Dear shareholders,

Please see responses to questions provided as part of our Q&A session with AGORACOM. You will see my answers in red below.We thank you for participating and encourage you to utilize this forum to stay informed.

1) posted on Jan 12, 12 06:01PM

In the November 30th news release it was stated that the La Yesca tailings mill had been very close to declaring commercial production before running into equipment, power, flood issues, and plant flow issues. Since that time there has been $6 million dollars added to the cash balance as the result of the McFauld's Lake sale of properties. It was the companies intention to use part of that newly added capital to address the production concerns at La Yesca with a goal of reaching a more final production solution in the first quarter of 2012.

My questions are;

What is the most recent figure available for the current cash balance on hand for the company?

What is the estimated capital investment required at the La Yesca mill for the company to reach its stated goal of operating the mill at a consistent run rate of 200+ Tonnes per day, which will result in the type of long term revenue run rates that will assist the company in achieving a number of goals in a number of areas?

Is the current goal still towards the previously stated more final solution in the first quarter of 2012? Or, has enough progress been made to date to be able to change that to a final solution in the first quarter of 2012? Because of the upgrades involved it may be difficult to be able to commit to a certain time line and perhaps that is why the news release was worded as a more final solution, however, I am wondering if there is an estimated date, agreed to with the contractors involved, for the completion of the necessary work.

I think this Q & A exercise is an excellent idea that management has put forth for us retail investors. Hopefully there will be several questions that will not only provide us with more information about our investment here but will spark meaningful discussion here on Agoracom. Hats off to our management for the opportunity.

Estimated spend on La Yesca is approx $400 K. Still looking to complete in first quarter. Can not release detailed financial information on forum - until financial filings are placed on Sedar.But approach is to conserve capital and use cash flow as much as possible for growth initiatives.

2) posted on Jan 12, 12 06:41PM

Fast forward a bit and let's assume the Copalquin legal issue resolved. Could we then not just apply for a mining permit and blow up that area around the glory hole we hit there in '06? Scoop it on to a rock trailer and haul it to La Yesca mill. Worst case, scoop it into a roll off skid bin, drag it out with a tracked cat, on to a roll off truck and off to the mill.

How inhospitable is the terrain around those respective points anyhow?

Secondly, would bulk sampling make any sense at Xora. Didn't we hit visible metals when doing some scraping for the road. Should we be blowing this up?

Thirdly, do you know how to shoot video of things blowing up and posting them to the web site?

Quattro, Is the IR department asleep at the wheel? Selling $551,000 or whatever it was is a signigicant event and should be blared, not buried. Aquiring new land beside the mill is a significant event, material event and should be blared, not buried.

Cinqo. Are you feeling me there Gary ole pal?

Truck.

Trucking material from Copalquin to La Yesca is not feasible, unless there are considerable upgrades to the roads especially the last 45K to La Yesca , which we do not see short term.

Xora will be drilled this year to expand La Yesca mill life, La Pinta is a virgin land package - and was awarded to UC at no cost to the company. La Pinta again may provide additonal mill feed for La Yesca. The company is doing what it can to improve its communcations to its shareholders, the new website, corporate video, interviews on website and forums like this one are geared towards providing better information.

3) posted on Jan 13, 12 02:51AM

Thanks for this Q & A, Gary.

Good questions so far and I'd like to see something blowed up real good too, Truck ! Hmmm....a certain set of buildings in Ottawa & Washington to start with... just kidding.....

Okay, here are 3 that are different.

Question # 1 - Are there are problems with undesirables (ie - mexican bandits) in the area of the claims. Has UC had any instances with these types ? And what type of security is around the mill and the worked claim lands.

Question # 2 - How much monthly expense will be required to operate the mine at full capacity ? Or approximately what percentage of the expected revenue.

Question # 3 - What time frame or mill achievement or completed work is a reasonable assumption as to when shareholders would receive any dividends from the mill operation ? The dividends could be in the form of cash, shares or how about some gold wafers from the mill ?

UC Gold Wafers - I can see 'em now !

strato-gold

1) There are no issues surrounding undesirables in the areas where we have claims and operations. La Yesca is protected by its remoteness and plant procedure supplies adequate security for concentrate.

2) The mill operates at an approximate margin of 50%

3) The Company has not determined dividends as of yet - first order of business is commercial production, then leveraging that

cash flow to build revenues further - then dividends is a topic.

4) posted on Jan 13, 12 07:24AM

Hi Gary

Sure would like to know your projection on mill volume and concentrate for the next 6 months. Is it now spitting out concentrate to cover expenses and how much will there be for drilling this year?

I understand you want it to be know that we are a small producer, but I think the S.H. would like to know where the future ore will come from. Yes I know from previous drilling we have some good ore close by.

I know you and Jim can turn this company around and show the investment community what UC will be in the Future..A Producer!

Please make it a early future...LOL.....I see a good future for UC!

Will 2012 be U.C.'s Year to Shine?

Cheers

W.C. Guy

After the mill has gone through the equipment upgrade - should run at 200 TPD - which conceptually - considering prices for silver and gold, and no unforeseen issues - could produce potential gross revenues of $400 K per month with net before tax of a potential approx of $200k. The mill current tailings are estimated 48 months - this does not account for XORA , additional exploration at La Yesca itselfor La Pinta to extend mine life.

5) posted on Jan 13, 12 01:09PM

The company has said that Copalquin is a very attractive exploration target for gold and silver. There has been encouraging results such as 5.2 metres of mineralization averaging 45 g/tonne gold and 1,563 g/tonne silver during the Phase II drill program in 2006. And, it has been stated that it is important to note that in addition to the zones that have been tested, available data suggests that the extent of the epithermal system at Copalquin may be much larger than has previously been recognized.

On the company website it says that the company plans to resume a more detailed exploration program after successful commercial production at La Yesca and upon coming to an agreement close of an ongoing legal dispute over signed agreement with original concessionaire.

The information update on Nov.30 did not include mention of the legal dispute. Has that dispute been finalized?

The case was awarded to UC in September of 2010 - but went to appeal -and is still in courts. UC is going to explore possible remedies on this property this year , which could include a number of variables. It is going to be dealt with.