WARNING ABOUT UNSIGNED BUNDY CANYON $8.9 MILLION CHECKS

July 12, 2006

Do not attempt to sign and deposit the unsigned checks you received for the Bundy Canyon $8.9 million loan. USACM acknowledged on June 16 an error in processing the original checks that caused them to be mailed without an authorized signature. The Company immediately resent signed checks and our records indicate every single check has been received and cashed.

USACM warned investors (see below) about forging a signature on the check and attempting to deposit it. We have evidence that at least one investor forged a USACM executive signature on a check and attempted to deposit it. Please be advised that such an action is a violation of federal law and USACM reserves the right to pursue prosecution of any and all investors doing so.

BUNDY CANYON $8.9 MILLION FUNDS RETURNED TO INVESTORS ON FRIDAY, JUNE 16, 2006

USACM reported yesterday that the funds currently held in escrow that had been intended to fund the Bundy Canyon $8.9 million loan would be returned Thursday, June 15, 2006 to the 117 investors who provided them as ordered by the U.S. Bankruptcy Court at the May 18 2006 hearing. Due to a processing error in printing and mailing the checks, all 117 checks were mailed without a signature. USACM regrets the error and inconvenience. New, signed checks are being printed and mailed on Friday June 16, 2006. Please do not attempt to deposit or cash the unsigned checks. Destroy or return the checks to USACM. Checks will be put in the USPS mail. Any investor in the Bundy Canyon $8.9 million loan who has a question about the return of these funds may contact USACM at (702) 734-2400 option 4 or email info@usacapitalcorp.com.