A few things, you may or may not know about our KWG -

The recent heavy trading may be explained by shareholders who purchased in the vicinity of .12 to .15 cents and took a tax loss last year and are now re-entering KWG. Our share price last year in March was between .6 - .9 and then 3 things happened to propel us up to .15

1. We had an excellent PDAC, 2. we had great drill results with the 8 hole drill program and that led to our 43-101 in May. 3. Ontario Premier McGuinty started really getting onboard with the ROF and started talking very positively about the ROF. Now the next PDAC is due in March, we have possibly excellent drill results that will come out very soon as the drilling program will be underway almost immediately and we have over 300k barrels of fuel on site and a camp all ready for the drill program and we have all politicians touting the ROF at every opportunity and if you have been following the political announcements, they always mention, Cliffs, Noront and KWG in that order. Ontario has an election coming up in October and the Liberals really want to sway the North over to their side and are trying desparately to get all of the ROF into the mix. We, along with Cliffs and Noront had extensive talks in December with top Govt. officials including the new ROF Co-ordinator as to the way forward for very quick results with the ROF. We expect excellent results with our PDAC involvement in Toronto in March.

We have had very serious talks with the Chinese, and you will recall that yesterday, Ottawa announced China is opening a big new trade office in Canada, an office several other Countres, including the USA tried unsuccessfully to secure only to see it go to Ontario. Remember Premier McGuinty led a trade delegation last Fall to China and speculation was that the ROF was probably one of the foremost topics discussed at those meetings. We have also talked to Japan, Korea, India, etc. about possible participation with KWG re our chromite. For your info, the US consumes about 17% of the worlds chromite and it is a strategic metal and very valuable in our economy. There are 2600 types of stainless steel and the amount of stainless in each varies between 8 to 25%. Our chromite is possibly the richest and best quality in the world. Finland chromite is 26% pure, ours is 40% and we could possibly sell our chromite to Finland, South Africa, or others to blend with theirs to give them a real advantage in using less power, time, etc. in the stainless steel process. So we could direct ship to them for this purpose. The consensus seems to be that Nakina would be the best location for a smelter and an announcement is expected very shortly of where it will locate.

Xstrada - our 2 ton sample sent to them for analyzing looks very promising and we should have the report back by approx. Feb. 1st, and don't forget, we can pre-sell up to 5 years anticipated production of our soon to 30% share of Big Daddy in advance of any actual mining if an interested multi-national comes on board.

KWG has $115 of tax losses and with anticipated large revenues, possibly as much as $210 mil per year, we could buy back stock and make the Company very attractive as an investment. Some have speculated that Cliffs will try and wait us out until next April when they become the operator of BD, but our possible $60 Mil expense to end up with 30% of BD would certainly be a bargain for us. Cliffs have already stated they are in pre-feasability re chrome production so they will certainly move forward asap rather than trying to drag this thing out and with the Ontario Govt. really onside and pushing this project forward because of the October election, many things will be ongoing in the next very short while.

The railroad, we have expended over $13 in the last 22 months and results should be out at any time.

In conclusion, our share price is way undervalued at this time and we all know it is only a question of when all things come together and when they do, we all will be the richer for it. Have a great week-end. Ron