Ann: Update on Gold Production from Agate Creek Gold Project, page-27

You startedthis company “has just got out of the red” – I do not understand how you cameto this opinion as they haven’t reported any cash received yet.

Their currentand medium liabilities are also fairly large considering their potential receivables.

.$500,000loan repayment due to Maroon`s

.420mil convertiblenotes, value $2,100,000 with 15% interest/ annum ($315,000)

.$2,000,000loan facility (not sure on drawn down amount at today’s date)

.Land holderagreement payment

.Indigenesholder payment

.Royalties ongold and silver (I think they stated only their share – however last time theyhad to end up paying the whole lot)

.Current drillingprogram.

.Current workingcosts all-inclusive of wages etc

Nowconsidering the costs over the next few years, why have they hinted that theymay pull out of this 100k tone agreement before the full 100k tones iscomplete?

Why arethey only going to focus on further exploration after this mining deal?

Looks likethey are only looking at funds to support working capital. Why not more? What’sgoing through SB`s mind?

any thoughts