quarterly report out, page-8

Cheers verytricky,

It's been a good year for EXM regarding it's projects, with a major accomplishment of increasing our gold resource and adding a significant amount of copper in the process. We've also achieved the results to validate the projections that there is much more high grade gold to mine at Tennant Creeek. So we can expect to add a lot more to the resource, especially at the less explored targets such as Rising Sun and Weabers Find.

The negative side of the year is the appalling state of the share price leading to an impasse whereby funds cannot be raised easily. This has not been Excaliburs lot alone, all the gold juniors are smashed beyond belief, and major producers well off their highs despite high gold price in Australian dollars.

I would think that EXM is in a pretty safe position to weather this downturn, being able to make our $3m cash last until we see some major upside to the gold sector. We've achieved the first round of drilling and can now do the scoping and feasibility studies whilst conserving cash. The main threat would be from being taken over at this precariously low sp, but that doesn't seem to be happening with all time low volume turn over.

So we sit and wait for the tide to turn in the gold sector, for the inflationary forces of the massive increase in US dollars to send gold a lot higher. Meanwhile we can look forward to the finalisation of the scoping and feasibility studies which are due by the end of this calendar year.