Spiny,

Thanks for your thoughtful response. and thank you for recognizing that there is a role for a Gadfly, and not attacking me for raising these concerns. Everyone I think is well aware of your views of the timeline and sincerity of the Management of SFMI. Here is my response to the questions that you asked.

Comparing this company to other startups is a valid comparison when the management is not competent in the business which they are in. When PQ began, he knew nothing about mining, and instead of hiring talent to run the company, he made decisions on location and contractor which resulted in a 1 year delay in opening the mill. Then he made a hiring decision for a mill manager who had no experience in the type of mill which SFMI has. Another 6 month delay. Management in business ought to be compensted for doing, not being. Many of the problems this country is experiencing today is a result of the inexperienced self centered managers not taking responsibilty for bad decisions.

For example, the owner of an abandoned Potato Shed rented by SFMI was given 10M shares for lease and termination when they relocated.

The bottom line, is that over the last 3 years, the shares have been diluted by 500% (65M to 400M including options already on the books). There is debt according to the most recent 10Q, most of which is convertable into shares.

According to the latest 10Q "Pierre Quilliam has made loans to us from time to time. The loans are non-interest bearing, unsecured demand loans. The amount outstanding to Mr. Quilliam at March 31, 2010 was $78,220." At most he put a 200K in and has been paying himself back, before the company has revenue. That I would expect that the owner of the company have some skin in the game, so to speak, is not unusual in any business venture. Not exactly a huge out of pocket expense.

In addtion, according to the 10K "In 2008 and 2009, we had paid $31,250 and $17,500 in taxes owed by Mr. Quilliam, which were incurred in connection with his role as officer of Dicut, our former corporate parent. In 2008, we issued 3,500,000 shares of Class A Common Stock to HEM Mutual Assurance, LLC to settle a legal claim against us and Mr. Quilliam arising out its prior investment in Dicut, our former parent." Generous compensation to cover his ass.

As we all know, SFMI will "pay Goldcorp annual lease payments of $1,000,000... and a royalty of 15%". In addition, " we are obligated to pay Bisell and New Vision a total of 15% of the net smelter return or net refinery return of any ore which originates, terminates or was gained access through the Sinker Tunnel or the grounds of the Sinker Tunnel complex." Maybe you can guess who owns those companies.

So let us recap, 15% of gross to Goldy, 15%of net smelter return(gross sales) to PQ, 15% of gross to buyback, which will be used to generate options for the insiders. Not all of this will apply until sinker tunnel is in use. However, that leaves 55%. Out of which all salaries, stock options, taxes, and expenses will be paid. Not including the double dip from Goldy corp.

In business, we call that taking a little off the top. Spiny, if you will be satisfied with the crumbs, fine. I will always advocate for the shareholders to recieve a fair compensation for the risk, yes, every investment has risk, in this and every other company that I put my hard earned money into.

I would like to hear from some of the other shareholders about this issue.

Iggy