Hey Kelsee

I am not negative on the stock at all. But we have all heard the stories about how something is just around the corner. Personally, I believe this to be the case as well. However, as part of my own due diligence, I look at things that could go counter to common hopes. It is not a bash, it is merely something that investors should be aware of. Ignoring these issues is unrealistic.

Fortunately, our buyout will not depend on the start of the mine, but Cliffs (or others) will be concerned with the feasibility of a mine, so indirectly, it is of concern to us. Obviously, Cliffs believes that a mine will work there, or they wouldn't have bought FWR.

I still contend that it will be at least two years before we see a mine there:

• For a mine to start, there must be a way to get the equipment in, and the ore out of there. I don't think that there will be an annual ice road into the site, since that is just an added cost on top of the necessity of building a railway eventually. 320km of rail through mosquito infested bog isn't going to be laid overnight.
• Currently, there isn't any hydro there, and hydro surplus isn't sufficient to support a mine without adding capacity.
• Yes, First Nations are interested in the employment benefits. However, something will have to be sorted out for compensation before the above can be undertaken.
• Environmental studies have yet to be started, and you can bet that there will be a lot of hot debate which could slow things down.

I will even offer rebuttal to my above arguments:

• An ice road will not suffice the FN for a permanent connection to the outside world. Governments have said that they have an interest in providing some link, and rail would provide a year round, multi-use means (similar to Moose Factory further east).
• Hydro sources will add jobs and won't be impossible to acquire. It can be run into the FN towns as well.
• I don't think that the FN will press very hard to secure what might be considered a 'greed' share. The economic benefits of employment will relieve many of the stress issues that these towns face.
• Setting up an open pit mine in a poorly drained bog region will be difficult. The environmentalists will point to the Alberta oilsands and say that such damage is unacceptable. And rightly so. However, the technology does exist, and as long as there is a high demand for the ROF minerals, miners will comply.