CALDERA

Phase one drilling has commenced. The program included approximately 9,500 feet in 25 holes targeting historic intercepts and high-grade surface rocks on the northwest part of the property.

Results from rock chip sampling were announced. Of 330 samples, 105 contained potentially ore-grade values of >0.34 g/t Au. Four samples contained very high gold grades: 193.5 g/t Au, 63 g/t Au, 58.3 g/t Au and 48.9 g/t Au, the highest rock chip values collected to date on the property. The first of these samples also contained 6370 g/t Ag and the second carried 1510 g/t Ag. These two samples were collected from float material but are believed to have not moved far from a nearby subcrop source. Nearby samples carry from 0.2 to 63 grams of gold along a strike length of 335 meters. The other two high gold grade samples were from narrow (1 foot or less) veins or mineralized breccias, none of which appear to have been drill tested. In addition to these veins, several other mineralized structural zones were recognized (up to at least 500m long and could be up to 25m wide in places), which are either untested by drilling or poorly tested and average 1.4 g/t Au within 15m of the stuctures. The rock chips were collected as part of field work (that included mapping) in the western half of the project area designed to better define basic geology and controls on the previously identified mineralization (the majority of these samples were selected to determine which veins, faults or other structures control the epithermal mineralization). Based on the results of rock chip sampling suggesting a potential high-grade target and the recently acquired data from previous operators (highlights of prior drilling include 3m @ 38 g/t Au and 7.6m @ 8g/t Au in separate holes; with rock chip sampling returned values of up to 37 g/t Au and 847 g/t Ag), a two phase drill program is currently being planned for execution in the spring and summer of 2006 and considerably more field work is planned for the coming months. Forty-five new claims have also been added to the property position.

Some early stage exploration work was performed, forty-five new claims were added to the property position, and data from previous operators was acquired. These data include 77 drill hole summaries, rock chip summaries (193 anomalous rock chips >200 ppb Au), and soil anomaly reports, mostly from the eastern side of the project area.