Korelin Economics Report

Response from Rugby management.

Regarding comments regarding Rugby Mining, I contacted Yale Simpson and received the following response late Wednesday evening. I appreciated this response.


Here it is:


Yale

My comments in red.

Cheers


looked at rugby website. Wow the projects were great as far as drill results. However the part of Colombia is very close to areas of FARC rebel kidnapers . The area was once a very challenging area to explore, however the government’s recent campaign against drugs and the FARC has had a very positive impact on security in remote areas. Security is definitely improving in Colombia which is recently demonstrated by the FARC announcing in February 2012, its end to kidnap for ransom and its willingness to negotiate a peaceful settlement with the government. Rugby coordinates its current and future exploration programs with the government security force to manage potential security issues near the project area. Rugby recently completed a low level geophysical survey over the entire project area and is currently undertaking a socialisation program with local communities in preparation for the upcoming drilling program.

The Philipines project is in a horrible Island called Mindinao . 2nd largest Island of Philipines, Unfortuatley its 98% fanatic muslim area (The Mabuhay Project is situated 12km south of Suriago City in the extreme NE tip of Mindanao.  The dominant religion is Roman Catholic and other religions include Aglipayan and Protestant The majority of people are able to speak English. (source Wikipedia).

very anti western. women and outsiders are treated like dirt there.  (Surigao is a safe and peaceful tourist destination for foreigner visitors. Being the surfing capital of the Philippines numerous foreign tourists are attracted to the area. Sol Matugas is Surigao’s lady Governor )

No matter how rich the gold vien, there are many other areas of PI that are much safer and largely Christian (Surigao is one of the safest areas in The Philippines and is predominantly Christian). Lots of gold mines and possible gold mines in other islands of PI. Mabuhay is situated within one of the most prospective areas in the Philippines. Within a 15 km radius of Mabuhay are numerous multi-million ounce gold and gold/copper porphyry deposits and mines, which include Philex Gold Inc.’s Boyongan and Bayugo gold/copper porphyry deposits, Manila Mining Corporation’s and Red5 Limited’s recently commissioned Siana gold mine. The areas also hosts numerous operating nickel mines and Mindoro Resources (TSX.V:MIO) is advancing towards the development of the Agata nickel project. Further to the south is Medusa Mining’s Co-O gold mine which is currently ramping up to 200,000oz pa production.



From: Yale Simpson
Sent: Thursday, 5 April 2012 10:08 AM
To: Paul Joyce
Cc: Rob Grey
Subject: FW: comments


Hi Paul. Can you pen me a response to the email below. Thanks

Yale


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