Kelsee, PM, JD, and other SPQ investors:

I have taken PM's project list (thanks PM) and had a look at the February 19th KWG NR, and the past NRs, and I've tried to match the wording with the projects. If the project list is complete, I will endeavour to chat with Neil at his earliest possible convenience to review these projects.

At present, I have written some notes (in bold) beside the projects in order to discuss them intelligently with Neil. The 33 1/3 dilution wording *** seems to be the most confusing. It seems to me that dilution is intended to free both SPQ & KWG to focus on specific projects of interest (McFayden for KWG & Kyle for SPQ).

However, (my opinion only having done some more reading) the Freewest Option project has no such dilution clause. It is strictly a 50/50 interest whereby SPQ & KWG must spend $2.2 mil (2008) to earn in 65% (Freewest having the other 35%). I may be wrong in this but I will clarify with Neil.

I should also note that I believe that the McFaulds Lake projects have UC Resources as the "operator". I can't remember what the percentages are for this project, but it's close to midnight, and I'll figure all of that out tomorrow.

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2 Project #1 Kyle Properties [SPQ IS PROJECT OPERATOR] (no expenditures at this time) 33 1/3 clause

3 Project #2 MacFadyen Property [KWG IS PROJECT OPERATOR] (possible bulk sampling expenditure) 33 1/3 clause

5 Project #3 McFaulds Lake VMS Properties [UC IS PROJECT OPERATOR?]

6 Project #4 Freewest Option Property [PROJECT OPERATOR SWITCHES YEARLY BETWEEN KWG & SPQ] 50/50 on $2 mil expenditure à earn in to 65% - 35% Freewest

7 Project #5 Diagnos Initiative Properties [PROJECT OPERATOR SWITCHES YEARLY BETWEEN KWG & SPQ] 50 SPQ / 50 KWG (no expenditures at this time)

8 Project #6 Wawa Diamond Property [SPQ IS PROJECT OPERATOR] 50 SPQ / 50 KWG (no expenditures at this time)

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Snug