April 1st, 2012 is a critical date because of the existing JV that was initiated between Freewest, Spider and KWG, (noe Cliffs and KWG) with rotating operatorship on alternate years, turns into a partnership with shared rvenues on that date.

Cliffs would have to pay out 30% of revenues (Big Daddy Mine) which would amount to approx. $728mil to $1.120 bil per million tons of ore that is mined. Reportedly, the potential tonnage per year is between 1 million tons and possibly 3 million tons, which would represent $700mil to 1$bil per year in revenues for KWG, plus the 1% Net Smelter Royalty on all the Chromite in McFaulds area; this would be for the duration of the mining activities.

The assumption is that Cliffs will not allow this to happen because it would cost them too much over the long term. Therefore they have to move and take-over KWG before that date.

The second assumption is that bigger players than Cliffs are also watching this and posturing, which could lead to a bidding war or even an auction for the take-over of KWG.

Best of luck to all KWG longs,

LP