Here Is The Stock That Will Make Us Rich

[lor]

dear d12,

Posted by: roos 2000 on October 17, 2008 03:32PM
In response to: Re: To All - rodg45 by Old Joe

i'm a big fan of your posts and way of thinking as a civilized investor
but not this time. although bringing reason into a fight like this is not a bad thing in general, i have to disagree on stressing that out right now, at this moment in this battle.
in my opinion, recognizing the collective anger that we all have and feel so compasionate about, the angst we feel about our investment and our mutual dd, at this particular moment in time unites us as a strong collective, and provides us with the right motivation to vote ourselves and to find that last shareholder we need to defeat our collective enemy.
even playing that anger, even feeding that anger to create a stronger collective is allowed and even nesecary in a battle like this, in my opinion.
on top of that, i happen to know that mr. nemis felt the knife that was sneaky planted in his back, and was seriously hurt by it, not only on a business level but also in his personal lif.
the fact that the hand of bruce durham, as a matter of fact one of his closest peers in the mcfaulds, was clearly involved and around the grip of that knife , planted with a fierce force from behind, has been an enourmous shock to him.
so if we as retail guys could just help to make mr. durhams obviously slow brain in this case more aware of what his deed created, i'm not holding back; i think he should know the impact of with whom he is hanging out and teaming up with, and in the end becoming less ignorant he might even appreciate our help.
and hitting these guys where they are sensitive, in their public image to the outside world, is another tool we as small retail guys have in our belt next to rallying our shareholder basis to become a force to reckon with.
so let's not hold back right now, let's use that anger, let's use that powerful image tool and let's get after these bastards that already did enough harm to ourselves, to our investment and to the future of our familes and children by shorting the stock for months in a row.
let's keep angry and motivated, let's keep looking for those forgotten share holders out there, and let's not hold back in our anger yet, till we get some kind of true sign of some common sense finally kicking in on the other side's slow and heavily preconditioned brains. showing that the other side has understood how determinded we are, and therefore has recognized and accepted our strength.
till then, let's keep angry and get these bastards.
and VOTE and make others VOTE
cheers roos

 

[WharfRat+]

Can someone please change the title of this thread to Lor's Copy and Paste Blagh.

When does the RX start to question the wasting of bandwith>

 

[lor]

Wharfrat, Why don't you stumblin back into your bottle of burgundy. No one is making you read this board. And if you don't have anything constructive to add to this thread, then shame on you for waisting bandwith.

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>from a/g board </TD><TD align=right>

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Open Letter to Mr. Irwin


Mr. Irwin, you said in your letter to Attention Business Editors “What Noront fails to mention is that from December 30th, 2005 through to Aurelian’s successful sale to Kinross Gold Corp, a transaction valued at $1.2 Billion in September 2008, that Aurelians share price appreciated 40 times. Rosseau would gladly accept the opportunity to experience similar returns on its investment in Noront and suspects other Noront shareholders would too.”


Mr. Irwin, that must be one of the most stupid statements put to paper that I have ever read. To put forth such drivel; to mislead people is unbelievable. What about the millions upon millions of shares that traded between January 2006 to January 2008 at dollar values far in excess of the sale price to Kinross. How did all of those people receive 40 times multiple? But to continue with your distorted logic, it could easily be said Noront gave their shareholders 70 times multiple over exactly the same period. $0.10 - $7.00. What you Mr. Irwin and Rosseau forgot to mention was that the Directors had options in the pennies in Aurelian, they were the lucky ones, the average shareholder was not. The Aurelian Board of Directors did a deal starting when gold prices were trading above $900 per ounce, not a great deal to sell for $1.2 billion except for the insiders and affiliates, Rosseau being one of. In order to achieve 40 times multiple, you would have had to have stock from 2005 to 2008 and never taken a profit until the bitter end. Neither you, nor most shareholders would have done this.


Mr. Irwin, you also state “we are determined to ensure that the success or failure of Noront going forward is determined by the quality of its properties and that Noront’s shareholder are not short changed by an inability to raise funds”. Mr. Irwin, the word failure lends me to believe you do not know anything about Noront properties and/or the ability of Richard Nemis to raise capital with these properties. Anybody can raise capital on these properties even in today’s markets.


Mr. Irwin, you also state “your nominees are independent” what you don’t say is that you have had financial dealings with all currently or in the past, independent, I think not.


Mr. Irwin, you further state that your selected slate “has experience in development, corporate governance, capital markets and accounting. Many of them, unlike the existing Noront directors have been part of successful mining companies”. Before you speak, you should do due diligence of whom you speak. Mr. Richard Nemis has been, through his family, involved in mining since the late 1950’s. Richard Nemis along with Noble Harbinson started and mined Consolidated Durham Mines in New Brunswick which was antimony until it was mined out. Again, with Mr. Harbinson, they started a junior mining company called Onaping Resources and was the first junior to obtain off shore licenses off the coast of Sable Island. Richard Nemis helped develop Moss Lake; Richard Nemis was part of the antimony discovery in Newfoundland “Roycefield”. Richard Nemis started a company called Central Crude with seed capital of $0.63 which found gas and oil wells in the US, sold them off, bought Eagle River, raised money and drilled and founded an ore body. The stock went well in excess of $10.00. This produced gold under the name of River Gold. So, Mr. Irwin, that was just Richard Nemis, if you wish, I could do the same scenario for John Harvey formerly President of Noranda Explorations, Hemlo Gold. Your slate of appointees pales in comparison to the Noront Board and management.


Mr. Irwin, I understand that Rosseau and Pinetree Capital are in cahoots and some of the criticisms of Richard Nemis is by way of Mr. Inwentash. Both of you believe the share price is reflective of his leadership. In that aspect, how can Mr. Inwentash make any accusations? With approximately 30 times multiple on the negative side for his Pinetree Capital stock, where is his expertise or how great is his thinking, when on December 4, 2006 an investigation was announced that Pinetree Capital, CEO was under trading investigation involving manipulation trading and insider trading, there might be something to the adage “when you lie with dogs…” and so on.


Mr. Irwin, you are indicating that you are not a minority shareholder, but in fact one of the largest shareholders. I hate to tell you but 9.2% = 11,943,880 shares. With a total issue of 129,824,783 shares outstanding, you are a minority shareholder. The public is far greater by 90.8%.


Mr. Irwin, the other day you were talking to a Noront shareholder in regards to how many shares you would be voting and you said that you were waiting on a call from France. Well, from this I deduce that someone could be Pierre Lassonde. I have tracked Mr. Lassonde’s history and held him in high regard. However, if in fact Mr. Lassonde is aware, then being part of this document and Mr. Lassonde knows the information put out by Rosseau in order to gain votes which is full of misleading and outright false information, then my respect for Mr. Lassonde has been destroyed. But, I suspect the only thing Mr. Lassonde knows is the half truths and falsehoods put out by Rosseau. I would suspect Mr. Lassonde would not know Richard Nemis if he should fall over him. I wonder if in fact he is aware of the people and their reputations he is allying with. If so, then shame on him.


Also, maybe Mr. Lassonde does not know that in the Rosseau proxy form accusing Richard Nemis of wasting money on Windfall Lake, that such statement besides being misleading, is false. In this regard, in December 2006, Noront raised $15 million for the sole purpose of expanding the Windfall project. At that time there was no McFaulds Lake project. Richard Nemis did the only ethical and moral and correct thing, he honoured his word and commitment to the shareholders and financiers. It appears obvious by Rosseau’s printed word and the verbal word spoken by Kingsdale that possible Rosseau group would not be so honourable, again, shame on you Mr. Irwin.


You state that Noront has diluted its property interests through option agreements. Firstly this being only your opinion, I would pose this question, how can this be any different than one of your hand picked slate, Mr. Bruce Durham, a supposed friend of Richard Nemis, continue to do exactly the same JV’s in the same area. How is this any different?


Mr. Irwin, I also notice you are being supported by Genuity. I suspect the OSC might want to look into the timing of their selling of shares and a negative report by Mr. Gray. A coincidence, I think not. Shades of Pinetree!!


Mr. Irwin, I also notice that Rosseau Limited Partnership needs guidance from a captain with intelligence and foresight. Three loosing years out of the last five is less than stellar performance. Is this the same guiding hand that you will be bringing to Noront? Actually, this quite possibly will be your greatest yearly loss ever. I think your ship needs a steady hand on the tiller and full focus ahead. Prove that you and your crew are worthy before you try to Pirate away Noront.


My suspicion for your current actions is possibly related to the fact that you and Pinetree are upset that you were forced to take down the warrants earlier this year and/or lose them. I would have thought grown men would read the Contract before they signed on the dotted line. If that was the problem, then there seems to be some business acumen missing. Would Richard Nemis have had a problem with his shareholders if he had not lived up to the spirit of the agreement? I am sure he would have been the subject of a shareholder suit.


A very concerned shareholder


Cc OSC (Investigations)

Pinetree Capital (Sheldon Inwentash)

Rosseau Asset Management (W. Irwin)

Sprott Securities

Mr. McEwen

Mr. P. Lassonde

Genuity Capital (Mr. Gray

 

[lor]

<TABLE width="100%"><TBODY><TR><TD> Monday morning thoughts from TC</TD><TD align=right>

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Good morning. Overseas on the major Asian indices we have the Hang Seng up 5.28% and the Nikkei up 3.59% this morning. China reported that economic growth slowed to 9.0 percent in the third quarter, dragged down by the global credit crisis and a weak property sector, leaving the economy on course for its first year of single-digit expansion since 2002. The fall in annual gross domestic product growth from 10.1 percent in the second quarter, confirmed that China cannot decouple from struggling world economy and reinforced expectations that the government will soon further ease monetary and fiscal policy. In Japan the Nikkei was led higher by the export stocks, because of the weaker yen.

In Europe the major indices have opened sharply higher this morning, up in the 2% range as I type todays thoughts. European shares are being led higher as commodity stocks track higher crude and metal prices and investors bought financial shares in the hope that the banking sector crisis may ease. European Central Bank President Jean-Claude Trichet pledged on the weekend, to do whatever it takes to restore confidence to financial markets. The ECB is working very closely with the U.S. Federal Reserve to solve the financial crisis. There are signs of Libor easing a little bit, particularly in U.S. dollars. The expectation is to see a strong fall in U.S. dollar Libor rates today, which is helping banking stocks. The interbank cost of borrowing dollars fell again in Europe today and dollar and euro interest rate swap spreads are narrowing, as dealers said banks were lending dollars to European banks rather than simply hoarding cash.

U.S. stock futures are pointing to a higher opening on Wall Street today, tracking a rally in Asia and Europe as investors are bullish due to the additional measures by governments to tackle the global credit crisis. There is nothing on the economic calendar today so the focus in the US, will be on earnings, as investors look for more clues on the extent of the damage, from the credit crisis on the real economy. Higher commodity prices should bode well for the Canadian indices today.

