Cline Mining Corporation T.CMK

RE: RE: RE: RE: RE: RE: RE: Financing Closed

[BenVest99]

Calabinvest,

The last figure I found was in the last MD&A posted on sedar on 15 October 09. They do say in this document that they will need $20 million to get the mine into full production.

"Cline is presently in discussions with financial institutions and financially interested groups with a view to raising on-going financing of US$20 million to bring New Elk into commercial production at its full planned rate of 3 million tons of coal annually, as described. The Company has sufficient funds for its immediate purpose and is now providing for its near future and continuing requirements."

The figure I first saw was the $70 million estimated in the NI43-101 document. Since they paid $20 million to acquire the mine, their should be $50 million left to bring the mine into production minus the reclamation bond and the $1.00 per tonne royalty.

The total acquisition capital and refurbishment costs for he mine to first stage production have been estimated by the Company to be U.S.$70 million and includes assumption of the current Reclamation Bond and a Royalty of U.S.$1 .00 per tonne of coal mined and sold from the mine and coal plant site.

Unless the $30 million difference left is equal to the reclamation bond and the royalty, I don't know what they have cut to bring the total cost down to $20 million as stated in the last MD&A. Nevertheless, I guess we have to work with the $20 million figure when doing our analysis.

You stated that the last figure mentioned was $100 million to bring the mine in full production. Was this before of after the 15 October 09 MD&A? If so, where did you get this number?