I still believe in the business. I look at 200 tpd and am thankful that at these prices that is all we are producing. I am hopeful that when it is time for us to be producing more the price will be better.

We still have money coming in from the Chinese ref the agreement Gary had done before. A contractor has now been hired to look after the McWatters project so Gary can concentrate his energy on the mill and other jobs.

In a few weeks time we will hear ISM's news about their resource size. I hope it will be good news for them. Their sp has gone up a little in anticipation. Some people say we have too small a resource. I look upon our resource in terms of where it came from.

Redstone Measured 274,085 tonnes at 2.64% Ni, Indicated 144,846 tonnes at 1.7% Ni > Total 418,931 tonnes @ 2.32% Ni

This year we added:

McWatters Indicated 714,870 tonnes @ 0.94% Ni, Inferred 13,829 tonnes @ 3.39% Ni

Hart Indicated 1,390,000 tonnes @ 1.5% Ni, Inferred 286,000 tonnes @1.36% Ni

Other Properties

Groves grab samples 2003 indicate 1.7% Ni and 1.5% Cu, 1954 handbook indicates an inferred resource (non Ni43-101 compliant)of 500,000 tonnes with a combined grade of 3.0% Cu-Ni above the 45.7 m level

Ray Claim PR14-05 One pit was sampled and returned 0.21% -0.418% Cobalt and 0.189% - 0.369% Ni over 5 samples Average grade of 0.288% Cobalt and 0.205% Ni

McAra veins containing 10% cobalt and 1% Ni with 19 grams/tonne silver. Copper is on the property as well.

Sothman Project Historical 350,000 tonnes grading 0.89% Ni (O.5% Ni cutoff) or 190,000 tonnes @ 1.24% NI (drilled to 500 ft - open at depth)