Ann: Fifteen Mile Stream Project Update, page-12

The stock is trading at less than cash backing, so I purchased some here today.

To me, it looks like the company has made a strategic and rational decision, given the circumstances that was being unduly "forced" upon it by the environmental regulations, government permitting bureaucrats, community lobby groups, and local indigenous councils. Some were against continuing with Touquoy, while others were stalling with permits, and that could have gone on forever, and possibly to legal appeals in courts.

While somewhat disappointing, it never-the-less enables them to cancel long-winded environmental processes, and concentrate on getting the new project up and running, with simpler regulatory restrictions, and without the need for a new processing plant, since it looks like the Touquoy one can be repurposed, which is good news, but we don't know yet at what price, but it should be modest.

There will be a decline in gold production for the year, but that will more than rebound the year after. And they have a war-chest for any M&A activity they might be looking at, which would not surprise me.

I think it was a good decision announced today, albeit one that was forced on them to some degree.

Gw