open letter to the board of gbm

22 March 2010

Open letter to the Board of GBM

Dear Directors,

The following questions are from myself and 10 or so shareholders. They are grateful for the effort put in by senior employees and note that the company has excellent fundamentals, but there are still doubts as to the ability of the company, especially regarding the prospective timing and quantum of a share price recovery. They have raised the following questions:

1. Does the company intend to add strength at the senior executive/management level, and if so how, and by when?

(This question arises from a perception that none of the executive or board have a record of hands-on senior management of growth companies and that this team was not successful in preserving shareholder value twice in the past. Without an executive with a proven track record, the market may continue to discount the share price heavily below the price which would otherwise be commended. While the existing team without additional recruitment, may well prove their ability in time, some shareholders are reluctant to take this risk whilst forgoing other investment opportunities.)

2. If the company is not intending to strengthen the senior team, what other changes have or will be made to prevent a repeat of the past?

3. In the Offer Information Statement is the $ 1.25 million set aside for Capital sufficient to achieve full scale gold production and prove the 1.1 million ounces of exploration target into a resource category?

4. What is the projected post-funding timeframe for the company to be cash flow positive?

(Arises from concern that a lack of cash will often discount a companys share price by factors of up to 95% to 99.9%.)

5. Having read the section in the 4 page Supplementary Offer Information Statement, we are still unclear on the exact meaning of Exploration Target. Is an exploration target a Geologists hunch, or has serious work been done to determine these figure?

6. What is the level of confidence that the exploration target will be able to be a) brought into a resource category, and b) be economically mined?

(These questions recognise that 1.1 million ounces of exploration target, in addition to the existing 170,000 ounces could be a very significant change in the companys assets base and valuation fundamentals).

7. Are the financial projections as summarised in the Sophisticated Investors Fundraising Presentation on 26/10/09 still valid? (subject to a time lag of, wed guess 8 months due to your funding issues? We are most interested in your production, which for years 1 through 3 was around 6,000; 15,000 and 18,000 ounces, and direct costs of production which was around $ 600, $ 570 and $ 500 per oz?

Yours faithfully,
For 10 of your smaller shareholders.