RE: Financial Statements & MDAQuick Hilites
Cline Lake Gold Property
The current drill program is expected to be completed by mid July, at which time the company intends to engage a consultant to prepare an engineering report based on the work carried out, as wel as significant historical data base available on the property.
New Elk Cole Mine Property
The company is currently also completingformal documentation for its loan financing of C$19.0 million and the related arrangements with Mitsui Matsushima International Pty. Ltd. ('MMI') under our MOU previously announced and detailed. Part of the loan proceeds will be applied to complete the aquisition of New Elk and its assets under the New Elk Agreement.
Lodgepole Coal Mine Property
The company is engaged in the permitting phae of its Lodgepole coal mine development in south-east British Columbia, Canada. The Lodgepole coal mine project is a valuable Canadian mineral resource with coal reserves and reserves in place of 157,800,000 tonnes.
Lossan Coal Mine Property
The Company is presently reviewing various options to accelerate development to production of Lossan inlight of the outlook for continuing the favorable supply-demand balance and coal prices.
Soalala Iron Ore Deposit, Madagascar
The president of Clineand Mitsui Matsushima Co. Ltd. recently met in Japan with President Marc Ravalomanana of Madagascar and discussed Soalala, bekisopa and the Cline developments in Madagascar.
The recent trend to significantly higher global prices for both metallurgical steelmaking coal and iron ore, resulting from significan inbalances between mine supply and industry demand, is a positive developement for the Company's large resources in these strategic industry sectors, and presents immediate developement to production opportunities.
Outstanding Share Data
As at July 15, 2008. the companyhad 84,297,942 shares outstanding, 6,584,375 options outstanding and 4,109,700 warrants outstanding.