I ran across this issue while looking at news on Kitco. After reading up on Silver Falcon mining, I put in a call to their IR department.

What I gather so far is this company used to trade under the symbol DCUT I believe. It was named Dicut, and they were a Dot Com issue. Well, by the end of their life, Dicut had SEVEN BILLION SHARES issued. WOW, hows that for dilution.

I think that claim to War Eagle Mine was tied up with creditors, so that is why they structured the deal as they did. The creditors were paid a portion of what was owed through shares of SFMI. These are restricted shares which won't be free trading until 2009(2 years)

DICUT shareholders recieved 1 new for every 200 old shares. Creditors were paid with restricted shares.

So that's the story that got me interested. This is a risky investment.

LET ME SAY AGAIN. This is very speculative.

But, I was intrigued, and now have a bunch of shares. If management pulls this off, we would be highly rewarded. Rich said that the papers will be filed soon to move off the Pink Sheets. From there he hopes to get an Amex listing.

If he pulls that off, we would be required to trade over 2 dollars a share just to get the listing. So do the math, that's 3000 times todays share price.

The shares came to market 30 days ago. Selling pressure from old DICUT shareholders finding out they had a Christmas present they were not expecting is why the share price fell from .25 cents to .06 cents a couple of weeks ago.