Just to add my two cents and a bit of HUMOUR to the Granger letter....i

Response on behalf of Peter to BSCS

Dear Bcsc

In connection with the complaint filed against me by Mr Granger I must respond - what;s the big deal.

I've been operating this way for the past umtime years and always ran this company as mine,lwhich by the way it is. After all I know what's in my own best interest and what's good for me is good for everybody else.

So what if I cut corners and consult nobody. I have assembled a very astute board of misfits that "simply sign here" when I tell them. Why bother consulting and having meetings when I can be better occupied looking for the holy grail of ore. Better to be a one man show - don't you agree.

The only mistake I made was in a moment of weakness I got an outside director - Bob Granger -to give the appearance of trying to appease those pesky shareholders. Well see how that worked out. He spewed talk of governance and had all sorts of crazy ideas to make me work harder and take my eye off what I have the most fun with.. Mental gymanics about finding the next great ore body.. Hey i have several dozen properties in inventory which keeps me stimulate.

But I finally had enough and concocted this story about the evil empire warlord trying to takeover MY company and had my cronies oust him from the chairmanship. Ha Ha.

Hey times were good for the last few years with China and resources being a hot commodity. Can I help it if I needed money and Mineral Fields was throwing it at me at cheaper and cheaper prices. It's about the cash flow and being able to drill drill drill. explore explore and oops - chromite was a bit hotter than I thought. Everyone is entitled to a little misstep.

Now that I've diluted the shareholders 5 fold - and plan to do this many times more with people who are glad to earn the fees and give me exporation dollars. Here I sit in my office working my Butt off proving up property.

You must admit - I graciously took on a 50% interest in Champion from my Ex Buddy Pat Sheridan and promptly did nothing much with it except make it one of the best Iron ore finds in NA. Ok so I gave it to some smooth operators at Chm who developped the find at a breakneck speed. Good for US ... Too bad Granger convinced me to do a swap of JV for shares. All on the premise that we could not afford to dilute fnc shareholders to keep up with the exploration program --- Fool on me - that was poppycock - plenty of cash from Marquest / Mineral Fields and we could be at 500M shares outstanding in no time. More the merry - N'est ce pas! And why did the rest of my cronies on the Board turn against me and vote for this deal? Maybe I should have tried harder and find a bunch of new lackies. but heh - blood is thicker than everything else and my son-in-law - well you know.

Look at my timely last Lamalee announcement - hey come on and give me a break. This is bigger than Champion and bigger than that Red Spot in Africa -oops - from years ago.

Lucky for me that Fnc bought out Sheridans' 50% interest ... it was a close call for a few moments and Chm almost had that stake.... The one good thing Granger (i admit) suggested was to match the offer and Pat bit and sold to us......Look what I've done since - not much.... but it is newsworthy that YOU have my attention give this struggle I have on my hands right now.

So please don't bother me with details and regulation - just leave me alone and I will survive and mutter along like I always have done.

The people who lent me flow thru monies are fine with the arrangement and I see no reason to interfere with our "deal" to keep me happy. Business Plans are for those yuppie execs that never worked a day in their life down in the trenchies.

So back off and tell those pesky investors it AIN'T THERE COMPANY

Yours Truly

Smitty

CEO / COO / President / Audit Ctmee Member / Chief Cook and bottle Washer.

Snafu -? systen normal all F'ed up .