In an attempt to provide some information to bo

In an attempt to provide some information to board members, we contacted an individual who is close to HIMR, and who seems to be knowledgeable about what is going on there, but he is not part of HIMR management.

The conversation was not well structured, and turned out to be rather rambling, in my opinion, with no clear direction. I let the individual know in advance we would be calling and when, and clearly indicated we were interested in what was going on with Hollund during this quiet period. For this reason, I expected an organized explanation of current developments. So in an attempt to try to make the conversation understandable, I will merely list bullet points.

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1. I asked that Hollund show pictures of the site where they intend to recover timber from Lake Bayano on HIMR's Facebook page. He said he will try to make this happen. However, he explained that he does not work for HIMR, and does not have direct control.

2. What Hollund has been doing for the last few weeks, and what they will continue to do for the next two weeks (at least) is all financial. The amount of money needed is considerable. The amount of money needed was not clearly defined, but at one point he mentioned up to fifteen million dollars. The money would be used for concessions, infrastructure development and construction, and a TigerLynk build. This part of the conversation was very hopeful, but the remainder was not so great.

While Hollund is finding finance available, most sources are not willing to lend money on agreeable terms, and individually are not capable of raising the amount of capital required. Specifically, financers are asking for a large percentage of the timber recovered as well as the revenue in exchange for any money provided, and this would mean Hollund would give up control and profitability for the funds.

3. Hollund has been and continues to pursue a larger concession, but this larger concession is controlled by a different group (tribe) and is more complicated. However, the value of this concession is well worth it. This individual mentioned that the concession and value is in the range of ten times the size of the original concession. One reason no news has been released is because so much is still up in the air regarding financial negotiations and concession talks.

4. The reason Jason Novack has not answered phone calls is because he is being used by Hollund extensively.  Jason is HIMR's "can do" man and their primary runner.  We were told Jason is traveling all over in an effort to help them. We were also told Jason is hard working, dedicated and extremely helpful.

5. Share restructuring may not happen until Hollund is ready to up-list. This individual feels up-listing to a higher exchange is the only way Hollund can raise the amount of money needed.

This individual is talking about a major exchange here folks, and not just a tier change on the bulletin board. In the meantime, the A/S may have to be increased as a means of attracting investment (He made it clear this was just his opinion). If this approach is taken, it will be a means to an end, and will be accompanied with much more information (no decision made at this time).

Another approach being considered is an "offer" to the public. Specifically, Hollund may offer debt to investors (people like you and I) in exchange for cash for company development. This would provide interested investors a "seat at the table." There would be risk involved with this type of investment, but the rewards would be greater (no decision made at this time).

6. A major player with deep pockets is interested in joining Hollund as a partner, and could provide all the capital required. This individual has his own mill and has contacts all over the world. However, this individual is described as somewhat eccentric, and difficult to work with. Apparently, this individual will make some type of decision one way or another before the end of this year.

7. Our contact did not know when news would be released, but said two weeks is likely because he felt the financial discussions would take at least this long. However, he has no idea what HIMR management has planned.

8. I asked if a Shareholders Conference Call is planned, and was told he could not answer that question.

9. HIMR is still in constant touch with North Cal, and North Cal is still very much aligned with HIMR. In fact, Michael Lacy V.P. Marketing at North Cal is talking with HIMR management nearly every day.