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December 2000

December 2000 Newsletter

Dear Members and Supporters:

This letter is to update you on current events regarding gambling casinos in the Thousand Islands Region.

Casino on the Canadian side of the St Lawrence River . . .

There will be a casino on the Canadian side of the St Lawrence River. All four townships, from Gananoque to Prescott voted in favor of a casino. It will be a so-called "charity" casino, which simply means that 5% of the slot machine revenues will be funneled back into the local community to offset increased social costs resulting from problem gambling. (It is important to note that the Canadian government acknowledges the negative effects of casino gambling; they have placed a moratorium on any future casinos with this one exception.) The winning site has yet to be determined but the first choice of the Ontario Gaming Commission has always been in Lansdowne, near the Thousand Islands Bridge.

Anti-gambling forces in Canada waged a valiant effort to prevent this from happening but it was not enough. They were fighting their own provincial government and the government was playing the townships against each other stating that one of these communities was going to get the added revenue. It was clearly a case of government manipulation.

How does this impact us? In a word, negatively!

As has been clearly documented in other areas under similar circumstances, we can expect crime to increase. We will see more fraud and bankruptcies, more domestic violence and child abuse. We will see gamblers from our communities headed over the bridge to gamble and we'll see them coming back with less money and more problems. These problems will take their toll on the life of our communities.

Those businesses that would seek profits from gambling will want a piece of the action. They will see profits going to Canada and there will be increased pressure for a competing facility on the US side of the border. This is what has happened in Detroit, where four new casinos are being built; and in Niagara Falls, NY, where plans for a new casino are in the works. There is no reason to think that things will be any different here.

The stakes have been raised!

Nevada Gold & Casinos, Inc. operating here as Blue Diamond Resorts, has requested a meeting with the Town of Alexandria Planning Board for sometime over the winter to present plans for development of the property. We continue to get mixed messages from the developer. They have stated that their plans will not include a casino. However, the Company's Nov. 15, 2000 second quarter earnings announcement describes the purchase of "over 800 acres of New York's Wellesley Island with plans to develop a resort that has potential for an Indian-based casino". The Company's stock (UWIN) is publicly traded over the counter.

Any plan they submit will be required to go through extensive review under the State Environmental Quality Review Act (SEQR). The property has received positive declaration as a sensitive area from the NY State Dept. of Environmental Conservation (DEC), which means that the review process will follow the "long form" through the SEQR process. This process will not begin until a proposal is submitted.

In consultation with Patricia Marks, our Washington attorney, we are continuing to gather petitions and endorsements from community groups. We will be lobbying our congressman and senators, presenting them with petitions, endorsements and reasons why they should oppose casino development in this area. When congress goes back in session, we will begin to make our position understood in congress and with officials at the Dept. of Interior and the Bureau of Indian Affairs.

At this writing, we are continuing to reach out to and educate local community groups, politicians, town and county planning boards. Education is the key and it is of primary importance that we have our facts straight and that the impacts, both positive and negative are presented. It is clear to us that negative impacts are greater and that a comprehensive analysis will show that a casino will hurt rather than help the local economy, the culture and life of the community and the environment.

Welcome to a New Board Member . . . John McCullough

We welcome John McCullough as a new member of our board. John and his family reside on Cuba Island, near Alexandria Bay. He's been active in the Thousand Islands Safe Boating Association and was active in the SEQR review of the Edgewood development. We welcome both his energy and his expertise in service to this cause.

Continued Action and Support is Required

We continue to need your support, now more than ever. This will be a long and expensive battle that must be won. The consequences are enormous for our economy, our culture and social well being and our environment. You will be hearing from us, in another letter, regarding our financial needs for the coming year. In the meantime please continue:

· Gathering signatures for the petitions

· Writing and expressing your opinions to representatives locally, in Albany and Washington

· Educating yourselves, your friends and neighbors

To assist you in these efforts, we enclose a list of names and addresses of key legislators and important points you may want to include in your conversations and correspondence.

Thanks again for your help and support!!

Steve Taylor David Garlock