Borealis Exploration Limited Weekly Update for the Week Ended 25 November 2013 - Part I

######################################################################

AMTPF / BOREF, BOREY / CHOMF / COLCF / FWYPF / PHPWF/ PWCHF / RCHBF,

WheelTug plc and other members of the Borealis Family of Companies

Update for the week ending 25 November 2013

######################################################################

The following information does not constitute mandatory disclosure under applicable European Union and/or Czech regulations. As such, we are disclosing the following information on a voluntary basis only.

########################

We are attending Market Force this week in London.

Visit if you can, we will post the video of Isaiah's speech when available.

########################

WheelTug Tests

Major tests and evaluation work now underway on two continents.

This is big time, as usual.

We will announce when the tests and the evaluations of the data are completed.

########################

WheelTug Industry Adoption

Note this is meant to be taken in a spirit of fun:

http://www.linkedin.com/today/post/article/20131120054209-11846967-faster-airline-boarding-looking-at-solutions

Hmmmm.. A chairman of a major airline who is very interested in improving turnaround time. And 15% of his readers say it would be good to use *both* doors - which, of course, he points out that JetBlue does when the weather is nice and the airport is conducive. So it is good to know that JetBlue is already on top of this.

One wonders why the industry has not thought of something that could reduce ground delays due to ground staff and equipment *and* enable jet bridges for both doors to really speed up passenger loading and unloading. There must be *something* someone could do!

In all seriousness: time and time again we are amazed to discover that quite a few people in the industry have never heard of WheelTug despite repeated coverage from the New York Times blogs to the WSJ to Flight, Aviation Week and countless other publications. And many of those who *have* heard of it do not understand what it means.

Yet it remains *very* good news that airlines are thinking about more than just fuel savings. Just last week, the WSJ had an article on how United is trying to cut billions from its *non-fuel* costs.

I am sure they'll think of something.

In the meantime, we'll ensure that El Al, Alitalia, Onur, Corendon, Malaysia, airberlin, Jet, Israir, Malaysia, KLM, Icelandair, Unannounced and Volaris profit from what seems to escape the notice of the big US carriers.

########################

Slot Sales

Negotiations continue worldwide for an ever increasing number of Slot Sales.

As these negotiations are completed they will be announced.

########################

Current Upcoming Conferences:

These are all major events where we are presenting:

We continue to attend conferences several times a month:

November 25-26 Future of Air Transport Conference London, England

December 3-4 7th Flight Ops Conference Frankfurt, Germany

########################

WheelTug plc New Private Placement Memorandum

The current PPM is dated 02 August 2013.

It is available to qualified investors under Non-Disclosure Agreement.

Please contact kalin@wheeltug.gi

It should be noted that we expect all our current offerings to sell out in fairly short order. WheelTug® is becoming a reality.

Our Solicitors are now working on what should be our last Private Placement Memorandum for WheelTug plc.

As soon as this offering is sold out we can reasonable expect to commence work on listing WheelTug plc shares on the Prague Stock Exchange. The listing is subject to all the standard listing issues and approvals.

NO OFFER OR SALE OF SHARES OF WHEELTUG PLC IS BEING MADE HEREBY.

########################

Public Information about our Companies and trading platforms:

No improvement in third party reporting of our financial information. You would think that the financial reporting services would know some shame. If a shareholder relying on MarketWatch information sells out using the bad information from MarketWatch would the seller have a claim against MarketWatch?

Note:

http://www.marketwatch.com/investing/stock/boref/financials

Laugh or cry as appropriate.

Quarterly Financial Reporting:

Note that the unaudited financial results for the second quarter of fiscal 2014 ending 30 September 2013 have been posted at www.borealis.gi

http://www.borealis.com/investor/FY2014/Borealis_Exploration_Limited_Sept_2013.pdf

We continue to9 move forward strongly on all the development projects we have underway.

