(Platinex Inc. v.
Kitchenuhmaykoosib Inninuwug First Nation) restraining Platinex Inc.
from continuing its exploration
activities on Crown lands which the Kitchenuhmaykoosib Inninuwug First
Nation ("KI") claimed was their
traditional territory pending consultation between the Province of
Ontario and KI is evidence of, and
highlights, the risks faced by mining companies exploring on Crown
lands in Ontario, like the Company,
where the Province of Ontario has not consulted with affected
aboriginal groups in relation to such
exploration as the Province is required to do. After the Company
received the above-noted letter from the
MFFN it contacted the Province of Ontario to request that the Province
consult with the MFFN in relation
to the Company's exploration at Highbank Lake. However, despite the
fact that the Company has been
proactive in consulting with the MFFN and requesting that the Province
do so, there is a risk that the
Company could be restrained from its exploration activities at Highbank
Lake or its other properties as a
result of the Province's failure to consult.
In September 2007, the MFFN elected a new Chief and council. The new
Chief and Northern
Shield have been familiar with one another since 2003 and maintain an
amicable relationship. Northern
Shield will be meeting with the Chief shortly to see if a new LOU is
still required.
The Company does not currently expect any issues or problems with the
exploration proceeding as
planned at Highbank Lake.
NORTHERN SHIELD RESOURCES INC.
FORM 51-102F1
Management Discussion and Analysis, FY2007
