Very interesting to say the least...KWG is determined to receive fair value for their sgares of SPQ...our right to dissent can only be exercised once Cliffs owns 90% or more of the outstanding SPQ shares and tries to force the minority shareholders to accept the lst offered price. I say the last offered, because until they have 90%, their only recourse is to try to get us to sell with a higher offer. Once they reach 90%, they can try to force us but then we declare ourselves as dissenting shareholders and demand a fair value through the legal process.

KWG is convinced that: 1. Cliffs ultimately wants total control of the BT, BL and BD, 2. Cliffs aborted the valuation of KWG because it was going to reveal a higher value than they anticipated, 3. Both SPQ and KWG's respective true value is closer to the high twenties possibly 30+, 4.They will continue to drill in order to bring up the asset value, 5. The NSR and the RR are worth considerably more than Cliff is willing to attribute value to, 6. The more we hold out for a higher take-over price, the more the KWG SP will go up and consequently command a much higher buy out price.

After tonight at 2400hrs, Cliff's next move could be to upgrade the offer or to let us linger and make us beleive that they might withdraw the offer, on the chance that this will scare some more shareholders into selling on the open market. Conversely they are in a conflicted position because they are majority shareholders in KWG and defeat their own purpose if they do anything to force the KWG SP lower.

It wouldbe very interesting to find out if there are any dissentors among the SPQ BOD...I am convinced that not all BOD members were in agreeement with NN when he decided to tender his shares because he was too tired to continue.

KWG welcomes phone calls especially from shareholders who intend to dissent when the time comes...it gives them a better feel for how much support is out there...based on the number of shareholders that have untendered their shares, I would say that support is pretty strong...I intend to hold out until Cliffs comes back with a bid that nears or exceeds $.27 for SPQ and $.30 for KWG...it could takes weeks or months, but sometimes an investment in time speaks as loudly as an investment in $$$. Just my opinion...not meant as advice for any reader.

Good luck to all SPQ and KWG shareholders