Cline Mining Corporation T.CMK

Extract

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EXTRACT FROM JENNINGS SITE VISIT REPORT DATED APRIL 18, 2011

Ramp up -– As noted, CMK management reiterated its 3 mtpy exit production rate target for 2011.

This requires putting 10 continuous miners into operation by the end of 2011; currently, three are

onsite, with one in operation. This also requires CMK to obtain any required extensions of existing

permits on a timely basis. Management noted that such extensions are somewhat routine, although

any delays could impact the Company's ability to reach its production target of 1 million tonnes in

2011. The Company is also working to manage the logistics (housing, transportation) of significantly

expanding the onsite labour force from 100 to over 400 miners.


Both Jennings and Cormark did indicate in thier recent reports that 1M in 2011 may prove to be too aggresive.  Noone connected the dots to a financing.  This surprise is a huge miss by the Company Mgmt its also better to plan your financing so you are not blindsided by the need for more money.  If they are planned in advance they can be spun as a positive - ie this financing will allow us to accelerate production targets.  I think some cost overuns caused this and not necessarily a few month delay in sales.