Hello dear GNH followers and investors.

When I first read M. Takefman letter, I was extremely excited to see people waking up, finally people will open eyes and see the incompetence of that management.

Unfortunately the point he bring later on is to get himself on the board, first he will have no power and will be ignored, second the complete BoD need to be flushed out. You can’t save a basket full of rotten apples by adding a new fresh apple; you need to change them all and point three he focus so much on the salaries that he is missing matter lot more important.

I am new to this board, but I’ve been reading it since it got online, and I see that most of you got involved with GNH only in recent years. I got involved long ago and if you will, I will relate some historical events as well as some basic financial analysis, and I hope that will be eyes opener for some of you and hopefully wake you up from the Management hypnotic talk.

So my historic with GNH start in 2004 while i was aproched by Gregory Hyrniw, at that time Osisko was in a JV with them and everything looked to be perfect. But you shale keep in mind that at that time the same BoD was in place since the company creation in early 80’s, and under Polisuk’s and Hyrniw’s era, no important company has been able to complete a JV without losing it all. I’ve learned that one too late.

April 14th, 2004 news release: GNH acquires Zinc, Copper, Silver and Gold property in Maine: Mineralization down to 1000feet (300m). Ref. sedar.com. That deal was presented to me as the Company flag ship project.

July 30th, 2004 news release: Osisko JV is terminated due to failure of its commitments (As we now know Osisko historic and reputation, how many time did they fail to their commitments?).

GNH is preparing exploration for its Maine Property.

Then you have to go in 2006 before a significant news come out again, they raised multiple small amount and then on Dec 7th, 2006 4.2M$ financing to start the Bellechasse gold Project again.

http://www.goldenhopemines.com/_resources/news_releases/December%207,%202006%20-%20Golden%20Hope%20Mines%20Closes%20$4.2%20Million%20Financing.pdf

May 29th, 2007, the Maine project in mentioned in the MD&A, (Goal is: defining a 43-101 complaint resources estimate in 2007). See Page 4. Also note at page 5 that 1M$ is dedicate to that project.

August 24th, 2007 MD&A reconfirmed that statement.

Sept 17th, 2007 they provide update on exploration;

19 drill holes were completed on Bellechasse Timmins

They were negotiating to get more ground in Maine and Diamond Drill contractor was being mobilized.

http://www.goldenhopemines.com/_resources/news_releases/September%2017%202007%20-%20Golden%20Hope%20Mines%20Provides%20Exploration%20Update.pdf

Sept 27th, 2007 more drilling update but no results. (That will soon become a GNH addiction).

Nov 29th, 2007 MD&A about the Maine property state that GNH has taken a more regional approach, but what about the 1M$, the drilling and the 43-101? If they look for more ground and look regional they must have seen great results in drilling.

Dec 3rd, 2007 they release results for 2 holes out of at least 22 from previous PR, then talk about the historical stuff “the same historic stuff they still always talk about now” to put you to sleep while they have no news to tell you about.

http://www.goldenhopemines.com/_resources/news_releases/Golden_Hope_Mines_Substantially_Expands_Size_of_Timmins_Gold_in_Quebec.pdf

Jan 30th, 2008 out of nowhere some results form a bulk sampling, apparently executed later than the drilling, but drilling results still nowhere to be found. Nevertheless, the Bulk results are very interesting.

http://www.goldenhopemines.com/_resources/news_releases/GoldenHopeMines_Bulk_Sample_Program_At_Bellechasse_Property_Yields_High_Grade_Gold_Results%20.pdf

March 3rd, 2008 they acquired claims based on historical results, up to 21g/t, and note that at that moment GNH holds 1,114 claims for a total of 47,837Ha. How much ground do they control now?

http://www.goldenhopemines.com/_resources/news_releases/20080303.pdf

June 17th, 2008 acquired more ground, now total: 1,136 claims, 49,145Ha.

http://www.goldenhopemines.com/_resources/news_releases/NR%2017-06-08.pdf

June 19th, 2008 now it start to get interesting, they lunch a new drilling program, still no drilling results from 2007 program and the results in the PR are the same as the PR of Dec 3rd, 2007 plus 1 hole and one results from 2004.

