The gravity survey was conducted by Magee Geophysical Services, with the assistance of Cranmer Engineering, Sierra Surveying, Inc., and Wright Geophysics.

Among its important findings, the survey shows:

indications of a new previously-unknown channel near the Ruby Adit

indications of terraces at the upstream end of the Cincinnati Channel

the location of the Cincinnati Channel at 3 locations, providing an accurate position of where the channel crosses over the Ruby Adit

the location of the Pilot Channel a short distance northeast of the Lawry Shaft

the location of the Black Channel up to the Lawry Shaft

Pending confirmation by drilling, the survey demonstrates that channels buried at least as deep as 350 feet can be readily detected with gravity, although the exact elevation to the bottom of the channel cannot be determined with this method alone. The application provides a relatively inexpensive method for "prospecting" areas of the Ruby property where past mining or drilling is absent. This new information is being used by our geological team to provide more exact coordinates for drill placement at the various potential mining targets recently identified and immediately accessible within the Ruby Adit.

The Company also reports that the installation of 2,000 feet of new 4" diameter steel pipe to upgrade our compressed air capacity is set for completion today. As previously announced in a Company press release dated March 7, 2014, the installation of this new airline was a crucial step required to prepare and support an effective drilling program, as it was essential to increase our compressed air capacity to run the drill and other equipment without depriving other work areas in the mine of this vital energy source. Following completion of the pipe installation by the end of today, we expect drilling to begin tomorrow.

In the coming days we will confirm that drilling has begun, and we will provide a more in-depth discussion about the drilling targets at that time.

Mr. C. Gary Clifton, P.Geo., is the Company’s independent consulting geologist for the Ruby Gold Project. Mr. Clifton is a Qualified Person as defined by National Instrument 43-101, and has reviewed this press release for technical accuracy.

About The Ruby Gold Project

The Ruby Mine, a/k/a the Ruby Gold Project, is a fully-permitted underground placer and lode mine located near Downieville in Sierra County, California that is known to have produced over 350,000 ounces of gold since the 1850’s, and which is considered to be part of the northern extension of the historic Mother Lode system. The Ruby Property covers approximately 1,755 acres, only a small portion of which has been explored to date.

The property consists of the subsurface mineral rights of two patented claims totaling approximately 435 acres and 30 unpatented claims containing approximately 1,320 acres. The equipment, fixed assets, and infrastructure in place include a 1,000 yard per day placer wash plant, 50-ton per day quartz mill, 6,000 feet of tracked haulage, and related support equipment needed for underground mining operations. The property also features an excellent system of roads, is accessible via paved highway from Reno or Sacramento, has abundant water and timber available for mining purposes, and has PG&E power available on-site.