Good day, ladies and gentlemen, and welcome to the Comstock Mining April 2018 Quarter One Results. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. And it is now my pleasure to introduce your host, Mr. Corrado De Gasperis. Please go ahead.

Thank you, Savannah, and good morning everyone. It's Corrado here with Comstock Mining. Welcome to our 2018 first quarter conference call. We've completed our first quarter review with Deloitte & Touche just yesterday, and filed our first quarter financial statements on Form 10-Q last night. And we released a summary of those results through our press release this morning. If you don't have a copy of today's release you'll find a copy in our Web site at www.comstockmining.com under New/Press Releases. We will keep the same format for this call as we've done previously, starting with my prepared remarks and then taking as many questions as time allows, also trying to limit this [Technical Difficulty] to an hour. If you're unable to ask a question on the call we'll certainly be available this afternoon and throughout the remainder of the week for follow-up calls. Before I begin, let me also say that any statements related to matters that are not purely historical facts and may very well constitute forward-looking statements. These statements are based on current expectations and are subject to the same risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in the reports filed by the company and the SEC, and in this morning's release. And all of those forward-looking statements made during this call are subject to those same and other risks that we can't identify. Just briefly before I discuss our results and the strategic initiatives, let me welcome two new board members to our team. In February, Leo Drozdoff joined the Board with an expensive Nevada mining industry resume, including a great engineering, legislation, environmental regulation, economic development, and historical preservation background that's just absolutely broad and outstanding. He most recently had served as the director of…

Absolutely. [Operator Instructions] And we can take our first question from Harvey Molca. Please go ahead. Your line is open.

Good morning, Corrado.

Hey, Harvey, how are you?

Good, thanks. So what I'm seeing now is that we've increased our outstanding stock by 12%, is that correct?

Yes.

You went from 47 million to 53 million?

Correct, yes, as of March 31st and as of today.

Okay. And 688,000 of that was sold for cash at the markets?

No, 4.5 million of that was sold at cash at the market, 688,000 was the final component with IAA. We finished IAA off early in the quarter, because there was sort of a maintenance fee associated with that on a monthly basis. Once we completed it, we terminated it and closed it. So that's 100% behind us. And then we did 3.9 just a little under 4 million with Leviston during the quarter as well in terms of the…

Was that a cash transaction?

Those were all cash transactions. Well, there was a small fee associated with the Leviston one upfront that was non-cash but the - cumulatively, they were for proceeds of about a little over $1.1 million cash.

Which was what per share?

About $0.30 per share, I think that's shown in summary, in foot note six in the queue.

Okay. And then the payment, that was issued in stock, not in cash, correct?

Payment was issued in stock and it's a little different in the sense that it's tied to a cash value and depending on the share price there actually could be a scenario where we get some shares or cash back once the thing closes up and it's expected to probably close up end of the third quarter, fourth quarter. I mentioned which is important for us, that we have proxy over the membership interest at day one. So we're already working with the owners as if you know the property is ours and we're moving it forward, but the actual final title, closure, et cetera won't happen probably until then in the third quarter or early fourth quarter. Though shares were - it wouldn't be wrong to think of those shares as put on deposit for the transaction.

And the shortfall, because it looks like that the 588,000 was for 2.4, looks like $0.41 a share so there's going to be a shortfall that will owe them more shares, is that correct?

When we issued the shares, we tied it to the value; the shares that they issued and we're closer to where the share price is today. It was a little higher, but it was closer to where the share price is today. On March 31st, I think we were pretty close to our lowest point in terms of our share price so we had to mark that down, but it'll come right back up, I think, as the share price moves forward.

Okay. What's the relationship of Leviston resources to the company?

It's almost identical to the relationship that we had with IAA, but there they have a stronger institutional shareholder base associated with them so that we're constantly working on targeting new investors and bringing new investors into the story. But we do have a facility that allows us more flexibly than the IAA facility to pull equity, raise equity issues here for proceeds, if you will, with them at our discretion.

Is that their only position or is that just adding to their position?

That's their existing position and would add to their position.

Okay. Cycladex, do we anticipate seeing an income from them with our 10% ownership?

Well, so two things, right, Cycladex standalone company, patented technology, working on many, many fronts to commercialize it, getting a lot of international interest. I would expect that we would see, because they're still in a development stage, we would see more value appreciation from our ownership in them. But we also have free and full right to use the technology on our property. So the benefit is we have an ownership stake in whatever value they may accrue, accrete, but we also will have the free right, the direct right to use the technology for our properties.

