light Metals Division: “In February 2002, Leader Mining International awarded Hatch the mandate to complete a Production Feasibility Study on the Cogburn Magnesium Project. The Cogburn Magnesium Deposit is a large ultramafic intrusive body containing consistently high-grade magnesium silicate (+24% magnesium). The discovery is located 120 kilometres east of Vancouver, British Columbia, Canada near the town of Hope. The location has a significant infrastructure advantage in that electric power, natural gas, mainline rail, provincial highways and barge access to nearby deep-sea ports are all adjacent to the property. In addition, the project is located in a mining and forest products extraction region with extensive supporting skilled labour and a broad spectrum of service industries. The enriched Emory Zone has been subjected to an intensive drilling and sampling program. Under the direction of HATCH, Process Research ORTECH has pilot tested a composite sample, for hydrochloric leach extraction of magnesium. In addition, leach solution was tested at Messo in Germany to define evaporation and crystallization parameters for the preparation of cell feed for the STI/VAMI magnesium electrolysis technology. In April 2002 Leader signed an option with STI/VAMI for the use of the magnesium electrolysis technology for the Cogburn Project. Successful testing has resulted in preliminary design parameters for development of the Cogburn Project flowsheet. The Cogburn deposit because of its large size, high magnesium grade, low impurity levels, favourable metallurgy, and proximity to infrastructure has the potential to be developed into a world-class, environmentally friendly, long-Iife magnesium operation. Process information generated during the Study was used to develop capital and operating costs for the project at the selected site location. Following discussions with BC Hydro and Duke Energy, energy costs have been established for the Cogburn Project. A market evaluation has been completed by Hatch and Leader Mining International proposes an aggressive entrance into the magnesium market. Total plant capacity is 131,000 t/a magnesium metal and alloys. The choice of proven technology will minimize risk for the implementation of the Cogburn project. Hatch has determined cost objectives of US$1.24 billion for the construction of the plant facilities and a magnesium cash cost of US$0.70/lb magnesium, providing an internal rate of return in the range of 6.5 to 18.1% based on sensitivity analysis. The test-work and the engineering completed to-date indicate that the Cogburn Project is technically feasible and economically viable. Hatch looks forward to the opportunity of assisting Leader Mining International in the development of this Project and we thank you for your forthright assistance in this study.”