Back in McFaulds Lake, NOT had a dismal day on Friday, closing down $.02, on extremely low volume. NOT is currently trading in a sideways consolidation pattern, waiting for direction. It appears investors are content to sit on their current positions waiting for this proxy battle to play itself out. This should be the week NOT breaks hard in one direction or the other. My guess is we either see new 52 week lows or NOT breaks out to test the $2 range around it's 50(MA). For today NOT has support at $1.13 and resistance at $1.27, with the 13(MA) at $1.20, this should be the week that NOT finally jumps over its 13(MA) and then it will turn into support, after almost 3 months as being the resistance. The reason my bet is that NOT breaks out on the upside, is the promised good news from Nemis. For all his faults, Nemis usually delivers, when he makes promises to his retail faithful. Honestly I believe if Nemis spent as much time keeping the institutional players in the loop, as he does with his small fry retail investors, he wouldn't be in this proxy battle mess. It is wonderful to be idolized by your permabull faithful, but its the big money of the institutional players, that ultimately decide the direction of your share price.

Nemis's permabull faithful are all trapped in his stock from much higher prices, with no more money to put into his stock. The big money of the institutional players is sitting on the sidelines with cash, putting the squeeze on the little retail players. Once enough of the retail players have puked up their shares and have been accumulated by the institutional players, at these ridiculously low prices, they will be more than happy to let the stock run up again. They have already played this game twice with the retail guys, letting the stock run up to over $7 as the permabulls think the stock is going to the moon and greedily buy up the institutions shares at inflated prices. Once they have unloaded all their shares to the retail guys, the buying pressure stops, the share price does the slow bleed and slowly the retail guys puke up their shares again. The institutions throw on the shorts to accelerate the downward selling pressure and the game repeats itself. Once enough of the retail players catch on to the game and start taking profits off the table, NOT will find it's true trading trading range and the institutions will move on to the next speculative cult stock. One need not look any further than the Agoracom NOT board, to see the cult like following that NOT enjoys. The one sided view allowed by the Agoracom NOT permabull site, becomes it's own worst enemy. They do all hard work digging up the fundamental DD for the institutional players. The institutional players know it, can see it, by reading the sentiment of the permabulls on Agoracom, and play them like a fine tuned fiddle. JMHO

FWR released their promised news on Friday. More visuals from drilling on their spectacular Black Thor chromite zone. You have to admit these guys have discovered a monster when it comes to chromite discoveries. However the market presently could care less about chrome and the share price was evidence of it. The market once again just yawned from this chromite news release. With chromite being such a non event for these McFaulds Lake stocks, spending hard to come by exploration dollars, drilling these discoveries, looks like the wrong thing to do, to me at least. Until the market gives some sort of valuation for chrome, stocks like NOT and FWR should stop drilling these targets immediately. Why waste drilling dollars, if it is not going to improve your market cap, no matter what kind of drill results they come up with? At some point the market may give some valuation for chromite, but until it does, investors should start avoiding the stocks that continue to waste money drilling for it. Hopefully FWR comes to it senses on this issue, before investors start throwing in the towel, because of it. JMHO

What investors seemed to have missed from FWR's news release on Friday, was the visuals on drilling from the F2 anomoly. The 28.8 metres of sulphides intersected on their first drill hole on this anomoly is nothing to take lightly. I realize we will have to wait to the assays come back, but this type of mineralized magmatic massive sulphides FWR pulled up on their very first drill hole, is the type of mineralization associated with nickel-copper-platinum group element discoveries. I think FWR's share price will respond to this discovery this week. FWR plans to keep drilling on their nickel-copper targets right up until the Christmas break. We are going to hear a lot more from FWR over the next couple of months. At current share prices of $.205, investors looking for a high reward play, with limited downside risk, could/should do very well with FWR, is my take on this stock.

FNC's share price continues to trade all over the map. The low volume of shares traded and the huge spreads between the bids and the asks, make this a hard stock for the short term investors to play. However at current share price levels there is the possibility for some good upside potential if FNC does come up with something of significance with its current drilling program. MineralFields Group recently did a financing with FNC at $.50 a flow-through share. The sale was for 3 million shares and raised $1.5 million to enable FNC to drill it's McFaulds Lake property. Each FT Unit consists of one flow-through common share and one-half of one non flow-through share purchase warrant. Each whole Warrant is exercisable at a price of $0.75 per share until September 30, 2010, subject to earlier forced acceleration in the event the Company's shares close at a price of $1.00 per share or more for 30 consecutive trading days after the four month hold expires. The flow-through shares are subject to a four month hold period expiring on January 10, 2009. Ever since the MineralFields Group got involved with doing a financing with FNC, at a time when raising money for these junior exploration mining stocks is extremely difficult, my bias on this stock changed. Originally after the first visuals were reported I thought FNC was dead in the water, however this financing changed my outlook considerably, I doubt this financing was done without MineralFields knowing a little more than the average retail investor. We should be getting assay results back from some of the core sent in from Hole #2 early this week. All the right indicator minerals were found when they pulled up the core from this hole, it just appears there was very little visual nickel-copper content, this doesn't mean that platinum-palladium wasn't there however. I think we are going to find that Hole #2 and the surrounding area is going to be the company maker or breaker with FNC. My bet is they will come back to this hole and if the nickel copper motherlode is going to be discovered on FNC's property, it will be in this area. From everything I have heard from investors that have spoken to Peter Smith, he is still very positive they are going to find the needle in the proverbial haystack, somewhere in the vicinity where Hole #2 was drilled. On this expectation, I started a position in FNC last week with a $.345 average. Time will tell if I made the right decision.

For disclosure purposes I would like to add, I took a position in FWR last week at $.20, for the first time in months. I also took a position in FNC at a $.345 average entry price. It is always easier for me to cover these area play stocks when I don't have a position in them, because I feel uncomfortable that others will feel I am pumping a stock that I have ownership in. Please do your own DD and remember the opinions I express are just that, my opinions. They are opinions, not fact. I would also like to make clear, that other than NOT, I do not take long term positions in the area plays in McFaulds Lake. I play them, but take profits off the table, when and if, the opportunity affords itself. When I sell these area play stocks, it doesn't mean I no longer like the stocks, it merely means they hit my short term target and I take my money off of the table. I know this way of playing offends some investors, but it is just my way of investing. The reason I am publicly saying this, is to try and avoid some of the hate mail PM's of the past. If a stock continues to go up after I sell it, I don't need a PM to tell me how stupid I was for selling your favourite stock. It is just my way of leaving the big monetary gains for you.

Best of luck to all McFaulds Lake investors.



Al

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Tuesday morning thoughts</TD><TD align=right>

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Good morning. Overseas on the major Asian indices this morning the Hang Seng in China is down 1.84% and the Nikkei in Japan is up 3.34%. Asian stocks are getting a boost from signs that government efforts to push down short-term lending rates were working and comments by Federal Reserve Chairman Ben Bernanke backing more fiscal spending to support the U.S. economy. Japan signalled a willingness to broaden its bank bailout scheme to the country's biggest banks on Tuesday in a bid to fend off fallout from the global credit crisis. The Hang Seng index fell overnight when one of China's largest state-owned financial firms issued a surprise warning of potential foreign exchange-related losses of nearly $2 billion. The $US dollar's strength against major currencies, despite the rise in stocks and worries of another stimulus aggravating the budget deficit, shows demand remains strong to use the dollar to settle finance needs. In Europe the major indices are basically flat, after opening higher. There appears to be some profit taking after two sessions of good overall gains. Select stocks in the miners, oils and financials are doing very well, but there is no one sector showing enough strength to lead the indices higher. There is nothing of importance on the economic calendar, so all eyes will be on quarterly earnings to give the market direction. The early futures numbers are pointing to a down opening for the US indices.

Back in McFaulds Lake, NOT had a blah day even though it was up 4% on the day, the volume is showing lack of interest, as everyone waits for direction from the proxy battle. The good news is NOT has had a close atop it's 13(MA) finally, which is at $1.20. If NOT can trade above it's 13(MA) today and hold it as support, perhaps this long downtrend can come to an end. For today we have support at $1.15 and resistance at $1.33, however for me the real key is to trade above that 13(MA) at $1.20 for today and turn it into real support. RBC is still showing signs of trying to hold NOT's share price down, so it will take some additional volume, most likely in the way of a news release to overcome these guys. It almost appears RBC is holding the stock down for a financing, but with all the money currently in NOT's treasury, that theory doesn't appear to make much sense. Perhaps it has something to do with the Nemis versus Rosseau proxy battle. The AGM is now only one week away, it will be nice to get this proxy battle behind us and finally move on to the real issue, what NOT is discovering with the drill bit.

Early last week Nemis had told some of his faithful, to expect some good news this week, to support the share price. We have heard NOT has been back drilling the Eagle One deposit, trying to expand the resource estimate. From back when the 43-101 was released, Nemis had told us the Eagle One deposit was open to the south and at depth. It sure would be nice to get some assays again with Hole #5 like numbers, this would be the kind of news to perk up investors interest again. I once heard a theory that under some of these near surface deposits like Eagle One, that it is possible, the real motherlode, with the big tonnage part of the discovery, can be sitting. I know Nemis has said the deposit is open at depth and I have never really understood why they haven't tested this deep down theory. From all the possibilities of good news that NOT could release, I think a deep down, under current Eagle One discovery, would be the one piece of good news that would grab investors attention again. Perhaps Nemis and team, have been doing some deep drilling under the current Eagle One deposit and this is the good news that he has been promising investors? Stay tuned, I have heard rumours we may be getting news from NOT as early as today.

FNC's share price continues to be volatile as evidenced by yesterdays 12% loss. The spread between the bids and asks are so wide, the last trade of the day is the difference between being down 10% for the day or up 10%. However, today is expected to be judgement day, as Peter Smith has been quoted as saying there will be assays released today, from the lab samples sent in from Holes #1 and #2. From what we were told in a past news release, don't expect huge intercepts to be announced, as they just sent in small core samples to see what was in these drill holes. The real news will be the kinds of assay grades that are released. Yesterday FNC finally released that the last of the previously announced PP was closed. At a time when financing is very difficult for the junior mining stocks, FNC coming up with financing is a bit of a surprise. Obviously someone knows something, or at least think they do. I'm very interested to see the kinds of assay values that are released from these previous drill holes. If the assay values are as good as I suspect they just might be, I will assume, that FNC may cease drilling in other locations and return to drilling in the vicinity of Hole #2 again. I think Peter Smith was surprised he didn't come up with visual nickel-copper in the core samples from earlier core samples from Hole #2 drilling, but the indicator minerals were supposedly all there. Perhaps they just missed the sweet spot, reason I think they will come back to this location and see if they can pin point, if the motherlode, is somewhere in this vicinity. From talking to people that have been in contact with Peter Smith, they all say Smithy is still very excited about his possibilities on this anomoly. I think the story of FNC, is a long ways from being over. If assay values are decent today, we just might be in the early chapters of this story. However, until we see some confirmation with assay values, investing in FNC is very risky at this time. This is still a lottery ticket play and as such, placing a small bet with the realization that this is an all or nothing play is the best way to look at FNC.

