We recently decided to increase our PEM holdings, while becoming one of many significant shareholders, due in part, and with gratitude, to those whos patience and convictions understandably waned, and resulted in the selling of their shares, in recent times. Our new year review of all things "PEM-2013" resulted in a long list of reasons for adding more shares. Admittedly, there are always many things that can go wrong. Yet, in balance, we considered the below possible positives to outweigh the possible negatives, among which funding weighed heavilly in our deliberations. We have concluded that we believe funding will not be a debilitating concern for explorers, and notably PEM, as it was from the Fall of 2011 through 2012. We believe funding will ease for the industry, and in particular for those who have the gold, in 2013. We are of the personal opinion:

Results of further drilling in 2013 are likely to be near 100% successful;

Market conditions for this sector is likely to significantly improve in 2013;

Liklihood for PEM to to add significantly to their total ounces of gold in 2013 seem an outright absolute given;

Potential for PEM's share price to explode upwards exponentially in 2013 seems extraordinary;

Liklihood for the Friday-Petsite to be a multi-million ounce deposit seems a clear absolute;

PEM seems poised to become an even greater takeover or JV candidate in the coming months; this in addition to highly probable offers past, present, &/or already in the making;

Belief that 2013 will be a transformational year for PEM;

Liklihood that 2013's drilling will further showcase the Friday Petsite's "pot of gold" and will therefor colorfully point the way for the rest of the Oro Grand Shear Zone;

Belief the stage is being set for new milestones and even greater accomplishments;

Belief PEM will "outperform;"

Belief PEM has one of the most noteworthy new gold discoveries in this market but that the market has not yet discovered PEM, but will do so in 2013;

the liklihood that PEM's OSZ can become a 23 mile long mining district;

We have said before, while studying all PEM related information and issues over the past 2+ years, that PEM would probably engage a partner or buyer by or during 2013. For reasons too numerous to list here we are more firmly of that opinion now than ever before.

Worth stating once again, the assets already on site include: dozens of miles of paved and gravel roadways; industrial grade electric power; very large parcels of patented PEM owned indstrial land along a paved road inside the OSZ; the existance of 2+ locations containing operational commercial-industrial structures including what is now termed as PEM's own mining camp (and on site administrative and operational headquarters) facility(s); the existance of dozens of prior mining adits, pits, trenches, etc., and miles of mounds of tailings where millions of ounces were reportedly extracted via old fashioned mining methods; the absoulte given that the gold extracted many decades ago was only that which was superficial (so to speak) and may have have been only 5-10% of what remains for the taking, among much more.

One needs to actually see PEM's property and it's unbelievably behemeth size. Indeed, one should go see it. Driving a car at highway speeds it would take almost one third hour to drive from one end to the other. "Unglaciated" gold has been discovered along and slightly below the surface throughout the PEM-OSZ entire property length. Recent remarkable various tests and soil sample results allow me to include to that last sentence the words: "emphasis added." At the Friday-Petsite alone, PEM still has no idea where the gold deposit ends in length or depth. (additional emphasis added). While Midas gold to PEM's south has discovered nearly 10m ounces, we conservatively guess-calculate that PEM may potentially have 20 + million economically mineable ounces at it's disposal. Indeed the potential, to many, seems far greater. Given the deposits being proven from the Midas claims just south of PEM to the north end ot the OSZ, some have cautiously wondered aloud if PEM is a signigicant part of a new Carlin like trend. One has even wondered if geologically Midas and PEM could be an extension of Nevada's Carlin trend. Maybe. Maybe not. Time will tell.

(The above is our own personal annalysis. Any portion of it could prove erroneous. It is not investment advice. We are significant shareholders without any other formal or informal official business connections or monetary relationships to or with PEM and/or it's officials.)

Happy 2013 and best wishes to all,

marwal