I received a pm asking me about the 2 valuations that were only on the KWG site for a few hours around July 1st, and I am posting part 1 now for your info-

Cormark securities - June 2nd KWG asked Cormark to provide an independent valuation of KWG. After Cliffs indicated it no longer required the valuation as was required when they wanted to takeover KWG/SPQ, KWG asked Cormark to complete the valuation.

Cormarks determination of KWG value included, Big Daddy chromite deposit with our 30% value as per committments required by KWG/SPQ, interest in other mineral deposits (Debut Diamonds),Railway Right of Way (Canada Chrome),Net Smelter Royalty Interest, balance of NSR purchase price the conclusion - The value of the common shares is between US $172 - US $240 million and this would equal C$ .22 - C$ .30 ( this would be based on the C$ at that time). KWG believes with SPQ's 30% interest in BD, other assets, primarily interests in Debut Diamonds assets worth between US $110 - US $160 million as well as net working capital of estimated US $18 million and after excercise of all Spider warrants & options would make a joint value of both KWG/SPQ of between US $300 - US $440 Million (C $315 - C $440 million) based on an exchange rate of .95 following completion of the joint agreement. The completion implies a value to Spider shareholders of between C $160 - C $223 Million or C .24 - C .34 per Spider share (based on Spider's fully diluted ownership of the combined company).

As you will recall, SPQ had fewer shares than KWG and that is why we were offering them a premium for the merger, so by SPQ selling out for a mere .19, they sure shot themselves in the foot with what they could have achieved with the KWG/SPQ merger. They could have realized in the vicinity of .30 which is over 33% that what they received.

I will post the Broad Oak valuation tomorrow and there are very interesting facts about the railroad on that valuation. Keep tuned. rj