Good day ladies and gentlemen. Welcome to the Comstock Mining announces Third Quarter 2012 Results and Business Update Conference Call. [Operator Instructions] As a reminder, this call is being recorded. It is now my pleasure to introduce you to your host Mr. Corrado De Gasperis. Please go ahead Mr. De Gasperis.

Thank you, Naomi. Good morning and afternoon everyone. My name is Corrado De Gasperis, President and CEO of Comstock Mining and welcome to our call. I will provide a brief summary of the information included in last week’s 10-Q and our recent press releases. If you don't have a copy of those releases you will find a copy on our website at www.comstockmining.com under news/press releases. Please also remind you that I make some forward-looking statements on this call. Any statements related to matters that are not historical facts may constitute forward-looking statements. These statements are based on current expectations and those statements are subject to the same risks and uncertainties that would cause actual results to differ materially. These risks and uncertainties are detailed in the reports of the company with the SEC and those risks are identified also in the press releases and all forward-looking statements made during this call are subject to those same risks and other risks that we can’t identify. I will now briefly review production, drilling and mining development and wrap up with a few corporate highlights before we move on to Q&A. Regarding production, we began pouring gold and silver last a few days of September and we have been pouring since. Through the end of October the company shipped over 1,250 ounces of gold and over 14,800 ounces of silver. In addition, we delivered 28 ounces of gold and 292 ounces of silver to the Northwest Territorial Mint, in Dayton in Nevada to facilitate the minting of the commemorative bar celebrating the first pour. These bars were recently delivered to the owners that we've been getting just outstanding feedback on their quality; the Dore bars are just beautiful. Through early November, the combined sale with precious metals is nearly $3 million including…

[Operator Instructions] And our first question comes from Robert Shucker [ph] and he is a private investor.

Noticed in your third quarter results, there was an item in there for $2.6 million or changes in the fair value of derivatives?

Yes, sir.

And I was just wondering that gold and silver had a terrific quarter, gold was up by $160 and silver was about $6. So perhaps you have some positions against them with those rising prices or can you explain that charge to me?

Absolutely, thank you for the question. So first there is really 2 components of the accounting that we have to do for derivative liabilities. One, which is coming very near to its end is that the preferred stock that we have in our capital structure had some protection in terms of the annual dividends that were paid in the first 3 years and that the additional dividend paid is actually accounted for as its driven liability. The good news on that front is that we are into the third year for certain and so that number will go to 0 in the course of the next 9 or 10 months, so that's one piece of it. The second part of that which relates more particularly [indiscernible] question is that in July, we did a $5 million loan that we affectively funded by selling about 3,700 ounces of gold forward at $1,600 an ounce for 2013 and so that is essentially the other material piece of the derivative liability accounting. So as gold prices go up, that number will look like a bigger liability as gold numbers go down that number will be smaller, but the economic reality is that we are simply, of the 20,000 ounces that we intend to produce and sell next year, 3,700 will effectively be sold at 1,600 because of that loan arrangement and I think for all intents and purposes that's it in a nutshell.

That's really good news.

Yes, we are not hedged against gold and obviously we are very bullish. I have been bullish but even at the Hard Asset Conference over the weekend fundamentally with the continued fiscal policies and continued fiscal problems [indiscernible] being up.

Thank you. Our next question comes from Tom Childs[ph] and he is also a private Investor.

So I know now that all the activity’s on the west side of 341 and you’ve had terrific results on the east side of 341 and your plan is to obviously develop that. Can you talk about route 341 and how that's going to be dealt with in the Lucerne mine to encompass both east and west sides?

Yes, very good question. So we are engineered, developed and mining on the west side of the state route. Our permitting activities with the state encompass both sides of the state route. The current permit with the county really just encompasses the current mine plan and there is a tremendous amount of ore that also sits right underneath the state route. The state route is actually a private road and the road is owned by us and the road has been moved on multiple occasions to actually 4 historical mining activities. And so the highest preference that we currently have in our plan and that the county shares with us in terms of intent would be after some amount of mining on the west side, that we would shift just a smaller portion of that road to the west which would not only allow for the ore immediately beneath it but certainly the incredible discoveries that we keep having as we move east. And so that's sort of the number one option. There are others that are being talked about including by the state partner transportation, all favorable, but I think that's without having a final plan and without guaranteeing any end result of course, that's the current scenario that we are planning for.

So are you, when you talk about a shift of the highway are you saying a couple of hundred yards or the next canyon over?

No, no. There's a notion of the highway moving a few hundred yards in being very nicely landscaped into the sort of the wall where we currently have the existing mining activity. The mine plan doesn’t take out the wall at mine end, and so we would. It would very nicely nestle along that landscape if you will and in fact that’s exactly where the world [ph] was previously.

