I just wanted to contribute a few discussion points after this latest news.

SMH has now raised $850K in placements with hard capital deals, offered at above market. These deals were taken down by JV partners that are likely to hold the stock and not dump it for a quick flip. The money was needed to fund the requirements for SMH to continue with the biz plan, and this was accomplished with minimal dilution.

The latest acquisition for the Guyana Shield projects are very complimentary to the prior acquisition of Black Banana in that they are in close proximity with some structures already known to extend onto the new property area. So as impressive as the early stage results have been from Black Banana, we now have a much larger magnitude land package to work from, controlled within friendly ownership so we do not have to worry about dealing with third party companies to consolidate ownership down the line.

There is a large database from prior exploration work that was also acquired along with title to the mining rights, and that puts the JV further ahead than a simple grass-roots exploration effort. About $9 million in exploration work has been completed by other companies from historical programs and much of that data is in hand to guide the JV on where to start. There are a huge number of strong targets that are already known and ready to test on this new property, several of which with the potential to be a company-maker with large resources.

SMH has done extensive DD to evaluate the strength and capability of our JV partners. They have the cash to complete their earn-in commitments, but if they failed to deliver, then the property title would revert back to SMH anyway. There is limited risk since the properties were acquired cheaply for shares and the ongoing taxes to maintain the interests are very low. However if the JV partners do meet their obligations, and through the exploration work that is paid for by other companies, any new discovery will be a direct benefit to SMH. This is the project generator model that has been successful in the past, and especially more so in the current tight financial environment.

Because SMH is the operator for the exploration work, the company does not have to worry about issues of disclosure. All data will be signed off by the QP from SMH that is managing the program and will be reported as any other material news for the company.

Taken in the context of the current market conditions, SMH has been very effective to continue to build value for shareholders, without blowing up the share structure. At times in the past there were concerns raised on this forum that SMH was perhaps insolvent. The company was on a shoe string budget for a while but it is clear that they are gaining access to funding and deal flow to not only stay afloat, but to prosper and grow. The company now stands with a huge position of quality project area, in a country with strong potential for mineral discovery, two motivated and funded JV partners at work, and a good shot to increase the total resource leverage as more work is done on our 1005-owned projects like Marudi. I think there are plenty of reasons to be excited, and the share price performance lately is indicative of that.

Cheers!

Mike Kachanovsky

IR Consultant