EvaluationRetooling Our Resource EstimateWe were expecting Canaco (CAN-SO) to release the maiden resource estimate for the Magambazi deposit on March 30, 2012, but management has stated that there is likely to be a delay of 2-4 weeks in releasing the estimate. Although the short delay does not impact our valuation for the company, we anticipate that the total ounces contained within the forthcoming estimate will be below our initial expectations. We were initially expecting between 2.0M oz. and 2.5M oz.of gold with an average grade of approximately 3.0g/t to be included in the upcoming resource and that continued exploration would add approximately 1.0M oz., bringing the total resource to 3.5M oz. within the next 12 months. In reviewing drilling completed through Q4/2011 and Q1/2012, we now believe the total ounces within the resource will be below initial estimates and have revised our valuation to include 2.2M oz. of gold For Magambazi. Although our expectation for total ounces has decreased, we believe the overall average grade may improve versus our initial estimate.Reviewing all available drilling information to date , the average grade of all samples reported is approximately 3.4g/t. This figure is weighted based on the length of each individual sample and incorporates assays from all of the interpreted zones within the Magambazi ridge. We have applied the weighted average grade of 3.4g/t into our revised valuation until the compliant resource is available. Although we have increased our estimate for average grade within Magambazi, we also believe that the strip ratio incorporated into a future open pit may be above our initial estimate of 4:1.We maintain that there is a possibility that Canaco may elect to extract some of the ore from underground mining, but with our reduced estimate for total ounces it may prove more economical to extract ore exclusively by open pit mining. Based on reviewing drilling completed in recent months and assuming Canaco advances the project solely as an open pit, we have increased our estimated strip ratio for the deposit to 5.5:1. Despite the increase in our estimated strip ratio, our increased estimate for grade has a mitigating influence on costs with our Life of Mine (LOM) average cash costs increasing marginally to US$463/oz. from $461/oz. Our estimated LOM has reduced from 13 years to approximately 8 years and total annual production has dropped by approximately 17% versus our initial estimate to 200,000oz. due to the reduction in total estimated ounces and removal of a simultaneous underground component.Exhibit 1 displays our expectations