| Delaware                                                       | 91-1428250                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

|                                                                                                                      |                                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| Large accelerated filer         [   ]                                                  | Accelerated filed                     [   ] |
| Non-accelerated filer           [   ]Emerging growth company [   ] | Smaller reporting company     [X]                                                                                                |

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| Ave Grade |
|-----------|
|      | Tons | Oz/ton | Gold (Oz) |
| 2009      | 88 | 3.82 | 337 |
| 2010      | 559 | 1.07 | 599 |
| 2011      | 454 | 1.44 | 653 |
| 2012      | 861 | 1.55 | 1,335 |
| 2013      | 732 | 1.13 | 830 |
| 2014      | 439 | 2.10 | 925 |
| 2015      | 118 | 1.95 | 231 |

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| Period                                    | High        | Low         |
|-------------------------------------------|-------------|-------------|
|                                      |        |        |
| January 1, 2016 through March 31, 2016    | $0.38       | $0.16       |
|                                      |        |        |
| April 1, 2016 through June 30, 2016       | $0.53       | $0.24       |
|                                      |        |        |
| July 1, 2016 through September 30, 2016   | $0.41       | $0.24       |
|                                      |        |        |
| October 1, 2016 through December 31, 2016 |  $0.51 |  $0.26 |
|                                      |        |        |
| January 1, 2017 through March 31, 2017    | $0.68       | $0.30       |
|                                      |        |        |
| April 1, 2017 through June 30, 2017       | $0.61       | $0.41       |
|                                      |        |        |
| July 1, 2017 through September 30, 2017   | $0.58       | $0.20       |
|                                      |        |        |
| October 1, 2017 through December 31, 2017 |  $0.30 |  $0.11 |

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| Report of Independent Registered Public Accounting Firm | 17     |
|---------------------------------------------------------|--------|
|                                                    |   |
| Consolidated Balance Sheets                             | 18     |
|                                                    |   |
| Consolidated Statements of Operations                   | 20     |
|                                                    |   |
| Consolidated Statements of Stockholders' Deficit   | 21     |
|                                                    |   |
| Consolidated Statements of Cash Flows                   | 22     |
|                                                    |   |
| Notes to Consolidated Financial Statements              | 23     |

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|                                                            |   | December 31, |     |
|-----------------------------------------------------------------|--------|--------------|----------|
|                                                            |   | 2017         |     |   | 2016 |   |
| CURRENT ASSETS                                                  |   |         |     |   |   |   |
|                                                            |   |         |     |   |   |   |
| Cash                                                            |   | $            | -        |   |   | $ | - |   |
| Restricted cash                                                 |   |         | -        |   |   |   | 1,101 |   |
| Prepaid expense                                                 |   |         | 833      |   |   |   | 625 |   |
|                                                            |   |         |     |   |   |   |   |   |
|     Total Current Assets                    |   |         | 833      |   |   |   | 1,726 |   |
|                                                            |   |         |     |   |   |   |   |   |
| FIXED ASSETS                                                    |   |         |     |   |   |   |   |   |
|                                                            |   |         |     |   |   |   |   |   |
| Land, equipment, mining claims and asset retirement obligations |   |         | 849,140  |   |   |   | 849,140 |   |
| Accumulated depreciation                                        |   |         | (390,252 | ) |   |   | (381,621 | ) |
|                                                            |   |         |     |   |   |   |   |   |
| Total Fixed Assets, Net of Accumulated Depreciation             |   |         | 458,888  |   |   |   | 467,519 |   |
|                                                            |   |         |     |   |   |   |   |   |
| OTHER NON-CURRENT ASSETS                                        |   |         |     |   |   |   |   |   |
|                                                            |   |         |     |   |   |   |   |   |
| Reclamation Bonds                                               |   |         | 100,042  |   |   |   | 100,042 |   |
|                                                            |   |         |     |   |   |   |   |   |
| TOTAL ASSETS                                                    |   | $            | 559,763  |   |   | $ | 569,287 |   |
|                                                            |   |         |     |   |   |   |   |   |

