Beerbelly

I will try to cover your points.

"Gary answered every question and showed incredible patience with one lady that kept asking (shouting) uninformed questions."

One question concerned the $4million that the Chinese loaned us - which was paid back after the mill was built. The next question was "Why are we selling our company for $0.19? We are not thinking of selling our company at $0.19. With all the financings you did what did you do with my money and the answer was that the institutions bought the shares for the financings and after sold some of the shares. The shares she owns were bought in the marketplace.

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Why did you not raise more money when you had the chance in a hot market given you knew we would need more capital down the road?

Money was raised when we needed to raise the money. What was not done this time was we did not hedge some Ni at the same time in March. Dr Nash takes full responsibility for that.

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How the heck are we are going to raise any money or find "debt" financing of $5 to $10 million to bridge the next few months when the US capital and debt market is experiencing its biggest melt-down since 1929?

We can raise money. One way we can raise money is sell equipment that we do not need. For example surface stuff like the headframe and hoist. When work was first done at Redstone we had only drilled a few holes at Hart. Since that time we have proved up a larger resource that will require bigger equipment then what was installed at Hart. Since that equipment is in demand we can get $2-3 million dollars for the shaft component. There is other stuff around too. Last resort is flow through shares.

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Why were we told that we were going to be over 1,000 t/d production over a year ago and we still are not there?

We had delays, from the July 16 press release:

Ramp development at the mine has progressed slower than anticipated. After spring thaw in April, the brow of the portal required repairs as a safety precaution to prevent injuries from potentially loose rock. A fault structure was encountered in late May which was responsible for the percolation of significant water into the ramp development area. Frouting, rock bolting and screening with shotcrete has been successfully employed to advance through the structure. The crews are now through the fault structure and pre-production from the upper level sills is projected to commence in September 2008.

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I am intrigued by the reports that the economically extractable ore cut-off for LBE may be as low as .4%.

Read the executive summary Geology and Mineralization.

Our sulphide assemblage consists almost exclusively of pyrite and heazlewoodite. Heaslewoodite is one of the most nickel rich sulphide minerals, and is generally thought to be of hydrothermal origin, most often found in dunites and lhezolites. The cutoffs are listed in our resource estimate. What can be said is that mineralization can be extended out beyond if more ore is decided to be mined from any stope. More output cuts costs. That is being decided by management and if you are truely interested give them a call and they will explain it in much better detail then I can.

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Now manners aside Beerbelly, I suspect that you do not have any shares in our company and have no intention of buying shares. So if we as shareholders accept the opinions of this board is that all that matters. I understand the desire in learning about the mineralization and I hope you find it interesting.