The Shafter Project is fully permitted, with all permits in good standing. The Shafter Project includes a processing facility and considerable underground workings, along with a shaft and hoist access to the un-mined Gold Fields mineralized zones. Recently, a modified discharge permit was granted by the Texas Commission on Environmental Quality that allows the Company to de-water the underground workings of the Shafter Project and discharge the water or sell it to a third party for industrial uses.

In light of the recent increase in silver prices the Company is evaluating its options with regard to the Shafter Project and potential strategic transactions. Some of these options include the completion of a Preliminary Economic Assessment and a drill campaign with the goal of converting Inferred Resources to Indicated Resources (as such terms are defined in NI 43-101 - Standards of Disclosure for Mineral Projects), which will then result in a higher resource confidence level and potentially lead to a life-of-mine plan. The Company has also received enquiries from third-parties seeking a joint venture at Shafter or a possible merger or business combination involving the Company; discussions with such parties remain ongoing. The management and the Board of Directors of the Company are considering all available options. The Shafter Project is leveraged to the price of silver and we will continue to assess our options in the context of the currently-improving silver price," said Kevin Drover, President and CEO of the Company.