Naakenavaara Cu-Au-Co-Ni Project

Naakenavaara Project

A Potential World-Class Copper-Gold Deposit

Naakenavaara requires an estimated US$4 Million in further exploration to bring a large mineralized area named the “Bulls-Eye” that has already been drilled with 72 drill holes and 13 trenches - into an NI 43-101 compliant Inferred and Indicated Resource category.

The investment is seen as having minimal risk since the mineralization is known to occur throughout the “Bulls-Eye”, and merely requires in-fill drilling. The geology of the deposit is typical of laterally extensive, stratigraphically controlled low-grade deposits found in Finland within the Famous “Black-Schist” including the Talvivaara Deposit in Finland, and the Aitik copper-gold-molybdenum deposit in Sweden. Despite being known for over 40 years, Naakenavaara has remained “off the radar screen” since copper and gold prices in the early 1970’s were not high enough to warrant commercial exploitation and continue exploration. In the early 1970’s, copper was $0.53/lb and gold was under US$36.02/Ounce. Since this time, copper has increased seven-fold and gold has increased almost sixty-fold. Open pit mining was not considered at option in the early 1970’s, and the geology of the area was poorly understood. As such, Naakenavaara is seen as a timely and unique opportunity to develop a large copper-gold district in a stable country with a long history of copper mining.

The Naakenavaara 1-4 Mining Claims cover only 4 km2 of the total 13.5 km2 square Naakenavaara area, and mean that ~25% of the entire Naakenavaara Property has been systematically explored through diamond drilling. Taranis has not received the Mining Claims for the Naakenavaara 5-14 Mining Claims yet, but they are expected to be received in 2012. Taranis has already conducted geophysical surveys over the entire Naakenavaara 1-14 Mining Claim group, and has a number of high-priority targets outside of the 1-4 group.

Location

The Naakenavaara copper-gold-cobalt-nickel property is located 9 km northeast of Kittilä in northern Finland, in close proximity to an experienced workforce, within an economically stable and mining friendly country, and near excellent infrastructure including roads, power and water.

Finland is a well-performing euro zone economy and is one of the world premier mining investment destinations ranking ahead of most Australian and Canadian provinces in recent surveys. Since the discovery of copper mineralization at Naakenavaara in the early 1970’s, the property has been subject to only minimal exploration efforts including the Geological Survey of Finland (“GTK”), and was briefly held by the Broken Hill Proprietary. Taranis owns the property 100% through its wholly-owned Finnish company, Tailtiu Oy.

Tailtiu Oy filed the initial applications for Mining Claims on the Property in 2005 and was granted the Mining Claims in 2008 for the Naakenavaara 1-4 Mining Claims that cover the main area of known mineralization on the property. Pursuant to this, it filed the Naakenavaara 5-14 Mining Claim Applications after it was recognized that the copper and gold mineralization extended far beyond the limits of the original Naakenavaara 1-4 Mining Claims. To date, all of the drilling activity has focused on the Naakenavaara 1-4 Mining Claims on a geophysical feature called the “Bulls-Eye”, an elliptical geophysical anomaly that measure over 2.5 km east-west and 750 m north-south. The 72 drill holes drilled to date demonstrate that there are two major forms of mineralization on the property:

1) Low-grade (Disseminated) bulk mineable type mineralization related to a widespread, generally flat-lying unit called the Black Schist that grades about 0.50% CuEq and on average is 20 m thick, but can be significantly thicker in areas (up to 80 m thick). The depth of these zones are all within 150 m of surface, and the stripping ratios are between 0 and 3:1, similar to what is seen at other large bulk-mineable deposits in Finland.

2) A Recently recognized higher grade portion (Semi-Massive) of the Black Schist that occurs along the southeast side of the “Bulls-Eye” in the Chiisai Zone. Although thin (2.5 m on average), the zone is characterized by higher-grade 2.45% CuEq zones on average, and could be mined through underground ramps since the depths are minimal (0-130 below surface) and would complement the lower-grade, bulk mineable mineralization.