Conclusions -

We have proven without any remaining doubt that operations have been on going through the period of the shut down via Satellite photo, since February 2014.

At the Roy Lloyd mine, stock piles were accessed in 2014 and ore was processed by the company through 2014 - 2015 calendar years. Stockpiles that were visible in 2014 were reduced by summer 2015 at the Jolu mine. We also saw how the roads were clear leading up to the Star Lake/Fork Lake Mine location after a spring 2015 snowfall. Underground tunnelling would have continued at Jolu and Star Lake, since haul trucks were being filled at both locations.

We also saw how an electrical cable was attached to units at the portal of the Jolu Mine, suggesting ventilation was active, meaning mining operations were active.

Then we saw that a wasterock stockpile, already large had been started in 2013 and by the time of the most recent photo, in May 2016 shows an immense wasterock stockpile, more evidence of intensive daily underground activity. Very highly likely the wasterock is carried from a number of locations to the EP Mine location.

The same electrical hookup was left at the EP Mine portal, suggesting that operations are ongoing. But what operations? The ore processing unit disappeared, which was used to concentrate ores.

We may have inadvertently proven that mine activity proves the thesis that financing was raised in two tranches from ores at the EP Mine and Roy Lloyd mine. The first tranche was to supply doré in a swap for cash in an asset-based financing in calendar 2010 -2012. Once the doré was supplied, the second tranche of capital was raised in 'borrowing from the borrowing' to pay the ongoing costs. meaning all capital used to pay for operations over five years until 2015 was from the asset - based financing, in the amounts of hundreds of millions of dollars.

The cost of capital for the revenue-based financing and five years of operations equals the remaining capital in the asset - based tranche. Thus the remaining capital from the asset - based financing can be swapped without any taxes to the mining company. But the asset - based financing is essentially incomplete until the revenue based capital is implemented, which was done by May 2016. It would all have been in place for the notice to default in April 2016.

We are also weeks beyond the calendar days limit of the stay of proceedings, with no immediate seizure of assets, which lends credence to the structure of finance and that the company resorted to the BIA act pro-forma. There has also not been any formal discharge of the bankruptcy proceedings. The company was not placed under CCAA, and there was no credit event.

The company stock is very closely held, otherwise the warts and features such as an illiquid stock with no bid held off exchange and pro-forma bankruptcy would not have occurred.

Thus we are correct in all of our assumptions of the mining company so far.

-Assumptions

We are in need of new assumptions, however if we are to continue, while we await more resolution on the balance sheet.

Why would a mine need an electrical hookup and no ore processing and no vehicles visible at surface as things stand at the EP Mine portal?

If you will remember correctly, mining and ore processing took place underground at one time at the Preview Lake mine, as it was in the boundaries of a national park. Why wouldn't the same occur on various prospects in The La Ronge Gold Belt, as it has already occurred in the past?

Why such unbelievably immense wasterock stockpiles, unless rock is being removed in vast quantities to prepare for underground processing? And perhaps in several locations at once? If the surface buildings are removed, then there is little other possibility. The immense size of the wasterock pile gives it away.

There is also a lot of generating (four massive generators and a large diesel tank) capacity at the Roy Lloyd mine, but no visible mill in place, could it not be that Roy Lloyd is one of the few mines in the world to rely on underground ore processing?

The following is an example of how mining can essentially be changed to process ores underground in the South African mining industry, and how a company might benefit from using this method:

http://www.gekkos.com/documents/038PotentialBenefitsOfUndergroundProcessing.pdf

-F6