Subject: File No: NWB2HYD00 Date: Tue, 11 Apr 2000 11:59:42 -0700 From: "Michele Koerner" To: Rita Becker, Licensing Administrator Nunavut Water Board P.O. Box 119 Gjoa Haven, NT X0E 1J0 Dear Ms Becker, Regarding the water license application for our Hyde Lake Project (File No: NWB2HYD00), we are currently finallising our agreement with Phelps Dodge to allow for ownership of the 2 mineral claims to be transfered to Navigator. Phelps Dodge is arranging for the claim transfer forms to be sent directly to the Mining Recorder in Yellowknife. Once the claim transfers are complete we should be able to re-initiate the application process. Once the claims are transfered will you require any written notification from Navigator and/or Phelps Dodge to re-start the application? With luck the transfers should be in Yellowknife by Friday. I will try to contact you at that time in order to arrange any required correspondance. Sincerely, Ken Armstrong NAVIGATOR EXPLORATION CORP.