~.~. PHYSICAL WORK SUBMISSION FOR ASSESSMENT CREDIT # 2.36730

Manual and mechanical overburden stripping

• see attached letter dated December 27/07

Physical work submitted for assessment work credit is supported by:

Report on good quality paper suitable for reproduction identifying the mining land on which the work was performed, its location and the means of access to it:

Attached maps show location of the mining claim and area where work was performed. (See Map 1 and Map 2) Access to the property is via Hwy 7 east from the junction of Hwys 7 and 37 to the Lower Flinton Road. The Lower Flinton Road is taken north from Hwy 7 to #54 Flinton Road. The property is accessed directly east of the Lower Flinton road.

Purpose for which the physical work was performed:

The work was performed to take small samples of soapstone from surface to test its suitability for dimension stone as carving stone and to see if larger sampling program was warranted. Samples were provided to local carvers for testing and to a stone processor for examination.

Key map showing the land worked in relation to identifiable topographic features and township boundaries or established survey lines, stations or markers:

See map attached.

Daily log describing in detail the nature and content of the work and the observations made during the performance of the work, the nature of rocks and mineralization exposed, as well as the type of equipment used, the dates and hours of use of the equipment, the dates and hours worked by the equipment operator and the hourly rates for equipment use and for the operator:

See letter attached dated December 27/07

Including all assays and analyses with their corresponding certificates:

See attached photo/articles of work done by local artist using stone from the site. Mechanical equipment was used to break and sample stone from small hill of soapstone on property. Samples were provided to local artists for test carving and to Owen Sound Ledgerock for examination.

P.Shier a local sculptor of international stature was provided samples for test carving. He successfully sculpted the stone which was displayed at an international art show in

Florence Italy in December 2007 and later at an art show in New York. Mr. Shier liked the stone and found it suitable for carving.

It has been decided to proceed with additional exploration/evaluation of the stone. Preliminary discussions have been held with C. Verschuren, MNR re pennitting under the Aggregate Resources Act. Application for a Bulk Sample Pennit has been discussed and submitted to Ramesh Mandai, MNDM Sudbury.

The person who prepared the report, her signature and the date of completion

of the report:", t ~ Ar./\ flO. ·/JA. ~ flrJ~ )0\;:2.008 ~~"{lt~ )

Maps, Figure and Plans attached:

A legible, uncoloured plan of the mining claim, drawn in ink on durable paper at a scale between 1: 1 00 and 1 :5,000 and suitable for photographic reproduction, showing Map 1. and 2 show:

o the location of trenches and stripped areas in relation to the land disposition boundaries,

o lakes, streams and other notable topographic features, and railways, roads, trails, power lines, pipelines and buildings,

o claim posts and boundary lines, township boundary lines, lot and concession lines, base lines, established survey lines, if any, and grid stations,

o the mining claim, leases, patent or parcel numbers of all mining land covered by the work,

o a graphic or bar scale and the north direction and indicating whether the bearing is astronomic or magnetic; and

Maps 3, 4 and Figure 1. show:

A detailed plan of each of the workings, drawn in ink on durable paper at a scale between 1: 1 0 and 1 :500 and suitable for photographic reproduction,

o showing the dimensions of the workings, trenches and stripping and clearly identifying areas previously worked, if applicable, and new surface stripping, bedrock trenching and known rock outcrops,

o showing the nature of the rocks and mineralization exposed during the perfonnance of the work,

o clearly identifying the location of each sample by number, letter or grid coordinate designation,

~(D7 Ladydiamond Mining and Exploration

Post Office Box 95 Tweed, Ontario, KOK 3Jn--R~E~C~E~I:-:V:-::E=-:D:::--I Phone 613-478-5378 fax 613-478-3393 ema.il

rockmanite@yahoo.ca DEC 28 20D7

GEOSCIENCE ASSESSMENl

Re: Assessment Report For Claim # SO 1077481, Lot 5 oeflet!~ft;;'lC;.;;;.E __ -

6 SIW Quarter- Elzevir Township, G=Plan 1261, Southern Ontario. By Diane Milligan Licence # 1003980, Client # 402982 John Despres Licence # 1001763, Client # 299691

