quarterly report due this week, page-3

Hi FlyBoy,

I did just that and this is the response I got, also Keith mentioned in a previous email that quarterly was going to be out this week.

"Bradley,

You are quite right in your statement. The short answer is at the moment we do not know which nickel mineral. The rock chips recovered from the hole are very small or powder, but we are endeavouring to have some petrology done. Undoubtabley at least some of the nickel will be from olivine.

The significance of the assays is that we have a broad zone of high nickel values upto 0.32% associated with a disseminated sulphides, high Chrome and high MgO characteristic of ultramafic rocks, which host the target massive sulphides.

We have said consistently that this program would be the first in a series of drilling programs. The confirmation of ultramafics 300m from a similar drill intercept (ASD 001) and the identification of a deeper conductor (massive sulphides?) in the same area now gives us a target for diamond drilling which we plan to undertake, probably in the second .

We obviously have some geological complexity at the Aztec Dome and confirming the existence of Kambalda style nickel sulphides is going to take more than one drilling program (This program has also told us that we need to drill deeper), but we are encouraged by the results and intend to keep exploring.

Regards,



Keith Wells
Managing Director
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Terrain Minerals Ltd"