Ann: Amendment to Fura Gems Merger of Ruby Assets Agreement, page-33

I still think that people are being overly pessimistic In the very recent past we had a Ruby project that we didnt have the funds to develop and a graphite project that we didnt have the funds to develop. We sold the ruby project for $3 million in shares payable over years and our creditor took us to court, ambit claim of $5 mill but realistic claim of $2.5mill. We have now converted those 10 mill shares into $3 mill cash which unfortunately is just what we need. We have sold 1/2 our share of the graphite project but it will cover our expenses of phase one of development. Everything hinges on the graphite project. If the scoping study is correct we are on a winner. It all depends on the development of the graphite project if phase one goes well we will have no trouble getting funded for phase two. Thats not to say that everything wont go to poo, its a speculative punt and management well lets just say that they havent covered themselves in glory just yet.