|November 16, 2010|
|Dear Investor: |
As I have been getting a lot of calls and emails regarding the trading halt and status of other Company projects, I thought I should take this opportunity to formally address the situation. As many of you already know, we acquired mineral claims in Brazil which demonstrate potential and, we issued a news release on October 21, 2010. At that time, Management considered this to be a straightforward, reviewable transaction, property acquisition for the TSX to look at and make comment. Also at that same time, our stock price appreciated quite quickly and a decision was made to halt the stock.
The TSX chose this opportunity to review details of the Brazil property acquisition and came to the conclusion it represented a reverse takeover and maintained the Company imposed trading halt. Management has had numerous discussions and meetings with TSX officials and paperwork was filed by us with respect to their request for documentation to this reverse takeover. As of today, Management has done all it can to ensure the timely resolution to this matter and we cannot do anything but await acceptance by the TSX.
Please be aware that the trading halt should not in any sense reflect badly on the Company or its properties. We consider this halt to be a regulatory issue and are confident it will be lifted in a reasonable amount of time -- once the full review has concluded.
On other fronts, in early fall, we purchased two bridges to assist in road access to various locations of the Waverley-Tangier gold/silver/zinc/lead property, located some 150 kms north of Revelstoke, BC. This access -- including the Tangier dump -- will allow us to remove the existing dump material for testing. These roads will also allow for easier and safer access once drilling commences. Unfortunately, due to exceptional rain this spring and summer, the roads had to be re-built due to washouts and safety concerns. We have now mobilized a work camp which can accommodate up to 12 people but drilling cannot commence until late spring 2011due to heavy snow loads creating impassable roads for access.
We also recommend you visit our website as we purchased a 100% interest in the LD gold property near Atlin, BC and are working towards a 2011 program of mapping, trenching and drilling.
Finally, Management believes with the rise of gold and silver prices we are in the right position to have a successful 2011 for exploration of all the properties we are participating in whether joint ventured or owned 100%.
This should be an exciting year for all of us with Armadillo Resources and of course, we thank our shareholders for their continuing support. And I do welcome your calls and emails.
On behalf of the Board,
President & CEO
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