Harborside Inc. C.BUDD

Hitting one million ounces

[Snegamook]

If this happens, the jv will form another jv with a producer, likely Barrick, which will want at least 70%. This leaves LAK with 30% of 30%, or 9% of the operation, plus any net smelter royalty. One percent at 100,000 ounces a year would yield LAK about $500K annually. Unless there is some real shrewd dealing with the operating agreement, the 9% wont be worth much. The operator's accountants will see to that!