New  York,  April  3,   1929.

To tfie Stockholders and Directors of the

New York and Honduras Rosario Mining Company.

Gentlemen:

It is my pleasure to report to you that the year 1928 has proved
to be one of the most satisfactory in the history of the Company.
Our production showed a gratifying improvement. Ounces of
silver recovered were 2,275,103, as compared with 2,155,225 in
1927. Ounces of gold were 8,510, compared with 5,584 in 1927,
and the cost of this production was reduced below the cost of
1927, as explained in a statement which follows.

Dividends to the amount of $450,000.00 were paid during 1928,
or an increase of $50,000.00 over the amount paid in 1927.

I wish also to direct attention to the fact that, of the Mis¬
cellaneous Income for the year 1928, $140,042.41 was derived from
other than mining operations, and represents 20,8% of the total
income of $673,962,60.

In accordance with custom, I am presenting with this report
financial tables which give a complete picture of the Company's
status. I desire to explain that these figures are not the result of a
final audit, for the reason that we are not in possession of the ad¬
justed closing figures from our office in Honduras. The delay in
receiving these statistics was caused by a fire on January 17th, 1929,
which destroyed our office building at San Juancito with the loss
of most of our records. New records have been assembled, and
the final reports are now on their way to New York. The figures
presented in this report, we are assured by our auditors, are so
close an approximation to those which will be finally submitted,
that there will be only minor differences between them and those
of the definite report which will be published as soon as possible.