Hey Skier

I don't think you realize how difficult it is for a jr mining company to raise funds. No person who holds a warrant would excercize it even one day early unless they were going to immediately sell it at market. All the long warrant holders are not going to do that. The value of those warrants is locked and part of our dilution, so you might as well turn them into cash.

I can assure you it is extremely hard to do. Even when your stock behaves as strong as ours does most jr mining companies have a lot of difficulty getting cash in the bank. For example: if there was a pp call right now at .65 how much do you think we could raise? would you buy? if so, how much? Without 43-101 compliant results this is purely a highly speculative play. Even with assay's, we would need to offer a significant discount to entice new money to invest in a pp that you are locked into for 120 days!

At our present burn rate of cash we really don't have far to go before we run short. Management needs to sign contracts, order equipment and hire staff. You can't do that unless you know the money will be there to pay the bills............What if gold drops $100.00/ounce next month? Then raising money would be very hard if not impossible. Redeeming our warrants would raise close to 6 million dollars which would be enough to make arrangements for more drills, staff and the infastructure to put them to work with virtually no dilution relative to the cash flow.

Bought deals are very expensive and the reason companies do them is because you are guarranteed your money and you can sign contracts and fix your plan. When you do a market pp you literally need to wait till you are fully subscribed before you can commit to anything. That is very hard on managment.

This company will definitely need to dilute! The only way to avoid that is to borrow at market! This type of venture doesn't exactly borrow at London Inter Bank Overnight Rate. We would be paying very high risk interest with lots of personal guarrantees. Would you sign a guarantee putting your house on the line for a jr mining company?

This is one of the most difficult businesses out there. That is why it has such a high risk/reward ratio. please don't get lulled into a false sense of optimism that the trees never stop growing into the heavens.......they don't! .....many outside influences have scuttled the most promising plays and investments you could possibly imagine. I love our chances with GNH. But we as owners need to ensure managment gets the tools to get the job done for us. That means cash!

I simply don't understand why you think there is a cheaper way of financing?

Bird in the Hand!

All the best............Carry