I wanted to spend a little more time on my discussion today with Neil Novak, CEO of Spider Resources. However,

To answer your question: "Will I make a 50 bagger on SPQ in the next month or two?"

My answer: " How the f**k do I know?"

You're more than welcome to vent your spleen or cry crocodile tears over your investment in Spider Resources if you want. You're big boys and girls, and this is a democratic country. However, I was personally interested in finding out what the CEO was thinking. That's why I've phoned him. If you're not interested, sell.

(By the way, with SPQ at 11 cents I'm a way under water.)

1) My first question to Neil was "Where is Spider Resources going through 2011, What's in its future?"

Neil said he's thinking "big picture". Big Daddy is going to be part of a mine complex, and it has a bright future. The question that he and his BOD has is How to position Spider Resources for that future? They are strategizing for the future because they know that Spider Resources is about to change. This change will be forced upon them.

But they have a problem. Spider Resources is a penny stock. Large institutional investors don't look favorably on penny stocks. (Although smart day-traders do, and they are making good money. A nice bloated float.)

2) My second question was When will the 43-101 come out? Answer: In the very near future. He's hoping before the AGM. (He actually wanted it out by mid-April.) There is an independent qualified person writing the 43-101. Since chromite is not a common metal, it's taking more time. Furthermore, it has to be reviewed by all three JV partners. Bottom line: it's taking time.

An important point here (and it was made clear by Neil) is that Cliffs Natural Resources is privy to all of the numbers. However, it's also making its own independent evaluation. (This is a dangerous shark - IMHO.)

Neil believes that Big Daddy data is very significant. This data in the 43-101 "will attract the attention of major people" (Neil's words). "And Spider Resources has to be ready" (also his words).

Without prompting, Neil said he's worried about a "hostile takeover".

3) My third question was Have you had discussions with Cliffs? He didn't laugh. Read my lips, he was probably saying - HOSTILE TAKEOVER.

Some of my other questions:

4) What about the coincidental AGM dates for Spider and KWG? "A fluke", he replied. Spider Resources set its 2009 AGM a long time ago.

5) Can the consolidation ratio of 10:1 be changed before the AGM? I don't think he really answered the question. He was interested in making a couple of points. The ratio is not the point; the ability to shrink the number of outstanding shares and raising the "optics" of having a stronger share price between $1 and $2 - is the point. Remember the capitalization of the company doesn't change with a reverse split.

When I persisted with the r/s discussion, this when he said bluntly "We are not idiots!" He made it very clear that he's not interested in losing money. "We are also share holders."

6) I asked him about any discussions with the Government of Ontario and the First Nations. He said there were some initially after the government's announcement that they "were in". Spider Relations has very good relations with the First Nations whereas other ROF players do not.

Before I signed off my discussion with Neil, he wanted to emphasize one point:

Spider Resources is about to change. We need to be ready for it.

The optics are not good for Spider Resources. It's penny stock and institutional investors are not interested in it.

I will be voting my shares for the special resolution. Neil Novak and his BOD would then be able to implement the consolidation of shares if they chose to do so at whatever ratio they need. And as Neil put it, they might never even do it. But they would have the option.

Best I can do folks.

Snug