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We used an average gold price of $483 per ounce for our model, which is the average dating three years back from December 31, 2006.

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Our model uses a $0.85 per litre price for diesel fuel, which is currently running at $0.80 per litre. Our mine operation is self-contained and runs on generators which is currently our only source of power.

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We have contracted out the earth-moving and hauling operation.

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Our employee wages and benefits totalled $36,671.95 for the month of July 2007, Our model assumes a $50,000.00 monthly average for wages and benefits. The difference between the actual employee wages and benefits and our model provides for an ample allowance for salary increases. It should be noted that the Ghana currency (cedis) has been very stable in relation to the US dollar. When I started going to Ghana in 2002, the exchange rate was US$1.00 converted to 9,000 cedis. Currently the exchange rate for US$1.00 is 9,250 cedis. The Ghana currency has had a slight appreciation to the US dollar over the last 5 years.

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Our model indicates gold sales expenses of $262,543. Gold sales expenses are currently running at 3.5% of net gold sales, as we are selling our gold locally in Ghana. This expense should be reduced significantly to approximately $50,000.00 per month once we are able to export our gold. This will result in a monthly savings of approximately $212,543. We have made an application to the Ghanaian government authorities to obtain their permission to export our gold.

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Government royalties are fixed at 3% of net gold sales, throughout the life of the mine.

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The plant will need to be moved twice during the life of the mine to reduce hauling costs. This will require 2 months of downtime at an estimated hauling cost of $200,000 for each move. In our model, the plant will be moved at the start of year 8 and at the start of year 12.