Explor Resources Inc. (fka EXSFF)

[Destinator]

2013 PDAC Explor

I've put a lot of mails from me to Gary and Gary to me on the board. I'm from Belgium and drove 800km by car to meet Gary and Chris in Munich last year. Every info I got, I put on this board to help other investors. Now for me it's difficult to go to Canada simply to meet them again. That's why I hope that others can do the same for me and also give me the info they got.

Regards Steven

Steven820 I have put together some information that I gathered. I hope this matches the fine work that you have done on your past trips and shared with this board. Here it is.

1. Joint Ventures ARE NOT off the table.

2. NI43-101 - In a recent interview with Rick Rule, while he was in Toronto for the PDAC, I heard Rick state that it is not enough for the majors to see just a NI43-101. The firm producing the NI43-101 can make a difference as well in the major`s decisions to consider a discovery. Chris understands just how important it is for the NI43-101 to come from a reputable firm. Chris was ahead of the game in this respect and requested a reputable firm to be used to ensure that the majors hold the write up in the highest regard. I’m not sure how he knew this but I like to think that a major who has expressed interest in TPW suggested it to him. The downside of going about it in this way is that requests from smaller companies such as Explor ‘may’ get moved to the bottom of the list and delays ‘may’ be more prevalent. He confirmed once again that he has not yet received any NI43-101 report.

3. 3D Model - I discussed with him page 21 and 31 of the 3D model whereby the high Fe-tholeitic volcanic rocks appear to be the most favourable host rocks (p.21) for gold. I pointed to the north limb shown on p.31 that shows a much larger concentration of such high Fe-tholeitic rock and asked if it was reasonable to speculate that there would be a lot more gold up in that area. He confirmed that the few drills holes from the North Limb mimicked the shallow findings of the South Limb and that he would love to be drilling the north limb too and will do so if necessary. He pointed out that both zones (South limb and North limb) of high Fe-tholeitic rock lie adjacent to faults (see blue diabase on page 31 of the 3D model) which are how the gold gets carried. The current market conditions however are keeping him focused on the shallow open pit potential of the South limb area for now.

I just know that the above paragraph / comment will provide plenty of fodder for the anti-Chester acquisition opinions so I provide some input on the Chester property as well later on in this commentary.

4. Kidd Creek – Believe it or not I did not discuss Kidd Creek too much with him. All I recall is that he confirmed that they are drilling it. He was of course very hopeful of hitting VMS. I recall from previous conversations that it was not at all feasible to bring up more than one drill rig to the area which needs thick ice in order to drill. Judging from the distance of the ice road I can see why that would be so. Take a look at the pictures and see the size of the yellow housing for the drill rig. That looks like one heavy piece of equipment. Also look at the heavy machines they use to DRAG the drills to the site. That cannot be an easy thing to do. Now multiply that effort three times in and three times out. I think one drill is all that we will ever see over the frozen bog and I have no problem with that. In fact, whether he hits VMS or not I see no reason to continue drilling there. If we hit the zinc then we have a great source of funds when someone offers to buy it. If we don’t, then I see no reason to go back to the frozen seasonal drilling. If there is zinc, Xtrada’s Kidd Creek mine is running out of ore and if they want to keep the mills open and retain their experienced staff then why would they not want to purchase Explor’s Kidd Creek property before someone else beats them to the punch. If we hit zinc in this program then all we have to do is wait for the offers to come in.

5. Investors – One Chinese delegation came with a shopping list of things they wanted to buy. But it is not just the Chinese looking to Explor. Investors from other countries are interested too. He could not discuss the details of these offers but the gist of the conversation was that if he takes too much money at these share prices he will dilute even more. Yes, he wants to continue drilling but I got the sense that he prefers to take it slow until the market or share price improves. An interesting tid-bit did come out of that conversation which I was always curious about. With all the drilling that has been done, Explor has enough credits to hold onto its mining rights for a very long time even if it does not drill. The bottom line here is that these exploration credits mean that Explor is not at risk of losing the properties for lack of exploration should they decide to put some of them on hold. I think that is a very important bit of information to consider.

6. Chester – Chris is aware over the controversy about buying the Chester property. He does defend his decision very well and I am going to help him defend that decision. As I stated in an earlier post, we are all waiting to see VMS at Kidd Creek. One poster is so convinced of the potential for VMS at Kidd Creek that he advocated that we send 3 drills to Kidd Creek to find that VMS. Conversely, another poster stated that for the price of one expensive car we have purchased a proven VMS and a proven zinc-copper property with the Chester acquisition. I tend to agree with that view. I would add that with a multi-million dollar ramp leading right into the zinc copper ore we got more than a bargain. Chris put it this way. We got a big zinc and copper poly-metallic deposit with a completed ramp “for the price of ‘ONE’ drill hole and 6.5 million shares” paid out over a number of years. He went on to say that he could have purchased it on his own but that this would not be fair to the shareholders of Explor. After all, he came across this deal while CEO of Explor and he feels that he has a fiduciary duty to his shareholders to share in such opportunities instead of simply taking advantage of them for his own personal gain.

He also pointed to page 12 in the Chester presentation that shows the resource model. And that was a perfect segue into my pitch to him as it was that very page that gave me an idea which I presented to him. I was pleased that he was totally open to the suggestion. In fact, I would think it is safe to say that he was pretty impressed with what I had shared with him. That said, I will not discuss any part of that suggestion with anyone because it could hurt the outcome. I can tell you this. It is an ‘out of the box’ idea and that the Chester property acquisition has made it much more feasible than it would be had I thought of it before. I actually had been thinking about it for some time but there were some missing pieces. Once Chester and one other event entered into the fray, the idea was now a real possibility.

So why am I telling you this? Well because I am a firm believer in Doug Casey`s theory `Crisis brings Opportunity`. Chris saw a property in Crisis and took the opportunity to buy it. I study many aspects of the market and I saw yet another Opportunity. I focused my energies into finding that Opportunity and shared it `just in case` the CEO of a company that I invested in would see it too. He did, and he will pursue it even though there are absolutely no guarantees of it ever coming to fruition. I think that is better approach than looking for only the negative in every aspect of this exploration venture. Mining is a risky business full of obstacles. If you focus only on the obstacles you will run into them. Its like driving a car. I you stare a the telephone pole you will drive right into it. That is why a good skier focuses on the finish line – not the obstacles along the way such as trees and bumps. In that light, so does a good CEO.

Going back to page 12 of the Chester presentation - If you look at the layout you can see why the yellow arrow points downward towards a potential feeder zone. After all, the feed could not be coming from the top now could it. If you look at P.14 you will see that there is plenty of property left to go looking for it as you mine the ore in front of it.

7. CORE SAMPLES – The core samples from Chester were simply outstanding. You could see the copper as if the sample was pure copper but the sample was actually 8% copper (I hope I have that % right as my notes are a bit unclear there). It was not smooth on the outside like most core samples you see. It was full of rather deep spaces and crevices like pock marks. It was gold-ish / green-ish in hue and looked like copper that boiled and cooled very quickly. Other lower grade samples clearly showed copper within some waste rock with a grey silvery color to it. Simply put, it was a very impressive display. The way that I see this acquisition is that, in his own way, Chris did what all the majors are all waiting to do. He pounced on what he saw to be a really good opportunity and took it before anyone else did – much like he did with TPW. Much like most majors waiting for a downturn in the market to make the acquisitions.