Bouts,

You may want to email or call RK and ask him if deferred means that the amount of the leases and royalties as well as the 10k per month administrative fee are being accrued to SFMI to be paid at a later date, or are they being forgiven. I asked PQ this very question at the last shareholder's meeting and he replied they were not being accrued and SFMI didn't have to pay them. I understand the big picture, but the number of outstanding shares has increased from 178 million shares at the end of 2008, to around 239 million shares at the end of the second quarter 2011. The majority of those shares have gone to PQ personally to pay for salary, stock options, bonuses and other various reasons in lieu of compensation. This means that we the shareholder's are paying for this thru dilution of the amount of shares outstanding. He keeps acquiring a larger and larger share of the company and the other shareholder's share keeps getting smaller. I could except that as long as SFMI was not producing revenue but that has changed and now is producing revenue.

If what PQ is saying is true, SFMI should have revenues of over 6 million dollars this year. That means GHDC should have generated revenue of over 2 million dollars of which appoximatey $500,000 would have been for salaries and expenses leaving a net profit before taxes of 1.5 million bucks or about 3/4 of a cent per share. That give GHDC a PE ratio of 4 with our stock at 3 cents. As long as GHDC generates no revenue, the share price will be permanently impaired until they do.

Unfortunately, what the Board (PQ) has done, is in direct conflict with the companies business plan and exposes them to the possibility of a lawsuit. Whether you like it or not, each of these companies needs to be looked at as a stand alone company that has a fiduciary responsibilty to do what's right for only itself. There are other shareholder's that only own GHDC and not SFMI. They are not concerned with the problems of SFMI, just those of GHDC.

What I would like to see PQ do is:

1. Put out a press release saying that all payments that have been deferred are being accrued and will be paid to GHDC when SFMI is in a better financial situation.

2. Because it's the Board's decision to not collect lease/royalty/administrative expenses since SFMI has become a revenue producing company, all salaries and expenses will be accrued and not taken as stock in lieu of compensation.

If this problem is not taken care of soon, I believe it will become very problematic for GHDC.