Ports and Ocean Freight

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MO R R I S O N CO P P E R/ GO L D PR O J E C T

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Morrison Copper/Gold Project

Ports and Ocean Freight

Prepared by:

Pacific Booker Minerals Inc.

August, 2010

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Ports Ocean Freight Rev-0.doc ₂

Executive Summary

Pacific Booker Minerals (PBM) Inc. proposes to develop the Morrison Copper/Gold Project (the Project) in north-central British Columbia. This report addresses the use of the Port of Stewart and Ocean Freight required for export of copper concentrate for the Project.

PBM proposes to ship an average of ~130,000 wmt of copper concentrate/year to Asia via Stewart Bulk Terminals (SBT). Other existing mines as well as mines proposed or in development in North Western BC also intend to use this same facility. SBT indicates it generally intends to provide service to mines on a first come, first serve basis thus, as PBM is well progressed being in the Environmental Assessment Review stage, this policy places PBM favorably in their queue. Further SBT has confirmed it can provide, using the existing site or expanded site area, adequate storage for the concentrate from PBM and the other mines. Additionally the ship handling and loading facilities should be adequate without expansion.

Regarding ships, PBM’s requirement is based on shipping 12,000 wmt per batch for approximately 11 trips per year. The Port of Stewart can handle ships up to ~50,000 dwt. Therefore it is anticipated that ships will be either of the size Handy (10,000 to 35,000 tonnes) or Handymax (35,000 to 59,000 tonnes).

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Ports Ocean Freight Rev-0.doc

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1. Introduction

This report addresses the use of the Port of Stewart and Ocean Freight required for export of copper concentrate for the Project.

2. Port of Stewart

2.1 General

SBT currently operate concentrate storage and loading facility at the Port of Stewart. The facilities at SBT include two concentrate storage buildings, a ship loader and conveyors to and from the concentrate storage buildings, together with a shop, electrical building and wash pad.

The concentrates from the proposed Morrison Copper/Gold Mine will be handled through this facility. No additional ship loading equipment or capacity will be required at SBT to accommodate these concentrate. The current storage sheds were used for concentrate from both Huckleberry and Eskay Creek Mines. SBT has provision in the permitted design for this facility for a third storage shed to be located on the other side of the conveying system to the ship loader. Given the current timing for cessation of shipments from Huckleberry (projected closure 2011 or 2012) and Eskay Creek (closed 2008) Mines, it is likely that existing storage capacity at Stewart will be available for Morrison concentrate obviating the requirement for additional storage facilities at the SBT.

It should be noted that in addition to the Morrison Mine a number of other mines including Yukon Zinc, Galore and Red Chris Mines propose shipments of concentrate from Stewart. In the event these and other various projects proceed concurrently it is likely that the third storage shed will be required at SBT. In the event that even more storage capacity is required SBT has a permit to reclaim additional land, doubling their present site

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from 2 hectares to 4 hectares. Even more space is available if a quarry area, across the highway from the present site, is developed for concentrate storage. No additional ship loading facilities would be required as the existing ship loader has the capacity to handle concentrate.

2.2 Technical Details

STEWART BULK TERMINALS LTD. P.O. Box 278

Stewart, British Columbia Canada V0T 1W0

Telephone: (250) 636-2215, (250) 636-2215 Fax: (250) 636-2348

The Port of Stewart holds the distinction as being Canada's northern most year round ice free port. It is an uncongested deep harbour with logging infrastructure and road links to Highway 16 and CN Rail. The existing bulk terminal has capacity to increase usage and volume to and from Pacific markets.

Dock Length 244m, maximum depth alongside 12.2m. Mooring buoys at either end of the dock.

Commodity: Copper concentrates, rock.

Equipment: Fixed conveyor swing boom loader capable of a loading rate of 750 MT/hour of concentrate and 800 MT/hour of rock.

Boom height is 19.1m above HW level and 21m above LW level. Boom's reach is 15.2m from dockside.

