Additionally Kimber SP rise was based on:

1. The grouping of the higher gold grades at the two primary locations

The Carmen deposit is on one side of a large mound and the Veta Minitas is on the other side. The combined assets of these two locations is sufficient in and of itself to start a profitable (albeit small) mine.

2. By implication it appears these two locations are very likely to be connected through the mound and hence be continuous which would result in a considerably larger than proven resource.

3. Drilling at depth in both locations yielded grades significantly higher than the surface holes showed. Likely the whole mound could be surface mined very easily and profitably. This also added strength to point #2.

4. The Carmen was historically a higher grade (than what we see at the surface) underground mine. Once the mound has been removed it will be easier to drill down and see where the underground resource veins are located (assuming they exist).

5. The deposits contain a significant portion of silver and the early results of several years ago did not obtain high recovery rates for the silver. That problem has been corrected. The silver which makes up a fair portion of the project now has good recovery yields in most places. The areas where the recovery is still not good are the areas where the grades are not all that good either, so little value is lost. Where the silver grades are high, the recovery rate is excellent.

When all these facts came out (which were not heralded in the news release) people began to see that there would be a mine there someday almost for a certainty.

P.