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NMC, Inc.
Statement to Shareholders
March 4, 2011

Fellow NMC Inc. Shareholders:

On April 1, 2010, we issued a Statement to Shareholders announcing the successful achievement of a number of milestones, including the long awaited State of Arizona renewal of our lease on all 377 acres at the Skull Valley site that I had been working toward ever since we gained control of the company on 3-31-07. The renewal of the lease helped facilitate discussions with potential buyers and joint venture partners.

A number of parties have conducted due diligence, including taking core samples, which has led to more serious negotiations. As I am sure you understand, we are not at liberty to discuss the progress of on-going negotiations; however, given the passage of time, we wanted to let you know that there is a full time effort underway. Your board and I are encouraged and determined to see this thing through. Given the severe contraction of the global credit markets beginning in January of 2008, not one of the negotiated purchases of our assets was able to obtain the necessary financing. When the last potential purchase failed last June, my focus moved primarily to negotiating a potential joint venture.

All of us on the board are painfully aware of the passage of time and the impact that the worst recession/depression since the 1930s is having on our shareholder base. We’re experiencing it as well and want to assure you that we’re moving as quickly and efficiently on those things that are within our control. Fortunately, precious metals prices continue to work in our favor. Unfortunately, finding lenders willing and able to back a large transaction is the challenge.

Please understand also that potential joint venture partners must first negotiate what they perceive as a good deal; then they must prove financial capability to finance the transaction, and then invest between $400,000 to $1,000,000 to prove that what we have within the first ten feet is consistent at 60-90 feet and across the entire 279,000-500,000 tons. If it is, and that is a big “IF”, they must invest around $4-6 million more dollars to install a milling plant on site. Should that go well, they would then build or buy a captive refinery at a cost of approximately $14 million. By this time our potential joint venture partner will have invested approximately $35,000,000 to $40,000,000. If the recovery protocol proves economically viable, the revenue generated will be split with our shareholders.

Perhaps you can now better understand why this process has taken so long and why your patience and prayers are appreciated as we press forward toward a hopeful harvest.

 

In Your Service,
Michael Sheppard, President
/s/