Newcastle Gold Ltd.

The private placement shares are offered as flow-through shares. The funds raised cannot be used for operational expenses. There are strict limits on the expenses that are eligible for flow-through tax credit renouncement, and developing a mine, or running a mill, are not eligible expenses. So, we can be sure that these funds are not intended to keep Lamaque running. If you read the NR closely, you'll see that the intended expenses are exploration drilling and computer modelling, which are eligible for the tax renouncement.

Lar