Dear Shareholder,

Thank you for your inquiry. The quartz carbonate veining in hole SJ07-07 occurs within a massive mafic volcanic unit whereas the gold veins encountered on the east side of Jacobus and on the Hercules property are hosted within the Elmhirst granodiorite intrusive. The similarity between the two geological environments is that the structures that host gold in the two different lithologies (volcanic and intrusive) may be related in that the gold mineralization may post date the lithologies. However, at this stage it is likely to early to determine whether the gold mineralization is dependant or independent of the lithological host rock.

Regards,

AGORACOM Investor Relations