HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: MASSIVES

Plugging the leaks to retail, IMO, was a participation requirement by the Investment Houses so that they could subsequently walk the PS down to just above the flow thru share level of $1.70 during a quiet time, say when NOT was on a road show. I do not believe they will let the PS go lower than where their clients loose advantage. However, they do need to mitigate their risk at participating at $2.80 and finding clients: ideally, they would like to make the delta between $2.80 and $1.70 on a short, before selling all the risk to their clients. They certainly cannot have retail getting wind by the rumour mill of what is really below Eagle1a and keeping the PS up.

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