El Capitan Precious Metals : June 2022 Business Update

As I've reported over the past few months, we continue to pursue several avenues for the funding we need to get operational. It's a waiting game - and a painful one, since I, like you, want to see El Capitan become a viable operation that delivers a return on our investment - and I keep reminding myself that due diligence and research and LOIs and NDAs and Proposals as well as forthcoming engagement letters (from 6 to 8 figures) and evaluating international financing offers that included SPVs (that we eventually declined, because of the significant up-front fees) all take time. That said, we anticipate some decisions and updates in the next few weeks. Getting financing for an operation of this magnitude is far different than asking your neighbor or friend for a $5,000 loan.

In the interim, we continue to clean up the past:

• Last week a New Mexico judge ruled in our favor related to the eviction of the squatter who has lived in the house at El Capitan - without paying us any rent for years. The court ruled that the current occupant of the property who had no legal right to reside there must vacate the property within 30 days.
• As reported earlier this year, we successfully negotiated a settlement with the mortgage holder of the El Capitan property and, thanks to a shareholder who stepped up with the funds needed to release the lien, the property is free and clear. We are executing a quit claim deed that moves that residential property from private ownership by an individual to ownership by El Capitan Precious Metals, Inc.
• We are working with the U.S, Forest Service on a "swap" of two of our current patented land
  claims (representing 40 acres in area) that are "outliers" (relative to our two other patented
  claims, located at the mining site where the house is) for five different claims (approximately
  100 acres) that are contiguous to our two, patented claims. This logical and prudent swap,
  which makes all our patented claims contiguous, was previously approved by the Forest Service, but rejected by a previous ECPN Board of Directors. Our agent on site in New Mexico has confirmed that this proposed "swap" has been submitted again to the Forest Service and we are awaiting its re-approval. The forest fires in New Mexico are diverting that agency's attention from this issue, but we are in frequent communication with them and will continue to monitor progress in getting this action approved.
• We have moved, via quit claim deeds, 12 claims that were held by El Capitan, Ltd. to El
  Capitan Precious Metals, Inc. … where those assets should be held.

Our thanks to the shareholders who contributed to the fund that allowed us to secure, again, our 112 land claims. The annual renewal for the claims is due, again, in late August. The expenses just keep coming… and we'll continue to press forward on all fronts - with all the more reason to "get into business."

We continue to look to the future and prepare for announcements to shareholders over the next few months. And to that end, we are working to gather shareholder information and update our databases. Hundreds of shareholders have already completed this Survey - Thank you! - and we're including the link (below) again here for anyone who hasn't yet completed the short survey.

Here it is:
https://www.elcapitanpmi.com/shareholder-survey/

In closing, and on a more personal note, I am grateful to the many shareholders who have reached out to me - to applaud our progress, to thank me for the time I've invested in righting our 'ship,' and to send their prayers… for me and for ECPN. It would be a fair assumption that I've said a few prayers myself… Several people have also urged me to "stay healthy" - so I can continue fighting 'the good fight' with strength and vigor. On that subject, I'm pleased to report that I am in great health and, while I'm no Spring chicken, I've got lots of spring my step. I bike 20 to 25 miles a day, hit the weight room 3 to 4 times each week, and just had my annual physical. My doctor's only recommendation after seeing my blood work was: "you obviously need to drink more water." I can do that. And I will… because I plan to stay in the saddle here for the foreseeable future. I have a group of advisors that I am in touch with constantly (some multiple times each day) and they are well informed related to the day-to-day work as well as plans (and players) related to our vision for the Company's future. And, when the time is right, I may ask them to serve, more formally, on your El Capitan Board of Directors. For today… all is well. And I hope you, too, will stay healthy - and hydrated - as our El Capitan Story continues to unfold…so we'll all be around for a victory lap when that day comes.

Doug