A friend and former Tyhee shareholder is looking to buy back in. I sent him a copy of Warren Bevan's Tyhee Report and compared Tyhee with Romarco Minerals. He seemed very excited and said he was now looking for a good entry point.

He asked me, Why Tyhee Has Not Progressed Further Than Just a Pre-Feasibility Study?

Here is how I answered him, followed by what Skeleg thought of my answer.

Dear Friend,

" My training is in OB/GYN, not economic geology (or English).

However, here's my understanding of the significant difference between a Feasibility Study (FS) and a Preliminary Feasibility Study (PFS) as it relates to Tyhee's progress toward its first pour (FP).

First, Romarco's FP is scheduled for 2012, Tyhee's FP in 2013.

A PFS and FS have different minimum requirements, but NO MAXIMUM ones.
Both are not allowed to use inferred resources, whereas a Preliminary Assessment can.

Both the PFS and FS deliver "RESERVES"!!!!!!!!!!!!!!!!!!!!

As you know, Gold RESERVES are valued a lot higher (~$100+/oz) than gold resources (~$50/oz), and with those reserves in their PFS this June, Tyhee can get financing like never before, as Webb says, banks have told him that this will be the case.

Tyhee's resources now are valued at about $20/oz. Do the math, and you'll see the potential.

So, why did Tyhee launch a PFS and not a FS instead?

The most important reason was that a FS requires ALL infrastructure and mining plans to be in place. Since that is not now possible, as their permitting is in process and may require them to make some adjustments to get those permits granted, Tyhee could not do a FS without running the risk that it would have to do another if final changes would be required in its infrastructure planning vis a vis permitting requirements.

So, to speed things along, they did a PFS instead, due by this June.

Permitting is on schedule to be "settled" by year end. The Canadian Gov't is providing $11M this year to speed up the process!

When Tyhee gets permitted. It may not have to do a FS! They'll just go full-speed into production.

Does this help your understanding?

Any questions?

My best,

Baires

Skeleg's comments:

Baires,

"I think your explanation was very good. I think the PFS will be enough, as long as gold price stays high. If gold price drops, however, Tyhee may be forced to do a full feasibility study.

They can go ahead and build a mine if gold is over $1000, I think. But if for some insane reason gold goes to $750 and stays down, it would be much harder to finance the project, and the sharpest pencils would be used."

Skeleg