The market is not putting a big premium on relatively early stage projects right now, just because there are many deposits that are in the resource definition stage, and the majors have not been aggressive lately to make acquisitions. So some companies are dead in the water, without the people to advance development, or the funding.

What makes SMH worth hanging on to is the fact that there are several very good projects under management. If things are going slowly at the Ontario prospects while a firm deal is hammered out with the First Nations, at least we can look forward to the commencement of drilling at the Guyana Marudi Mountain project, or for the JV to get underway with Rexma at Pitaro.

Whatever resources may be awaiting discovery at Setting Net Lake will not evaporate in the time it takes to get things set up properly. In the meantime, any success elsewhere should lead to a higher share value that will make it easier to raise cash with less dilution later in the cycle.

cheers!

Mike Kachanovsky

IR Consultant