Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-33

This maiden drill program was a mistake and they should never have drilled there and only did because they had an active drill permit over that part of the tenement the previous owners applied for. PM wanted to wait for new permits to drill where he believed was a better chance of success. The lead broker pushed to get a drill program started to get some early impetus happening with the SP. I know this because the lead broker told me himself in a 3 way conversation with my broker, this was the lead brokers first rodeo so SH all suffered the waste of this drilling program. From memory 3 holes hit voids in this program.