I spent about 30 minutes this afternoon chatting with Neil Novak. It was to my mind a very useful discussion which gives my a very good feeling about Spider Resources going forward into 2009.

Is this company a "slam dunk"? No. But read on to see whether you feel comfortable about investing your money in a "high risk, high reward" junior explorer.

The SPQ Board of Directors asked Neil to meet with IBK Capital to ask for some financing, some more flow-through funds. He met with IBK about a week ago. Neil's professional relationship with IBK reaches back quite a number of years, and IBK seems to believe strongly in Neil's vision for Spider Resources.

Here are the main points:

1) Today's financing is a flow-through (FT) financing which will not be used for drilling. This money will be used to prepare a 43-101 on the first Freewest Option drilling program finished at the end of October.

(There is no drilling going on at present by Spider Resources. The drill at the Freewest Option stopped at the end of October.)

2) The FT money will be spent on a 43-101 (based on the Freewest Option drilling), which will be prepared by an international firm with expertise in chromite. International geologist's fees, site visits, metallurgical work, administrative work, and a radiometer survey are part of the cost of this 43-101 preparation.

3) When the 43-101 is completed (probably in 2-4 months time) it will be used for a larger financing in 2009 to move Spider Resources forward. (Neil mentioned that he felt that the project on the Freewest Option has "real legs" - this is a quote.) Therein lies the reason for the 43-101.

4) Neil mentioned a radiometer survey. This survey will include ground geophysics, and will give a much clear view of the chromite ore body in the peridotite. This will make for much more accurate drilling.

5) When asked about the number of holes drilled on the Freewest Option, he mentioned that a total of 23 had been drilled with 15 into the chromite.

Although not necessary for the 43-101 (I asked him specifically on this - the company doesn't need a specific number of drill holes for a 43-101), he may use this info in the upcoming document. He is being very careful about any "resource estimate" coming from the drilling program. As we have seen previously with Noront Resources, the financial markets can hammer a stock even with good inferred, estimated, or whatever numbers you have.

6) Neil noted that IBK has given the new FT money "at a premium". IBK did not need to do this. By the way, the TSX Venture exchange normally does not allow financing under 5 cents. They have softened their requirements because of the difficult economic times being experienced by "juniors". IBK obviously knew about the TSX-V's rules, but gave SPQ the money at 5 cents anyway. Clearly Neil has a good working relationship with IBK.

So the long and short of it is Neil Novak believes the Freewest Option land "has legs". He wants a bigger financing in which the "big boys" (his term) will be interested. This is why he is focusing on an important international 43-101 document. (One other point, Neil is looking at 3 international firms who might do the work - I don't think he has chosen one yet.)

Finally, Neil also mentioned during our discussion that a small amount of money was spent during the summer on the Wawa project (diamonds). A press release will be coming out in the near future.

Snug