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 Metalore has been active in mining exploration for over sixty-five years and in Natural Gas development for over fifty years. The
company participated in early development of the Provost gas field in Alberta from 1956 through 1961 and has been the major player in
developing the Norfolk gas field in Southwestern Ontario since 1964, pioneering technologically advanced completion and fracturing techniques.
The Ontario Natural Gas operations constitute the “core business” of the Company and is its principal source of revenue. The Cash Flow from
production and investments is prioritized and allocated between (1) maintaining capital liquidity, (2) drilling new wells to sustain and/or increase
production, (3) fielding select mining exploration projects and (4) .paying dividends from profits to Shareholders.
Metalore is a most unique Company in the junior resource sector. It has the lowest number of shares outstanding of any
resource stock listed on the Toronto Stock Exchange (“MET” on TSX). The Company has protected the equity of shareholders for the
past forty years by financing all exploration and development costs with cash flow from operations. Metalore inaugurated payment of
its first cash dividend to shareholders in the year 2000 and has since paid its tenth consecutive annual dividend from operating
profits.
Overall Performance
Metalore manages a large portfolio of undrilled petroleum and natural gas leases and sustains production by the systematic drilling of
new wells. The Company has consistently located its wells on ultra wide spacing patterns to minimize the year to year decline in deliverability
and maximize the longevity of production – which can be verified by its forty-five year production record.
For the past decade
Metalore has been consistently selling the majority of its gas production at forward “strip contract”
prices that have been substantially higher than the current NYMEX (New York Mercantile Exchange) price at time of delivery. Management of the Company has also established a record of discovering and outlining precious metal deposits (Brookbank, Fox Ear,
Cherbourg and Irwin are NI 43-101 compliant). The majority interests in these resources were sold in 1998, subject to joint venture participations
and/or royalty payments.
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