Silver Falcon Mining

1. WEM is as advertised...maybe better than advertised. It surely has the goods to enable SFMI to demand a healthy buyout offer. Over 7 million ounces of gold. Don't forget the huge silver inventory in the mountain. Let us not forget the uses of silver in many things.

2. SFMI is diluting. Nothing shocking here. We all knew they would dilute...all JPM's do. What we expected, however, was that revenue would begin to offset the costs associated with operation. That's what we were told would happen. That's what we expected to happen. That's what hasn't happened. Hence four cents. Dilution is better than having someone move in with a hostile takeover or a merger. The dumps creating revenue and smelter contracts with outside parties will help alleviate the pain of massive dilution. What I hear up to an additional $25 million a yr in revenue from the smelter contracts.

3. Roger Scammell has come and gone. Why did he come and stay for such a short time? Time will tell. This much we can all agree on: he at least helped point SFMI in the direction they needed to go. We'll see how successful they are in the pursuit. Roger did his job finding the hotspots and adding another 1800 plus acres to the inventory, however, he is still on board overseeing the NI43 101 and I would assume the drilling program.

4. Regardless of the amount of shares that have been dumped on to the market, someone, somewhere is accumulating. Who and why? Time will tell. Someone believes in the future of this company...or someone likes to throw a LOT of good money after bad. We're powerless over who buys and sells. Once word gets out that revenue was created in the next filing, I bet we see some serious buyers. Most investors don't invest unless they see revenues and the huge upside of the company. The Smelter will generate up to $25 million dollars from miners who need smelting done. Coming soon....smelter/lab facility is being re-worked and what I have been told...Bill Earl is still in the picture.

5. The family still sits on the BOD. Why? I cannot think of one good answer...especially since Pierre already has a voting majority. Maybe I'm missing something...can someone help me out here. RK has said to me in writing and on the phone..DQ will be replaced and the TSX frowns on nepotism. So it's in the best interest of the board and us to send DQ back to the kitchen.

6. Gold and silver appear to be as good a place as any to put your money in the short term...and the best place to put your money long term. Absolutely nobody can predict where GOLD prices will be in the future...all I look at his cash on hand. China and India are becoming a major player in the gold market. Supply and demand. Also, the banks are holding 1.2 trillion dollars, if they decide to flood the market with the cash, massive inflation. Govt's 0% interest rate is to keep the govt spending going. China is now reluctant to lend us anymore money. I don't blame them. How will this play out...is anyone's guess. Some economists believe $2500/oz for gold..some economists believe gold has hit its top.

Conclusion...

Even the most staunch longs must have worn a patch bloody scratching their heads about where we are at this stage in the game. My personal feeling is that we will all make more money than we have put in...but maybe not as much as we initally thought. Maybe we had crazy expectations. Maybe we were deceived by the many "rumors." Whatever the reason may be, I still think we will all walk away from this SFMI/GHDC venture well compensated. Pierre may be getting the cream(and rightly so: he put this thing together)...but there will be plenty of milk for the rest of us! I am not a fan of what has transpired in the last year, but I am still in the game till the end...albeit realizing just how confusing and frustrating this game of investing can be. As for me and talking with many longs in here and on the phone. Everything PQ has said has manifested. Not in the time expected, but it has manifested. They have the drilling contractor, now waiting for the blasting permit. I would expect they have a Senior Mining Engineer in the shadows to oversee the drilling program. I would bet Scammell will have some say too.

Long and (a little less) strong, Sphin I am down on both stocks...but the end game is what I am here for. What will the end game be..BUYOUT? MERGER with a large mining company? Or SFMI/GHDC will be a commercial and exploration mining business?

PS...I miss Sinbob. It was a kick in the gut to see him go. I bet he buys back in. How can you let a huge golden/silver treasure go? The dumps alone are producing 6 grams per ton of gold.