JES

Para 2 of Press Release dated 13 Aug 2008.

"...The McWatters mine will not be declared to be in commercial production until late 2008."

Then in para 3 it says full production from the mine at 1,200 to 1,300 tpd from the lower high grade zone currently scheduled for early 2009.

I take that to mean that McWatters will be declared to be in commercial production for end Dec at the second level and not necessarily at the lower high grade zone which is the third level.

Page 86 of the Feasibility report para 17.1.16

The operating levels are to be established in or at the base of this zone at the 65m, 100m, and 135m levels. Access to the longhole stopes is to be via 5m x 5m footwall ramps, drifts, and cross-cuts from the footwall ramps.

Strange because on page 87 it says "All broken ore from the three mining elevations will be extracted on the 135m level. This implies that full production will only occur once the ramp reaches the 135m level and the lower stopes are at blasting stages."

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I guess that final decision may come down to accounting and strategic decisions.