Southridge Enterprises Inc (SRGE)

[I-Glow]

It wasn't 2004. Tumi closed up Cinco Minas at the beginning of 2006.

The Company also conducted a geological survey and drill program on the Cinco Minas Property in early 2005. Results were received in May 2005. Based on the results, the Company determined to cease further work on the Cinco Minas Property in 2005. As a result, in fiscal 2005 the Company recorded a write-off of $2,926,030 of acquisition and exploration costs, reflecting the abandonment of the Cinco Minas Property.

From Jan 2005 to Dec 2005 the price of gold was $424 to $509 and in June of 2006 it was $625.

You think Tumi didn't see the increase in the price of Gold and take that into account when they wrote off $3 million. I don't think so.

So the price is 3 times what it was when Tumi left - if they thought it was close to being a viable project they wouldn't have shut it down.

The reserves weren't there and the underground mining conditions are such that it is not only dangerous to mine but also very expensive to mine in those conditions.

The surface mining is low quality grade and the mining ratios are large - does today's gold prices justify reopening Cinco Minas - I don't think so and neither do any real mining companies.

IG