sent an e-mail to CSG today with the following questions using an excerpt from Wolverton. will post responses upon receipt.

I have copied an excerpt from their coverage, my questions based upon their statement are in red, if you can provide a statement for each it would be appreciated.

The efficiencies to be gained from a thoughtful and well implemented engineering could turn this company into a different animal altogether.

Based on what we saw we believe that the operation can likely achieve an exit rate of 50,000 ounces per

year by the end of 2009 at fairly minimal cost, with the switchover to larger mining trucks and shovels. Is that planned?

The critical juncture for this to occur is in June, upon the expiry of their current mining contract.

The addition of more screening/scalping capacity should lower their operating costs by allowing a larger proportion of ore to bypass the primary crusher and be delivered directly to the pads. Any plan to acquire this capacity?

During our visit we confirmed that much of the ore material is very friable and does not require any crushing over and above the breaking action of the

blast. Having this fraction bypass the primary crusher should lower operating costs. We believe that a successful 3-pronged approach of

1) lowering operating costs,

2) expanding production to +50,000 ounce per

3) growing the resource to support a +10 year mine life (at the expanded rate) will make Castle Gold a very attractive acquisition for other aspiring junior miner’s in Mexico.

Is this something CSG management agrees with and does it believe it can be achieved?

Looking forward to your responses.

Orgy