I worked the booth for SMH both days of the Toronto Show. The attendance was lower than any Toronto show since the start of the bull market, and many of the companies did not even show up to man booths that had been reserved. This was perhaps a blessing in disguise for the people who did attend, since we had the luxury to speak with many investors for upwards of half an hour. Those who have been present during the busier shows in the last five years will know that kind of thing is impossible when the crowds are roaming the show and the sentiment is bullish.

David Bending was working the show and it is encouraging to see the passion that he has to represent the company. I think anyone that has doubts about the potential for SMH should take the time to chat with Bending. It is obvious that he is working very hard to navigate through difficult market circumstances and that the company has a lot of good things on the go that can build greater value for investors.

Some of the points of interest discussed on the weekend:

Fieldwork is ongoing at the current time at both projects in Guyana.

Within the next 3-6 months SMH will begin to realise revenues from our JV partner Rexma as production commences from the alluvial diamond and gold recovery operations. This could amount to between $1-5 million per year at full capacity.

The share structure is now even tighter since some outstanding warrants and options have expired.

While the share price has been under presure lately, most of the trading has been very low volume and insiders have been buying stock in the market. Despite the assets controlled by the company, the market cap is now below $5 million. Both the junior mining sector and the TSX-Venture are now considered to be extremely oversold relative to historical norms.

One final comment... It is during these periods of weakness that the best companies establish themselves. Poor projects and inept management will fold when the markets go sour. The good projects will continue on and the strong players are at their best when things are most difficult. To see so many empty booths at the show is an unfortunate sign that some companies are not serious about advancing their biz plan, and many juniors will not survive. SMH and DRV/MMG were represented during this show, with senior management on hand to speak directly with investors and demonstrate that they are for real.

cheers!

Mike Kachanovsky

IR Consultant