Greystone Housing Impact Investors LP V.GHI

Aug Hardman & Co

[wofats]

NANIKA RESOURCES

We met the Nanika

management on its home

ground in Vancouver in late

July for an update because

of negative rumours in the

market about the

commitment of the South

Korean partners to the

Lucky Ship molybdenum

joint venture. There have

been delays in signing this

agreement, but they appear

due more to holidays on the

Korean side than any

second thoughts about the

venture. It must be

remembered that the

Koreans have already

committed several million

dollars to this venture, and

they will lose all this (and a

great deal of face) if they

walk away from Lucky Ship

at this stage. Work at Lucky

Ship is currently

concentrated upon obtaining

6

the necessary environmental

approvals under British

Columbia’s onerous

environmental legislation.

There is little doubt that at

the current molybdenum

price Lucky Ship will be a

profitable mine, but the

environmental approvals are

necessary before

development can begin.

We expect the South

Korean partners to sign a

Memorandum of

Understanding by mid-

September. We shall also be

watching for other

developments at this very

interesting and tightly run

company