GPGI Activities Update

1-26-2007

The construction of our new plant facility continues to move forward despite some weather related delays.  Since our production process is temperature-sensitive, we are utilizing a new sprayed-on insulation that is applied to the outside of the building that far outperforms ordinary sheet insulation and will provide us an R-19 rating, as well as protection from the chemical environment.  The interior walls will soon be insulated and then the concrete floor sealed.  The rough plumbing has been installed and we are now waiting for the final drawings from our electrical engineer.  Once the electrical engineer has completed his drawings, the interior finish work can be completed, including the main laboratory facility.  Much of the equipment needed to operate the facility and Lab has already been purchased and is ready for installation.  We have also hauled in 850 tons of stone used to grade around the building and to pave the road from the facility to the main County road.

We can assure you that during this extended construction period, we have not been idle with regard to our continuing efforts to perfect our process for the extraction of gold and platinum.  Presently, we are using the full laboratory facility in our existing pilot plant.  This temporary plant that is located on the property has been remodeled and expanded.  Numerous tests have been run in an effort not only to improve the process, but also to better our techniques.  The process has been reviewed with our independent processing engineer to determine what new equipment is available that will increase recovery once commercial production commences.  Current plans are to start production in early March.  At this time, management is reluctant to publish the test results to date until they have been independently verified; however, we can represent, based upon our own analysis, that such test results indicate recoveries equal to, or in most cases, in excess of test results previously reported and published.

Although the construction phase is not yet complete due to our weather difficulties, substantial progress has been made.  We are fortunate to be working with a number of highly qualified professional engineering firms in the areas of process engineering, environmental quality, and mine safety who are assisting us in our efforts - the benefits of which will be evident as we proceed over the next few weeks.  The Company is committed to providing its shareholders with progress reports as information becomes available and appreciate everyone’s continued interest and patience as we move forward.

 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.