Mineral Reserves

Total Project

March 2012 - 1,191,000 Tons, 0.18 oz/t, 6.03 g/tn, 209,000 contained ounces

December 2012 - 1,699,200 Tons, 0.15 oz/t, 5.10 g/tn, 252,600 contained ounces

*The mineral reserve estimate changed because the cut off grade was decreased in areas accessed from the Rice Lake mine shaft from 5.14 to 3.55-4.09. This increased the tonnage but decreased the grade and this was due primarily because using the new gold price of $1300-1500 instead of 1260 makes this economical.

I'm assuming this was just a numbers revision in the model and as the price of gold goes up, grade will go down as more lower grade tonnage becomes economic.

Mineral Resources

Again, tonnage went up and grade went down for obvious reasons.

Measured & Indicated March 2012 - 2,395,000 T, 0.23 oz/t, 8.05 g/tn, 562,000 ounces

Measured & Indicated Dec 2012 - 3,429,900 T, 0.19 oz/t, 6.55 g/tn, 655,100

Inferred March 2012 - 15,402,000 T, .23 oz/t, 7.78 g/tn, 3,497,000 ounces

Inferred December 2012 - 16,517,100 T, .17 oz/t, 5.92 g/tn, 2,852,500 ounces

This major difference is the grade change in the Inferred category. It dropped from .23 to .17 in 9 months or close to 25%. I guess Dale used a different abacus in March to figure out the inverse distance squared than he did in December.

So nothing really has changed other than they increased the economic tonnage in the model.

These guys are lame. I can't believe I actually bought Dale a coffee the last time I saw him in Vancouver. If I was keeping score he should be buying me about 250,000 grande Pikes.