Dear Client:

McClelland Laboratories, Inc. has been conducting metallurgical and environmental testwork for the mining industry world wide since January 1987. We currently have on staff three full time metallurgical, chemical and environmental engineers. Our metallurgical and environmental laboratories are housed in a 12,400 square foot facility.

Capabilities of our laboratories include gravity, flotation, heap leach cyanidation and milling/cyanidation (CIP, CIL, CCD) amenability evaluation for precious metal ore deposits. Our laboratory (MLI) possesses the added capability of conducting those process option evaluations on a pilot scale and detailed testwork necessary to provide design criteria data.

Our laboratories also have the capability to conduct flotation beneficiation evaluations on copper and base metal ores, as well as copper heap leach evaluations. Alternative process option evaluations like biooxidation/cyanidation and thiosulfate leaching are also conducted in our laboratory.

Environmental characterization evaluation capabilities are centered around the two main environmental concerns for mining operations: potential of mine solids to mobilize constituents by contact with meteoric water; and potential of mine solids to produce or neutralize acid in a natural weathering and oxidizing environment. Accepted and/or mandated procedures are used for all environmental characterization tests. Testing protocol, where necessary, is set to site specific conditions for special environmental testing programs. Specialized testing programs, set to site specific conditions, are usually conducted in our laboratory. Our capabilities are summarized in the enclosed metallurgical, consulting and environmental service pages.

We realize that this letter does not fully describe our capabilities and services. Our hope is that this letter adequately introduces us and provides you an idea of how we may assist you. Brief resumés of our professional staff as well as international client lists are also enclosed for your information and reference.

Thank you for taking your valuable time to read this letter. We look forward to opportunities to serve you on your mining projects.