Just to clarify the arrangements and the impact of them, here is a bit of an explanation that might be helpful.

Wildcat has the option of retaining a 35% interest in the property after Marum has spent $4 million in exploration on the property. Wildcat does not pay anything for the 35% but would pay its pro rata share of exploration costs going forward. If and when Wildcat elects to retain the 35% interest, a joint venture is to be formed on the basis of key terms that are contained in the option agreement. This deal allowed WEL to concentrate on other projects and brought cash to their treasury while advancing the Poundmaker project in which they can keep a significant interest if they like the results.

In this market some exploration companies will have difficulty meeting their option obligations and many may be forced to give up properties. At a time like this, Wildcat’s 100% ownership of its properties is an important factor for investors looking for companies that will emerge in a good position for recovery and growth. The only properties that WEL is acquiring by option is two claims which have modest work requirements south of the Jeep property.

NorthLion