Ann: Option to Acquire Dragon Mining's Stake , page-30

re: Ann: CHN: Option to Acquire Dragon Mining... Just to follow up on my previous thoughts, I rang Michael at Dragon again and had a nice chat. With regards to the deal, some things a can pass on are: CHN's original deal was 2 mill which would be comparable with their original purchase of 9 mill and chalice is 4 to 5 years away from any gold. Add to that those other facts previously posted and at the right price why wouldn't you get out.

The money may or may not be used to buy back the c-notes, but definately used in Finland and the other Scandinavian assets.

Eurogold/brinkley is very much concerned with growing the share price to the 20-30c level. When I quizzed Michael if they had any specific strategies that they would like in place. All he said was "growth" and wouldn't elaborate.

With regards to a dual listing, they do want to but they don't want to dilute the share price. If a company lists over their they have to raise funds and the minimum is 10 mill therefore 100 mill shares. This is NOT their prefered option. Therefore they either go it alone or get a JV for northern finland.

Weld Range has a timetable of 3-4 months for something to happen. This is another asset that will probably be divested IMO to create a pure Scandinavian explorer.

Michael was very positive about the future and said that we're in for a big year.

I hope this helps.

Cheers