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Ultimately Developing a District with Multiple Near-Surface Gold Resources along the +30 km Property in Idaho

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Message: Update ,with more to come. . . .

This past Saturday morning a small group of us met in Lewiston, ID and received a briefing-presentation from PEM management which was based on PEM's new June 2011 official corporate presentation, which may soon be available on their web site. The vigorous and attention grabbing presentation was provided by Mr. Steiner, Ms. Kopr and Mr. Ostenson. Those in attendence included Mike Ostenson's proud parents from Montana, a retired drill rig business owner and PEM investor from Vancouver Island, B.C., a mining industry investor from southern Idaho, and PEM investors from the City of Vancouver, B.C. area.

In the presentation, and perhaps of some interest, it was written that major Shareholders included Dundee Resources; Goodman & Co; Ned Goodman Inv. Counsel LTD; CMP Gold Trust; RBC; Sprott Asset Management; Ausmon Resources; Smartstep; among others.

It was explained that sufficient funding existed for 2011 and possibly part of 2012. New financing and/or funding may come from traditional or perhaps even unexpected sources and/or methods. Of possible interest, among a few other "creative" funding mechanisms include the current and ongoing sale of trees to a timber cutting company. Additionally, the state of Idaho is offering business loans for business expansion that enhances the state's economic and employment opportunities, something which PEM would qualify for. Additionally, such a method would have the added benefit of continuing to commit the state to supporting PEM's continued success. With regard to other possible sources of revenue and/or funding? Creative or esoteric avenues are possible and are being given thought to. At present, however, the more traditional Private Placement process is what will be relied upon in the absence of alternative methods. We will likely learn more on how this matter develops later this year, if not soon thereafter.

Idaho was ranked 6th among all U.S. states for being pro mining and has implemented a streamlined permitting process. As an example, In 2010, Formation Metals received mine permit approvals and was the beneficiary of receiving a "Stimulus Act Recovery Zone Bond Allocation of 77.7 million US dollars by the state of Idaho.

Signs of a 30km gold trend include, but are not limited to, 8m oz (+) of regional historic gold production; 30km (+) regional structure identifyed by geophysics; 20km (+) placer-mining along strike; 20 km (+) historic workings; 3 deposits open in all directions; and new drill discoveries. Of note, we got to see some of all of the above including a huge, previous, open pit, mine site.

I'd like to point out that on March 29 and 31 I posted that there appeared to be in excess of 100km of "potential mineralized structure." PEM's official presentation says "+" 60 km. I then posted an apology for perhaps being erroneous in my calculations, even though one of PEM's maps seemed to indicate a much higher number. Plus, it could be said, the number could be higher yet if the newest claims were added. While at Saturday's briefing it was said that, in reality, the case could be made for a couple hundred or more km of parallel and cross cutting potential mineralized targets (exploration potential). So, I feel vindicated. It was also said that it could take several years to explore the property in general. PEM hopes to have a 2012 drill plan for as much as 100,000 meters while using 6 or more drill rigs. It was further said that current claims would cost PEM approximately $300,000 a year to maintain. It is believed that the Friday Petsite could (as in maybe) have several million ounces of gold and that the Deadwood and Buffalo Gulch zones could (as in "we are speculating for now") be significantly higher. Numerous additional potential mineralized structures could add significantly to any estimated, and eventual, resource numbers. Encountering numerous new discoveries such as the "Lucky Strike" and the "Monday" are what is anticipated and hoped for. Further drilling must be accomplished before being able to more accurately quantify and amend what could be ever increasing higher numbers.

Please know that much of the above depends on future actions & results. There are no absolutes. There are many educated guesses. This is not investment advice. I am merely sharing with you bits of conversations I was privilged to be a part of. There were a few things said, that I don't feel comfortable in restating. One such matter may be known in the time ahead if it comes to fruition. Indeed there will likely be more than one new and interesting matters to be revealed in the months and year ahead. It is hard for anyone to explain where they want to take a company without laying out some goals, desires, objectives, potential plans, etc. So, look for one or more interesting developments in the not too distant future as PEM matures, and further establishes itself and it's presence, along the Orogrande Shear Zone.

A scoping study has been initiated and will be ongoing and modified as new geological and test results become known. The initial study will be for the purpose of developing an economic assessment study, including mining options, for parts or all of PEM's land holdings.

On our visit we got to see much of the Friday and Deadwood zones. The Buffalo Gulch zone had to be bypassed due to road damage that was yet to be repaired. We saw old mine sites, old trails, mineralized seams, fault lines, outcroppings, endless piles of tailings, oxidized soil, and much more all in great numbers literally everywhere we went. It was hard to conceptualize that we were walking and driving on billions of dollars worth of precious metal.

