Message to Shareholders

August 13 2010 | May 13 2010

The strong gold price affords us the opportunity to aggressively develop our higher grade zones while mining once marginal grades. This is where we are in our mining-development sequence. This work is generating sufficient cash flow to fund exploration, develop new zones, upgrade our mining fleet, advance growth projects and drill, drill, drill. We expect grades to improve in the second half of the year and to be even stronger next year.

We are investing in our operations for the long term and feel judicious capital investments in the shadow of our existing infrastructure offer the lowest risk growth potential at this time.

The Mishi project shows considerable promise and room to grow. We are advancing towards the Dubuisson Zone in a new area first recognized in the fall of 2008. We have taken concrete steps towards demonstrating the growth potential of our assets.

On behalf of the Board of Directors,

Donovan Pollitt, P.Eng.
President and CEO

August 13, 2010