Michael SmedleyKarnalyte ResourcesKRN.TOCOMMENTJun 06, 2012

(Market Call Minute.) Feels the potash market is oversupplied.

An okay name from a fundamental perspective. Very speculative. Doesn’t see much upside for the commodity.

Fertilizer section has been less glamorous than gold. Has some way to go down maybe in terms of commodity pricing. They have a big Indian partner so he doesn’t expect this will be taken out. At bit smothered by the general disinterest of the sector at large. Tremendous management. You’ll have to be patient.

This has been strongly rated and most people seem to like it. Has a solid investment partner now. The problem he has with a lot of these smaller resources is that it is hard to see that you are getting as big a bang for your buck as you might in another sector that has been re-rated and is recovering with much better fundamentals. If you own, he would Hold or redeploy your cash into another sector.

(Market Call Minute.) One of the more attractive names. Recently got an investment from an Indian firm.

(Market Call Minute) Too small, too prospective, won’t happen.

Had a good move the last few days. Sold off because of regulatory concerns on a bought deal that got hung in the market. Came up with a good pre-feasibility report on processing some of its by-product. Management team has been trying hard to demonstrate the efficacy of their technology. Stock has gone up on speculation of a takeout or a joint venture with the senior partner to commercialize the business.

Fell afoul of trying to issue shares when an Alberta Securities Commission employee referred its mining process to a BC Securities Commission, which delayed it past a vital date. By that time, all junior potash companies were in a state of disarray. Put out an interesting study on magnesium that is in their assets but he feels the potash is more important.