----

|                                                                                                                                                              |   | December 31, |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|
|                                                                                                                                                              |   | 2017         |        |   | 2016 |   |
| CURRENT LIABILITIES                                                                                                                                               |   |         |        |   |   |   |
|                                                                                                                                                              |   |         |        |   |   |   |
| Accounts payable                                                                                                                                                  |   | $            | 92,633      |   |   | $ | 80,668 |   |
| Accounts payable – related party                                                                                                                            |   |         | 23,905      |   |   |   | 40,095 |   |
| Cash overdraft                                                                                                                                                    |   |         | 981         |   |   |   | - |   |
| Note payable – related party                                                                                                                                |   |         | 7,500       |   |   |   | 5,500 |   |
| Wastewater discharge liability                                                                                                                                    |   |         | 99,974      |   |   |   | 75,000 |   |
| Derivative liability                                                                                                                                              |   |         | 341,285     |   |   |   | 659,622 |   |
| Convertible notes payable – related party, net of debt issue costs and debt discount of $209,339 and 0, respectively                                        |   |         | 40,661      |   |   |   | - |   |
| Convertible note payable, net of debt issue costs and debt discount of $41,868 and 0, respectively                                                                |   |         | 8,132       |   |   |   | - |   |
| Note payable                                                                                                                                                      |   |         | 10,000      |   |   |   | 10,000 |   |
| Accrued interest payable                                                                                                                                          |   |         | 38,166      |   |   |   | 7,404 |   |
| Accrued wages and advances payable to officer                                                                                                                     |   |         | 113,257     |   |   |   | 163,257 |   |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
|      Total Current Liabilities                                                                                                           |   |         | 776,494     |   |   |   | 1,041,546 |   |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
| NON-CURRENT LIABILITIES                                                                                                                                           |   |         |        |   |   |   |   |   |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
| Convertible notes payable – related party, net of debt issue costs and debt discount of $328,570 and $247,710, respectively                                 |   |         | 21,430      |   |   |   | 2,290 |   |
| Convertible note payable, net of debt issue costs and debt discount of $139,288 and $145,949, respectively                                                        |   |         | 10,712      |   |   |   | 4,051 |   |
| Asset retirement obligation                                                                                                                                       |   |         | 122,950     |   |   |   | 122,950 |   |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
|       Total Liabilities                                                                                                             |   |         | 931,586     |   |   |   | 1,170,837 |   |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT                                                                                                                                        |   |         |        |   |   |   |   |   |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
| Preferred stock; $0.001 par value, 50,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively                                              |   |         | -           |   |   |   | - |   |
| Common stock; $0.001 par value, 50,000,000 shares authorized, 19,261,717 and 19,165,152 shares issued, 19,261,770 and 19,121,528 shares outstanding, respectively |   |         | 19,262      |   |   |   | 19,165 |   |
| Additional paid-in capital                                                                                                                                        |   |         | 18,020,363  |   |   |   | 17,963,315 |   |
| Treasury stock; 43,624 and 43,624 shares at cost, respectively                                                                                                    |   |         | (86,692     | ) |   |   | (86,692 | ) |
| Accumulated deficit                                                                                                                                               |   |         | (18,324,756 | ) |   |   | (18,497,338 | ) |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
|      Total Stockholders' Deficit                                                                                                    |   |         | (371,823    | ) |   |   | (601,550 | ) |
|                                                                                                                                                              |   |         |        |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                  |   | $            | 559,763     |   |   | $ | 569,287 |   |

