Hey Westpac,

You just went to one of their core issues with your questions.

Here is my laymans answer.

The 43-101 is off the radar for GNH at present and here is why. Given the nuggety nature of the deposit the only true method of determining actual grade would be by way of bulk sampling. Drilling this property only leads to inconsistent results. So, by conventional methods to make this compliant the grade would be understated at approx 2g/t, which in Tilsley's opinion is not accurate.

Given his professional integrity, he does not feel comfortable in writing a report that he KNOWS understates the grade, which at this point is 2.99g/t or as we all like to call it - 3g/t. He said he just won't do it because it is not scientifically correct.

So...we COULD go ahead and get one done at 2g/t which would be costly relative to our cash, in which case we are then bound by 2g/t going forward OR, put our cash to further drilling and build out known mineralized zones.

If we can build out enough mineralization, there will be more interest which should make it easier to raise capital which would then make it easier to devise the best strategy going forward of whether to do a 43-101 with understated grades, get other investors to 'understand' the nuggety nature ( not so hard, I get it) or perhaps pay through the nose and perform bulk sampling all over and maybe do a 43-101 that way.

The last paragraph is pure speculation on my part, by the way.

In my opinion, this is not a big deal at this stage of the game. From what I can tell we are just getting started and getting some money in the bank to keep the drills turning was the best thing we could do. It would have been better to raise money at 25 cents, but then hey - GNH also traded below 4 cents within the year. As soon as we know what we are dealing with, I'm sure management will devise a full boar strategy to capitalize on this deposit.

I am hoping that they are expecting to find more gold and that because of this there is no point in talking about future plans until they have a better idea of what is in the ground.

B

PS. And I'm going to start now by suggesting that investors be aware that on this drill campaign, we are not hoping for huge grades and long intercepts (although, they would be VERY nice). As long as there is gold in those samples, that means we are likely to find bigger chunks when we do things in bulk. That's the idea here. Not complex, but different. Think outside of the drill core...