All KWG Longs,

I have also been involved in the Ring of Fire since the Spider and Freewest days. I think it’s time for another one of those formidable run-ups in a stock price, don’t you? I also participated in the most recent private placement and added to my position. Sadly, I did not participate when the Chinese vice chairman and engineers visited Ontario. Maybe I talk too much.

I appreciate the timelines you shared and am encouraged by what may be before our company. Like you, I hope that in 5 months we have funding approval and KWG signs a railway, ferrochrome and/or off-take agreements.

The new class of Multiple Voting Shares WILL NOT in itself result in or cause dilution in anyway. I have provided direction to the pertinent and applicable sections of Management Information Circular on page 13-14 entitled “Subordinate Voting Share and Multiple Voting Share Convertibility and Exchange Rates”. In particular, the last sentence of this section reads:

“Accordingly, if the Capital Reorganization is completed and NO Subordinate Voting Shares (the common shares that you and I own) are converted into or exchanged for Multiple Voting Shares, the Subordinate Voting Shares (the common shares that you and I own) will represent 100% of the voting interest in the Corporation”.

What this says is that no Multiple Voting Share can be issued to any entity without a corresponding DECREASE in the subordinate voting class of shares (the ones that you and I currently own) at a rate of 300 shares for every 1 multiple voting share issued. For clarity and simplicity, If NO common shares are converted or exchanged for the new Multiple Voting Shares, then the common shares will be 100% of the voting shares for KWG. This is because NO NEW NET SHARES ARE BEING CREATED.

To substantiate your repeated claims, I kindly ask that you please direct me and others on this board to the pertinent section or sections of the Management Information Circular that provide management the ability to issue Multiple Voting Shares in isolation and independent from the subordinate voting shares (the ones that you and I own).

I don’t think receipt of a proposal triggers an obligation for management to disclose. I’m sure Frank receives numerous proposals on a regular basis. Proposals from other entities arise in the normal course of conducting business. If negotiations were underway and a letter of intent was signed then I would agree that disclosure would be in order.

I don’t think the proxy should be delayed in anyway. A government announcement is independent of what KWG is doing here. Frank is pursuing a private deal concerning a railway and a ferrochrome arrangement and has approached the First Nations directly with a partnership agreement. Any government announcement or support that furthers any of these initiatives would just be gravy at this point. Frank is taking the initiative and going this one on his own.

Bottom line is that Frank, the management of KWG and the Board of KWG feel we need this proposed Capital Reorganization approved at this AGM. They know what proposals are in hand, they who they are talking to and they know what may lie ahead for KWG in the near term far better than anyone. Frank is a very busy guy: working a billion dollar railway and ferrochrome deal with a Chinese state owned enterprise; pursuing a ferrochrome processing patent for the parts of the world where steel matters; securing a partnership deal with our First Nations; propping up Gravelle, updating Wynne on what’s going on in the Ring of Fire; consoling Al Coutts, etc. Frank wouldn’t endure the time, expense and effort to craft a Capital Reorganziation proposal to sit on a shelf. Here must be demand. Some entity or entities want this and it is good for the Ring of Fire, KWG Resources and KWG shareholders.

My Best to All KWG Longs,

Keep Digging