Hi POR!

David Bending was able to set up a meeting several weeks ago with leaders of the First Nations groups that are affected by exploration at our properties. From what I have heard, the tone of the meeting was constructive. Until we have a signed agreement in place the company is not going to proceed with any furhter work and I know that very little is being said about the negotiations right now just to avoid complicating the matter. Uranium exploration is a touchy subject and I would surmise that any approach which does not have the full support of the First Nations would probably generate a standoff of some kind, so I think its the right idea to proceed methodically to gain a consensus.

I think there is enough early stage work on these properties to merit ongoing exploration work, but I also think the Guyana assets are far superior and have greater potential to build value for shareholders in this market environment. So I would not rule out the possibility of JV deals with other companies to pick up the next phase, or to see SMH spin these assets off into a separate company to allow the management to focus entirely on Guyana. All options are worth considering, in other words. I regret that I cannot offer anything more concrete to answer your question but I am confident that news will be released as soon as these details are confirmed.

cheers!

Mike Kachanovsky

IR Consultant