----

|                                                           |   | Year Ended   |       |
|----------------------------------------------------------------|--------|--------------|------------|
|                                                           |   | December 31, |       |
|                                                           |   | 2017         |       |   | 2016 |   |
| OPERATING EXPENSES                                             |   |         |       |   |   |   |
| Exploration and related costs                                  |   | $            | 88,036     |   |   | $ | 75,434 |   |
| Professional fees                                              |   |         | 66,382     |   |   |   | 66,303 |   |
| General and administrative                                     |   |         | 116,461    |   |   |   | 123,056 |   |
| Officer salaries and bonus                                     |   |         | 150,000    |   |   |   | 150,000 |   |
|                                                           |   |         |       |   |   |   |   |   |
|      Total Operating Expenses         |   |         | 420,879    |   |   |   | 414,793 |   |
|                                                           |   |         |       |   |   |   |   |   |
| OPERATING LOSS                                                 |   |         | (420,879   | ) |   |   | (414,793 | ) |
|                                                           |   |         |       |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                         |   |         |       |   |   |   |   |   |
|                                                           |   |         |       |   |   |   |   |   |
| Gain (loss) on derivative                                      |   |         | 718,337    |   |   |   | (303,975 | ) |
| Gain on sale of mine claims                                    |   |         | 12,205     |   |   |   | - |   |
| Interest expense, net                                          |   |         | (137,081   | ) |   |   | (34,759 | ) |
|                                                           |   |         |       |   |   |   |   |   |
|      Total Other Income (Expense)     |   |         | 593,461    |   |   |   | (338,734 | ) |
|                                                           |   |         |       |   |   |   |   |   |
| NET INCOME (LOSS)                                              |   | $            | 172,582    |   |   | $ | (753,527 | ) |
|                                                           |   |         |       |   |   |   |   |   |
| BASIC NET INCOME (LOSS) PER COMMON SHARE                       |   | $            | 0.01       |   |   | $ | (0.04 | ) |
|                                                           |   |         |       |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC   |   |         | 19,190,972 |   |   |   | 19,121,528 |   |
|                                                           |   |         |       |   |   |   |   |   |
| DILUTED NET INCOME (LOSS) PER COMMON SHARE                     |   | $            | (0.02      | ) |   | $ | (0.04 | ) |
|                                                           |   |         |       |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED |   |         | 20,790,972 |   |   |   | 19,121,528 |   |
|                                                           |   |         |       |   |   |   |   |   |

----

|                                                  |   |            |   |                                 |   |   |                             |   |   |   |       |   |   |   |   |   |   |   |   |                      |   |   |               |   |   |                               |       |
|-------------------------------------------------------|--------|-----------------|--------|--------------------------------------|--------|--------|----------------------------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------------|--------|--------|--------------------|--------|--------|------------------------------------|------------|
|                                                  |   | Preferred Stock |   |     Common Stock |   |   |    Treasury Stock |   |   |   |       |   |   |   |   |   |   |
|                                                  |   | Shares          |   |                                 | Amount |   |                             | Shares |   |   | Amount     |   |   | Shares |   |   | Amount |   |   | AdditionalPaid-In Capital |   |   | AccumulatedDeficit |   |   | TotalStockholders'Equity (Deficit) |       |
|                                                  |   |            |   |                                 |   |   |                             |   |   |   |       |   |   |   |   |   |   |   |   |                      |   |   |               |   |   |                               |       |
| Balance, December 31, 2015                            |   |            | -      |                                 |   | $      | -                                |   |   |   | 19,165,152 |   |   | $      | 19,165 |   |   |   | 43,624 |                      |   | $      | (86,692            | )      |   | $                                  | 17,963,315 |   |   | $ | (17,743,811 | ) |   | $ | 151,977 |   |
|                                                  |   |            |   |                                 |   |   |                             |   |   |   |       |   |   |   |   |   |   |   |   |                      |   |   |               |   |   |                               |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended December 31, 2016         |   |            | -      |                                 |   |   | -                                |   |   |   | -          |   |   |   | -      |   |   |   | -      |                      |   |   | -                  |   |   |                               | -          |   |   |   | (753,527 | ) |   |   | (753,527 | ) |
|                                                  |   |            |   |                                 |   |   |                             |   |   |   |       |   |   |   |   |   |   |   |   |                      |   |   |               |   |   |                               |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2016                            |   |            | -      |                                 |   |   | -                                |   |   |   | 19,165,152 |   |   |   | 19,165 |   |   |   | 43,624 |                      |   |   | (86,692            | )      |   |                               | 17,963,315 |   |   |   | (18,497,338 | ) |   |   | (601,550 | ) |
|  Common stock issued for related party payable   |   |            | -      |                                 |   |   | -                                |   |   |   | 56,818     |   |   |   | 57     |   |   |   | -      |                      |   |   | -                  |   |   |                               | 36,306     |   |   |   | - |   |   |   | 36,363 |   |
|  Common stock issued for services                |   |            | -      |                                 |   |   | -                                |   |   |   | 18,913     |   |   |   | 19     |   |   |   | -      |                      |   |   | -                  |   |   |                               | 10,763     |   |   |   | - |   |   |   | 10,782 |   |
|  Common stock issued for cash                    |   |            | -      |                                 |   |   | -                                |   |   |   | 20,834     |   |   |   | 21     |   |   |   | -      |                      |   |   | -                  |   |   |                               | 9,979      |   |   |   | - |   |   |   | 10,000 |   |
|  Net income for the year ended December 31, 2017 |   |            | -      |                                 |   |   | -                                |   |   |   | -          |   |   |   | -      |   |   |   | -      |                      |   |   | -                  |   |   |                               | -          |   |   |   | 172,582 |   |   |   | 172,582 |   |
|                                                  |   |            |   |                                 |   |   |                             |   |   |   |       |   |   |   |   |   |   |   |   |                      |   |   |               |   |   |                               |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2017                            |   |            | -      |                                 |   | $      | -                                |   |   |   | 19,261,717 |   |   | $      | 19,262 |   |   |   | 43,624 |                      |   | $      | (86,692            | )      |   | $                                  | 18,020,363 |   |   | $ | (18,324,756 | ) |   | $ | (371,823 | ) |
|                                                  |   |            |   |                                 |   |   |                             |   |   |   |       |   |   |   |   |   |   |   |   |                      |   |   |               |   |   |                               |       |   |   |   |   |   |   |   |   |   |

