i8email:

Will try and answer your questions as best I can.

"Will they drill the Kerr property or they have a property beside Kerr?"

New LRU company will drill Kerrs property (under direction of SGX). SGX optioned 55% of Kerrs property to SOR... SOR and LRU now in final stages of amalgamation. Kerrs property is contiguous with EXS-v Eastford Lake property (recently drilled 16.6g/t Au over 12m and have additional holes pending). Click here for fantastic map by longbomb (thanks yet again longbomb). This map clearly shows how close EXS drilling is likely to SGX Kerrs property border. Furthermore, we have also recently been told via Agoracom post that SGX has altered Kerrs drilling plans in light of EXS discovery at Eastford Lake.

"What would benefit SGX having LRU drilling close to Kerr other than the compensation? Money is great, but I would rather prefer Sage providing drill results from Kerr since we know there is good rocks there! (We can not always act as an ARE PLAY)"

SGX still owns 45% of Kerrs property plus (as per my previous post on this)... SGX has option to acquire significant shares (i.e. 13%) of LRU at significant discount; SGX remains operator responsible for all prospecting, exploration, development and mining operations; SGX will receive 15% exploration expenditures as a management fee; AND SGX has a 'back-in-option' which will allow SGX to maintain operating and ownership control of the Kerrs property. If/when significant discovery is made at Kerrs, SGX is well positioned to benefit significantly with minimal cash outlay. Therefore, any discovery at Kerrs will most definitely be reflected in LRU and SGX share price... both of which will benefit SGX.

"EXS had great discovery and SGX did not even gain .05 cents."

Previous Kerrs drilling by SGX was much further north and a little west. We have been told new Kerrs drilling plans have been altered in light of EXS-v discovery... i.e. likely moved further south next to EXS0v border. IMO the market does not realize how close the EXS-v holes are to SGX Kerrs property boundar. This will change with results and time.

"Is there any Kerr drilling assays pending?... is there anything going there at Kerr."

Yes. LRU-SOR did drill one hole to fullfill obligations as part of amalgamation agreement. This hole has not been assayed. Not sure the location of this hole. May not have been drilled in new location. Additional drilling to start at Kerrs immediately following final TSX approval of LRU-SOR amalgamation... estimated to be Sept. 3, 2008.

Hope this helps.

red911