Year End Update December 2010

To Our shareholders:

It is my pleasure to be able to announce an Ore Processing agreement with Pele Nevada LLC. This negotiation began in 2009 and has taken a great deal of time and effort to accomplish. We believe that this contract has the potential to demonstrate the value of our Marcos property.

Pele Nevada, LLC. is located in Sparks Nevada. When we visited the facility last year we were impressed with its capability and how it was being operated. Dr. Jack Ruckman, who is the Director of Pele Nevada LLC has been instrumental in preparing the facility to handle our company’s specific needs and I would like to thank him personally for his efforts.

Our contract with Pele is for 5 years with additional option years. Because the Sparks facility is a fully licensed and permitted Pilot Plant it does have a size limitation and as such, plans are being discussed to expand to a larger plant once pilot production exceeds the limitations of the facility.

In January we will begin setting up a production circuit and hopefully begin to run commercial quantities of material thru the plant. Management is excited about the potential this agreement could mean for the company and of course our future in the mining business.

I would like to thank our shareholders for their loyalty and patience as this process was more time consuming that originally anticipated. I wish all a wonderful holiday season and what could become a exciting new year.

On Behalf of the Board,

Stephen D Plumb, CEO