trading halt, page-10

Unfortunately it will not be good news.

I own the stock and had hoped the exchange rate would sufficiently buffer their operation. However, the copper price has tanked way below all of our expectations and the company has a serious cashflow issue.

With copper at US$1.70 the mine is about breakeven but the company will not be able to pay its other bills.

There are no signs that copper will rebound quickly, hence they have been forced to review their operations. It is almost impossible for them to reduce their fixed costs so shutting down the mine is possible.

They may also curb all exploration activity.

The anticipated $3 mil from DYL will provide a short term buffer and this may be preserved for debt repayment.

The medium term uncertainty re the copper price is forcing them to act now and I hope preserve the value in the company.