Sarissa Resources Inc (SRSR)

[Tom Orrow]

If the expenses were initially characterized as flow through expenses then the company thought they were grass roots expenditures. At least, we can assume that they tried to characterize them as grass roots. A more appropriate question to ask Scott might be why the expenses had to be recharacterized. Was it the company that recharacterized the expenses as I suggested in my previous post or did the CRA audit the expenses and determine that they were not grass roots expenditures. This is a definite possibility because it isn’t clear if metallurgical testing (of the recent check samples) or expenses incurred in respect of a feasibility study are valid grass roots expenditures. If the expenses were the result of an audit of expenditures previously passed through then the answer to your question would be, “taxes", and the expenses could be from prior years.