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Show ' u Part IV E sample dump material alternative processing tu g IT Pi CHIEFS REAL ESTATE of real estate suitable for resi AND OTHER SURFACE INTERESTS Surface Real Estate Your Company has an estimated 7,000 acres, constituting J2 Si t3 I 11 approximately i dential and commercial development. During 1997 and continuing into 1998, several developers of residential, commercial and retirement communities have held discussions with your man-- square miles. oo 8 RICH J RANCH CLIFF VOORHEES n 11th Annual 4 CM PRODUCTION SALE 7 p.m. Friday, September 25th, 1998 Utah County Fairgrounds Selling our 1998 Fall crop by : Tee J Willow Jack, TeeJ l Eddies Badger, Counter Move, Dustin Diamond For info, call :o. 798-308- 798-61- 1, or 35 423-24- 00 1-- 12 r:AaQcaNTAi n mis rjttb rrasto: STOW-IFEATURES T Hvy Duty St I Conttruction CofiMMiiMiCi Stcura, Afforcbbta Fast Ddkaty A Pick-u-p Fid Swing Door? Ground Laval Access (801)977-888- 5 j (800)370-011- 1 40x8x8 12 j 20'x8'x8 12' j 243 VWhc 1 100 Soulti Ml Laka Cky. Utah REFRIGERATED UNITS AVAILABLE j j progress. Your management is well aware that only the successful consummation of one or more of uuuuuurg agement relating to possible terms of purchase andor joint venture development of significant sections of Chief s buildable surface real estate holdings. Management believes that the increased interest of developers is directly related to the recent announcement by the State of Utah of its intention to build a highway on major north-sout- h the west side of Utah Lake to be called the Legacy Highway. Since the highway will connect with Utah State Route 6 only eight miles from Eureka, it will reduce the driving time from the Eureka valley to downtown Salt Lake City from approximately hours, to 1 hour or less. No agreements have yet been reached based on proposals that have been received by your Company from developers to date. Your management is keenly aware of the significant additional profit potential of Chiefs surface real estate holdings and your management is attempting to limit its discussions to developers who have the experience and financial ability to maximize the asset value of your Companys buildable real estate. Surface real estate is carried at a zero valuation on Chiefs Balance Sheet as a result of depletion taken over the 48 years that Chief mined these areas until production terminated in 1957. Surface Minerals Several areas located on the surface of Chief s properties economic contain potentially mineral values. These areas include the Zuma property, containing a clay deposit that was previously mined by Sun to test is in shine until its market for the clay was lost. Discussions are ongoing in an attempt to reach a royalty or joint venture agreement that is economically viable to your Company. Discussions are also underway relating to the production of aggregate material from several other areas of your Companys Main Tintic District properties. Mine Dumps Although the results of the Knelson Concentrators processing of the Burgin Mine silver fissure ores and Trixie Mine ores were very positive, the results for the processing of Chiefs old mine dumps in the Main Tintic District are marginal. The Knelson Concentrator proved unable to economically process the lead, silver and zinc contained in the various dumps. Alternative gravity separation methods are now under consideration, including equipment currently being used by other mining companies to process similar lead and zinc materials. Arrangement for shipments of Society readies special display The next project for the Tintic Historical Society is to do the "school room" display. The room to be used is upstairs in the old City Hall building, on the west side of the hallway. The scaffolding has been set up in preparation for washing down 20-plyears of accumulation. us its important objectives outlined above will bring about the recognition of your Company in the marketplace as a sound investment with high potential, with an increase in the price of Chief stock as the inevitable result. Your management will continue its efforts towards making certain that goal is achieved. In February 1998, in order for Chief to help meet its objectives outlined above, a private placement of 430,000 shares of restricted investment stock was made which raised $1,397,500 for your Company. Thank you for your continued confidence and for your patience as your Companys management strives to meet its objectives. Leonard Weitz President and Chief Executive Officer July 21. 1998 Editors note. .This concludes the series taken from a letter to Chiefs stockholders.. and printed in the last four issues of the Eureka Reporter. 4-p- art UVSCrMcKay Events CenterTfriTNoori to 9 pMiSatlio am to 2 pm Copy Plan this weekend to attend Utah Valley's favorite special event geared to fulfill your needs, wants and dreams. Look for ways to improve your home. Seek ideas to enhance your family lifestyle. Discover new products, services and opportunities. Enjoy demonstrations and special exhibits. Take advantage of special offers and pricing to save. Enter our door prize drawing for valuable gifts. Down VALUABLE; COUPON Hoorn Sept. 25 Expo Center &F2HnniDi7 & 26 UVSC McKay Events Upside 2 forPass1 Admission Regular Admission $3.00 Adult- s- Save half. VALUABLE COUPON I xv 'SSS' 7 QUVi!!..1 n 9 mi |