Canadian Arrow Mines Ltd | Company Profile

Exploring and Developing Nickel Sulphide Deposits in North America

Canadian Arrow Mines Ltd. (CRO-TSXV) is an exploration company and mine operating team that is focused on acquiring and developing economically viable nickel sulphide deposits near existing infrastructure. Arrow has been moving rapidly to develop its Kenbridge Nickel Copper deposit located within 25 miles of established communities and infrastructure in northwestern Ontario, Canada. A recently completed Preliminary Economic Assessment, (scoping study), has determined that the Kenbridge project has a net present value of CD$253M and a cash cost of US$3.47/lb of nickel net of copper by products.

Projects
Kenbridge Nickel Property, Ontario
The Kenbridge property is located in northwestern Ontario near the town of Sioux Narrows, Ontario.The property was explored and developed by Falconbridge Ltd in the 1950s that included sinking a 2000' shaft, developing two lateral levels and crosscuts into the ore zone, extensive diamond drilling, bulk sampling
and pilot plant metallurgical test work. Since optioning the property on 2006 Arrow completed over CD$9M of work aimed at uprgrading the historic mineral resource to NI 43-101 standards that included over 30,000 metres of diamond drilling and bringing the project to an early feasibility decision.
The deposit remains open to depth and along strike with an excellent potential to expand the resource estimate.

New Developments
Arrow has recently received summary reports on metallurgical test work completed on Kenbridge ores. Recoveries of 90% and 93% for nickel and copper respectively for run-of-mine feed were achieved with exceptional recoveries of 84% achieved for nickel from the lower grade open pit ores.
Arrow recently updated its NI 43-101 resource estimate to include all the drilling to date as well as the updated metallurgical recoveries.
The drilling upgraded and increased the Measured and Indicated resource classifications by 87% of contained nickel pounds thus establishing the confidence limits required for the feasibility study to advance.

Current Kenbridge Project Status
An updated Preliminary Assessment (PEA) led by P&E Engineering and WMT Associates completed and filed on SEDAR in August 2008 concluded 85M lbs of nickel and 48M lbs of copper could profitably be extracted over an 8 year mine life.

Highlights of the revised NI 43-101 resource estimate and PEA include:
- 4.46 million tonnes open pit amenable measured and indicated resource at 0.42% nickel and 0.23% copper within the upper 160m of the deposit.
- 2.68 million tonnes of underground amenable measured and indicated resource at 0.96% nickel, 0.50% copper.
- 2,800 tonne per day concentrator,combined open pit & underground mining operations
- Pretax economics: IRR 65%,NPV $253M
- Pre-production capital requirement of CD$108M
- Production of 13M lbs of nickel and 6M lbs of copper annually over 8 years
- Anticipated start-up commencing in 2010

Share Structure:
Stock Symbol: CRO/TSX-V
Shares Outstanding: 68.9 million
Fully Diluted: 82.2 million

Management:
- Dean MacEachern, P.Geo., CEO
- Kim Tyler. P.Geo., President
- Todd Keast, P.Geo, V.P.Exploration
- Garett Macdonald, MBA, P.Eng.,V.P. Operations