http://www.goldenhopemines.com/_resources/news_releases/NR%2019-06-08%20Drilling%20press%20release.pdf

Sept 22nd, 2008, Exploration confirms Timmins 2 Geology, but where are the results? And drilling is going to Serpentinite Targets. We also learned that they added some ground and the 2007 drilling campaign also poked some holes in a VMS potential mineralization named Coucou, but again no results to be seen.

http://www.goldenhopemines.com/_resources/news_releases/Exploration%20Update%20Sept%202008.pdf

Oct 15th, 2008 the drill rig is transfer to the Serpentinite target and we learned that 14 holes were completed in the Timmins 2 target, (the core is currently being logged, cut, sampled and sent to the lab). “Results will be released when received, compiled and interpreted.” Have you eared that one before?

http://www.goldenhopemines.com/_resources/news_releases/Drill%20Riviere%20des%20plantes%20PR%20oct1508.pdf

Jan 29th, 2009 finally after 2 years of drilling some results are released for the 2008 drilling, but where are the results for 2007 yet?

http://www.goldenhopemines.com/_resources/news_releases/Drill%20Results%20PR%20Jan%2029.pdf

March 12th till August 10th, 2009 here we can see great examples of News release that says absolutely nothing and the only goal are to keep shareholders sleeping and thinking everything is going well. Important the remind people how great that story is.

Where are results from Timmins 2007, Serpentinite, Coucou drilling? And on top of that, what happened with the 1M$ in Maine and where are the results from that drilling in Maine? What about that 43-101 for the Maine property to be released in 2007?

Ok I will keep looking and searching.

August 7th, 2009 2 Board members resigned, just a question here, Is Frank Candido starting to prepare his own hand-picked Board members?

http://www.goldenhopemines.com/_resources/news_releases/Smith_Dubuc_resignation_July_2009.pdf

August 26th, 2009 Frank Candido appointed “Interim President” as everyone, my first feeling was, finally a welcome and well deserved breath of fresh air that will change direction and will lead this company to the right direction.

http://www.goldenhopemines.com/_resources/news_releases/Corporate_update.pdf

Sept 30th, 2009 the new breeze of fresh air has its effect as large bulk sample gets started and new financing comes. Frank admits turbulent year is over and he is excited about the near future.

http://www.goldenhopemines.com/_resources/news_releases/ExplorationUpdate-Sept302009.pdf

Oct 28th, 2009 a new target for Gold and Base Metals is announced, we find in this News Release that 8 holes were poked in the Coucou in 2007 and finally know the results were not encouraging. The news Target is FG area.

http://www.goldenhopemines.com/_resources/news_releases/FSG%20Target%20Press%20Release.pdf

Dec 29th, 2009 they start stripping and trenching the FSG Area, trenching in winter sure make them hard workers, but the News Release mentioned that the intrusion rises within 1000 to 2000m of present surface. Do you really think trenching will get to that? Do not waste your time looking for the results you will not find it.

http://www.goldenhopemines.com/_resources/news_releases/FSG_Work_Beggins_Dec29_2009.pdf

From April 13th, 2010 Frank surfs on the excitement created from the change in the management and great results from the Bulk sampling program, closed oversubscribed private placement, leads tour to every shareholders on the Timmins project, everyone gets over excited by his over excitement.

April 28th, 2010 from MD&A page 19, GNH is no longer pursuing its interests in Maine and has engaged a real estate agent to sell its entire land package. Now that is a problem, where is the Security commission? They financed, bought that land, drilled it, got the money specifically for that project and no results, no explanations nothing.

June 7th, 2010 the first hand-picked Board member joins the BoD.

June 22nd, 2010 the second one joins, note that from this date everyone who will join the BoD were at some point of their life related to Rio-Tinto Alcan.

Sept 20th, 2010 third hand-picked member joins.

Sept 22nd, 2010 one of their best intersection and results is released, but as the excitement is at its highest level those results come at the same time the prescription period of May private placement ends, horrible strategic move from them. And to add to the dumping move and panic, Frank sales a large package of his own shares.

