SGR – AGM December 3, 2007 – Part 3

Continuing the presentation, before the recently completed financing, injstitutions held 45% of the Company?s shares, and 15% were held by management. It is possible that the institutional percentage is higher now since the last financing. [Added later: Royal Bank Precious Metal Fund and AGF have recently also added SGR into their portfolios].
There has been good share volume with an average of approximately 460,000 shares per day trading over a 3-month period.

Dale then showed graphs of SGR?s share price in relation to other juniors (LSG, ARZ, CRJ and KGI) and in relation to larger gold companies (G, ABX, Kinross and Harmony). We show well in the 6-month comparison, a bit lower then the others in a 1-year comparison and well above the others in a 5-yeare comparison. So, in answer to the question of how our share price is doing, it is relative, depending on the time frame you are speaking of.

Question and Answer Period

How much of our gold is hedged? None.

Has our cash in bank been invested in other instruments, e.g. derivatives? No.

Why have we not met the production estimates that were given in the last AGM? Two reasons primarily:
1. With a change of plan in mid-year after finding new high grade zones, the focus shifted to mining those. That has meant spending time to provide access to those zones and preparing them for production mining. That took away from production in existing areas.
2. Lack of miners ? there has been a shortage of workers. They have now brought in contract miners (12 so far and more are expected) to help speed up progress. These contracted miners are working mostly in the lower levels. They cost more per hour than the regular employee miners, but their experience level allows them to work with higher efficiencies so that actual cost relative to production is a bit less).

Why was this information on the change of plan, causing previously issued production estimates to not be met, not shared before? Why were we left wondering why they were not meeting targets without explanation? The fact that there was a change in plan was shared in news releases. They did not expect that it would have affected production numbers as much as it did as they didn?t expect to have the labour shortage they did.

With all the extra production expected to come out of the main Rice Lake mine, is the hoist able to handle that much volume? Yes. The hoist can handle up to 2000 tpd. The limitation will be the crusher which can only do 1250 tpd, so it will need to be upgraded when they reach that capacity.

How is the labour pool now? There are currently about 250 people in the SGR workforce. They have done a lot of weeding out, and it is more stable now. They have upp?ed the standard for employees now that they have become a producer, so not as many are making the grade, but they are able to keep more of those that do make it.

Will they have enough money now to make it through 2008 with the 40 Million they raised? They expect to. It now costs about 2.5 million per month to operate, but they will not only have the 40 million raised, but expect to have another 15 million from the exercise of warrants in June 2008. [Meanwhile good production and sales will also grow].

Comment from the back of the room: The market can be hard on companies that over-promise and under-deliver and we are seeing some of the results of that now.

Are you looking at going onto the TSX? Yes, it is being looked at. Right now, the main thing that stands between getting there is that SGR needs to have two independent directors added to their Board. In adding two people, they should be people that will add credibility to the Company with proper background and qualifications.

(more to follow)