Copper King Mining Corporation fka CPRKQ

[FFF]

I have gone over the lawsuit and here is my summary of it.

1. The agreement and 2 extensions of the agreement between PN and CPRK expired on Nov. 1. 2008. And CPRK was supposed to put the PN properties into production by that time.

2. CPRK sent a letter dated Nov. 1, 2008 (but post marked 2 weeks later) stating that CPRK had achieved production as defined in the agreement and they also included at $12,600 "first copper royalty check". This check has not been cashed by PN. The letter states that CPRK had commenced production of copper ores as of Jan. 2008 and magnetite as media iron and iron ore late Sept. 2008.

3. PN wants to know why they have not received any additional royalty checks since Nov. 2008 if CPRK is indeed in production.

4. On Feb. 11, 2009 PN sent letter to CPRK requesting information to prove that production had been achieved. Some of the info requested was:
a. What are the mining claims from which the copper and magnetite ores were produced? (probably want to know if it was from PN claims).
b. Does a written plan for processing of ore exist?
c. Did the purported production of copper, etc. come "from ore", as required by the agreement.
d. Details of the purported sales of copper and magnetite.

5. PN claims that CPRK did not provide any of the supporting documentation requested.

6. PN wants the courts to determine:
a. If CPRK has put the PN properties into production.
b. Whether a force majeure condition exists, what is it, and when did it start.
c. Whether or not the agreement has been met, or can PN take back the properties and assets. This would also include CPRK providing PN with all of the geological, engineering and other technical work they have done on the property.
d. Has CPRK met all of its obligations from the agreement?



It seems to me that PN is on a fact finding mission to see if they have grounds on which to take back their property. Due to the timing of lawsuit, I am wondering if the Road Project is on the PN property? If it is, is PN just trying to scare CPRK that they might get the Road Project property back and all of CPRK's drilling findings in an effort to get more money from CPRK? Or maybe they really want the property back because they now see there is value in it.

Also, assuming that the claims are true, then CPRK is withholding information from PN as well as from us. At least they are consistent!


There are a couple of areas in which I have some concern about this lawsuit.

1. You never know how a judge will rule in a lawsuit. I have been sued and even though I was in the right, the judge split the amount and ordered me to pay - I was shocked, to say the least.

2. I was not aware that CPRK started the production of copper ores in Jan. 2008. Unless that just means mining ore, and not processing it.

3. The commission check was made as a copper royalty check covering 3.5M pounds of copper (I think they meant copper ore) (125k short tons x 2k lbs/ton x 2% copper x 70% recovery) at $.18/lb x 2% royalty = $12,600. Was CPRK producing and selling copper back in 2008?

4. If CPRK is producing Magnetite, why have there not been any additional royalty checks since Nov. 2008?

5. Has the magnetite been processed from ore (as required in the agreement) or just from old tailings from some of the old mines? And were these tailings from mines on the PN property or elsewhere? Because the agreement was to put the PN property into production.

FFF