Hi Guys!

I spoke with David about getting a resource estimate done and I do not think its a priority for the company right now. The reason is because the work was already done by a reputable company just shortly before the NI43-101 reporting requirements came into effect. In order to generate a compliant estimate the company would have to take the time and money to go back and redo the work at the part of the property where we already have a high degree of confidence that the gold is there. For all that trouble, not one new ounce of gold will be found to build real value for shareholders.

People often complain about a lack of a resource estimate with many other companies, but usually when the report comes out, the share price drops shortly after. It is already pretty well-known what the historic resources are at Marudi and any potential acquiring company will be familiar with the exploration data. They do not require or depend on a new report to be filed. So it will add no value for the company.

If SMH takes the same amount of money to do further exploration work, and is fortunate to find a large NEW body of mineralization, then that is probably what will move the share price higher. All of the work that is being done recently and in the future will count towards a compliant report some time in the future, and for sure that will be part of the plan eventually. I just do not see it as a useful expenditure of working capital to make that the first priority now, when we have such a large inventory of high priority targets that could become part of a much more exciting story.

cheers!

Mike Kachanovsky

IR Consultant