The someone Spiny is referring to is me. I spent about 10 minutes during the Q&A portion of the GHDC SHM going through the past compensation history of GHDC. I informed PQ that I had orginally invested in GHDC because it was at the time a fairly lean Holding Company. In 2009, Management consisted of PQ and Allan Breitkreuz and their total monetary compensation was $175K plus option awards which pushed their total compensation to $410K. I told him I was shocked to learn that in June of 2010, they expanded the Management team to include Christian Quilliam as Chief Operating Officer and Director, Denise Quilliam as Secretary and Director, and Thomas Ridenour as Chief Financial Officer and Director. All this for a Holding Company which has done basically nothing since PQ negotiated the original leasing agreements (he awarded himself $600K which he took in stock) This pushed 2010 monetary compensation to $278K, a 59% increase in expenses, and total compensation including stock option awards of $796K, a 94% increase in overall compensation.

In 2011, it gets even better. They are now awarding themselves a salary, a bonus, stock awards, option awards, and Director's compensation. The monetary compensation (salary, bonus, and Director's fee) increased to $460K, a 66% increase over the previous year and their total compensation increased to $1775K, or a whooping 123% increase over 2010.

The only part of their known compensation for 2012 is their salary which they've increased 52% to $700K. We won't know until the Annual Report is filed in mid-April, what they've awarded themselves for bonuses, stock awards, stock options and Director's compensation.

Needless to say, PQ was not very happy with me for reminding the attending shareholder's of their compensation history. He was very condescending in his replies and I kept asking why they needed such a large Management team for a Holding Company which really hasn't done anything since it was created. I also informed him that at the present rate of compensation increases and expense's, even if the mill was running at full capacity and producing 6-7 million dollars in revenue annually, it still wouldn't cover enough to have anything left over for earnings to be realized for GHDC.

Of course, the figures I'm using reflect what is being realized from just the tailings and the present price of gold. Once they start mining, this will hopefully change for the better.....both the amount of gold per ton and the price of gold.

Semper Fi,

Bluesideup