Been away for a few weeks. Just came back and saw the NR of 18 Aug 2014 about a $4-10M offering involving a mix of non-flow through and flow-through combine with wts. Here are some observations/comments.

1. Dilution: There will be some dilution. Generally speaking (I would leave the details for people with a good handle of accounting... which is beyond my skill), dilution would be of the order additional shares between 72M to 181M shares (using $0.055/s for a min of $4M and $10M). This is not taking into account of the potential 15% increase in subscription. These represent 9-18% dilution, which is not too bad for the money coming the treasury. It's worth pointing out that CLF stake is still at some 110Ms (~14% of current OS of 777Ms). At the max subscirption for $10M, the OS would be 950Ms CLF stake would drop to about 11%OS. I would say this is consistent with the strategy of reducing CLF influence (and beefing up the war chest). If I were Frank I would do the same thing to get out from under CLF's thumb. I would anticipate a wave of disapproval for this remark, but I would like to hear other option, noting that doing nothing is not an option.

2. What's the money for? There are 4 items on the list, two are wuld appear interesting

- Further development of the gas-powered process. This is as expected to shore up this potention cash cow.

- Drilling at Fishtrap Lake. This is a surprise, at least to me. Is this to find minerals (Ni, diamonds?) or just to strengthen CCC position on the claims along the RR corridor, or both? Just wondering, but for Frank the answer would be obvious if he was asked: both!

My reading: Frank is not going to roll over and play dead, hoping for the best. He's still kicking around.

goldhunter