Good morning Sinister, nice to see you up bright and early. You have written a good argument and for me to give my point of view, I must segment it and reply excerpt by excerpt. I,d rather just write a reply in one post comprised of totally of my opinion, but I feel much may get lost in between your post and mine, that I believe , it is best to construct it in the manner below, keeping everything in one place. The numbers, for example; 1), 2), will be your comments, whereas the letters; a), b), will be my reply.

1)Sculpin, you and a very small few are the only ones that I see complaining. The sad reality is that those policies that you keep posting are there for ALL companies to follow. They are not simply there for the amusement or abuse by a single company. If you have a problem with the policies that govern the way the TSX and the Venture operates then why bother investing at all?

a) Sinster, indeed, you only see a small few complaining on this forum at this time, while in contrast, there seems to be perhaps less, not openly complaining about the complainers, if you will. This is due in part to the fact that many shareholders have witnessed with their own eyes and have experienced ,what they consider blatant injustices. Even though many investors disgust, grows day by day, they do not sell their shares, and have limited themselves from posting, as a result of this disgust for the system and supporters of such a system. Just because their presence is not actually seen on this board, one should not assume that vast numbers are absent from the scene, many are observers. I will grant you, that I would not be putting in the considerable amount of time I do with this investment, if I thought that our number is insignificant and could not effect change.

You speak of the sad reality of legislation of the Exchange and Regulators, I couldn,t agree more on the patheticism it portrays. But here lies part of the problem that investors in this stock have been up against. An investor is assured protective measures from the security regulators as well as the Exchange, but upon review of all the laws/policies, because of being conflicting,confusing and sometimes contradictory, the reality is, there is little to no protection. And when perhaps a chance for protection relies on a court process that costs investors thousands of dollars and a decision is made by one man, its easy once again to see how the fairness becomes absent and that perhaps laws become biased towards the investor and democracy. The reality of all though, is that the Exchange and regulators have the power invested in them, to change rules, make rules and intervene, if it is for the better good, meaning in unique situations whereas the integrity and protection of investors is upheld.

You ask why I invest, if I have problems with the laws and the way the Venture operates? I will assure you, that under current laws,operating guidlines and what I call a sense of false security, I will never be investing again in these markets, unless drastic change is taken. I, as many other shareholders here, and shareholders that are starting to see for themselves in other stocks, are starting to see many problems identified within the system, although this has been identified by small groups in the past, it appears to be escalating. I used to trade, the rules are irrelevant mostly to trading, its when you become an investor, that you really see the importance of how these laws affect you. Seeing is believeing and experiencing is also believing and it tends to wake one up to actually how things are not as they seem, at face value. Its when you dig deeper, that you find just how unreal things are, like protection for investors for example. How can an institution honestly say that they uphold integrity and fairness, when they put most of the power in hands of a few at the top? There is much I can elaborate on this subject, but I am gonna leave it there, for now.

2) Of the many shareholders that you claim have been hurt when did they buy their first stock. You claim that they are investors and not traders. Well, had they traded they would have been out at the top and made a good return on their investments. The opportunity was there was it not. Sure, the people who bought at $2.80 did not make anything but common sense should have screamed sell as soon as the drill results came out.

b) Sinister, with your apparent experience, you know that its not the price or when someone bought their first stock, its the average price. I know shareholders that have bought low and kept buying right up to close to the $2.80 level, of which you speak. There is no way any investor could have reasonably be out at the top, which was around $2.83. This $2.83 figure came around the first part of OCT 2011, around the same time theminingstock report came out that suggested ~$3.50 per share price in the future, and at a time 3 months before the first drill results ever, from the property would be released. No one had any reason to sell then, especially after considering the anomalies from the Quantec geophysics and what they potentially suggested. And, I will comment here, that I find it strange, that the stock price declined steadily within that 3 months, to be around the $2 level, when the first results did arrive. And, when the first results did arrive, right up until now, I believe investors haven,t received adequate information from the company, to be able to make a reasonable investing decision as whether to sell or hold. Without all the information, thats why the majority of investors are still here. Common sense did scream when the first results came out, common sense said, that there is something wrong and that there is not enough information to make a reasonable decision. The trenching results were never released until 6 months after the initial drill results, and arrived with the final drill results of the drill program. Investors knew very well of the open pit scenario and disseminated gold, the CEO even proclaimed the open pit scenarion several times. It was, and still is, quite possible for a shallow open pit mine possibility found as a result of the trenching program. So, the answer is no, the drill results should not have screamed sell, when there was so much more exploration information to come, and didn,t all come out til after the stock price was decimated. And, there is still information that has not been released yet, a re sampling program is only one of perhaps may be several, as per the understanding from news releases.

