This portion of the drill program took longer than management had expected, due to unusually heavy rain and snow which made the project drill roads impassable at times, and to limited equipment availability. In spite of these minor setbacks, management is encouraged by the high grade intersection of IR-4 and has approved the initiation of a Phase 2 drill program.

Of the first 6 holes drilled, several intersected stopes (previously mined underground excavations) which were not visible on existing underground maps. This was to be expected to some extent, as Phase 1 of the drill program was designed to test an area of previous underground mining which had already had extensive workings. Of particular interest to management was drill hole IR-4, which intersected 10 feet of high grade gold. This 10 foot interval (105í to 115í) averages 0.50 oz/ton gold and occurs within a 40 foot interval (100 to 140í) that averages 0.154 oz/t gold.  Silver values for these intervals are pending.

Significant results for IR-4 by 5 foot intervals are as follows:

Hole No.  From(ft)  To(ft)  Intercept(ft)  ppm Au (oz/ton)

IR-4       100        105  5   0.88             (0.026)    

           105        110  5   11.60            (0.338)    

           110        115  5   22.80            (0.666)    

           115        120  5   2.06             (0.060)    

           120        125  5   0.89             (0.026)    

           125        130  5   2.01             (0.059)    

           130        135  5   1.27             (0.037)    

           135        140  5   0.76             (0.022)    

Exploration is progressing on the property and the company expects to be releasing a steady flow of results over the coming months.

After a pause to compile results, drilling is anticipated to resume on several targets which include:  the remaining untested1,500 feet long portion of the Imperial Mine project vein system; a gold-bearing brecciated jasperoid target; an IP anomaly; and a partially drilled gold resource.

"The Imperial is a promising mineral exploration property, in an area which we believe to be one of the highest-profile mineral regions in Nevada," said Donald Neal, President and CEO. "We believe that the Imperial, together with our other  highly-prospective Hercules and Gilman projects, comprise a significant foothold in what has historically been one of the most valuable and concentrated gold districts in the world."

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.