CEO Nicholas J. Slinde Updates the Shareholders on Georgia and Arizona Projects

by: Nick Slinde

Based on the numerous issues Drake's former management had advancing the Georgia and Arizona Projects, I felt it necessary to reevaluate Drake's projects and determine if the same were truly viable from a monetary and/or regulatory perspective. That review has raised certain concerns about both projects which are outlined below:

Georgia

As a preliminary matter, a number of shareholders have inquired as to the legitimacy of the assays previously taken on site. Although we believe these assays are accurate and verifiable, it is prudent to have them confirmed by an independent third party. However, before incurring that expense, I felt additional investigation was needed to determine the true area of mineability and regulatory impact a free flowing stream located on site would have on the project. Applicable code requires a 500' buffer between mining activities and adjacent property lines which severely restricts the mineable area. To expand the mineable area, it is necessary to secure the rights to neighboring parcels and include them in the zone change application. Drake's current Lessor has been enlisted to help facilitate these acquisitions. This process should be completed before expending additional resources, monetary or otherwise, on the project. With respect to the stream, its central location further restricts an already limited mineable area. Applicable code requires a 50' buffer between workable area and water resource. To minimize impact and ensure an economically feasible project, I believe Drake must first acquire rights to the neighboring properties to effectively expand the mineable area. Provided additional properties can be secured, every effort will be made to prove up the sites’ potential yield through the confirmation of existing assays and ready the properties for production.

Arizona

I was similarly concerned with the restricted area of mineablity and reclamation process allowed/required under the current bulk sampling permit. Under the current Mining Notice, the dimensions in which active mining can occur were severely limited by the filed notice and existing bond. The BLM has confirmed that this area can be expanded by way of revising the mining notice and increasing the bond, if necessary. However, before this avenue is pursued, I believe it necessary to have non-refined assays taken from site evaluated, as existing assays measure the gold content of already refined samples. Management is working to arrange for the removal of non-refined on site material for testing. These processes, although time-consuming, are necessary to confirm the viability of the project. This process is ongoing and updates will be given as information is made available.

Where We Go from Here…

Funding for operations, project investigation and the advancement of projects, existing and future, remain a major concern. The current state of the financial markets has made raising capital extremely difficult and the shareholders' overwhelming opposition to a share restructuring severely limited our ability to generate much-needed funds. Nonetheless, we are working through a number of creative concepts for expanding Drake's operations to create revenue through strategic alliances and market expansion. Specifics about any such opportunities will be passed on once it is determined the same offer realistic growth opportunities for Drake. Ultimately, it is our shareholder base that will facilitate executing on these opportunities. Your continued involvement and support are appreciated.

As for the blog updates, I originally intended on giving bi-weekly updates and apologize they have not come that often. In the short term, I think it is more appropriate to provide updates whenever information worthy of distribution becomes available. This ultimately may be less frequent than originally proposed but will create what I hope to be a more fluid dialogue between management and the shareholders.

Please continue directing any questions and comments you may have to CEO@drakegold.com. As I am receiving a number of emails daily, it is becoming increasingly difficult to respond each of them directly. However, I promise any inquiries are being reviewed and considered at our weekly management meetings.

Share Structure Update

By: Nicholas J. Slinde, CEO and Chairman

I want to thank all of you for your comments over the last week. Understandably, most inquiries concerned my plans for the company and specifics about pending projects, cash flow needs, pinksheets status and share restructuring. It was necessary to perform my own due diligence with respect to the Georgia and Arizona projects. The deficiencies in the base documents have been resolved and we are attempting to reengage our third party consultants and assemble project timelines. Numerous opportunities for generating cash are being explored. I believe our current cash needs are manageable and every effort is being made to advance the projects as soon as possible. We are working hard to finalize the revised financials/disclosures for submission to pinksheets and expect to have that completed within the next couple of weeks.

In recent months, the Drake Gold Resources Board of Directors has reviewed a range of unsolicited proposals relating to the expansion of Drake’s core business. A number of said proposals included a requirement that Drake adjust its share structure through a reverse split or an increase in authorized shares. Albeit unrelated, it has also come to our attention that many in our shareholder base are concerned about such an adjustment. Drake’s Board of Directors has determined that adding an additional corporate direction, undergoing a reverse split or increasing authorized shares would not be in the best interest of shareholders and will detract from Drake’s core business.

As such, our primary focus has been and will remain the exploration and production of precious metals as well as other mining related ventures.

Letter to the Shareholders from New CEO Nicholas J. Slinde

Dear Shareholders:

By way of introduction, my name is Nicholas J. Slinde and I am the new Chairman and CEO for Drake Gold Resources, Inc. I wanted to take this opportunity to express my gratitude to the management and shareholders at large for taking the time to discuss their concerns about Drake's current condition and offer constructive ideas for obtaining profitability and enhanced shareholder value moving forward.

In the end, we all share a common interest in Drake's future success. I believe each of you will be pleasantly surprised by what I hope to be a new era of corporate governance. This will include a fundamental commitment to transparency and maintaining an open dialogue with our shareholder base.

Each of your comments and suggestions are enormously important to Drake's success and will be given due consideration as we attempt to move towards sustained profitability. With this in mind, I will be taking the time to publicly answer shareholder questions that I feel to be most pertinent to investors as a whole. Please write me anytime at CEO@DrakeGold.com. My answers will be posted on biweekly to the Drake Blog (http://drakegold.blogspot.com)

I know that this organization and its shareholders have gone through some difficult times. I also understand that many of you are frustrated by what is perceived to be lack of carry through and execution. All I ask is that you work with and not against me as I try to turn things around. I assure you that I am personally committed to the enterprise and will do my best to enhance shareholder value and stabilize the company's operations.

Thank you for your anticipated support and patience.

Nick

Georgia Lease Update

By: Drake Management

Drake management has succeeded in restructuring its Georgia lease agreements, by signing directly with the property owner. As previously announced, Company management determined that the previous structuring of lease 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.

Upon making this discovery, Company management placed a hold on all forward movement with this project until new agreements were in place. After exploring every option, Drake terminated its relationship with SME and entered into lease agreements directly with the Georgia lessor, who is fully supportive of Drake’s endeavors in the area. With the new lease structure, Drake maintains full control over all operational decisions, actions and management.