Just to feed the discussion, I repost hereafter some comments I posted a few weeks ago regarding the DDI mystery... GLTA. BaBe.

DDI was just about to be distributed somewhere around Summer of 2008. But the surprisingly huge chromite results of FWR during the summer-fall 2008 changed the whole thing. Just recall:

May 16, 08 NR: "...KWG's Board of Directors has determined that the roll-over of the Company's diamond exploration property interests to its subsidiary Debuts Diamonds Inc, may be done in exchange for units issued from the subsidiary's treasury priced at $0.20 with each unit comprising one share and one warrant exercisable at $0.30 for one year. The rollover transaction, valued at approximately $9 million, was completed with effect on April 29th, 2008. It is anticipated that Debuts Diamonds will file its non-offering prospectus with regulatory authorities before mid-year."

August 28, 08 NR: "...KWG has received a receipt for filing of the preliminary prospectus of its subsidiary Debuts Diamonds Inc ... As previously published, KWG has transferred all of its diamond exploration interests to Debuts Diamonds Inc. in order to distribute their value to KWG's shareholders as a tax-free return of capital ...A dividend record date will be determined upon the receipt for a final prospectus being received..." AND A REVIVING AND CONTINUING INTEREST SHOWED IN DIAMONDS: ... "Processing of an additional 1170 kilograms of the MacFadyen Project's Good Friday kimberlite, has recovered 0.54 carats of diamonds suggesting an indicated diamond content of 46.15 carats per 100 tons ...The diamonds are white, transparent, clear and partly translucent, although some inclusions were noted... The color is a white translucent fragment with crystal faces showing 85% preservation ... It should be emphasized that the additional sample recently processed is also too small ... Nevertheless, the grades obtained both in 2007 and 2008 are sufficiently encouraging to warrant a first large bulk sample of a minimum of 10 tons. The value of the four diamonds that have been found to date has not yet been estimated..." (The very last words we heard about diamonds since then...)

September 15 08 (FWR) NR: "...A 46 metre-wide zone of massive chromite comprises part of the broader 100-metre wide zone of chromite mineralization in drill hole FWR-08-01..." (NB:100% FWR)

September 26, 08 NR: "... These recent KWG / Spider drill-hole intercepts are quite encouraging, particularly when they are considered along with the previously announced results on this JV property, in addition to the results announced by Noront on its two nearby chromite occurrences located to the SW, and also in addition the Freewest chromite occurrence to the NNE.

October 21, 08 NR: "... Overall, it was concluded that the ferrochrome product from the aforementioned testing provides a concentrate that is very close to meeting specifications for the largest consumers of chromite (ferrochrome), representing about 95% of the market. The material definitely qualifies for the foundry sand application, which represents about 3% of the market. It was noted that "With optimization of the gravity and flotation it should be possible to create a product suitable for approximately 98% of the world markets. In these two markets approximately 18.4 million tons of chromite were consumed in 2005."

A lot of news then, remember. Massive Chromite is the new talking in town! Cliffs is not far away. Maybe quietly around after the initial 2006 finding... And with that last results, they are perhaps overexcited!

But in the Summer and Fall of "08, Cliffs begins to be seriously interested. Lots of talks, visits, appraising... KWG would be a good Trojan Horse to get over there!!! And they're preparing their Massive Entry: while FWR is keeping very active, publishing many NRs in Nov-Dec, the attorneys are busy. Minerald fields gets in somewhere in dDecember, and in January 09, Bang!, shares and warrants and options and debentures are rushing! Before Spring Brake, Cliffs (tru its Oversea Holding), gets 19% of KWG. CCC is created shortly thereafter, and the railroad project. etc...

But, what happened to our DDI shares we were just about to get at the end of the 2008 Summer? Look at this singular NR, published out of nowhere, just a week after the Oct 21 2008 NR:

October 28, 08 NR: "... As previously published, KWG has transferred all of its diamond exploration interests to Debuts in order to facilitate delivery of their value to KWG's shareholders, possibly as a tax-free return of capital via a dividend of some or all of the shares of Debuts , however KWG has not yet made a final decision among its various possible business strategies for Debuts and a tax-free return of capital is not a certainty at this time.

In the event that KWG delivers a tax-free return of capital via a dividend of some or all of the shares of Debuts, KWG would apply to have the shares of Debuts listed on a recognized stock exchange to facilitate trading upon the expiry of any hold periods attaching to such shares. A dividend record date would be determined only after receipt of all necessary regulatory approvals."

Two single paragraphs. Period. Where is the enthusiasm of the August 28, 2008, NR ? What a contrast! Just give a look! So long DDI! Diamonds? What diamonds? Did we say diamonds?

All that to say that this nice move from Frank Smeenk towards his shareholders have been lost in transactions!

As I said on another board, KWG is now a two-headed corproation (CCC and DDI). CCC will go to Cliffs for cheap. DDI will probably be distributed to us, but with no cash to explore the diamonds and develop Victor. Peanuts.