FWR's share price was down over 7% yesterday, in what can best be described as very strange trading. RBC was unloading stock all day, but in very small lot sizes of 500 shares at a time. It appeared Anonymous was more than happy to be buying up the shares, but to be buying up 500 shares at a time, every minute, on the minute, appeared to be a strange way of trading. I expect that it was some sort of computerized trading that occurred and perhaps the buyer was none other than RBC itself, under the disguise of Anonymous. I took a look at the early level 2 market depth this morning and it appears we can expect much the same today. It is possible someone is throwing in the towel and unloading a large position from a previous PP, but what a weird way of doing it. The good news I suppose is someone has been absorbing these shares, but it has sure put a lid on FWR's share price for the time being. With FWR drilling for nickel currently and the good news that their first drill hole came back positive, I find who ever waited until this time, to sell off their position, to be very strange timing. Stay tuned, this bizzare trading will make sense at some point....I think. Remembering back a few weeks ago, when Genuity was selling off their 250,000 shares of NOT, they unloaded their position, much the same way that is occurring with FWR presently. When Genuity was finished unloading their position in NOT, the share price did the sudden jump up in value. Perhaps the same thing will happen once RBC is finished selling their FWR shares.

It has become evident from reading the @SCREWED board on TradingChief that some people are sitting on some very large losses with their McFaulds Lake stocks. The best advice I can give people is to learn some techniques on how to avoid ending up being a bagholder in the future. We can also try and help on ways to get out of your current mess. So with this in mind, the TradingChief site is offering 7 day free trials, to come and take a closer look at what the site has to offer. We have chat rooms during trading hours, where you can ask questions and talk to other investors. Hopefully you can learn some ways to protect your investing dollars. If you are tired of watching your hard earned investment dollars going down the drain, please take advantage of this 7 day free trial and get yourself back on track. The opportunity for help is there, it is up to you to take the first step and take advantage of it. JMHO

Best of luck to all McFaulds Lake investors.




Al

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Wednesday morning thoughts from TC</TD><TD align=right>

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Good morning. Overseas the major indices in Asia are in blood in the streets mode again today. The Hang Seng is down 5.15% and the Nikkei is down 6.79%. Asian stocks have now slumped to 4 year lows as poor US corporate results and falling commodity prices are fanning worries of a protracted global economic slowdown. The U.S. dollar surged to a two-year high against a basket of currencies on expectations that central banks around the world will react to slowing growth in their economies by catching up to this year's deep interest rate cuts by the Federal Reserve. In Europe we have much the same as Asia with the major indices all down in the 4% to 5% range. Commodity and financial stocks are under heavy selling pressure, with investors worrying about metal demand and more soured loans. On the economic calendar for today we have the Crude Inventories numbers at 10:35am. The futures are pointing to a sharply lower open for the US indices this morning. Lower commodity prices and weak financial sector stocks does not bode well for the Canadian indices.

Back in McFaulds Lake, NOT had a terrible day yesterday. Nemis finally delivered what I think he thought was the good news he had been telling his supporters was coming. Actually the Economic Assessment study was very well done, but investors realize that this plan is years away from ever being enacted, so it is much to do about nothing in the short term for NOT. Looking at NOT's chart we have support at $.94 and resistance at $1.28 for today. Yesterday NOT failed to hold the support of it's 13(MA) once again. Now the 13(MA) at $1.16 will turn into resistance once again. NOT's sell off had more to do with overall weaker indices than anything else as evidenced by the low volume yesterday once again. There is just a complete lack of buyers in junior mining stocks. Toss in a proxy battle which is causing some indecision with NOT shareholders, with a general market selloff and you have a stock looking at testing recent lows.

After the market closed yesterday NOT finally released news about it's Windfall project. The bad news for investors is the decision by management the Windfall Lake property, including camp and ramp facilities will be kept on a care and maintenance basis during the forthcoming winter months. It appears they are having problems finding continuous zones of gold and it is now going to take some future drilling, with very closely spaced drill holes, to find out if they even have acceptable average grades, to come up with a resource estimate. This is not the good news investors were expecting from the Windfall project. When all is said and done this complete project may be a bust, much like Rosseau had stated in their proxy battle statements. Funny how retail investors are always the last to find out bad news. I guess we found out why Nemis and company have been trying to avoid the topic of Windfall in recent weeks. However to be honest, it has never appeared that Windfall has offered much to NOT's overall market cap any ways. With NOT it is all about McFaulds Lake and the overall tonnage of nickel. With the Eagle One deposit being very rich, but much smaller in tonnage than many investors were led to believe, things are not looking good in NOT'land.

I sold off my entire position in NOT yesterday. The decision didn't come lightly, but I just figured why turn a winning position into a loser as the share price looks destined to test recent lows. This proxy battles is not doing the share price of NOT any favours. It appears to me, Rosseau and friends are purposely trying to keep the share price held down. Their hope is to take over control of NOT, then offer themselves options at these bargain basement prices. I also wouldn't be surprised if NOT under Rosseau control wouldn't do another PP at these extremely undervalued prices, offering the PP to their supporters in this proxy battle. Once themselves and friends were all loaded up on cheap shares, then they would try and bundle up the company and sell it to the highest bidder. The dilution to the o/s share base would/should be a major concern to current shareholders, if Rosseau does gain control of NOT. I have decided to step aside to let the dust clear, before re-entering NOT. I still voted all my shares to Nemis and team. I still encourage any shareholders of record, to do the same thing. I feel sorry for the investors trapped in NOT at much higher share prices and wish them nothing but the best of luck. The greed and arrogance of Rosseau and friends is disgusting, as they don't appear to give a damn about the average retail investor. Anyone trapped in NOT currently, please take TradingChief up on the 7 day free trial to this site and get some help trying to get out of your current mess. If Rosseau and his team of bandits take over control of NOT, I have decided to forget about investing in NOT and move on to some other plays. I would have no desire to continue doing the morning thoughts posts either, as I would most likely have a very negative slant and that would not do justice to shareholders in NOT. I certainly have no desire to see retail investors lose money. Best of luck to those still in and please take advantage of the offer to get some help, getting out of the mess you are in, if you are trapped in NOT from much higher prices.

FNC released some interesting news yesterday. That intercept that FNC reported assays from may have been small, but the high grade of nickel tells me at least they are on the right track. It could very well mean, they just missed the motherlode from the first round of drilling in the vicinity of hole #2. The news that Peter Smith has decided to go back and drill in this location is good news for investors, is my take on yesterdays news release. I sold my shares yesterday and booked in profits, but will look to re-enter shortly. The chance for the FNC lottery ticket to hit, looks much better after yesterdays news release. I look forward to hearing more from FNC's drilling program in the near future. After yesterdays news release, once again FNC looks poised to give shareholders some excitement in the search for high grade nickel.

FWR continues to get no respect from investors. They have announced probably the best intercepts of chrome in McFaulds Lake, but so far the market is giving very little valuation for chrome, if any. The last news release from FWR with the visuals on their drilling for nickel looks promising. I sold my FWR position yesterday and took a one cent per share loss, more because of my dislike for the NOT situation than anything to do with FWR. In a market that is just in meltdown mode across the board, it appears investors have very little appetite for junior mining exploration stocks. It is going to take some very good nickel assays from FWR, for the share price of FWR to get the kind of attention you would expect from a stock like FWR. Investors just don't have an appetite for speculative stocks right now. This is the sad reality for investors in junior mining stocks right now and those that don't pay heed to this fact may end up being bagholders in some of these stocks for a long time.

Best of luck to all McFaulds Lake investors.




Al

 

[lor]

Post from AB

<TABLE width="100%"><TBODY><TR><TD>Interview with Warren Irwin</TD><TD align=right>

</TD></TR></TBODY></TABLE>
This is a damn good post....Crazydik from AG:

Irwin called me this morning as a follow up to my discussion witjh his proxy agent last week. At that time I posted my concern that the message of the dissidents might offend the laws of libel (the printed material) and slander (the spoken word).

We covered several points for which I sought clarification.

The first was with respect to the printed material that indicated that the current management had squandered 15 Million on Windfall. I asked him whether that was a figure in excess to the PP funds raised in December 2006, which you will recall was raised before McFaulds was an area of verified interest, and had been raised for the purpose of ramping underground to the 52 oz/ton gold core.

Irwin could not provide any specific information that additional funds had been spent by Noront on the Windfall project. He could provide no specific figures as he admitted that he had not examined, in any way, Noront's financials.

I asked him by what mechanism he would have had Noront spend this PP money on McFaulds when it had clearly been invested for the purpose of Windfall. He could not provide a response.

He did volunteer that he thought Windfall was worthless and that the entire project was a big waste of money. He quiried why Noront had not simply gone to open pit mining as opposed to the expensive route of underground ramping.

When I pointed out that there were laws and regulations in place to stop companies from simply digging a big pit in the earth, and that the permitting process (never mind the NI-43-101 requirements) to commence mining operations were rather formidable obstacles to satisfy, he mumbled something about Quebec being a friendly place to mine, and changed the subject.

We next moved on to his concern that Noront is burning through their war chest in a cavalier manner.

He spoke of how his proposed new slate of directors had considerable experience in allocating funds efficiently, and waxed enthusiatic about "appropriate committees being set up to consider expenses" based on "expert advise" as to how to spend the money best. In this vein, he said "we need a real chrome guy up there, maybe someone from South Africa!".

I asked him if he had any first hand knowledge that the moneys expended on a monthly basis were excessive or ill spent, or that the "burn rate" was in fact too high considering the actual costs of drilling etc. I wanted to know if he had done an actual cost calculation which would allow Noront to proceed at a lower cost without sacrificing results.

Irwin did not have any first hand information. His opion was entirely based on anecdotal information from unidentified sources that certain companies were able to drill for less money.

He did raise the valid (in my view) point that Noront would need to find new financing within the next few months, which he felt could be best achieved through flow through financing. He opined that none of the major sources of funding would be at all interested in investing in Noront while Richard Nemis was at the helm.

I pointed out that he himself had invested in Noront with Richard at the helm, and had done so well before the extent of the resource had been defined.

He responded that "there are no more suckers left on Bay Street".

Interesting.

I asked him his view (without considering the present market meltdown) of the value of Noront. I wanted to know how he viewed this company that he is fighting so hard to control.

His answer was candid. He feels that there is no value in Noront beyond the money in the war chest. He opined that Noront had not made any significant discovery to date. Windfall is worthless, the chrome may be worthless, there is not enough Nickle to be of interest, etc.

