There are two references for cash flows.

In the press release dated 13 Aug 08 Cash flow from operations for the three months ended 30 Jun08 was $483,953 compared to $4,927,357 in the previous quarter of 2008. The Company's cash flow from operations was negatively impacted in the second quarter of 2008 by declining nickel prices which fell 11.3% over the previous quarter. (p2)

Key Economic Trends

The cash settlement price of nickel on the LME averaged US$11.64 per pound for the second quarter of 2008, a decrease of 11.3% compared to the average of US $13.13 per pound realized by the Company in the first quarer of 2008. Management is of the view that the LME cash settlement price for nickel will fluctuate in the range of US$9 to US$15 for the remainder of 2008 with the longer term price remaining strong relative to the historical long-term average prices.

Cobalt US$45 during second period- rep 2.3% of concentrate value

Copper US$3.83 per lb during secnd period -representing 1.5% of the concentrate value.

Foreign exchange - average conversion during 2nd period was CDN$1.0101/US$

In the Financial Statement

On about page 5 is Consolidated Statements of Cash flows

We saw an increase of $614,538 during this quarter. See also note 17.

A good reference is Reading Financial Reports for dummies.

Chapter 8 is called The Statement of Cash Flows.

**************

Aside - In reading FNI statement - think this thought

"In view of the decline in nickel prices in recent weeks, the Company is examining all of its capital and operating budgets for the balace of 2008, with the intention of eliminating all non-essential items, curtailing expenditures and preserving operating cash margins. A number of operating scenarios are being examined, pending future metal market conditions."

Liberty is doing exactly the same thing. Mr Trevisiol, who is joining us Sep 2, "has demonstrated his ability as a leader to skillfully streamline operations and reduce operating costs while increasing the safety and health performance of the operations."