This commentary is not designed to be an exhaustive treatise. For details on many of the issues raised, it is recommended that the interested reader visit the websites of the individual organizations/associations referenced.

First, some facts:

· The mining industry is a global business.

· Ore deposits are found where they are found and their locations do not respect political boundaries.

· The expertise of Canadian mining and services companies is highly respected and sought after around the world.

· The average exploration cost for an economic base metal deposit in the Canadian shield area is of the order of $23+M. (Centre for Resource Studies, Queen’s U)

· An exploration expenditure of $67+M would be required to be 95% confident of at least one economic base metal discovery. (CRS, Queen’s U)

· Several studies conducted over the past 30 years indicate that for every 500 to 1,000 properties where core samples have been drilled, one mineral deposit with sufficient value to mine is discovered. Mineral exploration is perhaps the riskiest of business ventures. (Fraser Institute)

· The TSX is recognized as one of the premier exchanges in the world for raising capital for mining exploration and development projects.

· Ontario´s mining industry produced an estimated $10.7 billion worth of minerals in 2007 and that mining continues to be a pillar of our economy, sustaining some 100,000 direct and indirect jobs. (Ontario Mining Association)

· Canada ranks as one of the most stable jurisdictions from a political risk perspective. However, some foreign jurisdictions with questionable political stability, rank equally as high in their survey in the overall “composite policy and mineral potential” category. (Fraser Institute)

· Canadian companies who choose to conduct operations in foreign jurisdictions, or for that matter any jurisdiction, must abide by that entity’s laws.

· Junior exploration companies are now responsible for about 65% of total exploration and deposit appraisal expenditures in Canada. (Natural Resources Canada)

· 2007 Non-ferrous Exploration Budgets for the Top Ten Countries: Other Countries 31%, China 3%, South Africa 4%, Chile 4%, Brazil 3%, Peru 5%, Mexico 6%, Russia 6%, United States 7%, Australia 12%, Canada 19%. (Metals Economics Group, 2008)

· Canadian companies are a driving force in international mineral exploration. According to figures from Natural Resources Canada, in 2000 Canadian exploration companies were involved in more than 6,000 projects in over 100 countries around the world. Domestically, large Canadian companies accounted for approximately 70% of the exploration expenditures, or approximately $280 million of the total $400 million. Internationally, large Canadian companies spent several hundred million dollars on foreign projects, primarily in Latin America and the United States, but also the Asia Pacific region, Europe, the Former Soviet Republic and Africa.

· Canadian companies are operating more responsibly than ever before, and social and environmental policies developed in Canada are being adopted as world standards. (Natural Resources Canada)

· Of the 2,797 active mining projects carried on by TSX-listed mining companies in January 2005, 47% were outside of North America. (Fasken Martineau DuMoulin LLP)

· There are of the order of 1400 mining companies (all sizes) listed on the TSX.

· At the end of 2002, companies of all sizes listed on Canadian stock exchanges held interests in a portfolio of more than 6100 mineral properties, half located in Canada and half in more than 100 other countries around the world. Most of this portfolio consists of properties at the early stages of exploration. (Natural Resources Canada)

Foreign investment is a two-sided coin. Canadian companies invest abroad, and foreign companies invest in Canada. It is the duty and responsibility of the Boards of Directors to determine whether the rewards justify the risks for projects/opportunities identified. It is in the best interests of potential investors or shareholders to do their own due diligence. I think someone once said “an educated investor/consumer is the best investor/consumer” or something to that effect. For Canadian companies making off-shore investments, shareholders can benefit by their successes through repatriation of profits which can be dispersed through the issue of dividends and share price appreciation. Increased employment opportunities here and for Canadians abroad will flow. In addition, the standards of living of local employees and their families should theoretically improve. Links to Good Practice Guidelines for the Mineral Industry, established by mining industry associations, can be found on the PDAC website. On the other hand, foreign investment in the mining sector in Canada produces local employment opportunities, contributes towards purchases of Canadian goods and services and can generate Canadian corporate taxation revenue. The subject of foreign takeovers of Canadian natural resource companies is better left for another day.

An individual’s investment portfolio should ideally reflect his/her ability to absorb risk. A balanced, diversified portfolio is recommended by most financial analysts, as quite frankly, that probably captures the bulk of investors. Investors who “mortgage the farm” to only invest in highly speculative investments in “one horse” companies such as Crystallex are probably like the ones who when they visit a casino, pick a game, which everyone should know has the highest odds against them like roulette, and bet their entire pile of chips on one number. In either case, no one put a gun to their heads. That sure isn’t me and I expect most of you too!! With respect to McFaulds, a portfolio dominated by shares of NOT with the balance most of the other players is one which I believe will provide the best return in the long term.

I see no problem in investing in mining companies with foreign properties as long as you do your own due diligence. NOT has foreign properties, but having done my due diligence, it will remain a major holding in my portfolio for the long term.