Noranda Inc.

Noranda Inc.
Falconbridge Limited

Falconbridge Limited

March 04, 2005 09:47 ET

Exploration Progress Report: Noranda Inc. and Falconbridge Limited


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORANDA INC.

TSX, NYSE SYMBOL: NRD

AND FALCONBRIDGE LIMITED

TSX SYMBOL: FL

MARCH 4, 2005 - 09:47 ET

Exploration Progress Report: Noranda Inc. and
Falconbridge Limited

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) - Noranda Inc.
(TSX:NRD)(NYSE:NRD)("Noranda") and Falconbridge Limited (TSX:FL)
("Falconbridge") are pleased to provide the following update on the
companies' most significant greenfields and brownfields exploration
projects.

"Noranda and Falconbridge possess an excellent pipeline of projects that
positions us well for the future," said Paul Severin, Senior
Vice-President of Exploration for Noranda Inc. and Falconbridge Limited.
"With an integrated strategy for the exploration group and
mergers-and-acquisitions group, Noranda and Falconbridge are focused on
discovering and/or acquiring new nickel and copper deposits, which we
believe represent the greatest future earnings potential for our
companies. Our exploration projects around the world have also made us
among the most valued and sought after partners in our industry and we
continue to seek out new partnerships and opportunities." At present
Noranda and Falconbridge have partnerships with 55 exploration and
mining companies.

A brief summary of the following projects is provided in this news
release:



---------------------------------------------------------------------
Location Project Result Category
---------------------------------------------------------------------
FL - Sudbury, Canada Fraser-Morgan New Ni Discovery Brownfields
---------------------------------------------------------------------
FL - Espedalen,
Norway Espedalen JV New Ni Discovery Greenfields
---------------------------------------------------------------------
NRD - Matagami, Can. Renaissance New Zn Discovery Brownfields
---------------------------------------------------------------------
NRD - Chile El Pachon Feasibility update Greenfields
---------------------------------------------------------------------
NRD - Chile West Wall JV Pursue 2001 Discov. Greenfields
---------------------------------------------------------------------
NRD - Chile El Morro JV Pursue 2001 Discov. Greenfields
---------------------------------------------------------------------
NRD - Papua
New Guinea Frieda River JV Nena Drill Results Greenfields
---------------------------------------------------------------------


Page
Fraser-Morgan Nickel Project, Sudbury, Ontario, Canada 2
Espedalen Nickel Joint Venture, Norway 4
Renaissance Zinc - Copper Project, Matagami, Quebec 9
El Pachon, Argentina 12
West Wall Porphyry Copper Project, Chile 13
El Morro Porphyry Copper Project, Chile 15
Frieda River Porphyry Copper Project, Papua New Guinea 16


Fraser-Morgan Nickel Project, Sudbury, Ontario, Canada

On Falconbridge's Fraser Morgan Project area in Sudbury, Ontario surface
drilling continues to intersect new mineralization (Zone 11) in an area
approximately 350 metres northeast of the current resources in Zones 8
and 9. Additional mineralization has been intersected to the west of the
previously discovered Zone 10 and new intersections from surface drills
confirm the presence of high grade mineralization within Zone 10. Please
refer to maps provided at www.falconbridge.com for detailed hole
locations.

The Fraser Morgan Project Area is 100% owned by Falconbridge and has
been the subject of surface and underground exploration programs since
its discovery in 1995. Located on the north range of the Sudbury Igneous
Complex approximately 2 km to the southeast of Fraser Mine, the Fraser
Morgan Project currently hosts four zones of mineralization within a 2.5
km strike length. Current resources as of December 31, 2004 are shown
below.



---------------------------------------------------------------------
Zone Cut-off (NiEq) Category MTonnes %Ni %Cu %Co
---------------------------------------------------------------------
9 1.00 measured 3.33 1.85 0.61 0.06
---------------------------------------------------------------------
8 1.30 indicated 1.55 1.69 0.46 0.06
---------------------------------------------------------------------
---------------------------------------------------------------------
Subtotal 4.88 1.80 0.56 0.06
---------------------------------------------------------------------

---------------------------------------------------------------------
8 1.30 inferred 0.1 1.8 0.5 0.1
---------------------------------------------------------------------
10 1.00 inferred 0.9 1.5 0.4 0.1
---------------------------------------------------------------------
11 1.00 inferred 1.1 2.1 0.7 0.1
---------------------------------------------------------------------
---------------------------------------------------------------------
Subtotal 2.1 1.8 0.5 0.1
---------------------------------------------------------------------


Zone 11

Discovered in July of 2004, Zone 11 represents a new zone of
contact-hosted Ni-Cu mineralization between 1000-1150m below surface and
has been the subject of surface drilling and geophysics to evaluate the
nature and extent of the mineralization. The table below includes the
mineralized intersections since the October 28 release. Three surface
diamond-drill rigs are currently drilling on Zone 11 and will continue
during the first half of 2005. A four hole underground diamond-drilling
program is in progress and a surface drilling program will follow the
defined geological trend to the northeast.



---------------------------------------------------------------------
Zone 11 Surface-Drilling Results
---------------------------------------------------------------------
Hole From (m) To (m) Length (m) Ni (%) Cu (%)
---------------------------------------------------------------------
NRD-063A 1199.50 1227.65 28.15 2.06 0.54
---------------------------------------------------------------------
NRD-069 1216.70 1252.30 35.60 1.84 0.72
---------------------------------------------------------------------
NRD-069A 1196.05 1203.90 7.85 1.67 0.54
---------------------------------------------------------------------
NRD-076 1257.30 1293.90 36.60 2.33 0.71
---------------------------------------------------------------------
NRD-076B 1200.90 1207.65 6.75 2.28 0.72
---------------------------------------------------------------------
NRD-076C 1230.75 1235.45 4.70 1.81 0.42
---------------------------------------------------------------------
and 1250.05 1264.85 14.80 2.54 0.86
---------------------------------------------------------------------
NRD-081 1125.10 1142.25 17.15 1.79 0.54
---------------------------------------------------------------------
and 1205.75 1222.85 17.10 2.77 1.09
---------------------------------------------------------------------
NRD-081A 1129.05 1141.55 12.50 2.02 0.72
NRD-081B 1207.10 1252.80 45.70 2.20 0.58
---------------------------------------------------------------------
Results are specific gravity (sg) length weighted
---------------------------------------------------------------------


Zone 10

Zone 10 was initially discovered by underground drilling in 2002 but
access is not well located to provide proper core angles for resource
classification. The Zone 10 surface drilling program has focused on
evaluating the nature of the mineralization within the Zone 10 mineral
resource. Holes NRD-072 and wedge cut NRD-072A were designed to test the
mineralization within the existing Zone 10 resource with an improved
intersection angle. Holes NRD-021B and NRD-079, 079A are testing the
area outside of the existing resource along strike to the southwest.
Significant mineralization has been intersected up to 240 metres to the
southwest of Zone 10. The table below defines the mineralized
intersections to date. Three drill rigs are currently testing this area
and this work will continue during the first half of 2005.




