As of the present time, the rotary rig modifications are nearing completion and materials are being assembled in Rexburg, Idaho in preparation to shipping the major equipment items to Hilo. We are currently expecting a shipping date during the third week of March with arrival of the equipment in the first or second week of April. Shipping arrangements are still being worked out - and these dates may still slip by up to two weeks. With the arrival of the hardware in Hilo, rig-up of the rotary drilling equipment will begin immediately; we expect that the first two weeks of operation will be occupied by rig-up and shake-down of the rotary equipment. Our first down-hole task will be an effort to repair a leak in the casing - that may take several days but, by the end of the first week of May, we expect to begin hole opening. This process will require between 30 and 60 days to complete: the actual duration will depend on stability of the hole and our ability to straighten the "dog-leg" that developed below about 9000' near the end of the first phase of coring. We expect to open hole to a depth of 10,500' to 11,000' (3200 m - 3300 m) depending on where we encounter stable formation for cementing the casing in place. At the completion of the hole opening, we are planning to stand-down the rig crew for a week to ten days to give the crew a break - and to allow the down-hole logging crew to perform any downhole measurements that are desired by the various interest groups. At the end of that period, we will do a final clearance run with a rotary bit and then set and cement the 5" casing in the bottom of the borehole. At the completion of that operation, coring will commence. I will try to provide weekly updates until the drilling equipment is on site and rigged up; after that, I will make every effort to provide updates on a daily basis. As each of the major milestones is passed, I will be able to give better estimates of the dates for subsequent actions/events.