Historic Estimate

Historic Estimate - Thunder Bay North

The Escape Lake Intrusion and magma conduit appears to be a twin structure to the Current Lake Intrusion and magma conduit on the Thunder Bay North Project (Figure 1). Panoramic PGMs (Canada) Ltd. previously reported a historic estimate of 9.8 million Tonnes Indicated grading 2.3g/T Platinum Equivalent (PtEq) on a weighted average basis, from Open Pit and Underground sources (Table 1) on the Thunder Bay North or Current Lake Deposit.

The Open Pit estimate data within the table presented in Table 1 was taken directly from a similar table presented within the AMEC Technical Report dated 6 October 2010. Additional underground estimate data within the Appendix 1 table was taken directly from data presented within a publicly disclosed 23 February, 2012 Magma Metals Limited Press Release. All data in Table 1 is within the personal knowledge of Allan MacTavish, M.Sc., P.Geo. (Ontario) and employee of Clean Air Metals Inc. who is a Qualified Person under the provisions of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, and has reviewed and approved the technical content of this disclosure.

The historic estimate of the Current Lake Deposit at the Thunder Bay North Project is considered by Clean Air to be historic in nature. No Qualified Person as defined by NI 43-101 has done sufficient work for Clean Air to classify the historic estimate of the Current Lake Deposit as current and the Company is not treating the historic estimate as current. The Company's QP has verified the data but no resampling of core or any other tests on the analytical procedures has yet been performed by the Company to-date. Confirming the historic estimate at Current Lake will be a concurrent priority for Clean Air Metals Inc.

Figure 1:  3D Oblique View of the Thunder Bay North Escape Lake and Current Lake Magma Conduit System

Table 1: TBN - Current Lake Deposit - Historic Estimate

Qualifying Statements and Notes

Notes

Thunder Bay North Open Pit Historic Estimate: The open pit Historic Estimate is reported at a cut-off grade of 0.59 g/t Pt-Eq within a Lerchs-Grossman pit shell optimized on Pt-Eq. The strip ratio (waste:ore) of this pit is 9.5:1. The platinum-equivalency formula is based on assumed metal prices and overall recoveries. The Pt-Eq formula is: Pt-Eq g/t = Pt g/t + Pd g/t x 0.3204 + Au g/t x 0.6379 + Ag g/t x 0.0062 + Cu g/t x 0.00011 + Total Ni g/t x 0.000195 + Total Co g/t x 0.000124 + Rh g/t x 2.1816. The conversion factor shown in the formula for each metal represents the conversion from each metal to platinum on a recovered value basis. The assumed metal prices used in the Pt-Eq formula are: Pt US$1,595/oz, Pd US$512/oz, Au US$1,015/oz, Ag US$15.74/oz, Cu US$2.20/lb, Ni US$7.71/lb, Co US$7.71/lb and Rh US$3,479/oz. The assumed combined flotation and PlatsolTM process recoveries used in the Pt-Eq formula are: Pt 76%, Pd 75%, Au 76%, Ag 55%, Cu 86%, Ni 44%, Co 28% and Rh 76%. The assumed refinery payables are: Pt 98%, Pd 98%, Au 97%, Ag 85%, Cu 100%, Ni 100%, Co 100% and Rh 98%.

Thunder Bay North Underground Historic Estimate: The underground Historic Estimate is reported at a cut-off grade of 1.94g/t Pt-Eq. The Pt-Eq formula is: Pt-Eq g/t = Pt g/t + Pd g/t x 0.2721 + Au g/t x 0.3968 + Ag g/t x 0.0084 + Cu g/t x 0.000118 + Sulphide Ni g/t x 0.000433 + Sulphide Co g/t x 0.000428 + Rh g/t x 2.7211. The assumed metal prices used in the Pt-Eq formula are: Pt US$1,470/oz, Pd US$400/oz, Rh US$4,000/oz, Au US$875/oz, Ag US$14.30/oz, Cu US$2.10/lb, Ni US$7.30/lb and Co US$13.00/lb. The assumed process recoveries used in the Pt-Eq formula are: Pt 75%, Pd 75%, Rh 75%, Au 50%, Ag 50%, Cu 90%, and Ni and Co in sulphide 90%. The assumed smelter recoveries used in the Pt-Eq formula are Pt 85%, Pd 85%, Rh 85%, Au 85%, Ag 85%, Cu 85%, Ni 90% and Co 50%. Ni and Co in sulphide were estimated by linear regression of MgO to total Ni and total Co respectively. The regression formula for Ni in sulphide (NiSx) is: NiSx = Ni - (MgO% x 60.35 - 551.43). The regression formula for Co in sulphide (CoSx) is: CoSx = Co - (MgO% x 4.45 - 9.25).

The historic estimate of the Current Lake Deposit at the Thunder Bay North Project is considered by Clean Air to be historic in nature. No Qualified Person as defined by NI 43-101 has done sufficient work for Clean Air to classify the historic estimate of the Current Lake Deposit as current and the Company is not treating the historic estimate as current. The Company's QP has verified the data but no resampling of core or any other tests on the analytical procedures has yet been performed by the Company to-date. Confirming the historic estimate at Current Lake will be a concurrent priority for Clean Air Metals Inc.

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