---------------------------------------------------------------------
Zone 10 Surface-Drilling Results
---------------------------------------------------------------------
Hole From (m) To (m) Length (m) Ni (%) Cu (%)
---------------------------------------------------------------------
NRD-021B 1573.60 1581.00 7.40 2.80 0.16
---------------------------------------------------------------------
NRD-072 1554.90 1585.35 30.45 1.74 0.52
---------------------------------------------------------------------
NRD-072A 1537.50 1598.60 61.10 2.38 0.36
---------------------------------------------------------------------
NRD-079 1560.00 1577.20 17.20 1.45 0.46
---------------------------------------------------------------------
and 1582.70 1585.70 3.00 1.93 0.43
---------------------------------------------------------------------
NRD-079A 1550.00 1555.50 5.50 2.03 0.10
---------------------------------------------------------------------
and 1584.5 1586.70 2.20 2.27 0.33
---------------------------------------------------------------------
Results are specific gravity (sg) length weighted
---------------------------------------------------------------------


These encouraging exploration results will be evaluated as part of a
prefeasibility study currently being completed by Falconbridge.

Quality Control

Drilling on the Fraser Morgan Projects is supervised by Senior Project
Geologist Michael Sweeny, P.Geo., a Qualified Person under National
Instrument 43-101 guidelines. Assay samples from surface drilling are
taken from sawn half drill core (NQ size) with one half sent to a
commercial laboratory and other half retained for future reference. A
strict QA/QC program is followed which includes mineralized standards,
blank and duplicates for each batch of samples. Check assay results are
submitted to a second independent laboratory. Analyses were performed by
Lakefield Research at its Garson and Lakefield, Ontario facilities.

Espedalen Nickel Joint Venture, Norway

A wholly-owned subsidiary of Falconbridge, A/S Sulfidmalm
("Sulfidmalm"), and Blackstone Ventures Inc. (TSXV:BLV) (Blackstone)
entered into an Option and Joint Venture agreement on August 15, 2003,
to explore the Espedalen nickel project in Norway. The project is
located approximately 180 km north-north-west of Oslo. Blackstone can
earn a 60% interest in the property by funding $2.25 million in
expenditures by September 30, 2007. Sulfidmalm has the option to back in
up to 75% in stages. It can reach 60% in the property by incurring 220%
of Blackstone's expenditures, a further 10% by completing a Feasibility
Study and a further 5% by providing loan guarantees for production
financing. Sulfidmalm agreed to take subscriptions in Blackstone equal
to 25% of the first year's program, 20% of the second year, 15% of the
third year and 10% of the fourth year. Sulfidmalm is the Operator of the
project.

Highlights of the 2004 exploration program at Espedalen include:

- Drill intercepts of significant nickel mineralization at the Stormyra
Discovery where two drill holes spaced 200 metres apart intersected
6.91% nickel over 1.9 metres within a 14.6 metre intersection grading
1.73% nickel; and 2.07% nickel over 2.7 metres. Only two holes have been
drilled on this zone and it is open in all directions.

- Extension of the conductor associated with Stormyra to the south,
indicating a total conductor strike-length of 1,100 metres.

- 15 drill-holes completed on the entire property, testing 11
conductors; 13 of the drill holes intersected nickel-bearing sulphide
mineralization.

- 12 new geophysical conductors detected by the October, 2004 airborne
survey.

- A $1.045 million, winter drilling and geophysical program is proposed
for the January to April 30, 2005 period, which, if completed,
Blackstone will have the right to vest in the property.

Background

The Espedalen area is a historical copper and nickel mining area having
produced copper from 1666 to 1750 and nickel from 1848 to 1878. Indeed,
the Espedalen project area could be considered the birthplace of nickel
sulphide mining. The mining operations ceased production due to poor
metal prices as the result of the development of the laterite nickel
deposits in New Caledonia in the late 1800s. Small stockpiles of "ore"
(direct shipping and low grade) are still present on the property.

Mineralization occurs within a detached portion of the Jotun Nappe
Complex, which is a large (100 x 200 km) dominantly Precambrian thrust
block that overlies non-detached Precambrian Gneisses and Lower
Paleozoic rocks. It is composed of metamorphosed syenites, norites,
anorthosites, gabbros, pyroxenites and peridotites. Cross-cutting
relationships suggest multiple periods of intrusion from 1698 Ma for the
oldest syenites to 1250 Ma for the youngest gabbros. The nappe was
emplaced in its current position during the Caledonide Orogeny during
the Mesozoic period. The original position of the unit is interpreted to
have been west of the current Norwegian coastline. Reconstructions place
this position close to the east coast of Labrador. The similarity in the
types and ages of the rocks supports such a possible connection.

The Espedalen area is underlain by several basic to ultrabasic intrusive
suites. Mineralization is related to small (up to 1 km long)
differentiated intrusions consisting of peridotite, pyroxenite and
norite. The intrusions are commonly emplaced near the contact between
anorthosite and gabbro in an older complex. Breccia-type mineralization
occurs near the base of the intrusions though the overlying peridotites
are generally barren. Pyroxenite and norite above the peridotite contain
disseminated sulphides.

Historical Work

The history of the mining operations and other early work is not well
documented. In the mid 1960s, Sulfidmalm conducted some reconnaissance
prospecting and geophysical surveys in the Espedalen area. Slingram EM
anomalies were detected at Andreasberg and Stangruva but no drilling was
conducted.

In 1970, Norsk Hydro flew a helicopter Mag VLF survey over the area and
drilled four holes into an anomaly at Jorstad returning disappointing
results.

In 1973, a Joint Venture was formed between Norsk Hydro and Sulfidmalm
and from 1974 to 1978 grids were established over some of old mine
workings held under claim east and west of Espedalsvandet. Many of the
mines east of Espedalsvandet were not covered by this work. Work
focussed on the west side of Espedalsvandet and initially, four drill
holes were completed at Melgard and Megrundstjern. All holes hit low
grade disseminated sulphides and the highest grades were encountered on
the Megrundstjern Grid (27.4 metre of 0.60% Ni, 0.16% Cu). From 1975 to
1977, 38 holes totaling 3,186 metres (84 metre average) were drilled to
test geophysical anomalies. Broad zones of disseminated mineralization
were intersected but the best intersection graded 1.01% Ni, 0.32% Cu
over 29 metres, including 3.18% Ni over 1 metre. Preliminary
metallurgical testing of this material gave concentrate grades of 15.0%
Ni and 5.27% Cu with recoveries of 70.3% for Ni and 76.8% for Cu.

Current Exploration

In late 2002, Sulfidmalm returned to the area based on its attractive
regional geology, an abundance of known nickel sulphide occurrences, a
new tectonic model linking the area to the Voisey's Bay area and a
strategy of applying modern geophysical methods (e.g. UTEM).

Sulfidmalm, initially acquired 150 preclaims, totaling 45 square km,
over the Espedalen area in January 2003. An additional 158 preclaims,
totaling 43.45 square km, have subsequently been added bringing the
current property position to 308 preclaims, totaling 88.45 square km.

In early 2003, a 28 km UTEM program was completed over a portion of the
southwestern part of the property where Sulfidmalm had conducted most of
their previous work. Results included the identification of two good to
excellent quality conductors that merited drill testing.

