Cash flow vs. market cap is at very attractive levels for our any competing company looking to grow.

In the event of hostile bid(s),it should be noted that the President and CEO has protected himself and his directors with the option of purchasing up to 10% of the outstanding shares of the company.

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Market cap: 567mX .70 cents= $397 million

Shafter @ 1500 tpd : $79.8 million

LN @ 3,000 tpd: 75.6 million

$155 million in cash flow within months ($30 Ag) / $397 million market cap

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Shafter @ 2,500 tpd:$132.3 million

LN @ 3,000 tpd (with increased grades) : $90.3 million

$222.6 million  in cash flow " $30 Ag within three quarters (annualised) / $397 million market cap

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Cash flow in Q2 or Q3 or whenever Shafter gets up to 1,500 tpd:

3.8 million oz X $30 (-$9 per oz costs) = $79.8 million dollars annualised basis

1,500 tpd production on a continuous basis will usher in the move to 2,500 tpd = 6.3 m oz  (P.23 Jan.Pres.)

We can anticipate 2,500 tpd by end Q4 ,2013:

6.3 million oz X $30 (-$9 oz cash costs) = $132.3 million dollars annualised basis

LN (Page 16 Jan. Presentation)

3.6 million oz @ 3,000 tpd. 4.3million @ 3,000 tpd with grade increases expected.

3.6 m oz Ag Eq X $30 (-$9 oz cash costs-averaging cash costs for the two projects) = $75.6 million annualised basis

4.3 m oz  Ag Eq X $30 (-$9 oz cash costs) = $90.3 million annualised basis