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Gold/Mining/Energy : South Atlantic Resources

SCQ 25.16

+0.1%

Sep 19 5:00 PM EST

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To: Gunnar who wrote (203)	3/13/2000 11:46:00 AM
From: Gunnar	Read Replies (1) of 225

In one or two weeks there will be more news from Sweden concerning the avarage metal grade and the size of the deposit. The frequency of press releases will increase this spring. We also wait for the results from a prospecting campaign and for the outcome of the negotiations with Boliden concerning direct transportation of the ore from Storliden or from Storliden and Norra Norrliden at the same time. That is to say that we wait for the start up date of the mine and the final decision about the output per annum. Do not under estimate the power in that news that will give us the answer to our question "How much money and when?" Will some of the information from these negotiations be delayed until the faith of Scanmining is clear? Hopefully not. From November there have been two releases a month from SCQ. Letïs see what number we will have at the end of May. I think this might be an interesting time: The share price will adjust to the first step that is the complete Micon report about the deposit and after that prepare for the next step: production. During this process we have the diamonds going into production. I really like this thing when the two wheels over lap each other in this way! The Coïs approach on the E-commerce was conservative when presented to the public, but there are several interesting ways of widening the concept to a great business. There has also been some remarks about finding the source of the diamonds. Thickness and width of the gravel in that area? This would of course be sensational. Personally I regard the diamonds as a dark hourse that might surprise. Management seems more confident. Regards, Gunnar

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