RJ, Goodheart-r and All KWG Longs,

I truly do not wish to get into a back and forth. Each share that each of us bought with our own money comes with it a right to vote and I encourage all shareholders to perform their own due diligence and to make an informed and confident vote. I chose to read Management’s Resolution several times and retain a securities lawyer in making my decision given what I have at stake.

1. For clarity and correctness, Schedule D clearly provides for a vehicle for transferability between the two types of shares. Management references the brokerage house of KWG (Computershare) for transfer so I am not sure why we are hanging off what a customer service rep at CIBC said. The shares are transferable subject to any transfer costs that would be the accountability of the investor – it is clearly articulated in Schedule D.

2. From RJ: “We are at a low of .04 cents to .045 cents; do you realize what 50 to 1 will do to your holdings?”

Please read Schedule D of the Management Resolution – it will do nothing to your holdings. Your current holdings at .04-.045 will remain at the market price. The super shares will be in 50 share blocks consisting of the individual common shares (50 X .04 = $2.00) so your holdings will effectively remain unchanged.

3. From RJ: “This is a no brainer and all those who suddenly feel that Frank has a magical cure to boost the share price take heed”.

There is nothing magical about this proposal. It is within Canadian securities regulations and is quite thoughtful and creative in my opinion. The intent of this share structure is not to magically boost share price – given the constraints that institutional investors adhere to, it is a construct intended to allow institutional investors to invest thus providing our company with capital and could lead to share price appreciation.

4. Cliffs blocked it last year as they see KWG painting Cliffs into a corner. If KWG secures a route and infrastructure (from capital supplied by institutional investors), Cliffs is severely disadvantaged and will be forced to partner with KWG since the second golden rule of the commodities business is to have absolute control over your costs (especially shipping costs). Cliffs will not automatically do “what is bad for KWG”. Cliffs is a seasoned and experienced management team – they will merely do what is good for Cliffs.

5. From RJ: “Do you want to risk all your hard earned money you have invested in this stock on some , what I believe, hare-brained scheme?”

We are at or near our all-time low. Even if you do not fully understand management’s proposal, fully agree with it or are on the fence, at the very least - what is the downside/risk? Check out the number of shares that Frank and the management team own (it’s in the Management Resolution under Executive Compensation). If we lose from this, do the math on what Frank loses. In corporate Canada, if we have ever seen management’s interests aligned with those of shareholders through direct owner ship of shares – it is in the case of KWG.

6. From Goodheart-r: “The time to get a super share going is DEFINITELY AFTER these announcements” and from another post “Remember that the 50 to 1 super share may sometime in the future be a good idea but not now with so many pending decisions that will rise the share price”.

KWG has little control over their shareholder meeting as it is always held in the spring of each year. We are anticipating action in the ROF in the coming 12 months with all the developments you have kindly articulated. I believe management is proposing this resolution now as they are skillfully and thoughtfully preparing for the coming 12 months – in my opinion, there will not be another opportunity to do this. Schedule D clearly indicates that this may be something that management adopts in the future. In my opinion, turning to institutional investors with this resolution is a Plan C; if the New Deal falls through or ability to raise funds through a special railway flow-thru falls through, Frank will have this lever available to him. It is clear to me that we are dealing with a man that is focused on and committed to building a railway to the ROF and he is exploring and preparing for every possible opportunity available to get this done.

I truly enjoy the differing views and opinions that are emerging on this board as a result of this mangement proposal. It challeges our thinking and each other and I believe will result in more informed shareholder voting which can only have positive implications. Keep sharing all thoughts!

My best to all KWG Longs,

Keep Digging