We Have Substantial Indebtedness and Capital Needs That Require That We Raise Capital.

As of December 31, 2012, we had current assets of $3,445,040, current liabilities of $4,104,402, and a working capital deficit of ($659,362). We have $936,456 of accounts payable to third parties, and $2,906,605 of note payments due in the next year. In addition, we have an additional $407,228 of notes payable due in more than one year, some of which have been reclassified to current liabilities due to our failure to make interest payments on the notes. As discussed elsewhere, we also have substantial capital needs to complete our leaching facility and metallurgical lab, complete our survey of War Eagle Mountain and for working capital. We are currently unable to pay our liabilities in the normal course of business from cash flow from mining operations. If we are unable to raise substantial new capital, we be forced to terminate our operations or sell out to a larger company. We expect that any capital we raise will be dilutive to existing shareholders.

I demand an independent auditor to keep track of dorebars coming out of the Mill and going to the refiner. We are part owners of the company...WE MUST DEMAND THIS AND VERIFY!!!