I think there is some misunderstanding of what the PR just released actually is saying. Understandable as it really isn't clear. From my notes of the Annual Meeting, we were told that they have 30,000 tons of processed material that has gone through the gravity circuit mill that needs further processing. This material is laying out behind the mill. They said that this 30,000 tons needs to go through the proposed (now completed) floatation unit to further refine the material which would then result in 3,000 tons of material that would need to be processed through the proposed (and apparently not yet financed) closed circuit cyanide leaching unit. That is when the dore will be produced that would liberate the $5-$6 million worth of metals.

They projected that the floatation unit would be completed about February 2013. This has been done and it further indicates to me that CQ gets things done when he has the funds to do it. They also said that the 3000 tons would take 300 days (100 tons/day) to go through the floation unit. The cyanide unit was projected to be completed in the Fall of this year, about the right time to begin processing the 3,000 tons of floated material.

Now, if you overlay the above with the recently released PR, it meshes this way in my opinion. The 3,000 tons of floated material will contain 90 to 95% of the metals that were in the 30,000 tons of gravity processed material. This 3,000 tons is not yet saleable. It still has to be processed through the cyanide unit to come. However, at the Annual Meeting I beleive they said that they would recover 80% of the metals. (I didn't write this down so I'm going by my failing memory.) This would make their now projected recovery of 90-95% higher than originally projected, justifying the PR statement of "higher revenues will result". It sounds like a higher rate of recovery, plus all of the gold would be recovered with any loses being with the silver. This is all good. The PR also said that the floatation process would result in 800 tons and not 3,000 tons. This is good as I would assume that the higher level of pm recovered would be in a lesser amount of material. Therefore there will be less material that has to go through the cyanide unit to recover a potentally higher amount of pm.

All of this pontification is leading me to my conclusion. When the PR said revenues will increase, it is because there is more pm being recovered via the floatation unit that projected. It does not say revenues will increase now, but it means revenues will increase after the material goes through the cyanide unit. This is when there will be saleable dore produced.

If I recall correctly, they indicated at the Annual Meeting, perhaps at a personal conversation with CQ, that there may be some saleable pm resulting from the floatation process, but not alot. So there may be some immediate revenue available.

So they are making great progress, but we still have a long way to go. It all depends on financing. They said the Sinker Tunnel refurbishing would be completed Feb 1 and ready for core drilling. I hope that was done and they just have not yet reported it. I have little doubt that it is done if they had the money to do it.

This whole project is wonderful in my opinion, but the bottom line is it requires financing to complete. We are stuck without it. We cannot depend on revenue from the processed gold and silver coming out of the floation unit. It has to be outside funding or at least a bridge loan.

I have invested quite a bit more into this company (my standards) since the Annual Meeting because I do have confidence in PQ, CQ, and the board. Of course I would like to have seen some things done differently, but I didn't have the responsibility therefore not my decision. I hope they can find people with money that have a like level of confidence in them and the project. That is the bottom line.

If you read all of this, you are a true devotee.

Calfarmer.