Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-12

I was very disappointed the capital raise occurred prior to the release of the drilling results. I considered to be a red flag and, when the Directors didn't participate, it was a further red flag.

I have appeased some of these concerns. Three of the four directors already hold largish holdings and one invested $250,000 converting securities in mid Dec. Maybe they didn't have the cash to participate.

A couple of posters suggested NWC may need to purchase the neighboring mineral rights where the ore body is indicating it is extending beyond NWC's boundary. Thus, buy the mineral rights before they become more valuable. This theory sounds plausible.

My theory is the quarterly report shows NWC is spending $5.2m per quarter but it only had $3.0m left in the bank. The market would have expected a capital raise. Waiting for the drilling results may have produced a subdued reaction to positive drill results. Hence, raise the $20m now and allow the market to respond to positive drill results without a threat of a capital raise.

Consequently, I am holding.