Operations

The Endako Mine is a primary, surface molybdenum mine located near Fraser Lake, 100 miles northwest of Prince George, British Columbia. The mine is operated as a joint venture with Thompson Creek holding a 75% interest and Sojitz Corporation, a Japanese company, holding a 25% interest.



The Endako Mine is a fully integrated facility that began operations in 1965. It includes a concentrator that processes ore through crushing, grinding, and flotation circuits into molybdenum disulfide concentrate, and a multiple-hearth roasting facility that converts the concentrate into technical grade molybdenum oxide.

Processing capacity at Endako is approximately 31,000 tons of ore per day. In April 2008, the Corporation began an expansion and modernization project that would increase the mill capacity to 55,000 tons per day. While the expansion project was suspended in December 2008 in response to the economic downturn, it was resumed in August 2009.



The Endako Mine consists of three pits. The Endako Pit, the largest, was the focus of mining activity for many years. In January 2008, mining activity shifted entirely to the Denak West pit and during 2008 the Corporation moved the in-pit crusher from the Endako Pit to an area between the Denak West and Denak East pits and began installing an overland conveyor from that location to the mill. The conveyor commenced transporting ore to the mill in March 2009. Plans call for the creation of a single pit by mining the walls between the three existing pits.

MILL EXPANSION UPDATE

Project engineering, design, and procurement are complete, and most of the major mill components are in place. Pre-commissioning activities are underway and Thompson Creek believes the new mill facility is on schedule for completion in the first quarter of 2012.

Thompson Creek expects the total capital cost for the Endako mill expansion project to be approximately 15% higher than the previous estimate of C$550 million (100% basis). The Company expects the existing mill at Endako to continue to be fully operational until the start-up of the new mill. Approximately C$527 million (100% basis) has been spent on the project since its inception through September 30, 2011.

Upon completion of the mill expansion project, we expect throughput to increase from 31,000 to 55,000 TPD, recovery to increase from 75 to 80%, and total annual production to increase from approximately 11 to 16 million pounds per year (the Company's 75% share will increase from 6 - 8 to 11 - 12 million pounds per year).

ENDAKO RESERVE AND RESOURCE INFORMATION¹

Based on existing mineral reserves, the mine life will be 18 years when the new mill is operational and is processing ore at the expected rate of 55,000 tons per day. The new reserves and mine life calculations are as of September 12, 2011. Click here to view the 43-101 technical report dated September 12, 2011 on the mineral resources and mineral reserve estimates and the life of mine plan.

Endako Mine - Mineral Reserves

Category	Tons (millions)	Grade (%Mo)	Contained Mo (millions lbs)
Proven Reserves	140.9	0.047	133.0
Probable Reserves	199.3	0.045	179.2
Proven and Probable - Total	340.3	0.046	312.2

Endako Mine - Mineral Resources
(Resources are in addition to the Reserves in the chart above)

Category	Tons (millions)	Grade (%Mo)	Contained Mo (millions lbs)
Measured Resources	19.0	0.029	10.9
Indicated Resources	44.3	0.031	27.1
Measured and Indicated - Total	63.2	0.030	38.0
Additional Inferred Resources	54.4	0.035	37.8

¹The mineral reserves and resources estimates were prepared by the Endako mine staff and verified by Mr. John Marek of Independent Mining Consultants, Inc. ("IMC"). Mineral reserves are stated on a 100% basis. The mineral reserves and resources estimates are based on a geologic block model of the Endako deposits assembled by IMC in June 2011 using available diamond drilling data through October 2010 and selected blast hole data through May 31, 2011. The reserves evaluation used a cut-off grade of 0.018% Mo and were estimated using a long-term molybdenum price of $13.50 CDN/lb or $12.00 US/lb using an exchange rate of CDN$1.125/US$1.00. The mineral resources evaluation used a cut-off grade of 0.015% molybdenum and pit shells at a molybdenum price of $16.50 CDN/lb or $15.00 US/lb using an exchange rate of CDN$1.10/US$1.00. The mineral reserves and resources estimates for the Endako Mine are based on a 43-101 technical report prepared for Thompson Creek entitled "Technical Report Endako Molybdenum Mine" dated September 12, 2011 and filed on SEDAR on September 12, 2011.