To Whom It May Concern:

On April 27, 2006, Willwin Int. Inc. was contracted to remove samples of stone from this claim, by diamond blade and punjar and plugs and feathers, samples were used as specimens for potential markets. Willwin Int. Inc. charged $428.00 for labour and equipment. On December 21, 2007 again Willwin Int. Inc. was contracted to drill and split sevice stone ( Soapstone) with air rock drills and dartar rock splitters to loosen rock on this claim, a small area 2ft x 2ft x 6ft was drilled and split, small samples were removed from surface face of outcrop, most samples fractured, labour and equipment cost's were $535.00, rental of air compressor cost were $106.57, fuel cost were $83.74. On December 21,2007, K.E.Trudeau was contracted to start assessment work on this claim, removal of overburden, and surface stripping, cost for backhoe services and labour was $400.00. At this time more assessment work is in the process, awaiting bulk sampling approval. Any question's concerning this report please call, Diane Milligan.

ThankYou

91

ER3: Elzevir Township, concession VI, Lot 5

Concession VII, Lots 4 and 5

Rock Association: Ultramafic

Access:

Description:

This occurrence lies along the Flinton Road at

the "Hayloft" campground.

Wilson (1926) stated:

"The deposits in these lots ••• lie near one another, are similar in character and origin, and can therefore be described together. They consist chiefly of zones of talc-dolomite schist in altered basic lava flows."

Spence (1940) wrote:

"The workings ••• consist of seven small scattered .- pits opened variously in a rusty talc-dolomite

schist or a similar rock mixed wi th greenstone (serpentine) • The latter rock has been highly sheared and jointed, with the development along the cracks of a harsh-fibred, asbestos-like actinolite. The amount of such mineral is relatively subordinate, and the main mass of the rock consists of a heterogeneous mixture of dolomite, talc, serpentine and actinolite, with talcose greenstone the dominant material."

The deposits lie within an area of mafic to

ultramafic volcanic rock that is in contact with

granodiori te of the EI zevir bathol i th to the

north, east and southeast.

This area (Figure 28) is underlain by much talc-

actinolite-dolomite schist. outcrop is sparse, so

the extent of the talcose zones is difficult to

determine.

The talc-bearing rock is interlayered with grey to

black amphibolite (metabasalt) and with

serpentinized rock. The talcose and serpentinized

I ]

1 ]

]

]

]

]

]

1 1 1

History:

Reference Map:

References:

93

rocks represent the most altered portions of an

ultramafic volcanic rock unit. Rocks in this area

were mapped as ultramafic by Thompson (1972)

and by LeBaron (1987).

The talc-actinolite-dolomite schist exposed in

pits and outcrops may be classified as a

soapstone. This rock unit was visually estimated

to grade from five to 15 percent talc overall, but

a thin section made from a sample collected in pit

2 contains 40 percent talc.

Spence (1940) reported that:

"Several small quarry openings have been made at various times between 1883 and 1908 on these lots for the production of a class of mineral reported as " actinolite" • The depos its were first worked by J. James of the Village of Actinolite .• I who ground and shipped the output for roofing purposes. Later, in 1908, the properties were acquired by the Actinolite Mining Company of Bloomfield, New Jersey, who erected a grinding plant at Actinolite and continued to produce a small tonnage annually of ground roofing material until 1929, since then there has been no further work."

ontario Geological Survey Map 51d, Grimsthorpe-

Kennebec Area.

Hewitt (1972, p. 29,30)

LeBaron et al (1987)

Spence (1940, p. 74,75)

Thompson (1972)

Wilson (1926, p. 92-94)

Sketch ParlO

:J A- g 0 ~\o.J4..A. ::L ~ .2 b () 7 . B. Please complete sketch in Ink.

- Where applicable. the Hems indicated 'on the sample sketch on Part B must be shown.

- Group Sketch of claims listed on Part A. Sketch or plan of the mining claim{s) must show the comer posts, witness posts. and line posts. and the distances between the posts in metres.

