Santana Mining, Inc. (fka SNTZ)

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Imperia Entertainment Chairman Addresses Shareholders
Monday August 27, 9:38 am ET

LOS ANGELES, Aug. 27 /PRNewswire-FirstCall/ -- In response to investor inquiries, Imperia Entertainment's Chairman today issued an open letter to shareholders that reads as follows:

Dear Shareholders,

I have received emails from several shareholders who are concerned about the market price of our common stock and what, if anything, we are doing about it. Some shareholders have questions about whether the company controls the bid price of its stock and whether, without a bid, the stock is worthless and cannot be sold. Some shareholders have concerns about a perceived lack of disclosure. I would like to respond to these concerns.

The company is allowed to offer stock without registration to certain institutional investors. It can also offer restricted stock to certain accredited investors who must hold the stock for a certain period. The company has two kinds of stock; common and preferred. There is a market for the common stock and no market for the preferred, which has been used for financing in the past, but is mainly an instrument to maintain control.

If there is an abundance of stock, and if there is a perception in the marketplace, based on any number of factors, that the stock is a bad buy at the current offer, then the price will go down until there are investors in the market who collectively perceive it as a "good deal." When you buy stock on the market, your money does not go to the company. It goes to the market maker who sells you the stock, who makes money on the transaction, and eventually to the individual or entity who sold you the stock. That is how an over the counter market works, which is also the reason why the company cannot control the bid. Posting a bid for our own stock would be considered market manipulation.

Over the past two weeks there have been no bids, and when a market maker posts a bid, the orders have been filled completely. We are very concerned that the stock has become a no bid stock, but we do see it is trading, so this is a good thing.

All of our information is current and is posted on the pink sheets web site, http://www.pinksheets.com. It is accurate and up to date as to the float and outstanding shares. This company updates its information more than many companies on the Pink Sheets and that is why opponents of the company have so many facts with which to argue. We are an open book and that ironic fact gives our opposition more reasons to call us liars.

Investors have expressed concern that the company has diluted the stock and is following a pattern of reverse splits. Dilution is one of the reasons for the current market value. However, issuing stock in exchange for capital is sometimes what the company has to do to survive. It is a Catch 22. Without capital we cannot exist, and many times without issuing stock, we cannot raise capital.

The price per share is a priority for the company, but we cannot help without substantial capital. We have plans to improve the situation by buying back shares from the market, a practice which is legal, but which we cannot implement without monetizing our capital note from Nexxus One, a process which is currently underway. We have consulted a banker who is working to place a loan on the note, and who is currently performing due diligence to verify the validity of the note, a first step in the process of monetization. This process was delayed by conditions we have no control over and we are working diligently to get this accomplished. We have no current intention to initiate a reverse split of our common stock.

Our company operates as a movie production company; much in the way other movie production companies operate. Calculating shoot dates and completing post production runs on the generation of budgets and schedules. But often budgets and schedules have to change. It's no easy task raising millions of dollars, and orchestrating hundreds of people and machines to be in a certain place at a certain time. It is also an art process that has its own timing. It is not a science. For example, we shot a beautiful movie called "Say it in Russian," and it went to 35mm print through a digital intermediary process (DI.) We feel that this composite print is good enough to show to potential distributors and buyers, and it has been and will continue to be exhibited at film markets, but it is not the quality color that we know it should be, so we are re-cutting our negative and printing it photochemically, and redoing our special effects in certain areas to make the movie look the best it can be, so that it can fetch the best price that it can.

We are open, honest and truthful with our investors, but the problem is that when a stock starts to go down, investors tend to blame the company for their fellow investors' lack of confidence in the stock and then accusations fly. As the stock goes down, the cost of capital becomes more expensive.

Movies are a long term capital investment and take considerable time to recognize revenue from, but there is a need for content in the film market and many independent movies have been very successful in generating revenue. We feel that the market for our stock will react when we are able to obtain distribution of "Say it in Russian" which we plan to do by the American Film Market this November. We plan to begin shooting "Never Submit" in January and hope to see revenues from it in approximately two years.

Sincerely yours,

Kenneth Eade
Company Chairman and
CEO

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Imperia Entertainment, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Imperia Entertainment, Inc.

Kenneth Eade: 310-275-0089 or

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Source: Imperia Entertainment, Inc.