On Page 106 of the Ni43-101 we see that the profit at $12.50 Ni is $78,282,841.

Ni is now $8.50

17.6.52 Sensitivity Analysis

A simplistic sensitivity analysis was performed to show the effects of changing nickel prices on NPV at various discount rates. Table 17-12 shows the NPV sensitivity analysis.

-----------------Discount Rate -

-----Ni Price /lb - -----2.5% ---- 5.0% - ---7.5%

1. US $10.00----29.9------27.5-------25.4
2. US $12.50-----49.9-----46.1--------42.8
3. US $15.25-----71.8-----66.7--------62.0

p 109

The resultant financial analysis was positive, and indicated a pre-tax cash flow of $53,930,000 based on $12.50 per pound of nicke. Financial results are positive to a break-even price of $5.50 per pound of nickel.

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Now these are numbers that Dr Nash gave me this evening.

At $8.50 Ni we make $22.6 million and we owe $16.3 million.

At $9.00 Ni we make $27.2 million

At $10.00 Ni we make $36.4 million

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Add to these figures the Redstone Mine Figures where we get about $300,000 to $400,000 a month.

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We are not rolling over. This mine is going to be. Even at $8.50 Ni we can make it. As far as our bank balance in the last financial statement goes you have to look at our A/Rec's too. Within days our bank account bounced back

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Constantly I see remarks about why build a mill when we did. At the time we started mining Redstone our ore was being turned away. We could have built a 500 tpd mill but that would never be economic so the mill was built that we could easily increase our throughput to 1500 tpd. We hired our staff so that we could have the staff when we needed them. Consider our exploration properties and what has been done. Anyway, for those that do their DD our price is a phenomenal value. Phone Dr Nash. He is always willing to answer your questions or go hear the questions and the answers that result.