The Company traditionally maintains an inventory of refined gold bullion. At September 30, 2012,

this liquid asset consisted of 7,722 ounces of gold with a market value of $13.5 million. The

bullion inventory is carried at the lower of cost or market, in this case at a cost of $11.1 million.

Additionally, the Mishi ore stockpile at the mill, which totals 40,000 tonnes is carried in inventory

at a cost of $3.2 million.

Management believes we have sufficient liquidity to carry out our mining, development and

exploration programs and prefers not to dilute shareholders’ interest with equity issues.

With current gold prices, our mining operations are capable of generating strong operating cash

flow as they have in the past.


We continue to aim for a 60,000 ounce annual production target. We plan to be in position to

have some of the high grade 811 Zone ore we have been developing at Eagle River into the

production sequence near year-end and to be ready for a strong start in 2013.

And all for .87 Cents !