Nuinsco sells Rainy River property

News Release
Nuinsco

Nuinsco Resources Limited (TSX:NWI) announced the sale of its Rainy River property to a private company. Nuinsco has received $500,000 and will receive an additional $2,000,000 in eight equal quarterly payment commencing March 2005, plus $2,500,000 on commencement of commercial production or direct shipment of ore from the property. Nuinsco will also receive a quarterly royalty of $1.00 per ton of ore produced from the property, subject to an annual Consumer Price Index adjustment.
In addition, Nuinsco will receive common shares in a new company being formed to hold the Rainy River property, equal to 7% of the issued capital, calculated on a fully diluted basis. For five years, Nuinsco will have the right to retain its 7% equity interest by participating in future equity issues completed to finance the continued development of the property.
“This transaction represents a step to obtaining value for an undervalued and inactive asset of the Company. The cash received and to be received in the future will reduce the need to issue equity to finance some of the Company’s fixed costs. It also forms part of our plan to rationalize our property holdings and better focus our activities,” said Warren Holmes, President and CEO.
Nuinsco is an exploration and development company with nickel projects in Manitoba, Ontario and Quebec, gold projects in Ontario and base metal projects in Ontario and Turkey. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI. U.S.S.E.C. exemption: 12g3-2(b)#82-1846. The website address is www.nuinsco.ca