Just finished reading the MD&A and one item just popped out (page 16). It's the $6.2M KWG promised BOL, which could be paid in cash of by shares (correct me if I misread it).

- Option 1: Issue the shares assuming @ $0.05/s (could be higher) for some 120M shares to BOL. This would make the OS = 700 +120 = 820Ms, or for a dilution of 120/820 = ~15%

- Option 2: Raise the cash with some deep pocket and issue the shares to this entity. Some deep pocket may not be stingy about the share price, so for 120 Ms (a 15% stake of KWG) KWG may get more than $6.2M to pay BOL. One example is the Baosteel deal with NOT for Baosteel to get 9.9% of NOT. Baosteel may want to consider something like $0.10/s (?) if there is a potential for some additional benefits (KWG has the RR and Black Bird and Blackhorse can form a JV, and 30% of BD). This would provide extra cash for KWG treasury, and the package is large/decent enough for Baosteel to consider (deep pockets don't like spending their time on chump change items)

- In addtion, Baosteel may want to approach CLF (or it could be the other way around...Frank can be the facilitator) to buy CLF holdings in KWG (114Ms = 14%) for a total of 29%. If there is a desire to get 1/3 of KWG then Baosteel can up the ante a bit more. Perhaps 29% is just enough for some crutial votes, since management controls some 12% with the wts and opts... and KSU members are assumed to throw in their 10%...plus large share blocks from friendly entities.

Just some suggestions for pushing the activities in the RoF forward. Feel free to speculate.

goldhunter