" Now he does have 2.4M options that have been awarded as compensation that are presently worth nothing but I found this a bit concerning"

The outstanding options, at the moment, are about 17.5 mill at an average of .14. This pretty much is a limit at 10% of outstanding shares. The only way more options could be issued, is they cancelled some older ones and reissued new ones in their place, which is generally frowned upon, or some optione expire, such as the ones due to expire next June.

In my opinion, the fact that these guys ( Gary, mainly) are willing to accept out of the money options as compensation speaks volumes.

Most investors will look at the fact that he has 2.4 mill options averaging .14 and immediately assume he has received a value of (2.4millX.14) $336,000. In fact he has received nothing.

BUT, in fact, if they could somehow drive the price up to .25, he would have created a value for himself of (2.4millX.11) $244,000. Even that statement is erronious, as he would be unable to simply cash the options in due to the fact he is an insider. In order for him to realize anything substantial here, they would have to somehow engineer a takeout of some sort, where he gets to walk away totally, usually with a bonus of some sort added on.

At any rate he (Gary) has been involved with UC for several years as I understand it, and if it takes another year or so to get this thing to a .25 share price, he will be looking at a return for his efforts of something much less than 100k annually. It does not take a huge amount of imagination to conclude that he sees a much better return than that for his now total involvment in UC. If I couple the above with the knowledge that I have a cost base for my holdings of about 7.5 cents/share, my comfort level becomes quite obvious.

When we first began this effort to get a mill working in Mexico, gold was in the 5-6 hundred dollar range. The intent then was to operate it profitably. We are now in the 1600-2000 dollar range for gold, are at least producing enough to pay all the bills, and have 6 mill in the bank.

I have a good number of investments in the exploration business, most of them are dogs, and I would love to see an opportunity to dump a lot of them. Not so with UC.

Best regards

K