Dear Shareholders,

The following reply came from UC Resources:

The mill at La Yesca is capable of 200tpd, and feed has been processed at those rates. To date we have not produced any Dore bars for sale because we are working on purification and higher recovery rates, and adjusting process. We are presently running side by side tests at a University in Mexico to examine the best formula of re-agent and process to maximize the economics of the project.

Once this is completed, and batch tested we will begin commercial production, and day by day we get closer....this deposit is excellent and offers a very low cost per tonne model...due to the fact that tailings are a surface pile...Once up and running it will provide significant cash flow.

Mar is not a front burner priority, and is a growing land asset at this point. La Dura has been in negotiation due to a debt by the past property owner to Penoles, and we must have that negotiated to a reasonable settlement.

Drilling is being planned for November at La Soledad and presents an exciting opportunity to further define the rich high grade resource at that past producing mine site.

Regards,

AGORACOM