He opined that if he loses this take over attempt, Noront will be bankrupt in less than a year.

He is the saviour of the company. He and his team of experts.

When D12 wrote in an earlier post that "this was just business" , I wish that he could have heard Irwin speak. The type of language used was emotionally charged and bombastic. Richard Nemis "had been lying to him for the last nine months", had "been blowing smoke up his ass", Noront was being run "by a bunch of yahoos" etc.

I wanted to retch.

My impression of this fellow remains intact. He is a corporate raider who bypassed the SCC rules of disclosure (10% minority interest) by staying just under that number but banding together in common cause with other like minded institutional investors.

He is prepared to say anything to seize control of a company that he would have you believe is without value : "Let me do you a favour and take that off your hands..."

I heard nothing that suggested that he saw this has a long term hold and develop investment. Far from it. Although he tried to offer reassurance that he would be guided by the advice of his experts in terms of the companies long term prospects, this rang hollow in terms of his current views.

His last response was most telling. I asked him candidly what he would do if his bid was unsuccessful. He said that he would sell all of his shares, take the loss, and see the stock at .20 cents.

Sound like somebody who gives a crap about this company? This is a merchant of fear. A manipulator and opportunistic master of the weakened market.

I don't want him having any say in the future of my company.

Do you?

Long and Strong.

See you at $20.00

crazydik

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Thursday morning thoughts from TC</TD><TD align=right>

</TD></TR></TBODY></TABLE>
Good morning. Overseas on the major Asian indices we have the Hang Seng down 3.55% and the Nikkei down 2.46% this morning. Asian stocks fell to a 4 year low on growing fears emerging market weakness will prolong a global recession and depress corporate earnings. The outlook for export-dependent Asian economies darkened, hitting the shares of many high-profile companies that have staked their business on overseas sales. Japan's Nikkei share average fell 2.5 percent, though it was down as much as 7 percent earlier in the session. The index cut losses as U.S. stock futures extended gains following a story in the Wall Street Journal saying the U.S. government will consider a $40 billion plan to slow home foreclosures. Japan's trade data showed exports in September were much weaker than expected, with exports to the United States down 11 percent from the same month last year. The Baltic Exchange's dry sea freight index, a market-based measure of demand for raw materials, fell on Wednesday to a 6-year low as commodity prices collapsed and slowing demand reduced shipments. The index has plummeted 89 percent in the last four months. U.S. light crude oil prices clung to small gains, up 30 cents at $67.05 a barrel, after hitting a 16-month low of $66.20 on Wednesday. Oil prices have fallen by a third in October in anticipation of a steeper decline in demand from big consumers such as the United States and China.

In Europe the major indices are down between 2% and 4% this morning. Worries about the global economy have sent banks and commodity shares sharply lower today in Europe. The dollar hit a two-year high against a basket of currencies as concerns about a worsening global economy prompted investors to cut risky assets. A stronger dollar usually means lower metal prices. Copper plummeted more than 7 percent to hit a three-year low as investors sold metals due to slower global growth and demand worries. The forecast for Chinese economic growth in 2009 has been cut to 8-9 percent, the expectation, is for commodity prices to bounce back some time next year. This week everything is doom and gloom, the market is not looking at the little positive elements. Libor is easing, though not much. Interest rate cuts are likely to occur, and oil prices have halved.

On the North American markets we had US stocks tumbling to 5 year lows yesterday. Investors are concerned about the dire outlook for the global economy following a raft of disappointing profits and outlooks for major U.S. companies. The Wall Street journal is reporting the US Fed is considering a roughly $40 billion proposal to help forestall housing foreclosures. Today we have a slew of S&P 500 companies releasing earnings, Microsoft, Bristol-Myers Squibb, Dow Chemical Co., Eli Lily and United Parcel Service are the bigger names. Stories that should get some press today are, The Federal Reserve's Consumer Advisory Council meets to discuss the Housing and Economic Recovery Act of 2008, and former Fed Chairman Alan Greenspan testifies in Congress on "The Role of Federal Regulators". On the economic calendar for today he have the Initial Jobless Claims numbers at 8:30am. The early futures are pointing to a down opening again for the US indices, the Initial Jobless Claims numbers and corporate earnings releases will be the driving forces for which way the markets open today. Lower commodity prices doesn't bode well for the Canadian indices, again today.

Back in McFaulds Lake, NOT tested it's recent lows and successfully held, but was still down another 13% for the day. The close near the low of the day, doesn't look good for today. On the chart we have support at $.85 and resistance at $1.05, with the 13(MA) now sitting at $1.14. The chart indicators are all pointing down and unless there is some good news from NOT today, I would expect new 52 week lows for the share price. This proxy battle with Rosseau couldn't have come at worse time for NOT, with investors abandoning junior resource stocks like they have the plague. There just doesn't seem to be any compelling reason to own NOT right until it finds a bottom and turns back up.

Perhaps NOT's share price could get a boost if we start hearing that Nemis is winning the proxy battle. This could give the share price a short term boost until shareholders come to grips with the possibilty that Rosseau and his supporters may dump their shares on the open market as they would no longer have any reason to hold on. If the word gets out that Rosseau is going to win the proxy battle, we could get some retail sellers. NOT appears to be backed up in a corner in a lose, lose situation. I would think their are only 2 ways for NOT to get it's share price turned around in the current market environment. One is to release some knock your socks off assays, from one of their nickel discoveries. The other would be for an announcement that a major is buying in for a percentage of NOT. Having a major buy in for a percentage of NOT, would put an end to whispers that NOT needs to go into the market to raise cash anytime soon. With a burn rate around the $4 million a month mark, this is one of the reasons why NOT's share price has been under selling pressure recently. It is getting harder and harder for companies to raise cash, without diluting the o/s share base to intolerable levels.

Over the next couple of weeks it will definitely be interesting to see how the story of NOT plays out. I think what we have seen with NOT, is that Rosseau and his backers have been dumping their shares into the open market in the hopes they will win this proxy battle, then do a major financing with their supporters. At the same time they would plan on issuing themselves options at these low prices, then bundle NOT's loose ends up and sell to the highest bidder, hoping to recoup their losses. The one wrench that could be thrown into their plans would be for Rosseau to lose this proxy battle. The threats by Rosseau to dump his shares if he loses this proxy battle may be idle threats indeed, especially if my theory is correct and he has already dumped many of his shares at a huge loss. Predicting how this proxy battle win end up is almost impossible, even harder to predict is what the loser of the battle will do and what effect it will have on NOT's share price. This is the reason why I have chosen to stand on the sidelines. Never have I seen a stock unravel so fast as what has occurred with NOT and this proxy battle. As much as I have always believed and still do, that someday McFaulds Lake will turn into a major mining camp, the risk levels have never been greater until this proxy battle story plays out.

FNC is the one stock in McFaulds Lake that could buck the trend and give investors some fantastic gains over the coming weeks. FNC has always been the black sheep in the McFaulds family, as Peter Smith dances to his own tune. Just being in the proximity of NOT's Eagle One discovery has always caught my interest. Then the announcement this week, that FNC came up with an assay of high grade nickel, even though it was in a very small intercept has piqued my curiousity. Smith's decision to return to the vicinity where this high grade nickel intercept was discovered, leads to the possibility, that just maybe, the motherlode is on this property after all. Finding one of these discoveries has always been referred to as trying to find a needle in the haystack. Perhaps FNC has found the head of the needle and further drilling in the area will find the rest of the pin. This is still a very risky play, however there is always the chance this lottery ticket may pay off. Stay tuned, the story of FNC is one last chance to put McFaulds Lake back on the map, in the very near future. Wouldn't it be a twist of fate, if FNC ends up having the main body to the original Eagle One discovery. The odds of it happening aren't great, but the slim chance still exists. Move over Dick Nemis, Peter Smith is still in the game !!!

I currently own no shares of any company in McFaulds Lake. If I was going to own one stock, right now it would be FNC and I certainly would not bet the farm on it. I realize many investors are trapped in these McFaulds Lake stocks at much higher prices and many of these stocks are so illiquid right now, you couldn't get out if you wanted to. So your choices are limited, most will just have to sit back and ride this current market meltdown out, however you could be sitting on some of these stocks for a long time as dead money. It is a sad situation, but the reality is here for all to see. I am torn right now, to stop covering the McFaulds Lake stocks with the morning thoughts posts. It is very hard to come up with anything positive to say right now and I really have no desire to make investors feel even worse, about their situation than they already do. I have noticed we are getting less and less readers of this board lately and I certainly understand why. Spending hours and hours each day doing research then spending hours each morning doing the posts, I have seen the recommends fall off, meaning many don't really get much from the posts anymore. I have always thought the recommends should be the tell tale, when the morning thoughts posts are no longer worth it. I think that time is near. I certainly understand how many investors have very little enthusiasm left for the McFaulds Lake story right now. It is time to see the writing on the wall and perhaps spend my time being more constructive in other endeavors. I will keep up the posts until after the proxy battle between Nemis and Rosseau is over, then take a serious look to see if the McFaulds Lake story is worth covering anymore.

Best of luck to all McFaulds Lake investors.




Al

 

[joelatti]

I hope most got out of the way from the falling piano.......Now sitting at .74 cents

For those who held on GL.....One positive there's no way to go but UP!

 

[Jetplane]

on which stock?

 

[mickj]

NOT Noront Resources

 

[Jetplane]

gotcha, i got confused on this whole thing cuz it reads as jibber jabber to me lol. interesting tho.

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Friday morning thoughts from TC</TD><TD align=right>

</TD></TR></TBODY></TABLE>
Good morning. Overseas, the major Asian indices are in meltdown mode this morning. The Hang Seng is down 8.30% and the Nikkei is down 9.60%. It is "Capitulation Friday" as markets around the world are in sell off mode. Investors realize the world economy is in recession and have lost confidence, many investors are now believing the recent EU and U.S. measures to restore confidence in domestic banking systems may have come too late. Investors in Japan and the United States have cut their overseas investments and are bringing their money back home, causing the Yen and the $US to soar. This money is going into government bonds, causing stocks around the world to collapse

In Europe the major indices have opened in "Capitulation Friday" mode also, with indices down in the 8% to 10% range. Investors fear the credit crunch is starting to spill over into the emerging markets and company earnings are deteriorating. Equities are crashing and there is a fear the credit crunch has swung from banks to sovereign nations and there is a belief there is only a matter of time, before countries start going bust and defaulting on debt. There is a flight to the two perceived safe currencies, to the US dollar and the yen. There is a state of general panic. We are in a self feeding bear market where all news, is deemed to be bad news. Energy stocks are being hammered as crude oil prices are falling with no apparent bottom in sight. Investors are shrugging off a likely OPEC production cut, to focus on signs of a prolonged global recession. Car manufacturers are all facing a difficult time. Auto companies around the world are slashing their work forces as sales of new cars and trucks have all but collapsed. It is quite difficult to buy a car at the moment, no one has got any money and no one has got any finance for them.. Base metal prices are collapsing on worldwide recession fears. Investors can't sell their commodity stocks fast enough around the world, they are just dumping them at market, at a time when there are very few buyers. Base metal prices are now so low, many of the worlds mines will soon be shutting down, as they are losing money at current prices. Real Estate markets around the world can't get credit for mortgages. Every new day is appearing a little worse than the one before it. Investors are in panic mode around the globe, it's "Capitulation Friday".

