I got back from Idaho late last night after a long 10 hour drive. I drove by the mill on Sunday around 5:30 in the evening and took some pictures from the road of their latest progress. I did not go into the mill. From the pictures I have included in a link you can access at the end of this message, you can judge for yourself how much progress has been accomplished. When I went by the mill they were not processing any tailing at that time. I don't know the reason, but it could be any of several reasons:

1. The ongoing mill construction does not allow them to run the mill during this time.

2. They've cut back on the hours they run the mill.

3. They are only spending money on finishing the construction phase of the mill expansion, smelter, vault, and assay lab.

4. Any of the above.

There were only 3 cars in the lot and they were probably the security people's vehicles. Also don't forget this was on a Sunday evening when most people don't work.

I then drove over to Bobby Joe's with my wife and had a couple of beers with Bobby Joe and his new wife Keli in what he refers to as his beer garden. We talked for about 2 hours and enjoyed the view from his beer garden of their horses out grazing on their acreage. Just a few highlights from our discussion:

1. Bobby Joe and most of the locals he knows who've invested in SFMI have not sold any of their share's and are still excited about the potential of WEM

2. Bill Earll left because of what Bobby Joe described as "overpromised and under delivered". Earll was evidently paid mostly in restricted stock and needed more cash to continue his efforts. Additionally, Bill's wife was also his bookkeeper, and I believe it came down to either her or Pierre going forward. Bobby Joe was very supportive of Bill Earll and said he was the prime reason so much work was accomplished. He believes it was a great loss for SFMI when Earll left.

3. He said that before Earll left they had completed about 1600-2000 feet of rock bolting and metal screening in the Sinker Tunnel.

4. All of the snow on WEM is gone and they have until about the end of October to drill on the top of the mountain. He said permits to do core samples on the exterior of the mountain were easy.....it's like getting a permit to drill for a water well.

5. I asked about how the locals felt about having a closed circuit cyanide leaching system installed at the mill. He said most of the locals felt it was OK but he also mentioned what he referred to as a Sodium Nitrate (I think that's what he said it was)system that was not toxic and much easier to get permitted for. It was not quite as efficient as cyanide leaching but pretty close.

Thanks again Bobby Joe for your hospitality and I'll bring another 6 pack of Bud Light when my wife and I are at the shareholder's meeting in September.

Here's the link to see the pictures I took.

https://picasaweb.google.com/107528466279663494885/DiamondCreekMill?authuser=0&authkey=Gv1sRgCKOghpnB_uir3gE&feat=directlink

Semper Fi,

Bluesideup