re sprott and todays roller coaster, page-46

Hi Def,

All similar arguments and similar metrics for Mag Industries in the Republic of Congo and they could not raise the funds.

This last capital raise of STB showed how difficult it was to raise only $20 million.

The European financial crisis has certainly thrown the switch to "risk off" and the risk in investing in a small potash company in an obscure country with high country/regional risk should not be underestimated, irrespective of the quality of the asset.

The positives are there as you have noted and I do believe in the prosects of SouthBoulder or I would not be invested in the company and I exercised my rights to purchase at $0.55.

However, having been substantially invested in the 2008 potash jr. run ie. KCL, API, WPX, MAA, AAA, CAJ and RAY and analyzing what is required for successfully building a potash mine, financing is at the top of the list assuming that the resource is appropriate.

There is a distinct reason as to why there has not been a greenfield potash mine built during the last 20 years and that is the very high cost of the mine. Yes, STB has better financial metrics however the cost of this advantage is being in a remote area of the world with overall very high risk and this risk substantially reduces the overall investment pool for STB.

On a positive note, Vale has just entered Ethiopia, so the worlds largest and second largest mining companies are now in the area.

http://www.2merkato.com/20111229727/vale-enters-mining-sector-in-ethiopia

Sam