W Project, Humboldt County, Nevada

Shallow drilling has intersected over 15 meters (m) grading 2.4 g/t Au within 45m of surface and up to 72m grading 0.34 g/t Au in wide spaced drilling hosted in a 30m wide northerly striking, east dipping calcite-quartz vein-structure, in hanging wall sediments, and in blind, hanging wall structure. The zone (“W” vein) can be traced over 920m along surface and for an additional 610m under sand cover by drilling. The zone is open-ended and continues north of gold-bearing drill intercepts. Both the outcropping and blind zones are supported by resistivity-IP. Gold mineralization is associated with intermediate dikes and calcite-quartz veining-jasperoidal fillings along structure, expanding into and locally replacing Triassic calcareous and limey siltstones. True widths of the vein zone range from 20 to 36 meters at surface. Intercepts up to 72m wide along strike may not represent true width although mineralization is apparent in the hanging wall as well as the vein.

An enriched silver and trace element (As, Sb, Hg) suite accompanies gold mineralization including 10m @ 17 g/t Ag, up to 1475 ppm As over 53m, 645 ppm Sb over 47m and 5 ppm Hg over 70m. The trace elements don’t present a true sense of highs (and lows) because the analyses are 15’ to 20’ composites. Drilling has identified a geologic resource of approximately 1,500,000 tons grading 0.87 g/t Au along a section of the fault zone approximately 250m in length. A larger zone of +0.3 g/t Au has been identified by wide-spaced drilling (150 x 370m grid). A “global” +20 million tons of material can be inferred from this widespaced drilling comprising about 300,000 ounces Au including the higher-grade zone. These are non-compliant NI 43-101.

The structure, open ended south, north (of the 72m / 0.34 g/t Au intercept), east, and at depth is partially defined by 36 drill holes (8 open hole rotary, 30 RC), most shallow and vertical, drilled prior to 1992. Nearly 50% of the initial 27 holes either failed to penetrate the structure of ended in mineralization. Approximately 30% of these holes contained one or more intervals of no returns.

The W Project also includes a steeply dipping, similar calcite-quartz vein-structure (Shivley vein), intersecting the W vein at right angles. A caved shaft and remnantmill foundation attests to production (unknown-unrecorded) from the eaststriking Shivley vein that intersects the north striking “W” vein zone - along its northern, sand-covered segment. Historic drilling at Shivley returned intercepts of 40 m @ 0.4 g/t Au, 36 g/t Ag and up to 2.2 g/t gold and 312 g/t silver over 1.5m intervals. The Shively zone is traceable on surface for over 1,000 meters and is over 17 meters wide at surface.

A total of 7,175m in 54 holes have prospected the “W” and Shivley areas.