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Management made a choice over a year ago to switch McWatters from an open pitt deposit to pursue the high grade resource. I suspect that was partly from the fact that they saw the long term trend price of Ni and realized that they needed to change their plans. The price of Ni and the delays in getting McWatters have hurt us.

McAra in about 100,000 tons of .2% Ni (not Ni43-101) compliant. The resource is in 2 veins which has been defined. Last fall they had problems with the drill breaking and it had to wait until Spring. Before that, energies were being directed toward the mill and Redstone. Although Redstone is very rich it still does not provide enough ore to feed the mill. Ray township (which they are going to be drilling shortly ) could provide some complementary cobalt. Although lower grade, there is greater perceived tonnage. Together they may provide a size deposit that becomes more economical.

So Liberty has been stuck in a cycle of falling nickel prices, delays in getting McWatters going, poor economic climate.

We do have the resource, we are getting closer to McWatters being in pre-production and we listen to news of falling nickel prices. Stainless steel produces talk of putting less Ni in their stainless steel. They also talk of producers holding off purchasing Ni in the hope of seeing lower Ni prices yet. Our one saving grace is we are not producing much Ni concentrate at these prices and we hope Ni prices will recover.

In terms of the milling process, efficiencies are being worked on. They are working on the third ball mill. Tasks are being done so we will be ready to produce more ore. While our mill is not at full capacity, other revenue generating opportunities are being explored.

It is a known fact that your economies are better when you own your own mill. If our company is feeling the economic pinch - others are too. Our we an undervalued investment? Yes. When will other new investors come buying? I don't know. For every share sold there is a buyer. I was on Americanbull.com yesterday Liberty was shown as a buy. Right now it said that the sellers are coming down to the buyers price. In a months time things may look a whole bunch better. Things are progressing. We just have to wait. Hang in there guys.