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Lisbon Valley Copper Mine: Utah, United States –

In November 2007, as a result of a comprehensive management evaluation of operations at the Lisbon Valley mine, the Company decided to suspend mining and crushing activities and convert the Lisbon Valley mine to a leach only operation. The evaluation included various long term mining plans considering the existing ore to waste stripping ratio requirements and third quarter 2007 changes to pit wall stability at Lisbon Valley. The Company also evaluated the cost and benefits of contract mining arrangements and the availability and cost of obtaining additional mining equipment. The evaluation of other operating costs included recent increases to sulfuric acid prices, availability and costs of additions to the work force in a very tight local labor market and continual problems experienced since inception with the mine’s material handling systems. In addition, the Company evaluated the results of recent production enhancements, long term copper price projections and its existing forward sales positions.

The Company expects normal operations to continue until all exposed ore is mined, currently estimated to be at the end of January 2008. In connection with the decision to convert to leach only, the Company notified approximately 100 employees, including the entire mining and crushing departments, that their positions would be eliminated at or soon after the end of January 2008.

As a result of continued production difficulties and the resultant conversion to leach only, the Company assessed the estimated recoverability of the Lisbon Valley assets and recorded an asset impairment charge as of September 30, 2007.

Leaching of ore on the leach pad is expected to continue as long as it remains economical, depending on recovery rates, market copper prices and operating costs, including the successful re-negotiation of the terms of material contracts. At present, leaching is expected to continue until June 2010 and is anticipated to recover some 37 million pounds of cathode copper. Additional material asset impairments may be required in subsequent periods.

Lower Lisbon Valley Exploration –
- Stateline Drill Hole Locations
- Flying Diamond-Stateline Area Drill Hole Location Map
- Stateline Area Location Map

Geology –
- Lisbon Valley Sediment-Hosted Copper Deposits and Paradox Basin Fluids (2Mb)