Babe,

Thanks for that.

- One quesion: I understand that CLF wanted the vote by ballots. What does that mean exactly. Must shareholders be presented at the next meeting in Toronto to personally cast the ballots. Is on-line voting by computers still an option?

Frank may want to keep us in mind and make sure that voting be done in a convenient way to get the most out of retail investors.

- Navel gazing: As of 9 Feb 2012, our share count was 74M shares (or 7.86% of fully dluted 853M shares). As of today, the share count is 75M (8.8% FD). If the OS were used then our percentage would be 75M/670M = 11.2%. Management?: If all options and wts were exercised then they hold 8.40%x853M/670M = 10.7% OS. The big assumption is the exercise of options and wts, but if they really want to pass their recommendation then put the money on the table. As I understand it, the exercise prices are in the order of $0.10 which could be achievable given the volatility of the SP (currently, nobody want to sell, hence the SP can be orchestrated (nicer word for manipulation) to stay low. For comparison, CLF would have 17.4%x853/670=22.2% (compared to a combined Management + us = 11.2 +10.7 = 21.9%...almost the same as CLF voting block).

From KWG website there are a lot of options (61M) and wts (197M) floating around. If they could be exercised and in friendly hands, then approximately there is a total of 258M (some of which that belongs to Management has been counted already...hence be careful not to double-count). The order of magnitude would be 258M/670M = 38%of current OS which must be adjusted to bring in the new shares, e.g 38 x 670/(670+258 =928) = 27%. Howerver, the other 2 blocks will need to be adjusted as well. Management+us: 21.9x670/928=15.8%; CLF: 22.2% x670/928=16%.

Subtotal: 15.8 +16 +27 = 58.8%

So where is that other 41.2% to tip the balance of the scale?

One scenario would be a turn out of only 58.8%, the CLF herself would control 16/58.8=27.2% (not quite 1/3).

Your turn to speculate and check my math.

goldhunter