----

|                                                                  |   | Year Ended   |     |
|-----------------------------------------------------------------------|--------|--------------|----------|
|                                                                  |   | December 31, |     |
|                                                                  |   | 2017         |     |   | 2016 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                  |   |         |     |   |   |   |
| Net income (loss)                                                     |   | $            | 172,582  |   |   | $ | (753,527 | ) |
| Items to reconcile net loss to net cash used in operating activities: |   |         |     |   |   |   |   |   |
| Depreciation expense                                                  |   |         | 8,631    |   |   |   | 22,446 |   |
| Accretion of asset retirement obligation                              |   |         | -        |   |   |   | 5,189 |   |
| Amortization of debt discount and issuance costs                      |   |         | 82,094   |   |   |   | 5,226 |   |
| Loss (gain) on derivative                                             |   |         | (718,337 | ) |   |   | 303,975 |   |
| Common stock issued for expenses                                      |   |         | 21,645   |   |   |   | - |   |
| Write-off of accounts receivable                                      |   |         | -        |   |   |   | 995 |   |
|    Extinguishment of reclamation bond obligation       |   |         | -        |   |   |   | 23,555 |   |
| Changes in operating assets and liabilities                           |   |         |     |   |   |   |   |   |
| Increase in prepaid expenses                                          |   |         | (208     | ) |   |   | (625 | ) |
| (Decrease) increase in accounts payable                               |   |         | (38,061  | ) |   |   | 13,513 |   |
| Increase in accounts payable - related party                          |   |         | 9,310    |   |   |   | 24,786 |   |
| Increase in wastewater discharge liability                            |   |         | 75,000   |   |   |   | - |   |
| Increase in accrued expenses                                     |   |         | 130,762  |   |   |   | 87,500 |   |
|    Net Cash Used in Operating Activities               |   |         | (256,582 | ) |   |   | (266,967 | ) |
|                                                                  |   |         |     |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                  |   |         |     |   |   |   |   |   |
| Change in restricted cash                                             |   |         | 1,101    |   |   |   | 21,399 |   |
| Net Cash Provided by Investing Activities                             |   |         | 1,101    |   |   |   | 21,399 |   |
|                                                                  |   |         |     |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                  |   |         |     |   |   |   |   |   |
| Increase in cash overdraft                                            |   |         | 981      |   |   |   | - |   |
| Common stock issued for cash                                          |   |         | 10,000   |   |   |   | - |   |
| Issuance of convertible notes payable – related party           |   |         | 200,000  |   |   |   | - |   |
| Advance from related party                                            |   |         | 8,600    |   |   |   | 5,500 |   |
| Payments to related party                                             |   |         | (6,600   | ) |   |   | - |   |
| Issuance of convertible note payable                                  |   |         | 50,000   |   |   |   | 100,000 |   |
| Cash paid for debt issuance costs                                     |   |         | (7,500   | ) |   |   | (10,000 | ) |
| Net Cash Provided by Financing Activities                             |   |         | 255,481  |   |   |   | 95,500 |   |
|                                                                  |   |         |     |   |   |   |   |   |
| NET DECREASE IN CASH                                                  |   |         | -        |   |   |   | (150,068 | ) |
| CASH AT BEGINNING OF PERIOD                                           |   |         | -        |   |   |   | 150,068 |   |
| CASH AT END OF PERIOD                                                 |   | $            | -        |   |   | $ | - |   |
|                                                                  |   |         |     |   |   |   |   |   |
| CASH PAID FOR:                                                        |   |         |     |   |   |   |   |   |
| Interest                                                              |   | $            | 23,399   |   |   | $ | 26,248 |   |
| Income Taxes                                                          |   | $            | -        |   |   | $ | - |   |
|                                                                  |   |         |     |   |   |   |   |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES                           |   |         |     |   |   |   |   |   |
| Discount on convertible notes payable                                 |   | $            | 400,000  |   |   | $ | 99,369 |   |
| Convertible debt issued for accrued wages payable                     |   | $            | 150,000  |   |   | $ | - |   |
| Common stock issued for accounts payable, related party               |   | $            | 25,500   |   |   | $ | - |   |
|                                                                  |   |         |     |   |   |   |   |   |

