David Hohnstein, C

further to our earlier discussion, Phyllis has confirmed with me that the last submission by Kinross for their monthly reporting under the Lupin Licence was for the month of October. Mike did indicate in the report that there would be no further activity at the site, however the reporting obligations are still required. I've attached a copy for your information.

If you could put together a quick letter for the months of Nov/Dec'06 indicating no activity, and also that you are reporting to fill the gap left during the transition period of the Licence assignment, that would be good. Again, for Jan, Feb, Mar and now April, the same would be required. If the camp was used during this period, then that should be indicated in the monthly reports. For 2007, one comprehensive letter would be fine if no activity has taken place, otherwise please indicate in seperate letters activity for any given month (easier for our filing).

David Hohnstein

18831-81 A Avenue
Edmonton, Alberta T5T 5B4

Office Phone: 780.443.4406 Office Fax: 780.443.4080

Email: David.Hohnstein@nucleus.com

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