Morrison Copper/Gold Project Feasibility Study …

1 Report Copper/Gold ProjectFeasibility StudyVolume 5 FinancialAnalysisDocument Party DisclaimerThe content of this document is not intended for the use of, nor is it intended to be relied upon by any person, firm orcorporation, other than the client and Wardrop Engineering Inc. Wardrop Engineering Inc. denies any liability whatsoeverto other parties for damages or injury suffered by such third partyarising from use of this document by them, without theexpress prior written authority of Wardrop Engineering Inc. and our client. This document is subject to further restrictionsimposed by the contract between the client and Wardrop Engineering Inc. andthese parties' permission must be soughtregarding this document in all other document is for the confidential use of the addressee only.

2 Any retention, reproduction, distribution or disclosure toparties other than the addressee is prohibited without the express written authorization of Wardrop Engineering E V I S I O N H I S T O R DATEPREPARED BYAND DATEREVIEWED BYAND DATEAPPROVED BYAND DATEDESCRIPTION OF REVISION00 Feb. 5, 09 Feb. 5, 09S. TeymouriFeb. 5, 09M. VicentijevicFeb. 5, 09J. C. RobertsonIssuedDraft for , , 09S. , 09M. , 09J. C. 26, 09 Feb. 26, 09S. TeymouriFeb. 26, 09M. VicentijevicFeb. 26, 09J. C. RobertsonIssued Final A B L E O F C O N T E N T Booker Minerals StudyVolume 5 Financial Analysis1 . 0F I N A N C I A L A N A L Y S I S1 . 1IN T R O D U C T I O NAn economic evaluation of the Morrison Project was prepared by Wardrop based ona pre-tax financial model.

3 For the 21 year mine life the following pre-tax financialparameters were calculated: IRR on $ $ valueThe base case prices (LME four-yearhistorical average) as ofJanuary 12, 2009were as follows: copper -US$ gold -US$ Molybdenum-US$ for the financial analysis is$ (US$:C$)Sensitivity analysis wascarried out to evaluate theProject economics for the four-year metal prices1 . 2PR E-TA XMO D E L1 . 2 . 1FI N A N C I A LEV A L U A T I O N S N P VA N DI R RProduction figuresfromNilsson Mining Services (NMS)have been incorporated intothe 100% equity pre-tax financial model to develop annual recovered metalproduction from the relationships of tonnagemilled,head grades and prices for copper , gold andmolybdenumhave been adjusted to realizedprice levels by applying smelting, refining and concentrate transportation chargesfrommine siteto smelter to determine the NSRcontributions for each operating costs for mining, milling.

4 AndG&Aareaswere applied to annualmilled tonnages to determine the overall minesite operating cost which has beendeducted from NSR to derive annual and sustaining capital costs have been incorporated on a year-by-year basisover the mine life and deducted from theNet Revenue to determine theNet CashFlow before capital expenditures include costs accumulated prior toPacific Booker Minerals StudyVolume 5 Financial Analysisfirst production of concentrate;sustaining capital includes expenditures for miningand milling additions,replacement of equipment,andwaste capital hasbeencalculatedon the basis of three monthsminesiteoperating costs and applied to the first year of will be recovered atthe end of the mine life and aggregated withthesalvage value contributionandappliedtowards reclamation during undiscounted annual cash flows are illustrated inFigure Annual and Cumulative Cash FlowPre-Tax CashFlow-1,000,000-500,0000500,0001,000, 0001,500,0002,000,000Y-2Y-1Y1Y2Y3Y4Y5Y6Y 7Y8Y9Y10Y11Y12Y13Y14Y15Y16Y17Y18Y19Y20Y2 1 Project YearsCashFlowCdn$000sPre-Tax CashFlowAccumulated Pre-Tax CashFlow1.

5 2 . 2ME T A LPR I C EA N DEX C H A N G ERA T ESC E N A R I O SWardrop adopted historical four-year average metal prices for the base averaging of historical prices was calculated as of January 12, current downturn in all metal priceshas resulted in all metals trading at pricesthat are currently considerably lower than their respective four year average new policy utilizes the Energy & Metals Consensus Forecasts quarterlyreports (The Consensus Economics Inc.) in calculating the Wardrop/EMCF approachis to avoid large fluctuations in metal prices from Study to studyandto use the long term price averaged from three quarterly reports of EMCF. Forthis Study if executed between February 1 and July 31, the long term metal priceswould be derived by averaging the long term prices for previous July, October andJanuary quarterly reports to drive the Wardrop/EMCF four-yearprices(Base Case),Wardrop/EMCF(Energy & Metals ConsensusPacific Booker Minerals StudyVolume 5 Financial AnalysisForecasts)prices,and current prices(as of January 12, 2008)based on the rollinghistoricalaverage prices from the LME are summarized inTable of Pre-tax Metal Price and Exchange Rate ScenariosScenarioCopper(US$/lb) gold (US$/ oz)Moly(US$/oz)FXR(US$:C$)4-Year Average (Base Case).

