I think this point came up in the past, as well, I've heard it mentioned from many investors away from this Hub. People questioning especially the Tesoro number, and wondering if we're still months away from any possible deal, due to the $2 Million budgeted. This is my opinion, but remember SLI year ends May 31, 2011, so year 2012 starts June 01, 2011. IMO, that 2 Million is already spent, or currently being spent, on the initial drilling program of the Tesoro.

This thinking would also justify such a large number for General & Admin Expenses of $2.5 Million, if they are working on deals in the background, on one or more of the Peruvian Properties?

From the circular

Principal Purpose of Funds

Item Budgeted Expenditures

Costs to complete the Arrangement $250,000

Vilcoro, Peru $500,000

Tesoro, Peru $2,000,000

General and Administrative Expenses for the next 12 months $2,500,000

Unallocated $1,207,256

Total $6,457,256