Good Morning

In the press release of June 2nd , the following 4 reasons were given as to why management are asking for a 30 to 1 stock split….. I believe each reason is without merit: I also believe that one of the reasons, which is to enable financing for acquisitions of other exploration claims, is just as (or more) dangerous than the 30 to 1 stock split itself.

REASON FROM THE NR:

(i)increase the individual common share price to exceed the $0.05 TSX Venture Exchange minimum per share price for certain financings;

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We do not need this kind of financing: We have made a joint venture with Uragold and it is up to them to provide the financing. This joint venture is based on the most important part of our wealth as a company, which leis in Timmins and we know after spending millions of dollars for a resource estimate that the gold is there: It goes to surface at a 95% recovery rate.

Frank needs to provide shareholders the approximate sum of that minimal amount of money necessary to keep our claims and annual fees paid: this is what we must do as we wait for the market and Uragold.

If Uragold fails to comply then we can surely raise interest VIA another Joint Venture at that time and the market will most likely be back.

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REASON FROM THE NR:

(ii)reduce the number and increase the price of individual common shares making them more powerful incentives for vendors of mineral properties in connection with a potential property acquisition agreement:

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Frank is interestedin promoting the company in a new surge to buy other properties: This is so alarming: it will bring on more debt through salaries and law fees and other expenses, while diluting our shares with these acquisitions of other properties at a time when we our concerned with our own survival.

This proposition may be beneficial to Frank, if he continues to draw a salary in access of 100,000.00 a year. We cannot afford these properties and the added annual debt service and we cannot afford any more salary for Frank and all of the travel and hotel and othe expenses.

We need a caretaker of our property through the remainder of this bare market. If Frank does not want to play this vital and rational role then I would like him to resign.

I have done a lot of consulting with long time shareholders many of whom understand better than I, what has been going on with Frank and his salary and Sasha and the salary he used to get and other people who were hired to do ‘professional’ things for a lot of money: NO MORE:

This has been so hard for me because I have had some good times with Frank and he has treated me well. BUT, I never knew back then what I know now!!

Lastly on this: Even if we should be thinking of acquiring more properties, vender would know full well that stock splits are dangerous as they represent opportunity for the stock price to fall way more than it ever so could otherwise: a vender, would probably take advantage of this fact, and wait for it to drop again before any deal is signed:

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REASON FROM NR

(iii)and (iii) increase the individual common share price to a level which may meet investing guidelines for certain institutional investors and investment funds,

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Please know this is not an issue: What institutional investors are interested in the Venture Exchange ??: What ‘funds’ are interested in Junior Explorers?

The large corporate investors are more interested in the broader market and often time do not bother with the venture exchange even under healthy venture conditions, let alone bear market as is the case now.

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REASON FROM THE NR

(iv)as well as making changes in the price level of the common shares less volatile on a percentage basis.

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Shares will not be less volatile on a percentage basis!!

After the 30 to 1 split it’s very easy for 30 cents to go to 15 cents in the same day: Everyone knows this.

Volatility can and will happen at higher priced shares as history has demonstrated so often, especially after a stock split.

Particular when new traders are attracted to the stock after the 30 to 1 split, at which time there is plans of promotion: buying knew properties and creating excitement:

Going from 1.5 cents to 1 cent is a 33% reduction …agreed? This would represent going from 30 cents to 20 cents which would be very likely after in a weak market on bad news. New traders will be attracted to GNH and would like to take some profits after promotion of the stock with tantalizing news of new claims perhaps. (I call this ‘whoopla’!!!!)

Most important: If we want to analyze the likelihood of percentages of the share price appreciating which would bring up our market cap, then the last thing we would want is a 30 to 1 split:

Going from 1 cent to 2 cents is a 100% appreciation for long time shareholders. (1.4 million to 2.8 million) ….But this is equivalent to going from 30 cents to 60 cents after the split, which is far more unlikely and particularly in this market.

Going from 2 cents to 10 cents is a 500% apperception representing an increase in market cap to 14 million.

This is extremely unlikely if we do a 30 to 1 split: In order to reach the equivalent of 10 cents (14 million dollar market cap) after this stock split, our share price would have to go from 30 cents to 3 dollars!!! NOT on a penny stock exchange, this far more unlikely to happen.

If we want to get back to 1 dollar (which I consider fair value and we have already been there) GNH would have to go to 30 dollars!!!

From a percentage point of view, it is far better for long time shareholders going into the future to remain as we are.

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QUOTE FROM THE NEWS RELEASE:

The bear market for junior companies on the TSX Venture continues to persist, and access to the capital required to fund mineral exploration has greatly diminished. The Company must proactively position itself so that it may not only ride out the storm

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Ride out the storm?? This is what we have been doing for so long and now there are indications the storm is ending: Why spoil all that we have accomplished through patience as the tide begins to change?

We should have been cutting back, waaaaay back, on salaries by now: this must be done seriously:…and it is why I have been asking for that bear minimum annual cost of operations. (minus salaries of course, those would be itemized separately)

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QUOTE FROM THE NEWS RELEASE:

(AND) also be well positioned to take full advantage of any potential mergers and/or acquisitions, to build shareholder value into the future.

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It’s not just the 30 to 1 split that is dangerous: More dangerous, is the reason why this has been presented to the Board: A small company struggling to stay solvent does NOT go into more debt and/or diluting shares to purchase more properties. I and many other shareholders believe this to be reckless!!

Lets concentrate on surviving and nurturing what we have as we ride out the end of this storm: we do have a great property and we may lose it if we take this path.

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QUOTE FROM THE NEWS RELEASE:

The Board of Directors believes that mineral exploration companies that take similar measures will improve their chances of surviving this bear market.

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This is a hypothetical belief:we must not make ourselves vulnerable to a 30 to 1 split for a belief system or set of dreams:

It is unreasonable to suspect that we will assure our survival by spending more money and diluting shares on other properties, rather than protecting the very good one that we already have.This is the reason I am invested in GNH: our large claim which includes Timmins ect …not the prospect of going out to get other properties: WE ARE NOT AN ACQUISTION FIRM;

I ask all shareholders: please VOTE!!!

Sincerely ….danny:

*** Please note that I have tried my best to give a fair an accurate analagy of why this stock split is a bad idea: I beleive from past expearinces with stock splits and after consulting with others more knowledgable than I, that Frank and the Board are making the wronge decision. My comments represnt my consequential opinion of thought and personal feeling on the matter of a stock split and other analagies which I make: I ask shareholders to take the time and really look at this issue. In my view it is the most important issue we have ever faced.