6 Prices are as of January 12, 2009 Fixed exchange rates (FXR) presented above to the correspondingmetal pricescenarioswould apply in the case of developing current costs and financial constant exchange rate of (US$:C$) hasbeen used in development of thecapital cost estimateand in all pre-tax financial model was established on a 100% equity basis, excluding debtfinancing and loan interest charges. The financial outcomes have been tabulatedfor NPV, IRR and Payback of Capital. Discount rate of 8%wasapplied to all casesidentified by metal price current prices and the Wardrop/EMCF prices were applied to the same basecase financial results of all three scenarios as described arepresentedin of Pre-Tax NPV, IRR, and Payback by Metal Price ScenarioScenarioNPVat 8%DiscountRate(million C$)IRR(%)Payback(Years)4-Year Average (Base Case) Prices( ) (January 12,09)( )N/AN/A1.

7 2 . 3SE N S I T I V I T YAN A L Y S I SSensitivity analysiswascarried out on the following parameters: copper , gold ,and Molyprices copper Head Grade Exchange rate Initial capital expenditure Mine site operating costsPacific Booker Minerals StudyVolume 5 Financial AnalysisThe analysisispresented graphically as financial outcomes in terms of NPV Project NPV (8% discount)is most sensitive to the exchange rate and indecreasing order:copperprice, copper head grade, capital and operating Sensitivity , , , Change in Input ValueNPVmillionCdn$ValueCo pp e r Pri ceGo l d Pri ceMo l y Pri ceExch a nge Ra teCo pp e r He a d Gra d eOp e ra ti n g Co s tCa pi ta l Cos tSimilarly, the Project IRR is most sensitive to initial capital cost followed by FXR, copper price, and copper head Sensitivity Change in Input ValueIRR%ValueCop p e r Pri ceGol d Pri ceMol y Pri ceExch a nge Ra teCop p e r He a d Gra deOp e ra ti ng Cos tI n i ti a l Ca p i ta l Cos t1.

8 2 . 4RO Y A L T I E SNo Royalties were calculated for this . 3SM E L T E RTE R M SContracts will generally include payment terms as follows: copper pay 100% of content less unit at the LME price for Grade Acopper less a refining charge of US$ refining chargePacific Booker Minerals StudyVolume 5 Financial Analysiswill be increased or decreased by 10% for any departure in the copper pricefrom a fix of US$ per pound ( the price is $ the refining charge isincreased to US$ lb and if the price is US$ the refiningcharge is reduced to US$ lb). gold pay on the gold content less a refining charge of $7/accountabletroy ounce. Molybdenum the mine will receive 87% of the price, with a minimumdeduction of $ and a maximum of $ with the buyer taking delivery at themine.

9 Treatment Charge US$85/dmt of concentrate . 4CO N C E N T R A T ETR A N S P O R TLO G I S T I C S Concentrate from the mine site will be truck transported to the Port of charges have been based on concentrate tonnage of 155,000dmt/annum are shown below: truck transport to Port of Stewart C$ stevedoring (port storage handling) C$ ocean transport to Asian port US$ moisture content 8%1 . 4 . 1CO N C E N T R A T ETR A N S P O R TIN S U R A N C EAn insurancerate of be applied to the provisionalInvoiceValue of theconcentrate to cover land-based and ocean transport from the mine site to . 4 . 2OW N E R SRE P R E S E N T A T I O NFor a 10,000wmt shipment lot,a charge of US$5,000wouldbe appliedfor servicesprovided by the owner s representative.

10 Duties would include attendance duringvessel unloading at the smelter port, supervising the taking of samples for assaying,and determining moisture . 4 . 3CO N CE N T R A T ELO S S E SConcentrate losses are normally estimated per handling during shipmentfrom the mine to smelter. For deliveries to Asia, an overall loss of beapplied to the provisional invoice value for seven handlings as truck at truck port storage Booker Minerals StudyVolume 5 Financial vessel into truck transport to truck into smelter storage . 4 . 4EC O N O M I CEV A L U A T I O NHI G H L I G HT SThe pre-tax base case economic evaluation highlights for Years 1 though 21 andthe life of mine are shown inTable Booker Minerals StudyVolume 5 Financial AnalysisTable Economic Evaluation Highlights Base CasePRE-TAX ECONOMIC MODELC lientPacific BookerBASE CASEP rojectMorrison Copper/Gold Project4 YEAR AVERAGE PRICESV ersion2/24/2009-Miloje VicentijevicBASE CASEC reation DateAs of 12/01/20091 SourceUnitsY-22009Y-12010Y12011Y22012Y32 013Y42014Y52015Y62016Y72017Y82018Y92019Y 102020Y112021Y122022Y132023Y142024Y15202 5Y162026Y172027Y182028Y192029Y202030Y212 031 TOTALM etal PricesCopperLMEUS$ $ $ ProductionTonnes Ore Mined &Milled000'stonnes9,85510,95010.