Candidly, I'm as disappointed as everyone else, and I'm not going to make any excuses for the company management. I've talked with Karen Winkler twice today and have stressed that shareholders are fed up with the company's inability to deliver and meet their self-imposed expectations. I also have a call into Clevenger and will make that point equally clear to him.

Now, let's summarize the situation:

1. Gold Recovery-- One metalurgical issue was resolved when ECU had the copper interference with the oxide plant cyanide. However, for whatever reason, we are facing a similar problem again. Hopefully, the technical team can straighten this out as well.

2. Production Ramp Up-- It seems like we will lose a quarter (3 mos) in the attempted ramp up to 850 tpd. Whereas mgmt was hoping to supplement daily production with ore from other areas to complement the currently limited Santa Juana ore recovery , it has now been determined that the veins in those other areas are only 1/2 meter in width and therefore will not be sufficient to boost total production to 850 tpd until the San Mateo ramp is completed later this year which allows for greater ore from Santa Juana. Whereas we previously expected production to reach 850 tpd in Q3, it is now expected to be Q4 (or perhaps Q1 '14)

3. Labor-- During Q4, the company was short 80 workers and that number has now been reduced to 40. The company is also working with the labor unions and attempting to reduce the number of daily shifts from 3 to 2...providing greater efficiency.

4. Cash Flow Goal-- Management is striving to become cash flow positive as quickly as possible and the goal of reaching that objective in Q1 '13 is still targeted by mgmt.

5. Asset Sales-- Although there is no reflection of sales in this PR because it strictly dealt with production, I'm assuming there has been some success/progress in that area and if so, it will be reflected in the Financial Report.

As I learn more, I'll provide the info. Our patience continues to be required.

Silverbull50