1060910--8/13/2009--GENERAL_METALS

related topics

{gas, price, oil}

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{personnel, key, retain}

{regulation, government, change}

We do not expect positive cash flow from operations in the near term. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business and as a result may be required to scale back or cease operations for our business. We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations. Because of the early stage of development and the nature of our business, our securities are considered highly speculative. As our properties are in the exploration and development stage there can be no assurance that we will establish commercial discoveries on our properties. Because of the unique difficulties and uncertainties inherent in mineral exploration ventures, we face a high risk of business failure. Because of the speculative nature of exploration of mineral properties, there is no assurance that our exploration activities will result in the discovery of new commercially exploitable quantities of minerals. Because we anticipate our operating expenses will increase prior to our earning revenues, we may never achieve profitability. Because of the inherent dangers involved in mineral exploration, there is a risk that we may incur liability or damages as we conduct our business. If our exploration costs are higher than anticipated, then our profitability will be adversely affected. As we face intense competition in the mining industry, we will have to compete with our competitors for financing and for qualified managerial and technical employees. As we undertake exploration of our mineral claim, we will be subject to compliance with government regulation that may increase the anticipated cost of our exploration program. Any change to government regulation/administrative practices may have a negative impact on our ability to operate and our profitability. Our By-laws contain provisions indemnifying our officers and directors against all costs, charges and expenses incurred by them. Investors' interests in our company will be diluted and investors may suffer dilution in their net book value per share if we issue additional shares for significant amount of services or raise funds through the sale of equity securities. Some of our directors and officers are residents of countries other than the United States and investors may have difficulty enforcing any judgments against such persons within the United States. Our stock is a penny stock. Trading of our stock may be restricted by the Securities and Exchange Commission s penny stock regulations and the Financial Industry Regulatory Authority s sales practice requirements, which may limit a stockholder's ability to buy and sell our stock.

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1060910--8/13/2009--GENERAL_METALS_CORP