Dear shareholder,

Thank you for your inquiry. The La Yesca project is somewhat isolated and when operational issues like bulldozer breakdowns occur in Mexico as have been experienced can adversely affect timelines. Repairs that we are accustomed to taking days in Canada can take weeks in an isolated area of Mexico. Some of the operational issues concerning the new tailings containment pond that have occurred in the last 8 weeks are mechanical issues with the bulldozer itself, operator injury, Christmas down time, re-assignment time to moving and sampling of the existing tailings pile for production planning purposes, etc.

The bulldozer is now back on the assignment of creating the new tailings dam. The material to excavate to create the tailings pond has been more difficult than anticipated but progress towards completion is made every day.

Regards,

AGORACOM Investor Relations