I spoke with Bruce Hodgman at KWG this morning. He sounded up beat with enthusiasm over two feasability studies kWG wants to issue - one on the deposit and the other on the railway. He indicated that the closest esker to KWG's for the railway is at least 100 km west and that Cliffs would have to invest at least 2 billion dollars to develop it. KWG has already staked its rail line.

KWG is currently working with its Technical Committee developing an aggressive drilling program to update the NI43-101 valuation from an inferred resource to indicated and eventually to measured.

Again he stated that KWG's Board was unhappy with bid that Cliffs had earlier offered KWG and has set the bar at $.19 with a range of $.27 to $.33. He indicated that Cliffs' strategy with respect to Spider Resources is to force it to go as a privately held company at 90% ownership. Cliffs deadline on its tender of Spider shares is midnight tommorow.

Bruce Hodgman's toll free number is: (888) 642-3575. Please give him a call.

TC