Hi Anjb341,

James Tilsley is at home mostly lately, both he and his wife have had health issues but both are on the mend as I understand it from a few weeks ago. JT is still involved but those health issues have kept him from regular visits at the site. Hopefully, that will change very soon.

Frank Glass is our consultant geologist whose expertise is macro geology ie he looks at major fault lines accross continents, lying kms below the surface. He is also well respected and has put some big money down on our company. Time will tell if he is right.

Part of the problem for GNH right now is a crisis of confidence. The long awaited and highly anticipated results so far at Snow White have disappointed vis-à-vis traditional mining results. I did get an email from FC explaining that because of the nugget effect, they do not drill for grade but for structure. They believe that these parralele structures run very deep and can have decent widths and they are drilling these very methodically against strike. This tends to give us rather short intervals and the grades were not great. But the longs need to remember that the drill does not represent our grade very well. The thickness is also the smallest of the dimension of X, Y and Z. In this case, we have X being 5-10m for example while Y could be 100m and Z could be 1000m. We just do not know yet what those other variables are.

However, when you combine the long delays with results that are poor compared to market standards, you will get a run on the stock. I think we have a bottom at 22 here but God help us if the bulk samples are not good. Laval's Mountain is a wild card. We did not hit any VG there (little good that did us at Snow White so far) but we did hit some sulfides which we did not have at Bellechasse-Timmins. Sulfides will act to concentrate gold if there is any there and may result in some nice unexpected grades. This would take the market by surprise and I would be a buyer if that was the case.

At this point, I am still not buying GNH. I am willing to pay more to know more. There is probably great value in buying right now but the psychology of this stock is so damaged right now that good results would probably be sold into by those wanting to get out when there is volume so I believe there will be an occasion to buy shares at decent prices when we know more-they just will not be at 22 cents.

The CMM rumors are interesting and even though there is always risk dealing with Russians, I am still betting that any take over will happen at a decent premium to our current share price.

Hope this helps,

Glorieux