UC Resources to Prepare for Hard Rock Mining at its Xora Concession

UC Resources reports that mill operations at the Company La Yesca site have been closed during the Christmas holiday season and will be kept on temporary hold in a state of care and maintenance.

In the new calendar year the Company will prepare for Hard Rock mining at its Xora Concession. With reducing silver prices and the grade that exists within the tailings on site, it has been determined that a concentration on the higher grade material is the best choice for Company profitability. The Company cannot continue to consistently lose capital though arduous efforts in an attempt to get mill operations running effectively, using the existing feed at the La Yesca location. The Company has not been able to run the mill at La Yesca profitably and with poor precious metal market conditions, depressed gold and silver pricing and lower recoveries from the tailings themselves, Company focus has shifted to the higher grade hard rock material.

The Company is currently negotiating on a debt facility which would allow hard rock mining to commence on site. The Company may also pursue joint ventures to obtain hard rock mining expertise and is exploring all other options with its other properties. The Company will also look at additional financing choices and Company structure as it continues in the upcoming year. In order for the Company to operate effectively it will require additional financings this upcoming year.