Sept 28th, 2010 a very awkward news release, where they try to explain previous news release and it is the start of the excuses for everything, late lab assay, sample lost, and special treatments take longer etc…

Fall 2010, series of late results deliveries, new bulk sample to lunch a second wave to surf on, as they did in the previous year I would guess. New 3.7M$ financing by the year end, good results as expected since they did test the same area with the bulk as they did the previous year and last drilling results will arrive only on May 18th, 2011.

April 19th, 2011 Retains service of SGS and Genivar, which is expected to change the complete picture.

Mar 22nd, 2011 Release is very interesting to be looked at closely. They first repeat all the lets put shareholders to sleep as usual, so they will not read it all. But as you get to the Other Targets section (if you are not sleeping yet) it gets interesting. They detail the results of the 2010 exploration season: (they never did that again since).

1. FSG area returned 12 gold anomalies in the range that Bowmore are looking for and are proud to release in the close by area, personally I think it is very low, but if the Osisko’s exploration branch is happy about it, that would make me happy also. And FSG is drill ready, as of now, I haven’t seen anything about that area being drilled. Why?

2. The St-Luc (Roux) Target returned a copper anomaly as well as a Chromium anomaly and is described as area of good potential and again it is drill ready, but we will talk about that one later.( April 2nd, 2012)

3. Chute du Bras look like it is the property they acquired March 3rd, 2008 (the 21g/t lead me to think it is). 6 grab samples returned values between 1g/t and 8 g/t, so that mean there is gold there, so why don’t we hear anything more about it?

4. LG Showing, 1 to 2 g/t Gold in extension of Chute du Bras, 4km away. Why don’t they talk more about it, did they ever do any more work?

5. Moose Cliff returned 10 results even better that the 12 at FSG and they identified 2 new copper showings there. Any of you knew anything about it?

6. Talon returned 10 samples with Gold values, and 3 new copper showings.

Interesting isn’t it?

http://www.goldenhopemines.com/_resources/news_releases/Exploration_Update_2011_03_22.pdf

May 19th, 2011 announces its spring Drill Campaign, but in reality look at Jul 14th, 2011 where they Begin summer drill Campaign, but we need to understand that in the mean time they had to give themselves options, first bellow trading price then they backed up to slightly raise the price.

Sept 28th,2011 the Drill moves to Champagne Zone, “the next high priority target”, after all the targets they’ve been talking about since 2004 and mentioned higher in this letter (Mar 22nd, 2011 as example), they choose to go to the target no one’s ever heard about, more, it is now THE HIGH priority target. At this point I talk about management acting like a chicken running around with no head or a dog chasing its tail, they really start to demonstrate on day light how incompetent they are at exploring.

Oct 31st, 2011 as usual results are late and they have nothing interesting to say so they made the shareholders happy with a useless News, 2nd drill on the property, I bet if they really can’t find something to say one day they will put out a News Release to let people know they filled up one of their vehicle with gas to go work.

Nov 21th, 2011 MD&A page 14, Maine property acquired for 163k in 2007 was sold on Nov 9th, 2011 for 100K.

Early 2012, delays, delays and delays, but that is usual in this company so everyone are used to it, partial results, good results, but the promised, 43-101 is now looking like the Maine 43-101, and goes nowhere and take forever. But as M. Takefman states, Frank sold shares, I do not care if he knew or not the results of the 43-101, if he had money problems (at his salary he is not supposed to have any). I do care that as President waiting for a report that important CAN’T go and sales shares while he is telling everyone it will be good and great and the report will be the best part of the STORY, he needs to show “ETHICS” and to show ethics he CAN’T sales his shares at that time, that for me prove of all the disrespect he has for shareholders and their for, he can’t stay to his position.

April 2nd, 2012. Only on the GNH web site a News Release about the decision to allow lapse of claims in spite of their geological potential to allow expansion of a regional park. One year later I still try to understand that one. Very Awkward! At the time when every people in this industry (and other industries as well) fight against government to stop giving that much power to the greenies, GNH give a drill ready property to the greenies, hope they got promises of no interferences on the Timmins for that.

http://www.goldenhopemines.com/_resources/news_releases/nr_2012_04_02.pdf

April 24th, 2012 Bangor Daily news had a series of articles about mining in Maine, J.D. Irving, are asking the Gov. Paul LePage to modernized the Maine mining act to allow them mining Bald Mountain, a multimillion tonnes Copper, Gold and Zinc deposit with an estimated value at 7 Billion$. The Pembrook deposit, once GNH, before being sold for 100K, is estimated to be lot larger and J.D. Irving has an eye on it, if they do not own it yet.

