HI Michael and David,

I communicated with Del and he here is what he said:

Love to…C and I are in Boston doing meetings. We start at 8am but I will make a time between meetings or whenever for a call. The key to the financing is we have $7.5 mil built into the budget from warrants. 22 mil@.35 They won’t be exercised by due date the 17th of Dec. The financing will use the same number of shares to add whatever to the budget. Someone thinks they can control the amt by forcing us to do the financing at .17. we will see. We have reduced drill costs by 60%+ by using RC for infill so necessary $ thru April or May is reduced substantially.

Del

Hope this clarifies. Tough times for a lot of folks.

Best,

Big Al

My conclusion is that there will be no dilution at all. Del only wants to add some money and stay in the same number of shares. Del also thinks that pp will be not done at these prices because we obvious has some manipulation going on for longer time. Hopefully pp will be done at much higher prices because after all PEM has great properties. Also I think that this financing with Dundee seems to be very bad on the end becuase Crocodile doesn't want to exercise warrants, I think that Del is not so happy about those bastards. We will see but it seems that maybe some hostile take over is coming, of course IMHO, practicaly very tough time for Del and us and maybe we should be prepared for some kind of take over battle. Because of that new BOD member. On the end I can only say that working with sharks or crocodiles or whatever you want could be sometimes very dangerous. Hopefully all this will have nice end because you never know...

GLTA