Ann: Gifford Creek REE-Nb Carbonatite Update - Mangaroon, page-76

Hi McKhenry. If I may, I would like to share a few ideas with you based on your statement about understanding the markets better. DRE has a low market cap compared to the innate value of their resources and ground position. That is not just my opinion and the market is often wrong for a time at least. The commodity cycle turned a while back and is only modest, yet becoming clear now. Capital rotation out of paper assets into tangibles for too many reasons to list here. Sentiment is improving on the smaller cap end of the spectrum as a result.

Gold has led the way but I believe some savvy investors are in rotation mode and DRE obviously caught some attention, of a large, or a few larger players. I sent a text to Dean yesterday about this; stating that the carbonatites have a higher value than the DRE market cap. He believes a number of assets have a higher value, but that is not investment advice. It is clear he is not alone judging by the price action today.

The news from yesterday had to filter out and it has. That is why the delayed reaction as due diligence had to be completed before heavier investment took place. Some day traders may be playing with this now that a large rise has been printed. That does not mean the value is not there as many different styles of investors play the markets.

I do not think this is a pump and dump. The Board and ground position combined with results and prospects make this an interesting play according to the $600k invested already this morning. Who knows how much they want to invest? Then we have the technical aspect on the chart. A nice base, wide buy divergences on money flow, RSI, MACD and a cheap price combined with the news catalyst and drilling are causing the buying.

If you think a negative poster can push price down, you may be right, in the short term if the volume is low enough due to shocking sentiment. Hate breeds hate. Slander and fear breeds doubt and fear; all very damaging. Some people revel in that. When volumes are high the opposite is true in either direction. I kept saying price is a show. Industry insiders I have worked with over the years have told me how easy it is to push price around. It is true that early exploration was not substantive enough to attract major buying but it can put a stock on a watch list or two.

TY, Mangaroon and CY are prospective and the drilling for shares is a $1M vote of confidence. Independent specialist (successful) geo's were bought in by DRE to verify and input from experience. Their views carry actual weight and may have also filtered out or formed part of due diligence.

Breakouts from a base come with power because the upside (right or wrong) looks substantial. I am happy to hold because I do "believe" at this stage that they will rise again. The team, culture, backing, additional support (academic and localized experience from successful geo's that have discovered before) and the ground position are combining with the other factors I have mentioned above.

Enter spec stocks at your own risk.
GLTAH CW
Egg on the face of one poster here would be fun to watch, if this plays out as hoped.