After glancing over the MD&A I didnt really see anything new or unexpected. By looking at some numbers, I will say again, that we will probably do a pp in the future at a higher price to cause the smallest dilution possible. There may very well be enough cash at hand should all the options and warrants get exercised, but I beleive to be safe and have funds at hand, a pp SHOULD be done in the near future.

Most of us are just currently thinking about $2million to drill. There are a lot more expenses related to the Tesoro property only ,that keep occuring and will up until the Tesoro is sold.We cant forget the other properties we have and their accompanying obligations as well.

IMO, we are currently under funded for what may lay ahead here shortly for us. As someone mentioned before, we may have to drill like crazy if an offer comes in during the first phase of drilling. There will also be other expenses like nr,s, circulars, lawyer consultations, etc. It takes months to do a pp sometimes and time may be of the essence, so I would rather be comfortable known we have the cash right at hand than to have to go look for it. Even though, I dont think looking for it will be a problem.

I would also like to note, that our company employee,s are mostly paid by stock, this is a part of their yearly income. Its good to see that the directors have sold very little or next to none in the last 6 months. We should see options being exercised in the near future when we raise above that 1.80 level and see a little inside selling so they can pay for/exercise as many of their options as they can. This puts cash back into the company at a needed time and helps propel us forward. I say this because, dont be suprised or alarmed when you see a bit of insider selling. Its just part of the design and is a mechanism to making a successful company, part of the process.Its showing managements faith in their company going forward as long as they are not selling huge amounts that cant be justified by the amount of available options. IMO