Our next question comes from Jeff Wright and he is from Global Hunter Securities.

So I did have a couple quick questions on the ramp up and recoveries. Can you touch on what you think the recoveries can get to after you’ve got a quarter, just a few quarters of production under your belt and what challenges have you guys seen with the heap leach and [indiscernible] processing to-date?

Great. So, first on the recoveries. The initial sequences of ore that we’re bringing to the pad, are averaging in the metallurgy are averaging about 70% for the gold and 50% for the silver. So far we have not had any operational issues at all. In fact, I would say 2 positive things; Solution breakthrough and for each of the 3 pads that we've put online has been less than 10 days and in some cases even much quicker than that. I think one was 6-day solution break through. So we're having very, very good fluid flow through the heap leaches and despite them being the first 3 pads, without being put under leach. The second is the third pad which is now under leach is meaningfully larger than the first 2. The first 2 averaged about 50,000 ton average leach. The last one was about 70,000 tonnes and I mentioned to you that we have already over 210,000 on the pad so that fourth pad is actually forming up very, very well as we speak. The rate will be about -- and something less than, but about one pad being brought under drip and under leach about for a month. From a recovery standpoint everything seems to be on plan except that we are getting a higher rate of silver. So we haven’t done it’s still too early in the process to have reconciliations of the ultimate yields, but the silver seems to be leaching higher, so that’s been very positive. Our resource that we have been pulling from has about -- it’s not too far off on the average of the entire resource, maybe a little bit higher than 10 ounces of silver for every ounce of gold closer to let’s say to about 11 ounces of silver for every ounce of gold in terms of what we are extracting, but what’s odd is we are leaching about 11 ounces of silver for every ounce of gold and so far the gold margins seem okay. So the initial presumption is that we are leaching a little higher in terms of silver. So we will have to -- we are keeping a close eye on that as we get sufficient data for reconciliation. And could also be the rate at which silver leaching versus gold versus the absolute yield, so unfortunately my answer to your question is, to the best of our knowledge right now, about 70% gold and probably a little higher than 50% silver.

One last question, you mentioned working with the BLM on the permitting for the railway road. That’s just basically amending the existing permits, correct? You don’t have to do any additional environmental or any other studies that I am aware of, correct?

Actually, we are. That's the – I’m really glad that you asked the question because it was one of the developments that I wanted to speak to and I didn't say so specifically. So we do have an existing right away which were not using right now because of the issues that we ran into last -- earlier this year with the BLM, they did grant us a second right away which is the one that we are currently using and required some amount of trafficking and hauling on the state route, but what we’ve actually concluded to do with them right now, and we’ve signed the memorandum of understanding for scoping with them now is to actually permit over the existing right away that we have, a much bigger, much wider more robust right away. So there are 3 implications of that, one is that we do have some environmental and biological studies to complete, we have done some cultural studies already, those were perquisite to the scoping of the MOUs, so those are done, the MOU is done and now we will get into those other studies and processes. It actually presented an opportunity for us to expand this scope of studies broader in case there is other federal permitting that might become foreseeable and practical to us as we go forward. We’ll sort of kill 2 birds with 1 stone. And then lastly, for lack of a more technical term, the fatter right away, the bigger road will allow much more productivity for us, so we won’t only grab the efficiency of eliminating the redundancies of being on state route , but we will also have much more throughput in terms of haulage back and forth from the mine. So it’s a better longer term answer for us. It will take a little bit longer to do that, just a few months which is why we are still talking about 6 months to go, but I think the end result would be much, much better for us.

Okay, so when you say 6 months we should anticipate that the studies would be completed in Q2 and you would submit everything to BLM late Q2 early Q3 next year, does that sound right?

No, no, so the process that's laid out in the MOU is that scoping has been complete and now we will do kick-off meetings literally next week and then there will be public processes that will occur in the first quarter and it will all drive towards -- if you give a little buffer for Thanksgiving and Christmas it will all drive towards permitting probably late in the second quarter.

Our next question comes from the Bill Gibson [ph] and he is from Legend Merchant.

You talked briefly about Spring Valley and then went into the drill results on the east side. Does that same trend continue into Spring Valley?

