KWG Longs,

Here is my thinking...

KWG issues flow-thru at 6 cents...investors buy since they are an effective tax strategy, especially at the end of the year as an alternative to loss sell offs and writing off capital loss.

I have participated in a number of KWG flow-thrus and if I recall correctly they are about 96%+ tax deductible.

KWG issues flow-thru at 6 cents and given the recent share price drop are able to buy back at 4.5 and 5 cents...gain for the company.

Based on my network and who I know that participated in the flow thru, the shares were issued to 'KWG friendly' investors that understand what is going on and are in it for the longer term gain and not the quick win that led to the lock-up that saw Spider sold to the bad guys.

As well, it doesn't hurt to have a little extra $1m in the bank for legal fees that may arise in the event of a takeover, legal action, easement hearings, etc.

All in my opinion and thinking of course.

All the best to all KWG Longs!

KD