On behalf of the entire management team of Global Minerals Ltd, I am pleased to provide shareholders with this update on the various projects that your company is advancing. The market conditions of the past 12 months have been very challenging for the mining sector, yet I am very excited with the progress that we have achieved, and the prospects for success in the months ahead.

The most significant event in the history of your company occurred with the acquisition of the Strieborna Mine in Slovakia that was announced just one year ago. The deal to acquire our 60-percent interest had been in negotiation for several years, and we were very pleased to conclude the transaction on favourable terms for the company. We elected to enter a joint venture partnership with the vendors of the mine such that both parties can prosper through the re-commencement of mining operations. Global Minerals contributes a strong operating team and the access to capital funding, while our partners are well-connected locally to assist with the many challenges that must be successfully met to gain regulatory approval for mining to begin. We are currently working on several fronts to proceed with that objective.

There are limitations on the information that we are able to provide until a full NI43-101 compliant resource estimate has been accepted by the Venture Exchange, so that is one of the main priorities at this time. Several historical resource estimates have been prepared for this mine in the past and we are confident that these numbers are accurate, so we have engaged AMC Consulting to confirm the data and submit an updated report that is acceptable to bring this into compliance. We anticipate this will be accomplished within a matter of weeks, and thereafter we will be able to disclose in greater detail the total resources that make this project attractive for advancing back into full production.

In addition, with the assistance of our joint venture partners and government officials at the Federal and Municipal level, we are working to secure permitting and environmental approvals necessary to resume operations. Our objective is to work very closely with the local stakeholders to ensure close cooperation at all stages of development. We are also looking forward to providing high-paying jobs to the local workforce that will have a positive impact on the entire economy of the region.

Studies are currently underway to determine the potential economics of the operation, and to determine the optimum mill and recovery plant that should be constructed, and to estimate the capital costs necessary to complete the development. Your company is also working to secure financial incentives that are available for local development and employment initiatives to help offset some of the funding requirements.

A Pre-Feasibility Study will help outline the total costs and allow a budget to be prepared, after which we will seek to raise the capital through debt and equity offerings to fund the development expenses.

Through the terms of the agreement, Global Minerals can earn an additional 10-percent of the project with the investment of an additional $2 million, a target we believe we will achieve in the work commitment as we advance development. There is also an option in place to allow your company to buy out the remaining interest in the project, but our intention at this time is to work with our partner and achieve successful mining operations.

The recent strength in worldwide silver and copper markets has validated the work to secure ownership in this project. We are very confident in the ability of this mine to grow to a significant producer of these metals and believe that it has the potential to generate strong growth for your company for many years.

Our operations continue to grow at the producing Front Range Project in Colorado. Mining activity continues at the Cash Mine and the company has achieved stable production rates of about 30 tonnes per day. The recovery efficiency at the mill has improved to more than 90% for the rich gold and silver ore that is processed. The company remains committed to hiring additional staff to increase the scale of operations, and plans are in place for additional infrastructure and underground development to open new zones of the deposits and connect with other mines that lie within the area controlled in this project.

The concentrates that are produced from our operations are shipped twice per month to a smelter in Mexico. We are realizing much needed revenues from this production, and as gold and silver prices have risen, our leverage to increasing the revenue stream will help to finance the ongoing development at the mines.

Our relationship with the local community remains extremely positive and we continue to work very hard to ensure that operations are conducted within the strict environmental guidelines we have committed to meet, and disruption with our neighbours is limited. This is important in consideration of the fact that Front Range is the only new mine that successfully achieved permitting in this district for many years, and we fully intend to work within a positive framework in order to maintain our strong reputation.

Exploration work at our Nevada properties has proven extremely challenging. A drilling program commenced at the Quarter Horse Project but it was determined that the expenses for the reverse-circulation drill rig were running above budget. We decided that opting for a diamond drilling program could produce better results at about the same cost structure, and therefore the RC program was suspended while we await access to a diamond drill rig. The advantage is that a preserved drill core as provided through diamond drilling will enable our geologists much greater interpretation of the geology of the project and this valuable information will be of assistance on subsequent drilling programs in the area.

We believe that the work that has been accomplished at each of our projects has built greater value for our shareholders and provided a stronger foundation upon which your company can grow in the future. A plan is in place to move forward regardless of the challenges of the overall market environment that lies ahead. Our strategy is to build this company in a way that is sustainable and work towards objectives that are achievable. We will also continue to consider other opportunities that are presented for additional upside potential in the future. We remain accountable to our shareholders to make the appropriate decisions, and to provide ongoing updates on all the progress that is achieved.

Sincerely,

George W. Heard
President, Director