Dear Sucat:

From Sedar, Feb 12th, 2010 Unaudited Financial Statements:

ASSETS______________________________Dec 31/09_______Sep 30/09
Current assets
Cash and cash equivalents ______________$ 14,653,391___$ 18,647,131
Short-term investments (Note 5) __________$ 2,624,375____$ 2,619,204
Marketable securities (Note 6) ____________$ 2,849,935____$ 2,660,025
Receivables (Note 7) ___________________$ 22,438_______$ 188,177
Prepaid expenses______________________$ 88,165______$ 21,128
Loan receivable (Note 8) ________________$ 6,142,408____$ 722,331
Note receivable (Note 9) ________________$ 75,000 ______$ NIL_______
_____________________Sub-total________$ 26,455,712__$ 24,857,996
Mineral property held for sale (Note 10)____$ NIL _________$ 638,156
Mineral properties (Schedule and Note 11)_ $ 27,636,321 ___$ 24,754,377
_________________________Totals:_____$ 54,092,033 _ _$ 50,250,529

NOTES FROM FINANCIAL STATEMENTS:

5. SHORT-TERM INVESTMENTS
Short-term investments are highly liquid investment certificates with maturity dates of more than 90 days and less than 12 months. As of December 31, 2009, the related interest receivable for these investments is $3,604 (September 30, 2009 - $12,328) and is recorded in short-term investments.

6. MARKETABLE SECURITIES
Marketable securities are comprised of investment in shares and warrants of other public companies with total accounting cost of $1,695,930 (September 30, 2009 - $1,526,821). During the three months ended December 31, 2009, the Company recorded an unrealized gain of $18,201, net of tax (three months ended December 31, 2008 - $nil)

8. LOAN RECEIVABLE
During the year ended September 30, 2009, the Company entered into a loan agreement with another company. The Company agreed to loan a total of $6,000,000 which bears interest at Prime plus 4% per year, compounded daily and is repayable on demand. As at December 31, 2009, a total amount of $6,000,000 was transferred for purposes of the loan agreement (September 30, 2009 - $722,331) and an additional amount of $69,800 was also transferred. The borrower granted the Company a general security over all of its present and after acquired personal property. The balance at December 31, 2009 includes accrued interest of $72,608 (September 30, 2009 - $nil).

9. NOTE RECEIVABLE
In December 2009, the Company advanced a note of $75,000 (Euro 50,000) to an individual. The note bears interest at 3% per annum and is due on June 17, 2010. The note can be repaid anytime with accrued interest within the term without any penalties.

Credit Risk
...Loan receivable is due from an unrelated party and the borrower granted to the Company a general security over all of its present and after acquired personal property. Note receivable is due from an unrelated party. Management believes that the credit risk concentration with respect to receivables, loan and note receivable is remote.

================ End of Financial Statement Information =============

Now Sucat, it would seem to me that you have completely discounted and assumed no value in the Short-Term Investments, Marketable Securities, Loan Receivable and Note Recievable that amount to some ($2,624,375 + $2,849.935 + $6,142,408 + $75,000 respectively) $11,691,718. When you add this number to the $14,653,391 we end up with $26,345,109 -- I would call this a very comfortable buffer with NO LONG TERM DEBT! Now Sucat, if you have been following ISM you will realize that they are very careful with their cash and try to do a mixture of cash and stock when acquiring properties and/or services. They have, historically, been able to achieve approximately 50% cash and 50% stock when acquiring services, and much higher stock to cash ratio when acquiring mineral properties.

Furthermore, the cost for acquiring Langmuir was $3,829,843 (incl $2M NSR) and exploration to date on Langmuir has cost $13,433,133 for a total of $17,262,976. The other mineral holdings (Desrosiers,Barton Syndicate, Cleaver, Douglas, and Jasper) have a total acquisition cost to date of $7,134,343 and total exploration costs to date of $3,239,002 for a total of $10,373,345.

So, Sucat, given this scenario ISM has some $26M in liquid, or near liquid, assets. ISM also realizes an ongoing return in investing those assets. ISM also acquired most of those properties outlined in the previous paragraph when ISM stock was much higher. However, they are still assets that have value, and if we simply assume that their value is their acquistion cost it provides ISM management with more leverage in the event they want to sell, spin-off, lease these assets. From this I would both deduce and concur with ISM management that there is minimal liquidity risk.

So, Sucat, what is your take on these numbers? They are all available on SEDAR and I would strongly disagree with your assessment of 2 to 3 years, I would place it conservatively at 5+ years, but realistically it is well beyond that! That is more than enough time to make some significant mineral discoveries.

aatozz

P.S. $26,345,109 in liquid, or near liquid, assets divided in 72.4M shares amounts to $.36/share. The Mineral holdings at a total of $27,636,621 divided into 72.4M shares amounts to $0.38/share. Together, the two amount to a book value of $0.74/share as there is no long term debt!