For Q3, 2010, the average gold and silver prices were as follows:

Gold:

July = $1192.97

August = $1215.81

September = $1271.10

Average = $1226.63

Silver:

July = $17.96

August = $18.36

September = $20.55

Average = $18.95

ECU has 3 different products which are generating revenue, namely the dore bars from the oxide mill, the lead and zinc concentrates, and the pyrite concentrate. In order to estimate revenues, I am going to assume that after shipping and refining or smelting we get 95% of contained metal for the dore, 85% for the lead and zinc concentrates, and 60% for the pyrite concentrate. Also, I will assume that all sales were at the average prices for gold and silver above, except for the pyrite concentrate for which I will use the September prices since this is when we began shipping. I will also use an average lead and zinc price of 90 cents per pound and have esimated the amount of metal in each category where that information was not supplied in the news release. The estimated sales for each category are as follows:

Dore - Oxide Mill:

Gold = 1989 oz

Silver = 50,000 oz

Lead and Zinc Concentrates:

Gold = 0

Silver = 10,000 oz

Lead = 141,215 lbs

Zinc = 65,616 lbs

Pyrite Concentrate:

Gold = 3999 oz

Silver = 12,264 oz

Using the above figures and explained methods, our Q3 revenue from each category is as follows:

Dore = $3,217,904

Lead and Zinc Concentrate = $336,915

Pyrite Concentrate = $3,201,092

Total Q3 revenue estimate is thus $6,755,911.

Using current prices of $1,327,70 gold, $23.29 silver, and $1.13 lead and zinc, Q3 revenues would have been $7,368,717.

Since total company expenses and costs are about $5.5 to $6 milliion per quarter, we should have made about $1 million in Q3.

From what I can tell, once we are running the sulphide mill at full 320 tpd capacity, we should be able to continue quarterly shipping of close to the amount of pyrite concentrate shipped in Q3 which was 5,961 tonnes. We also need to improve ore grades which the news release explained will happen in Q4. Last we need to improve recoveries of the oxide mill which I understand the company is making progress on. Regards.