Khareema & Sum Inc. End price?

...............:).

If there were little or no news over the next 6 months regarding further drill results, or infrastructure, I expected a lowball buyout in the 1.80 range.

The entrance of Baosteel as announced, changes the picture considerably. Until now the only big money showing any interest was CLF, who now control enough of the chrome to shut out any others (supposedly?). In that scenario, without further hits by Noront, there was not likely going to be any big push by a nickel miner to acquire what we have. On that basis CLF could sit back and wait us out. If we don't find anything more, they will get us for a song. If we do hit, then they have someone to help with the infrastructure costs.

Now that we have a deep pocketed partner, who owns 9.9%, can acquire another 10% in one year, who has a deep interest in our chrome, and is in a position to take it to market whether in cooperation with CLF or on their own, CLF's situation changes drastically. Remember that CLF has control of a tiny portion of the prospective area for chrome, and it is relatively easy to find. In the right situation, with proper support, Noront could easily prove up enough to put CLF's 100mt out of the running.

This deal has been cooking since before year end. Boasteel wanted the whole 19.9% now, but only got their 9.9%, with the rest coming in one year. That tells me that they could just be playing the spoiler here. They are here to raise the bar and force the final buyer to make their move.

The final end price is anyone's guess at the moment. The situation right now is perfect for them to drop the second bomb, and announce drill results. Without further hits with the drill bit, we are now looking at something in the 3-4 dollar range. One good hole there and we are back to where we will all be smiling big time.

One way or the other, it is going to happen in 2011.

Best regards

K