- Include topographic features such as la~as, rivers, creeks, ponds, etc. and developments such as hydro lines, highways, railways. pipelines, buildings, etc. as shown on sketch in Part B.

- Refer to sample sketch on Part B.

l3~o

5 41-----~UJr..c~~~ --=~-Y'-:"----.;II

e

C. Magnetic Declination Used.

(For current data, ask at the Recorder's Office.)

D. Scale 1=8000 N

~Of8W -t £l-ZJ:;.'VI R rOWWSIl '/J

".

~----------------------------------------~~~~~~~7

a.-.. IInk.M .. "", .rMI I. ........ c-u__ ,..... IIII .. ~""",'" ... _,. ...... "'tP_.·_<-- 1111. ' ........... · ....... r~uru : • ...,... r ___ e_n,.-..,l __ r." , ~,.-... ,.,....,_a..'-L __ OoUo6t

--,..,-.:tu ,._ ....... '_.~ ............... II ___ c:a... _"'-___ ..... ..,.a--....;· ____ .. .-

,... ................... _ ..... ___ ............. --... __ tl_~ .. ~~...,"_ ... ......-11111 =::--=:==== ==-=-~ .. :!:::~.==-..:=.::-...,-=:' ... -'--~ . .....---. ............ ~---",. ...... -.-" .............. .,.--..... .... _-. ............... ___ ............... 11..-. ..................... -

::::.::=-~.~-.: .. -:.:-::::: 1 _ _ ...... -.,, __ "" .. ...-., .... _ _ .. __ eo..- __ 1000II __ ..... _

::::: ........... _-, ..... ..-.,-....,. ......

TOWMIHIP I ARIA aLZI!YIII

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• •

-

--=---

IMPORTIJ{f HOncu

-,-m _ .. -.-@ -_ ... m -_ .. l!l _ .. -0 -_ .. m --... ---o C!J ---. ... [£) -,...~

[If ...... ~

13 El .... c.... .. _ .......

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..... _ ...... ..,-.1.....-.._, ... , .. _ .... ___ ....-..-. .... .... --..-

rv\OfJ 3

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Ie

SVH 1983

FIGURE 28 I GEOL,.OGICAL MAP OF TALC OCCURRENCES, CON. VI, LOT 5 AND CON. VII, LOT 4,5, ELZEVIR TOWNSHIP (ER 3)

1+3+ ]

I 2

k·:-l~:'··.·l

lei

I Ib I I la 1 ----- x

GRANITE

GABBRO

LEGEND

SERPENTINE ROCK ( 500..fJ~~ TALC-ACTINOLITE - DOLOMITE SCHIST)

INTERLAYERED AMPHIBOLITE, TALC-DOLOMITE SCHIST

MASSIVE AMPHIBOLITE

OUTCROP 67~ ~ STRIKE AND DIP OF FOLIATION

_~>75 TREND, PLUNGE OF MINERAL LINEATION

---- ASSUMED GEOLOGICAL CONTACT .................. TRAIL

plO ~ PIT

SCALE 0 roo 200 300 400 SOOm I I I I I

(

All Area 2n x 2n x 6n was dIi"ed and spli~ sma" samples were recovered, the top service area, fractlued, more stripping of surface area needed to access the solid bulk samples for testing.

Lot 5 Con 6 Elzevir Township G· Plan 1261 southern Ontario. SO# 1077481

2nx2nx6n on surface of outcrop

f~ (II

depth 2n

r width

J.J.J.O~Q ~O:..----"""'-O_~ \ 6nlong

( Oi()qc/ (ell' ) (S () lSI 011

. ,'

G'E.Oi..-D6j ot= 50AP5\O~£ \?~~?e~\ J

C L.A.I fv... .±i. 10774-0 \ tot ~ c..c-.'\ b E-l-z.E-~\R T?_ LE..G E. f'\ () ---' ( . I

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12 13 14 20'

face. all weather ... .

lace. all ~.er ..... .

