Ok, I'm going to try and make this cut and dry.

I'd been emailing Frank about something else and we got to talking and if you know frank you know that once he gets going, he riled up and then he just keeps going...it's the passion and its classic.

He explained that there will be insider selling and exercising and selling of options and shares happening. Why? Well, as any company does they issues option as incentives and it just so happens that some are expiring today from years ago.

Here is what has happened according to Frank and I guess it's okay to post it here and will probably prevent some panicky phone calls. I'm going from memory here as I did not write this stuff down.

Bob Stocks received options. He exercised them and has sold half to cover the cost. Frank found a buyer for these.

Ron Haller exercised his options and sold half. Frank found a buyer for these. Apparently Frank insisted that Ron not exercise his options until today because it would not have been fair and poor optics and the poor bastard has left 1000's on the table because of that by being a team player.

Dany Boilard exercised his options, and may have sold some?

James Tilsley received 300k options, exercised and sold half in order to pay for for them to be exercised.

Louis Hoel has had over 1M warrants etc and has sold ALL of his over time and as most remember, sometime in June.

Frank Candido also had options that were expiring today and I believe he sold some of his as well? Why, well in his words....I've been getting paid 93,000 a year for the past 3 years and now I'm just as f'in broke as everyone else out there in this world. :) This is how Frank speaks sometimes and I was laughing after he says this, which is acceptable and perhaps even the point IMO.

Okay....so...insiders selling some shares. Terrible optics, correct? Depends on how you look at it.

So, all of these old options/warrants are expiring today. Well, obviously they have to exercise them - it would be insane to leave money on the table. In order to exercise these you ned cash on hand in order to pay for them to be exercised and it's not like everybody has a few hundred grand laying around to do this so some of these guys have had to sell them to pay for them.

Here is where you may find your peace. Mr. Candido has arranged a buyer for each andf every one of these so that it does not affect the market or share price in any unnatural way. Apparently the GMP buying is actually Senvest who Frank has strong ties with.

For the rest of the 400k+ shares Frank arranged with the 'Helicopter Guy' to take the entire amount which transpired sometime this morning.

What is the end result?? There is where it becomes cool that a seemingly negative becomes a positive. Some may have noticed that the GNH cash position has gone from 1.8 to 2.2 in recent releases. Well, due to this most recent swapping of options/warrants and trades the GNH cash position is presently sitting at over 2.6M with an added 623k added to float as a result of this (I wrote those numbers down).

A great comment from Frank was...Brad I don't want to raise money when I need money. I have learned THAT over time. I want to raise money when we don't need the money and look, we have 2.6M and we are looking great for the near term future...or something like that (you have to imagine the tone he speaks in, it's got the emotion in there).

What else can I say? Well...I think I am done with pumping the snot out of this thing with Blue Sky. This project will live or die based on it's own merits. I will say that if you are long, like I am, and you are NOT in a position whereby this is going to crush you if it fails - this thing really does seem like it has the makings of something tremendous. I won't speak for Frank but I sure feel bullish for our future.

When I first picked up the phone and I realized it was Frank I said I was sorry that he must have had a couple of really hard weeks. He was reflective in that yes, he was absolutely exhausted and has worked around the clock for like 10 days straight, and yes the share price took a hit and he felt as white as a ghost walking into some things this weekend BUT....he has also never felt better about the company, and said that it was maybe also one of the best weeks of his life because he is really starting to see things coming together.

As far as the turbulent SP? I asked how was it when you walk into a room when your company's SP is the most volatile and taking a bath? His response to Bay St was, well we did raise at 18 cents, (6?) months ago. What would you do? What would you do if you invested in something and you were up 5 times your money. In hindsight I think we can all see that it was set up for this pullback and as one friend said, 'it was priced for perfection'. Guilty as charged for hanging on.

He feels really great because the volume made up about 80% of the share float and just a few weeks ago everyone's average cost would have been in the 30 cents range and now it is in the 50 range

He said he felt great after talking to Senvest who said they bought all the way down, and when a stock is being pulverized, you buy all the way down. Why? Because you nver know when it is going to hit the bottom and when it really does then you buy a bit heavier but there is no point trying to pick the bottom. He said it was going to come to a bottom, wherever that may be, settle, and then go from there and to not worry about it.

Sorry for choppiness. I'll write more if I remember more later....

B