Silver Falcon Mining, Inc. announced the planned monthly delivery of Bullion Dore to the company's contracted refineries in 2012, resulting in a net revenue position greater than the mill expenditures. The company will, at times in 2012, consolidate precious metal dore shipments to receive the best precious metal prices. This will positively enhance the net yearly revenue generated from milling operations. Construction on the permanent metallurgical laboratory is progressing slowly due to some design changes and should be completed in the early part of this year. Management has been approached to provide third party toll smelting services, with the opportunity to procure some large contracts. Upon successful contract negotiations, these third party net smelting activities will be added to the Company's revenue stream. These contracts will necessitate some modifications of the size of the equipment in the lab area, which can be easily accommodated at this stage of construction. The inspection of the Sinker Tunnel and the bolting of the weak areas on the hanging wall of the tunnel have been put on hold until the Company's geologists and mine engineer present their drilling plan for both the tunnel and the exploration of War Eagle Mountain, as a requirement to filling out the 43-101 instrument, currently under way. Management is, in the mean time, evaluating the proposed bidders for the finishing of the bolting in the tunnel and the blasting out of the underground areas needed to accommodate the drilling rigs. The company remains diligent in maintaining austere cost controls on all operational aspects, increasing production and recovery results at the Diamond Creek Mill and, most importantly, will be very aggressive in 2012 with the drilling exploration programs both within the Sinker Tunnel Complex and atop War Eagle Mountain. The company directors have been evaluating a number of candidates to become new directors at SFMI. No final decision has been made on such candidates, but upon such decisions, information will be forthcoming.