Product

March 2009 News Bulletin
In spite of the overall economic downturn, the ORC mineral prices have not been impacted as greatly as other commodities. This is in part due to the unique nature of the ORC Minerals, especially the ORC chromite, which can be substituted for the more expensive zircon in foundry sand application; thus limiting a downside in pricing for the ORC chromite.

ORC presently has three primary minerals that are marketable products; chromite, garnet and zircon.

Chromite
The Oregon chromite has applications in the foundry industry as molding sand used in making precision steel casts. Approximately 3,100 foundries are active in the U.S. with several in the Northwest.

In all steel casting, a variety of minerals and sands are used to coat the molds, which affect the cooling process and finish of the steel. Chromite has superior thermal qualities slowing the cooling process which reduces cracks in the mold, giving the finished product more strength and a smoother finish.

Canada and the U.S. are net importers of the majority of their annual requirements for foundry chromite. The U.S. currently has no domestic chromite production.

Garnet
Garnet is an excellent emerging product as an environmentally favorable, silica-free, air abrasion medium. The main market for the Company's garnet will be the U.S. West Coast water jet market.

Water jet machines use very small volumes of water mixed with an abrasive (garnet, in most applications) and use specialized pumps that can generate pressure up to 50,000 pounds per square inch. It produces a laser like stream of high pressure material that can cut through steel, aluminum, etc.

The use of garnet in precision water jet cutting is increasing and the domestic U.S. market is expected increase for the next several years.

Zircon
Zircon is used in refractory bricks and as foundry sand due to its superior heat resistant characteristics (high melting point). It is typically used in specialized applications such as glass making; aluminum engine block casting and investment casting, e.g. golf club heads. Zircon is also suited for ceramic tile glazing. Its use as a molding sand for high-grade castings in the auto and aircraft industries continues to expand and the Coos Bay location provides excellent access to the large Asian zircon markets. Unlike other commodity and mineral products the price of zircon has remained firmer to slightly higher than 2008 prices.

High Iron / Ilmenite
Based on testing by a leading manufacturer of foundry products, the ORC High Iron Ilmenite product has been determined to have excellent properties in use as an additive for certain foundry applications due to its unique chemical and sizing grain structure. This ORC mineral can be a substitute for other minerals that are used in foundry applications.