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.