Good Morning Gentlemen,

I wanted to thank everyone who attended the SHM and provided excellent coverage of a most important event.

I have been thinking about the 400oz Dore Bar (I mean who isn’t?)

I decided to do some math:

VALUATION

Assumptions:

1. Price of Gold $1700/oz

2. Price of Silver $30/oz

Just some round number to play with.

Optimistic Dore makeup (65% Gold and 35% Silver)

65% of 400oz =260oz Gold= $442,000

35% of 400oz = 140oz Silver = $4,200

Total Optimistic Dore Value = $446,200

Pessimistic Dore makeup (35% Gold and 65% Silver)

35% of 400oz = 140oz Gold = $238,000

65% of 400oz =260oz Silver= $7,800

Total Pessimistic Dore Value = $245,800

Next, I decided to try to figure out how many tons of rock took to make that bar.

TONS OF TAILINGS REQUIRED

Assumptions:

1. 20% Recovery from tailings using current methods from Assay Average of 16g/ton = 3.2g/ton

2. 1 oz = 28.35g

3. 1 troy ounce = 32.15g

400 oz Dore Bar = 11,340g

11,340g divided by 3.2g/ton = 3,543.75 tons of tailings

400 Troy oz Dore Bar = 12,860g

12,860g divided by 3.2g/ton = 4,018.75 tons of tailings

HOW LONG DID IT TAKE TO PROCESS?

Assumption:

1. Optimistic - 20 tons/day

2. Pessimistic – 12 tons/day

Regular oz = 3543.75 tons

Optimistically = 3,543.75 tons divided by 20 tons/day = 177 days

Pessimistically = 3,543.75 tons divided by 12 tons/day = 295 days

Troy oz = 4,018.75 tons

Optimistically = 4,018.75 tons divided by 20 tons/day = 201 days

Pessimistically =4,018.75 tons divided by 12 tons/day = 335 days

At this point, making one last assumption that the mill is not running on the weekends or holidays a year equates to about 250 working days at the mill.

We are looking at it taking between 8 months to 1.5 years of mill time to create the 400oz Dore bar.

Therefore, this answers the real question, which is on my mind

IS THERE ANY MORE?

From the numbers (and please feel free to correct me) the answer is ‘I don’t think so’

This does not change my feeling or opinions on SFMI/GHDC. I know that things are moving forward and the fact that we have a 400oz Dore Bar is way more impressive than other mines that don’t have anything to show.

Go long and strong!

EVANG1615