Massive Black Horse Chromite Discovery

Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%

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Message: ROF road vs RR...Ding,Ding Round 2

Hey Ringer,

JMO but the only way to build a cost-effective road is to build it AFTER the RR on the N/S corridor; the road cannot be cost-effective by any stretch of the imagination if it is built first. The RR is the mode that has the CAPACITY to become the BACKBONE of developement as well as the on-going local and provincial economies.

The building of the road can be done by widening the esker (where it is too narrow) with untold numbers of railcar loads of aggregate, which will be available when the mine(s) are being developped and/or running.

The FNs need a productive local economy and a significant improvement in quality of life. This can only be achieved cost-effectively by the railroad initially. You can't keep shipping materials and goods, at obscene premium costs, and then expect an economy to gain some traction from it.

Canada on the other hand, needs the ROF to kickstart the Ont/Can economy which will be achieved by mining activity supported by RAIL to the ROF on the N/S ESKER. This is not a difficult concept to understand, but unfortunately our ONT Liberal Wynnies, have made very bad and ignorant decisions, based in conflicted and dishonest EGO Pursuits.

Now.....the only thing that is holding them back is the detour that they had to take in order to wiggle out of possible liability from Cliffs, hoping that the delay might solve it for them by bankrucpting KWG. ( "We'll just wait them out, and pretend that we are observing due diligence by saying: We have to get this RIGHT" )

Fortunately we have had Frank on our side. He has stuck to sound principles when it comes to building value and positioning KWG on a strong footing for the future.

For the non believers, here are a few things that I consider he has done right:

1. he has negotiated a number of very important deals, while avoiding the accumulation of debt. Yes we have suffered a lot of dilution but this has brought a great deal of potential value to the company while minimizing the long-term risk; he has avoided the wasting of time and asset value, by concentrating on the battles that offered meaning, consequemce and potential future value;

2. he has navigated through many obstacles and landmines, without ever using retaliatory actions which might have resulted in burning bridges and alienating potential future investors/cooperators; the most obvious example of many would be resisting the launching of lawsuits at a time when making friends was of utmost importance to the future of the company. It is my impression that he was confident enough in KWG's position, to let all the noise die down before making his point, including the Chinese option.

3. he has implemented phases of his plan in a definitive and very imaginative manner, while communicating material information to investors in a timely fashion. When we were all debating the possibilities, Frank has on a few occasions presented us with a "game changer" that no one foresaw.... that's one reason I'm still here. When I felt impatient to see results, I always remeinded myself that Frank was probably working on something significant.

4. he has used the leverage that KWG has in its assets and used it to create strong loyal partnerships and possible future exponential gains. (examples: 1.NSR sale which created a solid treasury for KWG, 2.patent agreement with metallurgist which created a partnership withoput debt, 3,extension agreement with Bold/Fancamp which preserved BH as a vluable asset to us without creating debt or a loss of value, 4.the agreements with the Chinese (Rail, and Golden Share) which again managed future risk while amortizing the trade of asset value against near future services)

5. he has strategically formulated the message to KWG's partners, investors, and the media in such a way as to keep all options open. When the RR was being talked down by the Ont. Gov./ Cliffs / Noront, Frank was able to present our plan B (slurry pipe) in a plausible and credible manner, and defend our future prospects, even though it is my impression that the RR was always the preferred option. Currently, the RR has resurfaced as the forunner with the involvement of the Chinese. Consequently, in last week's BNN interview, Frank presented the proverbial "coup de grace" with a high degree of confidence, while avoiding what could have been an "in your face" message. By doing so he has avoided antagonizing future investors and/or partners. I.m just glad that he is playing on my team and not "playing" against me.

6. he has maintained healthy and open communication channels with the FNs of the ROF which in itself will proove to be as valuable as "aggregate in a marshland" since it will lay the foundation (pun intended) for a long lasting relation of development, investment and partnership in years to come.

Sorry about the length of this text...I guess I'm making up for being silent so long. My original point was that RR is the only way to go and now.....we have the MEANS, the BARGAINING POSITION, the CONFLUENCE of events to make that happen and make the ROF development, a series of events that will affect the global base metals market. Yes, still lots of work ahead but now it seems that the table is titlted slightly in our favor.

Good luck to all KWG and ROF investors

Le Penseur

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