We have been very busy preparing your Mexico gold mine for production. Personnel working at Lluvia de Oro have been diligently working since the beginning of July with new construction in the area of leach pad SW-1 and SW-2, getting our laboratory back into production, and preparing the old leach pad for new ore.

Preparation of the land surface for the new SW-1 and SW-2 leach pad is well underway. The process includes a complex interaction of several groups with specific tasks, such as design work, excavation and stockpile of overburden, in-fill of low areas with suitable fill, storm water diversion design, materials testing and density determinations, construction management, QA/QC, and adherence to environmental concerns and permit requirements. Other specialized construction activities will begin when the pad area is prepared, and different mix of professional groups will become involved in completion of the leach pads.

Construction managers meetings are held weekly to coordinate the various activities taking place at Lluvia. Knight-Piesold Consulting Engineers from Tucson, Arizona prepares the design criteria and engineering parameters for the construction team, and Geo-Quality Mexico, SA de CV implements the design criteria and sequences the work in conjunction with MCM mine management.

In conjunction with our mining activities, Minera Columbia de Mexico, SA de CV, the Mexico subsidiary of NWM Mining Corporation, has a crew working on recovery and re-planting of cactus from the area of our new construction activity.

Some people doubted we could do it, but our first and second drill-load-blast operation took place last week and our third will occur about the time you read this today. With this work, we are constructing new haul ramps in the southwest part of the Creston Pit so we can commence mining of new ore there. The northeast end of the Creston Pit is being prepared today for our stage-two ore excavation plan. On the NWM web site www.nwmcorp.ca , we have posted a short video of the first blast of rock in the Creston Pit. The blast involved 129 bore holes, resulting in good fragmentation and minimal fly-rock.

On the exploration side, the exploration crew continues to drill in the region of the Southeast Lobe. This work is dedicated to defining new mineralization for our mining group and exploring areas that have not been previously identified. We will conclude the wide-spaced core drilling in this area in September, with follow-up by additional reverse-circulation drilling. More news on these events will be released soon.