2010-03-16_REVISION - M1981185 (29)

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Wildcat Mining Corporation Page 2 scale underground methods. Diligence to forward looking exploration and development is required to avoid the feast and famine mine life that characterized much of the early history of La Plata district mines. Wildcat Mining has embarked upon a program to reopen the underground workings of the May Day mine, to construct a mineral processing plant on the Idaho millsite, and to initiate mining and gold production in 2007. The company holds a 10 -year renewable lease for mining on the 151 acre May Day mine property and has purchased the 141.5 acre Idaho mine property and millsite. Most permits are in place. The principal components of the mineral processing mill have been purchased and refurbished as necessary; final configuration, plumbing, and commissioning remain to be completed. Most of the mining equipment has been secured; work to reopen and stabilize the old mine workings has yet to start. The property has no significant historical environmental liabilities; the proposed operation presents no important environmental problems. The mineral processing will involve no cyanide, no mercury, and no ore roasting. There has been no significant exploration of the May Day mine for some three decades. From historical records and limited exploration completed during the 1980's, there is documentation of discovered but unmined gold and silver ore remaining accessible from current mine workings. Historical reserve estimates indicate availability of ore tonnage sufficient for some years of mining at grades of 0.20 -0.55 troy ounces gold per ton. There are, however, no defined Mineral Resources or Mineral Reserves that meet current standards for Resource and Reserve calculation, documentation, and reporting. The current operating plan is to initiate mill production with 2700 tons of stockpiled ore while rehabilitating the mine workings for production. Early mine production will extract blocks of ore identified in historic documents. Mining will be by selective cut - and -fill or shrinkage stope trackless mining, as appropriate for the geometry of the ore bodies. May Day ore will be trucked by surface to the Idaho millsite. There, the ore will be processed through a conventional recovery circuit involving crushing and grinding, gravity recovery, and froth flotation. Mill tailings will be settled and placed underground; water will be recycled. There is sound geologic evidence to indicate excellent potential for discovery of additional significant gold - silver ore bodies within the May Day -Idaho mineral system. Discovery of new ore shoots will require thoughtful exploration, integration of the historic records with new geological work, application of modern exploration technology and models, and systematic underground drilling. The economic viability of the new venture will depend upon efficient mining and mineral processing, with attention to every detail. True success will be realized with discovery of new veins or replacement deposits of high -grade mineralization. • January 2007 May Day - Idaho Mine Colorado