########################

Iron Ore Prices

One upbeat article and one downbeat: Both Copyrighted

Fortescue in box seat with iron ore surge

Date November 23, 2013

Max Mason

Markets Reporter

·

Andrew Forrest's future is looking much rosier as Fortescue Metals reaps the benefits of Chinese demand. Photo: Jacky Ghossein

The red earth beneath Andrew 'Twiggy' Forrest must have been shrinking at an incredible rate as he stood over his self-made empire in the Pilbara earlier this year.

In the five months to June, the Fortescue Metals founder witnessed a 30 per cent fall in the price of his company's most valuable commodity, iron ore, from its 2013 high of $US158 ($170) to $US110 per tonne, with many analysts predicting the slide to continue.

To make matters worse, Fortescue's share price tumbled 45.8 per cent to $2.92, slashing the value of Mr Forrest's 33 per cent stake from more than $5.5 billion to about $3 billion.

But in the second half of the year, defying expectations, the iron ore price began a resurgence. From its low, reached at the end of May, it quickly picked up much of the lost ground, sitting between $US130 and $US140 per tonne since mid-August.

Not to be outdone, Fortescue shares have surged 96.9 per cent, since hitting their low in June, to $5.78 in late trade on Friday.

Mr Forrest's stake in Fortescue is now worth close to $6 billion.

China's continuing demand for Australia's raw materials has been the driving factor behind the strength of the iron ore price and Fortescue.

'Iron ore is the most strategic commodity to China,' ANZ head of commodity research Mark Pervan said. 'It is their highest dependency commodity; they import about 70 per cent of their iron ore requirements.'

And that dependency is expected to rise. Communist leaders at the third plenum spelt out that China was keen to have less impact on the market, sending a clear signal that the world's second-largest economy was unlikely to keep propping up unprofitable domestic state-owned operations.

'State-owned enterprises that have high-cost, unprofitable domestic production, and are polluting the atmosphere aren't going to be propped up, that's clearly the signal that China is trying to send,' Platypus Asset Management senior analyst Anna Kassianos said. 'But things in China never happen fast Š [it could take] a couple of years for that to play out.'

Australia provides just more than 50 per cent of China's iron ore imports, but as expensive state-owned enterprises begin to shut down, that market share is likely to increase.

'In terms of iron ore supply, China will be more reliant on product coming from Australia,' Ms Kassianos said. 'Australian supply is much cheaper when you compare it to Brazil, especially on the freight rate differential to China, so therefore Australian ore supply is much better positioned to take advantage of any [increase in] demand.'

But not every Australian iron ore miner will reap the benefits of increased volumes to China. With infrastructure vital to supply lines locked up between a handful of companies, the success of smaller players will rely on deals struck with the likes of Fortescue, Gina Rinehart's Hancock Prospecting and QR National.

'There are others which are constrained because they don't have infrastructure solutions to complement their growth, like Atlas and Brockman. They're stuck because they're reliant on deals [and] you can't necessarily say deals will get done in the time frame that is required and at the right price,' Ms Kassianos said.

Because of these constraints, she said BHP and Fortescue were the best placed local miners to benefit from increased volume output to China, albeit at a lower price.

Analysts agree long-term iron ore prices will decline, but they disagree by how much and when.

Mr Pervan expects the price to come off a bit but to hold in the $US120-$US130 per tonne range for the next 12 months.

'The issue right now is that steel production [in China] is running at very high levels and this is creating this upside support for iron ore, well above where people thought it was going to be,' he said.

Goldman Sachs commodities analyst Christian Lelong said he expected the iron ore price to hold in the short term and then begin to decline from the second quarter of next year, and then further in 2015.

'This year, the market was in balance,' he said. 'But next year, supply starts to grow ahead of demand and that means you start seeing some mine closures, initially in China, but we think it also means the iron ore price starts to trend lower towards its long-term level, which we estimate at around $US85 a tonne.'

Read more: http://www.smh.com.au/business/fortescue-in-box-seat-with-iron-ore-surge-20131122-2y1kb.html#ixzz2lcfTtFqj