To be successful we must have a similar ratio (percentage) conversion into Reserves as other successful gold juniors like Romarco which markets have endorsed. He is committed to this goal. Percentages below certain standards that he has set will not be good enough, and should be recognized as such, he stated.

Thanks for this, Hans, just trying to digest your excellent report. Off the top, I wonder if you can elaborate on the above statement. Did he mean ratio of reserves to resources, or something else, and was he specific about the optimal ratio targets? Did he talk about any specific changes in the assumptions or means by which ounces and ratios can be increased, for example by raising the price of gold assumption, or dropping the gold content cut-off? Did he talk about how the capital costs were going to be reduced (perhaps by reducing the size of the mill and/or delaying the underground operation) and the impact of this on the IRR? Or how these might affect the operating costs by increasing the size of the pit (i.e., if the cut off is dropped, more ore becomes available at the periphery of the mine)? It sounds as if the discussion was more general than this, but wondering. Thanks again, Ike