MILLROCK RESOURCES ALLIANCE

Royalty "Creation" and Shareholding

Altius holds a significant equity stake in Millrock Resources Inc., a project-generation focused exploration company active in Alaska and Arizona. Millrock has a number of active earn-in option agreements with major mining companies like Vale, Kinross Gold, Inmet Mining, Valdez Gold and Teck American validating Altius’ overall investment rationale in the company. Altius’ primary objective at the time of investment in June 2009 was to finance an exploration alliance to identify and explore highly prospective areas of the Kahiltna Terrane for large copper-gold deposits like the giant Pebble deposit.

This uniquely structured alliance was mutually improved in June 2010 to streamline the joint-venturing process and better attract earn-in partners. The amendment was strategic for Altius by increasing a royalty provision in favour of Altius to 2 per cent on gold and 1 per cent on other commodities pertaining to all properties staked within the alliance's defined area of interest. Effectively a straight line path to royalty creation in an emerging world class copper-gold district.

As part of the agreement restructuring Altius also agreed to increase its share ownership by exercise of warrants it held for the purchase of 4,227,223 Millrock common shares at a total cost of approximately $1.27-million. In exchange for the early exercise, Millrock issued new warrants for the purchase of 3.45 million common shares at a price of 45 cents per share for a period of five years. Altius currently owns 4,776,546 common shares of Millrock, a 7.2% interest on an undiluted basis.