Ann: Quarterly Activities and Cash Flow Report, page-4

I called Mike Rosenstreich today after the fascinating detail of the 1/4ly. The detail in there needs reading a few times over! First what struck me was the upbeat tone of his voice. When Mike started at HXG he literally walked into a fire pit & now in his words "the fog has cleared" & you can very much sense this. The purity achievement, large flake size & a combination of higher targeted tech end users (not just selling con to batteries) is part of this. I think the trip to Japan has opened up a few very interesting marketing doors and now can join the dots of building something real (dig, process, sell). Understanding more about flow, capex and cost which is improving dramatically also helping. On the cash side, nothing needed right now, maybe sometime next year & the feeling is a bit more will be achieved in building share price value before then due to a lot of stuff behind the scenes (that he didn't disclose). Mike is conservative and to hear his voice the way it is, I haven't felt this good in a long time! call him and see what you think......