During the three years preceding Elcora's (TSX-V: ERA acquisition the Sakura mine was substantially refurbished and is currently operating on one shift per day producing one to two tonnes of high quality graphite per shift aggregating approximately 20 tonnes per month at average at an average cost of US$136 per tonne of graphite. However, there is no established resource nor is there any known body of commercial ore on the property, and no estimates of future production capability or the economics of any extraction activity can be made. (See cautionary notes below)

Elcora's near-term objective is to increase the daily production by adding more new equipment and, to the extent graphite mineralization is visible and accessible for extraction, increasing the number of total shifts and man hours to increase total production.

Elcora is presently conducting laboratory tests on the graphite from the Sakura mine to determine optimum refining methods, and has begun designing the refining circuit for a modular, scalable mill capable of refining the graphite extracted from the Sakura mine from its present 94-99% C purity to 99% C purity at a capacity of approximately 2,500 tonnes per year. Given the high quality of the graphite mineralization being extracted from the Sakura mine, management estimates that the capital expenditure for the construction and equipping of such a mill would be circa US$700,000.

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