“On December 8 conference call, Deputy Secretary Wolin informed the group that CFIUS had identified serious, significant and consequential national security issues; specifically, Deputy Secretary Wolin stated that some of the Firstgold properties are adjacent to or in the same proximate area as the Fallon Naval Air base and related facilities.”

“Thus, Northwest and Firstgold must make a decision during the week of December 14”.

“Northewest and Firstgold may separately decide to withdraw, or they may act jointly.”

“Terry Lynch attempted to explore alternative transactions to determine if they would be any more likely to be successful, such as posing the question of whether or not a 20% ownership position plus a board seat would be received more favorably. Chairman Jaskowaik reiterated the CFIUS message that CFIUS can only review the transaction before it, and that CFIUS does not provide any advisory opinions or separate guidance.”

“Chairman Jaskowiak…reaffirmed that the problems apply to all 4 Firstgold mining properties.”

“In sum, Chairman Jaskowaik delivered a clear, unequivocal rejection of all aspects of the transaction.”

“Chairman Jaskowiak…asked if the parties were prepared to share any guidance as to their plan of action. Neither Northwest nor Firstgold were prepared to respond on this call.”