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Mining Claims

CLYDE AND CROWN POINT CLAIMS

In August 2006, Unico announced that its wholly owned Deer Trail Mining Company subsidiary had signed an agreement to acquire the patented Clyde and Crown Point mineral claims, located in the Mount Baldy Mining District in Piute County, Utah for the purpose of conducting mine exploration, evaluation, and mining activities on the leased property. The lease is a 33-acre property is located directly southwest of the Deer Trail mill and processing facility on the Deer Trail Mine property. The Clyde claim was originally staked in the 1880s when silver and gold ore was discovered on the hillside. Shortly thereafter, the Crown Point claim was staked, partially overlapping the Clyde. Under terms of the agreement, Deer Trail Mining Company will hold the leased premises for the purpose of exploring, evaluating and mining all variety of minerals and ores.

Subsequently, Unico announced that exploration plan had been developed for the claims including additional survey and mapping work, improvements to the property, and potentially underground and surface exploratory drilling.

In November 2007, Unico announced that initial geological work had been conducted in the areas of the Clyde and Crown Point mining claims by Dean Misantoni, senior geologist for Deer Trail Mining Company

The report submitted by Mr. Misantoni stated:

"Since August, 2007, initial geologic work has been conducted on the Clyde and Crown Point Mine areas. This includes the review of very limited previous geochemical data and maps of the area, aerial photographic examination, surface reconnaissance mapping and sampling, and Brunton and tape mapping/sampling of accessible underground workings.

As of this date, some 20 samples have been collected and analyzed by ALS Chemex in Vancouver, British Columbia. The initial focus has been on understanding the nature of the deposit(s), establishing the widths of mineralized structures, establishing the geochemical signature of the mineralization as an aid in guiding further exploration at depth, and its relationship to the mining district as a whole.

A mineralized, generally fine-grained hornblende-biotite porphyry of unknown dimensions is exposed on the surface and in underground workings on the property. It crops out over at least 500 feet in an east-west direction in the vicinity of the of the Clyde adits, and extends downhill to the south to near Cottonwood Creek Road. It was not noted in or near the Crown Point Mine. Faulted and mineralized intrusive contacts are exposed, either within steeply dipping clastic rocks, possibly shales of the Triassic Chinle Formation, on the west, or quartzites of the Jurassic Navajo sandstone on the east.

The property lies along several large, regional faults, and the Mesozoic sedimentary rocks are jumbled and rotated to near vertical, probably due to fault rotation, and possibly in part due to the intrusion. The form of the intrusive body appears to be that of a small plug or stock, as opposed to a dike, at the present level of exposure. Hydrothermal alteration varies from moderate propylitization (chlorite, magnetite, calcite) to intense phyllic alteration (clay/sericite) with disseminated pyrite and Fe-oxides. Rocks devoid of alteration are not exposed.

Mineralization consists of veins and mineralized breccias within the intrusion, and extends into the country rocks, which are sometimes altered to hornfels or fine-grained, green calc-silicate assemblages. The strongest zones of mineralization seem to occur along the northwest flank of the intrusion, at the brecciated contact of the intrusion with the enclosing sedimentary rocks, at the junction of at least two faults. Minerals consist of fine-grained pyrite-chalcopyrite galenasphalerite-tetrahedrite-tennantite in white to clear quartz veins and breccias. Other phases (enargite-covellite-chalcocite) have been tentatively identified. The mineralization appears to be unoxidized except for extensive, post-mine copper sulfate staining of fractures in the upper Clyde adit winze.

Although much work remains to be done, the Clyde prospect is definitely anomalous in a suite of elements, including gold (Au), silver (Ag), copper (Cu), lead (Pb), zinc (Zn), molybdenum (Mo), bismuth (Bi), barium (Ba,) and fluorine (F), consistent with the model for the mining district as a whole, and with a subvolcanic porphyry-type environment. The petrology of the intrusive, structural setting, and hydrothermal alteration types also fit the model quite well. The presence of a buried intrusive stock and porphyry system beneath Alunite Ridge has long been hypothesized, and the Clyde prospect (to the south and topographically beneath Alunite Ridge) may represent one instance where the top of such an intrusive system is exposed at the surface. Road access and drilling platforms are present, and are much more logistically sound than historic proposals to drill from platforms high on the mountains to the north."

70 ADDITIONAL MINING CLAIMS

In September 2006 Unico announced that its wholly owned Deer Trail Mining Company subsidiary had signed an agreement to acquire 70 additional mining claims covering 1,500 acres in Piute County Utah for the purpose of conducting exploration, evaluation, and mining activities, including pre-production feasibility studies and underground mining of the present workings.

The mining claims acquired include the following: Golden Chalice, Silver Chalice, New Oraverde, Turquoise, La Phill, J & N, Gold King, T, Blackspot, T & S, Comeback and Johnson. One area of 50 claims is located south of the Deer Trail Mine, and another area of 20 claims is located on the south-facing slope of Beaver Creek Canyon northwest of the Deer Trail property. These claims are all located on United States Department of Agriculture (USDA) Forest Service and/or Bureau of Land Management (BLM) administered land.

Unico issued the following information on the claims:

Geological Area:

The claims cover approximately 1,500 acres along a prevailing northwest to southeast structural and seritically altered trend. This trend includes the Annie Laurie/Sevier Mines to the north and the Deer Trail, Bully Boy, Clyde, Wedge, and Gold Hill mines in the central and southern extensions. The area is covered by Bullion Canyon Volcanics that have been fractured and filled with quartz-carbonate veins, vein quartz and adularia with minor amounts of iron and copper staining. Some areas are highly fractured forming zones of quartz stock work veins.

History/Past Production:

The area bears many similarities to the Gold Mountain area or Annie Laurie Mine mineralization, which produced over 140,000 ounces of gold from quartz-carbonate, quartz and quartz adularia veins. The origin of these veins is derived from ascending hot water springs associated with underlying intrusive masses.

The southern claims were drilled in the 1980s with a series of shallow holes by American Nickel to test the extent of several northwest striking mineralized structures at the contact of the Bullion Canyon Volcanics and the Tushar Fault. The reverse circulation drilling of 24 holes clearly established that quartz veins were highly anomalous in gold. The underlying sediments have not been tested which could contain deposits similar to the Deer Trail deposit at depth and of the Annie Laurie nearer the surface.

On the Golden Chalice claims, the workings include, but are not restricted to, a tunnel and shaft and large pit showing high-grade silver values, as well as many pits and exposures of other gold and silver prospects with some samples measuring in the hundreds of ounces per ton in silver and several ounces per ton in gold. High-grade gold showings also are known to exist on the Turquoise claims, originally named for a widespread copper-stained area in a large porphyry stock.

The north block of claims prospects yielding samples containing as high as 80 to 90 ounces per ton in silver and several ounces in gold have recently been discovered but have not been assessed in detail. Several of the claims have been noted to host significant bodies of fluorite with erratic gold and silver values, plus very significant uranium. Western Nuclear conducted appreciable exploration on these claims in the 1960s but allowed the claims to lapse when the price of uranium collapsed.