Sarissa Resources Inc (SRSR)

[es1]

So here is the email string I had with Dan...

Hi Dan

My name is ******. You know me (and probably hate me) as ES1 on ihub.
I have been requested to write to you and ask you a few questions. I will say that no matter what you say good or bad I will post the response.

I am sure you are aware that I have a hard time with the company following through on its plan. When you joined I gave you the benefit of the doubt and was willing to give you a chance to make the company what you always claimed it would be.

I liked the idea that you would try to make things as transparent as possible.

Your plan for moving forward was worth a shot.

Now things are changing and to me that is just a sign that the company is falling back to its old ways.

Could you please answer the following questions for me.

1 Why is the company trying to list niostar without a resource estimate. This will only cause it to be a penny stock on the CSE with no real financing ability.

IMO the company needs to have an asset value prior to any listing.

If you were to give the resource estimate prior to the listing SRSRs value would climb considerably. This would only lead to a higher starting point when uplisted and could easily lift the company out of the penny stock area to a real company that could be financed by long term investment and not dilution.

2 Why was the CSE chosen? Yes it is easier to get on but with a resource estimate and THEN a spin out the PPS of Niostar would be well into the $$ and could choose any exchange to list on. As it stands now the company will be lucky to list on the CSE with a PPS over a dime once the dust settles.

3 you stated that the people doing the resource estimate are going to tell you where you need to drill. The problem being they are not the ones signing the 43-101. Shouldnt the person signing the 43-101 be the one telling you where to drill so they would be willing to sign? Who told you to drill where you did? What caused them to be wrong about the drilling location? (or am I wrong in assuming the location was wrong?)

We were also told (through an email posted to the board) "So basically it looks like he originally wanted to see a resource value before the Uplist but because of the extra things needed to go forward , there would be 60 days of downtime for the release of the Ni report . They have to give something back to the people financing this, sounds to me he was saying the financiers want to see forward progress."

I dont know if this is true because I was under the assumption that you had financed the current work being done. But assuming it is I think the long term shareholders have waited a lot longer than the current financiers. I think the 60 day wait is NOTHING. Considering that they waited years for the SOE deal to fall apart I dont think a 60 day wait is a problem.

For the record I believe that a listing of niostar prior to a resource estimate will give the company the worst possible starting point and the 60 day wait would give the company and the financiers a huge head start to becoming the real company you are trying to be.

IMO 43-101 resource estimate would push SRSR up into the teens. The spin out at that point would give us a PPS on the listing of almost $4

The PEA would push this out of penny land and the availability to finance the company would just make things better and better.

Thank you for any response you give and I would also like to thank you for stepping up and trying to get this company moving.

I would like to request that you do not give timelines in emails though. People tend to start pumping a time line estimate from you and when it doesnt happen it not only causes a downturn but it makes the company look like they are failing

Thank again.

*******

PS I am no basher as many assume. I simply like a company that does what it says and says what its done.

SRSR has failed miserably at this so my opinion of the company is negative.

The company can change that by simply doing what they say they would do and not backing down because its hard or slow.

Feel free to slam me if I am way off base. But please make the reasons clear.

As it stands now it appears you are just doing a reverse split and listing niostar as a penny stock so you can sell shares. That would be very sad if true. Especially since the company really has a shot if you guys do things right

Dans Response


I treat all people who inquire about the company the same. I give them respect and provide them the best information I can at the time. Time frames change and what was expected today might be different in 3 weeks. I caution investors about that as I too am continually reminded how difficult it is to move quickly in the mining world.

I more than most understand investors frustration with the company over the years.

The initial plan that was laid out in the fall was expected to provide the company with a Ni43-101 Resource calculation from RPA.

The plan made sense at the time and I raised the required capital to make it happen.

Unfortunately, there were two issues with the plan. First, the MNDM cores were not as complete as the company was led to believe. Certainly in retrospect I should have investigated that fact prior to announcing the plan for them. However, at the time I had no reason to doubt the Information from MNDM. A lesson learned. The second issue was that the historical grid was slightly off. This wasn't known to anyone until we discovered and could identify the original Dominion Gulf hole we found when drilling the 4th hole last fall. While the error wasn't large 20-30 meter on a very large property it still caused us to reclassify 2 of the holes as infill instead of twinning. This is a choice the company and our QP geologist had to make when we learned the new information. Had we not discovered this piece of data it's not clear anyone would have ever know and since the holes highly correlated with the Dominion Gulf data. However the QP and myself are committed to doing everything right and having a unimpeachable QA/QC operation.

So while a slight setback this is easily overcome. No one did anything wrong or made any mistakes (other than I should have verified the MNDM cores prior to announcing). New information was discovered and that information will be a benefit in the long run.

To answer your questions directly.

1. The company has chosen to list prior to the RPA report for several reasons. First because of the new more accurate grid of holes available from our recent discovery I spoke about above and the surveying that took place since that time. RPA has to rebuild its data model. That is going to take time and so instead of doing nothing while we wait this was something we could move on. Also RPA has recommended that we still 2-3 more holes to increase the indicated resource vs the inferred. In addition they are going to use their data model to choose the specific hole location for this work. So we won't have those hole locations until they are a bit further along with the data model. An indicated resource is much better in than an inferred and will provide much better PEA information.

In addition all of this takes money and while we have access to capital we still need shares to trade for that. Although some investors we are dealing with may be willing to take no public Nio-Star shares others want public shares and Sarissa doesn't have too much left in the Authorized and taking the time to call a shareholder meeting and raising that would not be good idea in my opinion. So we chose the CSE as it's quicker and cheaper and will help us reach our goals.

