Below is an attempt to put together a bullet point summary of the current situation, pulling from the various post on this board and elsewhere. Please feel free to copy and paste additions to it, as you see fit.

- The relatively coarse 12mm crush of the bulk sample probably did not liberate all of the micro or macro diamonds.

- The 12mm crush could still hold unliberated diamonds of up to 7 carats.

- All of the liberated diamonds of less than 1.4mm would have gone in the with initial rejects.

- Any liberated diamonds that were coated with hematite would have gone in the rejects pile.

- It is possible that the hematite could have compromised the effectiveness of the DMS phase and diamonds could have been lost to the rejects at this stage also.

- Any diamonds that were coated with the hematite would not have stuck to the grease table and would have been washed away.

- Any diamonds that were coated with hematite would have been missed by the x-ray sorting machine and ended up with the rejects.

- The diamond count in one 2.5" diameter core was bigger than that of the initial SRC bulk sample.

- The 50% increase in the weight of the concentrate versus the norm was probably due to the presence of hematite.

- No kimberlite cores from the zone of the bulk sample were analysed for diamond content diamond content. So, it may not be representative.

- The diamonds from the core samples, that were treated in caustic, may have had a very thin residual coating of hematite, but the uncoated broken surfaces may have helped them to stick to the grease table.

- We are dealing with a kimberlite that has been extensively altered and the mantle nodules have broken down, releasing the diamonds and indicator minerals into the general bulk of the kimberlite and therefore increasing the possibility of becoming embedded in the hematite or being coated with it.

- The kimberlite has been proven to host macro diamonds.

- If the hematite coating is proven to exist, we need to know what impact this will have on the value of the diamonds that are effected by this.

- We need to know why some diamonds in the bulk sample were not effected by the hematite staining.

- Core sampling is underway to learn more about the each of the kimberlite sills. All of these cores will be treated in caustic.

- We are being advised that the diamond population of kimberlites is not uniform and can differ greatly between each pulse during eruption. This reinforces the need to drill more cores into each of the kimberlite sills at Mud lake.

- The De Beers results may have the same shortcomings as we believe the SRC results to have. But, they may have the benefit of the experience gained from the SRC results and, as such may be able to correct their processes.

- The cauctic dissolution of the initial SRC bulk sample will allow us to gain a better understanding of the prevailing diamond sizes in this zone of the kimberlite. Based upon this, the initial crush size could be set so as to not to crush the larger stones in forthcoming bulk samples.

- If the presence of hematite become an important factor in the economics of the Mud Lake deposit. More drilling will be necessary to establish if it effects the whole deposit, or if it is confined to zones that are perhaps are adjacent to the granite cap, or subject to hematite carried by water infiltration through the kimberlite.

- Due to the geographic location of the mine, 0.5 carats per tonne at $100.00 per carat average valuation could make the Mud Lake deposit viable to mine.

-It is highly likely that much more bulk sampling would have needed to be done irrespective of the initial bulk sample results. The norm in diamond exploration indicates that at least 3000 carats needs to be recovered and logged against how many tonnes it took to achieve this weight of diamonds in order for a good idea of economic viability can be developed.

- Indicator minerals from Mud Lake are very promising and this more than justifies the continued intensive exploration of the deposit.

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