In August, we announced that, as a result of lower than expected gold production at the Black Fox mine,

we had triggered a “review event” under the $70,000,000 project finance facility that we entered into in

February 2009 (the “Project Facility”) with the Banks and that we were engaged in constructive

discussions with the Banks in order to resolve the issues associated therewith. We are pleased to

announce that the Banks have agreed, subject to the condition that we provide a new resource model and

life of mine plan to the Banks prior to November 15, 2009, to defer the first scheduled repayment of

$9,300,000 due on September 30, 2009 (the “Deferred Payment”) under the Project Facility and the

requirement to fund the associated Debt Service Reserve Account also due on September 30, 2009, which,

in accordance with the terms of the Project Facility, requires a reserve amount equal to, at all times after

initial funding, the greater of $5,000,000 or the aggregate repayment amount due on the next repayment

date (the “Deferred Funding Obligation”). This deferral will enable the Banks and Apollo to complete an

ongoing technical review of the Black Fox project with the objective of rescheduling the quarterly

repayment installments under the Project Facility. As a result of the deferral, the Deferred Payment and

the Deferred Funding Obligation now must be satisfied on the earlier to occur of (i) the completion of the

Bank’s technical review process of the Black Fox mine and (ii) December 31, 2009. The Company

expects the technical review to be completed before December 31, 2009. In addition, as part of the

deferral, the Banks agreed to extend the date by which the project completion test under the Project

Facility must be satisfied to March 31, 2010