Hi Morsetrader, I have been involved with NSL for a number of...

Hi Morsetrader, I have been involved with NSL for a number of years now and have had discussions on a number of occasions exactly the topics you raise with Cedric, who is only to happy to speak to any shareholder on any subject. The indication from Cedric have been that Magna have very strict guide lines in terms of how much stock they can sell at any given time, to date they have been a very positive force behind the company and in fact the stock has appreciated in price since they got involved not fallen in to a "Death Spiral " as you put it. I would also note that they have been converting their debt into stock at higher prices on each occasion, which to me indicates that they believe in what NSL are doing.

Now in respect to the coal tenements the company is of the belief that Bermenie are purely being opportunistic and are trying to extort payments which they are not entitled to because of NSL's disclosure obligations under the ASX listing rules. The company is very much of the belief that the law suit Bermenie have filed has no legal standing and are prepared to defend that position. The amount of damages that Bermenie have requested is also a pie in the sky figure intended to be used as leverage to scare NSL shareholders.

I hope that sheds some light on the situation for you, but please do not take my word for it and feel free to discuss these issues with the company.

Please do your own research.