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4AMatheson <br />Mining <br />Consultants, Inc. <br />2801 Youngfield Street, Suite 171 <br />Golden, CO 80401 <br />303 -456 -5638 <br />Toll Free 888- 456 -5638 <br />Fax 303 - 456 -5639 <br />www. mathesonmining. com <br />Western Fuels — Colorado <br />New Horizon North Mine <br />Condition Inspection of the Hood Residence <br />26432 2650 Road <br />Nucla, CO 81424 <br />February 27, 2013 <br />Matheson Mining Consultants, Inc. (MMC) conducted a condition inspection of the Hood <br />residence and two outbuildings located at 26432 2650 Road, Nucla, Colorado 81424 on February <br />27, 2013. The property is owned by Western Fuels — Colorado. The full inspection is on the <br />attached DVD with voice comments. The DVD can be viewed on most computers with a DVD <br />drive or on most standard home DVD players. Each time the camera is stopped during filming, a <br />video file is created. The video files on the DVD follow the order in which the premises were <br />inspected. Attached to this letter is an inspection form noting general information as well as <br />information regarding drainage and utilities. <br />Hood Residence <br />