Whaler,

Alot has happened since mid Aug.

We see since mid Aug we have seen the Ni price drop below $9.00US quite consistently. We also saw that McWatters was delayed from end July until this week. It is now on track and production is going to be adjusted to reflect required cash flow. (See last press release)

At the same time we saw the problems in the Financial Sector. Now as you watch sales - there are good size blocks of shares being sold.

In the Financial Posts there is talk of Hedge Funds "The next wave of failures in the growing U.S. economic crisis is likely to occur in the opaque hedge fund industry, which is facing mounting losses from interconnected contracts that failed or crippled such financial services businesses as Lehman Brothers Holdings Inc and AIG."

''At the heart of the losses is the largely unregulated and private market for credit default swaps, which are essentially a gamble on the ability of a corporation to repay its debt. The rapid growth of technical and actual defaults in recent weeks - including giant U.S. mortgage lenders Frannie Mae and Freddie Mac and Lehman Bros. - has created calls for collateral on these obligations far beyond the capability of many hedge funds to make good on them."

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Basically, what is happening is funds are having to make good on their cash. About 25% of our shareholder base is institutions. As shareholders have watched our stock being shorted since Last Oct, our own SH confidence has waned. Now, our base are those who are stepping in, after having sold or those still holding onto their stocks.

What we feel like here though is being felt and replicated throughout the whole junior mining sector.

When 911 occurred the market felt much the same turbulance. Lbe will survive. We as shareholders, need to step back. Those that can affort to are buying the shares available. For others, you have to think of this as another blip.