Letter from the CEO: Gold is moving up!

Dear shareholders,

It is with great pleasure that we present the first of many newsletters from Iceland Resources ehf. The newsletter is aimed at the shareholders, staff and other stakeholders.

The New Year has gone exceptionally well of in regards of Gold with the 60 days gold price low $1050.80oz to $1247.90oz at closing as of 22nd February.

There are various reasons that analysts speculate what is the reason for the increase all from interest rates in the US to demand from India and China. However it is a fact that once the dark skies starts to hover over the financial markets it has a positive effect on gold as investors look at gold as more solid and long term value.

This has then transposed itself into the market and many gold producing companies are soaring and gold exploration companies are starting to get funding. This takes us to the market at the right time hopefully at the end of the bear cycle.

The team at Iceland Resources have noticed this shift and we are currently evaluating amongst other an offer that we have received to fund the first phase of drilling the Thormodsdalur gold deposit. The company would be considered as a strategic partner rather than one off investor.

So it is very exciting with the new geological and management team at Iceland Resources ehf, the operational and drilling team at NAMA Ltd to take on the drilling and mapping program planned over the next year.