----

|                                                                 |   | 2017   |       |   | 2016   |   |
|----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Basic Net (Loss) Income Per Share:                                   |   |   |       |   |   |   |
| Numerator:                                                           |   |   |       |   |   |   |
| Net income (loss)                                                    |   | $      | 172,582    |   |   | $      | (753,527) |   |
| Denominator:                                                         |   |   |       |   |   |   |   |   |
| Weighted-average common shares outstanding                           |   |   | 19,190,972 |   |   |   | 19,121,528 |   |
|                                                                 |   |   |       |   |   |   |   |   |
| Basic net (loss) income per share                                    |   | $      | 0.01       |   |   | $      | (0.04) |   |
|                                                                 |   |   |       |   |   |   |   |   |
| Diluted Net Loss Per Share:                                          |   |   |       |   |   |   |   |   |
| Numerator:                                                           |   |   |       |   |   |   |   |   |
| Net income (loss)                                                    |   | $      | 172,582    |   |   | $      | (753,527) |   |
| Gain on derivative and interest expense on convertible debt          |   |   | (613,455)  |   |   |   | - |   |
| Diluted net loss                                                     |   | $      | (440,873)  |   |   | $      | (753,527) |   |
| Denominator:                                                         |   |   |       |   |   |   |   |   |
| Weighted-average common shares outstanding                           |   |   | 19,190,972 |   |   |   | 19,121,528 |   |
| Convertible debt                                                     |   |   | 1,600,000  |   |   |   | - |   |
| Weighted average shares used in computing diluted net loss per share |   |   | 20,790,972 |   |   |   | 19,121,528 |   |
|                                                                 |   |   |       |   |   |   |   |   |
| Diluted net loss per share                                           |   | $      | (0.02)     |   |   | $      | (0.04) |   |