In the early summer of 2003, selected grab samples of mineralized
material from the old workings and stockpiles were collected which
confirmed the historical reported nickel values as follows:



---------------------------------------------------------------------
Ni Cu Co S Pt Pd Au
---------------------------------------------------------------------
LOCALITY DESCRIPTION % % % % ppm ppm ppm
---------------------------------------------------------------------
Andreasberg Semi-massive
sulphide 6.74 1.09 0.26 18.60 0.03 0.24 0.02
---------------------------------------------------------------------
Andreasberg Net-textured
Mine sulphides 3.26 0.31 0.13 15.20 0.00 0.11 0.01
---------------------------------------------------------------------
Andreasberg
/ Shearer 0.06 0.09 0.03 12.00 0.00 0.02 0.00
---------------------------------------------------------------------
Andreasberg
/ Shearer 0.02 0.02 0.01 9.29 0.00 0.00 0.00
---------------------------------------------------------------------
Jorstad Massive
Mine sulphides 0.84 0.08 0.13 18.00 0.02 0.00 0.03
---------------------------------------------------------------------
Jorstad Semi-massive
Mine sulphide 0.98 0.13 0.08 14.50 0.00 0.00 0.09
---------------------------------------------------------------------
Jorstad Semi-massive
Mine sulphide 0.87 0.02 0.11 17.30 0.00 0.02 0.02
---------------------------------------------------------------------
Megrund Mineralized
ultramafic 0.84 0.20 0.03 5.43 0.03 0.04 0.03
---------------------------------------------------------------------
Megrund Mineralized
norite 0.70 0.21 0.02 3.10 0.02 0.03 0.01
---------------------------------------------------------------------
New showing
between
Jorstad and
Grahoa 0.36 0.16 0.06 8.95 0.05 0.03 0.02
---------------------------------------------------------------------
Rodhaugen Semi-massive
sulphide 0.65 0.94 0.06 15.90 0.02 0.04 0.03
---------------------------------------------------------------------
Rodhaugen / Mineralized
Grahoa norite 0.33 0.21 0.02 2.75 0.00 0.00 0.02
---------------------------------------------------------------------
Evans Mine Semi-massive
sulphides 0.57 0.06 0.03 5.55 0.00 0.02 0.00
---------------------------------------------------------------------
Stangruva Semi-massive
Mine sulphides 1.02 1.29 0.07 12.60 0.02 0.04 0.03
---------------------------------------------------------------------
Storgruva Massive
Mine sulphide
breccia 3.08 0.19 0.17 28.60 0.03 0.02 0.04
---------------------------------------------------------------------
Vesle Mine Semi-massive
sulphide in
ultramafic 0.95 0.75 0.05 9.89 0.04 0.03 0.06
---------------------------------------------------------------------


Following the signing of the Sulfidmalm-Blackstone agreement, a 932 line
km Hummingbird AEM survey was flown during October 2003. The depth
penetration of this system is thought to be around 50 metres. The survey
identified nine high priority conductors and eight secondary conductors
while the magnetics demonstrated that the ultramafic units were more
extensive than previously thought.

From February to March 2004, a 123 km UTEM survey was completed over
these newly detected conductors and the historical workings on the
northeastern part of the property. This resulted in the identification
of 29 conductors of interest, including eight high priority conductors.
Field ground check of conductors and limited mapping were completed in
the summer.

A diamond-drill program consisting of 1,842 metres in 18 drill-holes (3
holes were abandoned due to drill equipment difficulties) testing 11 of
29 prospective EM conductors was completed from July to September 2004.
All but two of the completed holes intersected Ni bearing sulphide
mineralization, indicating the effectiveness of the geophysical methods.
Please refer to maps provided at www.falconbridge.com for drill-hole
locations.

A significant result of this program was the discovery of the Stormyra
nickel mineralization on the P2-P2a conductor (6.91% Ni over 1.9 m). The
discovery is within a swampy area with little bedrock exposure in the
southwestern part of the property. It is located at the southern limit
of the 2003 AEM survey and subsequently AEM coverage was extended in
this area in October 2004. The combined results of these surveys
indicate that the conductor associated with Stormyra has a strike length
of 1.2 km. The new geophysical survey also identified 12 other
conductors in the southern and eastern property area that will require
follow-up work.

The conductor at Stormyra has been modeled as a shallow dipping plate
that is approximately parallel with foliation and lithological contacts,
as observed in the drill holes and therefore, the thickness of the
mineralized intercepts are interpreted to be close to true thickness.
The Stormyra mineralization is open to expansion in all directions.

Three of the other drilled conductors are identified as priorities for
follow-up work. An example is the Dalen area (P4 conductor) where
drilling intersected 34.4 metres grading 0.45% nickel on the northern
edge of a UTEM conductor. The UTEM conductor is associated with a large
magnetic feature that trends to the southeast under Espedalen Lake and
has not been fully covered by UTEM.

Assay results for the holes drilled in 2004 are summarized below:




---------------------------------------------------------------------
Drill-hole Target From (m) To (m) Width (m) Ni % Cu % Co %
---------------------------------------------------------------------
ES04-01(i) P6 All nickel values less than 0.05%
---------------------------------------------------------------------
ES04-02a(i) P7 35.19 36.27 1.08 0.17 0.05 0.04
---------------------------------------------------------------------
ES04-05(i) P4 9.60 40.00 34.40 0.45 0.20 0.03
---------------------------------------------------------------------
ES04-06(i) P4 39.00 40.00 1.00 0.36 0.19 0.03
---------------------------------------------------------------------
ES04-07(i) P4 34.00 35.00 1.00 0.19 0.06 less than
0.02
---------------------------------------------------------------------
ES04-08(i) P2 56.30 59.00 2.70 2.07 1.20 0.07
---------------------------------------------------------------------
ES04-09(i) P2a 80.40 95.00 14.60 1.73 0.77 0.06
---------------------------------------------------------------------
Incl. P2a 80.40 87.50 7.10 1.68 1.03 0.06
---------------------------------------------------------------------
Incl. P2a 93.10 95.00 1.90 6.91 2.05 0.21
---------------------------------------------------------------------
ES04-10(i) P5 65.00 66.00 1.00 0.52 0.12 0.02
---------------------------------------------------------------------
ES04-11(i) P9 53.10 53.75 0.65 0.62 0.40 0.03
---------------------------------------------------------------------
ES04-12 P12 51.00 52.00 1.00 0.32 0.13 0.04
---------------------------------------------------------------------
ES04-13(i) P13 All nickel values less than 0.01%
---------------------------------------------------------------------
ES04-14 P8 79.60 81.60 2.00 0.57 0.26 0.05
---------------------------------------------------------------------
ES04-15 P8a 49.85 54.80 4.95 0.44 0.22 0.04
---------------------------------------------------------------------
ES04-16 P3 127.80 128.80 1.00 0.43 0.14 0.08
---------------------------------------------------------------------
ES04-17 P1 59.65 59.95 0.30 0.68 0.30 0.08
---------------------------------------------------------------------
Drill holes ES04-02, ES04-03 and ES04-04 were abandoned.
---------------------------------------------------------------------


The proposed January to April 2005 exploration program consists of 90
line-km of UTEM geophysical surveying followed by 2,000 metres of
diamond drilling, in 17 holes, at Stormyra. UTEM surveying will be
carried out on a 5 km long grid to the northwest of Stormyra, a 1 km
long grid to the southeast of Stormyra, a 2 km long grid to the
southeast of the Dalen (P4) target area, as well as a number of grids
covering the new airborne conductors. The diamond-drilling program, as
proposed, will drill 10 sections along the Stormyra zone spaced 100
meters apart with two holes to be drilled per section. The program may
be modified depending on results at this or other zones being tested.

Upon completion of this proposed program Blackstone will have funded
$2.25 million in exploration at Espedalen and would then have the right
to be vested at a 60% interest in the project (two years ahead of
schedule). A/S Sulfidmalm would then have a 90-day period to elect
whether to exercise back-in rights.

