GENTLEMEN,

As you can see, I included the Hammar Investments portfolio to the right of the page.

Mr. SERIN has no doubt received GoldSpring's recent quarterly report. To save him the trouble of parsing through his pile of unopened mail, I have included it here. In it, he will find that this company will cease mining operations -- possibly until March 2008.

"Looks like dead money getting worse," writes one commentator on BullBoards, a Canadian Web site for penny-stock aficionados. Nobody should know this better than Mr. SERIN -- his purported investment of 1.3 million shares at $0.0034 per unit ($4420) in early April has now dwindled to $1430 with a $0.0011 share price. To use the parlance of Mr. SERIN, assuming he unloads this from his portfolio -- he didn't sell his shares -- he merely returned them, at Galina's insistence. (However, his return was subject to a 68% restocking fee.)

There is still another puzzling aspect of Mr. SERIN's stock purchase. We have seen in the past how he considers himself "health-conscious." He drinks wheatgrass juice, uses organic hair wax, and even abstains from microwaved food. Why then does he support a company that uses the environmentally detrimental practice of cyanide heap leaching? (You can read a more detailed report on the process, and factors involved in its cleanup, from the EPA here.)

GoldSpring "has the only fully permitted and operational cyanide heap leach facility and the accompanying permit in the Comstock Lode region," declares its 2003 annual report to the SEC. Certain proponents of penny stock view this as a good thing. However, there are organized efforts to ban this process in Montana, Colorado, and also internationally. Moreover, this does nothing to help the company's image -- according to that same annual report, GoldSpring was met with opposition while attempting to expand mining operations near Silver City, Nevada. Despite efforts to win public opinion with a barbecue, GoldSpring moaned that the residents of Silver City "[have] always been strongly anti-mining."

Great Basin Mine Watch, a Nevada-based conservation group, used the General Mining Act of 1874 to lay claim to a tract of land perilously close to an affluent suburb. The purpose of this was twofold: One, to show that the Mining Act was woefully outdated; and two, to protect that suburb from mining concerns. Imagine, if you will, the dangers that these Nevada homeowners face on two fronts: Not only do they have to deal with inflated home prices thanks to the predatory practices of Mr. SERIN, but they also have the threat of mining operations in their backyard -- also funded and backed by Mr. SERIN.

What? Did you think it would stop at the Muncy backyard?



I remain,

M. SINGH