The Company has entered into an option to acquire a 100% interest in the La Dama de Oro gold property consisting of eighteen (18) unpatented mineral claims located along the southwest flank of Sidewinder Mountain, in the Silver Mountain Mining District, 15 miles east-northeast of Victorville, California, USA.

Pursuant to the "Economic and Geological Potential Report" prepared by Donald G. Strachan, Economic Geologist M.Sc. CPG, in January 2004, the La Dama de Oro workings were known as the Mojave Girl from 1892 until 1967. All of the properties were consolidated by the current vendor in 1968 and privately held. Other workings on the Property continue to be known as the Mojave Boy and the Tarantula.

Ore taken from these three mines between 1934 and 1941 was trucked to the Burton Mill in Mojave District, Kern County, California. During this period the mines composing the La Dama de Oro shipped 570 tons of ore to the mill which produced 480.83 oz of gold and 624 oz of silver with an average annual grade over the seven years of 0.84 oz per ton gold and 1.30 oz. per ton silver.

Mr. Strachan states in his report, "Underground workings at the La Dama de Oro Mine have penetrated the western margin of a 4.5 foot-thick quartz vein lens. The extent of hanging wall alteration above this lens indicates it may be projected a minimum of 400 feet along strike and 1,000 feet down dip. Past production records indicate a minimum average ore grade of 0.50 opt Au. If 50% of the projected lens at the La Dama de Oro Mine is ore grade, a conservative minimum geologic potential of 36,000 ounces gold contained in 76,000 tons is available."

Mr. Strachan further states, "At least three additional quartz lenses with similar gold potential are projected along the 6,000-foot east-southeast strike of the La Dama de Oro fault-vein system. This premise is supported by the extensional-oblique genesis for this second-order Helendale Fault structure, by known vein occurrences, and by three additional zones of apparent hanging wall hydrothermal alteration. In my opinion, assuming three additional lenses of mineable widths similar to the original La Dama de Oro lens, conservative minimum geologic potential of the La Dama de Oro mine property is 288,000 tons of ore containing 144,000 ounces of gold."