4.  SALE OF MINING PROPERTIES
       
The Company sold its mining interests in Plumas County, California to
a foreign ecclasiastical sovereignty in exchange for Treasury Bills ("T-Bills") 
having a face value of $2,418,000,000.00, issued by the Dominion of Melchizedek
("DOM"). The T-Bills, payable without interest, mature on May 27, 2005.
The Company has booked the T-Bills at face value. As additional consideration,
DOM has credited to the account of the Company 300,000,000.00 Dominion Dollars
(the official currency of DOM), from which the Company has acquired a 5 year
Certificate of Deposit issued by the DOM state owned and licensed bank, Bank of
Salem. Bank of Salem is not licensed within the United States of America, nor
is it associated with any U.S.A. bank.

       DOM as an ecclasiastical sovereignty has suffered significant adverse
publicity because journalists and others have falsely labeled DOM as a "country"
when in fact DOM has always classified itself as an "ecclasiastical
sovereignty." The major negative publicity is available at the DOM news section
link to its web site at www.melchizedek.com.

      The ability of DOM to pay the T-Bills at maturity is subject to a number
of conditions, such as its acquisition of sufficient foreign capital or the
Plumas mines producing enough revenues to pay off the T-Bills at maturity.
The Company has agreed to put the mines into production on behalf of DOM, and
will be permitted to retain as much as 60% of net revenues from production to
pay down the principal amount of the T-Bills before maturity.

      DOM received title to the mining properties through a corporation
incorporated under the laws of DOM, "The International Monetary Reserve"
("TIMR"), which is qualified to do business in California and Florida,
and which is separately incorporated under the laws of the State of Nevada.
DOM is the controlling shareholder of TIMR, which is not related to the
similarly named "International Monetary Fund," ("IMF"). TIMR shares are quoted
on the offshore internet stock exchange "Dominion Worldwide Stock Exchange"
that is regulated and managed by DOM outside the United States. It may be
necessary for DOM to sell its shares in TIMR to pay off the T-Bills, however
it is unknown if a sufficient market will develope for those shares. In the
alternative, the Company has an option, at any time prior to maturity, to elect
to receive full payment for the T-Bills in the form of Dominion Dollars. The
Company may elect to exercise this option should a strong market emerge for
Dominion Dollars.

      According to DOM there are less than $100,000,000 of its T-Bills issued
to its citizens and third parties prior to those issued to the Company. DOM
has indicated that its reason for acquiring the Plumas mining properties is
based on its plan to float an Internet and printed currency, Dominion Dollars,
in the world market. With the proven reserves at the Plumas property, DOM's
currency can be backed by gold.

      The Company's top officers are citizens and ambassadors-at-large of this
ecclasiastical sovereignty, but DOM owns none of the securities issued by the
Company.