St. Elias Mines

Molson, here is an excerpt from a 4 page letter I sent to authorities, politicians, media, etc in ~2013. This letter was tampered with on my PC before I got it fully out, with the order of its presentaion scrambled. So if there is some wording or sentencing that appears out of place, this is temporarliy why.

Shareholders started to become restless around mid to late summer of 2011. We were waiting for a drill permit previous this time that was applied for in summer of 2010 and not received til May 2011. Also around this time, the financials were showing huge increases in the travel expenditures, I believe if you take the 3 year average of this travel expenditure from Feb 2013 back to 2010, it will equate to around $3000 per day being spent on travel alone! This is an exploration company looking for minerals, the travel expenditures initiated grave concerns from the shareholders as well as smaller concerns showing up in the financials, such as salaries being paid to certain executive/directors. This company, on paper in the financials, does not have a revenue stream derived from sale of products or services, it is, as per the financials, totally dependent on securing financing from the market in the line of issuing stock. As we know, issuing of stock dilutes existing shareholders and becomes a concern. It is realized that a company must raise funds to operate, but it is also expected that discernment goes into the spending of these funds by management. This flamboyant travel expenditure also was coinciding with TV appearances, a Forbes interview, many meetings in Europe and the U.S. with what appeared to be distinguished firms and high net worth individuals, giving the impression to some shareholders that perhaps this was a huge find and that in the course of business, this leg work had to be done. Here is a link to the Forbes interview, take note of the remarks near the end "major gold find" "I know", and others,



http://www.youtube.com/watch?v=em44IC18CwM



Also perhaps, the question as to why to even do this interview, should be entertained. Sure, these are promotional efforts, but wouldn,t most believe that more discretion should have been used by the CEO? The date of this interview should also be noted, Sept 27/2011 in conjunction of when we started trenching the property in May of that year and started drilling somewhere between June and Aug of that year, (the news releases concerning the start date for drilling are unclear, hence the variable date).



Also, reports from investors and others around the flamboyant travel time, suggests the CEO being under the influence of alcohol during some presentations and meetings, causing a less than desirable impression for future funding that may be needed by the company. Another concern related to this travel expenditure, was the use of private jets/planes, with on one occasion, lobster being served in the sky, as rumoured by a source/s. If this was shareholders money being used for this extravagant lifestyle, the shareholders have/had justifiable concerns. Sure, if she had confirmation that we had a huge gold find, she deserved to have fun and I had no real problems with this at the time, because I believed she was competent and my investment security was enhanced by her actions. In reality, what CEO would publicly reveal a lavish lifestyle, perhaps flaunt a property, if it could not be justified at the time?



continued.....





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At the AGM of Nov 2011, a message was sent to management by shareholders voting down managements request for increased stock options. This action revealed 2 messages to management, the strength of the shareholders as per the amount of votes voting "against" and that shareholders were not happy rewarding management in light of the ridiculous travel expenditures and what seemed a considerably long time waiting for drill/trenching results that began as much as 6 months prior. An audio of the presentation that followed the AGM is documented and contains much information conveyed by the CEO concerning the property. One comment in particular, pertains to Quantecs involvement with SLI on a "day to day basis" and the resemblance of the Tesoro property geophysics to that of Red Lake, owned by Goldcorp and considered one of the richest gold mines in the world. After disappointing drill results, Quantec was consulted by some investors in June or so of 2012, approximately 7 months after the CEO made this statement, and were told by Quantec, that Quantec had no communications with SLI for the previous 18 months, which would approximately place last contact around Jan 2011, a time when the company was not working on the Tesoro and 5 months prior to the commencement of any work. 

So, when investors heard that management was not in contact with SLI as was recorded in the AGM audio of 2011, alarm bells went off and only enhanced our concerns even more with management. I should make reference to the audio of the Feb 2012 conference call held by the CEO in which one of her remarks addressing shareholders was "go harass an immigrant".This is very disturbing anytime, when a CEO or anyone speaks like this, let alone that we have investors in this stock that are immigrants, this not only effects a small portion, it affects all shareholders. Also at the end of this conference call, investors were supposedly allowed to enter a question and answer period with the CEO, but suspiciously, as you hear in the audio, the CEO says "no questions ?" "bye". There were investors that tried to get through with some very important questions and concerns, I was one, but for some reason, the connection was broke for calling in,and no investors could participate. This should be an operable link to the conference call;