Just got off the phone with Neil Novak. Excellent discussion. Here is what I gleaned from it.

1) Implications for SPQ of KWG announcement.

Neil was aware of KWG's discussion with Cleveland-Cliff as far back as October 2008. It really has no direct implications for Spider Resources. Cleveland-Cliff has bought into KWG. They are obviously interested in the ROF from some of the assay results. Neil thinks that one of KWG's directors knows someone at Cleveland-Cliff.

There are many ways for a major to buy into the juniors at the ROF. Cleveland-Cliff has done it cheaply with options and potential warrants. It was in Neil's words, a "soft deal", which if it works out, will give Cleveland-Cliff 30% ownership in KWG - basically a takeover.

Neil really wasn't interested in any Cleveland-Cliff approach since he didn't know what was in the back of the mind. He didn't know what kind of "suitor" they intended to be e.g., JV partner, hostile takeover party, etc. So he didn't open Spider's books. This point is important for my second point below.

2) Micon and the chromite 43-101

Micon is working on the 43-101. Neil hopes to have it in his hands by the PDAC conference in early March.

Neil honestly believes that the Freewest Option project "has legs". But he is approaching it very differently from KWG. He wants an indepth review of the data already gleaned from the drilling on the Option. Using this data, he wants Micon to provide him with how he should "drill off" the chromite/PGE mineralization. This "drill off" would then provide him with much more comprehensive data allowing for a "resource definition" - indicated and inferred tonnages.

Once he has the 43-101, it will allow him to possibly do two things. One would be to go after more private placement money, or to approach multiple "majors" (including Cleveland-Cliff) who might be interested in this resource.

3) Spider Resources website

Neil said that he is working hard on updating the Spider Resources website. (He actually said that "he was somewhat remiss in doing this.") He wants it up-to-date very soon. Especially since PDAC is coming up. This is excellent news.

He's going to have some up-to-date maps, drill hole positioning on the maps (up to drill hole 23), plus (I think I'm correct) information on gravity and gradiometer readings. This is good news. (Once it's done, I suggest that some of you send him emails emphasizing the useful nature and importance of the changes.)

4) Conferences - Vancouver & PDAC

Neil won't be at the Vancouver conference. Other Noront people will be there. Spider Resources will, however, have a booth at the PDAC conference. He will be there. The booth will be manned by Jim Burns and Richard Hamelin. Make certain you get there to show interest and ask questions. Give them feedback on the new website. All of the BOD needs to know that we continue to watch and listen.

Hope all of this helps.

Snug