ANNUAL - 2008 2008 2007 2006 2005 2004 2003 2002 2001 2000                   Dear Shareholder: In 2008, the Company completed a significant drill program which confirmed aboveaverage grades in relatively untested portions of the deposit and recognized a broad, lower grade halo. Watts, Griffis and McOuat recommends remodelling of the mineralized zones to incorporate this favourable new data. Additionally, they recommend that further metallurgical testing, design of a conceptual site plan and hydrology studies be undertaken. Significant savings may be realized from this information being incorporated into the preliminary economic assessment of the project. The Company is in a defensive position as it seeks financing to undertake this work on reasonable terms in an environment where risk capital markets have collapsed. On a positive note, the Canadian dollar gold price rose $150 per ounce this year and now sits comfortably above $Cdn1,000 per ounce. All this worry and uncertainty supports the value of gold. On behalf of the Board of Directors, George N. Mannard President April 27, 2009