42316--3/28/2006--GOLDFIELD

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Risks related to our electrical construction operations We derive a significant portion of our revenue from a small group of customers. The loss of one or more of these customers could negatively impact our revenues. The electrical construction industry is highly competitive, and if we are unable to compete effectively, our financial performance could be harmed. Our business is affected by the spending patterns of our customers and adverse weather conditions, exposing us to variable quarterly results. An adverse change in economic conditions in the electric utility industry could reduce the demand for our services. Skilled labor shortages and increased labor costs could negatively affect our ability to compete for new projects. Our use of percentage-of-completion accounting could result in a reduction or elimination of previously reported profits. Amounts included in our backlog may not result in revenue or translate into profits. Our projects are subject to numerous hazards. If we do not maintain an adequate safety record, we may be ineligible to bid on certain projects, could be terminated from existing projects and could have difficulty procuring adequate insurance. An inability to obtain bonding would have a negative impact on our operations and results. Risks related to our real estate development operations We engage in real estate activities which are speculative and involve a high degree of risk An adverse change in economic conditions could reduce the demand for condominiums and, as a result, could reduce our earnings. The multifamily housing industry is highly competitive and, if others are more successful, our business could decline. If land is not available at reasonable prices, our sales and earnings could decrease. If the market value of our land and developments drops significantly, our profits could decrease. Government regulations and legal challenges may delay the start or completion of our developments, increase our expenses or limit our building activities, which could have a negative impact on our operations. Increases in taxes or government fees could increase our costs, and adverse changes in tax laws could reduce customer demand for our condominiums. Our business is concentrated in Florida, which increases our exposure to local adverse events. Adverse weather conditions and conditions in nature beyond our control could significantly impact our quarterly revenues and profitability. If we experience shortages of labor and supplies or other circumstances beyond our control, there could be delays or increased costs in developing our condominiums, which could adversely affect our operating results. Product liability litigation and warranty claims that arise in the ordinary course of business may be costly, which could adversely affect our business. If we are not able to obtain suitable financing, our business may decline. If our potential customers are not able to obtain suitable financing, our business may decline. We depend upon the availability and skill of general contractors and subcontractors. We rely on outside professionals whose errors could increase our costs. Our revenues and operating results have fluctuated in the past and may continue to do so in the future. We may be subject to environmental liabilities that could adversely affect our results of operations or the value of our properties. Risks related to our business We could be adversely affected by the loss of key management personnel. We could be adversely affected by liabilities associated with our former mining business.

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42316--3/28/2006--GOLDFIELD_CORP