Laterite nickel ores are a surface formation deposit which is found in hot and wet tropical areas which is enriched in iron and aluminum and develops by intensive and long lasting weathering of the underlying parent rock. Nearly all kinds of rocks can be disintegrated by the action of high rainfall and high temperatures. The dripping rain water causes suspension of primary rock minerals and decreases easily soluble elements as sodium, potassium, calcium, and silicon. This gives rise to a residual concentration of more insoluble elements predominantly iron, aluminum and nickel.

Nickel is a rare element that is usually found with iron and is mined using open-mine pits, when
the ore is mined, the nickel has to be taken out of it.

Nickel Asia Corp. also has a 10% equity interest in Taganito HPAL Nickel Corporation (THNC) which operates the country’s second hydrometallurgical nickel processing plant. THNC’s HPAL plant currently operates at a capacity of 30,000 tonnes of contained nickel and 2,500 tonnes of contained cobalt per year in the form of a mixed nickel-cobalt sulfide. The Taganito mine of the Company’s subsidiary, TMC supplies all of the limonite ore for the plant.