Tomorrow is the final date that 2274659 Ontario Inc. (NOT) & The Minister of Northern Development & Mines have to file responding materials if they elect to do so with the Court of Appeal Re KWG/CCC Appeal of the decision of the Divisional Court last July in favour of 2274659 and MNDM. Some seem to think, if they fail to respond by June 29th, the matter is resolved in KWG favour, but I beg to differ. I feel this matter must be heard so KWG can rightfully win back our right of way affirmed by the Ontario Mining & Lands Commissioner in the Commissioner's ruling that the right of way belongs to KWG/CCC. All the date of June 29th means, in my estimation, is that NOT & MNDM can add additional info re their position to the Appeal Court if they so desire. As mentioned in KWG Press Release, the Court of Appeal will determine whether the Divisional Court erred in finding that KWG/CCC Consent to an easement over its claims should be dispensed with as the MLC has decided it should not be dispnsed with.

Without this ruling being overturned and the Easement given back to KWG/CCC we are in a much weaker position and this may be one of the reasons our shareprice is so low. With a substantial amount of shares being offered from .02 - .03, there does not seem to be a lot of confidence in our Company in the marketplace. Hopefully with our AGM two days away, some positive news may be forthcoming. rj