Dear fellow investors in SFMI:

Without permission, I happened to have had access to a letter written to PQ by one of the, loyalest, longest standing shareholders of SFMI (I’ll nickname him ‘ Sam’). PQ was only too happy to welcome this interested party to invest in his fledgling SFMI in 2007. This individual has a great deal invested over the years with the co., not only from a dollar value but also with respect to time, having personally attended the site and annual meetings on more than one occasion. I can even remember Sam telling me on one occasion to WEM how he sat beside PQ on the trip up to the mountain and found him to be engaging and savvy. For the most part ‘Sam’ , a very intelligent, credible and astute individual, has accepted PQ’s and RK’s communications with a polite demeaner. However, he has also expressed his valid concerns over the years.

The last communique Sam sent to PQ was personally answered by PQ. In my estimation it was both arrogant and dismissive and it would appear PQ has no more ‘tolerance’ to such cheek . Sam told PQ that investors are giving him a failing grade with a loss of confidence due to unfulfilled expectations with respect to such as appointing an experienced BOD, the omission of which resulted in the failed ‘Melba’ potato mill to today’s poor recovery rates; eroding share value, ongoing dilution, unaccountability, lack of foresight, poor results. Allow me to add in unrealistic time deadlines. Sam points out that PQ was supported by him and other longs for these years through poor execution of his business plan. It was Sam’s expectation…as it was mine and many other longs going back to the first year, that the business plan was basically that the processing of the ‘rich’ tailings/discarded ore, would feed cash flow into the Co. that would finance the drilling on WEM (in Sinker Tunnel)…without the need for much stock dilution. We all discussed what a unique move this was years ago. Seems PQ has forgotten all that…throw RK into that mix as well. (in retrospect it seems to me that going directly into exploration would have been the much smarter thing to do….given the $ and time wasted).

PQ responds to Sam by telling said investor that he stands out like a ‘sore thumb’. …and that the great majority of 5,000 other shareholders are looking “for an investment and not a loto win”. He has the insulting rudeness to ask Sam how Sam’s resume would qualify him as ‘an evaluator of performance’. (let us not forget PQ’s ‘brilliant’ son, an ‘IT expert’ was appointed to the BOD years ago…and shall we not discuss PQ’s geological ‘acumen’). PQ further insults said highly invested Sam that he has not properly read the financial statements. ..and that he, the one and only PQ, had always said that the mill would only support ‘part of the exploration…”and being able to read and subtract, I certainly never in my wildest expectations thought that the mill would finance the development of mining on the mountain…” And get this fellow loyal longs, our esteemed leader then advises Sam that “facts are never in the future (those are called projections) but always based on solid evidence from the past.” WELL, let us not examine the facts then.

I will follow this post with a very brief synopsis of all the NRs from 2007. I leave it up to you to decide who PQ really is, who/what he represents, what level of credulity he appears to have and what his possible hidden agendas may be. Just the ‘facts’ folks.