11/16/10 Pierre Lassonde Interview on Kingworld:

(Pierre was President of Newmont Mining Corporation from 2002 to 2006 and prior to that from 1982 to 2002 was a co-founder and co-CEO of the original Franco-Nevada. )

· Fact that we are today (Tuesday) having a $25 down day is nothing alarming. On the downside if we were to see an average correction (based on 10 year average) could be 10 to possibly 20% correction – anywhere down $140 to $250 or so at the extreme but even then at the gold price this is very very substantial money for the miners. We should not panic but view this as an opportunity to get into this market and be part of it. It won’t stop for many years.

· From 2005 – 2008 miners cost structure went up rather significantly given energy costs. 20 – 25% of basic cost structure of operating mine is related to energy costs. They also use a lot of iron/copper which also went up significantly. Given a recent and possibly continued rise in commodity prices it could impact miners but they should still be able to have good and even rising margins given PM prices. This is something we need, however, to keep our eyes on.

· Thinks oil prices will be stable around $80 – $90. Labor costs should stay reasonable with all the unemployment so earnings for miners should be great for the next couple of years.

· The big and intermediate miners want to grow and exploration has not been great for them. That means they will need to make acquisitions with result that a number of companies will disappear every year.

· Asked about a company he is very involved with - Newgold and he said it is doing very well. All of its mines are operating on all cylinders. Stellar performance in 3rd quarter. 4th quarter is always the best of the year so we will just go from strength to strength. Cash flow should double. Should be in the future $14 - $17 stock which means that we can expect another stock price double over the next 18 mos. (Stock today around $8)

· Franco Nevada is doing unbelievably well. Just released 3rd quarter with record 91% operating profit margin, $650 million cash in the bank. Its price is fully tied to gold price. There is no other business like this in the world! Organic growth built in for the next 3 – 4 years with a Kinross gold mine. It’s a “gold ETF on steroids.”

· Olivut Resources (OLV or OLVRF) is his diamond play with him owning around 20%. He calls it “his diamond darling.” As an owner believes he will make 50X his money or lose half of it but believes the risk is on his side. They are going “for elephants.” Very tight budget – with only 31 million shares outstanding. Want to keep it a “family affair” until they hit the big lode.

· QE in US will impact gold price. While Euro has its own problems, come the day their debt cannot be rolled over, it will do the same thing as the US with printing more money.

· Bull market in gold is “very much alive.” Ultimate gold price will be dictated by how much money is printed which we do not yet know but in his mind gold market has at least another 5 years. Gold price will have 3 zeros with the 1st number he is not yet sure of. Does not think 1400 is it. Is it going to $2400, well $2300 is the gold price of $800 back in 1980 with inflation factored in. Could it be higher? Thinks so given what’s happening with China and its population (2 ½ billion population) being involved in the gold market which it was not in the 1970’s. Chinese government is encouraging its people to buy gold instead of US dollars. Therefore there is a likelihood of a substantially higher gold price than what we had in the 1980’s.