LABRADOR NICKEL ROYALTY LIMITED PARTNERSHIP

Voisey's Bay Royalty

Altius owns a 10% interest in the Labrador Nickel Royalty Limited Partnership (LNRLP), which owns a 3% net smelter return (NSR) royalty in the Voisey's Bay nickel district.

Altius' royalty entitles it to a share of revenues less certain costs incurred after concentrates leave the mine site for final processing. The costs of mining or onsite processing are not deducted from our share of revenues. CVRD INCO's most recent estimated cost of nickel production, net of byproduct credits and subject to sensitivity analyzed disparities that include its cost of energy, is $0.90 per pound.

The acquisition of this royalty is strategic to Altius both from the perspective of its inherent attributes as well as the positive impact it will have on Altius' existing exploration business.

2006 was the first full year of mining operations at Voisey's Bay and Altius realized in excess of $4 million in revenues. At current nickel prices revenues of ~$1 M per quarter are anticipated.

Inherent Value

The royalty interest is expected to generate a significant long-term return on investment for the Company.

Conservative long-term metal price forecasts of $3.25 / lb nickel, $7.00 cobalt and $0.90 copper generate internal revenue estimates that well exceed $1 million per year over an initial 25-year mine life.

Inherent Upside

Altius believes the exploration potential of the area captured by the royalty to be exceptional. This exploration upside is especially significant to Altius because not only does the royalty apply to the known mines and ore reserves at Voisey's Bay it applies to the entire Voisey's Bay district! Further, the exploration potential comes at zero effective risk to Altius shareholders, as exploration expenditures are not deductible against royalty payments.

The Voisey's Bay project is at a very early stage of its exploration and development history compared to other world-renowned nickel districts like Sudbury and Noril'sk which dramatically grew in scale over the initial decades following discovery. For instance, over the past 2 years, CVRD-INCO has been delineating a significant new high-grade mineralized zone at the Reid Brook where early drill intersections included: 75.4 metres grading 2.9% Ni, 1.2% Cu, & 0.20% Co, and 61.6 metres grading 2.9% Ni, 1.5% Cu, & 0.20% Co.  More recently CVRD-INCO has been exploring a new large claim area south of Voisey's Bay that is believed to feature many geological similarities to the producing district. This renewed exploration commitment by CVRD-INCO will almost certainly lead to future discoveries in the district.

The Nickel Market

Nickel is widely cited by industry analysts as having the most favourable market fundamentals of the major base metals. Forecasts of supply deficits through the next several years are the general consensus. The current LME spot price for nickel is around US $13 per pound. The life of project average cost of production at Voisey's Bay was estimated by Inco at US $1.10 to US $1.15 per pound of nickel.

Adds Value to Existing Business

Also important to Altius is the effect that the expected revenue from the royalty interest will have on its existing project generation business model. Altius' exploration business is now effectively fully financed for at least the next quarter century. Access to sufficient exploration capital, without onerous capital share structure dilution, is arguably the main impediment to success in the world of mineral exploration. Altius shareholders have now seen this risk virtually eliminated with the commencement of production in this world class mining district.