Routes:

paYee. toute saison

payee, toute saison

du.a.l highway ... . i cliiU ..... 5&)0,,,"

2 lanes

stabilized surface, all weather. gravier, agglomere; toute saison . 2...es

2 t.ane50f'mQre 2'40Ie$oup~

rface, dry weather ....... .. .... .. de gravier, temps sec .. .

::ed streets .. ...... .. .. . rues hors Cia sse ........... ..

.. .... ..... ...... . ...... . .. . .. .... . de terre .. ....... . ... . . .. , ..

MOfEl t ttan 2 ~nes

p'u~a. 2 'YOle5

tess " .... n 2 lant!. molOs de 2 VOles. ieulhan 2 _ 11\010$ de 2 VOtes

)( SClJN\f' k (~r trV\

t..lu..~~ elf , 101- r I c.~ b KALADAR

ONTARIO

Scale 1 :50,000 Echelle

23

:'1000 .(()()()Verg ...

Intormation concerning location and precise elevation of bench mark< can be obtained by writing to the Geodetic SUM. Survey< and Mapping Branch. Ottawa. '

CONVERSION SCALE FOR ELEVATIONS Metres 30 20 10 0 50

/\ '/11/'1,/11'11'1 ',' I "I \ ',' Feet 100 50 0 100 200

CONTOUR ItffiRVAl 50 r££T Elevat,ons ,n Feet above Mean Sea level

North Ame,ican Datum 1927 Transverse Mercator Projection

100

'I / " 300

'I !

400

o o

On peu repere leve, ,

ECHE 150

--cr-

Elzevir

~ ~ z -. ... ~ :.J -n ,!I

~ ~ -4

~ 'n "'" "'j

~ .. ,

~ionul 6ololJ'1

'< .l+re.o- ~ >0o..rs+lf"'r'oA ?V'o~~d-10+ .r I G..""YI '6 G:-( %.e.-'.I"' -r l' ~.

\ \

\

Chains 80 40 a ! F3 ,... !13 !11114

Map 2053

MADOG AREA ONTARIO

Scale 1:126,720 or 1 Inoh to 2 Miles 2 3 4 !I 6 8 9

Diane Milligan PO Box 75 Tweed, ON. KOK3JO

July 10, 2007

To Whom it Concerns,

Century .. SOAPSTONE

'. - ... ---, *8uilding ellS tdmer5 fdr Life"

Century Soapstone is a privately owned and operated Ontario company. We have been in business for 7 years providing unique soapstone sinks, countertops1 showers, tiles, vanities and other interior home decor products to a growing customer base.

Century SoapStone proudly provides both Canadian and Brazilian soapstone.

It is our experience that soapstone, particularly Canadian soapstone, is growing in popularity as news and reviews about the durability and beauty of soapstone are hitting the mainstream.

Based on samples we have seen and the variety of colours Mrs. Milligan has available, we would be interested in adding her stone to our current product line.

For further information please do not hesitate to contact me at www.centurysoaQst9n~orcenturysoapstone@sympatico.ca

Thank .. you and regards,

Diane Milligan Po Box 95 Tweed, ON. KOK3JO

October 14, 2007

Dear Diane,

Century SOAPSTONE

- .. ~--------Building Custpmt!!rs fpr Life'''

Please accept this letter as our confirmation of intent to order Canadian Soapstone via your quarry.

Century Soapstone currently orders an average of 5000 lbs per month to meet our sales demands. We currently purchase our stone for $35 per square foot, delivered.

Given the colour variety and quatity of the stone you supply, we look forward to ongoing business with you.

Thank .. you and regards, .---7

-/~1f-) ,,;./ v '._ .

Mark Hirsch Century Soapstone.

