ECPN President and CEO Composes Shareholder Letter

Dear Shareholders,

As this year comes to a close, we look back on a very productive year for the Company. We are in the process of finalizing 'step three' in our Strategic Plan, which is to engage an investment bank to market and sell the El Capitan property. John Stapleton, the Chairman of the Board of ECPN, is directing this important and final phase of our Strategic Plan. John has many years of experience working in the area of mergers and acquisitions and we are very fortunate to have his experience and marketing skills available to the Company.

Over the past year we have been contacted by numerous investment banking firms, but the Board focused on finding the top firm that would best represent the Company in maximizing the precious metals values that El Capitan presents to the marketplace. We have had discussions with several investment bankers and are now in contract negotiations with one firm in particular.

In this past year the company has used its time and resources on two research projects: one in Denver, Colorado and the other at our lab in Prescott, Arizona. The Company engaged Denver-based Arrakis, Inc. to develop an assay procedure and to produce a recovery process using the Wendell method of alkali fusion. Although we received assay results that were very encouraging in recovering platinum and palladium, the project was not completed to our satisfaction.

We are extremely pleased with the second research project which was developed at our lab in Prescott. We were able to develop a pre-roast silver-lead collection recovery process. Using this recovery process we were able to produce and sell two dore bars. This is significant because these dore bars were produced by the actual processing of ore and represent actual recovery of silver and gold -- versus assay results and values.

The first test on 200 pounds of 10--to-1 concentrates (equivalent to 2,000 pounds, or one ton, of head ore) produced 41.5 ounces per ton of silver and .199 ounces per ton of gold. This dore bar was sold to Gannon and Scott, a precious metals refinery. We wanted to confirm the validity of that test, so we replicated it to produce a second dore bar from 20 pounds of concentrates. The results were even higher than the 1.2 ounces of gold equivalent that we received from the first test. This second dore bar was sold to a private individual. In addition, we ran the silver-lead collection recovery tests on nine, one-pound samples of head ore. These tests were also very successful and produced results comparable to those achieved in producing the dore bars.

Because of these successful results, management decided to focus on the silver-lead collection recovery and postpone any additional research work on our Denver project. The silver-lead collection results give the company a viable recovery process, which eliminates the need for further research and immediately enables us to move forward on the sale of the ECPN property.

Although we have been very successful in the production method developed by using the silver-lead collection we had not developed an assay procedure for it. Over the past few months we have experimented with one-pound samples, half-pound samples and, finally, 30-gram samples of head ore using three grams of silver inquart. It is my personal opinion, after working this past year with chemists and metallurgists, that we have developed a method -- using micro-cluster technology -- to recover nano particles of gold and silver. The standard method of assaying, using only two or three grams of ore, appears to limit the effect of the silver in attracting the particles of silver and gold in the micro-cluster.

In addition, our consulting geologist, Dr. Clyde Smith, recommended that the company claim an additional 720 acres, which contains an anomaly that may have significant potential. A few months ago the company filed BLM claims on the 720 acres.

The Company also has been working with AMEC, an international environmental consulting company, to secure a permit from the U.S. Forest Service to drill 114 exploratory drill holes on 2,000 acres of the Company's property, which now totals over 3,500 acres. ECPN has taken this permitting process to the point where a purchaser of the property can take it to conclusion.

Please be assured that we are working diligently in completing the updated 43-101 that is based on the Canadian National Instrument. Since there is no requirement in the United States for this document, many U.S. mining companies use this Canadian National Instrument. According to Dr. Smith's previous 43-101 report: "The El Capitan property qualifies as a measured resource based upon the Canadian National Instrument 43-101 guidelines." It is normal practice to have two labs confirm the core sample assaying, and we are currently completing that process. Our goal is to have all our data compiled and completed so that our investment bank is able to begin marketing our property in January. John Stapleton will have an announcement related to that very soon.

In closing: The Company has made tremendous progress this past year in not only producing dore bars that contain gold and silver, but in developing an assay procedure for a very complex ore that prospective buyers can use in conducting their due diligence.

Chuck Mottley President and CEO

The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the results of metallurgical testing, interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, pre-feasibility and feasibility studies and the possibility that future exploration, development, testing or mining results will not be consistent with past results and/or the Company's expectations; discrepancies between different types of testing methods, some or all of which may not be industry standard; the ability to mine precious and other minerals on a cost effective basis; the Company's ability to successfully complete contracts for the sale of its products; fluctuations in world market prices for the Company's products; the Company's ability to obtain and maintain regulatory approvals; the Company's ability to obtain financing for continued operations and/or the commencement of mining activities on satisfactory terms; the Company's ability to enter into and meet all the conditions to consummate contracts to sell its mining properties that it chooses to list for sale; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.