Quality Control

Drill core was logged and mineralized intervals were split using a
diamond saw on site in Norway, with split samples being shipped to SGS
Lakefield Research in Ontario. Samples were 0.3 to 1.0 metre in length.
Samples were crushed to 10 mesh and then pulverized to 150 mesh. Ni, Cu
and Co were analysed by pyrosulphate fusion XRF. Sulfur by LECO furnace.
Au, Pt, and Pd by fire assay, ICP-OES. Pulps from 20 mineralized samples
were sent to ALS Chemex Labs in North Vancouver for check analysis.

The exploration program described was carried out under the direction of
Patti Tirschmann, P.Geo., Senior Geologist with Falconbridge Limited and
Peter Manojlovic, P.Geo., Norway Exploration Manager with Falconbridge
Limited. Both are qualified persons as defined by National Instrument
43-101. The information in this release was prepared under the direction
of Ted Barnett, P. Geo., Director International Nickel & PGM Exploration
with Falconbridge Limited, a qualified person as defined by National
Instrument 43-101.

Renaissance Zinc - Copper Project, Matagami, Quebec

In a press release dated October 26, 2004, Noranda announced that one of
its exploration drilling programs in northern Quebec intersected a new
zone of massive sulphides at moderate depths on one of its wholly-owned
properties near Matagami, Quebec. The Renaissance showing is located
within the Matagami mining camp South Flank stratigraphy, approximately
7 km southeast of Noranda's Matagami milling infrastructure. This
release provides an update on exploration activities at the Renaissance
project, in the Matagami camp. A drill hole plan and section, plus
details of assay intervals, are available on the Noranda website at
www.noranda.com.

The sulphide zone reported in hole MC-04-07 ran a length weighted 14.81%
Zn, 1.65% Cu, 36.4 g/t Ag and 0.68 g/t Au over 9.5 metres core length
from 527.25 to 536.75 metres. Estimated true width of this portion of
the intercept is approximately 7.3 metres, with the mid-point centred at
approximately 465 metres vertical depth. The massive to semi-massive
portion of the zone is followed by mineralized exhalite, and stringer to
sub-massive mineralization to a depth of 541.30 metres. An extended
intercept to the end of this mineralization returned a length weighted
11.15% Zn, 2.04% Cu, 41.9 g/t Ag and 0.61 g/Au over 14.05 metres.
Estimated total true width is approximately 10.8 metres.

Since the discovery a total of six new holes (MC-04-08 to MC-04-13) have
been drilled on the Renaissance showing. This drilling has focussed on
rapidly delineating the possible extents of the mineralized zone at
wide-spaced centres. Summary descriptions of this drilling are presented
below; diagrams illustrating the Renaissance drill program in plan and
longitudinal views are posted on the Noranda website (www.noranda.com).

MC-04-08 was drilled 100 metres below the MC-04-07 discovery intercept
and intersected extensive well-developed footwall, conduit-style
mineralization that graded a length weighted 1.14% Zn, 2.38% Cu, 5.09
g/t Ag, 0.25 g/t Au over 13.2 metres core length, or 9.2 metres
estimated true width. The alteration pipe is aligned with the
hangingwall alteration plume observed in early holes MC-04-01 and
MC-04-02, and the mineralization intersected in holes MC-04-04 and
MC-04-07. Good continuity is interpreted between this hole and the
mineralization intersected at the Key tuffite exhalite interface in hole
MC-04-07.

MC-04-09 pierced the target horizon some 150 metres east and downdip of
the MC-04-07 intercept. A zone of semi-massive sulphides was intersected
between 581.95 and 582.45 metres, within 15.7 metres of Key tuffite.
This interval contained 12.65% Zn, 1.39% Cu, 19.3 g/t Ag and 0.57g/t Au
over 0.5m of core length This was followed by 36.5 metres of variably
silicified Watson Lake rhyolite and 22 metres of chloritised rhyolite
and foliated alteration pipe indicating the persistence of the
Renaissance alteration pipe east of the discovery hole.

MC-04-10 was targeted approximately 50 metres updip from the MC-04-07
intercept on section 13375E and was completed to a total depth of 571
metres. The hole did not intersect significant mineralization at the Key
tuffite exhalite interface and the underlying Watson Lake rhyolite was
not extensively altered.

MC-04-11 was targeted approximately 100 metres east of the MC-04-07
intercept and was completed to a total depth of 609 metres. The hole was
targeted based upon the borehole pulse EM results in hole MC-04-9 and
the projected intersection with the Renaissance alteration pipe. The
hole did not intersect significant mineralization at the Key tuffite
interface and the underlying footwall Watson Lake rhyolite was not
extensively altered.

MC-04-12 targeted the western extension of the Renaissance synvolcanic
structure on section 13175E at -525m vertical depth, approximately 100
west of the MC-04-04 KT pierce point, outside the borehole pulse EM
radius of influence. The Key tuffite was intersected between 583.60 and
588.30 metres and is not significantly mineralized. The underlying
Watson Lake rhyolite is weakly to moderately chlorite altered and is
host to minor stringer sulphide mineralization.

MC-04-13 targeted an area approximately 100 metres west and updip of the
MC-04-07 intercept, on section 13325E, targeted based upon borehole
pulse EM and Maxwell conductive plate modelling. A 0.55m interval of Key
tuffite was underlain by Watson Lake rhyolite that is variably
chloritised and is host to several narrow massive pyrrhotite veinlets
and pyrrhotite and chalcopyrite stringers. This is the probable cause of
the borehole EM vectors in holes MC-04-10 and 7. This drill result
limits the western extent and the tonnage potential of the Renaissance
showing.

Summary table of all significant Renaissance intercepts


---------------------------------------------------------------------
HOLE CORE LENGTH (M) ZN% CU% AG(G/T) AU(G/T) Comment
---------------------------------------------------------------------
MC-04-04 13.30 3.66 0.28 7.2 Oblique DDH
---------------------------------------------------------------------
or 80.65 1.24 0.18 4.7 Oblique DDH
---------------------------------------------------------------------
MC-04-07 9.50 14.81 1.65 36.4 0.68 Discovery
---------------------------------------------------------------------
or 14.05 11.15 2.04 41.9 0.61 Discovery
---------------------------------------------------------------------
MC-04-08 13.20 1.14 2.38 5.1 0.25 Pipe
sulphides
---------------------------------------------------------------------
MC-04-09 0.50 12.65 1.39 19.3 0.57 Key tuffite
---------------------------------------------------------------------
MC-04-12 1.10 0.03 2.06 23.6 0.12 KT & Alt'n
---------------------------------------------------------------------
or 7.40 0.21 0.55 7.6 0.07 KT & Alt'n
---------------------------------------------------------------------


While the results of the 2004 drill program have limited the extents and
tonnage potential of the Renaissance showing, it should be noted that
all Matagami deposits are known to have satellite lenses. Future work
will concentrate on wider-spaced step-out drilling that will target the
favourable synvolcanic fault structure that is host to the Renaissance
showing, and sectors previously untested by diamond drilling.

Quality Control

Drill programs in Matagami are supervised by Grant Arnold (Geology
Superintendent - Noranda Inc.) who is a Qualified Person under National
Instrument 43-101 guidelines. NQ size core samples are sawed in half
with one half sent to a commercial laboratory and the other half
retained in the core box for future reference. A QA-QC program is
followed that includes insertions of commercially available and
internally prepared mineral reference standards and nil-grade blanks in
each batch of samples. Assays were performed at ALS Chemex-Chimitec of
Val-d'Or, Quebec, an ISO 9001:2000 registered laboratory.

El Pachon, Argentina

The acquisition by Noranda from Cambior and Comsur of the El Pachon
project was completed in September 2001 for a total consideration of
US$30 million, $2.0 million of which was deferred and is due on or
before September 28, 2005.

