1st. The company owns the Northern Light claim, the title to which is vested in the Gold Center company. The property is patented and covers an area of 20 acres. It is located northeast of the town of Rhyolite, the principal town of the Bullfrog district.

2nd. 1,000,000 shares Tramps Annex Mining Comapny, which stock represents the entire capitalization of the Tramps Annex Company, owning the Surprise claim, adjoining the Tramps Consolidated on Bonanza Mountain, Bullfrog Mining district.

3rd. Owns 400,000 shares of the capital stock of the bullfrog Syndicate mining company, a corporation organized under the laws of south Dakota and owning the Zu Zu, Old Gold, Black Jack, Jolly Jane, Gold Center, Valley View, Valley Queen and Valley View Extension claims all in process of patent and lying next to the Pioneer group in the Crystal Springs section of the Bullfrog mining district, the capitalization of the Syndicate company is 1,500,000 shares per value $1.00 of which there was placed in the treasury 6,000,000 shares.

4th. Owns 200,000 shares of the Bullfrog Rampart Mining Company owning the Rampart, Daisy, and Daisy Extension claims in process of patent, located on Montgomery mountain, Bullfrog Mining ditrict within a short distance of the famous Montgomery-Shoshone mine. the capitalization of the Rampart is 1,000,000 shares; par value $1.00. Of the capital stock of this company there are 500,000 shares in the treasury. The company is incorporated under the laws of South Dakota.

EXPLANATION

Tramps Annex Company--The entire capitalization of this company being intact, is held by the Gold Center Company as an assett. There are certain conflicts on the Surprise Claim upon which the management and attorneys have been working for months past. We are trying to make a settlement, and as soon as this settlement is arranged, a patent can be obtained to this property. The engineering work for patent has all been completed.

Sometime ago when there was considerable activity on Bonanza Mountain, your Board of Directors deemed it advisable to transfer the Surprise Claim to a new company and the Tramps Annex Mining Company was organized under the laws of South Dakota with a capitalization of one million shares, par value $1.00 each. The Surprise claim was then transferred to the Tramps Annex Mining Company.

This claim two years ago was considered the most valuable asset of your company. This property has not as yet come to the front in the way that it was originally expected. There is a very rich ore on adjoining Denver claims, however, close to our line. All reports made by engineers and experts are to the effect that with proper deep development the Surprise claim has everything in its favor of being made a producer. The property is equipped with a complete plant of machinery of sufficient power to sink the shaft to the 500-foot level. On account of adverse financial conditions, the development of this property was abandoned about two years ago. With the improvement now under way, it is likely that arrangements will be made, as soon as patents can be completed, to develop this ground, either through leasers, or by donating a protion of the stock of the Tramps Annex Company for treasury purposes, and selling it to complete the development fund.

Bullfrog Syndicate Mines Company owns seven claims in the Crystal Springs section of the Bullfrog district, adjoining the Pioneer on the north. These properties are in process of patent and the legal patent advertisements are appearing at this time. Within 60 or 90 days a Receiver's receipt should be obtained for these properties. With the boom in the Crystal Springs section at present, this ground is certain to become more valuable and the management will spare no effort to make arrangements to raise sufficient development funds to thoroughly develop this property on such basis and terms as they deem best for the interest of the Company. The stock interest of 400,000 shares belonging to the Gold Center Company, promises to become very valuable on account of recent important discoveries in the Bullfrog Pioneer mine, as this group of claims endlines the Pioneer where a bonanza is being developed.

We have recently sent engineers to Rhyolite who have made a thorough examination of the Syndicate group and their reports are most favorable. The plans now are to raise sufficient development funds to open this ground. The Board of Directors of the Syndicate Mines Company are now planning on closing certain deals whereby this property can be developed to the best advantage of all concerned. No effort will be spared to create a sufficient development fund to thoroughly explore and develop this ground, which we believe contains the extension of the Pioneer Vein.

This property two years ago was considered one of the least valuable assets of our Company, but has since come into prominence on account of the Pioneer strike. it well illustrates the speculative and sometimes advantageious feature of mining investments.

Bullfrog Rampart Co. On the estate of the Bullfrog Rampart company a lease has been let within the past two weeks to a prominent Rhyolite merchant, who will start work immediately. The lease is on the north half of the Daisy claim and will run for a period of three years from March 1st, 1909. Royalities of 10 to 30 per cent, will be paid on the net returns of all ore shipped from this ground.

While this lease is granted for a longer period than is customary in the bonanza section of Goldfield and Bullfrog, conditions have been such in the past twelve months that it has been next to impossible to lease any ground unless the most favorable terms were given. As this lease covers only a small portion of the large territory owned by the company, it was considered to the interest of the stockholders to grant this lease. Nearly all the great mines recently discovered in Nevada have been developed and proven by lesses.

