Ann: RIU Explorers Conference Presentation, page-12

The answer to this in my opinion relates to the following:

I have been shareholder for just over a couple of years and got on board as we ran from 1c to 3.4c ish . Over those couple of years since we have had some encouraging soil sample result only then to be "let down" by subsequent drilling results. Given that we had all the WITs action last year people aren't interested in low grade results when everyone else is reporting water melon seed sized gold (Im not saying water melon seed results are actually any good, only good for a pump and dump).

In actual fact the cause of this current sell down from 2.5c was caused again by promising soil samples and then disappointing initial drilling. There is no doubt in my mind that we are significantly undervalued as a consequence of yet again another "disappointing" round of initial drill results.

I have a significant holding in this company (just outside top 20) and I truely believe we have some great land with some very decent gold grades and reserves to be had. Which will come to light over time as we increase our understanding of the land we hold.

However putting on my mystic meg hat, I would suggest that the markets is waiting for SMD to find a significant reserve which can and will be backed up solid drill results. Until this happens and we can actually make a plan and proceed / make progress to quantifying some JORC Oz and grades and finally actually progress to moving towards production I think we will be in a holding pattern with the SP meandering waiting for soil samples and drill results.

As things stand at the moment we are waiting for the drilling to start again this coming month so result if I had to guess about 6 ish weeks away.

Jm2c

GLA