I think the key to Moris is not based on the current operating results. Moris is a relatively small mine and the production is nice but it is the exploration upside for the entire property that will be of interest to me. The strategy is to generate cash flow from operations, which will be able to run for 3 or 4 more years on the remaining resources they inherited, and then deploy that cash to explore for new deposits.

The history of the area is rich with past mining operations. When I went to visit the property last year, I saw small scale mining ongoing from local Mexican operators. I also was able to visit numerous old workings where extremely high grade gold and silver had been mined, and the majority of the resource potential remains untapped because no modern exploration work has been done.

The previous operator at Moris had done some drilling and outlined several higher grade occurrences but none were followed up. On the very first try, Hothschild hit some great intervals, as were reported about a week ago. As they continue exploration around the mine, and across the valley at the Tecolote and El Pilar targets. The appeal of any new discovery so close to the mine is that it can be ramped up to low cost production very quickly. And that means higher production numbers going forward. Its a good plan that I doubt many investors fully appreciate.

The market stinks right now. I was buying more EXM above 60 cents, and frankly to see the stock trading back at the level where I originaly bought in is very discouraging. But there is no time limit on how long I may continue to hold the stock. Eventually, if EXM continues to deliver success in the operations and exploration work, the share price will reflect that. And while I wait, I just take comfort that EXM is one of the very few juniors that has made the transition to achieve leverage to production. This is a real company, with real assets, and successful management.

cheers!

mike