On the economic calendar for today there is only Existing Home Sales numbers at 10am, which definitely aren't market moving numbers. The futures are pointing to a bloodbath on the US indices to open the day. The collapse in the price of commodities doesn't bode well for the Canadian indices for today. Today just might be the day, that many of us have been expecting, the day investors throw in the towel and say enough. The table appears to be set for Friday Oct 24th 2008, to be "Capitulation Friday". These are the kinds of days when investors that are nimble enough, can make a lot of money, playing the dips and rebounds.

Back in McFaulds Lake, the share price of NOT collapsed yesterday. NOT fell 29.78% as Dundee Securities dumped almost 800k shares into the bids. It appears some fund was forced into redemptions and they wanted out at any price. Today, markets around the world are in sell off mode and the share price may collapse further, as there is just a total lack of buyers. On the chart of NOT for today we have support at $.39 with resistance at $1.09, which happens to be the 13(MA). Investors shouldn't be surprised if the support at $.39 is tested today. The collapse in NOT's share price has nothing to do with the current proxy battle, as every other junior mining stock is experiencing the same problem.

Today at 10:30 am the last of the votes in the proxy battle has to be in. We might hear later on in the day who the winner is. Honestly it matters not if Rosseau or Nemis wins, it won't save the share price today. When markets around the world are in capitulation mode, it is much bigger than any possible news release. For any of the true believers in NOT, if you have any spare money sitting on the sidelines, this should be the day you can pick up shares at bargain basement prices. However, I can't say as I recommend it. There are many better stocks to be buying on a day like today than NOT, is my belief. There really isn't much investors can do on days like this but put on their crash helmets and wait for the ensuing collapse to pass.

There really is no use in talking about any of the McFaulds Lake stocks today. The stock markets around the world are in a panic sell-off mood. On days like this, it matters not if a stock has news or not. Investors are not rational on capitulation days, they sell off the good stocks much the same as they sell off the dogs. For those sitting in cash, these are the types of days, when you can pick up your favourite stocks at bargain basement prices. However those sitting in cash shouldn't be concerned about buying stocks in the junior mining sector, these are the days when you can pick up shares of some of the very best mining stocks at unheard of prices and these bigger stocks, will be the first ones to recover after the panic sell-off's are over. Stocks like Teck Cominco, Goldcorp, Barrick, Potash Corp., etc, etc are the types of stocks those with money should be buying. However those that insist on only playing the junior mining stocks, there will be some tremendous bargains in this group also. But leave the smaller stocks alone, try and buy nothing but the very best stocks in this group. And before I am asked, no NOT-v is not in the group of stocks that people should be looking at today as a good investment. JMHO

Best of luck to everyone day. The outlook for the markets sure looks bleak. For many with weak stomachs and trapped into the McFaulds Lake stocks from much higher prices, it may be a good day to shut off your computer and go do something else to get your mind off of the markets for today. These kinds of days are impossible to predict, for the most part and we as retail investors obviously can't change it. One thing I don't recommend is for investors to be buying stocks today on the TSX-v exchange. These are really the last group of stocks you want to be investing in, on capitulation days. The kinds of stocks people should be buying are the very liquid stocks that trade millions of shares in a day. JMHO

Best of luck to all McFaulds Lake investors today.



Al

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Genuity Report /NORONT</TD><TD align=right>

</TD></TR></TBODY></TABLE>
Noront Resources Ltd.

NOT-V: $0.94 October 23, 2008


TARGET: $2.15 (FROM UNDER REVIEW)

RECOMMENDATION: BUY (FROM UNDER REVIEW)

RISK RATING: SPECULATIVE



Michael Gray, P.Geo. – 604.694.6961

michael.gray@genuitycm.com

Colin Garner, BASc (Associate) – 604.694.6964

colin.garner@genuitycm.com


Noront delivers Eagle One Ni-Cu-PGM scoping study

(all figures in C$, unless noted)


Price (10/22/2008)$0.94

Total return to target129%

Shares O/S (mm)129.9

Shares F/D (mm)139.0

Market cap F/D ($mm)$130.7

Market value ($mm)116.010-day Ave

Daily Vol (K)540.0

Debt ($mm)$0.0Cash ($mm)$30.0FD cash ($mm)$53.012-mo

Burn-rate ($mm)$25.0

Shareholders

2.5% Mgmt

~9.9% Sprott Asset Mgmt

~9.2% Rosseau Asset Mgmt

~7.9% Pinetree Cap

President & CEORichard Nemis

COOJohn Harvey

CFOKevin Feeney


Company profile

Noront Resources (NOT-V) is a Canadian-based and precious metal exploration company focused on Northern Ontario and Quebec, Canada. Its key asset is its Ni-Cu-PGM Eagle One 2.9 million t indicated and inferred resource on its 100%-owned Double Eagle project, James Bay lowlands, Ontario. Massive sulphide resources grade 6.75% Ni, 3.17% Cu, 2.45 g/t Pt and 12 g/t Pd (490K t).


• Eagle One Ni-Cu-PGM scoping study attests to the potential high retained value of the massive sulphide portion of the deposit – A scoping study highlights the economic potential of the massive sulphide resources of the Eagle One deposit as direct shipping ore. The ultra-high grade massive sulphide resources grade 6.75% Ni, 3.17% Cu, 2.45 g/t Pt and 11.99 g/t Pd (in situ 490,000 tonnes). A two-stage underground mining scenario (6.2 years) initially direct-ships massive sulphide resources to a smelter for 1.2 years, followed by mining and onsite milling of disseminated sulphide resources for the next five years. This is preceded by a two-year period of road and mill construction. Noront’s pre-tax NPV10% is $464 million based on the 48-month trailing average metal prices (i.e., Ni $11.00/lb, Cu $2.75/lb, Pt $1225/oz, Pd $300/oz – all US$). Payback is 2.2 years and the pre-tax IRR is 160%.

• Valuation adjustments – We have re-valued NOT in the context of the significantly weaker market we see for exploration companies 12 months out. We have trimmed our expectation that additional Ni-Cu-PGM massive sulphide deposits will be discovered and the value for Noront’s land position. We mainly rely on our preliminary DCF analysis of the Eagle One deposit and scoping study parameters to arrive at a NPV10% of $207 million for the potential direct shipping massive sulphide portion. Our estimation uses the forward curve metal prices (i.e., $5.60/lb Ni, $2.29/lb Cu, $887/oz Pt, $178/oz Pd – all US$, 2012 – start up). With few assays reported to date, the chromite discoveries are difficult to value.

• Catalysts – In the near

term, there is a dissident proxy battle for the control of Noront’s board that will be decided at the October 28, 2008 AGM. Drilling south of Eagle One is key, as any expansion of massive sulphide resources would be of high value to NOT.

• We are now recommending NOT as a BUY (from Under Review), with a new 12-month target price of $2.15 (from Under Review). This target price is underpinned by the Eagle One Ni-Cu-PGM deposit resources, the recent scoping study and our geological rationale. We believe NOT is Speculative and suitable for risk-tolerant investors only.


Genuity Capital Markets http://www.genuitycm.com

Event and background

On October 21, 2008, before market open, Noront released the results of a preliminary economic assessment study on its 100%-owned Eagle One Ni-Cu-PGM deposit, Northern Ontario. This was a surprise for the market, as Noront had not been guiding that it had completed a scoping level study. We give management full marks for conducting this study, but why not indicate that it was underway and a key milestone?

On July 3, 2008, Noront released a 43-101 compliant indicated and inferred resource estimate, totaling 2.9 million tonnes, as set out in Exhibit 1. This resource was higher than the 2.4 million tonnes that we had estimated in our January 10, 2008 initiation report on Noront.

Exhibit 1: Eagle One indicated and inferred NI 43-101 resource estimate

Source: Noront Resources


Scoping study scenario

The Scoping Study contemplates a two-stage mining operation

• Stage One – an initial 1000 t/day underground operation where the high-grade massive sulphide resources (indicated and inferred) would be accessed by ramp and “directly shipped” presumably by truck +/- rail to a smelter in Sudbury. A two-year period of road construction would be required and then 1.2 years of mining of the massive sulphide resource.

• Stage Two – a 1500 t/day underground operation would follow, with the disseminated indicated and inferred resources being mined and milled on site. This stage of mining would last five years.

The parameters for the scoping study are provided in Appendix A. We note that the 48-month trailing average metal prices were used for the Noront study – i.e., US$11.00/lb Ni, US$2.75/lb Cu, US$1225/oz Pt, US$300/oz Pd – whereas we have used the forward curve metal prices in the Valuation section of this report, which are much lower – i.e., US$5.60/lb, US$2.29/lb, US$887/oz Pt, US$300/oz Pd (in 2012).

Scoping study results


We have provided the results of Noront’s scoping study in Exhibit 2, including sensitivity to the 48-month average trailing prices (36 months and 60 months). This mining scenario is preceded by a two-year period of road and mill construction – no permitting timeline was specified in the news release.


Exhibit 2: Summarized results for scoping study utilizing 36-, 48-, and 60-month average metal prices – See Appendix 1 for assumptions

36-Month48-Month60-MonthAverageAvera... NiUS$/lb$12.50$11.00$10.00CuUS$/lb$3... rateCAD/USD0.90.90.9Pre Tax IRR(%)200%160%137%Pre Tax NPV@ 10%$606m$464m$381mUndiscounted cumulative cash flow $C$931m$719m$595mCapital Paybackyrs2.22.22.3

Source: Noront Resources


Valuation and recommendation

We had taken NOT-V to “Under Review” on October 7, 2008 as our blue-sky driven valuation was not in-step with the likely weak market conditions expected 12 months from now. A dissident proxy battle announced on October 9, 2008 caused us to stay Under Review until now following NOT releasing a scoping study on the Eagle One Ni-Cu-Pt-Pd deposit.

The main changes to our valuation approach, as shown in Exhibit 3, are as follows:

• Preliminary DCF valuation of the Eagle One deposit – in this valuation we used the same parameters as the Noront scoping study, except that in our conservative and base cases we used the forward curve metal prices and US$:C$ exchange ratio (Appendix 1 for parameters and assumptions). Our metal price assumptions rendered the disseminated portion of the sulphide deposit uneconomical; therefore we did not include it and only modeled the massive portion. However, at this time we are allotting $25 million to our base case for future potential of the disseminated portion, should metal prices improve. For our conservative case we only used the massive sulphide portion of the resource, as this scenario would potentially allow fast-track mining without mill site/tailings permits that could significantly delay the project; we also deducted 10% of this value to be more conservative. In our optimistic case we used the 48-month trailing average metal prices that were used in the Noront scoping study for exploitation of both the massive and disseminated resources.