So they will not be a recipient of the minerals that are on our property?

When you say that let me clarify. They could very well a very specific outcome one, I think that they would hope for is that they designed process facility using their technology that would be deemed feasible. And when I say that, I mean, by a third-party. And if they had a process facility that was deemed feasible by a third party, we would be very supportive of piloting that on our property with our ore. We would get the benefit of all that. And in so far as it comes to our ore and processing our ore and the profits related thereto, they would obviously get a huge benefit in full proof of concept with a fully operating pilot or bigger facility depending on what they wanted to do. So that opportunity exists for them/us together as partners. And I think in fairness it's almost identical to the opportunity that is being created with Itronics. And the difference with the two relationships is just the manner in which we're collaborating. I would say Cycladex is - their standalone company is forging forward hard with a very specific goal that we're incredibly supportive of. We have a supporting role. In the Itronics case we're really working - technically, our teams are working together more similar to what we're doing with Tonogold. So it's all positive, it's all good, it's just sort of a chosen motive that our partners pursue. So we're trying to position ourselves to get the maximum benefit in the - and I would use the term most sensitive capital way in all these cases we're not the deployers of the capital. It could be if we get to certain points in the relationship with Itronics for example, but right now the partners are have been really putting all the capital for work in all cases.

Can you touch on Silver Springs and Daney?

Yes, so I said it a little bit on the call but this the unexpected thing was Blockchains LLC coming in and literally cornering the market on the Industrial Park, I mean they bought up all of the rest of the available acreages inside the Tahoe Reno Industrial Center and the effect of that I guess coupled with USA Parkway being built was that people then started to look on the periphery and north and south of the park, I mean we almost immediately got like three inquiries on our industrial property by the airport in Silver Springs after the law changed announcement. There is also kind of a little funny article that Bloomberg ran saying something like gold mine are looking to from Google and Tesla's presence and they showed like, I think they showed Tesla's G4 landing on Silver Springs Airport which is adjacent to our Industrial Park. So we got a lot of good increase from that which is resulted in a sort of second phase diligence by some of these folks that are looking to step out and expand, also concurrent like coincident with all that happening, there were twenty, there's 20,000 acres adjacent to the Tahoe Reno Industrial Center that is right in between our Industrial Park, which is on 98 acres and the 80,000 acre Industrial Park. That property was owned and planned by the owner, real estate developer out of Las Vegas as a residential big residential development. There was a succession of ownership from father to the son and the son saw all that was happening with Tahoe Reno Industrial Center and about a year ago started making plans to rezone that residential acreage to industrial and I can't remember if it was January or February but in the first quarter, they…

So the on the 98 acre what do you have to provide?

So that the properties listed the 98 acres with the sufficient amount of water for a light industrial use and that's a variable we listed it 20 acre feet of water for $7 million and there's an additional almost 200 acre feet about 180 something, acre feet of water rights that are separately listed for about $4 million, so in total $11 million my guess is that the buyer of the property will want more than 20 acres of water right they may want all of them. We don't think that there's into a you need all of them for the industrial part certainly there are some applications that could would but it's less likely, so $11 million total for those properties.

They were saving enough water for our mining is correct?

Yes, so just as a side point, thank you for bringing that up, so the two reasons that we're talking about the [indiscernible] is in 103 and Silver Springs in 102 we have all the water rights we need and then some for our mining operations and they're fully separate from these that we're talking about mean which is a good thing right. We have a access water through your bottom-line in Silver Springs we'd have water for it but that's not currently on the plan but we have plenty of water for the Comstock there's no issue there.

Okay, good. I'll get back in the queue.

Right. Thanks Harvey.

Thank you.

Thank you. [Operator Instructions] We can go next to Jon Way. Please go ahead. Your line is open.

Hey Jon, how are you?

I'm fine. Good morning.

Good morning.

It sounds like you are busy up there?

Yes, I feel like a good busy, spend a lot of time reestablished in the platform but it feels like things are our forward looking now which is finer and more valuable as we get some traction here.

No, could you back to the CleanTech kind of alternatives group?

Yes.

The non-cyanide and kind of like, what your real objectives that and how much time for you having this are these guys just on the property thing reporting to you from time to time?

