Q1 Results:

The Good

- Cash flow positive at operational level

- Lamaque Grade increased to 2.16g/t for the quarter and 2.61g/t for March

- Confirmation that throughput capacity at lamaque has been increased to 2,500tpd

- 50% of Lamaque costs are fixed costs, even doubling production to 1466tpd should substantially decrease cost/oz

- Working capital defficiency declined $29 million to $38 million from $67 million

- Lamaque is close to being able to mine all three regions which combined should boost productions substantially

The Bad

- Quebec regulatory agencies have been delaying work for certain safety checks etc. However, all should be completed this month so June production should give us a good indication of what we will realistically be able to mine going forward

- Tonnage at lamaque far below expectations

- 2,000tpd will likely not be achieved in Q2

- Further operational issues at Lamaque - though they appear to be more based on geography then technical issues that might require major investments

Questions

- The March grade was identified but not the tonnage. That leads me to believe it was low in March... Would like to know what it was and if there have since been improvements.

- Are any additional major investments in mine development/mine equipment needed at lamaque?

- Have gold loan obligations been met?