Dear investors,

Whilst the NI43-101 is in my opinion vitally important to progressing the Lac Knife project, my research into the deposit leads to the conclusion that it is only a matter of time and that there will be no negative deviation from the non-compliant figures. I believe the issue could be how much 'upside' we may get from increased tonnage.

The sources to qualify the quality of the Lac Knife Graphite deposit and both varied and highly respectable:

Bonneau & Raby - Mazarin Report (1990):
The report is paid for only, but Mazarin kindly permitted the press publication of the following article. A very unusual thing for them to do if there were any inconsistencies or inaccuracies:

Mazarin are clear "Lac Knife has been successfully developed to a bankable level project not only by the reason of its high graphite content, high quality flakes, but also the width and continuation of mineralisation thoughout the ore-body"

http://www.focusmetals.ca/wp-content/upl...

Graftech (1991):
"Graftech Inc. today announced the completion of the first phase of a study to evaluate the technical and commercial feasibility of the Lac Knife graphite flake deposit in Quebec, Canada. The study results were favorable and demonstrate that the flake will meet the requirements for Graftech's manufacturing processes".

"The Lac Knife deposit is expected to be an excellent source of high-quality, low cost natural graphite flake for the manufacture of GRAFCELL(TM) advanced flexible graphite materials for flow field plates, a key component of proton exchange membraneA proton exchange membrane (PEM) is a semipermeable membrane generally made from ionomers and designed to conduct protons while being impermeable to gases such as oxygen or hydrogen fuel cells, as well as for eGRAF(TM) products for thermal management for computer and electronic applications".

http://www.thefreelibrary.com/Graftech+I...

BGS (1993):
Further support from the 1993 CJ Mitchell report from the British Geological Survey:

Appendix 6 states a post screening grade of 17.3% and a 50% recovery factor supporting the reported 1:1 mining yeild (graphite to waste ratio).

http://www.bgs.ac.uk/research/internatio...

The Governement of Quebec:
"The Knife Lake deposit is located 27 km SSW of Fermont. The host rocks are part of the deposit Gagnon Group, Lower Proterozoic age. These rock units are the metamorphic equivalents of graphitic schists Menihek Formation, Lower Proterozoic age. Graphitic zones are hosted in a quartz-biotite gneiss migmatized. They consist of thin flakes of graphite scattered. Gneiss, locally sheared, silicified and brecciated, contains an average of 5 to 10% of graphite and sulfides. Areas that contain more than 20% of graphite have a brecciated appearance. Few clusters and veins with silicified fuchsite are associated with ore zones. The holes drilled by Mazarin inc. Between 1988 and 1990, has outlined three main mineralized zones, with a total length of over 500 m, with a vertical depth of 125 m. Proven and inferred reserves of the deposit are estimated at 8.5 million metric tons to 16.7% graphitic carbon. Proved reserves are 3.52 million tonnes at 17.45% of graphitic carbon".

http://www.mrnf.gouv.qc.ca/mines/industr...

So we have what may be considered 'proven reserves' already 3.52mt of resource, inferred 8.1mt.

Top quality potential here and inspirational Management, a recipe for success imo.

Regards TeTsuo.