Ore is segregated by mine.

Typically a mine requires a minimum tonnage of 12,000 tonnes to justify bringing in a ship. Ore is then shipped in one or two holds of a ship. Larger mines (>150,000 tonnes per year) may opt for larger shipments.

When ordering a ship it is advisable to allow a one to two week window for arrival…….therefore each company needs excess storage capacity if ship is delayed (e.g. Pacific Booker may require 18,000 tonnes of storage = 12,000 tonnes plus 400 tonnes * 15 days = 6,000 tonnes)

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5 The only mine currently shipping is Huckleberry (historically 160,000 tonnes, now ~90,000 tonnes per year with shipments, after 2012 uncertain but potentially zero). Yukon Zinc (~130,000 tonnes per year) is expected to begin shipping concentrate in 2010.

Other mines have expressed interest in shipping through the port however, due to uncertainty in scheduling of commencement of mining operations; the Port typically serves customers on a first come first serve basis.

2.4 Concentrate Storage Capacity

2.4.1 Existing

Facilities

Current Port storage capacity is 34,000 to 36,000 tonnes based on current building designs.

2.4.2 New Facilities Existing Site

Additional storage capacity is obtainable by optimizing the building designs (e.g. spacing between buildings, height, more buildings, etc). Via building optimization and additions sufficient land area exists to double the storage capacity to 70,000 tonnes.

2.4.3 New Facilities on Re-Claimed Land

Using existing permits the land area can be increased to at least double the port area from 2 to 4 hectare and again roughly double the port storage capacity to exceed 150,000 tonnes.

2.4.4 Additional Expansion Potential

Additionally across the highway a 10 ha quarry has been established by SBT. The quarry is currently being used as a source of material for area construction projects and will ultimately be used as a source of material for the land reclamation. The site of the quarry will also be usable to expand the available concentrate storage significantly with ship loading achieved using a conveyor extending over the road. Assuming a net of 8 ha is available from the quarry area the total storage may reach 12 ha. Assuming 30,000 tonne per ha this would provide 360,000 tonnes of storage that, based on a ratio of 10 to 1, allows for a throughput of 3,600,000 tonnes of ore annually.

NB: The project will ship approximately 120,000 tonnes of concentrate annually. Therefore SBTs has potential capacity for 30 similar size mines.

3. Ocean Freight

3.1 Morrison Copper/Gold Shipping Requirements

Typically a mine requires a minimum tonnage of 12,000 tonnes to justify bringing in a ship and ore is then shipped in one or two holds of a ship. Larger mines (>150,000 tonnes per year) may opt for larger shipments. On the basis of 12,000 per ship PBM will require the use of approximately 10 to 12 ships per year.

NB: Additional mines using SBT’s facility is likely to result in multiple mines using the same ship. This should be efficient and cost effective as an increase in port throughput is unlikely to require a proportionate increase in ship traffic.

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3.2 Ships to be Used by Pacific Booker

The Port of Stewart can handle ships up to ~50,000 dwt (dead weight tonnage). Therefore it is anticipated that ships will be either Handy (10,000 to 35,000 tonnes) or Handymax (35,000 to 59,000 tonnes).

http://en.wikipedia.org/wiki/Bulk_carrier

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7 Typical Dry Bulk Ship Underway:

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Typical loading of concentrate:

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References

Northwest BC Mining Projects -Socio Economic Impact Assessment -July 2005

Alaska – Canada Rail Link Study -Multimodal Port Access Work Package B2 (D) Operations Evaluation January 2006 SBT Expansion http://a100.gov.bc.ca/appsdata/epic/html/deploy/epic_document_188_14043.html http://en.wikipedia.org/wiki/Bulk_carrier http://www.worldportsource.com/ports/CAN_Port_of_Stewart_1490.php http://www.nwbc‐forestcoalition.org/infrastructure.htm http://www.stewart-hyder.com/company/bulkterminals.html