So now, what do you think of that following statement?

“Golden Hope Mines Limited wishes to reiterate its commitment to grow shareholder value through the acquisition, exploration and development of potentially large-scale gold and base metal projects suitable for underground and/or open-pit mining.”

http://bangordailynews.com/2012/04/24/politics/lepage-to-sign-bill-allowing-bald-mountain-mining/?ref=search

http://bangordailynews.com/2012/05/17/news/aroostook/geologist-who-discovered-bald-mountain-ore-estimates-value-at-7-billion/?ref=search

There is more to read on the Bangor Daily News if you are willing to search a little.

June 18th, 2012 a preliminary and disappointing 43-101, way bellow all the management pumping during the last 3 years.

June 21st, 2012 as everyone STILL try to understand what happened with the multimillion ounces deposit in that 43-101, a new member to the board arrived as Drouin quites. But guess what? That guy knows Rio Tinto, don’t ask what it mean, I have no idea, other that it is now a close circle of close friends.

August 16th, 2012 GNH Establish a Technical advisory Committee. What is wrong with their field team and the SGS peoples? That is the equivalent of 2 firms of consultants in place so what is the need for advisory committee with new peoples? For me that demonstrate very clearly the incompetence of the BoD to take enlightens decisions and has no idea what to do so they run for every possible opinion trying save their behind.

August 20th, 2012. Announces drilling? I went back in all news release but, except waiting for the 43-101 and repeats of the exploration updates, I can’t find any evidences of exploration done since everyone started waiting, I would guess in March, since 43-101 was promised in that time frame. So that would mean the 3 friends with high class salary were probably fully paid while NOTHING was going on except telling shareholders “it will be in soon, it will be great don’t worry and keep buying so I can sale”. But they also gave themselves great options during that period.

Dec 4th, 2012 here is one more ex Rio-Tinto, I do not understand and that really bugs me.

Jan 15th, 2012 one more technical advisor.

And, today still waiting for results that take forever to be released if ever get released.

So now how many important mistake and evidence of incompetence of the BoD can you find?

Now, very shortly I have to say that in my opinion the Salaries analysis of M. Takefman is not good, for most of the company he mentioned, the CEO’s are also the chef Geologist, and actually goes and participate to the exploration process as professional. Then many are active over sea or way out in flight camp so those CFO’s surely get lots more things to compile than Roland has. M. Takefman you should look at it as the percentage of the exploration expense (As Georges suggest). It would make more sense but at same time make it worst for GNH.

Here is one simple administrative analysis based on the first 9 month period of 2012:”only first 9 month”

Ref.: Sedar interim financial Sept 30th, 2012.

That got me to search more to double check information, I found on their media page on web site: http://www.goldenhopemines.com/news/media/

April 28th, 2012 in French: http://www.hebdosregionaux.ca/chaudiere-appalaches/2012/04/28/operation-seduction-reussie-pour-golden-hope-mines that Exploration Dany Boilard had 17 employees on the project. From the title page of the 43-101 by SGS, 2 Geo’s and then Tilsley, that total: 20 Geo’s and Techs. If you do an average, that is less than 20 000.00$ each while the 3 kings averages 106 250,00 $

From this simple table they tell us that Frank, Roland and Sacha eat 50% of the man power salary of the first 9 months. You need to add their travel’s and expenses that I am sure are not in the 100$ per month, just traveling is lot more than I can afford with that 38 813,00 $ in 9 months.

Please also note that in the President’s letter to Shareholders, if you pay good attention, they do not lower their salary but “Management voluntary elected to DEFER 25% of its compensation until such time as market conditions improve”. Mean at the next PP they will first pay themselves back?

Tell me now, all of you shareholders who love so much that management, when you invested in that company, was that to pay for exploration and get results out of it or was it to pay a life style to Frank, Roland and Sasha that many of you can’t afford with 50% of your investment and savings?

Honestly tell me!!!!

Bastien