The property is located in the province of San Juan, Argentina at an
elevation of 3,600 to 4,100 metres about three kilometres from the
Chilean border and seven kilometres from the Los Pelambres mine. The
property is about 145 kms by road from the small town of Barreal, which
in turn is 170 kms west of the city of San Juan.

Geology and Resources:

The El Pachon porphyry copper and molybdenum deposit is contained within
an area of 2 by 2 kms. Mineralization occurs mainly in intrusive and
brecciated rocks, but also in the host volcanic andesite and tuff units.
Some late stage intrusions, (Quartz-Biotite-Feldspar Porphyry and
Tourmaline Breccias) are barren and cross the mineralized units.

Diamond drilling, geological mapping, geophysical surveys and
reinterpretation of the resource model were completed in 2003 with the
objective to identify higher grade resources within the known resource
and test exploration targets.

Noranda completed a new resource estimate for the El Pachon deposit
between May to November 2003. The resource estimate is based on the
results of 46,237m of drilling in 247 holes and 662m of underground work
in two adits completed during various campaigns between 1969 and 2003,
including new drilling by Noranda during 2003. An extensive program of
core re-logging and re-analysis was completed in 2003 to improve the
reliability of the geology and assay databases.

The estimation of mineral resources are as follows:



Mineral Resources at a 0.4% Cu Cut-off Grade

Classification Tonnage M t % Copper % Molybdenum g/t Silver

Measured 37 1.15 0.033 4.0
Indicated 687 0.62 0.014 2.5
Sub-total 724 0.65 0.015 2.6
Inferred 560 0.52 0.014 2.6


Work in 2004 included an external review of the resource estimate and
work to update the feasibility study prepared by Cambior in 1997. The
updating of the feasibility study is continuing in 2005.

Quality Control

ALS-Chemex in Mendoza, Argentina, for sample preparation and Coquimbo
Chile for analysis, has completed all of Noranda's analytical work on
the project to date. ALS Chemex used certified reference materials. The
secondary lab was ACME in Santiago, Chile. The analytical method used
was multi-acid digestion, atomic absorption assay analysis for copper
and molybdenum. Noranda's Drill Core Sampling and Analysis Protocols, a
rigorous protocol procedure developed internally for all advanced drill
programs, has been employed throughout the drill program to ensure
quality assurance and quality control. The sampling protocol specifies
that assay samples are taken from drill core (NQ size) sawed in half
with one half sent to a commercial laboratory and the other half
retained for future reference. Additionally, the insertion of three
project specific standards and blank samples, has been part of all
Project activities.

The results for the analysis of samples collected by Noranda were
considered to be within the required standards for Noranda's protocols
although Mo was less precise than Cu, partly because Mo values were
frequently near the detection limit. However, as there was a significant
amount of drilling prior to Noranda's involvement it is important to the
resource estimate to note that the QAQC procedures in assaying were
variable prior to Noranda's involvement in the project (holes up to
P-237). A major re-assaying program was undertaken (on pulps, rejects or
remaining core, depending on available material) with proper QAQC
procedures in order to compare previous assays with those of the latest
campaigns. This resulted in a slight increase in total metal in the
resource but the average grade did not change, probably due to the
smoothing effect of kriging. The Mo re-assaying failed to identify any
biases in the datasets because of highly variable original assays but
this exercise at least provides a better assessment of the distribution
of Mo within the deposit. The qualified person responsible for the
design and conduct of the sample collection and analysis performed is
Charles Beaudry, P. Geo., Noranda's Manager of Geochemistry. Stanley
Gordon Clemmer, P. Geo. and Qualified Person under National Instrument
43-101 guidelines for the resource estimation. Mr. Clemmer is a Senior
Geologist with Noranda.

West Wall Porphyry Copper Project, Chile

In November, 2000, Noranda Chile Limitada ("Noranda Chile") entered into
a Joint Venture agreement with Minera Anglo American Chile Limitada
("MAAC") to explore the West Wall project located in V Region, Chile.
The project area is about 150 km north northeast of the capital city of
Santiago, and situated within the Miocene porphyry belt of central
Chile. This Miocene belt is host to several significant porphyry
deposits and mines including Los Pelambres, El Teniente and the
Andina-Los Bronces complex. The property had been previously explored
and drilled under a Joint Venture between MAAC and Cominco between
1992-1993. RC drilling carried out by Noranda Chile in 2001, and a
subsequent diamond drill program in 2002, has identified significant
copper porphyry mineralization within the Joint Venture lands.

The Joint Venture property package totals 11,208 hectare . MAAC holds
mining concessions over 7,869 hectares, and the remainder are controlled
through an Option Agreement between Noranda Chile and BHP Chile Inc.
("BHPC") whereby Noranda Chile can earn 100% interest in the property by
satisfying prescribed work commitments before December, 2005. If the
Option is exercised, BHPC will retain a 1% NSR to a maximum of US$5
million. This Option Agreement is subject to the terms of the Noranda
Chile - MAAC Joint Venture Agreement. Under the terms of the Noranda
Chile - MAAC Joint Venture Agreement, Noranda Chile can earn 50%
interest in the Venture by completing US$3.3 million in exploration
expenditures over a five-year period ending November 2005. Upon vesting,
Noranda Chile has a one-time election to earn an additional 10% interest
in the property, for a total of 60% , by making a $1 million payment to
MAAC and, by November 2009, completing the earlier of (a) aggregate
exploration and development expenditures of $30 million, or (b)
completing a Bankable Feasibility Study.

Copper mineralization occurs within a supergene enrichment zone
underlain by primary mineralization. Within the hypogene zone,
mineralization occurs as disseminated to stockwork veined chalcopyrite
and lesser bornite in several porphyry intrusive phases. The
chalcocite-covellite enrichment zone is well developed, and occurs
beneath a thick leach cap in the holes completed to date. The principal
zone of interest remains open in two directions and at depth.

Please refer to the table of drill hole results and drill hole location
map provided at www.noranda.com.

A diamond-drill program is in progress designed to explore the known
porphyry system and untested targets within the project area. The
planned 8,400 metre program is scheduled for completion in April-May,
near the end of the Andean summer season. Additional porphyry targets
have been recognized on the property that will be tested during the
current drill program.

Quality Control

Quality Control and Quality Assurance on the property is supervised by
Charles Beaudry, P. Geo., Manager of Geochemistry and Qualified Person
under National Instrument 43-101. ALS Bondar-Clegg Laboratory of
Santiago, Chile, using Gannet certified standards, has completed all of
Noranda's analytical work on the project to date. The analytical method
used is geochemical analysis for copper. Noranda's Drill Core Sampling
and Analysis Protocols, a rigorous protocol procedure developed
internally for all advanced drill programs, has been employed throughout
the drill program to ensure quality assurance and quality control. The
sampling protocol specifies that assay samples are taken from drill core
(HQ and NQ size) sawed in half with one half sent to a commercial
laboratory and the other half retained for future reference. The use of
project specific standards and blank samples is a critical part of
Noranda's QA/QC protocol. Sampling protocol and procedures for all
historic holes, starting with the prefix WWDD-, are unknown.

