Update To Shareholders

7-6-2009 

To our valued stockholders:  From the desk of Russell Twiford, Vice President and CEO;

I am  happy to announce that we are considering entering into a joint venture with a reputable mining and refining company.   They have developed a slightly different method of concentrating and refining  ores that are difficult to extract the precious metal from and have many tons of fairly rich material already mined and ready to concentrate and refine under contract.  They have also developed a method of smelting the concentrated ore into Dore’ bars that appears to be slightly different from standard methods used in the industry and if we enter into the JV we will be doing the extraction of the precious metals from the Dore’ bars which will be taken to a refinery for final processing.  At the present time we do not think it wise to put out any definitive numbers or names until we are completely satisfied that all representations are accurate and funds are in the bank and we are able to verify precious metal recovery numbers from the first lot of material processed, perhaps as early as by the end of next week.

The proposed JV partner is supposedly arranging funding for the venture so we will be able to continue with our processing of the precious metals  from our aquifer waters and perhaps increase our recovery immensely.  Provided the numbers are acceptable from the first lot of material processed by our proposed JV partner and our funding is in the bank, we will then enter into a JV and then we will feel comfortable in doing a national press release to the public.

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.