January 23, 2006
Dear Shareholders,
Since January 2005 the Company has successfully attained a number of goals it set out to demonstrate value and progress for its shareholders.
We have moved from an NEX listing to Tier 2 TSX Venture in May, a major step in company status that affects everything from financing to everyday operations.
We re-negotiated a favourable agreement for the Swamp Point North Gravel Prospect and concluded two financings for a total of $590,000.
We have successfully concluded a number of tests on a 4 ton bulk sample by Levelton Consultants Ltd. to evaluate the aggregate material and found that the requirements for A.S.T.M. (American Society for Testing and Material) and C.S.A. (Canadian Standards Association) have all been met. A simulated crush test shows that the material meets the requirements for C1 & C2 concrete for the construction industry.
The seismic survey program by Associated Mining Consultants Ltd. confirmed a large sand and gravel deposit in excess of 100 million tons.*
A preliminary assessment of a loadout facility indicates that access and capital costs are very favourable and economically viable.
With all these positive recommendations and consultants due diligence the company will continue to develop this multi-million dollar resource to feasibility this year.
We will require further approvals and necessary permitting as well as financing to achieve our goal in the coming year.
The Company wishes to thank all of our shareholders for their past and continued support in bringing this valuable project to fruition.
ON BEHALF OF THE BOARD
Jake Bottay, President/Director
*Clarification
In the January 23, 2006 letter to shareholders we stated that the A.M.C.L. (Associated Mining) seismic report confirmed a Sand and Gravel deposit in excess of 100 million tons.
Upon review the Company wishes to retract this claim, as it was an erroneous interpretation of the report. Until conclusive measurements of the reserve have been made and a 43-101 report has been filed the Company will not make any such claims.
The Company wishes to apologize, as this was not meant to mislead shareholders
or potential investors.