Cautionary Note to Investors Regarding Mineral Disclosures

We commissioned a technical report in accordance with the Canadian Securities Administrator’s National Instrument 43-101 ‘‘Standards of Disclosure for Mineral Projects,’’ commonly known as NI 43-101, as well as a preliminary economic assessment, or PEA. The Canadian standards are different from the standards generally permitted in reports filed with the SEC. In accordance with NI 43-101, we report indicated and inferred resources, measurements which are recognized terms under NI 43-101 but are not recognized by the SEC and are generally not permitted in filings made with the SEC. The term ‘‘resource’’ does not equate to the term ‘‘reserve.’’ Under U.S. standards, mineralization may not be classified as a ‘‘reserve’’ unless the determination has been made that the mineralization could be economically and legally produced or extracted. Investors are cautioned not to assume that any part of indicated resources will ever be converted into economically mineable reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. The SEC’s disclosure standards normally do not permit the inclusion of information concerning ‘‘inferred resources’’ or other descriptions of the amount of mineralization in mineral deposits that do not constitute ‘‘reserves’’ by U.S. standards in documents filed with the SEC. The PEA contains estimates based on our indicated and inferred resources. However, in accordance with both U.S. standards and NI 43-101, estimates of inferred mineral resources cannot form the basis of a feasibility study. We are providing the disclosure herein to provide a means of comparing our projects to those of other companies in the mining industry, many of which are Canadian and report pursuant to NI 43-101. Accordingly, information contained on this website containing descriptions of our mineral deposits may not be comparable to similar information made public by other U.S. domestic companies subject to reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder. Further, investors should be aware that the company has no ‘‘reserves’’ as defined by SEC Industry Guide 7 and are cautioned not to assume that any part or all of the estimated mineral resources will ever be confirmed or converted into SEC Industry Guide 7 compliant ‘‘reserves.’’