Perspective is everything and I have chosen the most conservative approach to this analysis. This is an interesting point in the evolution of UC because we are on the verge of the transition from being an ‘Exploration’ company to being a mining company. We are fortunate that Jim earned his stripes as an executive in the tire business because he has an intimate knowledge of managing a "Going Concern". That is executive speak for the company mandate of making a profit versus the exploration company mandate of using spec-stock equity dollars to prove up a resource and then sell it off to the highest bidder.

In the first case it is the day to day operational efficiencies that put the value on the bottom line and encourage investors to buy in to future dividends or disbursements of profits. This is the transition that UC will be going through in 2009. Not that I expect to see a dividend cheque from them in 2009, but this potential exists in the very near future. In 2009 we are still by definition an exploration company. Our net-backs or profits will be invested in developing Copalquin and meeting our commitments at McFaulds.

Jim is very optimistic about the potential of the Xora claim and the La Colorado mine tailings. I think we will be very pleased with the abundance of readily available ore on that property and the long term viability of the La Yesca Mill as a result. So this is where the definition of gross margins from operations, or 'operational netbacks' becomes obscure. I prefer my conservative approach of a “Going Concern” to view the cost of the raw material as an operational cost and therefore forecast the 25% netbacks in my analysis.

Others would prefer to specify that the exploration, development and everything but the physical transport and supply of the raw materials (ore) as an exploration cost.

Perhaps this is the difference between the 25% net-back that I present and the 50% netback that you anticipate. Plus the 25% number I chose was based on my experience as an industrial manufacturer of commodity chemicals. I am not an accountant and do not have a bible of definitions to support my view, so I surrender this disclosure and look forward to an ongoing discussion.

And there is a lot to discuss. When this cash flow hits our financial statements it will be a watershed moment in the history and definition of this company. Long term sustainability of the La Yesca mill will be our top priority and then we are fit, ready and able to take on incredible challenges.

In closing I would like to apologize for my diminishing aim as a typist. I re-read yesterdays post and many typo errors made it through my spell check, hopefully this one reads better.

Aafab