This morning I had a nice discussion with Neil Novak.

TOPIC - SPQ drilling program on JV claim with FWR & KWG - original chromite find #3 hole (3 kilometers from Double Eagle)

IMPORTANT POINTS

1) Through new airbourne data Neil has identified a mineral structure with conductors (similar to NOT's discovery) - he believes it to be peridot

2) the line cuts from 2004 are being re-cut and further new line cuts are being made - the two grids will be merged in upcoming electromagnetic surveys to give further detail to the above mentioned structure

3) Neil is preparing a project proposal to present to FWR and KWG in the next couple of weeks - the proposal is a costing program for upcoming drilling on the JV

4) Neil already has verbal agreement from his JV partners but will call a formal meeting to present the proposal - the JV partners can then discuss and approve formally

5) SPQ is required to spend $3.0 million by Oct. 31, 2009 to get 50% of the JV - $340 thousand has already been spent

6) About 5000 meters of drilling will be completed with this money

7) At this time, SPQ has $5 million in the bank

8) When the proposal has been formally agreed to, and men are in the bush with the drill rig, a press release will be issued - in Neil's mind, the project has "commenced", and the press release will indicate exactly this (Neil indicated that he is a "purist" when it comes to releasing information i.e., he communicates like a professional)

9) The JV drilling program will begin mid-February 2008

10) Finally, Neil had one other interesting tidbit - he thinks he's found more kimberlite - stay tuned

Snug