Ann: Grant of Mining Lease for Agate Creek Gold Project, page-34

Hi Towie   These comments are not necessarily directed specifically at you but are just my thoughts

about the results of today - I did not expect any significant increase in the SP as a result of the ML

approval but I expected a slight increase and certainly not a decrease - the news obviously brought

out a lot of traders and it appears more sellers than buyers - I still think the main game changer in

terms of the SP is the statistics relating to the first batch of gold production - if good then SP up

to who knows what but if poor "watch out"

I think that the result of today's trading indicated that there was some profit taking by investors who

were interested only in the quick return (say double your money short term) who were not interested

in the long term potential but in my opinion only small change compared to what can be achieved.

I did some research on Monarch Gold and they purchased the black jack plant from Citigold

and set it up as a toll processor for region including for Citigold Corp which I think still uses it.

This makes sense to me as it is a significantly high cost for small miners to set their own plants.

I am not overly concerned with the results of todays trading as I think the main emphasis will

be on the long term increase in the SP of the company shares as that is the only way the

chairman can get the profit he obviously wants and he cannot get it short term in trading on

the ASX as it would take too long to dribble the volume through without lowering the SP.

I remain hopeful for the medium term .  Any and all comments welcome               TMan