Firstly, and only in recent months, has the industry been in transition from looking for elephant, to being interested in smaller-type targets that can be brought into production quickly. This is a natural transition following an extended time of virtually no money being available for large exploration projects.

Next, only very recently did LBSR disover an outcropping of copper, iron and other indicator minerals. Previously, studies in this area had suggested deep drilling was required to find the "elephant" JB is convinced is there. The elephant may still be there, but to look for it requires multiple deep holes. You can't just poke a couple of holes in the ground to see what you come up with, because the odds of missing the main deep ore body are big, and missing the target could/would do irreparable damage to the company, assuming they could find the money/partner to help with such very expensive work. And, missing the target at first attempt will not prove there is nothing to be found.

Now that some potentially ore-grade material has been found at the surface of the ground, odds for a commerical-grade find have gone up considerably, and the risks associated with poking a couple of holes in the gound have gone down considerably too, though this is not finind the proverbial elephant.

So, those who have long been frustrated with the company for not poking a couple of holes in the ground have been proven correct, only sort of, but for the wrong reasons. The proposed drilling will not prove a buried elephant at Hay Mountain, but may prove the existence of a small, easily exploited ore body that may bring further interest in deeper drilling at a later time (as part of that elephant hunt, and at big cost).

Without finding that outcropping, drilling a couple of short or long holes in hopes for finding something of value would be about as productive as trying to grab by hand a wild trout out of a swifly moving stream.

VP