Hi Chop!

I think you have hit on one of the reasons why SMH is lagging right now. You refered to 'ore' and I know exactly what you mean, but as per regulatory definition, ore refers to mineralization that has been established in the ground to a high degree of confidence from drilling and sampling, and has been demonstrated to be economic under reasonable mining assumptions.

As we all know, SMH does not have any resources that are compliant within the terms of NI43-101 standards, and certainly no ore to speak of yet. However, the various projects controlled are advanced in that other parties have done work to identify what could be very large deposits. The historical data for projects like Setting Net Lake and Marudi Mountain are believed to be accurate and with a relatively low risk confirmation program, SMH should be able to quickly produce compliant resource estimates. Perhaps at that point the market will begin to price in a fair premium for the stock that is more comparable to the peer group.

However, what is even more interesting is that significant discovery potential remains for all of the projects to outline additonal resources well beyond what can be assumed even on the basis of the historical results, and that is where the real upside for the stock will come from, in my opinion.

At present the entire market sector for junior mineral exploration stocks is out of favour. At some point the extreme pessimisn will probably be resolved and a new bull market for these stocks will commence. By that time, we can look forward to a lot more work completed by SMH that may contribute to greater shareholder value, and that is why I remain invested and have never sold a share in this company. I believe the potential is worth waiting through this very difficult market. Of course my job is to communicate those reasons for other people to appreciate as well.

cheers!

Mike Kachanovsky

IR Consultant