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Gold/Mining/Energy : Columbia River Resources - CRVV on OTC NASDAQ -- Ignore unavailable to you. Want to Upgrade?

To: javajake who wrote (109)	1/10/2000 3:32:00 PM
From: CIMA	Read Replies (1) \| Respond to of 280

Just got this in my E-mail: CORPORATE REVIEW January 10, 2000 To our valued shareholders To say that 1999, and the last half of the previous decade for that matter, was a difficult period for resource companies, is truly an understatement. Unprecedented highs on major indices in general and in technology stocks in particular, saw some sectors of the market take on a life all their own, trading at astonishing multiples that clearly placed the resource sector in the back seat. We also witnessed a dramatic drop in gold prices. This was primarily due to Central Bank selling and forward sales of future gold production that affected the precious metals industry on a global scale. The downturn in gold prices that started this disaster forced some companies to review their mandates and shift into other enterprises. For others, it meant consolidation or cutbacks in an atmosphere of a complete lack of investor interest. For those of us who believe in cyclical change and remain dedicated to the industry, I believe our patience will be rewarded in time. Columbia River was definitely affected by all this, but it was not all negative. The downturn provided us with opportunities that would not normally be afforded to a small exploration Company such as Columbia River. Through strategic corporate alliances and the combined support of you and the Board of Directors, I believe that our Company has entered the millennium with a very promising future. It is with this, the mark of a new era, that I am pleased to deliver the following update. Diversification During 1999, the Company recognized the need for diversification to survive. It was therefore decided to make the shift from a precious metals focus to include industrial minerals, specifically that of Tantalum. Tantalum is a strategic metal that is unfamiliar to most people and yet has everyday applications. The metal is used in everything from the manufacture of cellular phones to the high tech world of microprocessors. More on this topic is discussed later. As you are well aware, many of these industries have experienced phenomenal growth in recent years, while Tantalum's other current and potential applications continue to grow and expand at a steady pace. This is growth that both the industry and the company believes will continue indefinitely. In addition, it also became quite apparent to us that it was necessary to pioneer the company's Tantalum and Gold operations in countries that offer vast potential with little or no competition. The African countries of Nigeria and Ghana respectively, offered both of these opportunities. Nigeria Through its affiliation with CME & Company, a geological consulting firm with many years of experience and success in Africa, we identified Nigeria as our primary target to locate and acquire projects. Having undergone a transfer of power from a dictatorship to democratic rule in very recent times, the new government expressed a genuine desire to rebuild its mining industry. While Nigeria's oil industry has continued to flourish over the past 40 years creating massive wealth for major oil companies, her vast solid mineral wealth has been largely overlooked and still remains virtually unexplored. After World War II, tin became the focus of mining activity in Nigeria with little attention paid to gold. Following the collapse of the tin price in the 1980's, exploration in Nigeria collapsed as well. Although gold occurrences were reported in the economic sections of published Geological Survey Bulletins, little exploration or mining of gold has been carried out since 1943. Also, in 1999, the government introduced a new and attractive Mining Code and began turning this industry into a priority. To date the Company's relationship with the government's Solid Minerals Ministry remains strong and growing. Additional corporate plans for 2000 include listing the company's shares for trading on the second largest stock exchange in Africa, where we will be the only mining company whose shares are listed there. The Company is reviewing a number of promising tantalite areas, which have been visited during regional reconnaissance studies. This includes 25 former mining sites and over 35 pegmatite occurrences. In these areas, there are a number of sites that show considerable promise for significant occurrences of Tantalum and related rare earth mineralization. All sites represent very attractive targets for future detailed exploration and have the potential to become the location of world-class deposits of Tantalum and other rare metals. Tantalum Tantalum is a rare, strategic metal that sells for $33 US to $35 US per pound in the concentrate form. Tantalum is used for electronic components, capacitors, ship and aircraft controls, weapon systems and cellular telephones. Additionally, Tantalum is being used increasingly in superalloys. More recently, Tantalum chip capacitors are being used in medical technology that improves the control of epileptic seizures. Tantalum was once considered a contaminant in the production of tin, where Nigeria was at one time one of the world's largest suppliers of tin. There is a ready market for Tantalum and its consumption is increasing at a rate of 4-5% per year. As mentioned, Tantalum is sold as a concentrate and can be recovered by relatively inexpensive gravity separation methods. Ayaco Project In October 1999, the Company acquired an option to purchase a 100% interest (less 10% payable to the Government of Ghana and 10% to Ayaco) in the Tanoso Reconnaissance License located on the northern end of the Yamfo Gold Belt in Ghana, West Africa. The Tanoso Reconnaissance License covers an area of 306.99 sq. kilometers and is located in both the Brong Ahafo and Ashanti Regions of Ghana. The license area is 380 kilometers northwest of Accra and 20 kilometers east of Sunyam. Initial exploration within the Tanoso License has defined a plus 100ppb gold-in-soil anomaly 2.8 km long and up to 300 meters wide. Additional infill geochemistry along 100m spaced lines with soil sampling at 25m intervals has confirmed and enhanced further these results. The depth continuity of the anomaly was verified through the excavation of ten 2-meter square pits into saprolite, which vary from 1.2 to 4.3 meters deep. These pits verify a very deep weathering profile and that the gold is associated with quartz veining with pit wall samples returning up to 8.0 g/t. Trenching is underway to further establish the controls on mineralization. Due to the success of this initial exploration, the Company has exercised its option to acquire the property and plans a drill program for early 2000. We believe that we are on the verge of a new gold discovery in this highly prolific area. We have also entered into discussions with several companies operating in the area that have expressed an interest in the Project. Other opportunities As the year progresses, the Company is confident that new and exciting opportunities will surface in both Nigeria and Ghana in the areas of Gold and Tantalum exploration and development. The Company expects that it will continue to enjoy the benefits of operating in Africa and that, with a turn in the resource sector, the company's growth will be significant. In closing, I would like to take this opportunity to wish you all the very best that 2000 has to offer and to thank you for your patience and devotion to the Company during these trying times. I hope this update gives you some insight into what the future holds for Columbia River. As always, we will continue to work diligently on your behalf to build a Company we will all be proud to be a part of, both now and in the future. ON BEHALF OF COLUMBIA RIVER RESOURCES INC. Robert R. Ferguson President