Response from Fire River Gold - re FAU has zero ore.

Spiros asked me to address some of your questions, which I have combined as follows:

Q - ALL recently released drill cores from the C3300 Zone are BELOW the water table and that is ore that cannot be mined. The Nixon Fork Mine has no EPA permit to discharge waste water. But that doesn’t matter much because the water CAN NOT be pumped out. Nor can the workings be grouted. Records indicate that there CAN be no more than 112,000 tons in the tailings.

A- Several clarifications are required:

1) Most of the 2007 and 2008 core is from the upper portion of the mine on 3300 zone, most very near the portal. The underground drilling that we are doing right now is also in the upper portion of the mine, where we have very prospective ground for adding to the resource.

2) Although there were resources declared at depth on 3300 (and we will likely do so in our own resource estimate), there is no obstruction to mining below it other than that this is a zero discharge facility and, yes, we do not have an EPA waste water discharge permit. The mine is a fairly dry - at present there is about 3 ft of water at the bottom of the mine in the main ramp, so there is no obvious evidence of a water table. This is apt to change with seasonality, but at present water isn’t an obvious physical barrier to deeper mining. The prior operator did look at grouting to blind off the bottom of the mine and some physical work was done to accomplish this. I have no opinion at present as to whether or not this program would be successful or if it is even required for deeper mining.

4) Past production is reported to be 140,500 tonnes from two mining campaigns. Allowing that 9% of this tonnage went to concentrate leaves 128,000 tonnes of tailings. Our estimates indicate more than this to be present in the pond. The “112,000 tons” you quote comes from the old technical report, but was actually 112,000 tonnes (123,500 tons) and this was estimated before the most recent 2007 mining campaign.

I trust this answers some of your questions.

Richard Goodwin
Vice President, Mining

Fire River Gold

2303 West 41st Avenue
Vancouver, BC V6M2A3, Canada

(Tel: (604) 687.1870
(Dir: (604) 648.1429
2 Fax: (604) 685.8045
(Toll Free: 1.800.687.1870

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