• Cutting our exploration land value – we do not provide land value in our conservative case, but we do in our base and optimistic cases where we use $300/ha (was US$600/ha).


• Ascribing a value to the Blackbird (One and Two) chromite deposits – we use the following:

1) $37 million in our conservative case – this is the approximate EV of Freewest Resources (FWR-V: $0.20, Not Rated) who has intersected significant chromite mineralization;

2) $100 million in our base case – approximately triple the FWR EV; and

3)$635 million in our optimistic case – this is 2% of the potential gross metal value of a 30 million tonne deposit, grading 40% Cr2O3 at long term US$1.00/lb Cr2O3. We believe the chrome mine potential on the Double Eagle project is high, albeit difficult to value, given the early documentation of the Blackbird One and Two deposits regarding potential size and grade (we note a limited number of drill holes with chrome assays have been reported to date). We expect Noront has a good chance of being able to sketch-in +20 million to +40 million tonnes of chromite resources, at average grades of 40% Cr2O3.


Exhibit 3: 12-month corporate NAV for Noront

Overall Adjusted Corporate12 Month NAV ($000's)$M$/Share$M$/Share$M$/Sha reGross Metal ValueEagle One-Massive portion (NPV10%)186.41.29207.11.440.00.00Eagle One-disseminated portion (NPV10%)0.00.0025.00.170.00.00Eagle One - Noront scoping study prices (NPV10%)0.00.000.00.00464.03.22Belt Goodwill Premium Potential New Belt - Chrome potential37.00.26100.00.69635.04.41Land Transaction Comparables Regional Double Eagle (66.9K ha @ $300/ha)0.00.0020.10.1420.10.14Appraised Value (expenditures @50%) Other Projects (does not including Windfall Lake)0.00.0010.00.0710.00.07Subtotal of Project Assets223.41.55362.22.521129.17.84Cash & Short Term Investments30.00.2130.00.2130.00.21Cash via exercise of in-the-money warrants/options3.70.033.70.0323.00.... exploration rebate3.30.023.30.023.30.02Debt0.00.... (5mm flow-thru shares at $1.08)5.40.045.40.045.40.04Corporation Adjustments (12 mo)-25.0-0.17-25.0-0.17-25.0-0.17Net Corporate Asset Value ($C)240.81.67379.52.641165.88.67using 144mm shares f/dOptimistic Case2.9mm tConservative Case0.49mm tBase Case2.9mm t



Source: Genuity Capital Markets estimates

To value Noront at this time we use the mid-point value of the conservative and base cases for approximately $310 million ($2.15/share). We believe this provides an anchor valuation for the direct shipping ore, while not providing full value to the disseminated ore until the economics become clearer (as we prefer to limit the permitting requirements at this stage).
























Recommendation

We are now recommending NOT as a BUY (from Under Review), with a new 12-month target price of $2.15 (from Under Review). This target price is underpinned by the Eagle One Ni-Cu-PGM deposit resources, the recent scoping study and our geological rationale. We believe NOT is Speculative and suitable for risk-tolerant investors only.

416.603.6000 4 Genuity Capital Markets http://www.genuitycm.com 416.603.6000 5


Impact – Positive

Our forward curve metal price assumptions for the massive sulphide portion of the Eagle One resource suggest very high value can be potentially returned from rather small deposits (0.5 million tonnes) via direct shipping to a smelter. This supports our overall investment thesis that in a new underexplored belt such as the one NOT controls, only a few such ultra high grade Ni-Cu-Pt-Pd massive sulphide deposits may need to be discovered to create significant value.



Near-term catalysts

• Dissident proxy vote at the AGM (October 28, 2008) – As we wrote on October 10, 2008 in a research note, we believe the Rosseau nominated board, if elected, would be a positive development for NOT investors.

• Exploration “expansion drilling” at Eagle One (current) – as written in our October 7, 2008 research note, NOT is drilling immediately south of its Eagle One Ni-Cu-PGM deposit (indicated and inferred resource) in an attempt to expand the deposit and find new massive sulphide zones at depth within the “conduit.” Infill drilling is also being conducted within the inferred resource. Drilling has apparently been in progress since early-to-mid-September with no visual results reported to date.

• 43-101 Preliminary Economic Assessment report (within 45 days) – Noront has indicated the detailed scoping study will be public in 45 days.

• Ongoing drilling at Eagle Two (AT2) and AT12 (ongoing) – Drilling will continue to test at depth for Ni-Cu-PGE massive sulphides. Drill targets associated with high quality EM conductors at depth will have high discovery potential (to date, NOT management has provided limited public information on the quality of its EM targets).

• Ongoing drilling and assay results at the Blackbird One and Two chromite deposits (ongoing) – NOT is sketching-in its two chromite discoveries to establish size and grade potential that will eventually lead to an inferred resource estimation.

• VTEM airborne survey results (pending) – We expect VTEM anomalies to be documented on Noront’s extensive Double Eagle property and for high priority targets to emerge. Disclosure of the strength of these conductors would assist the market in assessing the exploration potential for near surface Ni-Cu-PGM deposits.


Genuity Capital Markets http://www.genuitycm.com 416.603.6000 6

Appendix 1 – Parameters and assumptions

Noront Scoping Study for the Eagle One Deposit

• 1,000 tpd stage one underground mining operation (ramp) to directly ship the massive sulphide resource to Sudbury over a period of 1.2 years.

• 1500 tpd stage two underground mining operation (ramp) to mine and then mill the disseminated resource, produce a concentrate and ship to Sudbury over a period of five years.

• Assume two-year period for road construction.

• Average estimated on site operating costs for the project include mining $69.00/tonne, processing $37.00/tonne and G&A $11.00/tonne, for a total of $117.00/tonne.

• Mining dilution was estimated at 15% and mining recovery at 95%.

• The base case NSR calculation was derived from metal prices of US$11.00/lb for Ni, US$2.75/lb for Cu, US$625/oz for Au, US$1,225/oz for Pt, US$300 for Pd and US$11.50 for Ag, at a C$/US$ exchange rate of $0.90.

• Process recoveries to concentrate were estimated at an average of 85% for Ni, 97% for Cu, 65% for Au, Pt, Pd and Ag at average concentration ratios of 4:1 for Ni and 9:1 for Cu in massive sulphide and 16:1 for Ni and 45:1 for Cu in disseminated sulphide.

• Concentrate shipping was estimated at $130/tonne and smelter treatment charges at US$130/tonne for Ni, and US$150/tonne for Cu concentrates.

• Smelter payables were 92% for Ni, 97% for Cu, 90% for Au, 65% for Pt, 70% for Pd and 90% for Ag. Refining charges were US$0.50/lb for Ni, US$0.10/lb for Cu and US$15/oz for Au, Pt and Pd and US$0.30/oz for Ag.

• The potentially mineable portion of the resource for Eagle One was estimated on the basis of approximate US% four-year trailing average metal prices of $11.00/lb nickel, $2.75/lb copper, $625/oz/gold, $1,225/oz platinum, $300/oz palladium and $11.50/oz silver and the US$ exchange rate was $0.90.

• An NSR cut-off of $117.00/tonne for underground mining, milling and G&A was utilized to report the potentially mineable portion of the resource



Genuity DCF model assumptions

In addition to the Noront Scoping Study assumptions, we used the following:

• One year to permit the direct shipping operation, followed by a two-year construction period for the road.

• Forward curve metal prices as of October 20, 2008 for our conservative and base case (see Exhibit 4).

• $60 million capital cost for the road construction and ramp development and equipment.

• 10% discount to NPV adjusted 12 months.



Genuity Capital Markets http://www.genuitycm.com

Exhibit 4: Genuity metal price assumptions as of October 20, 2008

2008E2009E2010E2011E2012E2013E2014E & LT Gold (US$/oz.) SPOT871 797815847882918918 Silver (US$/oz)14.88 9.439.629.9110.3710.8310.83 Copper (US$/lb)3.29 2.212.242.272.292.291.75 Nickel (US$/lb)9.68 5.045.325.505.605.608.00 Platinum (US$/oz)1,587 887 887 887 887 887 1500 Palladium (US$/oz)349 178 178 178 178 178 325C$/US$0.95 0.84 0.84 0.84 0.85 0.85 0.88

Source: Bloomberg, Genuity Capital markets



416.603.6000 7 Genuity Capital Markets http://www.genuitycm.com 416.603.6000 8

Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund,

Participating Organization of the Toronto Stock Exchange and Toronto Venture Exchange

A portion of the travel expenses for a recent trip to an exploration site in Ontario were paid for by Noront Resources Ltd.

Analyst’s Certification

I, Michael Gray, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

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Distribution of Ratings

Out of 126 stocks in the Genuity Capital Markets coverage universe, the ratings distribution is as follows: BUY (63.5%), HOLD (30.2%), SELL (4.8%), Under Review (0.0%), Restricted (0.8%), Tender (0.8%). Distribution of ratings is updated the first of every month.

Risk Rating

LOW/AVERAGE RISK – Stocks with less volatility than the market as a whole, with solid balance sheets and dependable earnings.

ABOVE AVERAGE RISK – Stocks with more volatility than the market. Financial leverage is considerable but not threatening, earnings are more erratic, or other quality concerns regarding accounting, management track record, and similar issues.

SPECULATIVE – Stocks of unproven companies or ones with very high financial leverage, suspicious accounting, or with other significant quality concerns. A speculative risk rating implies at least the possibility of financial distress leading to a restructuring.




Genuity Capital Markets http://www.genuitycm.com 416.603.6000 9

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Share Classification

NV – non-voting shares RS – restricted voting shares SV – subordinate voting shares UN – units

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Genuity Capital Markets USA Corp. is a U.S. registered broker-dealer and subsidiary of Genuity Capital Markets. Genuity Capital Markets USA Corp. accepts responsibility for the contents of this research report, subject to the terms and limitations as set out above. U.S. residents seeking to effect a transaction in any security discussed herein should contact Genuity Capital Markets USA Corp. directly.

