Golden Wonder Mine Expansion

Encouraged by the most recent eight quarters of gold production totaling 49,897 ozs. (at an average grade of 19.68 ozs . Au per ton) LKA is planning to expand its permitted area to include a new adit, exploratory drift (cross cut) and working pad to be located approximately 1,000 vertical feet below the current sixth level of the Golden Wonder. To date, production from the relatively small area (approximately 320 vertical feet) between the fourth and sixth levels has exceeded 136,400 ozs.

LKA intends to develop a new exploratory drift (cross cut) below the mine's current workings to intersect the productive Golden Wonder vein structure(s) at depth. If successful, this exploratory effort could significantly extend the size and productive capacity of the mine. Assuming permits are obtained, LKA expects this exploration program to cost $5 - $6 million and require approximately 18 months to complete.