I had the opportunity to speak with David Graham today.

Everything is going well working toward completion of the merger. They expect to get the go ahead from the exchange any day now. Once the approval is received, they will be mailing a notice of meeting for a Special AGM. The package will include voting proxies for the merger.

There must be something like 42 days between the mailing, and the date of the meeting, so we are looking at the later part of February.

I asked if it was still the intention for the merger to take place on a 1 for 1 basis......a definite"yes".

I forget David's exact words, but they are excited and ready to proceed with drilling as soon as possible after the completion of the merger. The best targets of both companies.....one company by then.....will be tested, namely REN-8 and Area 55. These targets are in the same general area, west of the ROF.

I have stated before, that I am in favour of the merger. I encourage all shareholders to send in their proxies and vote in favour of the merger. I believe it will benefit all shareholders, as well as hedge our bet on which target hits pay dirt first.

Holding with confidence,

Canseco