UC Resources has the following three main corporate objectives for this year:

• Production of gold & silver
  
• Exploration of the flagship Copalquin property for both low and high-grade gold and silver deposits.
  
• Acquisition of other production and exploration assets in Mexico.
   

McFauld’s Lake area of the James Bay Lowlands is emerging as Canada’s most exciting exploration area for base metals, on the heels of some tremendous results from Noront Resources.  (TSXV:NOT).

UC has partnered up with Spider Resources (TSXV:SPQ), and UC has an option on a 55% undivided interest in one of the largest land packages in the McFauld’s Lake area.  Some highlighs from previous results include:

• 18.8 meters of 8.02% Copper (McF-04-57), and 25.75 meters of 4.83% Zinc (McF-03-18).
   
• 2007 Exploration Program:  Drill Hole McF-07-75 averaged 0.35 g/t AU, 6.63 g/t Ag, 2.69% Cu, and 4.35% Zn over 19.02 metres. Drill Hole McF-07-76 averaged 0.22 g/t Au, 7.47 g/t Ag, 1.8% Cu and 3.3% Zn over 7.5 meters.
   
• Assay results for three additional holes are expected shortly.

Production generates cash flow. Once UC is generating cashflow, a series of benefits are expected to occur:

• Increased shareholder value.
  
• The company will have the capacity for debt financing, leveraging Return on Equity.
  
• Exploration and acquisition can be funded from debt and free cashflow, reducing or eliminating the need for additional equity raises and the concomitant dilution.
  
• Increased coverage by analysts.
  
• More institutional ownership, as many institutions have a mandate to invest only in producers.
  

Copalquin is a very attractive exploration target for gold and silver:

• The geology and exploration results are indicative of a potential huge, open pit system (typical of epithermal type systems). Some of the largest gold producers in the world are, in fact, open pit mines, with low grade ore.
  
• The epithermal system also contains high-grade vein-type deposits, which potentially can be mined with an underground mine, or recovered as part of a large open-pit mine.
  
• Copalquin has historical production and previous producing mines, allowing leveraged exploration. Looking for high-grade gold and silver near previous producing mines, such as the La Soledad mine, resulted in the discovery of a mineralized zone with an average of 1.4 ounces per tonne of gold and 50 ounces per tonne of silver.
  
• The system is on trend with other major discoveries along the Sierra Madre's of Mexico, which is one of the world's most prolific gold and silver mining belts.
  
• Mexico has a most favorable business and regulatory environment for mining and investment.
  

The company has an aggressive growth strategy. As in other industries and sectors, eventually there will be consolidation of assets, land packages, and companies. UC intends to:

• Acquire quick to production assets, consisting of previous producing mines or tailings deposits, which can be rehabilitated and entered into production in less than one year.
  
• Accumulate additional exploration land packages throughout Mexico's Sierra Madres.
  
• Within 2-3 years build UC into a $300 - $500 million market capitalization company.
  

In summation, our efforts on exploration will be divided between high-grade veins and low-grade economic bulk open pit style deposits. We feel that due to recent drilling achievements there exists a significant opportunity for both types of deposits on our concession. Minimizing shareholder risk will be achieved through leveraged exploration. La Yesca will be the first production property generating cash flow and aid UC Resources in its mission to prove up substantial gold and silver resources, thus maximizing the market value of all of our assets.