Yes, okay, that's great question. So with Cycladex, it's more like that, okay? So they give you good color like they hired two of our former lab chemical engineers and metallurgists, so they're right on site in that regard every day working in the labs, crushing samples, testing materials. They also have an office in Carson City in the envision lab and there but they've been in the some of the old Soviet provinces. They're really working the materials I would say more independent of us right we get updates that are weekly meeting on progress and whenever there's a need for support. We're happy to provide so that I guess say that's number one with electronics its offsite all the work and all the samples have been going through independent laboratory. The testing has been sponsored by there at engineers and the idea really is to see that their technology has been proven in other applications. So it's been used in extracting silver from fluid, it's been used for making fertilizer, it's been used for making electronic or recycling or electronic strap and mining from like circuit board kind of notions. That concept is could we together figure out a way to making it efficient, effective, practical on ore, right on mineralized materials and so it was kind of a, it was a very different motion of application. But for a very known established technology, so because they knew that they were willing to invest the initial amount of money and support to do all the testing, we were just providing for most intensive purposes providing samples of our ores and now for ores, but we feel right now we are to the point where we could absolutely collaborate on a specific feasibility study specifically on our ores and…

Is everything called just from the leach pad of those columns or just - are they gone into that mine to some level?

So just to compare and contrast, for Cycladex that we've been using Dayton ores the whole time, so it's do you want to call that Virgin ore and the test had been done on materials then we had history on with Itronics all of the initial testing we've done from samples on the leach pad and we've really surprising results and so just recently delivered Virgin ore samples from the Dayton because we don't see anything in the battery of test on the previously processed or that had indicated when work on Virgin ore having said that you could argue and so harder to do on previously processed [Technical Difficulty] with less gold and silver content in there to begin with because we already processed at the first time. So in reprocessing the benefits are certainly the value of the minerals that you can get out. But it also ties to lowering your reclamation cost and maybe even eliminating some of your reclamation cost and capital cost for leaching. If it works straight out, the process will look different than a leach pad. So that's what we are looking to study right now. Is there a better faster, cheaper way to do it with these materials we think there is a good possibility that there is.

How are you going to monetize the relationship with Itronics?

So we will come up with an agreement, certainly we are doing this much more collaboratively with them. Certainly, if they work the existing mines on the Comstock will benefit directly, but we are working on that campaigns right now, working very well but we don't, we are still too early like I think the screening net level economic work is pretty important variable before we even know if we have something to move forward with, but we are getting very close.

Thanks. One last thing, kind of a real simple question; we always talk about gold equivalent, the ratio of the silver and gold that are on the property? When I often believe it's so close to [Technical Difficulty].

Yes, so there is two answers, two different answers, right. One is on our property, this is holding true with all the work that I was doing with Lucerne and certainly all the experience that we've already have it closer, it's over 10 to one. So we have at least 10 ounces of silver and our resources to make sure every ounce of gold. So that's a straighter answer. On the gold equivalent question, it's just time that silver is trading at values that are if one area of gold meaning gold to silver value is 81 and most people would expect that number certainly to be less than 61 the famous discussion is always that it was historically 16 to one. No, if you get anywhere near 60, which is a - most people think is a normal or higher number, not a low number. Silver is going up faster than gold. Now I'm not saying that I did that per say I think gold has a long way to go up too, considering what's going on with money but silver's ratio to it is clearly handicap. I don't - now I think if you are one of the people that I guess on that ratio and there a lot of people that do you would say Silver is going to move faster than gold.

Basically.

Yes, yes. And we have a lot of it.

Thank you.

All right, thanks Jon. Thank you.

Bye-bye.

Thank you. And the time allowed for questions and answers has come to a close. I would like to now turn the call back over to Mr. Gasperis for closing remarks.

Thank you, Savannah. Well, folks thank you for your time, thank you for your questions. I do really encourage anyone that can to come out and visit us; May 31st is the annual meeting. It's going to be held at the hotel, the Gold Hill Hotel by the Comstock. And a lot of the stuff that we've introduced here will be - can be discussed, covered, touched, debated, and it's going to be a great meeting. So I look forward to all that, and anyone who has follow-up questions, please don't hesitate to reach Zack or I, may your convenience. Thank you.

And this does conclude today's call. Thank you everyone for your participation. You may disconnect at any time, and have a great day.