El Morro Porphyry Copper Project, Chile

The La Fortuna deposit is located in the Andean Cordillera of Chile's
Region III about 650 km north of Santiago and 20 km west of the
International boundary with Argentina. Noranda Chile Limitada entered
into the El Morro Joint Venture Agreement with Metallica Resources
Limited(TSE:MR; AMEX:MRB) ("Metallica") in 1999, and has carried out
extensive work on the property since that date The deposit occurs within
the Eocene-Oligocene porphyry belt, and was discovered in 2001 as part
of a grassroots program on the property. An Inferred Resource estimate
of 466 Mt grading 0.61% Cu and 0.50 g/t Au has been defined based on
forty-one diamond drill holes totaling 19,009 metres, and is highlighted
in the table below. The deposit has been diamond drill tested on
approximately 200 metre centres and remains open at depth. Please refer
to the diagrams provided at www.noranda.com for table of drill hole
results and drill hole locations.

The property is subject to a Joint Venture Agreement between Noranda
Chile and Metallica entered into in September, 2000. Noranda Chile
acquired the right to earn a 70% interest in the 16,400 hectares
property position over a six-year period by completing aggregate cash
payments of US$300,000 and work expenditures of $10 million,
subscription for a $1 million private placement, and cash payment of $10
million due September 15, 2005. Remaining obligations to vest include
the September 2005 payment. On vesting Noranda Chile has a contractual
obligation to use commercially reasonable efforts to complete a
Feasibility Study at its sole cost on or before September 15, 2007.
Should the property be developed, Metallica can elect to have Noranda
Chile fund 70% of Metallica's 30% share of development costs to put the
property into production. Currently, Noranda Chile is Operator.

The Inferred Resource estimates of the supergene and primary styles of
mineralization at different copper cut-off grades are shown in the Table
below. The resource estimate is classified as an Inferred Resource,
consistent with CIM definitions referred to in NI 43-101.



---------------------------------------------------------------------
0.3 Copper Cut-off 0.4 Copper Cut-off 0.5 Copper Cut-off
---------------------------------------------------------------------

---------------------------------------------------------------------
MTonnes Copper Gold MTonnes Copper Gold MTonnes Copper Gold
---------------------------------------------------------------------
(%) (g/t) (%) (g/t) (%) (g/t)
---------------------------------------------------------------------
Mixed 18.0 0.60 0.29 14.0 0.67 0.31 10.0 0.75 0.33
---------------------------------------------------------------------
Supergene 104.0 0.67 0.33 89.0 0.72 0.36 75.0 0.77 0.38
---------------------------------------------------------------------
Primary 468.0 0.53 0.50 363.0 0.58 0.54 255.0 0.64 0.56
---------------------------------------------------------------------
Total 590.0 0.56 0.46 466.0 0.61 0.50 340.0 0.67 0.52
---------------------------------------------------------------------


Cu-Au mineralization centers on a near vertical, multiphase, quartz
monzonite to diorite porphyry stock intruding Mesozoic and Cenozoic
sedimentary and andesitic volcanic rocks. The porphyry body is about 600
by 800 metres in plan view, and elongate north-south. Porphyry-style
hypogene mineralization occurs as chalcopyrite and minor bornite in
stockwork veining and disseminations, and drill hole DDHF-39 indicates
that mineralization extends to a depth of at least 970 metres. Leach
capping is partially exposed beneath Atacama gravels, and important
secondary enrichment is preserved in a discontinuous
chalcocite-covellite supergene blanket. Strong potassic alteration
accompanied the main stage of mineralization, and is locally overprinted
by phyllic and intermediate to advanced argillic assemblages.

An 8,000 metre diamond drill program is in progress on the La Fortuna
zone. The in-fill drilling is designed to explore the extent and
distribution of higher-grade supergene copper mineralization, and the
distribution and geologic controls of potentially higher-grade gold
zones. Successful outcome would allow those zones to be more accurately
modeled in the resource estimates. Drilling is not planned elsewhere on
the property.

Quality Control

ALS Bondar Clegg, of Coquimbo, Chile, using Gannet certified standards,
has completed all of Noranda's analytical work on the project to date.
The analytical method used is geochemical analysis for copper and fire
assay with an atomic absorption finish for the gold values. Noranda's
Drill Core Sampling and Analysis Protocols, a rigorous protocol
procedure developed internally for all advanced drill programs, has been
employed throughout the drill program to ensure quality assurance and
quality control. The sampling protocol specifies that assay samples are
taken from drill core (HQ and NQ size) sawed in half with one half sent
to a commercial laboratory and the other half retained for future
reference. Additionally, the insertion of project specific standards and
blank samples, has been part of part of all Project activities. Sampling
protocols and procedures for all historic holes, not drilled by Noranda,
are not known. The qualified person responsible for the design and
conduct of the work performed is Stanley Gordon Clemmer, P. Geo. and
Qualified Person under National Instrument 43-101 guidelines. Mr.
Clemmer is a Senior Geologist with Noranda.

Frieda River Porphyry Copper Project, Papua New Guinea

In 2002, Highlands Pacific Limited granted Noranda Highlands Inc., a
wholly-owned subsidiary of Noranda, an option to earn a 72% interest in
the Frieda River project by incurring work expenditures totaling US$ 5.0
million over five years. Noranda also has an option to acquire a 72%
interest in the Nena deposit by paying Highlands Pacific an additional
US$10.8 million. Noranda can exercise the option by committing to
complete a feasibility study including funding Highlands Pacific's share
of the ongoing expenditures within the subsequent five years. The
project is held under exploration license (EL 58) which is owned 100% by
Highlands Frieda Pty. Ltd., a wholly-owned subsidiary of Highlands
Pacific Ltd. for the benefit of the Frieda River Joint Venture. The
Frieda project is a joint venture between Highlands Frieda (88%) and
OMRD Frieda Co. Ltd (12%). OMRD is a Japanese consortium headed by
Sumitomo Metal Mining.

Highlands Pacific currently manages the project and conducts field
operations on behalf of the joint venture. Steve Windle PhD (MAusImm,
MAIG, F.GeolSoc, F.Min.Soc, MAEG), is the QP on the project for
Highlands Pacific Limited, has been involved with the Frieda River
project for nearly a decade and is experienced in porphyry and high
sulphidation environments throughout the southwest Pacific. Noranda has
earned the right to become operator at any time.

Encouraging exploration results have been achieved at the Frieda River
copper/gold project from an ongoing work program conducted in 2004. The
project area is located in the Sandaun Province, near the border of East
Sepik of North Western Papa New Guinea, approximately 90 km north of Ok
Tedi Mine, and 175 km west of Porgera.

Significant 2004 assay results to date include drill hole 015NOR04 which
returned 214 metres at 2.2% Cu and drill hole 019NOR04 with 46 metres at
9.7% Cu obtained from the drill testing for extensions to the Nena
copper-gold deposit. Assay results for all except part of one hole
drilled in 2004 have been received. Please refer to the maps provided at
www.noranda.com for drill hole locations.

Background

The Frieda River project occurs along the northern margin of an active
subduction-obduction tectonic belt in the SW Pacific, a belt that is
prospective for porphyry style Cu-Au deposits and associated skarn and
epithermal Cu-Au deposits such as the giant Grasberg and Ok Tedi Cu-Au
deposits and the Porgera Au deposit.

Copper/ gold mineralization was first discovered on the Frieda River
property in the late 1960s and is intimately associated with
calc-alkaline dioritic intrusives of the Frieda River Intrusive Complex
(FRIC). This complex represents the eroded remnants of a large andesitic
stratovolcano erupted in the Mid Miocene (13-17Ma).

The FRIC covers a 15 by 20 km area with the current day erosional
surface unroofing and exposing the intrusions in the SE portion of the
property, while a thick sequence of extrusive volcano-sedimentary rocks
dominated by andesitic pyroclastics overlie the intrusions to the
north-west.

