I had occasion to speak to management recently and this is my understanding of events that took place at the AGM in Montreal;

I understand that Frank Smeenk and the Clliffs proxy agreed to amend the AGM agenda to leave the vote on the multi-voting conversion resolution until the end. Before the resolution was put before the meeting, Frank moved for an adjournment. The adjournment provides KWG management with an opportunity to solicit further proxies. If you do the math, this would dictate that if Cliffs supported the resolution, further proxies would probably not be needed.

I also understand that Frank said he originally proposed the conversion feature so that the resulting margin-ability might enable him and others to buy more shares. The proposed resolution amends the Quebec Articles. The continuation resolution, when subsequently acted on, would incorporate that amendment.

The amendments previously adopted let the adjourned meeting convene in Toronto and, as the KWG press release stated, many shareholders have wanted this for some time. One might assume that these shareholders may support the remaining amendment, since they have the opportunity to discuss it in detail on this forum or at the adjourned meeting in Toronto, on March 28.

irish