Our delivery has stretched out further than we like.

What happened?What happened?What are we doing to correct What are we doing to correct

the situation?the situation?

A lady opened her refrigerator and saw a rabbit sitting on one of the shelves. “What are you dong in there?” she asked.The rabbit replied: “This is a Westinghouse, isn’t it?”“Yes,” she said.“Well,” the rabbit said, “I’m westing.”

An elderly woman returned from church and caught an intruder in the act of burglarizing her home. “Stop! Acts 2:38! Repent and be baptized, every one of you in the name of Jesus Christ for the remission of your sins, and ye shall receive the gift of the Holy Ghost,” she recited.The burglar stopped in his tracks and the woman called the police.The offi cer asked the man, “Why did you just stand there when the old lady yelled out a scripture at you?”“Scripture?” replied the burglar, “She said she had an axe and two 38s!”

Q: Why did the turtle cross the road?A: To get to the Shell station.

Old folks are worth a fortune in silver in their hair, gold in their teeth, stones in their kidneys, lead in their feet and gas in their stomachs.

An elderly man limped into a gym as two basketball teams warmed up. He paused in front of the stands, winked at a coach and said,“Would you believe that I can dunk?”“The coach laughed and said, “No way!”The old man countered, “I’ll bet you $5 that I can dunk.”The coach said, “You’re on.”As the old man started walking away, the coach said,“Where are you going?” The old man smiled and replied,“I’m going to the concession stand to get myself a doughnut and a cup of coffee.” A young woman told her husband, “I just dreamed that you gave me a beautiful necklace for Valentine’s Day. What do you think it means?” “You’ll know tonight,” he said.That evening the man came home with a small package and gave it to his wife. Delighted she opened it - only to fi nd a book titled, The Meaning of Dreams.

April 2006

C E R T I F I E DISO

What happened to make the delivery of MESABI® products longer than we would like? All we have to do is look at our delivered sales over the last four fi scal years (ours ends March 31).

During this time frame, our backlog (orders not yet shipped) increased to $25 million.

One more important fi gure – we are projecting delivered sales of $67 million for fi scal year ending March 31, 2007.

All of the above is a huge increase in sales for a manufacturing company in a fairly short period of time. To meet the increase, we have had to acquire space, machinery (which also has a long delivery) and, most important – plus hardest to come by – people.

In fi scal year ending March 31, 2006, we have added (for a net gain) the following people at our manufacturing plants: New People

Hibbing, Minnesota 16El Paso, Texas 3Australia 44Independence, Iowa 11

Total: 74

FISCAL YEAR ENDING MARCH 31 SALES

2003 ...........................................................$ 20,000,0002004 ...........................................................$ 26,000,0002005 ...........................................................$ 39,000,0002006 ...........................................................$ 54,000,000

A lot of people to hire and train. Independence, Iowa, is our brand new, soon to be 25,000 square foot factory. It started producing in October 2005, and we are looking for production of around $10 million in delivered products in fi scal year ending March 31, 2007. We also expect production from that plant to continue to grow beyond $10 million per year.

We should also note that our projected sales fi gure of $67 million for fi scal year ending March 31, 2007, includes our backlog fi gure of $25 million. We expect (hope) that we will reduce the backlog fi gure signifi cantly, which means “our longer than we like delivery,” will become shorter.

We have used more fi gures than we like (that phrase again), but best way to tell our story.

On to the jokes!

Visit us at the OTC in Houston, TX, May 1-4

Visit us at the Elko Mining Expo in Elko, NV, June 8-9