;: Reply f ~ Reply All I .: Forward f ,. Delete I

From:

Sent:

To:

Subject :

<MissIonGranite@aol.com>

January 3, 2007 3:47:06 PM

Rock.man4u@sympatico.ca

Estimation of Material for Purchase

To whom it may concern,

Junk 1 Put in Folder..,. I . Print VieW I ) Save Address

... 1 f ' . I .....J

I am excited to say that the samples that were sent to Mi$ion Granite & Marble LlC were well received by soapstone vendors. I antldpate With this response that once production of the soapstone material is complete they would be purchasing a minimum of 2 blocks to 5 blocks per month for the fiscal year of 2007. Once advertising, storing, cutting, transportation and other unforeseen Issues are streamlined the amount of blocks that will be needed for 2008 will be between 15 to 25 per month. This is a minimum estimate based upon the amount of materials that these vendors sell, how many colors that are available, the quality of the material, the availability of the material, different finishes for the material, and the overall price. This is a minimum estimate based on the current market evaluation. There is a potential for the first year 2007 to exceed 10 blocks for extraction per month and in 2008 up to 50 per month. This will depend on the capabilities of the quarry and tlmeframe of extraction minus any unforeseen complications ex; weather.

I look forward in promoting this new and exciting soapstone and antidpate that we can get some test blocks out by February 2007.

Thank you,

William Powell Vice President Business Development and Sales Mission Granite &. Marble (805) 4So-Sn7

Kramp congratulates sculptor The text of MP Daryl Kramp's statement delivered in the house on February 4,2005. "Mr. Speaker, I rise today to acknowledge the efforts of Mr. Paul Shier, a constituent of mine from the village of Tweed. Like so many people around the world, Paul was deeply disturbed over the events of 9/11. While many expressed shock, anger, regret and sympathy, Paul was moved to create a lasting Canadian memorial. With over 1 ,000 man-hours of labour and talent, Paul created a massive 200 lb. soapstone carving that truly captures the heroic efforts of the emergency personnel and the suffering of so many. On March 6 and March 7 of this year, Mr. Shier will travel to New York City to donate his tribute to the victims of 9/11. The statue will be displayed in the atrium of Bellevue Hospital, a few blocks away from ground zero. Please join me in congratulating the efforts and the commitment of Mr. Shier, and the thousands of other Canadians who have clearly demonstrated our solidarity with our American neighbours by standing with them in memory of that fateful day."

By LACY MEEKS The Tweed News

A Canadian's Vision

To describe A Canadian's Vision as being astonishing would still not do justice to this fascinating sculpture. It's amazing that local artist Paul Shier was able to take one piece of rockmanite and create a masterpiece like this one. This was not a piece that could somehow evolve in the sculpting process, this is a piece that had to come from a well thought out concept. Paul should be very proud of himself for his grand accomplishment. Tweed was greatly privileged to have the opportunity of housing this piece of art at The Tweed Heritage Centre before it was shipped off to The Biennale Internazionale Dell" Arte Contemporanea in Florence, Italy. It is amazing to think that Tweed residents were the last people to see the sculpture before it made its grand trip across the ocean to be on display at one of the most prestigious art shows in the world. A Canadian's Vision along with two of Paul's other sculptures were picked up in Tweed on Friday, October 26, by a Montreal based shipping company that specializes in shipping art pieces. The sculptures were sent to Florence, Italy in preparation for the show. Paul will shortly be joining his artwork at the Fortezza da Basso which is where The Biennale Internazionale Dell" Arte Contemporanea will be taking place this year, from December 1st to the 9th. With over 800 artists from 74 countries around the word it's an amazing honour to be invited to this art show, which is the largest exhibition of contemporary art in the world. less than 30 Canadian artists will be in attendance at the exhibition, which makes Paul's presence important not only for Tweed but for all of Canada. Tweed should be more than a little bit proud that one of our own has accomplished such a feat. As Paul continues to further his career, we will be able to continue boasting that he is from Tweed! like many of Paul's sculptures this carving has a deep meaning, designed to make you think. The sculpture represents the dream of world peace, it'S dedicated to the memory of Paul's mother Marge Shier. An information pamphlet was with the sculpture at The Tweed Heritage Centre, explaining that A Canadian's Vision is Paul's contribution towards world peace. Paul wrote that "the only way there can be world peace is through the people, hope lies in our future generations." Best of luck to Paul during The Biennale Internazionale Dell" Arte Contemporanea.

