CEO Q & A - Sep 30, 2010
Thursday, September 30 2010 12:14

Question: When will be the recapitalization be accomplished? Is there a new timeline? I am a believer in the upside and given what you have already provided as resource figures, believe your stock would be a triple, at least - without additional reserves. Is there a new issue? I believe the delay has caused a cap on the stock's price and volume.

Answer: First let me say that I appreciate that when I previously responded to a question about production start up, I commented that I did not expect the capital raising activities to delay past September. I have also previously stated that we cannot set a specific date for those activities to be completed because of the importance of these transactions to our enterprise. I can, however, acknowledge again, that the ongoing efforts to recapitalize our balance sheet, finalize all land transactions and raise new capital have been and continue to be 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. The intention is clearly to emerge with a strong balance sheet and a funded plan. Substantially all of these activities are near completion and we remain 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. We are also positive believers in the vast potential of the Comstock and we appreciate everyone's patience and continuing support throughout these critical initiatives.

Kindest regards,

Corrado De Gasperis
President and CEO