36 Page Report Summarizes Certain Information Gathered to Date on Silverado's Nolan Gold and Antimony Mine

Quatz-Carbonate pg 9

We are fortunate to be mining in an environment where the rock bears a high percentage of
quartz-carbonate. This rock naturally assists in neutralizing any acids which may occur from the
decay of sulfides present. The addition of the limestone will help maintain the neutral
environment and once a waste pit is fully utilized it will be covered with the prior removed and
stock piled natural flora which has proven in the past to create acceptably reclaimed areas.

As we enter the higher quartz-carbonate enriched rocks, gold grades are rising. The carbonates
precipitate gold from solution as can be seen by the wire gold growing from the white quartz-
carbonate shown in the right portion of the top picture on page 29, with stibnite encountered in
the same drill core of the A vein shown on the left side of the same picture.

Photo 2: 'A' Crosscut looking southwest. Note near horizontal phyllitic schist band in base and roof.

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Metallurgy pg 8

Test work yielded 85% antimony sulfide (stibnite) and 90% native gold recoveries using only
gravity and water. Rod mills will be used to minimize sliming of the stibnite; Holman-Wilfley
Tables will separate constituents; slime tables can separate stibnite slimes from coarse sand
product and Falcon Concentrators will create a high grade stibnite slime product. Gold bars will
be poured from the gold split off of the primary and secondary tables. The waste water appears
to be near neutral (background water tests were completed over a one year period and ranged
in Ph from 6.9 to 7.0 or neutral). A simple water neutralization plant will be used prior to the
three existing settling ponds. Water is lost to evaporation. Thus, high recoveries of clean
products may be realized without the use of hazardous chemicals while controlling Ph to a
desirable range with relative ease. The environment will be well protected.