The Company recognized revenue during the quarter ended June 30th, 2008 of $2,529,511 on sales of 2,778 ounces of gold. This compares to revenue of $1,378,384 on sales of 1,858 ounces in the same quarter last year. The Company reported a net loss of $12,751,859 ($0.06 per share) for the three months ended June 30th, 2008 compared to a loss of $9,436,968 ($0.06 per share) for the comparable period in the prior year.

During the quarter mine production came from the SG1 mine and the Rice Lake Mine. The mine is using longhole, shrinkage and mechanized cut and fill methods. The shrinkage mining method requires ore to be held in the stope until the rock breaking process is completed thereby resulting in some buildup of broken inventory in the stopes. Several mining stopes have not progressed to the drawn down stage of mining. Currently the operation is dependent on a higher percentage of development ore then is planned once the operation reaches steady state. Typically development ore from the Rice Lake Mine and production ore from the SG1 mine is lower grade than what was historically mined from the Rice Lake Mine. Correspondingly metallurgical recoveries have been lower than historically achieved at the operation due to lower grade ore and the mill is not being fully utilized at the present time.