Legal Disclaimer:

The Developer and the Village at Wolf Creek have been threatened with a series of litigation actions directed against Mineral County’s plat approval for the Village, NEPA litigation against the United States Forest Service in conjunction with their proposed Access Road and Utility Easement permits and easements, and that other litigation may be initiated by the opponents of the Village at Wolf Creek in the future. Further, we are informing you of pending appeal litigation in Colorado Courts regarding the 2004 Final Plat and Phase One Plat approval by Mineral County and the on-going litigation in Federal Court between the Wolf Creek Ski Corporation and the Leavell McCombs Joint Venture and each litigant is alleging substantial damages against the other party.

While the Developer does not believe any of this litigation will seriously affect, in an adverse way, the ability of the Developer to develop and market the Village at Wolf Creek in a timely fashion, WE CANNOT GUARANTEE ANY PARTICULAR RESULT OR DECISION FROM THE EXISTING LAWSUITS. We are providing you advance written notice of these litigation actions and prospective actions, so that, prior to any investment or financial commitment all serious investors will be provided a then current litigation report, so that their decisions on any transaction and the consumation thereof can be based on the conduct and reliance upon their own independent investigations and evaluations regarding the prospective outcome of any such on-going or future litigation actions, on their future investment transactions.