Greetings, David,

As per our conversation by phone today, this is to confirm several changes to DBCE’s Kikerk spring 2004 exploration programme as first described in my Project Description document for a renewed Class B Water Licence and a new Class A Land-Use Permit.

(I have taken the liberty of copying this note to my other regulators, for their information, although INAC’s regional inspector and the KIA are already aware of the changes).

1)       CAMP:  It has been decided that construction of the base camp will be deferred until results have been received from the drill programme; this means that construction will be deferred until at least late summer 2004.  In lieu of a camp, the exploration crew will be housed at the Coppermine Inn in Kugluktuk, and commute to the worksite. Two equipped survival tents with the requisite supplies will be temporarily set up at Kikerk Lake to serve the drillcrew on shift. The tents will be removed at the end of the programme.

2)       DRILLPLAN:  The originally-planned 25-hole core drill programme has been scaled back to an 11-hole programme.  The revised plan with new provisional co-ordinates has just been received, and will be plotted onto a map and circulated to regulators.

Further details relative to the programme will be provided closer to the mobe-in date of mid-March.

Thank you for the opportunity to present the foregoing.

Regards,

-- ssp

Shirley Standafer-Pfister

Lands and Government Relations Manager

De Beers Canada