 

[mickj]

actually up today :toast:

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Monday morning thoughts from TC</TD><TD align=right>

</TD></TR></TBODY></TABLE>
Good morning. Overseas on the major Asian indices we have a new week but the same old song, the Hang Seng is down 12.7% and the Nikkei is down 6.36%. Japan's Nikkei average slid to its lowest close in 26 years as the yen advanced on the dollar, battering exporters. Japanese banks were hammered on concerns they may need to raise billions of dollars each to offset hefty losses on their stock portfolios. Japan pledged fresh measures today to try to shield the world's second-biggest economy from the financial crisis and said the Group of Seven would issue a joint statement on the yen, which has risen rapidly as investors flee riskier investments. The Group of Seven big industrialised economies said on Monday that a rapid rise of the yen against other currencies was bad for both markets and the economy and that it would watch developments and cooperate accordingly. The yen slipped slightly as traders pondered whether the G7 statement could be a precursor to official intervention in major currencies to stem the sharp surge in the yen. The currency in the world's second-largest economy has gained as many market players have rushed to unwind carry trades built up over the last several years in which they borrowed the yen to invest in higher-yielding assets. Other Asian markets also dropped amid scepticism that moves by policy makers will be enough in the short-term to stave off eroding economies or sharp drops in corporate earnings. South Korean shares slumped 2.8 percent, even after the central bank cut interest rates by 75 basis points in its biggest such move ever. Taiwan and Hong Kong shares fell more than 5 percent each at one point, with smaller losses seen in Australia and Shanghai. Trading was briefly halted in the Philippines after the market fell 10 percent. All is not well in Asia.

In Europe today the major indices are tracking big losses in Asia as intensified fears of a global recession hit banks and energy stocks. Until the capital market situation is eased and the money comes out of governments into the banking system we are not going to see anything different. Recession remains on everyone's lips and is the top concern. Energy shares are trading sharply lower as an emergency production cut by OPEC was shrugged off by investors anxious about the onset of a deep global recession. The falls in the commodity price despite the cuts reflect how weak OPEC is in these circumstances. It shows how low global demand has become. Investors are not convinced there is going to be any pick up anytime soon. Underlining worries on the macroeconomic front, German business sentiment fell to its lowest level since May 2003 on expectations the export sector will take a big hit from weakened foreign demand. All economic data which we have had over recent weeks and will get in the months ahead is going to be on the negative side and therefore there is nothing to hang any confidence on. All is not well in Europe.

In North America for today it appears the indices are going to follow the sharp sell-offs in Asia and Europe. The early futures are pointing to a sharply lower open. On the DOW the 8200 level appears ready to be breached at the open if the futures hold up. This is an important support level on the DOW and if it is breached the next level of support is in the low 7000 area. This is a lot of downside pain from where we closed on Friday. On the economic calendar for today we have the New Home Sales numbers at 10am, certainly not market moving numbers, as new home sales are predicted to be from poor to terrible, so they would already be priced in. There just doesn't appear to be anything positive to turn the markets around, unless the Plunge Protection Team comes to the rescue and gives some sort of support to the US indices this morning. Unless something drastic occurs between now and the open with commodity prices, it does not bode well for the Canadian indices today.

Back in McFaulds Lake, NOT had a very volatile day on Friday, where it tested previous 52 week lows and bounced off of the lows and closed up over 22% for the day, on well above average volume. It appears bargain shoppers jumped in once they saw that the previous lows at $.60 held. On the chart for today we have support at $.47 with resistance at $1.07, the wide range between support and resistance is a testament to just how volatile NOT's share price is currently. The chart indicators have all turned bullish with a Harami pattern developing from the last two trading sessions, indicating a possible trend change. Confirmation of a trend change would require NOT to open at or above $.81 it's closing price and trade above $.81 for all of today. Any trades below Friday's close and a test of the 52 week low at $.60 is probable.

The news this morning that Nemis and Rosseau have come to a resolution in their proxy battle, is good news for all current NOT shareholders. I expect the share price of NOT to react favourably to todays announcement, now that the fear of the unknown is removed from investors mindsets. The news that Nemis is stepping down, is really not a big deal, as it was widely reported he was going to retire shortly after the AGM anyways. The new board of directors proposed appears to have a wealth of experience to take NOT forward to the next level. This should be a win/win situation for all shareholders of NOT. A fresh new look is exactly what NOT's share price needs to get out of it's long downtrend. It was becoming obvious Nemis was the problem not the solution, in taking NOT forward. Perhaps now NOT can regroup and get back it's darling of Bay St status. NOT currently has a market cap of only $100 million, for a company sitting on billions of dollars worth of mineable ore, the share price looks, extremely oversold to me. Base metals are currently trading at historic lows, but the Eagle One deposit if only given a 10% insitu valuation should be giving NOT a market cap somewhere around $200 million. This is without giving NOT any valuation whatsoever for it's Blackbird One and Two chrome discoveries, Windfall, Eagle Two, AT-12, and vast land holdings in the ROF. The equity markets around the world are obviously in meltdown mode, but NOT's share price is still extremely undervalued at current prices. JMHO

FWR's share price continues to be under selling pressure as investors bail on speculative junior resource stocks. With markets in meltdown mode there just doesn't seem to be any compelling reason to own stocks like FWR. FWR's share price looks cheap at current levels, but until the market turns around, the share price may get a whole lot cheaper. Only investors with a long term hold mentality, should be looking at adding to current positions at this time. It would take an announcement of a massive discovery by FWR to turn it's share price around at this point.

FNC continues to drill it's property also. At FNC's AGM last week it was reported Peter Smith still believes the motherlode is somewhere out there and he is committed to trying to find it. FNC's share price lost over 23% of it's value on Friday, as shareholders slowly toss in the towel as equity markets around the world melt down. FNC, much like FWR just doesn't have much buying interest in this market currently. Short of FNC actually coming up with the motherlode in their drill program, I expect the share price to do the slow bleed. There is no harm in following this story, but being invested in FNC is extremely risky, unless you are prepared to sit on dead money for the foreseeable future. A sad situation, but reality often sucks.

The best advice you can give someone in this market currently, is to avoid speculative junior mining stocks entirely, until the markets find a bottom. I suppose at some point the share price will bottom out, but it may take months or years for investors to return to buying these speculative stocks. No one wants to see the McFaulds Lake stocks to better than I do, however, one must face the reality of the current state of the markets. The TSX-v exchange looks poised to go under 800 points, probably today, by looking at the early futures. This tells me investors want no part of speculative stocks period. A few select stocks will probably see some investor interest, but very few. Best advice is, if you just have to invest in TSX-v stocks, is too find the ones that have large trading volumes on a daily basis and avoid the low volume stocks completely at this time. Investors that think the TSX-v stocks can't go much lower are sadly mistaken. My bet is if the markets in general continue to fall, many of these TSX-v stocks could still face haircuts of 50% and more, from current prices, as investors abandon these stocks like they have the plague. I just don't see investors coming back into the junior mining stocks any time soon. I'm sorry if I seem negative about owning the McFaulds Lake stocks, as much as I don't like it, I am just trying to be realistic. JMHO

Best of luck to all McFaulds Lake investors.



Al

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Noront Resources settles proxy dispute with Rosseau</TD><TD align=right>

</TD></TR></TBODY></TABLE>
Noront and Rosseau Resolve Proxy Contest and Agree on Composition of Noront Board
Symbol: NOT


TORONTO, Oct. 27 /CNW/ - Noront Resources Ltd. (\"Noront\" or the \"Company\") and Rosseau Asset Management Ltd. (\"Rosseau\") are pleased to announce that they have agreed to a jointly determined single slate of directors for election at Noront's annual and special meeting of shareholders to be held on October 28, 2008 (the \"Meeting\"). The new Board will have a strong mandate to move the Company forward in the best interests of all shareholders. Pursuant to the terms of an arrangement reached between Rosseau and Noront, the new board of directors will be comprised of the following six directors: Darren J. Blasutti, Joseph A. Hamilton, Keith McKay, Lorie Waisberg, Patrick F.N. Anderson and Paul A. Parisotto. In the view of the current Board and management of Noront, as well as Rosseau, the new Board will be well positioned to take Noront forward into the future drawing on considerable new industry expertise. The new Board will also ensure that Noront's future is pursued in a balanced manner in the interests of all shareholders.

In order to achieve this compromise and to facilitate a resolution that is in the best interests of all Noront's shareholders, Noront's current President and Chief Executive Officer, Richard Nemis, has agreed to stand down as President, CEO and director on October 28, 2008. In recognition of his outstanding and pivotal contribution to the success of the Company to date, Mr. Nemis will be named Chairman Emeritus of Noront for life and will serve as a special advisor to the new Board. The office of President and CEO will be filled on an interim basis by Joseph Hamilton and Paul Parisotto serving as co-CEOs. The new Board is expected to begin a search for a permanent CEO immediately. It is anticipated that the new CEO, when selected, will be appointed to fill the seventh seat on the Board. The remainder of Noront's management, which remains unchanged by these developments, welcomes the opportunity to work with the new Board in pursuing Noront's future success.

A brief description of the experience of the new proposed Board is set out
below:

- Darren J. Blasutti - is Senior Vice President, Corporate Development
for Barrick Gold Corporation. He has played a key role in the
implementation of strategic development opportunities and multiple
acquisitions. Mr. Blasutti was previously at PricewaterhouseCoopers
where he planned, supervised and managed audits for a variety of
clients. He is a member of the Canadian Institute of Chartered
Accountants.

- Joseph A. Hamilton - is a Professional Geologist with over 14 years
of mineral exploration experience in addition to over seven years as
a mining analyst in the investment industry and three years experience
in mining development. Mr. Hamilton is currently the President of
Pickax International Corporation, a private company providing services
to the mining industry. He was previously the Chief Executive Officer
of African Copper plc.

- Keith McKay - is a Chartered Accountant with 25 years of financial
experience in all aspects of the mining industry, including
construction and operations, financing and mergers and acquisitions
transactions. Most recently, Mr. McKay was appointed Chief Financial
Officer of Aurelian Resources Ltd. in 2007. Previously, he was Senior
Vice President of a worldwide publicly-listed engineering and project
management services firm and prior to that he was Controller at Rio
Algom Ltd.

- Lorie Waisberg, Q.C. - is currently a director of Chemtrade Logistics,
Keystone North America, Metalex Ventures, Primary Energy Recycling
Corporation and Tembec. Prior to retirement, he served as Executive
Vice President of Co-Steel Inc. Mr. Waisberg has served on the board
of approximately 15 Canadian public companies over the last ten years.
For 30 years he practiced with and was a senior business law partner
at Goodmans LLP.

- Patrick F.N. Anderson - is the President and Chief Executive Officer
of Aurelian Resources Ltd. which he co-founded in 2001. He is a
geologist with over 13 years experience in all aspects of the
exploration business. Mr. Anderson has worked as a consulting
geologist on gold, base metals and diamond projects in North America,
South America and Europe for junior explorers, major producers and
consulting firms to the mining industry.

- Paul A. Parisotto - is the President and Chief Executive Officer of
Blacksands Petroleum, Inc. Previously he was President and Chief
Executive Officer of Arizona Star Resource Corp., which was acquired
by Barrick Gold in 2007. Prior to these responsibilities,
Mr. Parisotto served as Vice President at two investment dealers.
Mr. Parisotto was also previously Manager, Original Listings at the
Toronto Stock Exchange during which time he was involved in the
listing of over 250 companies. He was also a director of Nevada
Pacific Gold Ltd until its acquisition by US Gold Inc.