As we drove through the village of Elk City, I was taken back by the comparison one could easilly make between what it once was and what it is today. Elk City borders the Deadwood zone on a state road that dead ends just past the village. Contained within the area is what is refered to as "The House" where core samples are scrutinized and catalogued, and where a small cadre of our geologists work and live from, complete with a fenced in vegetable garden maintained in after hours by a rotating staff who work 7 days a week while on site. Additionally, there is a place known as "The Incubator" which is a location provided by a government economic development program where core samples are cut lengthwise in half before one half of all cores are shipped via UPS to be assayed. PEM has a noticable small presence in Elk City. PEM's presence, and those of any other possible suitors, will grow, in my estimation. The village will continue to awaken and revitalize. The velocity of money, generated by PEM's presence, will increase within the community thereby reviving it's economy as time goes on. It's tax base will improve. It's localized depression will wane as activity increases, people begin to stir, new jobs are created, new cash is spent locally, infrastructure is improved, goods and services become more available and the local standard of living likely improves to some degree. Those who live there for peace and quiet, including the elk, deer and one bear that we saw, may have to acclamate themselves to some increasing activity. I do believe it has been happening and will continue to do so as time goes by.

I was very impressed with Mike Ostenson's staff, without exception. It was a joy to meet them, to hear their enthusiasm, and to share a few moments with them as they briefed us with what they were doing and planned to do as time goes on. Previously, I only knew Mike Ostenson from what I had read and from a couple of video interviews he had participated in. After having spent a day and a half with him, my wife and I were impressed with his knowledge, skill and ability. He is a solid, experienced, and deeply thoughtful presence with a steady hand at the helm of the field operations in Idaho. I recall hearing someone recite, what I would classify as examples of some of his resolute commitment, stories of his braving snow storms to respond to on site locations for all manner of issues and reasons, including night time vigils to help drill rig operators, and rising at 3 a.m. in the morning to accomplish one thing or another. With Mike I found a kindred spirit, one who gives his all, is loyal to a fault, wears his integrity on his sleeve, and who loves his work and cares about those he is responsible for. I have high praise for Mike. He knows his stuff inside and out.

It was abundently clear to my wife and me that Mr. Steiner has great plans. In the interim he is looking forward to drilling the heck out of locations of interest. He cited to us PEM's crowded, target rich, environment begging for a drill bit's undivided attention. His discussions were vibrant and his enthusiasm was contagious. He is a leader's leader.

Ms Kopr impressed my wife and me in so many ways. She was knowledgable and very informative. In fact, her breadth of knowledge and understanding all things related to PEM the precious metals market, mining, and all aspects of exploration, and even the economy stunned us. We even told her so. It was a non stop education for us throughout the visit. Her commitment to PEM and it's management was exciting to witness and her effervessence in describing all things PEM related was likewise infectious. It seems Del Steiner has put together a small team of people who not only serve him and shareholders well, but a team who admires Mr. Steiner without exception. It is high praise coming from me to be able to say that I could work for any one of them.

A new NI43-101 may (as in maybe) be done next spring. Del Steiner hopes to exceed 25,000 meters of drilling this year upwards as far as possible by the end of the year. Look for one or more possible news releases this week or next week. However, please know that it is not advantageous to announce "good" news in times when the market will not be rewarding (emphasis added). So please don't get worried if news releases are occassionally unpredictable. Timing news releases, for whatever the reason I guess, is sometimes prudent. There are some interesting and good subject matters, for us to hear about. PEM is on the move. The current share price has nothing to do with PEM's performance. In the face of a recent decline of the share price, our belief in what PEM is doing and where it is going has only escalated.

So, these are some of my opinions mingled with some facts which were shared with us. I am a shareholder but will not add to our holdings at this time, although we wanted to do so at these prices. We have a conscience about whether, on the outside chance, we were accidently and/or unknowningly exposed to conversation that could possibly be interpreted or percieved as wrong for us to use to our advantage. My wife and I were not compensated in any way, and our personal trip expenses were paid for by us, except for a dinner together with all attendees. We consider it "high praise" to be able to say that Mike's and Christine's family have every right to be proud of them. They are so impressive that my wife and I wish we could claim them as our own. Del is in a league of his own as a mining exploration CEO par excellence. He is everything I had hoped he would be, and then some. He is a role model for others to emmulate and learn from. Enough said. We are in good and capable hands.

marwal

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