One of the more publicized stories in recent months has been the spectacular sustained rise in the price of gold. From June of 1999, gold prices have climbed steadily and rapidly from just over $250/ounce to their current level near $900/ounce, with a spike above $1000/ounce, an increase of approximately 250% in less than ten years. Many observers are expecting further increases, and predictions of $1200 or more are not uncommon. Even considering the strong performance of gold prices in recent years, there is additional room for growth in the price of gold. According to the German Bank Commerzbank, the 1980 record gold price of $871 adjusted for inflation would equate to $2,384 an ounce in 2008 dollars (Source: Spiegal Online/International). Even with gold currently fetching nearly $900 per ounce, there is clearly room for further price appreciation, particularly with growing concerns over recession. James Turk, founder of GoldMoney, is even more bullish, and he claims that the U.S. government has altered the way that it calculates the Consumer Price Index in such a way that it under-represents the effects of inflation. According to Turk, the record gold price in 1980 above $850/ounce would be closer to $6200 in 2008 dollars (Source: goldprice.org).

Nilam Resources, Inc. (OTCBB: NILR) is a gold production and geological exploration currently developing several major gold mining operations in the highly productive precious metal regions of Peru. Little know is the fact that Peru is the largest producer of silver in the world, and is also the largest producer of gold in Latin America as well as one of the five most prolific gold producing countries in the world. The Company’s Board of Directors and management team collectively have a wealth of experience in virtually all phases of mining and exploration, as well as vital management and financial expertise that are invaluable to the success of the Company as it pursues long-term success in the precious metals industry. Nilam Resources and its management are convinced that current economic conditions and trends project strong growth in precious metals, and the Company is actively engaged in efforts to capitalize on these opportunities.

Recently, numerous South American mining companies have demonstrated some of the remarkable success that is possible in this region. For instance, New Oroperu Resources (NOPUF) and Campania de Minas Buenaventura S.a. (BVN), both operators of gold mines in Peru, have seen their shares appreciate 600% and 166.8% respectively in approximately twelve months. Salazar Resources Ltd. (SRLZF), focused on gold, silver and copper mining in Ecuador, has seen growth of 212.5%, and Exeter Resource Corp (XRA), operating in Argentina and Chile, has been the beneficiary of an increase of 153.9% in share price.

Nilam Resources is actively developing no less than three substantial gold properties in the prolific precious metal producing regions of Peru. The Pativilca (Baco) mine is an established gold producing plant in Peru consisting of 2,100 hectares of mining properties with the presence of gold veins in the North-Central coast of Peru. The LLIPA project is located in the center of Peru, in the Llipa district with mining operations 380 km away from Lima, the capital of Peru. LLIPA is constituted by two major mining concessions, The Prospera mine and La Prospera XXI. El Varon is an ex-mining project that was closed 20 years ago due to the unexpected passing of the previous owner. The most recent laboratory analysis has shown mineral deposits rich in gold, silver and copper metals. The Pativilca (Baco) is an established mining project with gold production of 50 tonnes of ore per day. The Company’s initial goal is to increase the ore production to 500 tonnes/day. Nilam Resources will develop mining infrastructure for metal extraction in two other operations, after Pativilca mine is operating at its full capacity. El Varon and LLIPA Projects have shown large mineral deposits in the early exploration stages. By focusing our mining operation in a fairly concentrated geographical range, NILR has the ability to streamline its operations and provide efficient infrastructure for producing precious metal commodities.