1)

As at September 30, 2010, the Company had working capital of $12.5, including cash of $21.5. Management

the

foreseeable future, but will not be sufficient to repay the $100,000 Notes payable due on December 23, 2011.

2)

General and administrative expenses

General and administrative expenses increased by $1.4 million to $9.4 million (2009 - $8.0 million) for the nine

months ended September 30, 2010, and increased by $1.0 million to $2.8 million (2009 - $1.8 million) for the

three months ended September 30, 2010. The increase of $1.4 million for the nine month period ended

September 30, 2010 as compared to the nine month period ended September 30, 2009 was due to increases in

legal expenses of $0.9 million associated with pursuing the strategic partnership with CCRC of $0.9 million, an

increase in compensation of $0.3 million and non-cash stock based compensation of $0.4 million offset by a

reduction in audit expense of $0.2 million. The increase of $1.0 million for the three month period ended

September 30, 2010 as compared to the three month period ended September 30, 3009 was due to increases in

legal expenses for work related to the proposed strategic partnership with CCRC of $0.5 million, an increase in

compensation of $0.3 million and non-cash stock based compensation of $0.2 million.

3)

Subsequent to the sale of some mobile equipment in the second quarter of 2010, the Company has in storage

mining and milling equipment, purchased originally in 2004 and 2005 at a carrying value of approximately $40

million. This equipment which is stored outside of Venezuela is regularly inspected and maintained while in

storage. All of the equipment worldwide is insured under a marine insurance policy.

4)

A summary of common shares, common share options and common share purchase

2010, are tabled below:

Common Shares Issued 364,817,719

Common Share Options 19,182,668

Warrants 66,695,000

Fully Diluted Common Shares

450,695,387