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Gold/Mining/Energy : Exall Resources/Glimmer Resources -- Ignore unavailable to you. Want to Upgrade?

To: CLK who wrote (745)	12/31/1998 6:49:00 AM
From: Winzer	Read Replies (1) \| Respond to of 1319

CLK, I don't really know (or care about) the details; but from what I understand from being in the play for over the past 5 years, the property is in a positive cash flow situation. I would SPECULATE that: Answer 1: GME does not get paid until EXL recover its capital investment. And the reason that we don't know where we are in this phase of capital recovery is because of the litigation proceedings. (Did you talk to Richard McCloskey?, I surprised that this answer is not available). I suspect that when the contracts were being prepared, EXL's terms of reference was with George Kent a soon to be retired professor at the University of Toronto. Now they have to deal with a group of well seasoned veterans in the McCloskey Group. (If you have MineScan (from the Northern Miner)just search for McCloskey and see what shows up; then George Kent- BIG difference). An armchair strategist might draw their own conclusions on delaying tactics used. Answer 2: With the latest reserves due to be reported on a year end basis I would speculate that at least 500,000 mineable ounces will be reported (based on a projection of the previously reported rate of reserves expansion - provided that the same rate of drilling continued). The long term/blue sky appears to be in the 2,000,000 ozs range. In no operation will this type of reserve be drilled ahead of time; but the indications appear to confirm a mine life of over 10 years @100,000 opy. Plus they have not found the Mother Lode as yet (have not heard anyway) if there is one, and this potential must be considered. Answer 3: GME's plan B was explained yesterday re the identification of financing options (share issue and private placement) to bankroll GME for as long as it takes to resolve the matter. In praise of both parties, in the last couple of years they have made much progress regarding the terms of reference and GME and EXL have apparently (from early fall NR's) traded proposals. I think that the major stumbling block is that GME's review has them assuming ownership because their forsenic calculation suggest that they are entitled to manage the property (over 50%). The negotions MUST resume early in the new year and the matter resolved before they get into shaft sinking (headframe & milling); because it does not get better with time. Conclusion: They must be talking again if they're not telling you anything. I find it hard to believe that the terms of the contract are not available to the shareholders. As I indicated yesterday, I have enough faith that based on the progress made to date, that, the problem will be resolved early in the new year that I don't really have any concerns about your Questions 1, 2 & 3. Now if you're looking to invest big bucks you may want to have a company like Nesbitt Burns or Dominion Securities look at the details. All I have going for me is that I have been in mining for over 20 years and have investigated MANY situatons (with some failures, I might add) and I have every confidence that the problem will be resolved soon. I don't think that EXL can afford to wait/frustrate GME out. That's why I believe in diversification. Not only equal GME/EXL; SPECULATIVES outside the industry as well (personal only do your own DD: ARP, WSP, HPC etc). THERE ARE NO CLEAR ANSWERS. The bet here is the SPECULATION that the two parties are professionals and will resolve this matter soon. THE POG is only predicted to go up to $US 320 in 1999. So why go into business if you cannot enhance shareholder value? Once the news gets the market's attention (like EXL's last quarter's results did) potential shareholders get turned off time and again by litigation. Winzer