Update as of February 23, 2008

2-23-2008 

From the desk of Russell Twiford, Vice President in charge of Research.

To all stockholders and interested parties,

Our production department is hard at work processing fifty 20 gallon tanks which equals, extrapolated out, 1,000 gallons, using our revamped process.  As soon as the runs are completed, the recovered gold will be taken to our refiner in California where the purity will be determined.

We also are using an electrolytic process that will allow us to put our final product into three/four nine purity which is considered to be 24-carat, or as pure as gold can get.  This could open the door for attracting end users, thereby eliminating our refining costs.

Our research lab has also been working on the recovery of platinum which is now around $2,200 per ounce, and we are getting as high as 10 ounces per 1,000 gallons of leach water, extrapolated out - but a word of caution: results in the lab have to be duplicated in the tanks or they are meaningless.  We will attempt to do that in the very near future.

As we are now producing every day with fairly consistent results due to our refined process, we will attempt to provide updates on a weekly (if not semi-weekly) basis to keep our shareholders apprised of current operations.

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.