Ann: Annual Report to Shareholders, page-28

Hi all,

We have at least $7 million in the bank. The AGM is next month. No problem there.

Even this BOD could not manage to squander that amount of cash before the AGM or the restart of production.

The real issue however is the absolute lack of faith that the shareholders (and the market) have in this current management.

The removal of Finch is a good start however we need to lose at least one more Director and appoint a real Mine Operations Manager - not rely on a Geologist with little underground mining operation skills...

I have no doubt that the quality/quantity of gold actually exists (as shown by Anglo buying into this mess) and numerous assays provided by OGX.

Once new management arrives then we can restart our machines 'with some minor adjustments' and slowly start mining our 'low grade' ie 17grams/tonne area! while we expand into our 'high' grade areas...

It is our ridiculous costs that are causing most of the problems... once we have put in place a decent management that can control our expenditure we can then build up our production.

When the AGM comes around next month there will be a bloodbath for some of the Directors who seem to be living in their own fantasy world. They will be caught with their pants down and even with the help of any 'friends' that they may have left in the Company it will still not be enough to stop the tidal wave of hurt/anger/frustration from the 'small' shareholders who still control 45% of the company!

Unless Directors are sacked/resign and a proper mining plan with a CLEAR timeline is provided then a lot of the BOD will be heading back to their days jobs in May because no other Company will want to touch them with a 10ft pole.

Long Live the Revolution!