Resource World Magazine

BFL MAKES A DIFFERENCE Prospectors Rock! NEW Exclusive Insurance Package Tailored just for Rockers! buybacks, you want dividends, and you want special dividends. You don't want us spending as much money. We recognize that…But what that means…(is) there is going to be less supply coming in." Short-term volatility, driven by market sentiment and fear, does more damage than the underlying economic trends. The demand for money back, instead of letting successful mining companies invest as they see fit, distorts long-term capital allocation. To compound the problem, mining companies are freezing capital expenditures around the world. This substantial scaling back of capital expenditure, driven by the fear of uncertainty, will certainly create a huge slowdown in future supply—again, a self-fulfilling prophecy. In this kind of market, what the investment community wants is no longer based on rational or desirable capital allocation. Unfortunately, this means that short-term market sentiment is replacing the thoughtful consideration of long-term benefits and the long-term success of companies. When we look beyond the market volatility and apparent uncertainty at the underlying fundamentals, we can see that China, the world's growth engine, is actually running in fourth gear, on a very stable path. China's 10-14% growth over the last decade made it the world's number two economy. Its slower pace of growth, which the consensus projects at 6-8%, is still very significant and outstanding growth, by any measure. The world has never seen an expanding $6-trillion economy, and even a reduced rate of growth to 7.5% in 2012 represents huge absolute numbers of increased demand in the still-developing Chinese economy. The relevant question now is whether the driving engine of the global economy february 2013 •ExclusivelyAvailablefromBFLCANADA •BroaderCoverage–DesignedforExplorationRisks! – Property – Liability – Kidnap&Ransom – Directors&OfficersLiability&More •MuchLowerPremiums! •ExperiencedStaffintheMining&ExplorationIndustry! •InternationalExposuresCovered! •SuperiorServiceCommitment! Contact Us for a Quote: Vancouver: Montreal: Toronto: Janet McLean Lisa Giannone Sean Hurley 778-331-8636 514-905-4318 416-849-3097 www.BFLCANADA.ca Halifax | Quebec | Montreal | Ottawa | Toronto | Winnipeg | Calgary | Kelowna | Vancouver Breaking New Ground in the Labrador Trough Direct Shipping Ore: Taconite Project DSO Project A JOINT VENTURE WITH New Exploration TSX : NML www.NMLiron.com www.resourceworld.com 19

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