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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Agree Foss, theoretically, any split, whether reverse or regular, "should" not make a difference, after all, it's simple math. A stock with a SP of $1 and 100,000,000 shares out, has a market cap of $100 million, pretty simple. If this company does a reverse split, 1 for 100, the new outstanding share balance will be 1 million. The SP "should" be $100 a share, giving it the same market capitalization ($100 mill) that it had the previous day........right? Yep.......kind of.

The only difference is why the split was done. Regular stock splits are done in times of massive growth where there is an abundence of investors trying to pile in. The same can't be said about a reverse split, it's the opposite, the stock has usually gone dry. Reverses are done in times of need and weakness (money has a funny way of smelling weakness), which is why 9 times out of 10 the stock continues to recede. Not always, but generally.

Long term, KWG, GNH, will be better off with a r/s, it brings real money back into a stock that otherwise wouldn't be touched with a ten foot pole. I really hate to harp on KWG all the time, because they are certainly poised to be an eventual player in the ROF, but does anyone honestly believe that big money is going to enter/finance with a share structure like theirs? NO, it won't happen, they'll force the r/s or walk, it happens all the time. He who has the money runs the show, period.

They can call it what they want, they can even call each new share a "super share", (wait, maybe they tried that already) but anyway it's dressed up, doesn't change what it is. It's sad, but it needs to happen, breaking the world record for shares outstanding isn't as cool as it sounds.

As for GNH, yeah, it might open at .30 cents............but, what will it close at:) and the next day, and the next, and the next?

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