Yes. In January and February, primarily because we were waiting to clear some of the prerequisites to get back into drilling in Lucerne, we did 14 river circulation holes in the Spring Valley, and just as importantly we did 2 core holes averaging about 700 feet a piece and the entire objective of those 2 core holes was to validate structurally that the Spring Valley is just a direct extension of the Dayton structure. Spring Valley is where we have the least amount of geological data. We had a Discovery hole there 38 feet from the surface in 2009 hitting high grade or right below some of the sediment. We've had some geophysical scanning which for all intents and purposes shows a continued sort of mineralized trend coming down from the Lucerne through Dayton and right into Spring Valley, but we didn't really have real substantive core samples to validate that’s the same structure, and so everything that we've analyzed to date tells us that it is which is very, very exciting for us. There’s a really meaningful stair step down when you go from the geological data and the number of holes that we have in Lucerne then down to Dayton which is significantly less than Lucerne than down to the Spring Valley. But when you think that Lucerne itself has already validated over 2.3 million gold equivalent ounces, none of those numbers including the update that's forthcoming here based on what we just talked about, and that the Dayton so far has only validated a 0.5 million ounces and Spring Valley has none. And you have it in your mind that structurally its one interconnected mineralized trend and that none of what we've learned in the Dayton both near surface and at depth and structurally and none of what we've learned at Spring Valley both near surface, at depth and structurally indicates that there's any differences. So for us, we are very, very excited about ultimately getting to Spring Valley, but it will be a challenge for us just to finish the Lucerne and the Dayton here in 2013, and I mean it being a challenge because both of those resources are still open on 3 sides and at depths. So from my view, we said it sort of this way before, we feel like we're just scratching the surface, and these 20 holes in the east side, I don't think got much of a reaction from people. I don't know probably because it was right around presidential elections or something, but the results are just outstanding. And to your question, we think that most of the center south of the Comstock is completely undiscovered country.

Our next question comes from Allen [indiscernible]. He is also from personal investment.

I have 2 quick questions. So first of all will you be selling more of bars and my second question is why was the IPO lower than the current market value?

In terms of the bars, we sent over the button, the first quarter had 3 bars and a button. The button was less than 300 ounces as I had mentioned earlier. For our estimate of how many bars the mint could print, we sold out in like 4 days. I just recently learned they were able to squeeze out like 18 or 19 more than they thought. I mean, we really weren’t hung up on it because all of the excess material gets re-melted. So there is absolutely no loss of metal in that process. But I guess I am saying publicly on the phone here that we have a few more that people are already clamoring for it. I really didn’t know how the Dore would mend. I was personally a little bit concerned. They are just beautiful and we are getting absolutely fantastic feedback from almost everybody at how nice they work. So I suspect we will very quickly here sell out the rest of those bars. I guess if anyone’s interested just send me an email and I will give you the back door link to the ordering process, but I suspect they will be gone pretty quick here. In terms of the offering, we did it -- there was a lot of volatility and the market’s been very, very difficult. We’ve always priced our deals at or very, very near or the market price, and we always in addition to that, look to place it with only the absolute best investors. So I think that did occur this time and we could not feel better about the types of funds that showed an interest. I would say 2 things about that, both in terms of institutions that already were familiar with the story that chose to…

And our next question comes from Jack Albright [ph]. He is a private investor.

You answered most of my questions so far. I have one, when you move the state route, how is that going to impact moving the ore?

Well, I don't have -- well, so the answer to that question fundamentally lies with the mine plan. Let me say that the initial mine by design was intended to be at least 4 years long. We don't necessarily plan to operate it for 4 years and in fact now with the recent drilling results, we are sure that it’s going to be well over 5 years if not 6 years of mine life. Again not that that’s our intention to mine it that long but that is what exists on the west side and very, very shallow scope of a pit. Ultimately, there's already 2 to 3x that amount of work sitting under the road and just to the east of that and so what we would really like to do is get the rest of that infill drilling in Lucerne and then engineer if you will the smartest expansion, the smartest evolution, the smartest phasing which minimizes disruption but optimizes our access to the ore. So the real answer to your question is we don't really know yet but we don't see that moving of the asphalt or relocation if you will of the road would have any negative effect on any of the ore. All its going to do is allow us a more efficient access to it.

Okay sounds like you guys are right on top of everything. It sounds great.

And one thing Jack too, this is what I was trying to say in my first point; I don't think that moving of the road is a near-term event. We still have a lot of drilling. We still have a lot of engineering and then we still have a lot of mine life right before we even get to that point. It’s really a more intermediate, few years away kind of thing.

Well it seems like you are having quite a bit of trouble with the town’s people on that highway and the road and the BLM and everything. I just wondered if moving that road is going to impact any problem with the towns [ph]?

No, it’s been probably one of the more discussed -- even though it’s still so far away and not certain, it’s been one of the more discussed, openly discussed. It was referred to I think in our very first technical report. So I think it’s a known entity in the sense that it’s possible so it’s not really created any object[ph] to locally.

I have another question about the Gold Hill Hotel. We never hear too much about the financial stairs [ph] of that?

