Post-Summer Overview

September 5, 2014

Coming into the summer of 2014, we had a lot of work to accomplish. We have made great strides on a number of fronts, and are pleased with the progress we continue to make. Our main initiatives for this summer were to commission our mill, toward commencing the monetization of our stock piles of mineralized material; and secondly, to conduct a comprehensive crushing program that would enable us to establish a bankable reserve.

After the treacherous winter weather of 2013-2014, we began the late spring/early summer of 2014 with extensive retrofits, restorations, and improvements to our main building, and the housing of our milling facility. In the subsequent months, we worked to bring all of our milling equipment on-site, toward its commissioning and automation. During that time, we managed to procure several pieces of heavy machinery, including a bulldozer, and a wheel-loader; and we have a crusher set (jaw and roll crushers) on the property that is presently working on crushing material toward establishing our bankable reserve.

Once the milling equipment was properly situated in the main building, we got to work assembling and fastening the mill down to the bedrock, and began working on automation. This required a variety of different steps, nearly all of which are complete at present. Commissioning on the milling facility is well underway, with automation being near completion. All preliminary and initial commissioning trials have been completed. Further automation, fine tuning, and assembly of launders is in progress.

Approximately 10,000 tons of material have been crushed and sampled to date. We intend to post assay results as we receive them, to keep investors up-to-date on our current results and findings. Our goal for the current crushing program is to crush a total of approximately 20,000 tons, to be completed by September 30, 2014.

Golder Associates is responsible for overseeing all stages of the establishment of our bankable reserve, including the crushing, sampling, and assaying of our material. Once all of the present material has been crushed and sampled, Golder will review the assay results, and utilize them toward establishing the bankable reserve valuation.

We are all very excited for the coming weeks and months, and to receive the results of our crushing program. Likewise, we look forward to the continued refinement of our mill’s automation, and eagerly anticipate its inaugural run.

Thanks for checking in, and be sure to stay tuned for more updates. As always, check out our twitter page for the latest info.

Yours,

D.R.