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Message: e-mail from Gary

Road access to our drilling is ready and agreements are in place. We have had a group from China over to look at the Xora silver and gold veins which run at surface for over a km. This raw feed will extend mill life for we believe 10 years. The Chinese liked what they saw - my thinking is to get them to invest to move drilling faster. We had one section that was 6 gm of gold per tonne over 6 meters. Do not know if this will come to fruition - it is a work in progress. Took the big ball mill out for necessary maintenance - but that will be back in line - we believe this week. Silver and gold prices have been bouncing - but if we run consistantly at 200 tpd we make money if silver is over I believe $18 - $19 per ounce.Under that it is sketchy. Still shooting for July 2013 for commercial production annouincement.

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