Message from the President and CEO 
2012 has been challenging so far for Malaga, with lower mine output, lower grades and lower sale price for our tungsten concentrate. 
During the month of September, there were several power outages from the National Grid which had an adverse effect on our recovery rate. Then, an accidental break of the transmission line severed our access to hydro-electrical power and we had to use generators on site to compensate for energy. This option turned out to be too costly to sustain. In addition, there were no copper by-product sales during Q3 as the tolling plant was shut down during this period.  
As a result, operating costs have thus increased significantly and we are reporting a quarterly loss for the first time since 2010. In order to reduce costs and preserve cash, the mine and production plant have been put on care and maintenance. The repairs to the hydro-electric line are underway, materials have been purchased and equipment transported on site.  Repairs should be completed by the end of November. 
We are also reviewing the mine development plan to improve our efficiency. The focus is to restart the mine and the production plant and come back to profitability by supplying products to our client. 
The Company is in the process of negotiating equity and debt financings in order to strengthen its financial situation and manage the current environment of lower tungsten prices.  Significant capital expenditures have been made in 2011 and 2012 to develop promising zones and to complete the construction of the new tailings pond. 
We believe that we can get our mining and milling activities back on track with the adequate support from capital markets and our stakeholders, and we thank our client, suppliers and employees for their support during this particularly difficult period.