The business of exploration for and mining minerals involves a high degree of risk. Unusual or unexpected
formations, formation pressures, fires, power outages, labour disruptions, flooding, cave-ins, landslides and the
inability to obtain suitable adequate machinery, equipment or labour are other risks involved in the operation of mines
and the conduct of exploration programs. The Company has relied on and may continue to rely upon consultants
and others for exploration and development expertise. Substantial expenditures are required to establish ore
reserves through drilling, to develop metallurgical processes to extract the metal from the ore and, in the case of new
properties, to develop the mining and processing facilities and infrastructure at any site chosen for mining. Although
substantial benefits may be derived from the discovery of a major mineral deposit, no assurance can be given that
minerals will be discovered in sufficient quantities to justify commercial operations or that funds required for
development can be obtained on a timely basis. The economics of developing gold and other mineral properties is
affected by many factors including the cost of operations, variations in the grade of ore mined, fluctuations in metal
markets, costs of processing equipment and such other factors as government regulations, including regulations
relating to royalties, allowable production, importing and exporting of minerals and environmental protection.