18S5 Btu:: Hero)..., Drive Units 1 &: 2 :..ondol!, 01\' N6H 5L~

Phone: (519) 657·l1lJ Fu; (51 9) 657-~'H Email;l.nao::k@:ll.tl:d;.com Websi:e: http://\\I'.\~.v,m::u:cl;,ccrr:

MAceK Incustria' Hyg;ene Inc.

Febrnary 21, 2005

0405197

SOS Canada be. Mhera: Serv:ces 1885 Leslie Stree: femmo. ON tv;3B 2M3

B \Vhlte

Vale Received:

Anl:ll~'sis Requested: Bu/, Asbes.os Anlllytica! Tecbmque(s): Polarize:l L:gr.t Micro:;co~~··

i D:~p~rsion Staining

Analyst:

RE: Your work order 082114

S:tmpl!': Desc riptiol1

001; rockmar.ite

James MacKenzie. M.Sc .• C.Chem, em Cer:if::;d Indusrrial Hygienist

Asbestos Content

asbestos no! derecred

Parri:::l8. Car;:>n, B .Sc. Labo:-atory Services

. Work O.'dc .. : 080776 Datl': 20/11/04 FINAL P:lgc I of 2 l

1~lellll'lIl. Sl02 "I!OJ CaO I\I~O N:IZO . KlO !'c20J MilO TIOl 1'20~ C"2m WI Sum Itll S.· Y Mellllld. "fU';7 XltII77 XIUi7 XltF17 XltF77 XRI,? XRI<i7 XIW77 Xltfl'77 XRI1'77 I "RF71 Xltfl'77 XRI177 XIt ... 71 XRf77 ~a(\l77

Ilet.l.IIIl. 0.01 (Ult O.ot un 0.01 (I.ot lUll O.Ot U.ot 0.01 \ o.ot 0.01 G.Ol 2 :1 2 Ulllt~. % % .. % % % '*' % " % % % % IJpm 1111111 1'11111

.Sld XRALlI4 . <lll.60 14.85 1n.91 11.70 1.33 0.43 9.2·\ IU6 0.38 f),03 0.06 2.35 10n.1 H 107 I) \

ROCK/vfiWITlL .... - .. 4'.86 !.IR 9.63 24.41 0.03 (l.OCi '1.18 0.08 0.13 <fl.O I 0,32 14.35 100.) 5 109 :<2 - .. fjiili·i~oCKMlwITn \ 45.94 1.1 II '1.63 24.43 {Ull ILI)(\ 4,11 n.os 0.13 <O,1lI 0.32 14.35 IOn.) " 1119 <2

.. ~....:.-~~:,;".:..-:. . ..-- r J

• , ..... ~,q ""'

MSN Ho1mail - Message

, ~ Reply I .¢ Reply All I ;;> Forward I

From:

Sent :

To:

Subject :

Will Creighton <WiII@creightOnrock.com>

March 19, 2007 10:16:50 AM

John Despres <rockrnan4tJ@sympatlco.ca>

081506

Sample Ident SI02 AI203 CaD Scheme Code XRF77Z XRF77Z XRF77Z Analysis Unit % % % Detection Umlt 0.01 0.01 0.01 1 34.93 0.69 13.11 2 35.1 4.91 9.43 3 45.62 12.85 10.14 4 38.34 0.72 11.09

51 39.42 1.58 14.66 DUN 34.96 0.69 13.11

Go

r---I

-1 Junk Mail Junk I "<.: Put In Folder ~ I -d:, Print View I L.J~~ontact i Save Address

MgO Na20 K20 Fe203 MnO TI02 P205 Cr203 LOI Sum Rb XRF77Z XRF77Z XRF77Z XRF77Z XRF77Z XRF77Z XRF77Z XRF77Z XRF77Z XRF77Z XRF77Z % % % % % % % % % % ppm