The exposed intrusions contain at least seven identified mineralized
porphyry systems. The dominant alteration ranges is proximal and
complexly overprinted biotite-magnetite and K-feldspar-quartz-anhydrite
potassic and sericite-chlorite-clay phyllic style alteration.

To the north-west the overlying volcanic pyroclastics exhibit widespread
and pronounced epithermal alteration observed for some 10 kilometres
along strike. The alteration is dominated by pervasive
silca-alunite-pyrite and vuggy silica breccia zones associated with the
Nena Cu-Au deposit.

The Horse-Ivaal-Trukai deposit, the most significant porphyry system at
present, is hosted by a north-west trending biotite hornblende diorite
to quartz diorite intrusive referred to as the Horse Microdiorite. The
upper portion of the deposit has been oxidized resulting in the
development of a thin (less than 50 metres) but persistent
enrichment/oxide zone overlying most of the deposit. Mineralization
consists of disseminated to fracture coating malachite - chalcocite.

Primary mineralization underlies the oxide / enrichment zone and
comprises the bulk of mineralization in the deposit. Mineralization
consists of fine disseminated and veinlet to vein stockwork hosted
chalcopyrite with lesser bornite, molybdenite and fine gold. Pyrite is
the dominant sulphide gangue mineral.

In addition to the porphyry style mineralization, the property also
hosts an epithermal, high sulphidation Cu-Au deposit known as Nena,
located some 5 km north-west of the Horse-Ivaal-Trukai deposit and
occuring in the volcanic rocks overlying the intrusives rocks of the
FRIC. The upper portions of the deposit are intensely oxidized producing
a leach cap carrying significant gold, which is underlain by a well
developed, secondary enrichment blanket up to 70 metres thick.
Mineralization in the enrichment blanket is dominated by black sooty
chalcocite, with lesser digenite and covellite. The enrichment zone is
characterized by very high grades of copper.

Underlying the enrichment blanket is a zone of extensive primary
mineralization hosted in intense silica-alunite alteration to residual
vuggy silica and associated breccia zones. Zones of extensive fine
disseminated to semi-massive pyrite are typically associated and native
sulphur is observed adjacent to the deposit. Copper mineralization
consists of disseminated to fracture to breccia infillings of
chalcocite-enargite with lesser covellite- luzonite. Overprinting by
secondary chalcocite can be locally extensive resulting in higher grade
copper.

The mineralization in the Horse-Ivaal-Trukai deposit is conventional
porphyry copper style sulphide mineralization and it is anticipated that
it would be amenable to conventional flotation processing. The
mineralization at the Nena deposit, on the other hand, has complex
mineralogy as noted above plus a high content of some deleterious
elements such as arsenic and antimony. It is expected that the Nena ore
will be more challenging in terms of mineral processing.

In 2002 and 2003, Noranda explored for and delineated extensions of the
Horse-Ivaal-Trukai porphyry copper-gold deposit and completed a revised
Mineral Resource estimate. The estimate involved the completion of a
geostatistical block model prepared by Snowden Mining Industry
Consultants. The estimate was constrained by a grade domain model
developed by Noranda which modelled a near-surface oxide blanket and two
grade domains (0.2 and 0.5% Cu cut-off) within the primary
mineralization. The estimate was prepared by Warwick Board, Senior
Geologist with Snowden, and reviewed by Stefan Mujdrica, Principal
Consultant Geologist with Snowden.

The results are summarized in the table below.



Mineral Resources of Oxide and Primary Mineralization at the
Horse-Ivaal-Trukai Copper-Gold Deposit(using a 0.5% Cu cut-off).

---------------------------------------------------------------------
---------------------------------------------------------------------
Ore type Classification MTonnes Cu % Au g/t
---------------------------------------------------------------------
---------------------------------------------------------------------
Oxide Indicated 9.7 0.83 0.28
---------------------------------------------------------------------
Hypogene Indicated 64.9 0.60 0.38
---------------------------------------------------------------------
---------------------------------------------------------------------
Total Indicated 74.6 0.63 0.37
---------------------------------------------------------------------
---------------------------------------------------------------------
Oxide Inferred 36.0 0.7 0.3
---------------------------------------------------------------------
Hypogene Inferred 324.0 0.6 0.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Total Inferred 360.0 0.6 0.4
---------------------------------------------------------------------
---------------------------------------------------------------------



The table below summarizes a historical Mineral Resource estimate
prepared by the project owner Highlands Pacific for the Nena deposit.



Mineral Resources of the Oxide Leach Gold Cap and Nena Copper-Gold
Deposit (using a 0.6 g/t Au cut-off for leach cap and 0.5% Cu cut-off
for Nena Deposit)

---------------------------------------------------------------------
Material Category Mt % Cu Au (g/t)
---------------------------------------------------------------------
Oxide Leach Cap Measured 13.8 0.1 1.4
---------------------------------------------------------------------
Oxide Leach Cap Indicated 3.4 0.1 1.4
---------------------------------------------------------------------
Oxide Leach Cap Measured and Indicated 17.2 0.1 1.4
---------------------------------------------------------------------
Oxide Leach Cap Inferred 0.8 0.1 1.5
---------------------------------------------------------------------
Nena Copper Measured 42.2 2.3 0.6
---------------------------------------------------------------------
Nena Copper Indicated 7.6 1.7 0.6
---------------------------------------------------------------------
Nena Copper Measured and Indicated 49.8 2.2 0.6
---------------------------------------------------------------------
Nena Copper Inferred 1.2 1.8 0.4
---------------------------------------------------------------------


Exploration Results

In 2004, Noranda committed to an increased level of activity which has
included a US$3 million drilling program focused on defining additional
high grade "Nena Style" copper mineralization. Exploration work
consisted of nearly 6,500 metres of diamond drilling along with
engineering concept studies to examine conceptual process, potential
mining scenarios and infrastructure design. A total of 32 holes were
completed on December 17, 2004 on four target areas at Nena North, Nena
West, Nena South and North Debom. Drilling at Nena West and Nena South
is targeting possible extensions to the established Nena resource.
Within both these targets, drilling has intersected high grade enriched
secondary copper.

To date assays have been received for all but part of hole 044NOR04.
Significant results are summarized in the table below. Missing hole
numbers indicate that no significantly mineralized intervals were
intersected in the holes.



