U.S. REPORT NEWS IN BRIEF Golden Sitka to sell Chichagof mine

Based on a recent letter of intent agreement, a private Alaskan company was granted an exclusive option to buy the Chichagof property and associated mining inventory from current owner, Golden Sitka Resources (VSE). The Chichagof mine is a former gold producer in the Alaskan Panhandle which operated from 1906 to 1942 and produced 660,000 oz. gold from ore with an average head grade of 1.2 oz. gold per ton. The private company, Tebenkof Bay Mining, acquired the option to purchase all of the shares in Golden Sitka’s subsidiary, Sitka Gold, which holds the Chichagof property and an inventory of mining equipment and supplies. Tebenkof management is reported to be planning to begin production from the Big Croppings zone of the Chichagof mine on a direct shipping basis. The agreement is still subject to regulatory approval, but upon execution of the option, Tebenkof will pay Golden Sitka US$45,000 for a 9-month option to purchase the shares for US$2 million plus interest. Tebenkof also agreed to pay Golden Sitka a 10% net profits royalty from the area known as Big Croppings after recovering 115% of all preproduction costs. A 15% net profits royalty will be paid to Golden Sitka (after recovery of 115% of preproduction costs) from any other mining claim on the property.