Rastaman

Could someone please explain to me this "impairment of assets" as it relates to Redstone? Is Redstone written down only because it is currently uneconomic (due to current price of nickel)? If so, what happens if nickel goes back up to $10 per pound? Would you then write that asset back up?

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Impairment of assets is a material writedown on the carrying value of Redstone's resource based on current Ni prices and its considered profitability. (see p15 quote below)

I would assume if they decide to resume and reopen Redstone then the value could be adjusted upwards.

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Quotes re Impairment of Assets:

p8 Total Assets

The increased expenditures on mineral properties were offset by a $20,598,048 asset impairment charge related to the Redstone Mine operations.

p9 Mineral Properties and Deferred Exploration and Development Expenditures

During the three months ended September 30, 2008, the Company's management conducted a review of the operating performance of the Company's Redstone mine in light of recent changes to several key economic variales including the downturn in commodities prices and overall general economic slow-down. Based on this review the Company recorded an asset impairment charge of $20,598,048 during the nine months ended September 30, 2008 which was applied against the carrying value of the exploration and development expenditures and pre-production operating costs associated with this property. The asset impairment charge was offset by the continued exploration and development programs completed on the Redstone and McWatters properties.

p 15 Risks and Uncrtainties

Changes in future conditions could require material write-down's of the carrying values of mineral properties and deferred exploration and development expenditures.