I'm having a hard time following your logic about the Cliffs take over of Freewest scenario.

"If they were successful.

This is what they would end up with.

Freewest 100%

Kwg 45%

Spq 25%

UC 45%"

I see that they would have 100% of Black Thor and Black Label and 50% of Big Daddy. They also have the 19.9% ownership of KWG. How are you arriving at 25% SPQ and 45% UC? Freewest has no ownership of KWG and they're not involved in the KWG/SPQ/UC JV of the McFaulds East and West claims.

If Cliffs was to buy out Freewest the logical assumption would be a takeover of KWG and SPQ also. They've (KWG) said all along that Canada Chrome was created to develop the chromite deposits. Do you remember how quickly after the PP with Cliffs that they announced the creation of Canada Chrome. I'm sure that came about from talks with Cliffs.

From their web site:

"What is Cliffs' corporate strategy? Over recent years, Cliffs has been executing a strategy designed to achieve scale in the mining industry and focused on serving the world’s largest and fastest growing steel markets. We expect to grow our business and presence as an international mining company by continuing to expand both geographically and through the minerals that we mine and market. Recent investments in Australia and Latin America, as well as acquisitions in minerals outside of iron ore, such as metallurgical coal, illustrate the execution of this strategy."

Mission Statement:

Cliffs will be a pre-eminent global producer and merchant of iron ore and other steel-related products. We will be known for our operational excellence, management expertise, and technological leadership.

We are dedicated to building value for our shareholders, partners, customers, and employees by:

• Increasing the competitiveness of our existing operations.
• Producing superior products, services, and innovative solutions for the steel industry.
• Providing a safe, challenging, and rewarding workplace.
• Extending the Cliffs franchise internationally.

We will conduct our business with fairness and integrity and the highest concern for environmental stewardship.

Excellence Goals

Achieve operational excellence as demonstrated by year-to-year cost reduction, highest product quality, predictability of operating results, superior safety performance, and technical achievement.

• Achieve commercial excellence by building our North American pellet market share, achieving the highest quality interface with our customers and partners, and maximizing product realizations.
• Achieve diversity by broadening the company’s base of products, customers and geographic market, including higher-value iron and other steel-related products.

Cliff's view on Partnerships:

"There are many ways to generate value. Improving cost and operational efficiencies, developing innovative technologies, and increasing shareholder returns are but a few. When two organizations have the same goals, and the right fit, such alliances can have a durable positive impact that builds value for both parties. Sometimes the best option is 100% ownership; at others, a partnership is the best choice.

Examples of how we have put this vision to work recently are our high-potential partnerships in the Amapá and Sonoma operations. With these alliances, Cliffs has gained not only good operational synergies, but also a growing international presence. Our partners, in turn, benefit from Cliffs' unique technological know-how and deep operational expertise."

Cliffs mines iron and coal to supply the steel industry. They would like to broaden their base of products to supply their customers (steel industry), so add chromite and possibly nickel. Would they be willing to spend what it would take to get Noront's Eagles Nest? I don't know that. My belief is that their primary interest is in the chromite and that the 3 above mentioned deposits will be large enough to meet their demand for many years. So.... does Cliffs want 100% ownership, or will they choose to be involved through a partnership? Thats the $64,000 question. Wish I could get a look at their playbook.

That's my opinion

SRV