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: Pinetree Capital

My first instinct is to agree strenuously with you. However, on reflection, the charts on a lot of PNP's non-precious metal holdings look pretty ugly as does PNP's own chart. I really like what they are trying to do, but mining and exploration juniors are a pretty tough space right now. With no long term mining policy in Canada, provincial and federal finance bureaucrats in Canada may see the G20 stuff as a mandate to increase resource royalties and corp taxes given there is no realistic place to cut spending. Gravelle for example is a good person and competent growth promoter , but not one whom Finance Policy bureaucrats will take seriously if they are mandated to look for cash. There is a real danger that a lot of new base metal investment is going to get much greater scrutiny than in the past as investors look for more certainty. Its a big headwind for a multibillion dollar commitment.

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