MOST RECENT In 2010, the Company released an upgraded resource estimate for the Moss Lake deposit. Our consultants, Watts, Griffis and McOuat Limited, recommend more metallurgical testwork, design of a conceptual site plan and hydrological studies be undertaken to provide the information required to refine operating and capital cost estimates for a potential surface mining and milling operation. The Moss Lake deposit displays geometries favourable for the application of large scale, bulk surface mining techniques. The Company plans to complete a Preliminary Economic Assessment concurrent with studies designed to advance the project to the Pre-Feasibility stage. To fund this work, the Company initiated a Rights Offering, but could not obtain regulatory approval on terms recommended by the directors. Subsequent to year-end, the Company arranged a $2.0 million convertible loan with Wesdome Gold Mines Ltd., which will satisfy its funding requirements and limit dilution to existing shareholders. We hope to provide shareholders with a clear estimate of costs and the economic conditions required to justify mine development on their property. We have a significant asset in a bull market and are obligated to optimize its value for you, the shareholders. On behalf of the Board of Directors, George N. Mannard President April 27, 2011