Good Evening NOT

Lets all take a step back, way back... the macro situation couldn't be worse... banks are teetering, auto's are in trouble, housing and new housing is done. I don't like to write this, but, the drivers of our economy, housing, autos, and easy money are done. A new paradigm is forming. I'm not sure what it is... here's my guess.

Take cover.... this sounds bizarre, but, have your freezer topped up, and your pantry full. Have a few months cash not trapped in the banks... have a few ounces of gold, or for that matter, more.... have an allocation of gold that fits the situation the world is in. Have a few extra bottles of scotch in the attic and a few flat's of "TNT beer" in case it get's really bad... it better be bad to drink that stuff.

This is not your run of the mill problem. Related to commodities... this will take time to get through the build that is occuring. I wish all the mines would shut down as easy as credit does... unfortunately, the end user will stop sooner then the commodity companies... what will happen when the bank and auto layoffs hit us... what happens to demand for goods, and for credit... correct, both fall off.

The deflationists will say all goods will fall, money will become more valuable... to some degree I will agree. Then they throw in the gold comment and state that none of the excess money thrown into the financial companies will affect inflation... come on.... stating it won't happen until banks start to lend... you might as well give hundreds of thousands to the every citizen and tell them they must hold it under the mattress for two years, at that point they can spend to their hearts content. It is not inflationary at the time, but, I will bet it will be. Fools.

I'm not saying the market doesn't need help... the ones who say gold will not do good in this environment are crazy. I'd rather be called a "gold bug" then a US dollar bug, which I suppose is the inverse. It might be ironic to start labelling those who "poo poo gold" US dollar bugs... wait a few years to smell that one.

Regarding NOT, as of mid week I understand they were around $12Million filled. Apperantly my wires were crossed last week when it was stated more clearly this would fill. I am not sure the outcome of the financing, but, I hope it fills. This is a dire, dire backdrop for any explorer to move into.... we need every dime they can give us.

The good news, NOT may get the rest of the ring for a song if things don't turn around soon. Just think, if NOT can't fill this "cheap" private placement, what are the explorers going to do- Good luck.

We need AT12 or Deep Eagle 1 (DEEP1, not to be confused with DE1 or Eagle 1.) to bare fruit... yet, above all, we will need the market to become optimistic in general, rather than pessimistic...I am not sure when that changes... likely not soon, hence the need to raise the money.

I don't mean to be so glum... I like NOT's chances... I don't like the financial situation the US banks have forced on the rest of us.... I hope someone, somewhere, is taking names of these crooks.

regards

cwallace