Hi Tinhat!

In order to generate data for a compliant resource estimate, SMH will have to do more drilling work to verify the historic numbers. There will not be a drill turning on the project until September and thereafter add a few weeks to do the drilling, a few more weeks for assay results, and then several months to get a third party consulting firm to crank out the report. My understanding is that rather than just try and confirm old results, the company plans to target some of the newer areas that were outlined from the fieldwork and sampling programs as reported earlier this year. The priority is on discovery in other words, and not resource definition.

The current financing is designed to raise the money necessary to all this next drill program to be completed. If the company is successful to post good results, and the market sentiment improves somewhat, it is reasonable to assume that another round of financing can be completed later on that will be at a higher market price and therefore less dilutive, and then it makes sense to go after a resource estimate.

The market tends to reward new discovery, and therefore the best case to build shareholder value in the short term is to go ahead and prove up new target areas if possible.

The company can release a resource estimate based on the elligible info on hand if they wish, and then go ahead and update that as frequently as they choose, as new info becomes available. The issue is about costs and the best way to employ the funds in the treasury. I would expect that it will make sense to do a resource estimate early in 2009 and then follow up later that year after more work has been completed.

cheers!

Mike Kachanovsky

IR Consultant