brief update, page-26

Qantum et al.

It's been a while since I posted something of substance in relation to SBR.

From a personal view and prior to me beginning this post I would like to commend the majority of the SBR HC thread for their continued efforts. Generally speaking there is an insurmountable amount of talent, and 'hypothetically' speaking from a range of professions - from geology to law, from engineering to accounting, from mathematicians to technical traders. Going forward this 'should bode well' for SBR.

As I feel the discussion has turned from internal company conflicts of interest to establishing the next steps in the process of potentially becoming a mining company I personally feel like I may now have something to contribute.

Often the best way forward with any company, yet particularly commodity stocks, is to first understand/ comprehend the fundamental 'transition' process.

Currently all SBR has is a resource of a 'conceptual nature', many may differ with the following propositions and this is fine; essentially this is my representation and HC is of course a public forum. There is no right or wrong as evidently "nobody knows" the future - IF we can first agree on this point (which should be easy!) then maybe we can agree on the following.

FACTS -

(a) Cu/Silver Cr resource has been preliminary established
(b) Drill trend/ target at Guchab has been preliminary established
(c) Cash and or cash equivalents is at ~$4m
(d) SBR has additional "prospects"; I.e. Schlangentel, Nehlen, Border (Zn)
(e) Nearby infrastructure/ low CAPEX 'if developed'

QUESTIONS -

In relation to FACTS as at above:

(a)

Guidance ONLY on resource estimate, therefore there is currently ONLY a preliminary forecast - in my 'personal opinion' irrespective as to a likely current trend being established (and continuation 'conceptually' of that trend) there is 'nothing at present' that the market can viably factor/ apply $ wise at Guchab?

Simple question "How can any brokerage house promote SBR at present"? - what does SBR currently have that I would want to buy/ or can promote other than a 'concept'?

(b)

Going over and over the current data, or as a few have labelled 'red ants' - how much Cu do we actually 'viably have'? - IF one takes the current 'established area' (irrespective as to potential trend/ area) and applies even a generous .25% perT I personally can not see Guchab as economically viable. "Separate Note": Currently SBR are not even close to mining/ production permit territory (2 to 3 years away?) - have positioned this here as many are suggesting there should be a plan going forward (how?) - I base this on (i) personal judgement via public announcements (ii) other current commodity miners i.e. AVB / HCH and (iii) 'lag' in multiple areas, particularly assay results. IF we/ SBR do not have an established resource estimate then how can we/ SBR provide you with a detail as to future plans? (rhetoric)

The process map suggest -

(1) establish resource via 'discovery'
(2) establish 'resource increase', via infill/ other?
(3) establish CAPEX/ PFS etc.
(x) seek funding; debt/ equity
(x) seek permits
(x) additional discovery whilst production planning

This given, and as we are all forward thinkers, what does SBR do next? - it's very simple; you have $4m in cash so you get drills in and drill; and ABOVE ALL you do not let the market wait for months before assays/ public announcements are made on progress. SBR are in my personal opinion STILL IN discovery mode - there is presently no tangible evidence that this will become a mining company.

In line with the above, Guchab (more importantly mgt.) needs to produce some 'tangible figures'. Again I reiterate 'What do we have'? (specifically have)

(c)

Cash situation is good, in fact better than most early explorers so as shareholders we can not complain here.

(d)

"Yes" (prospects), but the only catalyst/ company changer I can presently see is Border. The zinc market is looking a great deal healthier than what it was a few years back and Border may be economically viable. On this note I personally can not see SBR developing it, too much time and too much work involved for likely small reward.

Schlangentel and the other prospects at present were/ maybe still are a diversion from the potential make or break of this company - in my opinion Guchab WILL BE their key to success. IF it falls over then there will be a lot of sticky mud! Again this is my personal opinion and others can disagree YET always please take a realistic view. "Ask yourself", IF Guchab has produced such Cu results and we are at ~10m market cap then what would Schlangentel do any different that a Kaskara prospect / or a Guchab resource didn't / did?

(e)

"Yes" (infrastructure), and this is to some degree what keeps me sticking SBR out. Once establishing a resource / permits the process to mining given current local infrastructure should be relatively straight forward. I have applied a range of $20m / $30m for CAPEX. This would likely be funded mainly via a debt facility with an attached agreement / option.

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Apologies for the long winded post BUT I have been quietly watching from the sidelines, and although most are in agreement with the liklihood prospect WE ALL can not forget 'it is a prospect, and nothing more' !!

Good night, NL