President's Email Updates

 Kye Abraham
 President & Chairman
        The LKA-Kinross Deal. Golden Wonder Exploration Shifts Into Higher Gear. 

July 13, 2015

With the financial muscle and technical expertise of the world's 7th largest gold producer joining our hunt for the next big "find" at the Golden Wonder, our exploration program has shifted into a whole new gear. Until now, we've focused underground drilling and exploratory mining on a limited target zone of high-grade veins and stringers in fairly close proximity to our previous "find"...the first 133,000 ounce area representing less than 10% of our property. We're convinced, as are many smart geologists, that this type of gold deposit quite likely hosts multiple ore shoots....probably of very high grade. So far, our search has been constrained by cash flow from exploratory mining which determines just how far/fast we get a look at the wider area comprising the Uncompahgre Caldera. That's all about to change. Here's the story;

When members of the Kinross Gold USA executive team visited the property last fall, I was intrigued to learn that Kinross was beginning to turn its exploration focus away from the typical high-cost, low-grade, (a.k.a. low margin) projects and taking a greater interest in higher-grade, lower volume (tonnage) opportunities. Recognizing that
 big gold deposits of substantial grade are becoming increasingly hard to come by, the shift in strategy toward smaller, higher-grade and less expensive projects seems almost inevitable. With its small environmental footprint and exceptionally high ore grades, the Golden Wonder fills this bill perfectly.

In the new exploration and JV option arrangement with Kinross, the objective is to focus Kinross efforts and resources 
on the largely unexplored portion of the property while we continue exploration in the "carve-out" expanded area around our current workings. If THEY discover another high-grade ore shoot, or multiple shoots, measuring 50,000 ounces or more, WE'LL have the opportunity to evaluate the discovery and, if WE like it, reimburse Kinross 40.25% of their exploration expenses in exchange for a 35% joint venture interest. If Kinross turns up less than 50,000 ounces over the next 5 years, THEY walk and WE keep it to ourselves. In the meantime, if LKA makes any discoveries within the carve-out area during the same time period, WE keep it all. 

From the LKA perspective, this is exactly the way to get a good look at the wider area comprising the Uncompahgre Caldera without spending millions of our own money and diluting our shareholders....with one of the best and biggest gold producers in the world.       

As always, you're welcome to contact me directly with any questions or comments:

Mr. Abraham's views and opinions may not reflect those of Kinross, regulatory authorities, or other gold industry members. His comments contain no material non-public information. This message is intended to provide investors and shareholders with management's views and opinions of current operations, objectives, and industry conditions and may contain certain forward-looking statements. For more complete assessment of project and investor risk readers are encouraged to read the Company's most recent public filings with the Securities & Exchange Commission. Mr. Abraham's statements, projections, and opinions expressed in this message are made pursuant to the "safe harbor'" provisions of the Private Securities Litigation Reform Act of 1995 and the Bespeaks Caution Doctrine.
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