The main focus of Inspiration Mining Corporation in the Timmins Area was completion of the definition diamond drilling at the Langmuir No.1 Mine site and the Langmuir North Zone along with advancing the projects to the next evaluation level. That evaluation includes consolidating results in the form of NI 43-101 resource estimations and metallurgical analysis. Work has also included towards converting the Langmuir mineral claims into leasing surface and mining rights. Discussions with the First Nations have been opened. Additionally, environmental permitting work is underway. Preparations and applying for Advance Exploration status with the Ministry of Northern Development and Mines.

In that regard, the Company has engaged Micon International Ltd. of Toronto, Ontario to commence analysis for NI 43- 101 resource estimation of the nickel mineralization at both the Langmuir North Zone and Langmuir No.1 Mine.

SGS Mineral Services of Lakefield, Ontario has been contracted to complete metallurgical analysis of the nickel mineralization zones encountered at the North Zone and Langmuir No.1 Mine.

Inspiration submitted a request to the Ministry of Northern Development and Mines for the leasing of the mining and surface rights and has contracted Sutcliffe Rody Quesnel Inc., Ontario Land Surveyors, of Timmins, Ontario to conduct the necessary land surveys for the leasing process.

The company has commenced the process of applying for Advance Exploration status with the Ministry of Northern Development and Mines for the Langmuir No.1 Mine site. This process involves governmental filings for various environmental permits and constructive discussions with representative of the First Nations in the Timmins area. Inspiration has engaged Blue Heron Solutions for Environmental Management Inc. of Timmins to assist in the permitting process. AMEC Earth and Environmental, Sudbury, Ontario office, has also been engaged to provide technical services for environmental baseline and groundwater studies, in addition to completing specific permit applications such as a Permit To Take Water for dewatering activities associated with the Langmuir No. 1 Mine.

The company has engaged Geotech Ltd of Aurora, Ontario to complete an airborne electromagnetic VTEM and magnetic surveys coverage of the Langmuir, Cleaver and Douglas properties. This survey will be completed in the 4

Inspiration Mining Corporation is pleased to assist in the continuing education and training of the next generation of exploration geologists by offering work term experience to two University of Waterloo Co-op Earth Science students.

At the beginning of the three-month period ended June 30, 2008, the Company held a combined total of just under$ 36,800,000 in the of form cash and cash equivalents plus short term investment. At the end of that period, the combined total of those items was just under $33,500,000.

All of thesea mounts were initially generated through public offerings and private placement of the Company’s securities. The Company does not have, nor has it ever had, any significant long term debt.

During the quarter just ended, the Company realized positive financial benefits from two sources. The first, of course, was interest earnings from its deposits in financial institutions in the approximate amount of $643,000. Secondly, it received services and materials from its granting of stock-based compensation (i.e. stock options) granted in lieu of cash payments. The total of those was in the amount of $2,514,406.