----

|                  |   | 2017   |   |   | 2016   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|
| Common stock warrants |   |   | 20,834 |   |   |   | - |   |
| Convertible debt      |   |   | -      |   |   |   | 800,000 |   |

|                                               |   | 2017   |       |   | 2016   |   |
|----------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Deferred tax assets:                               |   |   |       |   |   |   |
|    Net operating loss carry forward |   | $      | 1,152,044  |   |   | $      | 1,704,451 |   |
|    Accrued expenses                 |   |   | 30,379     |   |   |   | 71,010 |   |
| Valuation allowance                                |   |   | (1,182,423 | )      |   |   | (1,775,461 | ) |
| Net deferred tax asset                             |   | $      | -          |   |   | $      | - |   |

|                       |   | 2017   |     |   | 2016   |   |
|----------------------------|--------|--------|----------|--------|--------|--------|
| Pre-tax book income (loss) |   | $      | 59,894   |   |   | $      | (256,199 | ) |
| Derivative (gain) loss     |   |   | (244,235 | )      |   |   | 103,352 |   |
| Debt discount expense      |   |   | 45,355   |   |   |   | 1,777 |   |
| Meals and entertainment    |   |   | 46       |   |   |   | 717 |   |
| Related party accruals     |   |   | (21,825  | )      |   |   | 40,152 |   |
| Accretion                  |   |   | -        |   |   |   | 1,765 |   |
|  Change in tax rate   |   |   | 61,470   |   |   |   | - |   |
| Valuation allowance        |   |   | 99,295   |   |   |   | 108,436 |   |
| Federal Income Tax         |   | $      | -        |   |   | $      | - |   |

----

----

|                             |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total   |   |
|----------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| December 31, 2017:               |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Liabilities:                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Derivative financial instruments |   | $       | -      |   |    | $      | -      |    |   | $      | 341,285 |   |   | $ | 341,285 |   |
|                             |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| December 31, 2016                |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Liabilities:                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Derivative financial instruments |   | $       | -      |   |    | $      | -      |    |   | $      | 659,622 |   |   | $ | 659,622 |   |

----

| Description       | Useful Life            |
|-------------------|------------------------|
|              |                   |
| Land improvements | Estimated life of mine |
| Building          | 15 years               |
| Mining equipment  | 3 – 5 years      |
| Vehicles          | 5 years                |

|                                             |   | December 31, |     |
|--------------------------------------------------|--------|--------------|----------|
|                                             |   | 2017         |     |   | 2016 |   |
| Fixed assets:                                    |   |         |     |   |   |   |
| Land                                             |   | $            | 376,442  |   |   | $ | 376,442 |   |
| Mining claims                                    |   |         | 12,137   |   |   |   | 12,137 |   |
| Land improvements                                |   |         | 128,580  |   |   |   | 128,580 |   |
| Automobile                                       |   |         | 66,923   |   |   |   | 66,923 |   |
| Mining equipment                                 |   |         | 124,976  |   |   |   | 124,976 |   |
| Buildings                                        |   |         | 42,055   |   |   |   | 42,055 |   |
| Unamortized asset retirement obligation (Note 3) |   |         | 98,027   |   |   |   | 98,027 |   |
| Less: Accumulated depreciation                   |   |         | (390,252 | ) |   |   | (381,621 | ) |
|     Total fixed assets       |   | $            | 458,888  |   |   | $ | 467,519 |   |

----

----

| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due September 29, 2018 |   | $      | 125,000  |   |
|-------------------------------------------------------------------------------------------|--------|--------|----------|--------|
| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due September 29, 2018 |   |   | 125,000  |   |
| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due March 15,2021      |   |   | 150,000  |   |
| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due March 17,2021      |   |   | 150,000  |   |
| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due March 31,2021      |   |   | 50,000   |   |
| Total:                                                                                    |   |   | 600,000  |   |
| Less: debt discount and issuance costs                                                    |   |   | (537,909 | )      |
|                                                                                      |   |   | 62,091   |   |
| Less: Current portion                                                                     |   |   | (40,661  | )      |
| Long-term debt, net                                                                       |   | $      | 21,430   |   |

----

| 2018       |   | $      | 250,000 |   |
|------------|--------|--------|---------|--------|
| 2019       |   |   | -       |   |
| 2020       |   |   | -       |   |
| 2021       |   |   | 350,000 |   |
| 2022       |   |   | -       |   |
| Thereafter |   |   | -       |   |
| Total      |   | $      | 600,000 |   |