The Northern Light claim owned by the company is patented and nothing will be done on this property on company account for the present, but will be leased if possible.

The Arizona Group formerly owned by the company, has been abandoned on account of repeated unfavorable reports received. We felt that it would be throwing good money after bad to continue trying to hold this property, and expending several thousand dollars more in annual assessment work and patent fees to perfect the title. Any amount of ground can be taken up surround the Arizona group, as there is nothing in that section to warrant one in expending any money in annual labor or attmepting to hold the ground.

The present management took up the affairs of the Gold Center Company at a time when conditions in the Bullfrog district were on the boom and secured control at great cost. The future at that time looked exceptionally bright. The tremndous slump that followed of which every stockholder is cognizant, made it absolutely impossible even in the face of serious effort to accomplish anything in the way of financing a company in the Bullfrog district. therefore all attempts to raise funds for development purposes neccessarily had to be abandoned.

We quote herewith a list of Bullfrog stocks and the prices at which they were selling at the period, and follow with a list of prices twelve months later. The comparison itself will convince our stockholders that with this condition confronting the investing public most any other investment at that time would have been more attractive than the purchase of Bullfrog Stocks.

High levels reached during 1906:

Montgomery Shoshone sold up to $20 per share

Tramps Consolidated sold up to $3.50 per share

Amethyst sold up to $1 per share

Gibraltar sold up to $1 per share

Golden Sceptre sold up to 80 cents per share

Bullfrog Victor sold up to 36 cents per share

Montgomery Mountain sold up to 65 cents per share

National Bank sold up 55 cents per share

Mayflower Consolidated sold up to $1.10 per share

About one year later, after suffering a steady decline, the above list was quoted at the following prices on December 17, 1907:

Montgomery Shoshone (now selling) about $1.00

Tramps Consolidated 19 to 20 cents

Amethyst 7 at 8 cents

Gibraltar 2 cents bid

Golden Septre 3 cents bid

Bullfrog Victor 2 at 3 cents

Montgomery Mountain 3 at 4 cents

National Bank 10 cents bid

Mayflower Consolidated 15 to 16 cents

To accomodate the Gold Center company's affairs to the altered finacial conditions your officers deemed it advisable to distribute the necessary effort of raising large sums of money to properly equip and develop the various groups of properties which are located in variously widely segregated sections of the Bullfrog district. With this purpose in view, three different companies were organized to take over (1) the Surprise claim south of Bonanza Mountain in the western section of the camp, (2) the three claims on Montgomery Mountain in the eastern section and (3) the large group of claims five or six miles to the north in what is known as the Crystal Springs section. As a result of this wise plan the Gold Center company retains a very large interest (a total of 1,600,000 shares) in all these properties and will eventually see them operated and developed without being called upon to contribute the large funds necessary. By thus distributing the burden among several companies we have been enabled to enter into certain favorable contracts looking to the speedy and complete financing of the Rampsrt and Syndicate groups all of which is to the immediate benefit and advantage of every stockholder in the Gold Center company. Not only has the Gold Center company already received many thousands of dollars for disposing of these properties to the Syndicate and Rampart companies, but it should receive many thousand of dollars more in the form of dividends and will retain a very large stock interest in each one of the companies.

In the meanwhile, we have carefully protected all the companies' rights, have advanced the necessary annual assessment and development work as rapidly as possible, have had all the groups surveyed for patent, and used every effort to secure speedy title from the government for these extensive holdings.

A few certasin stockholders have written and requested more regular reports. There was absolutely nothing of interest to report to anyone until the recent movement took place. Now that matters are again looking up in the Bullfrog district we will keep you regularly advised as to what is going on in the holdings of the Gold Center and subsidiary companies.

About six months ago certain contracts were entered into for the sale of treasury stock with the Bullfrog Rampart and Syndicate companies, and from present appearances, the parties who have these options are very likely to carry them out successfully.

As to what disposition, will be made of the stock assets of the Gold Center company, obtained from the Rampart, Syndicate, and Tramps Annex companies has not been definitely decided. If a stock dividend should be declared it would mean that each stockholder holding 1,000 shares of Gold Center would be entitled to 400 shares of Bullfrog Syndicate, 200 shares of Bullfrog Rampart and 1,000 shares of Tramps Annex. For the present the Board of Directors deemed it advisable not to declare this stock dividend, but to hold the assets intact until some future date.

The management from this time on will exert every effort in their power to manage the company's affairs in such a way that the properties will be systematically developed with a view of opening pay ore on the different holdings of our company. Reports will be sent out more regularly as conditions have now improved and there will be news of importance from time to time.