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Message: Another Smoking Gun - Ted Butler

5.2.5 Criteria

Tonnage Factor

11.5 cubic feet per ton. This historical figure was

confirmed by independent tests completed for Harmony Canada by Chemex Labs

of Vancouver and has been validated by historic production data.

Cutting Factor

Assays greater than 1 ounce gold per ton are cut to 1 ounce

gold per ton. This is a historical figure, which over time has proven appropriate.

Statistical studies completed by Harmony Canada based on all samples taken in

the D-Shaft area within and around mineralisation show that the 1-ounce per ton

cutting factors lies between the 91

st and 96th percentile. The 95th

percentile is a

generally acceptable cutting level for Canadian lode gold deposits (Vallée 1992,

p.85-86) thus the statistical analysis also confirms the applicability of the historic

cutting factor.

Measured Resource

Vertical extensions up to 50 feet above and below

development and/or stoping. No strike extensions to open ground are included.

Indicated Resource

Maximum vertical extensions of 50 feet beyond measured

blocks. Up to 50 feet along strike and 75 feet vertical projection from drill hole

information.

Inferred Resource

Maximum vertical and strike extensions of 75 feet to

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