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The Company's Eagle Gold Project in Yukon Canada hosts a National Instrument 43-101 compliant Reserve of 2.3 million ounces of gold.

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Message: Naked Short Selling: I am Requesting Chad's Response:
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----- Original Message -----
From: Chad
To: Tom
Sent: Thursday, October 09, 2008 3:14 PM
Subject: Re: Nacked Shorts on Canadian Stock Exchange Posted On: Friday, September 19, 2008, 5:22:00 PM EST

What do you suggest that we do in particular?
Hi Chad,
I have a few suggestion for you to eliminate any future naked shorting of your stock: One solution would be to de-list your shares from the Canadian Venture Stock Exchange and then re-list your stock elsewhere where naked shorts are identified with teeth to protect the interest of their shareholders. Another solution is to threaten the Canadian Exchanges that you intend to de-list your stock unless the exchanges start enforcing the rules that they already have against naked shorting. Personally I think the best solution would be for you to to start a petition that would be sent to the Canadian Exchanges - signed by CEO's of the companies trading on the Canadian Exchanges, demanding that they enforce the laws that they already have against illegal short selling or risk seeing many of the companies on their exchanges de-list their stock. I am sure the exchanges would then have an incentive to enforce the existing laws. Jim Sinclair points out that even though naked short selling is illegal in Canada, and it can only be done on an "up tick" it is still very prevalent - the only control in Canada is that the broker must ask the clients if they intend to make delivery one time. The clients say yes and there is no follow up. Sure it is illegal however Canada is the powerhouse of naked short selling. Another course of action is to somehow let stockholders in your company know that it is advantageous to them to take delivery of their shares and not leave them on deposit at a brokerage firm that can later loan out your stock to short sellers.
Let me know what you think of these ideas, and whether or not you intend to implement any of these ideas.
Tom
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