At December 31, 2009, the balance of our cash and unrestricted certificates of deposit was over $12 million. Our net cash expenditures for operating activities for 2009 totaled $7.4 million. Cash outlays were less than projected due to delays in the USFS approval of our EIS and decision to delay adit rehabilitation and dewatering until received.

In 2010, we plan to continue to focus on our planning for the exploration and delineation drilling program at the Montanore Project. We also intend to continue to pursue the re-permitting applications with the goal of having sufficient data to commence preparation of a phased financing plan for the Montanore Project.

We plan to engage a contractor to begin preparation of a preliminary economic assessment (PEA) and an update of our Canadian National Instrument 43-101 technical report for the Montanore Project in the second quarter of 2010. We will need to raise approximately $20 million to complete our exploration drilling and bankable feasibility study, which we expect would be undertaken over the next three years, assuming we receive a final EIS and Record of Decision in 2010. Similarly, development activities could be deferred if the permitting process is delayed or if commodity prices make the project difficult to finance or increase the expense of such financing.

Restatement of 2008 Financial Statements

The Company reassessed its policy for capitalizing property, plant and equipment and determined that certain purchases of stationary equipment and construction in progress recorded in prior periods should have been considered exploration costs and expensed as incurred. Accordingly, the Company has restated its previously issued 2008 consolidated financial statements to reflect this correction. For an explanation of the effects of this restatement, see "Note 2�Prior Period Adjustment" of our Consolidated Financial Statements, included on the Form 10-K.

Financial and Operating Results

We reported a net loss for the year ended December 31, 2009, of $9.4 million, or $0.41 per share , compared to a loss of $10.8 million, or $0.48 per share, for the year ending December 31, 2008. The decrease of $1.4 million in net loss between 2009 and 2008 was primarily due to the Company reducing its operating expenses in 2009 to conserve resources pending the determination of environmental permits. The following table summarizes expenditures by category and year:

Montanore Project Expense includes exploration, fees, filing and licenses, and technical services, including environmental, engineering and permitting expense. Montanore Project Expense decreased by $0.9 million during 2009 compared to 2008 for the following reasons: (i) demobilization of our adit rehabilitation contractor and decreased spending related to rehabilitation activity during 2009 ($0.3 million), (ii) two fewer employees led to a decline in technical salaries of $0.1 million during 2009, (iii) decline of $0.2 million in consultant fees in 2009 because payments to an environmental consultant to conduct additional studies needed for the draft EIS were completed during 2008 and expenditures pertaining to the design of the nitrate treatment and removal system at the mine site were principally completed in 2008, and (iv) recognition of an asset retirement obligation in the amount of $0.3 million during 2008.

Administrative Expense, which includes general overhead and office expense, legal, accounting, compensation, rent, taxes, and investor relations expense, decreased in 2009 by $0.2 million. The decrease was primarily due to a decline in promotion and investor relations expenditures during 2009. Non-cash stock option expense decreased by $1.3 million during 2009 primarily because $0.8 million of expense associated with the grant of options upon approval of the 2007 Stock Option Plan was recognized during 2008 following receipt of stockholder approval at the 2008 annual meeting. The remaining $0.5 million decrease in Non-cash Stock Option Expense was the result of recognizing additional compensation expense in connection with re-pricing of stock options which was $0.2 million in 2009 compared to $0.7 million in 2008. Other income includes a $0.5 million loss due to the change in the fair market value of warrant derivatives and a decrease of $0.5 million in interest income during 2009 as a result of utilizing funds for operating activities during 2009.

Liquidity and Capital Resources

At December 31, 2009, our aggregate cash, short term investments, and long term investments totaled $13.8 million compared to $20.3 million at December 31, 2008. Cash flows utilized by financing activities were $1.8 million in 2009, primarily to pay off the balance on the line of credit. The net cash used for operating activities during 2009 was $7.4 million, which consisted primarily of permitting, environmental, exploration, and engineering expenses for the Montanore project and general and administrative expenses. Cash used in investing activities for 2009 was $0.1 million for the purchase of certificates of deposit. The net decrease in cash and cash equivalents for the year ending December 31, 2009 was $9.4 million.

We anticipate expenditures in 2010 of approximately $8.0 million, which we expect will consist of (i) $1.5 million in each quarter for ongoing operating and general administrative expenses and (ii) $0.5 million in each quarter for permitting and for engineering and geologic studies to upgrade our Canadian Instrument 43-101 and perform a preliminary economic evaluation study.

Forward Looking Statements

Some information contained in or incorporated by reference into this release may contain forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements include comments regarding further exploration and evaluation of the Montanore Project, including planned rehabilitation and extension of the Libby adit, drilling activities, feasibility determination, engineering studies, environmental and permitting requirements, process and timing, and estimates of mineralized material and measured, indicated and inferred resources; financing needs; the markets for silver and copper; planned expenditures in 2009 and 2010; and potential completion of a bankable feasibility study. The use of any of the words "anticipate," "estimate," "expect," "may," "project," "should," "believe," and similar expressions are intended to identify uncertainties. We believe the expectations reflected in those forward looking statements are reasonable. However, we cannot assure that the expectations will prove to be correct. Actual results could differ materially from those anticipated in these forward looking statements as a result of the factors set forth below and other factors set forth and incorporated by reference into this report: Worldwide economic and political events affecting the supply of and demand for silver and copper, and the availability and cost of financing for mining projects; Volatility in the market price for silver and copper; Financial market conditions and the availability of financing on acceptable terms or on any terms; Uncertainty regarding whether reserves will be established at Montanore; Uncertainties associated with developing new mines; Variations in ore grade and other characteristics affecting mining, crushing, milling and smelting and mineral recoveries; Geological, technical, permitting, mining and processing problems; The availability, terms, conditions and timing of required governmental permits and approvals; Uncertainty regarding future changes in applicable law or implementation of existing law; The availability of experienced employees; The factors discussed under "Risk Factors" in this Annual Report on Form 10-K for the period ending December 31, 2008.