Total finished nickel production in Q1 of 2013 was 65,000 tonne, 1.7% higher than Q4 of 2012 and 3.0% above Q1 of 2012, the best first quarter since 1Q09. Improved operational reliability in Canada and the ramp up of VNC more than offset the effect of the production loss from Onça Puma and the maintenance shutdown of a furnace at Sorowako.

Finished nickel production using feed delivered by the Sudbury operations was 10.6% higher than Q4 of 2012, at 17,100 tonne but 23.8% lower than Q1 of 2012. In 1Q13 the Copper Cliff smelter processed more Voisey’s Bay feed, while there was some inventory accumulation of Sudbury feed to support future finished nickel production.

There was a 1 week corrective maintenance stoppage at the Clydach nickel refinery in January. Since February, Clydach has returned to normal operation.

The output at Thompson in Q1 of 2013 was 7,200 tonne an increase of 800 tonne against Q4 of 2012 and 1,200 tonne from Q1 of 2012.

Finished nickel production sourced from Voisey’s Bay concentrates which are processed through the Sudbury and Thompson smelters were 18,700 tonne in Q1 of 2013 with an increase of 29.2% in relation to Q1 of 2012, showing the best performance ever for a first quarter. Both the Thompson and Copper Cliff smelters performed well and processed inventories of nickel concentrates produced by Voisey’s Bay. It is worthwhile to note that during the winter season there are limitations to the maritime transportation of nickel concentrates out of Northern Labrador, where Voisey´s Bay is located.

Production of nickel in matte from our Indonesian Sorowako operations totaled 18,500 tonne, 13.1% lower than the previous quarter due to a 3 week furnace shutdown for maintenance in March. The furnace returned to normal operation and production rates were stable by the end of the month. Given the production cycle the losses of matte production caused by the maintenance stoppage will affect finished nickel output in Q2 of 2013.

Production of finished nickel sourced from Sorowako was 17,400 tonne 24.5% lower than Q4 of 2012. This was determined by furnace issues at our nickel refinery in Dalian. Additional matte has been redirected to our 25% owned refinery in KNC, in South Korea, where it is processed into finished nickel under a tolling agreement.

The furnace problems at Dalian are going to require us to go through a shutdown and rebuild this year. However, the toll agreement with KNC, which has approximately the samecapacity of Dalian, about 32,000 t0nne per year will avoid the impact on the output of finished nickel.

VNC is ramping up as planned starting operations at the second of its 3 production lines and running at an annualized rate of 20,400 tonne in Q1 of 2013, approximately 35% of the estimated maximum capacity.