To all HIMR shareholders and interested investo

To all HIMR shareholders and interested investors, let's look at what we have and where HIMR may be going.

Concession: We now have the first one, so this is no longer just a concept. What we do not know is what Hollund's exact percentage is or how quickly revenue will pour in. That said, we have been told revenue will be reported in January, and that is just 48 hours away.

TigerLynk: This is still a concept. However, the first TigerLynk build is scheduled for early next year, and we are told it will be working on this first concession in the first half of 2014. Privately, I have been told critical components are already on order and have been for some time.

Class C shares: From the way Peter Meier worded his letter to shareholders, I have the distinct impression this is a done deal. So right after the new year (perhaps sooner), we should get an update on where we stand with this issue. Peter made it clear this issue is resolved, and investors no longer need worry about dilution from these conversions.

Increasing HIMR’s equity position within Bayano Lake Wood Products Corporation: Hollund has an opportunity to buy a larger percentage of Bayano Lake Wood Products if they can raise the money required to do so by the end of December (that is tomorrow). I believe Hollund has already raised the money needed and I expect a press release on this accomplishment perhaps the first week of January.

Increasing shareholder upside potential: All the above will increase shareholder upside potential, but I suspect even more will follow.

Securing additional concessions: This is an interesting topic, and it has only really been hinted at. Peter Meier stated in his letter to shareholders "In 2014, with proper funding, HIMR has the opportunity to develop additional projects and purchase orders exceeding $50 million." This statement suggests a very rapid development plan is in place and ready to go. Remember, this first concession can be used as collateral for gaining additional funding and concessions.

In addition, Peter stated: We will not expand in detail at this time, but we do want you (the shareholders) to be mindful that we have long said that we will not initiate an unwarranted reverse. Even when faced with having to either reverse or increase the authorized, we went with the lesser of the two evils, because of the commitment we made to our shareholders, and, because we knew we would ultimately be successful.

Finally, Peter Meier stated: We have created a strategy that we strongly believe has every opportunity to work in favor of the shareholders and is a win/win for HIMR’s management and its investors – long term. This strategy will not only aggressively restructure the Company without a reverse, but, will increase the upside potential to shareholders three fold; transferring control over future dilution and funding to HIMR shareholders.

How will shareholders be able to take control over future dilution and funding? I suggest this statement could mean that shareholders will be offered a way to convert current share holdings and any future share purchases to an ownership position in the company (the exact nature of this arrangement has yet to be discussed). In effect, shareholders may be offered the opportunity to surrender and retire their shares in exchange for an ownership position. If correct, this could be a very exciting arrangement for investors willing and able to participate.

Have I mentioned pictures? I see no reason why pictures cannot be released immediately. However, Hollund may wait until after the holidays for maximum market effect. So hold onto your shares people, this is likely to become interesting. And, need I say lucrative? If price generally follows volume, then we had the volume today. That means share price increases in the days ahead. Good luck to everyone, and for those who do not have shares, it may be time to climb aboard.

Kgem