----

| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due October 20,2018 |   | $      | 50,000   |   |
|----------------------------------------------------------------------------------------|--------|--------|----------|--------|
| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due April 5, 2019   |   |   | 50,000   |   |
| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due April 22, 2019  |   |   | 50,000   |   |
| 7.5% Convertible Debenture, interest at 7.5% per annum, unsecured, due April 20, 2020  |   |   | 50,000   |   |
| Total:                                                                                 |   |   | 200,000  |   |
| Less: debt discount and issuance costs                                                 |   |   | (181,156 | )      |
|                                                                                   |   |   | 18,844   |   |
| Less: Current portion                                                                  |   |   | (8,132   | )      |
| Total long-term debt                                                                   |   | $      | 10,712   |   |

| 2018       |   | $      | 50,000  |   |
|------------|--------|--------|---------|--------|
| 2019       |   |   | 100,000 |   |
| 2020       |   |   | 50,000  |   |
| 2021       |   |   | -       |   |
| 2022       |   |   | -       |   |
| Thereafter |   |   | -       |   |
| Total      |   | $      | 200,000 |   |

|                                 |   |   |     |
|--------------------------------------|--------|--------|----------|
| Balance, December 31, 2015      |   | $      | 256,278  |   |
| Day one loss due to convertible debt |   |   | 33,781   |   |
| Debt discount                        |   |   | 99,369   |   |
| Losses on change in fair value       |   |   | 270,194  |   |
| Balance, December 31, 2016           |   | $      | 659,622  |   |
| Day one loss due to convertible debt |   |   | 209,812  |   |
| Debt discount                        |   |   | 400,000  |   |
| Gains on change in fair value        |   |   | (928,149 | ) |
| Balance, December 31, 2017      |   | $      | 341,285  |   |

----

|                                  | December 31, |   |
|---------------------------------------|--------------|--------|
|                                  | 2017         |   | 2016 |   |
| Day one loss due to convertible debt  |         | $      | (209,812 | ) |   | $ | (33,781 | ) |
| Gain (loss) on change in fair value   |         |   | 928,149 |   |   |   | (270,194 | ) |
| Gain (loss) on derivative liabilities |         | $      | 718,337 |   |   | $ | (303,975 | ) |

----

----

|                       |   | Number of Warrants Outstanding |    |   | Weighted Average Price |   |   | Weighted Average Remaining Contractual Life |   |
|----------------------------|--------|--------------------------------|---------|--------|------------------------|--------|--------|---------------------------------------------|--------|
| Balance, December 31, 2015 |   |                           | 75,000  |   |                   | $      | 1.60   |                                        |   |   | 0.67 |   |
| Granted                    |   |                           | -       |   |                   |   | -      |                                        |   |   | - |   |
| Exercised                  |   |                           | -       |   |                   |   | -      |                                        |   |   | - |   |
| Expired                    |   |                           | (75,000 | )      |                   |   | (1.60  | )                                           |   |   | - |   |
| Balance, December 31, 2016 |   |                           | -       |   |                   |   | -      |                                        |   |   | - |   |
| Granted                    |   |                           | 20,834  |   |                   |   | 0.60   |                                        |   |   | 2.00 |   |
| Exercised                  |   |                           | -       |   |                   |   | -      |                                        |   |   | - |   |
| Expired                    |   |                           | -       |   |                   |   | -      |                                        |   |   | - |   |
| Balance, December 31, 2017 |   |                           | 20,834  |   |                   | $      | 0.60   |                                        |   |   | 1.55 |   |

----

----

| · | The Company lacks appropriate segregation of duties and |
|--------|---------------------------------------------------------|

| · | The Company has an insufficient number of employees responsible for the accounting and financial reporting functions. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

| - | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

| - | provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with U.S. generally accepted accounting principles and that our receipts and expenditures are being made only in accordance with authorization of our management and directors; and, |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.  |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name                  | Positions Held                         | Date of Election or Designation | Date of Termination or Resignation |
|-----------------------|----------------------------------------|---------------------------------|------------------------------------|
| Kye A. Abraham        | PresidentChairman of the BoardDirector | 03/8803/8803/88                 | ***                                |
|  Nanette Abraham | Secretary                              | 1990                            | *                                  |
|                  | DirectorTreasurer                      | 199012/02                       | **                                 |

