Message to Shareholders

Nov 12 2009 | Aug 10 2009 | May 12 2009 | March 23, 2009

In 2008 we prospered from the investment in development at our two mines made in 2007. Results were even better than expected. Production from above average grade stopes at both Kiena and Eagle River totalled over 90,000 ounces or 12.5% better than forecast.

We are now generating significant cash flow and have demonstrated how well our mining properties respond to prudent investments in exploration and development. With this in mind, we are planning an ambitious exploration and development program at both mines in 2009. Over 80,000 metres of drilling is planned with a focus on tracing known structures to depth, examining new targets close to existing workings and proving up the potential of the exciting new Dubuisson discovery in Val d'Or. The goal of this effort is to provide longer term clarity on resource potential. We believe success in this effort will both result in an upward revaluation of our assets in the marketplace and provide the basis for planning organic growth through leveraging significant underutilized capacity at both mining operations.

Economic conditions have swung in our favour. We are very encouraged that gold's historic role as insurance in times of financial turmoil is reflected in our strong financial performance. We view current fiscal policy to be inflationary over the longer term and, therefore, believe gold prices will continue to rise. Conditions have never been more favourable for Canadian gold mines. Our unhedged philosophy, growing bullion inventory and exploration potential serve to maximize leverage to gold prices.

On behalf of the Board of Directors,

Rowland Uloth
President

March 23, 2009