Wits Basin Precious Minerals Inc.

Wits Basin owns the Bates-Hunter Gold Mine in Central City, Colorado. Discovery of gold at the Bates-Hunter Mine in 1859 kicked off the Colorado gold rush and established Denver as a major American city. All mines in the area went dormant in 1936. This mining district has historically produced more than 4 million ounces of gold. Twenty-five percent (25%) of all the gold mined came from the area immediately surrounding the Bates-Hunter mine. Wits Basin's property controls the 15 principal veins underlying the mine. The veins historically produced about 750,000 ounces mined to an average depth of 600 feet. When the mine was closed, the mineshaft reached 800 feet. Drilling in the 1990's confirmed grades of 0.48 ounces over 10-foot widths with veins ranging from 2 to 20 feet wide. Workings down to the 800-foot level confirm that the gold veins continue to depth. Similarly mineralized properties in the region have been mined to 2,250 feet in depth.