Yes, the hotel is improving meaningfully. It’s very, very small in the grand scheme of everything that we are talking about. But the revenue in year-to-year comparisons recently has been up. The expenses are down. It’s going now into the cold season. So the hours are retracted. The staffing is retracted and then we’re going through the planning process for it but for most intents and purposes its stable for local engagement, it’s been outstanding for us. We get a lot of visitation and a lot of intention from important people because of that venue, I think rather than just having [indiscernible] in the mine office. We have 2 hour to 3 hour sessions in the room there and it’s a relatively small building, it only has about 12 rooms in it.

Right, we stayed there and had a wonderful trip. Okay so do you think they are profitable and not a loss?

No, in the last 12 months it operated at a small loss. Our attitude is to ensure and work very hard so that it’s breakeven, because it’s at a tremendous focal point for not just us, but really for the whole community.

One question [indiscernible] package.

Oh man [indiscernible]. I have to call you later to thank you specifically for that.

[Operator Instructions] Our next question comes from Jake Gun [ph] and he is from Rockport Global Advisors [ph].

Do you believe the recent election results will have or have had any impact on the company?

Good question. I knew politics were going to creep in to this Jason a little later. So well, [indiscernible] let me just both comment very briefly. I think everybody is like mind. The results really gives more certain [indiscernible] from a monetary policy standpoint, we're going to get a lot more the same. We don’t really need to talk much more about that, now with the federal deficit remaining at a $100 billion a month and well over $16 trillion in total. So I think for sure, that’s one of the reasons that we would be bullish in gold. But maybe more importantly, locally, we saw county commissioners come up for election in both counties, both Storey and Lyon County and it was very interesting to watch because the sentiment and some of the polling that we were able to get access to suggested strongly that -- and this is I am sure not going to be a surprise to anybody -- that if you were pro jobs and pro economic development and very importantly pro mining that you would get reelected. It was pretty much the message in the polls. And although that sounds like obvious for Nevada, it’s not necessarily so obvious for this region in terms of mining. So it was very, very encouraging for us to see that and we saw thought it was outstanding. And in terms of the results of the election, we could not be happier with the local commissioners that won, all very supportive of business and all very supportive of our activity. There was actually a very funny quote that I was just reading yesterday. There is a television, a political television show here called Nevada NewsMakers it’s run by Sam Shad and it’s probably the most watched political show, kind…

And your last question comes from, I am sorry, if I mispronounce your last name again, Mark Peterzach [ph] and he is a private investor.

] Could you speak to the large drop in your share price in the days prior to the announcement of public offering and the growing interest, short interest your stock?

Yes, I say, I can't impart Mark, thank you very much for the question. I think that from my perspective we had a very good momentum that was in the stock leading up to the first pour, not perfectly, but it did go inside with the last post Bernanke comments on announcing Q3 and the resulting run up of gold to almost $1800. The first pour, we thought was just an absolutely fantastic objective and set the stage for more, but there seems to be from that point forward some loss of momentum that I believe did also coincide with the gold price sort of retracting back down. But I think that there was more of an evolution in September and in October of this increasing skepticism about junior companies that aren't producing positive cash flow and certainly the junior expiration folks. The market has been very, very tough on those people. I think probably people are watching our balance sheets and performance even more closely than they have before. I think there's a strong sentiment about poor project management in the industry, and I think there's very, very high liquidity fears. So I think that there is no precise answer, but we definitely saw a trend that affected us, if not even more in that month of October sort of down if you will. I really can't speak to the day or 2 before, it was very disappointing to us. We are proud and happy that there is such strong and immediate access if needed to capital. We believe that now we have a very, very strong balance sheet. We don't see it impairing in any way, shape or form, the value creation that we have to take. We think that and we intended the dilution to be minimal. We kept it small. It was a little higher than it could have been with better pricing but going into the holidays and going into this very aggressive ramp up and frankly having signed up the MOU with the BLM at least we knew it was imminent and we felt it was critical to just put the capital raise behind us and march forward. I think similar to what happened last February, I think it’s going to bode very, very well for us moving forward. But I don't know specifically about the day before. I do know the short interest was growing for a period. It’s not in any way, shape or form monumental or necessary even concerning. In part it’s a little annoying, but in part it does speak to some of the sentiment in the market. There is pervasive fear of liquidity and capital resources and from what we heard at the conference, it’s only going to get tougher.

Thank you. There are no further questions at this time. Please continue.

Well, I would just like to summarize by thanking everybody for the interest. We have well over, and usually do, a 100 participants on the call. I wish all of you a very safe and happy Thanksgiving, and please feel free if you have any follow-ups or if there's something we missed. Don't hesitate to call myself, Kim Shipley. We are always happy to answer any questions. Thank you so much.

Ladies and gentlemen this concludes the conference call for today. We thank you for your participation. You may now disconnect your lines and have a great day.