Project Status Update

by: Drake Management

ATLIN SILVER PROJECT

New management has decided to relinquish all interests in our Atlin Silver Project in Canada. We determined that despite the project’s potential for silver resources, its remote location presents too great an obstacle for profitability. The Atlin Project is located in an isolated region of British Columbia. Access to the property requires at minimum a several hundred-mile helicopter ride. Also, its northern climate severely restricts the mining season. These factors convinced company management that the Atlin Silver Project was not viable.

GEORGIA MINING PROJECT

During management’s internal review, it was determined that the current structuring of leases and agreements were insufficient to protect shareholder value. Specifically, the Joint Venture agreement with Southern Mining Exploration was void and the leases held by SME were invalid. Management is currently exploring alternative options to structure agreements pertinent to the Georgia project.

The Dove Explorer 500 has not been delivered to the site, as Aero Surface Mining Technologies has failed to fulfill its contractual obligations to Drake.

EAGLE MINING

There are no substantive updates at this time, but Drake management maintains a positive working relationship with Eagle Mining and is working to secure the equipment necessary to commence production.