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Drill Hole Abandonment Report <br />In accordance with Section 5.7 of the Mineral Rules and Regulations of the Colorado Mined land <br />Reclamation for Hard Rock, Metal, and Designated Mining Operations, below is the summary of <br />the final drill hole abandonment report for the following drill holes: HENX1101 and <br />HENX 1102. <br />HENX 1101 <br />Drill hole HENX1101 was drilled from Drill Pad #1 located at Longitude 105° 49.758' W, <br />Latitude 39° 45.518' N, and at an elevation of 10,952 feet above sea level (see attached map). <br />The depth of the hole was 4,997 feet in bedrock consisting of Precambrian granite and <br />tertiary rhyolite porphyry. No aquifers were encountered during the drilling. On October 4th, <br />2011 the prospecting activity was completed with the hole plugged and caved in at a depth of <br />250 feet using material similar to that of the original hole. <br />HENX 1102 <br />Drill hole HENX1102 was drilled from Drill Pad #5 located on Harrison Mountain at <br />Longitude 105° 50.668' W, Latitude 39° 45.297' N, and at an elevation of 11,460 feet above <br />sea level (see attached map). The hole was drilled to a depth of 4,727 feet in bedrock <br />consisting of Precambrian granite and tertiary rhyolite porphyry. The hole was abandoned on <br />October 31 St, 2011 with 400 pounds of Abandonite (bentonite grout) and sealed at the surface <br />with 20 feet worth of cement. No aquifers were encountered during the drilling. <br />