Mr. Len Clough reports

STANDARD TOLLING PROVIDES CORPORATE UPDATE

Standard Tolling Corp. has had a number of corporate developments.

Company objective

The objective of the company is to establish a toll processing business in Peru in order to capitalize on the lack of compliant ore-processing facilities in the country. Under new legislation, the government has not only looked to formalize small and artisanal mining operations but to more closely regulate the processing facilities that buy the ore. This has resulted in a number of plants being shut down entirely. By mid-August, the government will announce new laws pertaining to daily throughput thresholds and, consequently, it should level the playing field. After meeting with Peruvian government officials and the Ministry of Environment, the company is encouraged that new policy will continue to create opportunity.

Comprehensive study

Unlike the traditional exploration model where properties can be acquired and sold quickly, building a business requires a thorough analysis and a systematic rollout plan. The company commenced a comprehensive study in January to survey small mining activity, ore flow and logistics, gather information to complete financial modelling, establish an implementation team, source possible mill locations, and to assess acquisition opportunities. The study has concluded, and the company has narrowed its focus on potential acquisition targets to meet a new criteria. All prospective acquisition targets require significant due diligence, which have been overseen by Carlos Mirabal and Alex Davidson. At this point, the company is carrying out acquisition talks and continuing due diligence in Peru, and other opportunities outside of Peru will be revisited after operations are established in Peru.

Other business

The company has renegotiated the sale of the Acero claims for a one-time payment of $350,000 (U.S.). As a result of the transaction, the company will maintain a 1-per-cent net-smelter-return royalty on the project. It is anticipated that the funds will be received within the next 30 days. These funds will be used for general working capital purposes. The company continues to conserve cash by minimizing expenses, which has allowed the company to review more projects and gain valuable intelligence.

Outlook

The company remains steadfast in its pursuit for the right plant acquisition. Management appreciates the patience of its shareholders and will continue to operate prudently and source great investment opportunities.

We seek Safe Harbor.