Near Term Catalysts That Have the Potential to Move Our Stock Higher

1. A press release in the next 7 to 10 days that will delineate drilling results at Dublin Gulch. Approximately 20 holes have been drilled in the Potato Hills area. Positive results from these holes could eventually result in an increase our gold resources.

2. Receiving permits by the end of the third quarter to build the adit (underground tunnel) and the beginning preparatory steps in actually building the adit. According to John McConnell, we are on target for obtaining the permits on time. Why is this information important? Other than disappointing drilling results from Windy Point, we have had no drilling at the HelenZone in over two years – results back then were robust and they accounted for a major up move in our stock. The closer we get to actually completing the building of the adit, the closer we will be to starting an underground drilling program – this is the point where our company will begin to do bulk sampling which will provide our company with its FIRST source of cash flow from drilling activity – EVER – which, in turn, will reduce the need for future financing or stock holder dilution. It is also important, that as our company achieves these milestones, it will also enhance the probability that Newmont Mining will make a decision on its back-in-rights (see future notes from my interview with John McConnell for details on this subject) – the longer Newmont Mining takes in making a decision to exercise their back-in-rights, the more costly it will be for them to exercise those rights.

3. Resumption of drilling activities in Nevada at the end of the 3rd quarter at the Helen Zone or Mill Canyon (see notes on interview that discusses why the 2nd phase of drilling at the Helen Zone has been delayed until the end of the 3rd quarter, or until after we do some drilling at Mill Canyon) – that is, if we set Mill Canyon as a top priority – which will depend on further geological model analysis. One reason to drill MillCanyon’s before the HelenZone is because or its location – whose altitude, is much higher than the altitude at the HelenZone- thus snow and cold weather become a factor. In the case of the HelenZone, drilling can be done year around.

4. Additional drilling results from Dublin Gulch and the possible inclusion of wildcat drilling results. We will continue to do drilling through November. Total holes drilled to-date (including holes already drilled but assay reports not reported) is approximately 40 holes. Initially we projected 100 holes drilled by year-end; however, it will more than likely be in the neighborhood of 80 holes because we are no longer doing RC drilling – only core drilling which takes longer to complete.

5. Completion of Eagle property bankable feasibility study by year-end. This is a very important milestone – no doubt, the most important of the catalysts that I have discussed thus far. Gold prices are much higher than what they were when our company completed a pre-feasibility study for our Eagle property. The reserve estimates from that study were based on a $900 gold bullion price. At that time gold bullion was actually selling at $1200 per ounce. Now we are near $1600 per ounce, and it is likely that the new feasibility study analysis will based on a high assumed gold price – IMO, it will more than likely be based on a $1200 gold price. Therefore, based on only the price of gold, the feasibility study should show an increase of at least 30% in bankable reserves; however, additional drilling results will be included in the feasibility study, which in turn, may increase our company’s gold reserves. Our stock should be accorded a much higher market price once this report has been completed – and the reason is simply because the risk that our stock will never be an actual gold produces will have been reduced substantially. Right now our stock is priced well below its competitors based on our current reserve estimate – any increase in our reserves will make our stock even more undervalued.

6. Favorable trend in gold bullion prices and gold stocks which are significantly undervalued relative to the price of gold.