3) I don't think this was the first post where you suggested that management should apologise for shareholders losses but why? It was not managements fault that the drill results did not live up to the hype nor is it their fault that some shareholders did not sell.

c) The blame is on the choices management made. Apologies can come in the form of compassion displayed by more information. Management were aware of this problem, and that was clearly evident from the question and answer portion of the SLI website. Questions were answered indirectly and some vaguely. But, it wasn,t how the questions were answered so much, it should have been easily identified by management that more information was requested and needed. Perhaps, as a result of the drill plan being scattered and not defining or delineating a known resource when the opportunity was present, didn,t help support the shareprice by adding value? You have to remember, this Tesoro was/is not a green field project, it was well advanced with much surface and near surface information, and of excellent quality I must add, that clearly showed many prospective areas on the property from which some sort of resource estimate could have been established. If someone makes a mistake, is it not respectable to apologize? I will openly say here, that I suspect you as being very close to management.

4) Your entire discussion on proving up a recourse is just outlandish. You must discover the gold first and then prove it up. SLI drilled what appears to me to have been high priority targets out lined by geophysics and corresponding to known vein systems on the property. They missed. Tough break but it happens. Oddly enough it looks like SLI was expecting good results because they fanned out as many as 6-8 holes from a single collar. Something you need to understand is that narrow vein systems are very difficult to prove up. Especially when the veins pinch and swell and even more so when they consist of nugget gold.

d) The gold has been discovered, read all the news releases from 2010 back to 2004-5, look at the description of many gold mineralized structures on the property, so no, my discussion is not outlandish, and to prove up a resource on an advanced property is always the prudent thing for any management to do. Trading companies, exploration companies in particular, should not have executives drawing salaries and securities from the company, and golden parachutes are a no no mentioned in corporate goverance manuals. In some companies, where management draw salaries and get options , they will tend to be less exuberant and less apt to take shareholders interests into consideration, whereas, their salary is secured, and they are not totally dependent on the stock price,and to exercise options as their only compensation.

You don,t continuously drill targets, after the first few may have proven the Quantec wrong, this doesn,t make sense and is no excuse. And you dont miss in drilling mesothermal structures, especially with the technology available today, (The first geophysical survey that recognised sulphides was present 40 years ago, technology greatly advanced in geophysics since then).these structures have origins eminating from sometimes 10km,s below the surface, being continuous to the surface. You also don,t poke 6-8 drill holes from one collar,in the dark, unless you are finding something of merit.

I do understand narrow vein structures fully, and I ask that you don,t try to insult my intelligence, and perhaps do a little research of your own on the geology of deposits. A TIP; one of the veins on the surface of the Tesoro has a width of 110 cm, this is not a narrow vein. TIP; open pit deposits normally have narrow veins, and many, also there is dissemination within house rock and other structures, besides veins, can be mineralized to economic values in open pit deposits.

As for your nugget effect, the C-1 is a consistent gold grade vein, as is most of the C-1 complex appears, would it not be easy to prove/add to the resource estimate of the C-1 complex?

5) You claim to not be blaming anyone and yet you expect an apology from management? You think that the only type of person to be attracted to a PP by SLI would be the type that dissident shareholders have trouble with now? You claim that dissident shareholders do not trust management? I could go on but it is clear that judgment has been passed and you do indeed blame management for your failed investment. I suggest that you should move on. You claim the PP shows no consideration for shareholders and yet without one there would be no company. So, yeah, the company considered shareholders, be grateful for a change!

e) The share price is so low now, that yeah, it would attract anyone perhaps that is looking for a quick buck, but after all that shareholders have been through, don,t you think a nice thing to do, would to be offer most of this to the ones that got hurt the most? I see aggression in your statement to me "be grateful", I am curious as to why you would reveal yourself in this manner? I suggest to expand your perspective, as to see perhaps the contributing factors that lead to the need of a present PP/ funding over the last few years, take a broader perspective, not a short one a few months back. The PP shows no consideration for shareholders in one respect, and not all, that it comes after a time that a letter of intent has been arranged for sale of one of our valuable assets, the Cueva Blanca. I believe there is no justification in your argument .

6) Furthermore, do you not see how the constant negativity towards management not only hurts the share price but can make it increasingly difficult for management to raise money? The constant negativity could ultimately be the demise of your own investment. You claim to be a shareholder and yet are not doing anything but tear down that investment. I don’t understand that. For a brief period I thought you were being the devils advocate to provoke discussion but I fear I was wrong. Why not give the posting a rest and let the company get back to work? Let management do their job and get the share price back up to a better price. And yes, let me get a double or triple!

f) Shareholders have supported the share price, its management that perhaps can help the share price, there may be news of several sorts to come, that will help raise it. Management could have also sued the bashers on Stock house over the years, and helped us shareholders here at Agoracom in supporting our investment, instead of management attacking the very strength of their own company, their loyal shareholders. Can you understand now? Don,t you see, that by management not supporting its loyal shareholders, that it has led to this?

I believe your last remark, says it all; "And yes, let me get a double or triple!". To you, perhaps it is all about the money and perhaps it matters in the least for you to trample as many as you can, to acheive the almighty dollar for yourself, instead of sharing. Why do you guys choose to openly degrade yourself and display your character on these boards?

thank you

love,

rick