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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: Shirley Owen who wrote (9373)	4/1/1998 3:39:00 PM
From: Ross Mickey	Read Replies (1) \| Respond to of 14627

Shirley. I have been pouring over the financial statement. Here are the highlights. From May 1, 1997 to January 31, 1998 (nine months) Operating expenses minus the $740,668 "investigation costs" (I am assuming this is office work assessing new properties in which case they are "operating costs" for accounting purposes only) and adding back $286,350 in interest and foreign exchange were $1,364,479. This would be an annual burn rate of $1,819,305 just to keep the operations going. Expenditures on resource exploration and assessment is $2,854,890. I don't see how I could legitimately extrapolate to 12 months from this figure. I can't complain about this amount as this is what we want them to use our money for. These two total $4,674,195 per year. So our $9,947,475 in cash can last us two years at this rate. Lets say April 30, 2000. We have 19,017,370 shares paid for which raised $23,501,225 for an average outstanding share price of $1.24 (last sale today $1.25) During the period we raised $3,173,825 from the exercise of 2,057,850 warrants for an average price of $1.54. July 6, 1997 1,304,350 at $2.00 and Jan 26,1998 753,500 at $0.75. We just sold 1,000,000 at $0.75 for $750,000. We can expect to issue another 3,845,000 shares for another $9,225,875 in 1999. Average share price of $2.40. This would give us another two years at the current burn rate. Another observation. We made our payments on La Colorada. We only have two more. One on July 25th for $50,000 and one on Jan. 25, 1999 for $1,250,000. That's a big payment in nine months. I would think something will be decided before then. We also made the payments for Cerro Blanco. We need to make another payment of $300,000 on May 17, 1998 and incur another $80,000 in exploration expenses. This seems highly unlikely since we will owe another $300,000 on Nov. 17, 1998. Shall we kiss this one goodbye? Best of Luck, Ross