Universal Apparel and Textile Co. (DKGR)

[Self Made]

Claytons Corner Dec 20th

Drake Gold Resources Moves Into The Broader Natural Resource Business.

The Management of Drake Gold Resources (DKGR), myself included, has a broad skill set and deep roots in the area of natural resources. With the accumulated knowledge related to efficient natural resource recovery at mature sites it has always been our intention to move into energy production as well. As we have come into the final phase before production at the Jackpot Placer property it becomes clear we need to push into other areas of growth.

With all of this in mind it also is clear that to broaden the view of a company can also mean losing focus. Taking both the opportunities we have available to us and the need to avoid mission drift, the board at DKGR has decided to pursue the lucrative energy opportunities we have before us while avoiding the obvious pitfalls. We are doing this by spinning off the energy operations into a subsidiary company that will be controlled in part by Drake but also be a separate stock issuing company.

What This Means For Stockholders

My mentioning the spin-off is not simply a solicitation for current stockholders to buy shares of the new company. Indeed, we intend to take the unprecedented step, for a OTC traded company, and issue a dividend of the new company’s shares, to DKGR shareholders of record January 3rd, 2007. There is a minimum holding requirement of 25,000 shares to receive the dividend. Details are covered on the company website, here.

http://drakegold.com/default.asp?Page=PressRelease_29

We see this as a way to really increase the value of Drake while limiting risk. The new operations can be managed by a dedicated group of professionals that can avail themselves of the expertise and resources that the DKGR team brings to the table. We have tried to make this a best-case scenario for all concerned.

Other Exciting Drake News

The Jackpot Placer has been gathering all the necessary equipment it will need in anticipation of the granting of mining permits. There was an unfortunate delay in production caused by a backlog of work at the Bureau of Land Management. I guess it’s understandable, so much land and so few government geologists to manage it. The BLM’s Geologist has begun the necessary work though to complete permits.

In anticipation equipment such as a scrubber and earthmovers have been moved into place so operations can commence immediately when the permits clear. Other equipment such as a Trommel, a screened cylinder used to separate materials by size, is in transit as well.