A surface diamond drill program was put into place to follow up on surface diamond drill hole S09‐07 (drilled in 2009), and the results from underground drilling in 2012. As a result a total of 2,785 meters in nine holes were drilled from one surface location.

The surface program utilized a track-mounted diamond drill fitted with NQ size core. Nine holes averaging more than 300 meters each were drilled with spacing at depth varying from 30-55 meters.

Core recovery was close to 100 percent. The core was logged by in‐house geologists and samples were assayed both in‐house and at ALS Laboratories, Vancouver. Visual estimates with a black light also were used as a final check.

Significant results from the nine holes (using a 0.3 percent WO3 cut-off) include 5.3 meters averaging 0.76 percentWO3 and 0.31 percent copper (hole S12‐31), 3.5 meters averaging 0.3 percent WO3 and 5 percent zinc (hole S12‐32) and 4.1 meters averaging 1.77 percent WO3 (hole S12‐39).

The new area, called the “Dakota Zone,” is located on the north flank of the granitic intrusive that lies in close proximity to the “Ore Limestone” and “Swiss Cheese” horizons of the Cantung Mine.

Results are encouraging. It was previously thought that the granite truncated the limestone in this area of the property. It is now evident that this is not case and that the limestone is following the granite contact. There is some structural complexity in the area (faulting and folding) which may account for some of the dissimilar assay results. The overall continuity of the zone, however, is very encouraging, as is its close proximity to mine infrastructure. Additionally, a second lower occurrence of mineralization was intersected in a zone bounded by granite. While unusual for this mine site, it has similarities to mineralization encountered in the Amber Zone. The unusually high grade of the zinc in hole S12‐32 is also encouraging for future exploration.

A summer diamond drill and geophysics program is planned to follow up on this discovery.

N. A. Tungsten CEO Stephen Leahy said, “This is an important discovery for the Cantung Mine as it indicates the presence of a potential new zone very near our existing workings. In addition, the possibility of accessing this new area from underground could make the Dakota Zone a significant component to our future mine plan.”

Tests show tailings potential

N. A. Tungsten also said metallurgical testing and analysis of material from Tailing Storage Pond 3 at its Cantung Mine in Northwestern Territories is ready to begin as the next phase of a tailings reprocessing plan now that a 2011 and 2012 drilling and modeling program has been completed. Tailings Pond 3 was the mine’s primary storage facility for all underground and surface production from 1971 until February 2007.

During this period of operation, mill feed graded considerably higher than current feed, leading to significant amounts of tungsten oxide being discarded as tailings, despite good plant recoveries at the time. The tailings pond has a maximum height of 41 meters, a footprint area of about 102,000 square meters and a volume of about 2.24 million cubic meters, providing a substantial readily available prospective source of material for reprocessing and resource recovery.

A sonic drill program throughout the summer of 2011 and spring of 2012 was conducted to explore the possibility of reprocessing unrecovered WO3, copper and gold from Tailings Pond 3. The program was designed to establish the approximate tonnage and grade of the available tailings which were then compared to historical production statistics. A total of 25 holes were drilled with a spacing of about 200 feet, depending on ground conditions. Tailings samples were acquired at five-foot intervals over the entire length of each hole and assayed at ACME Laboratories, Vancouver. In‐house assay work along with preliminary metallurgical work also was conducted on site.

Tailing Pond 3 is estimated to contain about 3.92 million short tons of material grading 0.31 WO3. The potential tonnage and grade determined by the drilling and modeling program are believed to be comparable with available historical mill production statistics from 1974 to 2006.

With new multiple element assays from the sonic drill program, the potential opportunity for also recovering associated secondary copper and gold as well as the primary WO3 from the tailings also can be determined and incorporated into the design of a possible reprocessing flowsheet.

The potential quantity and grades are conceptual in nature. There has been insufficient exploration and metallurgical testing to define a mineral resource and it is uncertain if further exploration and metallurgical testing will result in the delineation of a mineral resource.

