committed to improvement, page-28

Hi PS

The reason I said HGO has around a 5 year mine life on the current resource estimates is due to the overall Giant pit in the big plan has become smaller. HGO has more ore on its lease, but at this stage are not able to mine the original Giant pit plan, because of environmental issues. HGO does have a stockpile of ox and low grade ore that will be processed once mining from the pits are finished and may extend the life by a few years above my estimate. HGO has done a very good job in the last 18 months going from hiring contractor to owner operator. This has resulted in HGO paying down it's debt quickly. At this stage there is no exploration going on at the Kanmantoo site to increase it's resource. HGO are looking at other areas on their tenements The query I have is HGO say they will truck ore from other mine sites on their lease if they start mining else where to their processing plant. The issue here is how high can their Tailing Storage Facility (TSF) go before the council says no more. You can see how high it is from the main road. HGO have many obstacles due to the mine being so close to the city. One by one I am sure they will over come them and my self I would like to see HGO grow and management are heading the right way by looking outside of Kanmantoo. PS you are probably right about HGO will struggle to get share holder approval about acquiring RXM in the foreseeable future. HGO and RXM merging is what I would like to see and the size of RXM ore reserves would of given HGO a very long mine life and future. HGO are doing well at Kanmantoo and for all shareholders I hope this keeps going.