These guys have our Carmi Moly project, looks like they had to drop the price of this PP because their stock price declined before they got it filled.

http://www.kitco.com/pr/2074/article_10242011155500.pdf

Here is a link to their stock chart, notice around the middle of Aug their sp averaged approx .075 cents. it didn,t hit the PP price of .10, so the price of the PP had to be amended, or they would probably have to start over, then a longer wait for the money. It caused further dilution to them, but they didn,t have much of a choice if they needed that funding soon.

If you put your cursor on the chart in this link, you can look at the sp for any day in that period.

http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=HHS:CN

Anyhow, the bit of the above is important, because , the more they prove up on this property, and maybe get it ready for sale or mine (which may take years, or may not), the more valuable our deal with them will be.The terms of the agreement are below. We will most likely not get any benefit from this property in the near future, but you never know.

Terms of Property Option Agreement:

Hi Ho Silver Resources Inc. (“Hi Ho”) earned an initial 51% interest in the Kettle River (Carmi) Moly Property from St. Elias by paying $75,000, issuing 500,000 common shares of Hi Ho to St. Elias and incurring exploration expenditures of $2,000,000 on the Property. St. Elias recently agreed to sell the remaining 49% interest in the Property to Hi Ho in consideration of $750,000 and 3,500,000 common shares of Hi Ho. St. Elias retains a 1.5% net smelter return royalty (“NSR”) from all proceeds received from commercial production. In addition, St. Elias agreed to grant Hi Ho an option to purchase 1,750,000 of these shares at $1.00 per share and Hi Ho agreed that in the event it sells the Property (or an interest in the Property) in the future, St. Elias will receive a portion of the proceeds which Hi Ho realizes from the sale of the Property or an interest therein.

In July 2008, St. Elias entered into a Letter Agreement with Hi Ho Silver Resources Inc. (“Hi Ho”), whereby St. Elias granted the exclusive right and option to Hi Ho to acquire the remaining 49% interest in and to the property, upon the following terms:

(a) St. Elias shall retain a 1.5% net smelter return royalty in the property;

(b) Hi Ho shall pay the sum of $750,000 cash to St. Elias;

(c) Hi Ho shall issue an additional 3,500,000 shares of Hi Ho to St. Elias;

(d) in the event that Hi Ho sells an interest or grants an option to acquire an interest in the Property to a third party, St. Elias shall receive a portion of the proceeds (cash and/or shares) realized from such sale of an interest or grant of an option payable to St. Elias either as a shareholder dividend or a direct payment. The amount St. Elias will receive shall be pro-rata in accordance with the percentage of shares that St. Elias owns of Hi Ho on the date that the proceeds of the option or sale are received by Hi Ho; and

(e) following any distribution as set out above, Hi Ho shall have the right to purchase 1,750,000 of the said 3,500,000 shares from St. Elias at an exercise price of $1.00 per share for a period of 10 years.