N.A. Tungsten said the next phase in the tailings reprocessing plan will include baseline flotation test work, plus locked cycle flotation tests to determine the feasibility of recovering a marketable concentrate. Magnetic separation, presently used in the production plant flowsheet, also will be evaluated. The program is expected to conclude with off‐site testing of a bulk sample, providing necessary scale up information for commercial processing.

“A positive feasibility for the tailings reprocessing project will certainly make it a priority for the Cantung Mine as it has the potential to add significantly to not only our production but to our overall mine life resource,” said Leahy.

More Amber Zone results

The company also provided an update March 1 on its continuing underground diamond drill exploration program in the Amber Zone at Cantung. Drifting toward this zone has commenced.

Diamond drilling was implemented to fill a 450-foot gap between high-grade intercepts in drill holes U1943, U1936, and U1937 reported Feb. 6, and holes U1978 to U1985, reported June 6. A total of 87 diamond drill holes amounting to 7,620 meters of drilling were completed. Many of the holes intersected one to three zones of mineralization.

This recent phase of drilling verifies the continuity of the mineralization within the Amber zone and the Central Flats over an area with an approximate strike length of 185 meters and an approximate down-dip length of 200 meter. In addition, it opens up 245 meters of strike length of potential mineralization to the east.

Drilling is now commencing in the area of “Amber Zone East” to test the continuity of two areas. Drifting toward the Amber Zone West has commenced from four headings within the current mine workings.

Significant results from the underground drill program include 4.6 meters averaging 4.27 percent WO3 (DDH - U2082), 6.9 meters averaging 4.3 percent WO3 (DDH - US2083), 3.1 meters averaging 3.6 percent WO3 (DDH - U2114) and 4.7 meters. averaging 2.44 percent WO3 (DDH - U2081).

N.A. Tungsten said core recovery in the assay intervals was close to 100 percent.

First-quarter 2013 loss

Further, N.A. Tungsten Feb. 28 reported a net loss of C$4 million, or C2 cents per share for the first quarter of its fiscal year ended Dec. 31. This result compared with net earnings of C$6.6 million or C3 cents per share for the first quarter of FY 2012.

Key results include record production of 80,693 metric tonne units at the Cantung Mine since the restart of operations in 2010; a decrease in revenue to C$11.5 million compared with C$26.4 million for the same period in 2012 due to lower volume and prices; and a substantial drop in cash flow from operating activities C$100,000 compared with C$6.5 million for the year-earlier period. (A metric tonne unit or mtu equals 1 percent of a metric ton, or 22.046 pounds.)

N.A. Tungsten said the first-quarter financial results were negatively affected by a significant

drop in APT prices during the latter half of 2012. Prices tumbled from a high of US$450/mtu in December 2011 to a low of US$295/mtu in December 2012. This significant price drop, most of which occurred in the last calendar quarter of 2012 with major impact in Q1 2013, was driven by worldwide economic uncertainty and a reduction in overall demand.

In addition there was a delay in the renewal of a supply agreement with one of N.A. Tungsten’s major customers. This is now complete and deliveries resumed as of Jan. 1.

During first quarter, the company said it also successfully negotiated an additional supply agreement with a major North American customer.

The Cantung mill processed 90,625 metric tons of ore during the quarter, with an average feed grade of 1.12 percent WO3 and average mill recovery of 79.5 percent compared with Q1 2012 in which 76,628 mtus were produced from 88,460 metric tons of ore milled with an average feed grade of 1.12 percent and an average mill recovery of 77.4 percent.

“The increase in both throughput and mill recovery at Cantung were contributing factors in weathering the recent APT pricing downturn,” said Leahy. “The APT market prices have risen steadily since the beginning of January and are now in the USD$345 to USD$355 range per mtu, which is a very good sign for producing companies such as ourselves,” he added.