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Re: None

Saturday, 05/01/2010 9:17:37 PM

Saturday, May 01, 2010 9:17:37 PM

Post# of 221872
1. THE COMPANY’S CONTRACTUAL RELATIONSHIP WITH SEARCHLIGHT EXPLORATION, LLC:

From the Form 8-K Filing:

“The Company has long standing Agreements with Searchlight Exploration, LLC which contain provisions for “Minimal Work Expenditure” on both the “Bouse” and the “South Copperstone” Gold Properties. Failure by the Company to meet these “Minimal Work Expenditure” requirements in these agreements result in an immediate cancellation of the Company’s rights to these Mining Claims and would result in the immediate forfeiture of all of the Company’s rights in and to these two Gold Properties; to Searchlight Exploration, LLC. Had Searchlight Exploration, LLC held the Company to its contractual commitments; the Company would have forfeited all of his rights in and to both the “Bouse” and the “South Copperstone” Gold Properties.

The Company has settled with Searchlight Exploration, LLC (“Searchlight”) as follows:

1. The payment to Searchlight in respect of the 2004 to 2005 Year, an amount of US$100,000 (One hundred thousand dollars); and

2. The payment to Searchlight in respect of the 2005 to 2006 Year, an amount of US$200,000 (Two hundred thousand dollars); and

3. The payment to Searchlight in respect of the 2006 to 2007 Year, an amount of US$110,000 (One hundred and ten thousand dollars); and

4. The payment to Searchlight in respect of the 2007 to 2008 Year, an amount of US$200,000 (Two hundred thousand dollars); and

5. The payment to Searchlight in respect of the 2008 to 2009 Year, an amount of US$200,000 (Two hundred thousand dollars).

The total amount owed to Searchlight as at November 24, 2009 is in the amount of US$810,000.00 (Eight hundred and ten thousand dollars).

The Company issued a Loan Note to Searchlight Exploration, LLC on October 1, 2008 in the amount of US$810,000.00 (Eight hundred and ten thousand dollars). This Loan Note bears interest at the rate of 10% (Ten percent) per annum and is repayable upon demand.

The Company’s settlement of the “Minimal Work Provisions” with Searchlight, LLC has protected the Company’s interests in both the “Bouse” and in the “South Copperstone” Gold Properties.”



Management Comment:

This was a vital and necessary step in order to protect your Company’s interests in the two Gold properties. Searchlight Exploration, LLC is independent of your Company and their goodwill and support towards your Company is greatly appreciated. Your Company’s settlement with Searchlight Exploration, LLC averted the potential loss of your Company’s interest in these two Gold properties and cemented the long term cordial relationship that your Company has enjoyed (and continues to enjoy) with Searchlight Exploration, LLC.

Searchlight Exploration, LLC holds a direct interest in the amount of 9.99% of both the “Bouse” and “South Copperstone” Gold Properties.

The Agreements covering the contractual relationships between your Company and its subsidiary companies with Searchlight Exploration, LLC were filed in a Form 8-K dated October 25, 2005 in respect of the “Bouse” Gold Property and in a Form 8-K dated November 16, 2005 in respect of the “South Copperstone” Gold Property.

Allegations on various of the Internet Stock Chat Forums relating to Searchlight Exploration, LLC, its principals and Affiliates (“Group”) and stating that this Group own significant amounts of shares of your Company’s Common Stock and are disposing of these shares of your Company’s Common Stock are untrue, false and very misleading. The Management of your Company hereby unreservedly apologizes to Searchlight Exploration, LLC, its Principals and its Affiliates for these untrue, false and unwarranted statements made by unrelated third parties. For the record, Searchlight Exploration, LLC (and its Group) holds no more than 50 million shares of your Company’s Common Stock and has not disposed of any shares of our Common Stock, to date

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