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Message: 11 week drill program

Looking back through the technical report, I happened to come across a recommendation by Paul Gray, and an estimated time line for drilling. I had read it before, and remembering that a 24/7 drilling program would average 130m per day. I believe at the time, we wanted to be conservative, so we went with 80m a day, or something like that. The one thing that isn,t mentioned in his recommendation is; how many drills did he base this on?

If we would have taken 11 weeks from May 31st, we would have arrived at Aug 31st having the 10,000 m drill program near completetion. If we started around Aug 31st, we would have been close to finishing around Nov 31st, by these timelines.

A lot of "would haves" and "should haves" I know, but I am just trying to justify why I thought back then that things would be done quicker. The timelines we expressed were not fictitious but were based on our readings such as below.

5.

Phase ID: Diamond Drill Program:

A suite of at least 24 drillholes (totalling at least 10,000

metres) designed to test the near surface and deeper seated geophysical anomalies identified and

substantiated from Phases 1A-1D are warranted for the Tesoro Project. Eleven weeks would be

required to mobilize and drill the targets identified within Phase ID. A program budget of

$2,200,000 would be necessary for this phase and would best be conducted between May and

December.

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