Hyrcoft General Description
The Hycroft mine is currently an open pit, heap leach mining operations, extracting and processing oxide mineralization. We have begun implementing an accelerated oxide mine plan designed to essentially triple the 2010 mining rate over the next two years utilizing larger capacity mining equipment and increasing the overall mining fleet. The resulting gold production is expected to nearly triple by 2013. In 2010, the mine placed into production the first few pieces of the larger mining fleet, including three 320-ton haul trucks and a 37-yd3 hydraulic shovel. In addition, a semi-mobile crushing unit was put into operation in the third quarter of 2010. The mine will continue to mobilize the larger haul trucks and shovels as they arrive on site and are assembled.

The Company issued a positive scoping study in April 2010 detailing a mining and milling scenario for the higher grade oxide and sulfide mineralization at Hycroft, which was subsequently followed up in August 2010 with an updated study. The results of the study are summarized in a press release dated September 8, 2010. The study indicates that mining of the large sulfide resource can be economically achieved via large-scale, open pit mining methods with average annual production of 610,000 ounces of gold and 27.0 million ounces of silver. Based on the positive results of this study, the Company is proceeding with an initial feasibility study, which it expects to issue in the third quarter of 2011.