Summary of Assays Received to Date from the 2004 Drill Program

---------------------------------------------------------------------
HOLE # FROM TO LENGTH %Cu g/t Au %As
---------------------------------------------------------------------
---------------------------------------------------------------------
013NOR04 108 - 128 20 0.60 0.400 0.011
---------------------------------------------------------------------
015NOR04 12 - 226 214 2.23 0.113 0.032
Includes 98 - 158 60 4.47 0.190 0.021
Includes 194 - 212 18 3.22 0.126 0.009
---------------------------------------------------------------------
017NOR04 88 - 96 8 2.58 0.020 0.076
017NOR04 116 - 122 6 4.73 0.537 0.164
017NOR04 156 - 178 22 5.59 0.028 0.009
Includes 156 - 158 2 4.53 0.080 0.008
Includes 162 - 168 6 19.00 0.020 0.003
Includes 172 - 178 6 9.46 0.043 0.012
---------------------------------------------------------------------
019NOR04 106 - 152 46 9.69 0.020 0.021
---------------------------------------------------------------------
021NOR04 110 - 128 18 0.79 0.240 0.060
021NOR04 156 - 160 4 4.39 0.450 0.034
---------------------------------------------------------------------
022NOR04 136 - 144 8 0.37 0.118 0.003
022NOR04 152 - 160 8 0.48 0.168 0.038
---------------------------------------------------------------------
023NOR04 22 - 30 8 1.68 0.080 0.100
---------------------------------------------------------------------
024NOR04 10.3 - 28 17.7 0.07 0.107 0.303
024NOR04 198 - 206 8 1.82 0.058 0.027
---------------------------------------------------------------------
026NOR04 20 - 34 14 4.13 0.063 0.020
---------------------------------------------------------------------
027NOR04 18 - 50 32 1.22 0.054 0.007
027NOR04 18 - 24 6 2.65 0.073 0.004
027NOR04 44 - 50 6 2.30 0.043 0.004
---------------------------------------------------------------------
028NOR04 56 - 78 22 1.79 0.117 0.137
028NOR04 78 - 102 24 0.38 0.065 0.010
---------------------------------------------------------------------
030NOR04 32 - 60 28 1.01 0.225 0.005
---------------------------------------------------------------------
031NOR04 36 - 58 22 0.26 0.054 0.000
031NOR04 140 - 228 87.75 0.23 0.040 0.001
031NOR04 160 - 182 22 0.35 0.033 0.000
---------------------------------------------------------------------
033NOR04 10 - 28 18 1.13 1.171 0.341
Includes 18 - 26 8 2.23 0.920 0.264
033NOR04 46 - 52 6 3.33 0.020 0.097
033NOR04 68 - 94 26 0.05 0.048 0.316
---------------------------------------------------------------------
034NOR04 34 - 64 30 0.60 0.061 0.004
---------------------------------------------------------------------
035NOR04 86 - 100 14 1.60 0.10 Pending
---------------------------------------------------------------------
040NOR04 72 - 206 134 2.38 0.02 Pending
Includes 72 - 136 64 3.46 0.05 Pending
Includes 164 - 172 8 5.12 0.00 Pending
Includes 194 - 206 12 2.87 0.02 Pending
---------------------------------------------------------------------
043NOR04 196 - 199.6 13.6 1.37 0.02 Pending

Hole abandoned in mineralization
---------------------------------------------------------------------


The drilling has confirmed significant extensions to the high grade
copper mineralization at Nena, which remain open to the south and on
some sections open to the west. Nena-style mineralization has also been
discovered 1.5 km to the south at North Debom in drillhole 027NOR04
which produced an intersection of 1.22% Cu over 32 metres including
intervals of 2.65% Cu over 6m and 2.30% Cu over 6 metres. Assays are
pending on the second hole to intersect the mineralized zone.

Once the current drilling program is complete, the results will be
consolidated into an ongoing compilation of historical geological
information which will be used as the basis for a new interpretation of
the geology of the deposit in advance of a revised resource estimate
scheduled for completion in the first half of 2005.

Recommendations for future work include a 9,900 metre drilling program
in 2005 that will comprise:

- 5,400 metres of drilling to:

- Delineate the Nena deposit;

- Investigate the extensions of the North Debom deposit; and

- Test the Hiro ridge, mineralized breccia target.

- 3,000 metres of drilling on the Ekwai Debom high sulphidation target
and on porphyry targets; and

- 1,500 metres of PQ drilling for metallurgical sampling.

Once the Nena deposit has been completely defined, a revised resource
estimation will be undertaken that will include all the results of the
2004 drilling program.

A metallurgical sampling program comprising approximately 1,500 metres
of PQ drilling will be undertaken on the Nena deposit to investigate the
predictive metallurgy of this mineralization type for which previous
studies indicated complex metallurgy.

Diamond drilling is planned to resume in mid February 2005.

Quality Control

Quality assurance procedures were adopted to ensure quality data were
obtained for all measurements. All drill collars have been surveyed by a
qualified land surveyor. Downhole attitude (dip and magnetic north) were
measured with a single-shot photographic system. The drilling program is
operated by Highlands Pacific, Noranda's partner at Frieda River, and
supervised by an employee of Noranda Inc./Falconbridge Limited, project
manager Charles Beaudry, P.Geo. and Qualified Person under National
Instrument 43-101 guidelines. Mr. Beaudry spent 12 weeks in total at
project site during the 2004 drilling program.

All core is moved daily to a core logging and sample preparation
facility established at the project site. Representative core samples
are tested for density determinations using the immersion method after
waxing. Core is logged (geology, geotech) by a geologist and
photographed. Mineralized intervals are subdivided by a geologist on 2.0
metre composites and sawn in half with one half retained and the other
sent to the sample preparation facility. Due to the reactive nature of
the mineralization in the hot humid climate special precautions are
taken to avoid oxidation:

- Rapid processing of the samples on a daily basis;

- Nitration of all samples prior to shipping; and

- Nitration of rejects.

The half sawn core samples are processed for assay according to a flow
sheet that was specially designed for the project. The sawn half core is
dried (90 to 110 deg C) and crushed to -6 mm in a jaw crusher and then
to -2 mm in a cone crusher (PSA greater than or equal to 80% passing
-10mesh) before splitting. Approximately 3-5 Kg are then milled to
-40mesh in LM5 ring grinder (greater than or equal to 90% passing
-40mesh). A minimum of 200 g of pulp is scooped from the LM5 bowl and
this material is sent to the lab for analysis/assay.

Crushing and milling are monitored with sieve tests (5%) and with 10%
duplicates. Blank material consisting of broken glass (from soft drink
bottles) is inserted in 5% of samples, particularly after a run of high
grade material.

The pulp samples are sent to ALS in Townsville for gold fire-assay (50 g
- Au-AA26), ICP-AES (ME-ICP41s and ME-MS42) analysis for 36 elements
including Cu, As, Sb, Hg, and Te and for sulphide S by difference
(S-CAL07). All samples with copper values above the upper detection
limit of 1% Cu are sent to ALS Brisbane for Cu assay by strong acid
digestion and atomic absorption (Cu-OG46) determination.

Standards are inserted in the batches in every 20th sample. Initially an
internal project standard (Sierita) was utilized but when high grades
were encountered in the Nena drilling three additional commercial
standards were acquired to improve the monitoring of analytical
performance for both copper and gold (GBM304-11 and 16 and G301-8). The
standards are rotated and selected for the type of mineralization
encountered in the core.

Results for the standards and blanks are plotted on control charts
immediately upon reception of batches. Standard values for Cu and Au
that plot beyond the mean plus or minus 3 standard deviation lines (and
in some cases plus or minus 2 STD) are rejected and batches rerun. For
blanks a warning line of 200 ppm Cu was used to monitor sample
preparation. The Sierita standard was very well behaved for the low
grade samples (less than 1.0% Cu) but was not submitted with the high
grade Cu assays until additional standards were acquired. As a result,
the high grade copper assays in the first half of the drilling program
were mainly monitored from the extensive QAQC results published by ALS
with the analytical reports. These data were reviewed and found to be
acceptable. Except for one short period in the early part of the program
the blanks performed very well.

At least 10% of the pulp samples were submitted to Genalysis as a
secondary lab for check analysis for Cu and Au. A slight bias of 5% in
favour of ALS was observed in the assays ranging between 1% and 4% Cu.
Higher and lower grade assays results showed no bias.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Noranda Inc./Falconbridge Limited
    Denis Couture
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    (416) 982-7020
    or
    Noranda Inc./Falconbridge Limited
    Bill Mercer
    Director, Geology and Geochemistry
    (416) 982-7269