Please note I have put ????? where the company name would be. Also I removed a bit to protect and respect the person's name who sent me this.

The new mining law could be made public any day soon as the Minister of Mines and Petroleum has apparently presented the draft legislation to the President for review. Experience tells me that “any day soon” could mean anytime between now and the end of September.

It is possible that the mining moratorium could be lifted on or about the same time, thus enabling exploration work to continue. However, we do not yet know if each company will be restricted to a three-concession 15,000 hectare limit as suggested in the Mining Mandate. Also, there are rumours that the annual property maintenance patents will be significantly increased. If so, many companies could have to reassess their property portfolio’s to cost effectively comply and undoubtedly reset exploration priorities accordingly. Unfortunately such speculation will only be actually known in fact when the new mining law is made public.

Where companies like Corriente and Aurelian have significant deposits that are approaching production stage, the government appears to want to see those projects move forward so that royalty revenues can flow to the government as soon as practically possible. Unfortunately, the junior exploration companies, like ?????, do not appear to be on the government’s radar screen at this time despite our past lobbying efforts. At this point it is a matter of waiting to see what the new mining law actually looks like to see how viable our Company’s operations will be in Ecuador in future.

However, it is fair to say that essentially ?????? management is not particularly optimistic about the short-term future of the Company in Ecuador at this time, though we are hopeful the new mining law will be more encouraging and less restrictive than the April 18th mining mandate. Consequently, we believe the real future of the Company now lies outside Ecuador with a renewed long-term stable foundation to be developed from the ground up within North America. Management is evaluating various opportunities on a weekly basis with a view to acquiring further properties of merit as soon as practically possible. Thus the basic purpose of the share consolidation plan is to put the Company in a more favourable refinancing position when required to advance a major project. When financing, the consolidation is expected to enable a more reasonable share price agreement without diluting the stock to the extent that likely would have been required prior to such a consolidation.

I trust the above answers your enquiry at this time. Please do not hesitate to call or write again should you have further questions.

Best wishes,