KWG Longs,

My guess is that Cliffs does not appeal the decision:

1. History has shown that it is very rare for a superior court to overturn a decision of the Mining Commission;

2. I am wondering on what grounds they will launch an appeal as I found the Mining Commission’s decision quite detailed in terms of process and evidence;

3. This pushes out any resolution by 3-5 years which is clearly not in Cliff’s timetable given they are desperate to find a complimentary business as their iron ore pellet business shows continued weakness; and,

4. I suspect the Ontario Government actually thought that Cliffs was going to win the easement thereby completing a piece of the puzzle (along with the smelter) and leaving FNs and electricity rates as the only outstanding issues. From what I am hearing now, saying the word ‘Cliffs’ in the halls of Queen’s Park is about as a popular as a Bill Cosby sweater and that KWG is being more frequently mentioned.

Regardless of whether Cliffs appeals or not, nothing changes with respect to the KWG plan. The land is not a frozen asset and KWG is free to do what they want with it. An appeal does not bar KWG from pursuing their infrastructure interests. My guess is that KWG management does not wait for government and they continue to move to monetize their assets by pursuing infrastructure development through a partnership with a private party.

KD