CEO Q & A - Aug 24, 2010
Tuesday, August 24 2010 15:32
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Question:  Can we expect financing news before Labor Day? Is LODE planning on moving to NASDAQ or AMEX?

Answer:  The first question, not surprisingly, is our most frequently asked question.  It is also the question that we are most limited in answering until we finalize the transactions.   We can, however, acknowledge that the ongoing efforts to recapitalize our balance sheet have been extremely productive. As a reminder, the Board has approved a five step strategic plan designed to restructure and recapitalize the Company, accelerate mine development and production and continue exploration.  The principal features of the plan encompass a recapitalization and balance sheet restructuring that included a management reorganization, a now successfully implemented reverse stock split, a debt-for-equity exchange, a land transaction and a new capital raise to fund gold mine operations, exploration and development.  We are on track for meeting all of these objectives, including the raising of new equity capital.  The timing depends on synchronizing these activities and we will announce any salient news when the transactions are completed. Lastly, while our bridge financing allows for the continuation of most production project tasks, including mine planning and all metallurgical testing activities critical for finalizing production plans, certain capital-sensitive tasks require additional funding.  If our capital raising activities delay past September, which we do not anticipate, then production start up would be delayed accordingly.

The second part of the question was effectively answered in my August 3, 2010, blog.  I have republished it below for convenience.

Answer:  As part of our planned restructuring and recapitalization, it is fully anticipated that we will commit to listing on a nationally recognized exchange.  There are various trading markets in both the U.S. and Canada that would welcome Comstock Mining Inc., (LODE) on their exchange, when compliant with their criteria.  Although we are fully compliant with all public disclosure and reporting requirements, each exchange has various other prerequisite listing criteria that we must comply with (for example, a minimum share price or certain board configuration, technical reviews, etc.).

There are also administrative and regulatory review processes (that can be iterative) that we must also undertake before acceptance on a new exchange.  We have reviewed the criteria and believe that we can upgrade our listing within nine months of raising our new equity capital.  In some instances, it could take more time. In the interim, we are implementing the positive governance and process changes that we believe all companies should hold themselves to - that is, the highest disclosure, communications and governance standards, regardless of regulatory oversight.

As part of this process, we will soon begin posting updated corporate governance documents, such as Board and Committee Charters and a revised Code of Conduct and Business Ethics. We understand that a national listing and these corporate governance processes provide higher confidence and possibly better liquidity for our investors and hope to achieve those listings as soon in 2011 as practical.

Kindest regards,

Corrado De Gasperis
President and CEO