Hi Guys!

The first tranche of the financing closed a couple of weeks ago and that money is already being put to work to buy equipment and pay for exploration programs in Guyana that are currently underway. SMH is still working to close a second round with institutional clients, and I believe a flow through deal is also being discussed to fund work in Ontario. The company is just trying to raise the minimum amount of money now to keep all of their commitments in good standing, and hold dilution to a reasonable level.

The JV deal to generate production will not begin to flow revenues until late next quarter or early next year. The first phase is for development work, which will count towards the earn-in requirements for the project, but will not cost a penny from SMH, so its still very positive for shareholders in the short term. We could be earning a couple million dollars per quarter as our share of the revenues once the operation is running as planned next year, so it will be significant and reduce the need for funding in the future.

SMH will be participating at the Toronto Cambridge Show so all investors are welcome to visit the booth and chat with us then for a more thorough update.

cheers!

Mike Kachanovsky

IR Consultant