----

| Name and Principal Position(a)      | Year   (b) | Salary($)  (c) | Bonus($)  (d) | Stock Awards($) (e) | Option Awards($) (f) | TotalEarnings($) (j)      |
|-------------------------------------|---------------------------|--------------------------|-------------------------|--------------------------|---------------------------|--------------------------------|
| Kye Abraham, President, Director    | 12/31/1712/31/1612/31/15  | $138,000$138,000$138,000 | 000                     | 000                 | 000                  | $138,000$138,000$138,000  |
| Nannette Abraham Sec./TreasDirector | 12/31/1712/31/1612/31/15  | $12,000$12,000$12,000    | 000                     | 000                      | 000                       | $12,000$12,000$12,000          |

----

| Title of Class | Name of Beneficial Owner         | Amount and Nature of Beneficial Owner | Percent of Class |
|----------------|----------------------------------|---------------------------------------|------------------|
| Common Stock   | Kye Abraham                      | 6,351,200(1)                          | (3)23%           |
| Common Stock   | Koski Family Limited Partnership |  (2)13,638,393                   | (3)50%           |

| Title of Class | Name and Address of Beneficial Owner | Amount and Nature of Beneficial Owner | Percent of Class |
|----------------|--------------------------------------|---------------------------------------|------------------|
| Common Stock   | Kye Abraham                          | 2,924,302(1)                          | 15.2% (2)        |
| Common Stock   | Nanette Abraham                      | (3)                                   | 15.2% (2)        |

----

----

----

| Fee Category       |   | 2017 |   |   | 2016   |   |
|--------------------|--------|------|--------|--------|--------|--------|
| Audit Fees         |   | $    | 29,000 |   |   | $      | 27,000 |   |
| Audit-related Fees |   | $    | -      |   |   | $      | - |   |
| Tax Fees           |   | $    | -      |   |   | $      | - |   |
| All Other Fees     |   | $    | -      |   |   | $      | - |   |
| Total Fees         |   | $    | 29,000 |   |   | $      | 27,000 |   |

----

| Exhibit Number |  Description (1)                                   |
|----------------|---------------------------------------------------------|
| 3.1            | Certificate of Incorporation (2)                        |
| 3.2            | By-laws  (2)                                       |
| 14             | Code of Conduct (3)                                     |
| 31.1           | 302 Certification of Kye Abraham                        |
| 31.2           | 302 Certification of Nanette Abraham                    |
| 32             | 906 Certification                                       |
| 99             | NASDAQ Rule 4200(a)(15)                                 |
| 101 INS        | XBRL Instance Document*                                 |
| 101 PRE        | XBRL Taxonomy Extension Presentation Linkbase Document* |
| 101 LAB        | XBRL Taxonomy Extension Label Linkbase Document*        |
| 101 DEF        | XBRL Taxonomy Extension Definition Linkbase Document*   |
| 101 CAL        | XBRL Taxonomy Extension Calculation Linkbase Document*  |
| 101 SCH        | XBRL Taxonomy Extension Schema Document*                |

| Date:  | April 17, 2018 |   | By:    | /s/Kye Abraham                                             |
|--------|----------------|--------|--------|------------------------------------------------------------|
|   |           |   |   | Kye Abraham, President, Chairman of the Board and Director |

| Date:  | April 17, 2018 |   | By:    | /s/Kye Abraham                                                                  |
|--------|----------------|--------|--------|---------------------------------------------------------------------------------|
|   |           |   |   | Kye Abraham, Chief Executive Officer and Director                               |
|   |           |   |   |                                                                            |
| Date:  | April 17, 2018 |   | By:    | /s/Nanette Abraham                                                              |
|   |           |   |   | Nanette Abraham, Chief Financial Officer, Chief Accounting Officer and Director |