0.01 0,01 0.01 0.01 0.01 0.01 om 0.01 0.01 om 24.61 <0.01 0.04 7.22 0.22 0.1 <0.01 0.38 18.85 100.1 27.13 <0.01 0.06 6.81 0.12 0.17 <0.01 0.24 16.45 100.4 16.25 1.46 0.33 8.07 0.14 0.23 0,01 0.14 3.1 98.36 26.32 <0.01 0.02 5.83 0.12 0.05 <0.01 0.31 17.9 100.7 20.84 <0.01 0.02 6.07 0.12 0.06 <0.01 0.42 17.2 100.4 24.61 <0.01 0.04 7.22 0.22 0.1 <0.01 0.38 18.9 100.2

flle:IIC:\Documents%20and%20Settings\DIANE\My%20Documents\My%20Pictures\Rockmanite%20Soapstone\MSN%20Hotmail%20-%20Message.htm

Page 1 of 1

Sr Y Zr XRF77Z XRF77Z XRF77: ppm ppm ppm

2 2 2 6 46 <2 5 65 <2 6 43 <2 4 62 <2 5 137 <2 <2 5 45 <2

14/03/2008

To: Subject :

i Hotmail'''

<;l\I!issaonGranlte@aol.com>

January 17, 2007 8:57:09 PM

Rockman4u@Syrnpatk:o.ca

Cost n Profits

I wanted to give you a breate down of the pricing and you profit potential. This should help Wltb you and your partners get a better understanding of the volume and net profit per month per material. I also Ilsred what I expect from the shipments so you could also see were the total costs come from.

1 full truck load .' '.... ":, ...-.- ~

2160 SCi It finIShed product =< (three blocks 9'x5'x29")

Axed Costs (best estimation)

Shipping from quarry to Cutters and final destination average $2 SCi tt Total = $4320

Cutting Blocks Into 3cm slabs $6.50 sq It Total = $14040

Tasln Stone $2 SCi It Total:: $4320 Red and Red/Green per truck load Tasln Stone $1 sq It Total:: $2160 Dark Green per truck load

'This comes to $10.50 sq ft material costs Red and Red/Green and $9.50 SQ ft for DaTk. Green.

. !

I want to try to deliver the material between $15 -$17 for the Red and Red/Green and $13 - $14 ,.Jltlellllrk Green (remember there is a BRlZltian Soapstone that looks very dose to this one for $6 - $7 F,O.B)

I then would be able to purd'lase the stone (full truck load) from you between $4.50 SQ It • $6.50 sq ft Red and Red/Green and $3.50 sq It - $4.50 sq ft (based on finished product). Total for you $9720 • $14040 for the Red and Red/Green and $7. -$9720 per truck load.

To figure out your net proffts you would need to calculate how much It takes to extract a bIodc. For instance If It costs $150 per block (750 x 3 = $2250 full truck) to extract and load for shipment then you net profit per truck load would be $7410 .' $11790 Red and Red/Green and $5310 - $7470 for Dark Green.

If we are seUlng a mlntmum of 5 truddoads per month then the net profit goes to $37,350 • $58,950 Red and Red/Green and $26,550 - $37,350 per month.

Next year 15 truckloads per month goes to $112,050 - $176,850 for Red and Red/Green and $79,650· $112,050 for Dark Green per month.

I believe thIS Is a pretty good estimate the only unkOWn Is the cost of extraction. I know the initial costs will be high but when everything Is in place is should come down considerably. Most of the risks I see for you are the purchasing of the equipment, leases, and the possIbitlly of thE! drying up of the quarries. The risks I entail will be the fronting of the money to the cutters and truckers, non payment from the buyers, end the relocation costs from buyers who refuse the product for whatever reason. We both assume risks and rewards.

1 talked with Teresa abOUt making one company but was reminded of my current company Mission Granite &. Marble which has four owners and the decisfon making Is a tedious process. I will also be expanding Tastn Stone by Importing some new high end specialty stone paver and veneer products being produced In Ind../a and Onyx from Pakistan. So the mixing of the two companies or forming of one company would probably be quite complicated. SO for the best interest we should remain seperate ent1ties.

Please let me know approximately when the first blockS will be extracted so I can let my buyer know and arrange transportation from your place to the cutters.

Also please give me any Input you might have.

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