M-Pit Reserves Tons Gold Silver Lead Zinc Gold Gold (opt) (opt) (%) (%) Ounces Equivalent OuncesProven 29,336,000 0.0130 .215 .159 .464 369,915 707,399Probable 10,949,000 0.0120 .215 .153 .408 136,005 253,834Proven & 40,285,000 505,920 961,233 ProbableM-Pit Zinc and lead Concentrates: M-Pit Zinc Concentrate Lead Concentrate Annual Projected Production ~46,000 tons ~16,000 tons Contained Zinc 52-56% 8-11% Contained Lead 1-2% 50-55% Contained Gold 0.1-0.3 oz/ton 2.0-3.5 oz/ton Contained Silver 5-20 oz/ton 20-50 oz/ton Contained Copper 1-1.5% 0.5-1% Contained Iron 6-8% 7-11% Impurities Very Low Very Low
Long-Term Growth Strategy: ESRI plans to grow aggressively within it capital funding capabilities utilizing its current asset profile, knowledge of Montana's precious metals landscape, and existing infrastructure. EGI and MTMI both have exploration potential outside of their currently defined resources. As further resources are proven, the amount of production and life of mine are expected to increase. Diamond Hill has been extensively mined, but surrounding drill results suggest additional mineralized structures. Diamond Hill can provide higher margin ore to process through the Montana Tunnels mill facility. ESRI has the capability to acquire and develop nearby projects in Montana that have already been identified through management's local knowledge and experience over the past 15 years. The milling facilities have excess capacity to process additional ore discovered at ESRI's current projects or deposits acquired nearby. ESRI's long term goal is to be a major gold producer with annual production of 500,000 ounces of gold and/or gold equivalents. There can be no assurances, however, that ESRI will achieve these goals.
•YEAR 1: Production 55,000 oz. Deposits mined - Golden Dream Mine. Strategy - Begin operations at the Golden Dream Mine deposit.
•YEAR 2: Production 100,000 oz. Deposits mined - Golden Dream Mine, Montana Tunnels Mine. Strategy - Full production at Golden Dream Mine and start up Montana Tunnels Mine.
•YEAR 3: Production 150,000 oz. Deposits mined - Golden Dream Mine, Montana Tunnels Mine. Strategy - Full production at Golden Dream Mine and Montana Tunnels Mine.
•YEAR 4: Production 250,000 oz. Deposits mined - Golden Dream Mine, Montana Tunnels Mine, East Butte. Strategy - Convert already identified resources at current projects into mineable reserves. Begin mining the East Butte deposit.
•YEAR 5: Production 325,000 oz. Deposits mined - Golden Dream Mine, Montana Tunnels Mine, East Butte, Diamond Hill. Strategy - Begin sending ore from Diamond Hill deposit to Montana Tunnels mill. Identify and acquire nearby deposits.
•YEAR 6: Production 500,000 oz. Deposits mined - Golden Dream Mine, Montana Tunnels Mine, East Butte, Diamond Hill, Golden Hill. Strategy - Full production on all projects. Maximize capacity of Montana Tunnels mill with ore from nearby deposits.