Update on Building Installation

9-29-2006

Information Submitted by Russell Twiford, Vice President in charge of Research and Operations

We have been receiving numerous calls daily and the main question that is being asked is, "Is the concrete poured yet?"  The concrete has not been poured yet because the architect is finishing up laying out the exact locations of drain holes and water lines so the engineers can sign off on the plans.  Once this is completed, the concrete will be poured and allowed to set for several weeks, and then the building, which is now onsite but not assembled yet, will be erected on the slab.  The pouring of the concrete could happen as early as next week.  After the building has been erected, the interior rooms such as restrooms, offices, lab, kiln room, aqua regia room, safe room for the storage of precious metals, etc., will have to be built out and finished.  Then the components of the facility such as tanks and other equipment, etc., will be installed.

In the meantime, the small lab currently located inside the compound has been finished and we are doing lab-sized tests.  When those tests are finished, we will move to the pilot plant which is now ready to work in and we’ll finish our testing there until the main facility is ready to use.  We are also pleased to announce that we have worked out a method to recover our gold as a 24-carat product which can then be reused as inquart in the production lines. 

My personal thanks to those stockholders who have stuck with us through the past few months and over the years.  We are on the brink of actually doing what scientists have been trying to do for many years so we ask for a little more patience as we get everything in place.  We will be posting pictures of the concrete slab being poured shortly, as well as the erection of the building as it happens, so please check back on our website for updates.

 This communication to shareholders and the public contain certain forward looking statements. Actual results may vary materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding estimated reserves, estimated future production, and the value thereof, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.