Ann: Paulsens gold bonanza - more high grade resu, page-9

re: Ann: Paulsens gold bonanza - more high gr... The grades from month to month production will always differ and its definately important to take note of the grade in Novembers production and that it decreased but I guess future production all depends if your hitting high grade ore the deeper they go which has been confirmed by stage two drilling results.

We are still mining and processing ore from the stage one mine plan atm. Stage two results below have been released in past announcements. See announcement results from the 09/11/2010.

"1.9 m @ 39.6 g/t gold (690mRL) Depth extension of UZ
inc 0.5m @ 471 g/t (downhole intersection length)
1.7 m @ 46.3 g/t gold (674mRL) Depth extension of UZ
4.8 m @ 30.7 g/t gold (694mRL)
1.7 m @ 26.3 g/t gold (666mRL) UZ2
2.4 m @ 23.6 g/t gold (673mRL) Depth extension of UZ
2.1 m @ 20.0 g/t gold (636mRL) Depth extension of LZ
1.4 m @ 64.0 g/t gold (740mRL) New Echo lode"

The 0.5 meters are 471 grams a tonne shows to me that we will have further big production months ahead. Just need to wait untill we get that deep. I dont think it hurts to trade this stock but I also think it is a good idea to have a long term parcel locked away.

Then we have Stage 3?? Already confirmed that the gold continues at depth and we are waiting on 2 results..with visible gold in the drill cores.