I attended the Vegas show this week to represent SMH. I have been to quite a few of these conferences during the last 6 years and have never seen such a quiet show. By my count, the pariticipating companies were down by about 50% compared to last year. And attendance was very low, at times with not a single person in sight to speak to the presenting companies at the booths. This happened during the times when the more popular speakers and public presentations were underway, but it was still a shock in comparison to the other shows I have attended.

I was able to speak about SMH with several newsletter writers that I know, and handed out some info to investors during the show. And if there is something positive to take from the sentiment it is times like these that usually represent a bottom. When so few investors are left who care about the sector enough to attend a conference, then who is left to sell at these levels? I have thought that we were close to a bottom for a while, and yet the sector remains weak because there is also a lack of buyers. Well I do think the compelling stock valuations will start to encourage buyers.

From my conversations with other investors, it does appear that many people have cashed parked and ready to put to work, but they are just waiting for some sign that the selloff has ended. All is not lost, and the rebound could be just as dramatic as the meltdown has been.

For personal disclosure, I have never sold a share of SMH and continue to hold with confidence. I like what is going on for the company, and look forward to providing an update as more information is available to be disclosed.

cheers!

Mike Kachanovsky

IR Consultant, Shoreham Resources