Ann: Quarterly Activities and Cashflow Report , page-34

Yes, the SP is currently a disaster. That said, I've got no major gripes with the management. I'd rate them about 7 out of 10 in comparison to others. Reasonably competent and better than most. Unfortunately the world economic climate is very unsettled for now and HGO's cash costs are not that flash - so some holders are bailing....I'm personally optimistic that things will improve around the world next few months. In Europe, China, and the US. That said I'm thinking copper is going to settle in the $2.50-3.00 range for quite a while to come. Lot's of projects coming on-stream over the next two years while demand looks fairly flat...and further out there are some gorillas whose high production rates will limit any price increases. Anyway, if BH or Sumba come up with the goods...and KM brings costs under control....and financially assist in BH or Sumba development. We'll be doing fine. It's not going to be easy...but it'll be interesting. I'll be buying more HGO next week. I'm very hopeful that BH, or Sumba, or both, will deliver some great drilling results.