Hi All,

Been back for ten days now and have seen my recent average buy of 3.51 drop to 3.05. Am I worried. Not in the least bit.

Why?

Have seen it before with NOT. Over and over again.

Ever wonder why it happens? Why this stock drops slowly over time on low volume and then shoots high on very high volume?

So do I.

I also wonder why this stock drops on every positive news release. In the early days it would take a bad NR to drop this stock. Like the famous "other 8" drill results in December 2006.

But we have had a nice steady stream of good news stories since then. And drops in price. This shows either manipulation of a stock that was over spec'd before news.

A look over the past year shows a large volume of Noront stock traded over $5. That was the price when Mr. Nemis and his advisors hit Bay Street to tell the story of DE and Windfall. Majors took notice and many bought. Those of us who were original holders may have bought a few more, but when you are used to paying between .20 - 1.07 for a stock in the months leading up to DE news, it is unlikely the regular NOT clan created even a tiny portion of that volume.

So we know we have a core of large money buyers. Whether institutions or large pockets, these people bought in on the long term potential. And like all institutions and large pockets, they likely did their DD as they are accountable to shareholders, employees, and their accountants (not to mention their wives).

I wonder if they gremise when they see the share price? Probably a little I reckon. But are they worried? Unlikely.

Why? They did their DD. They know the PMG and Nickel/Copper percentages coming out of the ground. Not has not even finished year one in the Double Eagle drilling story. Windfall took over five years to drill before starting the ramp (great news today on the progress of that BTW). So they are just getting started in mining years.

There are many reasons why the share price is bouncing. Maybe some manipulation. Maybe a lack of interest among majors as many are attracted to the Potash story at the moment.

So we have few buyers and few sellers. 130 million shares outstanding and a couple of hundred thousand shares trading each day. What is that? One tenth of one percent. And this assumes there are no crosses are occurring.

In financial terms, $500,000 shares trading on a company with a market cap of close to $400,000,000 dollars. The loss is market cap is only on paper. The liquidated value of the company is likely a lot higher, even with the 40M+ in the bank.

The only ones that will regret these lazy days of Noront share prices are those who sell hoping to catch the falling knife before it hits bottom. With what Noront has, the knife has always rebounded due to the nature of the rubber cord holding it. In this case, the cord are the strong hands.

Ever wonder why strong hands do not prop up the price like many of us would wish for? It is an easy answer. Cheaper PP shares down the road. Same with management (not to say this is the case at NOT but it can be at many companies). For them, cheaper option strike prices.

But Noront has enough money in the bank, millions of options in the executives pockets (many at .10 cents from way back) so the current price is likely due to low demand during a falling share price and scared hands/margins/stop loss triggers caused by those walking a thin line.

Demand and volume will return. The story will continue to unfold and be told. I am back in for the long haul as I believe a sale will occur at some point. At a minimum I want to see what happens when they hit zone NOT-06-100 with the ramp. For those who don't know, that is where they hit 1800 grams of gold per tonne over 4.8 metres feet in 2006. That is the equivalent of 52 ounces per tonne. An economic mine requires about 0.3 ounces per tonne over 4 metres to make a go of it. And this number was true when gold was at $350 an ounce.

But management is getting older compared to most juniors. It will take many years to see a production mine both at Windfall and at Double Eagle. Those with unlimited resources like a Tek Cominco or GoldCorp will be the best ones to take this forward long term. Once Windfall is done, I believe hang up the boots, go fishing everyday, and know that he found two big ones during the twilight of his career. He will also retire very rich.

The key now is establishing the correct value based on not only percentages coming out of the ground, but tonnage. Mining is all about grade, tonnage, and metal prices. We have two of the three going for us. The only question remaining is tonnage.

Until that happens, all we can do is wait.

M1.