to management a San Gold. Here's what they say:

1. Bought Deal dropped from 130 to 80 due to lack of demand overnight in Europe.

2. Portion of money will be used to by new fleet for production at 007.

3. Portion of money will be used to develop underground to 26 level? and make wider areas for access future growth.

4. Annualized rate of production right now is at very approximately 70,000 oz.

5. Believe liquidity crisis is coming and everybody will sell everything to get liquid, . Nonetheless, gold companies will be first to rebound (obviously an opinion, on which we agreed). SGR will look golden for doing this cash grab following this coming crunch.

6. Lots and lots of exploration potential between 007 and Strikepoint border, as well as eastward from 007.

7. Production guys getting nervous because mill reaching capacity, so upgrades probably coming soon.

8. Compared to peers, SGR was relatively cash poor, so felt it was a time to repair that item.

9. Other than issues related to financing, money baoys have no say in what goes on in day to day business at SGR probably obvious but wanted to clarify nontheless).

FWIW

MB