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Message: verification of grades

I think Hog posted this before out of the tecnical report. I will refer to it again, whereas it says, that Paul Gray, an independent geologist goes on the Tesorro and gets higher grades than what St Elias Mines got thereselves. Here is the piece;

The results (presented on Table 13-2) of the correlation produced an R

2

of 0.6081 with a bias

towards higher analyses from the PDGGC verification samples. Such a bias is not unexpected

with high grade gold analyses owing to the nugget effect of gold expected in this type of deposit.

Further, sampling irregularities between the PDGGC and St. Elias, such as precise sampling

widths, precise sampling locations, analytical techniques and physical sampling techniques

undoubtedly all played a role in the disparity. However the fact that the assays are predominantly

biased higher from PDGGC independent sampling and assaying is indicative of St. Elias’

professional reporting of the assays from the Tesoro Project.

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