Progress Reports - 2006

Cerros Sands Ltd. is pleased to announce during the:

Fourth Quarter of 2006

Excavation of 2 legs of the Channel has been completed and the Marina Area excavation is underway.

The Department of the Environment has approved extensions to the 1st 2 legs of the channel and this approval has been incorporation in design changes to the next section of Phase 1. This will upgrade 30 off-water parcels to deep water channel properties. Enough product is being removed from the channel to fill all the channel parcels and provide additional product for roads and some nice rocks for landscaping.

A surveyor has been procured to complete the next section of parcels.

With the planting of new trees, we have built large “planter boxes” to protect and enhance their growth. Our project has a tremendous amount of “black dirt” as for over 2000 years of forest material has fallen on this property.

Power continues to be discussed with owners of other parcels.

A dredge has been contracted to complete the Beach Work in Phase 1. Fresh water has been found near the surface, however we do not feel it will be enough to supply Cerros Sands. We have given a deposit to the Belize Government for the use of their air rotary well rig. The well site has been prepared now that the weather is better. Catch/Containment and Filtering still appears the most viable alternative.

Additional soil samples have been requested by Cisco Construction in Belize City. These have been collected and will be sent in the next couple of weeks.

Third Quarter of 2006

Excavation has begun on the Channel. This will be 80 feet across with over One Mile of channel.

Another phase of roadwork is underway.

We are planting more trees and have begun adding bushes and ground cover. Once again, there is increased Bird Life on our site.

Numerous Purchased parcels are being filled to buyer’s specifications utilizing Marl and Topsoil from our site.

Mitchell-Moody and Associates, Architects for the 1st home designs have advised they will have 4 plans ready within the month of October.

First American Title Company of Miami Florida issued The Master Title Policy for Cerros Sands.

We are continuing to contact Property owners on the Cerros Peninsula to cooperate in the Joint Venture to bring power to the peninsula.

Beach improvement is continuing using sands and soils native to our specific area. Well samples are being sent out for analysis. In back-up we have an agreement with the Government for well drilling. This site has been filled and is ready should this well be needed.

Additional testing is being done on our Soils. The lab in Belize City is being sent more samples. These tests are being done to determine the best sealant for our roads. Second Quarter of 2006

First American Title Company of Miami Florida has been provided the final documents necessary to provide a Master Title Policy for Cerros Sands.

Some property owners on the Cerros Peninsula have agreed to cooperate in the Joint Venture to bring power to the peninsula. Continuing efforts are underway to enlist more property owners.

Beach improvement is continuing. We are only using sands and soils native to our specific area. Purchased parcels are being filled to buyer’s specifications utilizing Marl and Topsoil from our site.

Revisions have been submitted to Mitchell-Moody and Associates Architects on the 1st home designs.

The supervisors for the Governments Well drilling unit have visited the site and agreement has been reached on the location for the newest well. This site has been prepared to their satisfaction.

The permit required to excavate for our 1st canal is in process. A test area has been excavated. A test planting of Mangrove is also underway.

Soil samples of our roads and canal have been taken and will be analyzed in Belize City.

We have noticed an increase in Bird Life and will shortly be adding these pictures to our website.

First Quarter of 2006

Escrows have been closed. Cerros Sands Ltd. is taking the lead role in supplying power to the Cerros Sands Peninsula. As power is to be run 4 miles many other parcels will also be improved. We are attempting to contact the property owners to include them in this joint venture. The easements necessary for power have been identified and approved. Approximately 2500 feet of road remains to be completed before Belize Electric will provide an estimate for the installation of power.

The beach clearing, beautification and erosion control project is completed. Culverts are onsite. Palapas are completed. Additional sand is being filled in the 66 foot beach reserve. Vance Titus has been contracted as a construction consultant. Our architects have brought forward floor plans which are undergoing some revisions. The Air Rotary drill rig has been contracted.

The Cerros Beach Resort which includes a Home, Bar, Restaurant and 4 Cabanas will be open for business on the Easter weekend. This is the first structure to be built on the leeward (opposite) side of the peninsula. This Resort is completely SOLAR powered. Another project has broken ground and two homes are under construction south of Cerros Sands on the windward side of the peninsula. We are researching the feasibility of solar in our construction as these systems can be brought into Belize with no import duty.