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Gold/Mining/Energy : GMD RESOURCE -- Ignore unavailable to you. Want to Upgrade?

To: VAUGHN who wrote (707)	4/2/1998 12:32:00 AM
From: Dave R. Webb	Respond to of 1030

In response to Vaughn, with some limitations on what can be said... Is GMD in the loan business? If it is, please let me know, I would like one of these discounted babies as well. No, GMD is not in the loan business. So what happened? Did Farrel & LMX plead no $$? Where are the loan $$'s? Why can they not be returned/repaid NOW or the assets purchased with them transferred to GMD? LMX has a working capital deficiency of more than $3 million. This means no cash...no way to pay the loans. The money was used to pay for and develop some Mexican assets, recently sold for $10,000 plus retained royalties, and for a drill hole in Newfoundland. GMD doesn't want either. Why should GMD & shareholders put their development plans on go slow or hold for two years? The alternative?? Why can't LMX shares of equivalent value be transferred to GMD for sale now? Why hold them as security? LMX @ $.25, debt of $2 million = 8 million shares. GMD would be an control person as defined by the BCSC and an insider. It would have to give advance notice of its intent to sell shares. What might that be worth? Why can't Farrel Financial assets be transferred to GMD for sale now? No comment If loans can not be repaid now, why is Farrell not under arrest for misappropriation of company funds and/or embezzlement? Why are his assets not seized and liquidated? You don't seriously think I'd comment on this? Why are GMD shareholders being penalized rather than LMX shareholders? We are doing the best in a very very tough situation. Without a reasonable and detailed explanation David, I might suggest that shareholders and the market may well tar you with the same brush as your predecessor. This is a risk I accepted when I agreed to stay and try to clear things up. Often the messenger is shot. I will only stay long enough to get things up and going. It is a miserable job because there are many things that can't be disclosed. This leads to speculation and questions like the ones you've raised. Considering that I haven't sold a share in nearly a year, and that I directly and indirectly control over half a million shares, I'm somewhat "pissed-off" as well. If you think I'm enjoying laying-off staff, talking to creditors about overdue accounts, dealing with lawsuits you must think I have some warped sense of humour. I really would rather be doing something else. I sympathize with you shareholders because I am one. More than that. The Discovery Mine came from me, claims Gerry Hess and I staked using our own funds on a frosty December a few years back. The Royce Group diamond property came from me, claims I personally staked, using my own money and money from friends and family, sleeping in a summer-weight tent pitched in a snowbank on the edge of frozen lakes. Every action that is being taken has only one goal in mind, and that is maximizing shareholder value. If it means giving a little to guarantee a better chance at repayment, we'll take it. I'm not gambling here. I want cash back, as much and as fast as possible. I want our projects to go ahead, as fast and as far as possible. I have a very vested interest. These projects are mine. They came from me, and with help from family, friends, and yes, Don Farrell deserves credit for getting the financing together to make this work. It was and is your money, but I will take credit for targeting the land. It was me and no one else. Let's fix this, and get on with it. Dave

To: VAUGHN who wrote (707)	4/2/1998 12:41:00 AM
From: Dave R. Webb	Read Replies (3) \| Respond to of 1030

I'm getting kind of wordy....I guess after three months of this it gets to me. Sorry for the preceding outpouring. There are 101 other people involved in all of the projects. Gerry Hess nearly killed himself walking the claim line at Discovery to confirm it was properly placed. Roger Dejardin did kill himself a few years later after helping stake the claims. Members of the PanD syndicate raised the funds to acquire the original claims for the Royce Group. Robin Goad collected the first till samples on the initial Royce Claims that Orex labs processed and M. Morrison found the extremely elevated pyrope counts. Bob Barnett probed these and emphasized the significance to us. Kalvik Mining Services then quietly acquired over 600,000 acres without anyone finding out what was happening. Great Slave Helicopters did the flying. All the while Don kept the cash coming to make it happen. That's where you shareholders came in. A screw-up anywhere in there and it wouldn't have happened. There are as many people I didn't mention. Apologise to all omitted. Dave