Mr. Paul Parisotto, Chairman of Noront's Special Committee said, \"We are pleased that we have been able to reach agreement with Rosseau on a new board that positions Noront well for future success. Going forward, Noront will have a balanced joint slate of directors representing the interests of all shareholders. It is important to know that the Company's management team which was largely responsible for our discoveries in the Ring of Fire will remain with Noront. The Company is grateful for the longstanding and excellent service of Dick Nemis, Maurice Stekel and Douglas Blanchflower\".

Warren Irwin of Rosseau commented, \"We thank Mr. Nemis for the contributions that he has made to the foundation and development of the Company. We also thank Paul Parisotto, as Chairman of Noront's Special Committee, who was instrumental in finding this solution to recognize the interests of all shareholders. We are confident that the Board proposed for election on Tuesday will bring together the expertise Noront requires for the next stage of its development.\"


...........................


The annual and special meeting of Noront's shareholders will be held on October 28, 2008 at 10:30 am (Toronto time) pursuant to the notice to shareholders. Noront's management and Rosseau will jointly put forward a slate of directors consisting of three nominees from the slate proposed in Noront's management information circular (Messrs. Paul A. Parisotto, Maurice H. Stekel and John Douglas Blanchflower) and four nominees from the slate proposed in Rosseau's dissident information circular (Messrs. Joseph Hamilton, Patrick Anderson, Keith McKay and Michael Woollcombe). The remaining nominees of Noront's management and Rosseau have withdrawn their consent and will not permit themselves to be nominated as directors at the Meeting. Immediately following the Meeting, Messrs. Woollcombe, Stekel and Blanchflower have agreed to resign as directors and Messrs. Stekel and Blanchflower will be replaced by the remaining two agreed-upon future directors of Noront, Messrs. Blasutti and Waisberg.


About Noront


Noront is a tier 2 junior resource company on the TSX Venture Exchange, trading symbol NOT, with 129,894,783 shares issued to date

 

[lor]

This was posted on Agoracom.

Conversation with Warren Irwin tonite
Posted by: glorieux on October 27, 2008 10:30PM

Well, after an up day on the market but a down day saying goodbye to Richard, I though I would finally call Warren myself and see how bad this bad boy is.

After I introduced myself and my position regarding the proxy vote, we began talking how he sees Noront proceeding. I asked him about dilution. He stated that the board would make that decision after establishing budgets for the next 12 and 24 months. He expects a dilution of a maximum of 20M shares but since he is not on the BOD, he is just guessing at this point. These would be flowthru shares that usually sell at a premium to the market price. I asked him if he would be participating in the PP. He said that he probably will not but said he might. He talked at length about the new BOD and told me to look up any company with a MC of 130M and try to find one with the caliber of directors that we will now have. He said that as long as Richard was there, some of these new directors were not interested in joining. Institutional investors were not happy with Richard either. He said, now that we have an incredible, experienced BOD, with great geology we should see institutions taking positions in Noront again fairly quickly. I asked him if he planned on buying any shares in the open market in the next 2 weeks. He said no. That he was going to lay low for a while and let the new BOD do their thing and see how it goes. He was straight forward with me, not condescending and seemed to realize that retail investors were important. Was this all an act until they dilute us, I cannot answer but his candure was surprising.

In the end, I thanked him for his time, told him that retail is suspicious at this time and will be analysing the new BOD's every move and will rise up again if we feel we are being wronged. He assured me that he was not on the board and did not control the board. That these 6 individuals were all very good people who will do what is right for the company. I told him that this was my hope and if they are ethical, we will have no problem and that it will be exciting to see this company grow.

So I do not think the clouds are as dark as some may think. We have lost a champion for retail shareholders in Richard Nemis but he has left us a legacy of nickel and chromium and a BOD second to none for a small company like ours. Hopefully, they can make good on Richard's work.

Goodnight,

Glorieux

 

[lor]

<TABLE width="100%"><TBODY><TR><TD>Tuesday morning thoughts from TC</TD><TD align=right>

</TD></TR></TBODY></TABLE>
Good morning. What a difference a day makes. Overseas in Asia on the major indices it was "Bargain Hunting Tuesday", the Hang Seng was up 14.35% and the Nikkei was up 6.41%. Stocks in Hong Kong, Japan and South Korea rallied on Tuesday, boosted by irresistible valuations, pushing down the yen, though investors were still expected to pull money out of Asia in anticipation of a deep global slowdown. Investors from hedge funds to mutual funds have been cutting their holdings of emerging market assets to raise cash for redemptions and to reduce the risk of further losses. The rapid pace of declining global equity markets have caused valuations of some Asian stocks, using measurements like price-to-earnings ratios, to tumble to levels as in Hong Kong's case, last seen after the Asian financial crisis. The yen has weakened a day after Group of Seven powers issued a rare statement singling out the yen's volatility as a threat to market stability, so that may be the driving force behind this rally. Often after periods of severe sell-offs like we have had in the markets for the last month, there comes a tipping point where bargains look too good to pass up and investors jump in and pick up the bargains. The true test will be tomorrow. Was this just a one day relief rally for Asian investors, or will the rally pick up steam and we finally have a bottom in the markets.

In Europe the major indices are also in rally mode, breaking a five-day losing streak, helped by the surge in the Asian indices. Bargain hunters are coming into the markets, despite the fact that expectations for the economy are tumbling and the outlook on the corporate front is gloomy. There's too much bad news priced into these markets. Long-term investors can look through the dark clouds and can see the cheap valuations. The news has been so unrelentingly miserable over the last few weeks that there's every chance of a random bounce, and this looks like it. Speculation about the outlook for global monetary policy also heightened after European Central Bank President Jean-Claude Trichet said on Monday the ECB could cut rates at its November meeting. Metal prices recovered ground after steep falls in recent days, gold is up, and the price of oil is testing the resistance at the $64 level. This is setting the stage for a sharp rally in commodity stocks, which have been a drag on indices around the world in recent weeks. Heavily sold banks are also strong gainers after the Bank of England said in its twice-yearly Financial Stability report that global intervention should steady the financial system. "Bargain Hunting Tuesday", appears to have hit European investors, following the lead of Asian investors. However the euphoria is much more subdued in the European indices than it was in Asia....so far.

In North America, the futures are pointing to a sharply higher open for the US indices. At the time of typing the morning thoughts post the DOW futures are up 350 points and the Nasdaq is up 51 points. Yesterday, U.S. stocks fell to their lowest close overnight in more than five years. On the economic calendar we only have the Consumer Confidence numbers at 10am to offer any guidance, not exactly market moving numbers. The Federal Reserve begins a two-day meeting likely to culminate in a rate cut on Wednesday. The rally in commodity prices should bode well for the Canadian indices today, if they hold. Investors are used to Ruby Tuesday, so it certainly would be a welcomed respite if, "Bargain Hunting Tuesday" has some follow through to the North American indices.

Back in McFaulds Lake, NOT had an extremely volatile day, after the surprise announcement of a resolution to the proxy battle. We went from a low of the day at $.74 to a high of $1.24, to finally close at $.97, almost a 20% gain for the day, on well above average volume. What I found interesting, was how the chart had predicted yesterdays rally, as we mentioned yesterday morning, with the Harami pattern, indicating the trend change. Anyone who questions, why we should use charts when playing the McFaulds Lake stocks, needs to look no farther than the weekend chart on NOT. This is why many of us feel that the TradingChief site is an important tool when investing, the chart reading abilities on this site, is how many of our members have avoided becoming bagholders in the ROF stocks. On todays chart we have support for NOT at $.48 and resistance at $1.48, the wide range between support and resistance levels, shows us just how volatile NOT is presently. I don't believe I have ever seen the range this wide before, on the support and resistance levels on NOT's chart. The 13(MA) is at $1.06 and this is the important level that NOT needs to break atop of and close above, to indicate the downtrend is behind us. It has been since late July where NOT has been able to trade above it's 13(MA) for more than 1 trading session in a row. When you have a stock trading above it's 13(MA) it tells you that you are trading in an uptrend, instead of a downtrend and often it becomes a very important level of support. What a welcomed respite it would be for NOT investors, to see a trend change and finally be trading in an uptrend, after 3 months of pain, in trading in this gut wrenching down trend.

Today is NOT's AGM and by all indications it will be a well attended, highly emotional meeting. Many investors feel they have been sold down the river by Nemis, when he settled the proxy dispute with Rosseau before the final tally of votes. I tend to agree with them, after all the hard work put in by Nemis supporters to try and win this proxy battle. I think many investors who bought NOT in the $6 and $7 range are finally coming to the realization they most likely will never get their money back. However, stranger things have happened, especially, if the new team leading NOT, can get Bay St interested in the stock again. It was becoming increasingly obvious Bay St had lost confidence in Nemis. I am sure a few of the permabulls now realize what a mistake it was to give Nemis god like status and take everything the man said as gospel. The plain and simple truth is as President of a company, it was Nemis's job to pump his stock to investors. Unfortunately we have a situation where many novice investors are trapped in NOT, from much higher prices. They didn't have the money to be able to average down, to try and recoup their losses, if and when NOT's share price ever comes back to true valuations. Obviously it is impossible to ever know what NOT is truly worth, as it is an exploration stock, in the early days of exploring what appears to be at some point, a major mining camp in Canada's wilderness. I doubt NOT will ever reach it's full potential in share price, as a major will pick it off sometime in the near future. Hopefully with a new management team in place, even those investors who bought NOT at it's highs, will recoup their losses, if and when NOT is sold out to a major. Personally I think we see a major rally in NOT's share price today, but it will be extremely volatile. JMHO

The rest of the stocks in McFaulds Lake may also see a rally today, if NOT's share price does what I expect it to do today. However a word of caution to investors in stocks like FWR and FNC, todays rally may not be one that lasts. After the severe downtrend we have seen in the junior mining stocks, we are due for a relief rally. However, nothing has really changed in the world over night, I think this is only a relief rally and it will be short lived. The worlds economies are in trouble and a deep recession doesn't change overnight. Treat this as an opportunity to take some money off the table is my take on the situation. Stocks trading on the TSX-v are very low on the food chain in the investing world, they will be the last to recover and my bet is many stocks trading on the exchange won't be here in the next 6 months to a year. Those with money on the sidelines looking for opportunities, should not be putting their money on the TSX-v stocks at this time. However there are a few stocks on the TSX-v like NOT, that appear to be severely undervalued and this may be a decent buy in opportunity. Please use caution, there is lots of time to pick up bargains on the smaller stocks trading on the TSX-v exchange, don't fall for todays rally and tie up your hard earned money on these stocks. I just don't see today's rally lasting for more than a day or two. JMHO

Best of luck to all McFaulds Lake investors.



Al