Replies to post #2291 on Explor Resources Inc. (fka EXSFF)

[bywisdom]

Second part:

3. From Doug - what will be the total quantity of shares after this new PP and full issue of warranted shares, in other words, what the new fully diluted share count is expected to be? It depends on if the PP is filled or not. But currently there are 138 million shares and these PP (US and Canadian) could add 38 million shares. Warrants are put in a different category because they add funds to the company when they are exercised. But remember this is only if the PP is filled.

4. From Lukoste - I wonder what the Macquarie Group wants from EXS? Anyone know more of this company ? (this is in regard to a 1mil stock transfer from Union). Some companies want to buy large blocks of shares at one price and they surfaced so Union sold those shares to them. This is a common occurance in mining companies.

5. From TamTam - Or was the above a trade? Please explain, if possible. The above was a cross - when two companies work out a buy and sell agreement for a large block at market price.

6. From Tomberry - So, could Union be representing EXS on the sale of this new issue? No Union is not the selling agent for the new PP.

7. From Lukoste - Thanks Steven, here is the link
http://explorresources.com/_resources/news/nr_2011_08_30.pdf

someone care to explain the situation? (Of why there are two PPM's)? One for the US (which can't sell flow through and one for Canadians)

Peter adds - Maybe a new acquisition ???

8. From Saskwatch - could well be right that these financings were motivated by institutions who wanted their seat at the table in advance of initiating coverage and "sponsoring" the stock. In that hypothetical, the obvious downside is the dillution but the upside is that, having gotten their position, the "sponsoring" institutions will now support the stock via open market purchases. (Can you comment whether this is the case)? That is always the hope for financings from every company.

9. From Destinator - Could we sink a few holes along the other end of the porphyry and yet one more long the west end of one of the other two porphyry,... the thought being that finding gold there (even better, a glory hole) could result in greatly reduced financing costs and we already have enough holes for a 43-101. Years down the road there will still be holes adding to the 43-101, it is a long term process to define the amount of gold in a property. The current drilling plan is to drill 50 meters to either side and also below so that the resources in a 43-101 can be maximized. Later on (hopefully a jv company) drilling will occur every 25 meters to get the definition needs to make more ounces measured and indicated instead of inferred. All current drilling will add to the reserve numbers. Sinking a hole much further out won't add significant ounces to the program since only the ounces within a 25 meter distance can be measured - not everything in between. And currently we are drilling in a high grade zone. So, until we hit the edge of that we will continue where we are drilling for adding the most efficient ounces to the program.

Security also added to Destinator's thoughts - I agree it would not hurt to drill the tip of the porphyry as the other HMC Mines were situated on the tips of smaller porphyry than ours - maybe this is where gold is concentrated?? With financing in place is it possible to drill about four holes in each target area to get an idea of their potential? The model is very specific about where to drill for high grade and we will drill the areas that represent the best opportunity for hitting high grade.

[CDLGold]

bywisdom,
Thanks for asking Gary about the PP.Since the members of this board was worried about SP as a result of diluted shares,
this will make everyone more comfortable.Since drilling
slowed down recently,everyone could figure out that lack of funds
was the problem.On the EXS website,CD stated in a 4/12/11
article (on the left side of the top page) that they don't
have enough money to build a mine.Their goal is to draw
interest from a major and negotiate the best price for the
shareholders,since the majors have the money.Hopefully the JV
takes place before all those shares are warranted out.We have a
chance IMO.
CDLGold