I have been an avid supporter of higher gold prices for about 1.5 years now and despite varied opinions on the subject, I believe that gold prices have a ways to go before topping out, 3 years is my best guess at this point.

My main reasons for this is the rush by countries to devalue their currencies to support exports. This event alone will be very supportive of higher gold prices and trying to get the IMF to steer the world currency war is a big joke as every country will do what it needs to help itself and it's people. I see no end in sight for this process and it is creating a situation where anyone who wants capital preservation is buying gold. The defacto reserve currency of the US dollar is in dire straights and this will be supporting the gold prices. Smaller economies need to defend their currencies from all the cheap money from the rich countries and we may see them continue to increase their gold reserves.

The other reason is interest rates will keep being very low for at least a few years, 3 years or more IMO. I just renewed my mortgage and locked in at prime minus 0.6%, variable rate for the next 5 years. At 2.4%, this is extremely cheap money and I do not believe we are going to see rates go much higher than they currently are(if anyone is negotiating for a mortgage now, pm me and I will give you the info to help you leverage your negotiations). As a matter of fact, I believe we have a bigger chance, especially out of the US to see rates go lower. Prime in Canada stands at 3% right now.

These low interest with a good probability of going lower (QE2) will be very supportive of higher gold prices again.

GNH will benefit from these higher prices as one of the best explore Co's out there. Currently, we may be dealing with some damaged investor psyche after the share price plunge of 2 weeks ago but make no mistake here, the fundamentals of the company are very strong.

We are priced at $29 per ounce (non 43-101 compliant which explains this very low price per ounce) for the known zones of T1&2. We will be doing some definition drilling here in the next 12 months in preparation for a 43-101 resource estimate. This will increase the value per ounce our company receives.

However, the biggest driver of our share price will be finding new zones of ore. The Snow White zone is not included in the 2.46M ounces (non 43-101) that the company has. If this zone proves to be what it seems to be, we will be more than doubling our ounces of gold. This would in effect support not only a double in our share price but probably tripling it from the current levels as the question of "do we have enough for a mine" will be answered beyond question.

Institutions looking at us for the first time, and there will be many in the new year will see:

Gold

Quebec

Great infrastucture

High tonnage

Good grades

Excellent BoD&management

Trustworthy chief geologist

Huge land position with 100% interest

This kind of list of attributes will get anyone's attention in this gold crazed market. So sit tight, accumulate at these low prices, our time will come!

Glorieux