Southridge Enterprises Inc (SRGE)

[I-Glow]

Why did Tumi abandon Gran Cabrera?

A work program on the Gran Cabrera Properties was conducted in April 2004 and consisted of data recompilation, geological mapping and verification or extension of earlier channel sampling of vein, stockwork and breccia hosted precious metal mineralization, seeking ore grade mineralization suitable for open-pit mining. Based on the results, the Company determined to cease further work on the Gran Cabrera Prospect and, accordingly, during the 2004 fiscal year, wrote-off $608,002 of acquisition costs and exploration expenditures relating to the Gran Cabrera Prospect. Formal notification of termination of the Gran Cabrera HOA was made by the Company in March 2005.

Tumi didn't like the results of the data which shows the mineralization is low in quality and reserves. They exchanged concessions for the La Trini and Mololoa claims, Jalisco, Mexico - notice they stayed in the same area but just moved to higher quality claims.

IG