DRUMMOND FINANCIAL CORPORATION





January  14,  2003


Dear  Shareholder  of  Drummond  Financial  Corporation:

Enclosed  are  documents relating to the offer by Drummond Financial Corporation
("Drummond")  to  purchase  all  of the issued and outstanding common stock, par
value  $0.01  (the  "Common  Shares")  of  Drummond,  not held by certain of the
officers,  directors and associates of Drummond, at a price of $1.25 in cash per
share  (the  "Offer").

The  Offer  is being made in accordance with the terms and conditions set out in
the court order approving the settlement of the action commenced in the Court of
Chancery  of  the  State of Delaware titled In Re Drummond Financial Corporation
Shareholder Litigation (Civil Action No. 17422-NC) (the "Action"), among Gibralt
Capital  Corporation  and  Drummond  and  certain of its officers, directors and
associates,  as  further  described  in  the  enclosed  documentation.

The  Offer  is open until 10:00 a.m. (Eastern Standard time) on Friday, February
14,  2003,  and  is  subject  to  certain  conditions  described in the enclosed
documentation.

The  accompanying  documents describe fully the terms, conditions and purpose of
the Offer and include detailed instructions for tendering your Common Shares.  I
urge  you  to  review the enclosed documents carefully, and to consult with your
investment dealer, broker, bank manager, lawyer or other professional advisor if
you  desire  advice  on  how  to  proceed.  Questions regarding the Offer may be
directed  to  CIBC  Mellon Trust Company at the address and telephone number set
out  in  the  accompanying  Letter  of  Transmittal.

Yours  truly,

/s/  Michael  J.  Smith

Michael  J.  Smith
President,  Chief  Executive  Officer,  Chief  Financial  Officer,
and  Secretary