As you wrote in a perfect world it would be better to have a resource estimate and then list especially if you needed large amounts of cash. However because of our timetables and the fact we don't need that much cash to complete the work through PEA I felt that we could accomplish more for the company is a quicker period of time with this plan instead of waiting months to get the resource calculation.

The investors we are dealing with understand the historical data and how that data will become NI-43-101 Compliant. The upcoming Chance report will say that the resource would already classify as inferred if a calculation was done to CIM standards. We could get an inferred category from RPA but they would still have to rebuild their data model as the quality of their work is why they have the reputation they have. And since we have to wait anyways why settle for an inferred? RPA recommended that we do the drilling!


2. We chose the CSE because it does the job we need in the time frame we need it done. To go to TSX-v we would have been 6 months more. In that time instead of just waiting for a listing we could be done with Phase 1 development and have a completed PEA. If at that time TSX-V is warranted we can do it but we will already have a PEA. There are other listing choices such as London or Hong Kong but the CSE will get us where we need to the quickest and cheapest. The CSE is just a step on the path to building a mine not the destination.

I believe you and many other investors think a Compliant NI-43-101 is going to bring huge value. Because in 2009 the stock ran up to the $0.20 range on that expectation doesn't mean it will again. The present environment is nothing like 2009. The key piece of data is the PEA. That is what we want to accomplish. Certainly the NI 43-101 should help our value it isn't the solution so many think it will be.

As I have said for year it's capital that makes mining and the PEA is what answers the capitals questions. Just because it's in the ground doesn't mean much. While it's certainly better than not having it in the ground what matters is the cost to get it out, how expensive and pure is the processing and how much it is going to cost to do it all and how quickly the capital can be paid back.


3. Your understanding of this is wrong RPA is doing the work, coming up with the estimate and categorization and most certainly are who is signing off on it all. That is why we are using such a big name and it costs 10x what a report from Chance does. The RPA resource calculation and PEA will be respected because of who signed off on them.

As far as the previous locations being wrong no one was wrong it was correct based on the available information, it was later shown to be wrong based on new information discovered after the fact.

There is only one goal here and that is to develop the property to become a mine. Certainly the in the past the execution wasn't good. I think things have changed in that regard despite of what is going on presently. It is my hope that this response answer questions for you and others who are questioning my decisions.

There isn't a perfect solution at all times their is just picking a plan and forging ahead. Despite this plan and our action we are also speaking to others who could take this plan in other directions where things happen in a different order with the goal of getting a PEA done ASAP. However because these other efforts are speculative I don't believe it is wise to sit and wait while they play out. Move forward and be prepared to be flexible and change course as the need or opportunity arises.

I am learning also and I don't pretend to be a mining expert but I have those who are so I can plan the business. Mistakes will be made and everyone won't be happy at all times but the property has all significant potential and not much money or time relative to what we have already spent is needed to bring it to the point where that potential may be recognized for shareholders .

I am not worried about who is pro and con the company on stock message boards. I have no control over that. However I encourage posters to contact me and get the questions answered by the company as opposed to guessing.

Dan Byrnes

His added response in a second email

Another part of the picture is the story has been played out with Sarissa. It much harder to tell a story of what the Nemegosenda property could be in Sarissa for the xth number of time.

The CSE story will be able to unfold with developments that can and will be accomplished. Kind of winding back SRSR to early 2009 and actually finishing the job this time. There are Canadian groups in mining and early stage mine financing and equity buyers who the CSE is a much better alternative for than the PINKs.

So the CSE is also part of the reboot strategy as our story and a place to start over.

Dan Byrnes


Just so you understand I recieved Dans second email first and responded prior to reading the first one. That is why I asked about the resource again even though it was answered.

Hi Dan

I agree that SRSR has been played out. A good plan for a new start. But why list without a resource value for the asset?
It would give the company a good starting point. Doing a 43-101 with out one is just making SRSR all over again.
I didn't think the company wanted to be a penny stock. It isnt like the history of this company is going to go away with just a name change and exchange switch.

thank you for your time.

Dans Response
We are going to list without the resource because that is what is needed for the company to tap the capital needed to move forward. Not that much money is needed so getting it and moving ahead is more important than other factors in my opinion. While there may be room for several additional suppliers we need to get our PEA out there before there is even more competition; after 7 years it's more than time. It is a better alternative to increasing the AS in Sarissa. Sarissa doesn't have enough shares left to achieve what I need to do. Also the story can be started a new. Certainly some pinksheet folks will know but there is an entire group of investors that don't do Pinksheets that will look at CSE. The CSE may not be an equal to the TSX-V but the difference is shrinking not growing according to investment bankers, mining funds and other mining CEO's in Canada. Also we can add some higher quality directors at the same time and expand our contacts.

It may not be perfect but the CSE listing is something that can be built on. Having no resource isn't a good as having one but delivering the metallurgy, the complaint reserve and the PEA in short order will show investors things are getting done. After that is really just finding the end users and big financing. Not likely that the company would do a full feasibility by selling equity unless the market cap easily supports it. Also if a higher listing makes sense or is required it can be done at that time. There may be better fits than Canada by then that don't make sense without a PEA like the Far East or London?

Feel free to contact me at any time and I will be happy to answer any questions.

Dan Byrnes


So there is Dans statements. I will not comment on them prior to the board reading them and making their own minds up. I responded again but it was fairly late and I have not heard back from him yet.