Mr. David Cliff reports

EMPIRE MINING PLACES BULQIZA CHROMITE PROJECT ON CARE AND MAINTENANCE

Empire Mining Corp. has suspended its Albanian operations due to the discovery of material omissions in its renewed exploration licences. In January, 2011, Empire applied for automatic renewal of its Albanian exploration licences, having fulfilled all legal and technical requirements required by the legislation under which the licences were granted in 2009. Due to the implementation of new Albanian mining laws, the licence renewal was delayed but finally completed on Oct. 30, 2011. While the renewal was pending, Empire was permitted to continue chromite exploration but restricted from conducting mining activities. Under the old law, Empire could sell ore it encountered in exploration activities, however under the new law ore can only be sold once a mining licence is granted; it was therefore Empire's intent to mine and stockpile ore upon renewal of its exploration licences and to simultaneously apply for mining licences. While the exploration licences have now been renewed, it has unfortunately come to Empire's attention that they contain material omissions with respect to size and co-ordinates.

In an effort to rectify the matter, Empire has held emergency meetings with high-level members of the Albanian government, including the Albanian Prime Minister's adviser, and both the Minister and deputy minister of Economy, Trade and Energy. Initial reports from these meetings suggest that the omissions identified in the renewed exploration licences may simply be due to errors made by the Department of Mines; if true, this issue could possibly be rectified expeditiously. However, based on the well-established precedent of bureaucratic delays consistently encountered by Empire in Albania, management has decided that the only reasonable recourse is to suspend Albanian operations and lay off Albanian staff until the exploration licence issues are rectified, and the subsequent mining licences are awarded in full.

Moving forward, Empire plans to focus additional efforts on advancing its two projects in Turkey. At the Karapinar copper project a strong chargeability anomaly 800 by 800 metres across indicates a possible significant extension of the porphyry deposit and secondary enrichment. At the Demirtepe project continuing sampling at the newly identified Southwest zone, has identified a large and continuous copper-gold anomalous zone located approximately one kilometre to the southwest of the Main zone where drilling has consistently intercepted significant shallow copper-gold-silver and molybdenum skarn mineralization.

We seek Safe Harbor.