Ann: Quarterly Activities Report, page-7

Quarter was below expectations but YTD forecast is still in tact so its a timing issue as they stated with gold pours at quarter end rather than underlying productivity issues.

The first half was always going to be slower because of the higher stripping and lower grade at Karonie.

What I am more interested in the seeing the company realize its growth potential through exploration which it is.

Exploration is charging on all fronts at Deflector, Santa Fe, Daisy and Aldiss and Daisy East which bodes well for reserve increases. It's the first time I've heard Daisy East mentioned. I'm still not sure what's going on with Daisy North but there's potential there as well.

Looking very much forward to revised mining plan at Deflector and the size of the Santa Fe open pit.

I am pleased to see that there is now further exploration at Rocky Ridge to the north of the Woodleys lode at
Rothsay, Thunder Ridge at Aldiss, and to west of the ultramafic contact at Deflector. This bodes well for further resource increases.

Hopefully the laboratories get these results out soon as I think it will provide for significant reserve/resource increases.

59g/t vein grade and 8.7g/t face grade at Rothsay isn't too shabby either.





Given SLR has over $400 million in losses I'm not interested in dividends as they will be unfranked. I'd much rather they use the losses up and get to over $500 million in cash which can set them up for a serious acquisition to take them into the top tier of producers.

In the meantime Blackcat (BC8) is having lots of exploration success. Another option might be to acquire GCY and MGV - MGV has high grade gold that could be shipped to the GCY plant down the road. That's a synergy that is worth looking at.

SLR increased the value of their shareholding to $15 million despite lower share prices so maybe they've been accumulating - just speculation on my part there.

GLTA/IMHO